Coastal Financial (CCB) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 02, 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	001-38589
Entity Registrant Name	COASTAL FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	56-2392007
Entity Address, State or Province	WA
Entity Address, Address Line One	5415 Evergreen Way
Entity Address, City or Town	Everett
Entity Address, Postal Zip Code	98203
City Area Code	425
Local Phone Number	257-9000
Title of 12(b) Security	Common Stock, no par value per share
Trading Symbol	CCB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,962,028
Entity Central Index Key	0001437958
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 37,482,000	$ 14,496,000
Interest earning deposits with other banks (restricted cash of $0 at September 30, 2022 and December 31, 2021)	373,246,000	798,665,000
Fair Value	97,621,000	35,327,000
Investment securities, held to maturity, at amortized cost	1,250,000	1,296,000
Other investments	10,581,000	8,478,000
Loans held for sale	43,314,000	0
Allowance for loan losses	(59,282,000)	(28,632,000)
Total loans receivable, net	2,448,607,000	1,714,103,000
CCBX receivable	54,373,000	9,978,000
Premises and equipment, net	18,467,000	17,219,000
Operating lease right-of-use assets	5,293,000	6,105,000
Accrued interest receivable	13,114,000	8,105,000
Bank-owned life insurance, net	12,576,000	12,254,000
Deferred tax asset, net	13,997,000	6,818,000
Other assets	3,820,000	2,673,000
Total assets	3,133,741,000	2,635,517,000
LIABILITIES
Deposits	2,837,066,000	2,363,787,000
Federal Home Loan Bank ("FHLB") advances	0	24,999,000
Principal amount $25,000 (less unamortized debt issuance costs of $657 and $712 ) at September 30, 2022 and December 31, 2021, respectively	24,343,000	24,288,000
Principal amount $3,609 (less unamortized debt issuance costs of $21 and $23 at September 30, 2022 and December 31, 2021, respectively)	3,588,000	3,586,000
Deferred compensation	648,000	744,000
Accrued interest payable	153,000	357,000
Operating lease liabilities	5,514,000	6,320,000
Other liabilities	33,696,000	10,214,000
Total liabilities	2,905,008,000	2,434,295,000
SHAREHOLDERS’ EQUITY
Authorized: 25,000,000 shares at September 30, 2022 and December 31, 2021; issued and outstanding: zero shares at September 30, 2022 and December 31, 2021	0	0
Authorized: 300,000,000 shares at September 30, 2022 and December 31, 2021; 12,954,573 shares at September 30, 2022 issued and outstanding and 12,875,315 shares at December 31, 2021 issued and outstanding	123,944,000	121,845,000
Retained earnings	106,880,000	79,373,000
Accumulated other comprehensive (loss) income, net of tax	(2,091,000)	4,000
Total shareholders’ equity	228,733,000	201,222,000
Total liabilities and shareholders’ equity	$ 3,133,741,000	$ 2,635,517,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Restricted cash	$ 0	$ 0
Preferred stock, no par value	$ 0	$ 0
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	300,000,000	300,000,000
Voting Common Stock
Common stock, shares, issued	12,954,573	12,875,315
Common stock, shares, outstanding	12,954,573	12,875,315
Subordinated Debt
Principal amount	$ 25,000	$ 25,000
Unamortized debt issuance cost	657	712
Junior Subordinated Debentures
Principal amount	3,609	3,609
Unamortized debt issuance cost	$ 21	$ 23

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 52,328	$ 19,383	$ 122,126	$ 56,978
Interest on interest earning deposits with other banks	2,273	170	3,631	314
Interest on investment securities	554	24	1,188	76
Dividends on other investments	24	31	195	169
Total interest income	55,179	19,608	127,140	57,537
INTEREST EXPENSE
Interest on deposits	5,717	523	7,943	1,811
Interest on borrowed funds	273	278	854	992
Total interest expense	5,990	801	8,797	2,803
Net interest income	49,189	18,807	118,343	54,734
PROVISION FOR LOAN LOSSES	18,428	255	45,464	973
Net interest income after provision for loan losses	30,761	18,552	72,879	53,761
NONINTEREST INCOME
Deposit service charges and fees	986	956	2,858	2,768
Loan referral fees	0	723	810	2,126
Gain on sales of loans, net	0	206	0	367
Mortgage broker fees	24	187	232	702
Unrealized (loss) gain on equity securities, net	(133)	1,472	(135)	1,472
Gain on sale of bank branch including deposits and loans, net	0	0	0	1,263
Other income	236	302	814	542
Noninterest income, excluding BaaS program income and BaaS indemnification income	1,113	3,846	4,579	9,240
Total noninterest income	34,391	6,132	81,869	13,898
NONINTEREST EXPENSE
Salaries and employee benefits	14,506	9,961	37,829	26,560
Occupancy	1,147	1,037	3,366	3,085
Data processing and software licenses	1,670	1,333	4,719	3,457
Legal and professional fees	2,251	796	3,961	2,182
Point of sale expense	742	212	1,399	475
Excise taxes	588	407	1,501	1,154
Federal Deposit Insurance Corporation ("FDIC") assessments	850	400	2,309	820
Director and staff expenses	475	274	1,196	812
Marketing	69	130	242	344
Other expense	1,522	865	4,318	2,419
Noninterest expense, excluding BaaS loan and BaaS fraud expense	23,820	15,415	60,840	41,308
BaaS loan and fraud expense	27,267	715	58,831	905
Total noninterest expense	51,087	16,130	119,671	42,213
Income before provision for income taxes	14,065	8,554	35,077	25,446
PROVISION FOR INCOME TAXES	2,964	1,870	7,570	5,731
NET INCOME	$ 11,101	$ 6,684	$ 27,507	$ 19,715
Basic earnings per common share (in usd per share)	$ 0.86	$ 0.56	$ 2.13	$ 1.65
Diluted earnings per common share (in usd per share)	$ 0.82	$ 0.54	$ 2.04	$ 1.58
Weighted average number of common shares outstanding:
Basic (in shares)	12,938,200	11,999,899	12,921,814	11,982,009
Diluted (in shares)	13,536,823	12,456,674	13,484,950	12,465,346
BaaS program income
NONINTEREST INCOME
Noninterest income	$ 3,642	$ 1,980	$ 9,327	$ 4,352
BaaS indemnification income
NONINTEREST INCOME
Noninterest income	29,636	306	67,963	306
Servicing and other BaaS fees | BaaS program income
NONINTEREST INCOME
Noninterest income	1,079	1,313	3,407	3,046
Transaction fees | BaaS program income
NONINTEREST INCOME
Noninterest income	940	146	2,247	264
Interchange fees | BaaS program income
NONINTEREST INCOME
Noninterest income	738	188	1,798	333
Reimbursement of expenses | BaaS program income
NONINTEREST INCOME
Noninterest income	885	333	1,875	709
BaaS credit enhancements | BaaS indemnification income
NONINTEREST INCOME
Noninterest income	17,928	10	45,210	10
BaaS fraud enhancements | BaaS indemnification income
NONINTEREST INCOME
Noninterest income	11,708	296	22,753	296
BaaS loan expense
NONINTEREST EXPENSE
BaaS loan and fraud expense	15,560	419	36,079	609
BaaS fraud expense
NONINTEREST EXPENSE
BaaS loan and fraud expense	$ 11,707	$ 296	$ 22,752	$ 296

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - 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	$ 11,101	$ 6,684	$ 27,507	$ 19,715
Securities available-for-sale
Unrealized holding (loss) income during the period	(946)	5	(2,652)	(35)
Income tax benefit related to unrealized holding loss	199	(1)	557	7
Other comprehensive loss, net of tax	(747)	4	(2,095)	(28)
COMPREHENSIVE INCOME	$ 10,354	$ 6,688	$ 25,412	$ 19,687

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2020		11,954,327
Beginning balance at Dec. 31, 2020	$ 140,217	$ 87,815	$ 52,368	$ 34
Net Income	19,715		19,715
Issuance of restricted stock awards (in shares)		10,714
Vesting of restricted stock units (in shares)		7,851
Exercise of stock options (in shares)		39,215
Exercise of stock options	280	$ 280
Stock-based compensation	902	902
Other comprehensive loss, net of tax	(28)			(28)
Ending balance at Sep. 30, 2021	161,086	$ 88,997	72,083	6
Ending balance (in shares) at Sep. 30, 2021		12,012,107
Beginning balance (in shares) at Jun. 30, 2021		12,007,669
Beginning balance at Jun. 30, 2021	154,100	$ 88,699	65,399	2
Net Income	6,684		6,684
Exercise of stock options (in shares)		4,438
Exercise of stock options	30	$ 30
Stock-based compensation	268	268
Other comprehensive loss, net of tax	4			4
Ending balance at Sep. 30, 2021	161,086	$ 88,997	72,083	6
Ending balance (in shares) at Sep. 30, 2021		12,012,107
Beginning balance (in shares) at Dec. 31, 2021		12,875,315
Beginning balance at Dec. 31, 2021	201,222	$ 121,845	79,373	4
Net Income	27,507		27,507
Issuance of restricted stock awards (in shares)		10,396
Vesting of restricted stock units (in shares)		27,137
Exercise of stock options (in shares)		41,725
Exercise of stock options	311	$ 311
Stock-based compensation	1,788	1,788
Other comprehensive loss, net of tax	(2,095)			(2,095)
Ending balance at Sep. 30, 2022	228,733	$ 123,944	106,880	(2,091)
Ending balance (in shares) at Sep. 30, 2022		12,954,573
Beginning balance (in shares) at Jun. 30, 2022		12,948,623
Beginning balance at Jun. 30, 2022	217,661	$ 123,226	95,779	(1,344)
Net Income	11,101		11,101
Vesting of restricted stock units (in shares)		500
Exercise of stock options (in shares)		5,450
Exercise of stock options	34	$ 34
Stock-based compensation	684	684
Other comprehensive loss, net of tax	(747)			(747)
Ending balance at Sep. 30, 2022	$ 228,733	$ 123,944	$ 106,880	$ (2,091)
Ending balance (in shares) at Sep. 30, 2022		12,954,573

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 27,507	$ 19,715
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	45,464	973
Depreciation and amortization	1,338	1,170
Loss on disposition of fixed assets	35	0
Decrease in operating lease right-of-use assets	812	789
Decrease in operating lease liabilities	(806)	(781)
Gain on sales of loans	0	(367)
Proceeds from sale of loans related to sale of bank branch	0	4,092
Net (premium amortization)/discount accretion on investment securities	(45)	21
Unrealized holding loss (gain) on equity investment	135	(1,472)
Stock-based compensation	1,788	902
Gain on sale of bank branch, including deposits and loans	0	(1,263)
Increase in bank-owned life insurance value	(269)	(212)
Deferred tax benefit	(6,623)	(1)
Net change in CCBX receivable	(44,395)	(472)
Net change in other assets and liabilities	17,082	189
Total adjustments	14,517	3,568
Net cash provided by operating activities	42,024	23,283
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in interest earning deposits with other banks	425,419	(493,851)
Purchase of investment securities available for sale	(134,912)	(57,495)
Change in other investments, net	(2,238)	(818)
Principal paydowns of investment securities available-for-sale	14	25
Principal paydowns of investment securities held-to-maturity	44	737
Maturities and calls of investment securities available-for-sale	70,000	45,000
Purchase of bank owned life insurance	(53)	(4,872)
Proceeds from sales of loans held for sale	84,878	0
Proceeds from sales of loan participations	10,300	915
Purchase of loans	(165,790)	0
Increase in loans receivable, net	(752,670)	(165,122)
Net cash transfer for branch sale	0	(19,980)
Purchases of premises and equipment, net	(2,621)	(2,188)
Net cash used by investing activities	(467,629)	(697,649)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in demand deposits, NOW and money market, and savings	482,863	837,277
Net decrease in time deposits	(9,584)	(10,981)
Net repayment from long term FHLB borrowing	(24,999)	0
Increase from subordinated debt proceeds	0	24,263
Decrease from subordinated debt repayment	0	(10,000)
Net advances from Paycheck Protection Program Liquidity Facility	0	(153,716)
Proceeds from exercise of stock options	311	280
Net cash provided by financing activities	448,591	687,123
NET CHANGE IN CASH, DUE FROM BANKS AND RESTRICTED CASH	22,986	12,757
CASH, DUE FROM BANKS AND RESTRICTED CASH, beginning of year	14,496	18,965
CASH, DUE FROM BANKS AND RESTRICTED CASH, end of quarter	37,482	31,722
SUPPLEMENTAL SCHEDULE OF OPERATING AND INVESTING ACTIVITIES
Interest paid	9,001	3,187
Income taxes paid	11,430	6,809
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS
Fair value adjustment of securities available-for-sale, gross	(2,095)	(35)
In conjunction with ASU 2016-02 as detailed in Note 6 to the Unaudited Consolidated Financial Statements, the following assets and liabilities were recognized:
Operating lease right-of-use assets	0	41
Operating lease liabilities	0	(41)
Transfer from loans to loans held for sale	$ 128,193	$ 0

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	- Description of Business and Summary of Significant Accounting Policies Nature of operations - Coastal Financial Corporation (“Corporation” or “Company”) is a registered bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC (“LLC”). The Company is a Washington state corporation that was organized in 2003. The Bank was incorporated and commenced operations in 1997 and is a Washington state-chartered commercial bank that is a member bank of the Federal Reserve system. Arlington Olympic LLC was formed in 2019 and owns the Company’s Arlington branch site, which the Bank leases from the LLC. We are headquartered in Everett, Washington, which by population is the largest city in, and the county seat of, Snohomish County. The Company’s business is conducted through two reportable segments: the community bank and CCBX. The primary focus of the community bank is on providing a wide range of banking products and services to consumers and small to medium-sized businesses, professionals, and individuals in the broader Puget Sound region in the state of Washington through its 14 branches in Snohomish, Island and King Counties, and through the Internet and its mobile banking application. The CCBX segment provides Banking as a Service (“BaaS”) that allows our broker dealers and digital financial service partners to offer their customers banking services. Through CCBX’s partners the Company is able to offer banking services and products across the nation. The Bank’s deposits are insured in whole or in part by the Federal Deposit Insurance Corporation (“FDIC”). The community bank’s loans and deposits are primarily within the greater Puget Sound area, while CCBX loans and deposits are dependent upon the partner’s market. The Bank’s primary funding source is deposits from customers. The Bank is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Washington State Department of Financial Institutions Division of Banks. The Federal Reserve also has regulatory and supervisory authority over the Company. Financial statement presentation - The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim reporting requirements and with instructions to Form 10-Q and Article 10 of Regulation S-X, and therefore do not include all the information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual report on Form 10-K as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2022. Operating results for the three months and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the entire year. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented in thousands of dollars except per-share amounts, which are presented in dollars. In the narrative footnote discussion, amounts are rounded to thousands and presented in dollars. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying consolidated financial statements have been made. These adjustments include normal and recurring accruals considered necessary for a fair and accurate presentation. Principles of consolidation - The consolidated financial statements include the accounts of the Company, the Bank and the LLC. All significant intercompany accounts have been eliminated in consolidation. Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that its critical accounting policies include determining the allowance for loan losses, the valuation of the Company’s deferred tax assets, and fair value of financial instruments. Actual results could differ significantly from those estimates. Accounting policy update – During the nine months ended September 30, 2022, the Company transferred $128.2 million in CCBX loans receivable to loans held for sale. These CCBX loans held for sale consist of the portion of CCBX partner loans that the Company intends to sell back to the originating CCBX partner at par. As of September 30, 2022 there were $43.3 million in CCBX partner loans held for sale recorded at par, compared to zero at December 31, 2021. Community bank loans held-for-sale consist of the guaranteed portion of SBA loans and United States Department of Agriculture (“USDA”) loans the Company intends to sell after origination and are reflected at the lower of aggregate cost or fair value. Loans are generally sold with servicing of the sold portion retained by the Company when the sale of the loan occurs, the premium received is combined with the estimated present value of future cash flows on the related servicing asset and recorded as a gain on sale of loans in noninterest income. There were no community bank loans held for sale at September 30, 2022 or December 31, 2021. Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2022 for potential recognition or disclosure. On November 1, 2022 the Company completed its private placement of $20.0 million in fixed-to-floating rate subordinated notes due November 1, 2032 (the “Notes”). The Notes will bear interest at a fixed annual rate of 7.00% for the first five years and will reset quarterly thereafter to the then-current three-month Secured Overnight Financing Rate ("SOFR") plus 290 basis points. The Company intends to use the net proceeds from the offering for general corporate purposes. The Company is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after November 1, 2027, or at any time, in whole but not in part, upon certain other specified events prior to the Notes’ maturity on November 1, 2032. Reclassifications - Certain amounts reported in prior quarters' consolidated financial statements may have been reclassified to conform to the current presentation with no effect on stockholders’ equity or net income.

Recent accounting standards

Recent accounting standards	9 Months Ended
	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent accounting standards	Note 2 - Recent accounting standards Recent Accounting Guidance Not Yet Effective In September 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective for annual periods beginning after December 15, 2019 and interim period within those annual periods. The Company’s implementation of ASU 2016-13 will be effective January 1, 2023. The Company is actively assessing the data and the model needs and is evaluating the impact of adopting the amendment. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period, January 2023, in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The actual magnitude of the change will be impacted by the growth, composition and performance of the loan portfolio and economic conditions at January 1, 2023. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In March 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 TDR loans by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU is effective upon adoption of ASU 2016-13. The Company is evaluating the impact this ASU will have on its financial position or results of operations.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Note 3 - Investment Securities The amortized cost and fair values of investments in debt securities at the date indicated are as follows: Amortized Gross Gross Fair (dollars in thousands; unaudited) September 30, 2022 Available-for-sale U.S. Treasury securities $ 99,960 $ — $ (2,644) $ 97,316 U.S. Agency collateralized mortgage obligations 57 — (3) 54 U.S. Agency residential mortgage-backed securities 1 — — 1 Municipal bonds 250 — — 250 Total available-for-sale securities 100,268 — (2,647) 97,621 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,250 — (118) 1,132 Total investment securities $ 101,518 $ — $ (2,765) $ 98,753 Amortized Gross Gross Fair (dollars in thousands; unaudited) December 31, 2021 Available-for-sale U.S. Treasury securities $ 34,999 $ — $ (1) $ 34,998 U.S. Agency collateralized mortgage obligations 68 2 — 70 U.S. Agency residential mortgage-backed securities 3 — — 3 Municipal bonds 252 4 — 256 Total available-for-sale securities 35,322 6 (1) 35,327 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,296 52 — 1,348 Total investment securities $ 36,618 $ 58 $ (1) $ 36,675 The amortized cost and fair value of debt securities at September 30, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers or the underlying borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are shown separately, since they are not due at a single maturity date. Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (dollars in thousands; unaudited) September 30, 2022 Amounts maturing in One year or less $ — $ — $ — $ — After one year through five years 100,211 97,567 — — 100,211 97,567 — — U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations 57 54 1,250 1,132 $ 100,268 $ 97,621 $ 1,250 $ 1,132 Investments in debt securities with an amortized cost of $38.0 million and $36.0 million at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits and for other purposes as required or permitted by law. During the three months ended September 30, 2022, $10.0 million in U.S. Treasury securities matured. During the nine months ended September 30, 2022, five U.S. Treasury securities were purchased for $135.0 million for their higher yielding return compared to cash on deposit with other banks, and $70.0 million in U.S. Treasury securities matured during the nine months ended September 30, 2022. There were no sales of securities during the three or nine months ended September 30, 2022 or 2021. There were eight securities with a $2.8 million unrealized loss as of September 30, 2022. There were four securities in an unrealized loss position as of December 31, 2021. The following table shows the investments’ gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross (dollars in thousands; unaudited) September 30, 2022 Available-for-sale U.S. Treasury securities $ 97,316 $ 2,644 $ — $ — $ 97,316 $ 2,644 U.S. Agency collateralized mortgage obligations 1 — — — 1 — Municipals 250 — — — 250 — U.S. Agency residential mortgage-backed 54 3 — — 54 3 Total available-for-sale securities 97,621 2,647 — — 97,621 2,647 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,132 118 — — 1,132 118 Total investment securities $ 98,753 $ 2,765 $ — $ — $ 98,753 $ 2,765

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Loans and Allowance for Loan Losses	Note 4 - Loans and Allowance for Loan Losses During the quarter ended September 30, 2022, $48.1 million in CCBX loans were transferred to loans held for sale, with $64.8 million in loans sold, at par; $43.3 million remains in loans held for sale as of September 30, 2022. At December 31, 2021, there were no loans held for sale. The loans held for sale are residential real estate secured lines of credit. The composition of the loan portfolio is as follows as of the periods indicated: September 30, December 31, 2022 2021 (dollars in thousands; unaudited) Commercial and industrial loans $ 339,928 $ 419,060 Real estate loans: Construction, land, and land development 224,188 183,594 Residential real estate 402,781 204,389 Commercial real estate 1,024,067 835,587 Consumer and other loans 523,536 108,871 Gross loans receivable 2,514,500 1,751,501 Net deferred origination fees and premiums (6,611) (8,766) Loans receivable $ 2,507,889 $ 1,742,735 Included in commercial and industrial loans are PPP loans of $5.8 million at September 30, 2022 and $111.8 million at December 31, 2021. PPP loans are 100% guaranteed by the Small Business Administration (“SBA”). PPP loans had net deferred origination fees of $111,000 as of September 30, 2022, and $3.6 million as of December 31, 2021. Also included in commercial and industrial loans as of September 30, 2022 and December 31, 2021, is $174.3 million and $202.9 million, respectively in capital call lines, provided to venture capital firms through one of our BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards by our BaaS client and the underwriting is reviewed and approved by the Bank on every line. Included in consumer and other loans are overdrafts of $3.8 million and $1.3 million at September 30, 2022 and December 31, 2021, respectively. The Company has pledged loans totaling $233.0 million and $183.5 million at September 30, 2022 and December 31, 2021, respectively, for borrowing lines at the FHLB and FRB. The balance of SBA and USDA loans and participations sold and serviced for others totaled $14.8 million and $19.3 million at September 30, 2022 and December 31, 2021, respectively. The balance of Main Street Lending Program (“MSLP”) loans including participations to others with servicing retained totaled $58.0 million and $56.3 million at September 30, 2022 and December 31, 2021, respectively, with $3.1 million and $4.8 million in MSLP loans on the balance sheet and included in commercial and industrial loans at September 30, 2022, and December 31, 2021, respectively. The Company, at times, purchases individual loans through the community bank at fair value as of the acquisition date. The Company held purchased loans with remaining balances that totaled $9.7 million and $12.8 million as of September 30, 2022 and December 31, 2021, respectively. Unamortized premiums on these loans totaled $173,000 and $223,000 as of September 30, 2022 and December 31, 2021, respectively, and are amortized into interest income over the life of the loans. The Company, at times, purchases participations of loans and held purchased participation loans with remaining balances totaling $58.9 million and $27.9 million as of September 30, 2022 and December 31, 2021, respectively. The Company purchased loans from a CCBX partner, at par, through agreements with that CCBX partner, and those loans had a remaining balance of $183.1 million as of September 30, 2022 and $59.7 million as of December 31, 2021. As of September 30, 2022, $167.3 million is included in consumer and other loans and $15.8 million is included in commercial and industrial loans, compared to $59.4 million in consumer and other loans and $28.1 million in commercial and industrial loans as of December 31, 2021. The following is a summary of the Company’s loan portfolio segments: Commercial and industrial loans – Commercial and industrial loans are secured by business assets including inventory, receivables and machinery and equipment of businesses located generally in the Company’s primary market area and capital calls on venture and investment funds. Also included in commercial and industrial loans are $15.8 million in unsecured CCBX partner loans. Loan types include PPP loans, revolving lines of credit, term loans, and loans secured by liquid collateral such as cash deposits or marketable securities. Also included in commercial and industrial loans are loans to other financial institutions. Additionally, the Company issues letters of credit on behalf of its customers. Risk arises primarily due to the difference between expected and actual cash flows of the borrowers. In addition, the recoverability of the Company’s investment in these loans is also dependent on other factors primarily dictated by the type of collateral securing these loans. The fair value of the collateral securing these loans may fluctuate as market conditions change. In the case of loans secured by accounts receivable, the recovery of the Company’s investment is dependent upon the borrower’s ability to collect amounts due from its customers. As of September 30, 2022, $174.3 million in CCBX capital call lines are included in commercial and industrial loans compared to $202.9 million at December 31, 2021. Capital call lines are provided to venture capital firms. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every line/loan. Capital call lines bear a lower rate of interest, but have less credit risk due to the way the loans are structured compared to other commercial loans. Construction, land and land development loans – The Company originates loans for the construction of 1-4 family, multifamily, and Commercial Real Estate (“CRE”) properties in the Company’s market area. Construction loans are considered to have higher risks due to construction completion and timing risk, the ultimate repayment being sensitive to interest rate changes, government regulation of real property and the availability of long-term financing. Additionally, economic conditions may impact the Company’s ability to recover its investment in construction loans, as adverse economic conditions may negatively impact the real estate market, which could affect the borrower’s ability to complete and sell the project. Additionally, the fair value of the underlying collateral may fluctuate as market conditions change. The Company occasionally originates land loans for the purpose of facilitating the ultimate construction of a home or commercial building. The primary risks include the borrower’s ability to pay and the inability of the Company to recover its investment due to a material decline in the fair value of the underlying collateral. Residential real estate loans – Residential real estate includes various types of loans for which the Company holds real property as collateral. Included in this segment are first and second lien single family loans, which the Company occasionally purchases to diversify its loan portfolio, and rental portfolios secured by one-to-four family homes. The primary risks of residential real estate loans include the borrower’s inability to pay, material decreases in the value of the collateral, and significant increases in interest rates which may make the loan unprofitable. As of September 30, 2022, $203.9 million in CCBX loans are included in residential real estate loans, compared to $36.9 million at December 31, 2021. These home equity lines of credit are secured by residential real estate and are accessed by using a credit card. Home equity lines of credit are classified as residential real estate per regulatory guidelines. Commercial real estate (includes owner occupied and nonowner occupied) loans – Commercial real estate loans include various types of loans for which the Company holds real property as collateral. We make commercial mortgage loans collateralized by owner-occupied and non-owner-occupied real estate, as well as multi-family residential loans. The primary risks of commercial real estate loans include the borrower’s inability to pay, material decreases in the value of the collateralized real estate and significant increases in interest rates, which may make the real estate loan unprofitable. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Consumer and other loans – The community bank originates a limited number of consumer loans, generally for banking customers only, which consist primarily of lines of credit, saving account secured loans, and auto loans. CCBX originates consumer loans including credit cards, consumer term loans and secured and unsecured lines of credit. This loan category also includes overdrafts. Repayment of these loans is dependent on the borrower’s ability to pay and the fair value of the underlying collateral. As of September 30, 2022, $521.3 million in CCBX loans are included in consumer and other loans compared to $106.8 million at December 31, 2021. The following table illustrates an age analysis of past due loans as of the dates indicated: 30-89 90 Days Total Current Total Recorded (dollars in thousands; unaudited) September 30, 2022 Commercial and industrial loans $ 588 $ 224 $ 812 $ 339,116 $ 339,928 $ 138 Real estate loans: Construction, land and land development — 66 66 224,122 224,188 — Residential real estate 707 638 1,345 401,436 402,781 638 Commercial real estate 6,901 — 6,901 1,017,166 1,024,067 — Consumer and other loans 27,867 15,045 42,912 480,624 523,536 15,045 $ 36,063 $ 15,973 $ 52,036 $ 2,462,464 $ 2,514,500 $ 15,821 Less net deferred origination fees and premiums (6,611) Loans receivable $ 2,507,889 30-89 90 Days Total Current Total Recorded (dollars in thousands; unaudited) December 31, 2021 Commercial and industrial loans $ 259 $ 38 $ 297 $ 418,763 $ 419,060 $ — Real estate loans: Construction, land and land development — — — 183,594 183,594 — Residential real estate 809 94 903 203,486 204,389 39 Commercial real estate — — — 835,587 835,587 — Consumer and other loans 3,901 1,467 5,368 103,503 108,871 1,467 $ 4,969 $ 1,599 $ 6,568 $ 1,744,933 $ 1,751,501 $ 1,506 Less net deferred origination fees and premiums (8,766) Loans receivable $ 1,742,735 There were $15.8 million in loans past due 90 days or more and still accruing interest as of September 30, 2022, and $1.5 million as of December 31, 2021. The increase is attributed to installment/closed-end, and revolving/open-end consumer loans originated by CCBX lending partners which continue to accrue interest until 120 and 180 days past due, respectively. The following table is a summary of information pertaining to impaired loans as of the period indicated. Loans originated by CCBX partners are reported using pool accounting and are not subject to impairment analysis, therefore CCBX loans are not included in this table. Unpaid Recorded Recorded Total Related (dollars in thousands; unaudited) September 30, 2022 Commercial and industrial loans $ 106 $ 8 $ 86 $ 94 $ 76 Real estate loans: Construction, land and land development 67 66 — 66 — Residential real estate — — — — — Commercial real estate 6,901 6,901 — 6,901 — Total $ 7,074 $ 6,975 $ 86 $ 7,061 $ 76 December 31, 2021 Commercial and industrial loans $ 173 $ — $ 166 $ 166 $ 132 Real estate loans: Residential real estate 69 55 — 55 — Total $ 242 $ 55 $ 166 $ 221 $ 132 The following tables summarize the Company’s average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 September 30, 2021 Average Interest Income Average Interest Income (dollars in thousands; unaudited) Commercial and industrial loans $ 103 $ — $ 489 $ — Real estate loans: Construction, land and land development 67 — — — Residential real estate 26 — 111 — Commercial real estate 38 — — — Total $ 234 $ — $ 600 $ — Nine Months Ended September 30, 2022 September 30, 2021 Average Interest Income Average Interest Income (dollars in thousands; unaudited) Commercial and industrial loans $ 125 $ — $ 498 $ — Real estate loans: Construction, land and land development 33 — — — Residential real estate 41 — 143 — Commercial real estate 19 — — — Total $ 218 $ — $ 641 $ — The Company grants restructurings in response to borrower financial difficulty, and generally provides for a temporary modification of loan repayment terms. The restructured loans on accrual status represent the only impaired loans accruing interest. In order for a restructured loan to be considered for accrual status, the loan’s collateral coverage generally will be greater than or equal to 100% of the loan balance, the loan is current on payments, and the borrower must either prefund an interest reserve or demonstrate the ability to make payments from a verified source of cash flow for an extended period of time, usually at least six months in duration. No loans were restructured in the three and nine months ended September 30, 2022 and 2021 that qualified as TDRs. The Company has no commitments to loan additional funds to borrowers whose loans were classified as TDRs at September 30, 2022, as there were no outstanding TDRs at September 30, 2022. Generally, the accrual of interest on community bank loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due or when they are 90 days past due as to either principal or interest, unless they are well secured and in the process of collection. Installment/closed-end, and revolving/open-end consumer loans originated by CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and an allowance is recorded through provision expense for these probable incurred losses. Any principal and interest outstanding on revolving/open-end loans at greater than 180 days past due is charged off against the allowance. Any accrued interest outstanding on installment/closed-end loans at 120 days past due is reversed against interest income. These consumer loans are reported as substandard, 90 days or more days past due and still accruing. When loans are placed on nonaccrual status, all accrued interest is reversed from current period earnings. Payments received on nonaccrual loans are generally applied as a reduction to the loan principal balance. If the likelihood of further loss is removed, the Company will recognize interest on a cash basis only. Loans may be returned to accruing status if the Company believes that all remaining principal and interest is fully collectible and there has been at least six months of sustained repayment performance since the loan was placed on nonaccrual. An analysis of nonaccrual loans by category consisted of the following at the periods indicated: September 30, December 31, 2022 2021 (dollars in thousands; unaudited) Commercial and industrial loans $ 94 $ 166 Real estate loans: Construction, land and land development 66 — Residential real estate — 55 Commercial real estate 6,901 — Total nonaccrual loans $ 7,061 $ 221 Credit Quality and Credit Risk Federal regulations require that the Company periodically evaluate the risks inherent in its loan portfolio. In addition, the Company’s regulatory agencies have authority to identify problem loans and, if appropriate, require them to be reclassified. The Company classifies some loans as Watch or Other Loans Especially Mentioned (“OLEM”). Loans classified as Watch are performing assets but have elements of risk that require more monitoring than other performing loans and are reported in the OLEM column in the following table. Loans classified as OLEM are assets that continue to perform but have shown deterioration in credit quality and require close monitoring. There are three classifications for problem loans: Substandard, Doubtful, and Loss. Substandard loans have one or more defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Revolving (open-ended loans, such as credit cards) and installment (closed end) consumer loans originated by CCBX partners continue to accrue interest until they are charged-off at 120 days past due for installment loans (primarily unsecured loans to consumers) and 180 days past due for revolving loans (primarily credit cards) and are classified as substandard. Doubtful loans have the weaknesses of loans classified as Substandard, with additional characteristics that suggest the weaknesses make collection or recovery in full after liquidation of collateral questionable on the basis of currently existing facts, conditions, and values. There is a high possibility of loss in loans classified as Doubtful. A loan classified as Loss is considered uncollectible and of such little value that continued classification of the credit as a loan is not warranted. If a loan or a portion thereof is classified as Loss, it must be charged-off, meaning the amount of the loss is charged against the allowance for loan losses, thereby reducing that reserve. Loans by credit quality risk rating are as follows as of the periods indicated: Pass Other Loans Sub- Doubtful Total (dollars in thousands; unaudited) September 30, 2022 Commercial and industrial loans $ 331,384 $ 8,255 $ 289 $ — $ 339,928 Real estate loans: Construction, land, and land development 224,122 — 66 — 224,188 Residential real estate 402,041 102 638 — 402,781 Commercial real estate 1,009,487 7,680 6,900 — 1,024,067 Consumer and other loans 508,492 — 15,044 — 523,536 $ 2,475,526 $ 16,037 $ 22,937 $ — 2,514,500 Less net deferred origination fees (6,611) Loans receivable $ 2,507,889 December 31, 2021 Commercial and industrial loans $ 416,642 $ 2,180 $ 238 $ — $ 419,060 Real estate loans: Construction, land, and land development 183,594 — — — 183,594 Residential real estate 204,173 122 94 — 204,389 Commercial real estate 824,676 10,911 — — 835,587 Consumer and other loans 107,404 — 1,467 — 108,871 $ 1,736,489 $ 13,213 $ 1,799 $ — 1,751,501 Less net deferred origination fees (8,766) Loans receivable $ 1,742,735 Allowance for Loan Losses The Company’s ALLL covers estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated probable losses inherent in the remainder of the loan portfolio. The ALLL for the community bank is prepared using the information provided by the Company’s credit review process and our historical loss data, together with data from peer institutions and economic information gathered from published sources. The loan portfolio is segmented into groups of loans with similar risk profiles. Each segment possesses varying degrees of risk based on the type of loan, the type of collateral, and the sensitivity of the borrower or industry to changes in external factors such as economic conditions. An estimated loss rate calculated from the community bank’s actual historical loss rates adjusted for current portfolio trends, economic conditions, and other relevant internal and external factors, is applied to each group’s aggregate loan balances. The following tables summarize the allocation of the ALLL, as well as the activity in the ALLL attributed to various segments in the loan portfolio, as of and for the three and nine months ended September 30, 2022 and 2021: Commercial Construction, Residential Commercial Consumer Unallocated Total (dollars in thousands; unaudited) Three Months Ended September 30, 2022 ALLL balance, June 30, 2022 $ 4,066 $ 7,999 $ 7,171 $ 4,740 $ 23,810 $ 1,572 $ 49,358 Provision for loan losses or (recapture) 298 (145) 2,260 (215) 16,402 (172) 18,428 4,364 7,854 9,431 4,525 40,212 1,400 67,786 Loans charged-off (360) — (105) — (8,048) — (8,513) Recoveries of loans previously charged-off 2 — — — 7 — 9 Net (charge-offs) recoveries (358) — (105) — (8,041) — (8,504) ALLL balance, September 30, 2022 $ 4,006 $ 7,854 $ 9,326 $ 4,525 $ 32,171 $ 1,400 $ 59,282 Nine Months Ended September 30, 2022 ALLL balance, December 31, 2021 $ 3,221 $ 6,984 $ 4,598 $ 6,590 $ 7,092 $ 147 $ 28,632 Provision for loan losses or (recapture) 1,144 870 4,833 (2,065) 39,429 1,253 45,464 4,365 7,854 9,431 4,525 46,521 1,400 74,096 Loans charged-off (398) — (105) — (14,360) — (14,863) Recoveries of loans previously charged-off 39 — — — 10 — 49 Net (charge-offs) recoveries (359) — (105) — (14,350) — (14,814) ALLL balance, September 30, 2022 $ 4,006 $ 7,854 $ 9,326 $ 4,525 $ 32,171 $ 1,400 $ 59,282 As of September 30, 2022 ALLL amounts allocated to Individually evaluated for impairment $ 76 $ — $ — $ — $ — $ — $ 76 Collectively evaluated for impairment 3,930 7,854 9,326 4,525 32,171 1,400 59,206 ALLL balance, September 30, 2022 $ 4,006 $ 7,854 $ 9,326 $ 4,525 $ 32,171 $ 1,400 $ 59,282 Loans individually evaluated for impairment $ 94 $ 66 $ — $ 6,901 $ — $ 7,061 Loans collectively evaluated for impairment 339,834 224,122 402,781 1,017,166 523,536 2,507,439 Loan balance, September 30, 2022 $ 339,928 $ 224,188 $ 402,781 $ 1,024,067 $ 523,536 $ 2,514,500 Three Months Ended September 30, 2021 ALLL balance, June 30, 2021 $ 3,317 $ 4,520 $ 3,302 $ 8,057 $ 84 $ 686 $ 19,966 Provision for loan losses or (recapture) 8 1,410 (49) (1,420) 11 295 255 3,325 5,930 3,253 6,637 95 981 20,221 Loans charged-off — — — — (31) — (31) Recoveries of loans previously charged-off 16 — — — 16 — 32 Net (charge-offs) recoveries 16 — — — (15) — 1 Balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 Nine Months Ended September 30, 2021 Balance, December 31, 2020 $ 3,353 $ 3,545 $ 3,410 $ 7,810 $ 127 $ 1,017 $ 19,262 Provision for loan losses or (recapture) (17) 2,385 (157) (1,173) (29) (36) 973 3,336 5,930 3,253 6,637 98 981 20,235 Loans charged-off (16) — — — (45) — (61) Recoveries of loans previously charged-off 21 — — — 27 — 48 Net (charge-offs) recoveries 5 — — — (18) — (13) Balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 The following table summarizes the allocation of the ALLL attributed to various segments in the loan portfolio as of December 31, 2021. Commercial Construction, Residential Commercial Consumer Unallocated Total (dollars in thousands; unaudited) As of December 31, 2021 ALLL amounts allocated to Individually evaluated for impairment $ 132 $ — $ — $ — $ — $ — $ 132 Collectively evaluated for impairment 3,089 6,984 4,598 6,590 7,092 147 28,500 ALLL balance, December 31, 2021 $ 3,221 $ 6,984 $ 4,598 $ 6,590 $ 7,092 $ 147 $ 28,632 Loans individually evaluated for impairment $ 166 $ — $ 55 $ — $ — $ 221 Loans collectively evaluated for impairment 418,894 183,594 204,334 835,587 108,871 1,751,280 Loan balance, December 31, 2021 $ 419,060 $ 183,594 $ 204,389 $ 835,587 $ 108,871 $ 1,751,501

Deposits

Deposits	9 Months Ended
	Sep. 30, 2022
Deposits [Abstract]
Deposits	Note 5 - Deposits The composition of consolidated deposits consisted of the following at the periods indicated: September 30, December 31, (dollars in thousands; unaudited) Demand, noninterest bearing $ 813,217 $ 1,355,908 NOW and money market 1,807,105 789,709 Savings 107,508 103,956 Total core deposits 2,727,830 2,249,573 BaaS-brokered deposits 75,363 70,757 Time deposits less than $250,000 24,575 31,057 Time deposits $250,000 and over 9,298 12,400 Total deposits $ 2,837,066 $ 2,363,787 The following table presents the maturity distribution of time deposits as of September 30, 2022: (dollars in thousands; unaudited) Twelve months $ 25,679 One to two years 5,460 Two to three years 1,682 Three to four years 905 Four to five years 147 $ 33,873 Our CCBX partners originate deposits and these deposits were primarily noninterest bearing prior to the rate increases in 2022 by the Federal Open Market Committee (“FOMC”). As a result of the interest rate increases, a significant portion of CCBX deposits that were not earning interest were reclassified to interest bearing deposits from noninterest bearing deposits during the first and second quarters of 2022. These CCBX deposits were reclassified because the current interest rate exceeded the minimum interest rate set in their respective program agreements, as a result of the first and second quarter 2022 interest rate increases. We do not expect additional CCBX deposits will be reclassified as a result of future rate increases.

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Note 6 - Leases The Company has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. Operating lease right-of-use (“ROU”) assets represent a right to use an underlying asset for the contractual lease term. Operating lease liabilities represent an obligation to make lease payments arising from the lease. An operating lease ROU asset and operating lease liability will be recognized for any new operating leases at the commencement of the new lease. The Company’s leases do not provide an implicit interest rate, therefore the Company used its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine the present value of operating lease liabilities. The Company’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Company’s lease agreements do not contain any residual value guarantees. Operating leases with terms of 12 months or less are not included in ROU assets and operating lease liabilities recorded in the Company’s consolidated balance sheets. Operating lease terms include options to extend when it is reasonably certain that the Company will exercise such options, determined on a lease-by-lease basis. At September 30, 2022, lease expiration dates ranged from four months to 22.4 years, with additional renewal options on certain leases typically ranging from 5 to 10 years. At September 30, 2022, the weighted average remaining lease term inclusive of renewal options that the Company is reasonably certain to renew for the Company’s operating leases was 8.2 years. Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $351,000 and $1.0 million, respectively, for the three and nine months ended September 30, 2022, and $343,000 and $1.0 million respectively, for the three and nine months ended September 30, 2021. Variable lease components, such as inflation adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. The following table presents the minimum annual lease payments under the terms of these leases, inclusive of renewal options that the Company is reasonably certain to renew, at September 30, 2022: (dollars in thousands; unaudited) September 30, October 1 to December 31, 2022 $ 326 2023 1,272 2024 864 2025 713 2026 719 2027 and thereafter 2,490 Total lease payments 6,384 Less: amounts representing interest 870 Present value of lease liabilities $ 5,514 The following table presents the components of total lease expense and operating cash flows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (dollars in thousands; unaudited) Lease expense: Operating lease expense $ 320 $ 321 $ 961 $ 962 Variable lease expense 52 37 137 108 Total lease expense (1) $ 372 $ 358 $ 1,098 $ 1,070 Cash paid: Cash paid reducing operating lease liabilities $ 371 $ 356 $ 1,090 $ 1,061 (1) Included in net occupancy expense in the Condensed Consolidated Statements of Income (unaudited).

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 7 - Stock-Based Compensation - Stock Options and Restricted Stock The 2018 Coastal Financial Corporation Omnibus Plan (2018 Plan) authorizes the Company to grant awards, including but not limited to, stock options, restricted stock units, and restricted stock awards, to eligible employees, directors or individuals that provide service to the Company, up to an aggregate of 500,000 shares of common stock. On May 24, 2021, the Company’s shareholders approved the First Amendment to the 2018 Plan, which increased the authorized plan shares by 600,000. The 2018 Plan replaces both the 2006 Plan and the Directors’ Stock Bonus Plan (2006 Plan). Existing awards will vest under the terms granted and no further awards will be granted under these prior plans. Shares available to be granted under the 2018 plan were 522,378 at September 30, 2022. Stock Option Awards The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatilities are based on historical volatility of the Company’s stock and other factors. The Company uses the vesting term and contractual life to determine the expected life. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation expense related to unvested stock option awards is reversed at date of forfeiture. There were no new stock options granted in the three and nine months ended September 30, 2022 and 2021. A summary of stock option activity under the 2018 Plan and 2006 Plan during the nine months ended September 30, 2022: Options Shares Weighted- Weighted- Aggregate (dollars in thousands, except per share amounts; unaudited) Outstanding at December 31, 2021 694,519 $ 7.79 4.0 $ 29,744 Granted — — Exercised (41,725) $ 7.46 Forfeited or expired (8,460) 9.92 Outstanding at September 30, 2022 644,334 $ 7.79 3.2 $ 20,589 Vested or expected to vest at September 30, 2022 644,334 $ 7.79 3.2 $ 20,589 Exercisable at September 30, 2022 397,553 $ 6.77 2.2 $ 13,108 The total or aggregate intrinsic value (which is the amount by which the stock price exceeds the exercise price) of options exercised during the three and nine months ended September 30, 2022 was $186,000 and $1.6 million, respectively. The total or aggregate intrinsic value of options exercised during the three and nine months ended September 30, 2021 was $101,000 and $775,000, respectively. As of September 30, 2022, there was $1.2 million of total unrecognized compensation cost related to nonvested stock options granted under the 2018 Plan and 2006 Plan. Total unrecognized compensation costs are adjusted for unvested forfeitures. The Company expects to recognize that cost over a remaining weighted-average period of approximately 4.7 years. Compensation expense recorded related to stock options was $65,000 and $253,000 for the three and nine months ended September 30, 2022, respectively and $92,000 and $273,000 for the three and nine months ended September 30, 2021, respectively. Restricted Stock Units In the first quarter of 2022, the Company granted 53,721 restricted stock units under the 2018 Plan to employees, which vest ratably over 4 years and 150 restricted stock units which vest ratably over 10 years. In the second quarter of 2022, the Company granted 9,831 restricted stock units under the 2018 Plan to employees, which vest ratably over 5 years and 7,000 restricted stock units that vest ratably over 3 years. Additionally, the Company granted 53,000 performance-based restricted stock units under the 2018 Plan to an employee, that vest on June 1, 2028, the quantity of which is dependent upon achievement of specified performance goals. In the third quarter of 2022, the Company granted 20,000 restricted stock units under the 2018 Plan to employees, which vest in two blocks: 10,000 vest after 5 years and the remaining 10,000 vest after 7.5 years. Restricted stock units provide for an interest in Company common stock to the recipient, the underlying stock is not issued until certain conditions are met. Vesting requirements include time-based, performance-based, or market-based conditions. Recipients of restricted stock units do not pay any cash consideration to the Company for the units and the holders of the restricted units do not have voting rights. The fair value of time-based and performance-based units is equal to the fair market value of the Company’s common stock on the grant date. The fair value of market-based units is estimated on the grant date using the Monte Carlo simulation model. Compensation expense is recognized over the vesting period that the awards are based. Restricted stock units are nonparticipating securities. As of September 30, 2022, there was $9.4 million of total unrecognized compensation cost related to nonvested restricted stock units. The Company expects to recognize that cost over the remaining weighted-average vesting period of approximately 3.6 years. Compensation expense recorded related to restricted stock units was $518,000 and $1.3 million for the three and nine months ended September 30, 2022, respectively and $133,000 and $367,000 for the three and nine months ended September 30, 2021, respectively. A summary of the Company’s nonvested RSUs at September 30, 2022 and changes during the nine month period is presented below: Nonvested shares - RSUs Shares Weighted- Total or Aggregate (dollars in thousands, except per share amounts; unaudited) Nonvested shares at December 31, 2021 269,844 $ 21.70 $ 7,803 Granted 143,702 $ 39.61 Forfeited (5,716) $ 24.66 Vested (26,137) $ 19.79 Nonvested shares at September 30, 2022 381,693 $ 28.52 $ 4,268 Restricted Stock Awards Employees There were no new restricted stock awards granted in the three or nine months ended September 30, 2022. The fair value of restricted stock awards is equal to the fair value of the Company’s stock at the date of grant. Compensation expense is recognized over the vesting period that the awards are based. Restricted stock awards are participating securities. As of September 30, 2022, there was $48,000 of total unrecognized compensation cost related to nonvested restricted stock awards. The Company expects to recognize that cost over the remaining weighted-average vesting period of approximately 5.4 years. Compensation expense recorded related to restricted stock awards was $2,000 and $7,000 for the three and nine months ended September 30, 2022, respectively and $3,000 and $132,000 for the three and nine months ended September 30, 2021, respectively. Director’s Stock Compensation Under the 2018 Plan, eligible directors are granted stock with a total market value of $35,000, and the Board Chair is granted stock with a total market value of $55,000. Committee chairs will receive additional stock with a market value of $2,500 for each committee chaired. Stock is granted as of each annual meeting date and will cliff vest one day prior to the next annual meeting date. During the vesting period, the grants are considered participating securities. There were 10,396 new shares granted during the three and nine months ended September 30, 2022. As of September 30, 2022, there was $249,000 of total unrecognized compensation expense related to director restricted stock awards which the Company expects to recognize over the remaining average vesting period of approximately 0.6 years. Director compensation expense recorded related to the 2018 Plan totaled $98,000 and $196,000 for the three and nine months ended September 30, 2022, respectively, and $43,000 and $133,000 for the three and nine months ended September 30, 2021, respectively. A summary of the Company’s nonvested shares at September 30, 2022 and changes during the nine-month period is presented below: Nonvested shares - RSAs Shares Weighted- Total or Aggregate (dollars in thousands, except per share amounts; unaudited) Nonvested shares at December 31, 2021 10,203 $ 23.78 $ 274 Granted 10,396 $ 37.30 Forfeited — $ — Vested (7,203) $ 26.27 Nonvested shares at September 30, 2022 13,396 $ 32.94 $ 91

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 8 - Fair Value Measurements The following tables present estimated fair values of the Company’s financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated: September 30, 2022 Fair Value Measurements Using Carrying Estimated Level 1 Level 2 Level 3 (dollars in thousands; unaudited) Financial assets Cash and due from banks $ 37,482 $ 37,482 $ 37,482 $ — $ — Interest earning deposits with other banks 373,246 373,246 373,246 — — Investment securities 98,871 98,753 97,316 1,437 — Other investments 10,581 10,581 — 8,009 2,572 Loans held for sale 43,314 43,314 — 43,314 Loans receivable 2,507,889 2,548,820 — — 2,548,820 Accrued interest receivable 13,114 13,114 — 13,114 — Financial liabilities Deposits $ 2,837,066 2,836,117 $ — $ 2,836,117 $ — Subordinated debt 24,343 21,643 — 21,643 — Junior subordinated debentures 3,588 3,464 — 3,464 — Accrued interest payable 153 153 — 153 — December 31, 2021 Fair Value Measurements Using Carrying Estimated Level 1 Level 2 Level 3 (dollars in thousands; unaudited) Financial assets Cash and due from banks $ 14,496 $ 14,496 $ 14,496 $ — $ — Interest earning deposits with other banks 798,665 798,665 798,665 — — Investment securities 36,623 36,675 34,998 1,677 — Other investments 8,478 8,478 — 6,156 2,322 Loans receivable, net 1,714,103 1,686,124 — — 1,686,124 Accrued interest receivable 8,105 8,105 — 8,105 — Financial liabilities Deposits $ 2,363,787 $ 2,363,624 $ — $ 2,363,624 $ — FHLB advances 24,999 24,447 — 24,447 — Subordinated debt 24,288 21,891 — 21,891 — Junior subordinated debentures 3,586 2,771 — 2,771 — Accrued interest payable 357 357 — 357 — The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the accounting standard requires the reporting entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. • Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs from nonbinding single dealer quotes not corroborated by observable market data. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for certain financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Items measured at fair value on a recurring basis – The following fair value hierarchy table presents information about the Company’s assets that are measured at fair value on a recurring basis at the dates indicated: Level 1 Level 2 Level 3 Total (dollars in thousands; unaudited) September 30, 2022 Available-for-sale U.S. Treasury securities $ 97,316 $ — $ — $ 97,316 U.S. Agency collateralized mortgage obligations — 1 — 1 U.S. Agency residential mortgage-backed securities — 54 — 54 Municipals — 250 — 250 $ 97,316 $ 305 $ — $ 97,621 December 31, 2021 Available-for-sale U.S. Treasury securities $ 34,998 $ — $ — $ 34,998 U.S. Agency collateralized mortgage obligations — 70 — 70 U.S. Agency residential mortgage-backed securities — 3 — 3 Municipals — 256 — 256 $ 34,998 $ 329 $ — $ 35,327 The following methods were used to estimate the fair value of the class of financial instruments above: Investment securities - The fair value of securities is based on quoted market prices, pricing models, quoted prices of similar securities, independent pricing sources, and discounted cash flows. Limitations: The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2022 and December 31, 2021. The factors used in the fair values estimates are subject to change subsequent to the dates the fair value estimates are completed, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Items measured at fair value on a nonrecurring basis – The following table presents financial assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy of the fair value measurements for those assets at the dates indicated: Level 1 Level 2 Level 3 Total (dollars in thousands; unaudited) September 30, 2022 Impaired loans $ — $ — $ 7,061 $ 7,061 Equity securities 2,572 2,572 Total $ — $ — $ 9,633 $ 9,633 December 31, 2021 Impaired loans $ — $ — $ 221 $ 221 Equity securities 2,322 2,322 Total $ — $ — $ 2,543 $ 2,543 The amounts disclosed above represent the fair values at the time the nonrecurring fair value measurements were made, and not necessarily the fair value as of the dates reported on. Impaired loans - A loan is considered impaired when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. Impairment is measured based on the fair value of the underlying collateral or the discounted cash expected future cash flows. Subsequent changes in the value of impaired loans are included within the provision for loan losses in the same manner in which impairment initially was recognized or as a reduction in the provision that would otherwise be reported. Impaired loans are evaluated quarterly to determine if valuation adjustments should be recorded. The need for valuation adjustments arises when observable market prices or current appraised values of collateral indicate a shortfall in collateral value compared to current carrying values of the related loan. If the Company determines that the value of the impaired loan is less than the carrying value of the loan, the Company either establishes an impairment reserve as a specific component of the allowance for loan losses or charges off the impairment amount. These valuation adjustments are considered nonrecurring fair value adjustments. Equity securities – The Company measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer, with price changes recognized in earnings. Assets measured at fair value using significant unobservable inputs (Level 3) The following table presents the carrying value of equity securities without readily determinable fair values, as of September 30, 2022, with adjustments recorded during the periods presented for those securities with observable price changes, if applicable. These equity securities are included in other investments on the balance sheet. For the Three Months Ended For the Nine Months Ended (dollars in thousands; unaudited) 2022 2021 2022 2021 Carrying value, beginning of period $ 2,672 $ 850 $ 2,322 $ 850 Purchases — — 350 — Net change recognized in earnings (100) 1,472 (100) 1,472 Carrying value, end of period $ 2,572 $ 2,322 $ 2,572 $ 2,322 The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at the dates indicated: (unaudited) Valuation Technique Unobservable Inputs September 30, 2022 Weighted Average Rate December 31, 2021 Weighted Average Rate Impaired loans Collateral valuations Discount to appraised value 8.0% 8.0%

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Common Share	Note 9 - Earnings Per Common Share The following is a computation of basic and diluted earnings per common share at the periods indicated: Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 (dollars in thousands, except share data; unaudited) Net Income $ 11,101 $ 6,684 $ 27,507 $ 19,715 Basic weighted average number common shares outstanding 12,938,200 11,999,899 12,921,814 11,982,009 Dilutive effect of equity-based awards 598,623 456,775 563,136 483,337 Diluted weighted average number common shares outstanding 13,536,823 12,456,674 13,484,950 12,465,346 Basic earnings per share $ 0.86 $ 0.56 $ 2.13 $ 1.65 Diluted earnings per share $ 0.82 $ 0.54 $ 2.04 $ 1.58 Antidilutive stock options and restricted stock outstanding 52,840 160,668 52,840 160,668 Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings, however the difference in the two-class method was not significant.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Reporting	Note 10 – Segment Reporting As defined in ASC 280, Segment Reporting , an operating segment is a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision makers to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. We evaluate performance based on an internal performance measurement accounting system, which provides line of business results. This system uses various techniques to assign balance sheet and income statement amounts to the business segments, including allocations of income and expense. A primary objective of this measurement system and related internal financial reporting practices are to produce consistent results that reflect the underlying financial impact of the segments on the Company and to provide a basis of support for strategic decision making. The accounting policies applicable to our segments are those that apply to our preparation of the accompanying Consolidated Financial Statements. Based on these criteria, we have identified two segments: the community bank and CCBX. Income and expenses that are specific to CCBX are recorded to the CCBX segment. Additionally, certain indirect expenses are allocated to CCBX utilizing various metrics, such as number of employees, utilization of space, and allocations based on loan and deposit balances. Included in noninterest expense for the community bank is administrative overhead of $7.9 million and $5.2 million for the quarters ended September 30, 2022 and September 30, 2021, respectively. Included in noninterest expense for the community bank is administrative overhead of $19.8 million and $13.9 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. Both the community bank and the CCBX segment benefit from this administrative overhead and services, which includes shared operational activities such as data management, compliance monitoring and other administration functions. Summarized financial information concerning the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables for the periods indicated: September 30, 2022 December 31, 2021 Bank CCBX Total Bank CCBX Total (dollars in thousands; unaudited) Total assets $ 2,140,820 $ 992,921 $ 3,133,741 $ 2,282,514 $ 353,003 $ 2,635,517 Loans held for sale — 43,314 43,314 — — — Total loans receivable 1,592,320 915,569 2,507,889 1,396,060 346,675 1,742,735 Allowance for loan losses (20,139) (39,143) (59,282) (20,299) (8,333) (28,632) Total deposits 1,634,796 1,202,270 2,837,066 1,647,529 716,258 2,363,787 Three months ended September 30, 2022 Three months ended September 30, 2021 Bank CCBX Total Bank CCBX Total (dollars in thousands; unaudited) Net interest income $ 22,815 $ 26,374 $ 49,189 $ 17,359 $ 1,448 $ 18,807 Provision for loan losses (238) 18,666 18,428 192 63 255 Noninterest income (1) 1,113 33,278 34,391 3,783 2,349 6,132 Noninterest expense 17,765 33,322 51,087 13,811 2,319 16,130 (1) For the three months ended September 30, 2022, CCBX noninterest income includes credit enhancements of $17.9 million, fraud enhancements of $11.7 million, and BaaS program income of $3.6 million. For the three months ended September 30, 2021, CCBX noninterest income includes credit enhancements of $10,000, fraud enhancements of $296,000 and BaaS program income of $2.0 million. Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Bank CCBX Total Bank CCBX Total (dollars in thousands; unaudited) Net interest income $ 60,171 $ 58,172 $ 118,343 $ 52,038 $ 2,696 $ 54,734 Provision for loan losses 214 45,250 45,464 877 96 973 Noninterest income (1) 4,426 77,443 81,869 9,175 4,723 13,898 Noninterest expense 50,113 69,558 119,671 37,159 5,054 42,213 (1) For the nine months ended September 30, 2022, CCBX noninterest income includes credit enhancements of $45.2 million, fraud enhancements of $22.8 million and BaaS program income of $9.3 million. For the nine months ended September 30, 2021, CCBX noninterest income includes credit enhancements of $10,000, fraud enhancements of $296,000 and BaaS program income of $4.4 million.

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Nature of operations	Nature of operations - Coastal Financial Corporation (“Corporation” or “Company”) is a registered bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC (“LLC”). The Company is a Washington state corporation that was organized in 2003. The Bank was incorporated and commenced operations in 1997 and is a Washington state-chartered commercial bank that is a member bank of the Federal Reserve system. Arlington Olympic LLC was formed in 2019 and owns the Company’s Arlington branch site, which the Bank leases from the LLC. We are headquartered in Everett, Washington, which by population is the largest city in, and the county seat of, Snohomish County. The Company’s business is conducted through two reportable segments: the community bank and CCBX. The primary focus of the community bank is on providing a wide range of banking products and services to consumers and small to medium-sized businesses, professionals, and individuals in the broader Puget Sound region in the state of Washington through its 14 branches in Snohomish, Island and King Counties, and through the Internet and its mobile banking application. The CCBX segment provides Banking as a Service (“BaaS”) that allows our broker dealers and digital financial service partners to offer their customers banking services. Through CCBX’s partners the Company is able to offer banking services and products across the nation. The Bank’s deposits are insured in whole or in part by the Federal Deposit Insurance Corporation (“FDIC”). The community bank’s loans and deposits are primarily within the greater Puget Sound area, while CCBX loans and deposits are dependent upon the partner’s market. The Bank’s primary funding source is deposits from customers. The Bank is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Washington State Department of Financial Institutions Division of Banks. The Federal Reserve also has regulatory and supervisory authority over the Company.
Financial statement presentation	Financial statement presentation - The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim reporting requirements and with instructions to Form 10-Q and Article 10 of Regulation S-X, and therefore do not include all the information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual report on Form 10-K as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2022. Operating results for the three months and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the entire year. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented in thousands of dollars except per-share amounts, which are presented in dollars. In the narrative footnote discussion, amounts are rounded to thousands and presented in dollars.
Principles of consolidation	Principles of consolidation - The consolidated financial statements include the accounts of the Company, the Bank and the LLC. All significant intercompany accounts have been eliminated in consolidation.
Estimates	Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that its critical accounting policies include determining the allowance for loan losses, the valuation of the Company’s deferred tax assets, and fair value of financial instruments. Actual results could differ significantly from those estimates.
Accounting policy update	Accounting policy update – During the nine months ended September 30, 2022, the Company transferred $128.2 million in CCBX loans receivable to loans held for sale. These CCBX loans held for sale consist of the portion of CCBX partner loans that the Company intends to sell back to the originating CCBX partner at par. As of September 30, 2022 there were $43.3 million in CCBX partner loans held for sale recorded at par, compared to zero at December 31, 2021. Community bank loans held-for-sale consist of the guaranteed portion of SBA loans and United States Department of Agriculture (“USDA”) loans the Company intends to sell after origination and are reflected at the lower of aggregate cost or fair value. Loans are generally sold with servicing of the sold portion retained by the Company when the sale of the loan occurs, the premium received is combined with the estimated present value of future cash flows on the related servicing asset and recorded as a gain on sale of loans in noninterest income. There were no community bank loans held for sale at September 30, 2022 or December 31, 2021.
Subsequent Events	Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2022 for potential recognition or disclosure.
Reclassifications	Reclassifications - Certain amounts reported in prior quarters' consolidated financial statements may have been reclassified to conform to the current presentation with no effect on stockholders’ equity or net income.
Recent Accounting Guidance Not Yet Effective	Recent Accounting Guidance Not Yet Effective In September 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective for annual periods beginning after December 15, 2019 and interim period within those annual periods. The Company’s implementation of ASU 2016-13 will be effective January 1, 2023. The Company is actively assessing the data and the model needs and is evaluating the impact of adopting the amendment. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period, January 2023, in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The actual magnitude of the change will be impacted by the growth, composition and performance of the loan portfolio and economic conditions at January 1, 2023. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In March 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 TDR loans by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU is effective upon adoption of ASU 2016-13. The Company is evaluating the impact this ASU will have on its financial position or results of operations.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Amortized Cost and Fair Values of Investments in Debt Securities	The amortized cost and fair values of investments in debt securities at the date indicated are as follows: Amortized Gross Gross Fair (dollars in thousands; unaudited) September 30, 2022 Available-for-sale U.S. Treasury securities $ 99,960 $ — $ (2,644) $ 97,316 U.S. Agency collateralized mortgage obligations 57 — (3) 54 U.S. Agency residential mortgage-backed securities 1 — — 1 Municipal bonds 250 — — 250 Total available-for-sale securities 100,268 — (2,647) 97,621 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,250 — (118) 1,132 Total investment securities $ 101,518 $ — $ (2,765) $ 98,753 Amortized Gross Gross Fair (dollars in thousands; unaudited) December 31, 2021 Available-for-sale U.S. Treasury securities $ 34,999 $ — $ (1) $ 34,998 U.S. Agency collateralized mortgage obligations 68 2 — 70 U.S. Agency residential mortgage-backed securities 3 — — 3 Municipal bonds 252 4 — 256 Total available-for-sale securities 35,322 6 (1) 35,327 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,296 52 — 1,348 Total investment securities $ 36,618 $ 58 $ (1) $ 36,675
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity	Available-for-Sale Held-to-Maturity Amortized Fair Amortized Fair (dollars in thousands; unaudited) September 30, 2022 Amounts maturing in One year or less $ — $ — $ — $ — After one year through five years 100,211 97,567 — — 100,211 97,567 — — U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations 57 54 1,250 1,132 $ 100,268 $ 97,621 $ 1,250 $ 1,132
Summary of Investment Securities Continuous Unrealized Loss Position	The following table shows the investments’ gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross (dollars in thousands; unaudited) September 30, 2022 Available-for-sale U.S. Treasury securities $ 97,316 $ 2,644 $ — $ — $ 97,316 $ 2,644 U.S. Agency collateralized mortgage obligations 1 — — — 1 — Municipals 250 — — — 250 — U.S. Agency residential mortgage-backed 54 3 — — 54 3 Total available-for-sale securities 97,621 2,647 — — 97,621 2,647 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,132 118 — — 1,132 118 Total investment securities $ 98,753 $ 2,765 $ — $ — $ 98,753 $ 2,765

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Composition of Loan Portfolio	The composition of the loan portfolio is as follows as of the periods indicated: September 30, December 31, 2022 2021 (dollars in thousands; unaudited) Commercial and industrial loans $ 339,928 $ 419,060 Real estate loans: Construction, land, and land development 224,188 183,594 Residential real estate 402,781 204,389 Commercial real estate 1,024,067 835,587 Consumer and other loans 523,536 108,871 Gross loans receivable 2,514,500 1,751,501 Net deferred origination fees and premiums (6,611) (8,766) Loans receivable $ 2,507,889 $ 1,742,735
Summary of an Age Analysis of Past Due Loans	The following table illustrates an age analysis of past due loans as of the dates indicated: 30-89 90 Days Total Current Total Recorded (dollars in thousands; unaudited) September 30, 2022 Commercial and industrial loans $ 588 $ 224 $ 812 $ 339,116 $ 339,928 $ 138 Real estate loans: Construction, land and land development — 66 66 224,122 224,188 — Residential real estate 707 638 1,345 401,436 402,781 638 Commercial real estate 6,901 — 6,901 1,017,166 1,024,067 — Consumer and other loans 27,867 15,045 42,912 480,624 523,536 15,045 $ 36,063 $ 15,973 $ 52,036 $ 2,462,464 $ 2,514,500 $ 15,821 Less net deferred origination fees and premiums (6,611) Loans receivable $ 2,507,889 30-89 90 Days Total Current Total Recorded (dollars in thousands; unaudited) December 31, 2021 Commercial and industrial loans $ 259 $ 38 $ 297 $ 418,763 $ 419,060 $ — Real estate loans: Construction, land and land development — — — 183,594 183,594 — Residential real estate 809 94 903 203,486 204,389 39 Commercial real estate — — — 835,587 835,587 — Consumer and other loans 3,901 1,467 5,368 103,503 108,871 1,467 $ 4,969 $ 1,599 $ 6,568 $ 1,744,933 $ 1,751,501 $ 1,506 Less net deferred origination fees and premiums (8,766) Loans receivable $ 1,742,735
Summary of Information Pertaining to Impaired Loans	The following table is a summary of information pertaining to impaired loans as of the period indicated. Loans originated by CCBX partners are reported using pool accounting and are not subject to impairment analysis, therefore CCBX loans are not included in this table. Unpaid Recorded Recorded Total Related (dollars in thousands; unaudited) September 30, 2022 Commercial and industrial loans $ 106 $ 8 $ 86 $ 94 $ 76 Real estate loans: Construction, land and land development 67 66 — 66 — Residential real estate — — — — — Commercial real estate 6,901 6,901 — 6,901 — Total $ 7,074 $ 6,975 $ 86 $ 7,061 $ 76 December 31, 2021 Commercial and industrial loans $ 173 $ — $ 166 $ 166 $ 132 Real estate loans: Residential real estate 69 55 — 55 — Total $ 242 $ 55 $ 166 $ 221 $ 132
Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans	The following tables summarize the Company’s average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 September 30, 2021 Average Interest Income Average Interest Income (dollars in thousands; unaudited) Commercial and industrial loans $ 103 $ — $ 489 $ — Real estate loans: Construction, land and land development 67 — — — Residential real estate 26 — 111 — Commercial real estate 38 — — — Total $ 234 $ — $ 600 $ — Nine Months Ended September 30, 2022 September 30, 2021 Average Interest Income Average Interest Income (dollars in thousands; unaudited) Commercial and industrial loans $ 125 $ — $ 498 $ — Real estate loans: Construction, land and land development 33 — — — Residential real estate 41 — 143 — Commercial real estate 19 — — — Total $ 218 $ — $ 641 $ —
Analysis of Nonaccrual Loans by Category	An analysis of nonaccrual loans by category consisted of the following at the periods indicated: September 30, December 31, 2022 2021 (dollars in thousands; unaudited) Commercial and industrial loans $ 94 $ 166 Real estate loans: Construction, land and land development 66 — Residential real estate — 55 Commercial real estate 6,901 — Total nonaccrual loans $ 7,061 $ 221
Summary of Loans by Credit Quality Risk Rating	Loans by credit quality risk rating are as follows as of the periods indicated: Pass Other Loans Sub- Doubtful Total (dollars in thousands; unaudited) September 30, 2022 Commercial and industrial loans $ 331,384 $ 8,255 $ 289 $ — $ 339,928 Real estate loans: Construction, land, and land development 224,122 — 66 — 224,188 Residential real estate 402,041 102 638 — 402,781 Commercial real estate 1,009,487 7,680 6,900 — 1,024,067 Consumer and other loans 508,492 — 15,044 — 523,536 $ 2,475,526 $ 16,037 $ 22,937 $ — 2,514,500 Less net deferred origination fees (6,611) Loans receivable $ 2,507,889 December 31, 2021 Commercial and industrial loans $ 416,642 $ 2,180 $ 238 $ — $ 419,060 Real estate loans: Construction, land, and land development 183,594 — — — 183,594 Residential real estate 204,173 122 94 — 204,389 Commercial real estate 824,676 10,911 — — 835,587 Consumer and other loans 107,404 — 1,467 — 108,871 $ 1,736,489 $ 13,213 $ 1,799 $ — 1,751,501 Less net deferred origination fees (8,766) Loans receivable $ 1,742,735
Summary of Allocation of Allowance for Loan Loss as well as Activity in Allowance for Loan Loss Attributed to Various Segments in Loan	The following tables summarize the allocation of the ALLL, as well as the activity in the ALLL attributed to various segments in the loan portfolio, as of and for the three and nine months ended September 30, 2022 and 2021: Commercial Construction, Residential Commercial Consumer Unallocated Total (dollars in thousands; unaudited) Three Months Ended September 30, 2022 ALLL balance, June 30, 2022 $ 4,066 $ 7,999 $ 7,171 $ 4,740 $ 23,810 $ 1,572 $ 49,358 Provision for loan losses or (recapture) 298 (145) 2,260 (215) 16,402 (172) 18,428 4,364 7,854 9,431 4,525 40,212 1,400 67,786 Loans charged-off (360) — (105) — (8,048) — (8,513) Recoveries of loans previously charged-off 2 — — — 7 — 9 Net (charge-offs) recoveries (358) — (105) — (8,041) — (8,504) ALLL balance, September 30, 2022 $ 4,006 $ 7,854 $ 9,326 $ 4,525 $ 32,171 $ 1,400 $ 59,282 Nine Months Ended September 30, 2022 ALLL balance, December 31, 2021 $ 3,221 $ 6,984 $ 4,598 $ 6,590 $ 7,092 $ 147 $ 28,632 Provision for loan losses or (recapture) 1,144 870 4,833 (2,065) 39,429 1,253 45,464 4,365 7,854 9,431 4,525 46,521 1,400 74,096 Loans charged-off (398) — (105) — (14,360) — (14,863) Recoveries of loans previously charged-off 39 — — — 10 — 49 Net (charge-offs) recoveries (359) — (105) — (14,350) — (14,814) ALLL balance, September 30, 2022 $ 4,006 $ 7,854 $ 9,326 $ 4,525 $ 32,171 $ 1,400 $ 59,282 As of September 30, 2022 ALLL amounts allocated to Individually evaluated for impairment $ 76 $ — $ — $ — $ — $ — $ 76 Collectively evaluated for impairment 3,930 7,854 9,326 4,525 32,171 1,400 59,206 ALLL balance, September 30, 2022 $ 4,006 $ 7,854 $ 9,326 $ 4,525 $ 32,171 $ 1,400 $ 59,282 Loans individually evaluated for impairment $ 94 $ 66 $ — $ 6,901 $ — $ 7,061 Loans collectively evaluated for impairment 339,834 224,122 402,781 1,017,166 523,536 2,507,439 Loan balance, September 30, 2022 $ 339,928 $ 224,188 $ 402,781 $ 1,024,067 $ 523,536 $ 2,514,500 Three Months Ended September 30, 2021 ALLL balance, June 30, 2021 $ 3,317 $ 4,520 $ 3,302 $ 8,057 $ 84 $ 686 $ 19,966 Provision for loan losses or (recapture) 8 1,410 (49) (1,420) 11 295 255 3,325 5,930 3,253 6,637 95 981 20,221 Loans charged-off — — — — (31) — (31) Recoveries of loans previously charged-off 16 — — — 16 — 32 Net (charge-offs) recoveries 16 — — — (15) — 1 Balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 Nine Months Ended September 30, 2021 Balance, December 31, 2020 $ 3,353 $ 3,545 $ 3,410 $ 7,810 $ 127 $ 1,017 $ 19,262 Provision for loan losses or (recapture) (17) 2,385 (157) (1,173) (29) (36) 973 3,336 5,930 3,253 6,637 98 981 20,235 Loans charged-off (16) — — — (45) — (61) Recoveries of loans previously charged-off 21 — — — 27 — 48 Net (charge-offs) recoveries 5 — — — (18) — (13) Balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 The following table summarizes the allocation of the ALLL attributed to various segments in the loan portfolio as of December 31, 2021. Commercial Construction, Residential Commercial Consumer Unallocated Total (dollars in thousands; unaudited) As of December 31, 2021 ALLL amounts allocated to Individually evaluated for impairment $ 132 $ — $ — $ — $ — $ — $ 132 Collectively evaluated for impairment 3,089 6,984 4,598 6,590 7,092 147 28,500 ALLL balance, December 31, 2021 $ 3,221 $ 6,984 $ 4,598 $ 6,590 $ 7,092 $ 147 $ 28,632 Loans individually evaluated for impairment $ 166 $ — $ 55 $ — $ — $ 221 Loans collectively evaluated for impairment 418,894 183,594 204,334 835,587 108,871 1,751,280 Loan balance, December 31, 2021 $ 419,060 $ 183,594 $ 204,389 $ 835,587 $ 108,871 $ 1,751,501

Deposits (Tables)

Deposits (Tables)	9 Months Ended
	Sep. 30, 2022
Deposits [Abstract]
Composition of Consolidated Deposits	The composition of consolidated deposits consisted of the following at the periods indicated: September 30, December 31, (dollars in thousands; unaudited) Demand, noninterest bearing $ 813,217 $ 1,355,908 NOW and money market 1,807,105 789,709 Savings 107,508 103,956 Total core deposits 2,727,830 2,249,573 BaaS-brokered deposits 75,363 70,757 Time deposits less than $250,000 24,575 31,057 Time deposits $250,000 and over 9,298 12,400 Total deposits $ 2,837,066 $ 2,363,787
Schedule of Maturity Distribution of Time Deposits	The following table presents the maturity distribution of time deposits as of September 30, 2022: (dollars in thousands; unaudited) Twelve months $ 25,679 One to two years 5,460 Two to three years 1,682 Three to four years 905 Four to five years 147 $ 33,873

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Summary of Minimum Annual Lease Payments under Lease Terms	The following table presents the minimum annual lease payments under the terms of these leases, inclusive of renewal options that the Company is reasonably certain to renew, at September 30, 2022: (dollars in thousands; unaudited) September 30, October 1 to December 31, 2022 $ 326 2023 1,272 2024 864 2025 713 2026 719 2027 and thereafter 2,490 Total lease payments 6,384 Less: amounts representing interest 870 Present value of lease liabilities $ 5,514
Summary of Components of Total Lease Expense and Operating Cash Flows	The following table presents the components of total lease expense and operating cash flows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (dollars in thousands; unaudited) Lease expense: Operating lease expense $ 320 $ 321 $ 961 $ 962 Variable lease expense 52 37 137 108 Total lease expense (1) $ 372 $ 358 $ 1,098 $ 1,070 Cash paid: Cash paid reducing operating lease liabilities $ 371 $ 356 $ 1,090 $ 1,061 (1) Included in net occupancy expense in the Condensed Consolidated Statements of Income (unaudited).

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	A summary of stock option activity under the 2018 Plan and 2006 Plan during the nine months ended September 30, 2022: Options Shares Weighted- Weighted- Aggregate (dollars in thousands, except per share amounts; unaudited) Outstanding at December 31, 2021 694,519 $ 7.79 4.0 $ 29,744 Granted — — Exercised (41,725) $ 7.46 Forfeited or expired (8,460) 9.92 Outstanding at September 30, 2022 644,334 $ 7.79 3.2 $ 20,589 Vested or expected to vest at September 30, 2022 644,334 $ 7.79 3.2 $ 20,589 Exercisable at September 30, 2022 397,553 $ 6.77 2.2 $ 13,108
Summary of Nonvested RSUs	A summary of the Company’s nonvested RSUs at September 30, 2022 and changes during the nine month period is presented below: Nonvested shares - RSUs Shares Weighted- Total or Aggregate (dollars in thousands, except per share amounts; unaudited) Nonvested shares at December 31, 2021 269,844 $ 21.70 $ 7,803 Granted 143,702 $ 39.61 Forfeited (5,716) $ 24.66 Vested (26,137) $ 19.79 Nonvested shares at September 30, 2022 381,693 $ 28.52 $ 4,268 A summary of the Company’s nonvested shares at September 30, 2022 and changes during the nine-month period is presented below: Nonvested shares - RSAs Shares Weighted- Total or Aggregate (dollars in thousands, except per share amounts; unaudited) Nonvested shares at December 31, 2021 10,203 $ 23.78 $ 274 Granted 10,396 $ 37.30 Forfeited — $ — Vested (7,203) $ 26.27 Nonvested shares at September 30, 2022 13,396 $ 32.94 $ 91

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Summary of Estimated Fair Values of Financial Instruments	The following tables present estimated fair values of the Company’s financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated: September 30, 2022 Fair Value Measurements Using Carrying Estimated Level 1 Level 2 Level 3 (dollars in thousands; unaudited) Financial assets Cash and due from banks $ 37,482 $ 37,482 $ 37,482 $ — $ — Interest earning deposits with other banks 373,246 373,246 373,246 — — Investment securities 98,871 98,753 97,316 1,437 — Other investments 10,581 10,581 — 8,009 2,572 Loans held for sale 43,314 43,314 — 43,314 Loans receivable 2,507,889 2,548,820 — — 2,548,820 Accrued interest receivable 13,114 13,114 — 13,114 — Financial liabilities Deposits $ 2,837,066 2,836,117 $ — $ 2,836,117 $ — Subordinated debt 24,343 21,643 — 21,643 — Junior subordinated debentures 3,588 3,464 — 3,464 — Accrued interest payable 153 153 — 153 — December 31, 2021 Fair Value Measurements Using Carrying Estimated Level 1 Level 2 Level 3 (dollars in thousands; unaudited) Financial assets Cash and due from banks $ 14,496 $ 14,496 $ 14,496 $ — $ — Interest earning deposits with other banks 798,665 798,665 798,665 — — Investment securities 36,623 36,675 34,998 1,677 — Other investments 8,478 8,478 — 6,156 2,322 Loans receivable, net 1,714,103 1,686,124 — — 1,686,124 Accrued interest receivable 8,105 8,105 — 8,105 — Financial liabilities Deposits $ 2,363,787 $ 2,363,624 $ — $ 2,363,624 $ — FHLB advances 24,999 24,447 — 24,447 — Subordinated debt 24,288 21,891 — 21,891 — Junior subordinated debentures 3,586 2,771 — 2,771 — Accrued interest payable 357 357 — 357 —
Summary of Assets Measured at Fair Value on Recurring Basis	Items measured at fair value on a recurring basis – The following fair value hierarchy table presents information about the Company’s assets that are measured at fair value on a recurring basis at the dates indicated: Level 1 Level 2 Level 3 Total (dollars in thousands; unaudited) September 30, 2022 Available-for-sale U.S. Treasury securities $ 97,316 $ — $ — $ 97,316 U.S. Agency collateralized mortgage obligations — 1 — 1 U.S. Agency residential mortgage-backed securities — 54 — 54 Municipals — 250 — 250 $ 97,316 $ 305 $ — $ 97,621 December 31, 2021 Available-for-sale U.S. Treasury securities $ 34,998 $ — $ — $ 34,998 U.S. Agency collateralized mortgage obligations — 70 — 70 U.S. Agency residential mortgage-backed securities — 3 — 3 Municipals — 256 — 256 $ 34,998 $ 329 $ — $ 35,327
Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis	Items measured at fair value on a nonrecurring basis – The following table presents financial assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy of the fair value measurements for those assets at the dates indicated: Level 1 Level 2 Level 3 Total (dollars in thousands; unaudited) September 30, 2022 Impaired loans $ — $ — $ 7,061 $ 7,061 Equity securities 2,572 2,572 Total $ — $ — $ 9,633 $ 9,633 December 31, 2021 Impaired loans $ — $ — $ 221 $ 221 Equity securities 2,322 2,322 Total $ — $ — $ 2,543 $ 2,543
Summary of Carrying Value of Equity Securities Without Readily Determinable Fair Values	The following table presents the carrying value of equity securities without readily determinable fair values, as of September 30, 2022, with adjustments recorded during the periods presented for those securities with observable price changes, if applicable. These equity securities are included in other investments on the balance sheet. For the Three Months Ended For the Nine Months Ended (dollars in thousands; unaudited) 2022 2021 2022 2021 Carrying value, beginning of period $ 2,672 $ 850 $ 2,322 $ 850 Purchases — — 350 — Net change recognized in earnings (100) 1,472 (100) 1,472 Carrying value, end of period $ 2,572 $ 2,322 $ 2,572 $ 2,322
Summary of Assets and Liabilities Classified as Level 3 and Measured at Fair Value on Nonrecurring Basis	The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at the dates indicated: (unaudited) Valuation Technique Unobservable Inputs September 30, 2022 Weighted Average Rate December 31, 2021 Weighted Average Rate Impaired loans Collateral valuations Discount to appraised value 8.0% 8.0%

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Common Share	The following is a computation of basic and diluted earnings per common share at the periods indicated: Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 (dollars in thousands, except share data; unaudited) Net Income $ 11,101 $ 6,684 $ 27,507 $ 19,715 Basic weighted average number common shares outstanding 12,938,200 11,999,899 12,921,814 11,982,009 Dilutive effect of equity-based awards 598,623 456,775 563,136 483,337 Diluted weighted average number common shares outstanding 13,536,823 12,456,674 13,484,950 12,465,346 Basic earnings per share $ 0.86 $ 0.56 $ 2.13 $ 1.65 Diluted earnings per share $ 0.82 $ 0.54 $ 2.04 $ 1.58 Antidilutive stock options and restricted stock outstanding 52,840 160,668 52,840 160,668

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Summary of Financial Information of Reportable Segments and Reconciliation to Consolidated Financial Results	Summarized financial information concerning the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables for the periods indicated: September 30, 2022 December 31, 2021 Bank CCBX Total Bank CCBX Total (dollars in thousands; unaudited) Total assets $ 2,140,820 $ 992,921 $ 3,133,741 $ 2,282,514 $ 353,003 $ 2,635,517 Loans held for sale — 43,314 43,314 — — — Total loans receivable 1,592,320 915,569 2,507,889 1,396,060 346,675 1,742,735 Allowance for loan losses (20,139) (39,143) (59,282) (20,299) (8,333) (28,632) Total deposits 1,634,796 1,202,270 2,837,066 1,647,529 716,258 2,363,787 Three months ended September 30, 2022 Three months ended September 30, 2021 Bank CCBX Total Bank CCBX Total (dollars in thousands; unaudited) Net interest income $ 22,815 $ 26,374 $ 49,189 $ 17,359 $ 1,448 $ 18,807 Provision for loan losses (238) 18,666 18,428 192 63 255 Noninterest income (1) 1,113 33,278 34,391 3,783 2,349 6,132 Noninterest expense 17,765 33,322 51,087 13,811 2,319 16,130 (1) For the three months ended September 30, 2022, CCBX noninterest income includes credit enhancements of $17.9 million, fraud enhancements of $11.7 million, and BaaS program income of $3.6 million. For the three months ended September 30, 2021, CCBX noninterest income includes credit enhancements of $10,000, fraud enhancements of $296,000 and BaaS program income of $2.0 million. Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Bank CCBX Total Bank CCBX Total (dollars in thousands; unaudited) Net interest income $ 60,171 $ 58,172 $ 118,343 $ 52,038 $ 2,696 $ 54,734 Provision for loan losses 214 45,250 45,464 877 96 973 Noninterest income (1) 4,426 77,443 81,869 9,175 4,723 13,898 Noninterest expense 50,113 69,558 119,671 37,159 5,054 42,213 (1) For the nine months ended September 30, 2022, CCBX noninterest income includes credit enhancements of $45.2 million, fraud enhancements of $22.8 million and BaaS program income of $9.3 million. For the nine months ended September 30, 2021, CCBX noninterest income includes credit enhancements of $10,000, fraud enhancements of $296,000 and BaaS program income of $4.4 million.

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies - Additional Information (Details)		3 Months Ended	9 Months Ended
	Nov. 01, 2022 USD ($)	Sep. 30, 2022 USD ($) Branch	Sep. 30, 2022 USD ($) Branch Segment	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Description Of Business And Summary Of Accounting Policies [Line Items]
Number of reportable segments | Segment			2
Number of branches | Branch		14	14
Transfer from loans to loans held for sale			$ 128,193,000	$ 0
Loans held for sale		$ 43,314,000	43,314,000		$ 0
7.00% Fixed-To-Floating Subordinated Notes | Subordinated Debt | Subsequent Event
Description Of Business And Summary Of Accounting Policies [Line Items]
Debt instrument amount	$ 20,000,000
fixed annual rate (in percent)	7%
Interest rate term (in years)	5 years
7.00% Fixed-To-Floating Subordinated Notes | Subordinated Debt | Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Description Of Business And Summary Of Accounting Policies [Line Items]
Basis points	2.90%
CCBX Loans
Description Of Business And Summary Of Accounting Policies [Line Items]
Transfer from loans to loans held for sale		48,100,000	128,200,000
Loans held for sale		$ 43,300,000	$ 43,300,000		$ 0

Investments Securities - Amorti

Investments Securities - Amortized Cost and Fair Values of Investments in Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Available-for-sale
Amortized Cost	$ 100,268	$ 35,322
Gross Unrealized Gains	0	6
Gross Unrealized Losses	(2,647)	(1)
Fair Value	97,621	35,327
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Amortized Cost	1,250	1,296
Fair Value	1,132
Amortized Cost	101,518	36,618
Gross Unrealized Gains	0	58
Gross Unrealized Losses	(2,765)	(1)
Fair Value	98,753	36,675
U.S. Treasury securities
Available-for-sale
Amortized Cost	99,960	34,999
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2,644)	(1)
Fair Value	97,316	34,998
U.S. Agency collateralized mortgage obligations
Available-for-sale
Amortized Cost	57	68
Gross Unrealized Gains	0	2
Gross Unrealized Losses	(3)	0
Fair Value	54	70
Municipal bonds
Available-for-sale
Amortized Cost	250	252
Gross Unrealized Gains	0	4
Gross Unrealized Losses	0	0
Fair Value	250	256
U.S. Agency residential mortgage-backed securities
Available-for-sale
Amortized Cost	1	3
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1	3
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Amortized Cost	1,250	1,296
Gross Unrealized Gains	0	52
Gross Unrealized Losses	(118)	0
Fair Value	$ 1,132	$ 1,348

Investments Securities - Amor_2

Investments Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Amortized Cost
One year or less	$ 0
After one year through five years	100,211
Total AFS Debt Securities	100,211
Amortized Cost	100,268	$ 35,322
Fair Value
One year or less	0
After one year through five years	97,567
Total AFS Debt Securities	97,567
Fair Value	97,621	35,327
Amortized Cost
One year or less	0
After one year through five years	0
Total HTM Debt Securities	0
Amortized Cost	1,250	$ 1,296
Fair Value
One year or less	0
After one year through five years	0
Total HTM Debt Securities	0
Fair Value	1,132
U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations
Amortized Cost
Without single maturity date	57
Fair Value
Without single maturity date	54
Amortized Cost
Without single maturity date	1,250
Fair Value
Without single maturity	$ 1,132

Investments Securities - Additi

Investments Securities - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) InvestmentSecurity	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Security InvestmentSecurity	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) InvestmentSecurity
Net Investment Income [Line Items]
Investments in debt securities with amortized cost pledged to secure public deposits	$ 38,000,000		$ 38,000,000		$ 36,000,000
Purchase of securities			134,912,000	$ 57,495,000
Sale of securities	$ 0	$ 0	$ 0	$ 0
Number of securities in unrealized loss position | InvestmentSecurity	8		8		4
Gross unrealized losses for investment securities	$ 2,765,000		$ 2,765,000
Maturity of time horizon			1 year
U.S. Treasury Bills
Net Investment Income [Line Items]
Matured of securities	$ 10,000,000		$ 70,000,000
Number of securities purchased | Security			5
Purchase of securities			$ 135,000,000

Investments Securities - Summar

Investments Securities - Summary of Investment Securities Continuous Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Available-for-sale, Less Than 12 Months, Fair Value	$ 97,621
Available-for-sale, Less Than 12 Months, Gross Unrealized Losses	2,647
Available-for-sale, 12 Months or Greater, Fair Value	0
Available-for-sale, 12 Months or Greater, Gross Unrealized Losses	0
Available-for-Sale, Total Fair Value	97,621
Available-for-Sale, Total Gross Unrealized Losses	2,647
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss [Abstract]
Total investment securities, Less Than 12 Months, Fair Value	98,753
Total investment securities, Less Than 12 Months, Gross Unrealized Losses	2,765
Total investment securities, 12 Months or Greater, Fair Value	0
Total investment securities, 12 Months or Greater, Gross Unrealized Losses	0
Total investment securities, Total Fair Value	98,753
Total investment securities, Total Gross Unrealized Losses	2,765
U.S. Treasury securities
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Available-for-sale, Less Than 12 Months, Fair Value	97,316
Available-for-sale, Less Than 12 Months, Gross Unrealized Losses	2,644
Available-for-sale, 12 Months or Greater, Fair Value	0
Available-for-sale, 12 Months or Greater, Gross Unrealized Losses	0
Available-for-Sale, Total Fair Value	97,316
Available-for-Sale, Total Gross Unrealized Losses	2,644
U.S. Agency collateralized mortgage obligations
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Available-for-sale, Less Than 12 Months, Fair Value	1
Available-for-sale, Less Than 12 Months, Gross Unrealized Losses	0
Available-for-sale, 12 Months or Greater, Fair Value	0
Available-for-sale, 12 Months or Greater, Gross Unrealized Losses	0
Available-for-Sale, Total Fair Value	1
Available-for-Sale, Total Gross Unrealized Losses	0
U.S. Agency residential mortgage-backed securities
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Available-for-sale, Less Than 12 Months, Fair Value	54
Available-for-sale, Less Than 12 Months, Gross Unrealized Losses	3
Available-for-sale, 12 Months or Greater, Fair Value	0
Available-for-sale, 12 Months or Greater, Gross Unrealized Losses	0
Available-for-Sale, Total Fair Value	54
Available-for-Sale, Total Gross Unrealized Losses	3
Debt Securities, Held-to-Maturity, Unrealized Loss Position, Accumulated Loss [Abstract]
Held-to-maturity, Less Than 12 Months, Fair Value	1,132
Held-to-maturity, Less Than 12 Months, Gross Unrealized Losses	118
Held-to-maturity, 12 Months or Greater, Fair Value	0
Held-to-maturity, 12 Months or Greater, Gross Unrealized Losses	0
Held-to-Maturity, Total Fair Value	1,132
Held-to-Maturity, Total Gross Unrealized Losses	118
Municipal bonds
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract]
Available-for-sale, Less Than 12 Months, Fair Value	250
Available-for-sale, Less Than 12 Months, Gross Unrealized Losses	0
Available-for-sale, 12 Months or Greater, Fair Value	0
Available-for-sale, 12 Months or Greater, Gross Unrealized Losses	0
Available-for-Sale, Total Fair Value	250
Available-for-Sale, Total Gross Unrealized Losses	$ 0

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) Loan	Sep. 30, 2021 USD ($) Loan	Sep. 30, 2022 USD ($) Loan	Sep. 30, 2021 USD ($) Loan	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Transfer from loans to loans held for sale			$ 128,193,000	$ 0
Proceeds from sales of loans held for sale			84,878,000	$ 0
Loans held for sale	$ 43,314,000		43,314,000			$ 0
Overdrafts included in loans	3,800,000		3,800,000			1,300,000
Pledged loans	2,448,607,000		2,448,607,000			1,714,103,000
Balance of SBA and USDA loans and participations sold and serviced	14,800,000		14,800,000			19,300,000
Balance of main street lending program loans and participations serviced	58,000,000		58,000,000			56,300,000
Purchased loans	9,700,000		9,700,000			12,800,000
Unamortized premium	173,000		173,000			223,000
Purchased participation loans	58,900,000		58,900,000			27,900,000
Recorded Investment 90 Days or More Past Due and Still Accruing	$ 15,821,000		$ 15,821,000			1,506,000
Accounts receivable, noncurrent, 90 days or more past due, still accruing						1,500,000
Threshold period for past due loans (in days)	90 days		90 days
Number of loans restructured as troubled debt restructurings | Loan	0	0	0	0
Additional funds to borrowers with troubled debt restructurings	$ 0		$ 0
Troubled debt restructuring	0		0
Loans receivable	2,507,889,000		2,507,889,000			1,742,735,000
Losses incurred or recognized	$ 59,282,000	$ 20,222,000	$ 59,282,000	$ 20,222,000	$ 49,358,000	28,632,000	$ 19,966,000	$ 19,262,000
CCBX
Financing Receivable, Allowance for Credit Loss [Line Items]
Company's responsibility for credit losses (in percent)	10%		10%
Loans receivable	$ 77,900,000		$ 77,900,000
Amount of loans that company is responsible for credit loss	$ 7,800,000		$ 7,800,000
Partner's responsibility for credit losses (in percent)	90%		90%
Partner's responsibility for fraud losses (in percentage)	100%		100%
Percentage of revenue earned by company on loans they are responsible for credit losses	100%		100%
Losses incurred or recognized	$ 0		$ 0
Minimum
Financing Receivable, Allowance for Credit Loss [Line Items]
Percentage of collateral coverage to loan balance			100%
Loan repayment extended period of time			6 months
Sustained repayment performance period of loan placed on nonaccrual			6 months
Asset Pledged as Collateral
Financing Receivable, Allowance for Credit Loss [Line Items]
Pledged loans	233,000,000		$ 233,000,000			183,500,000
Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Capital call lines, provided to venture capital firms	174,300,000		174,300,000			202,900,000
Balance of main street lending program loans and participations serviced	3,100,000		3,100,000			4,800,000
Losses incurred or recognized	$ 4,006,000	$ 3,341,000	$ 4,006,000	$ 3,341,000	$ 4,066,000	3,221,000	$ 3,317,000	$ 3,353,000
Consumer Portfolio Segment | Installment/Closed-End Consumer Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Threshold period for past due loans (in days)	120 days		120 days
Threshold period for past due loans, charge off (in days)	120 days		120 days
Threshold period for past due loans, reversal (in days)	120 days		120 days
Consumer Portfolio Segment | Revolving/Open-End Consumer Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Threshold period for past due loans (in days)	180 days		180 days
Threshold period for past due loans, charge off (in days)	180 days		180 days
CCBX Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Transfer from loans to loans held for sale	$ 48,100,000		$ 128,200,000
Proceeds from sales of loans held for sale	64,800,000
Loans held for sale	43,300,000		43,300,000			0
Consumer and other loans	521,300,000		521,300,000			106,800,000
Commercial and industrial loans	15,800,000		15,800,000			28,100,000
Residential real estate loans	203,900,000		203,900,000			36,900,000
CCBX Loans | Consumer Loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Purchased loans	183,100,000		183,100,000			59,700,000
Consumer and other loans	167,300,000		167,300,000			59,400,000
CARES Act Paycheck Protection Program | Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance of SBA and USDA loans and participations serviced	5,800,000		5,800,000			111,800,000
Net deferred origination fees and premiums	(111,000)		$ (111,000)			3,600,000
Small Business Administration | Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Percentage of unsecured, guaranteed and loan			100%
CCBX Capital Call Lines
Financing Receivable, Allowance for Credit Loss [Line Items]
Commercial and industrial loans	$ 174,300,000		$ 174,300,000			$ 202,900,000

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Gross loans receivable	$ 2,514,500	$ 1,751,501
Net deferred origination fees and premiums	(6,611)	(8,766)
Loans receivable	2,507,889	1,742,735
Commercial and industrial loans
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Gross loans receivable	339,928	419,060
Construction, land, and land development
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Gross loans receivable	224,188	183,594
Real Estate Portfolio Segment | Residential real estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Gross loans receivable	402,781	204,389
Real Estate Portfolio Segment | Commercial real estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Gross loans receivable	1,024,067	835,587
Consumer and other loans
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Gross loans receivable	$ 523,536	$ 108,871

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Summary of an Age Analysis of Past Due Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	$ 2,514,500	$ 1,751,501
Recorded Investment 90 Days or More Past Due and Still Accruing	15,821	1,506
Net deferred origination fees and premiums	(6,611)	(8,766)
Loans receivable	2,507,889	1,742,735
30-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	36,063	4,969
90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	15,973	1,599
Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	52,036	6,568
Current
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	2,462,464	1,744,933
Commercial and industrial loans
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	339,928	419,060
Recorded Investment 90 Days or More Past Due and Still Accruing	138	0
Commercial and industrial loans | 30-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	588	259
Commercial and industrial loans | 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	224	38
Commercial and industrial loans | Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	812	297
Commercial and industrial loans | Current
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	339,116	418,763
Construction, land, and land development
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	224,188	183,594
Recorded Investment 90 Days or More Past Due and Still Accruing	0	0
Construction, land, and land development | 30-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	0	0
Construction, land, and land development | 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	66	0
Construction, land, and land development | Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	66	0
Construction, land, and land development | Current
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	224,122	183,594
Real Estate Portfolio Segment | Residential real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	402,781	204,389
Recorded Investment 90 Days or More Past Due and Still Accruing	638	39
Real Estate Portfolio Segment | Commercial real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	1,024,067	835,587
Recorded Investment 90 Days or More Past Due and Still Accruing	0	0
Real Estate Portfolio Segment | 30-89 Days Past Due | Residential real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	707	809
Real Estate Portfolio Segment | 30-89 Days Past Due | Commercial real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	6,901	0
Real Estate Portfolio Segment | 90 Days or More Past Due | Residential real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	638	94
Real Estate Portfolio Segment | 90 Days or More Past Due | Commercial real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	0	0
Real Estate Portfolio Segment | Total Past Due | Residential real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	1,345	903
Real Estate Portfolio Segment | Total Past Due | Commercial real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	6,901	0
Real Estate Portfolio Segment | Current | Residential real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	401,436	203,486
Real Estate Portfolio Segment | Current | Commercial real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	1,017,166	835,587
Consumer and other loans
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	523,536	108,871
Recorded Investment 90 Days or More Past Due and Still Accruing	15,045	1,467
Consumer and other loans | 30-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	27,867	3,901
Consumer and other loans | 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	15,045	1,467
Consumer and other loans | Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	42,912	5,368
Consumer and other loans | Current
Financing Receivable Recorded Investment Past Due [Line Items]
Gross loans receivable	$ 480,624	$ 103,503

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Summary of Information Pertaining to Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 7,074	$ 242
Recorded Investment With No Allowance	6,975	55
Recorded Investment With Allowance	86	166
Total Recorded Investment	7,061	221
Related Allowance	76	132
Commercial and industrial loans
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	106	173
Recorded Investment With No Allowance	8	0
Recorded Investment With Allowance	86	166
Total Recorded Investment	94	166
Related Allowance	76	132
Construction, land, and land development
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	67
Recorded Investment With No Allowance	66
Recorded Investment With Allowance	0
Total Recorded Investment	66
Related Allowance	0
Real Estate Portfolio Segment | Residential real estate
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	0	69
Recorded Investment With No Allowance	0	55
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	55
Related Allowance	0	$ 0
Real Estate Portfolio Segment | Commercial real estate
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	6,901
Recorded Investment With No Allowance	6,901
Recorded Investment With Allowance	0
Total Recorded Investment	6,901
Related Allowance	$ 0

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable Impaired [Line Items]
Average Recorded Investment	$ 234	$ 600	$ 218	$ 641
Interest Income Recognized	0	0	0	0
Commercial and industrial loans
Financing Receivable Impaired [Line Items]
Average Recorded Investment	103	489	125	498
Interest Income Recognized	0	0	0	0
Construction, land, and land development
Financing Receivable Impaired [Line Items]
Average Recorded Investment	67	0	33	0
Interest Income Recognized	0	0	0	0
Real Estate Portfolio Segment | Residential real estate
Financing Receivable Impaired [Line Items]
Average Recorded Investment	26	111	41	143
Interest Income Recognized	0	0	0	0
Real Estate Portfolio Segment | Commercial real estate
Financing Receivable Impaired [Line Items]
Average Recorded Investment	38	0	19	0
Interest Income Recognized	$ 0	$ 0	$ 0	$ 0

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Analysis of Nonaccrual Loans by Category (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	$ 7,061	$ 221
Commercial and industrial loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	94	166
Construction, land, and land development
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	66	0
Real Estate Portfolio Segment | Residential real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	0	55
Real Estate Portfolio Segment | Commercial real estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	$ 6,901	$ 0

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses - Summary of Loans by Credit Quality Risk Rating (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	$ 2,514,500	$ 1,751,501
Net deferred origination fees and premiums	(6,611)	(8,766)
Loans receivable	2,507,889	1,742,735
Commercial and industrial loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	339,928	419,060
Construction, land, and land development
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	224,188	183,594
Real Estate Portfolio Segment | Residential real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	402,781	204,389
Real Estate Portfolio Segment | Commercial real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	1,024,067	835,587
Consumer and other loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	523,536	108,871
Pass
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	2,475,526	1,736,489
Pass | Commercial and industrial loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	331,384	416,642
Pass | Construction, land, and land development
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	224,122	183,594
Pass | Real Estate Portfolio Segment | Residential real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	402,041	204,173
Pass | Real Estate Portfolio Segment | Commercial real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	1,009,487	824,676
Pass | Consumer and other loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	508,492	107,404
Other Loans Especially Mentioned
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	16,037	13,213
Other Loans Especially Mentioned | Commercial and industrial loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	8,255	2,180
Other Loans Especially Mentioned | Construction, land, and land development
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	0	0
Other Loans Especially Mentioned | Real Estate Portfolio Segment | Residential real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	102	122
Other Loans Especially Mentioned | Real Estate Portfolio Segment | Commercial real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	7,680	10,911
Other Loans Especially Mentioned | Consumer and other loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	0	0
Sub- Standard
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	22,937	1,799
Sub- Standard | Commercial and industrial loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	289	238
Sub- Standard | Construction, land, and land development
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	66	0
Sub- Standard | Real Estate Portfolio Segment | Residential real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	638	94
Sub- Standard | Real Estate Portfolio Segment | Commercial real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	6,900	0
Sub- Standard | Consumer and other loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	15,044	1,467
Doubtful
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	0	0
Doubtful | Commercial and industrial loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	0	0
Doubtful | Construction, land, and land development
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	0	0
Doubtful | Real Estate Portfolio Segment | Residential real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	0	0
Doubtful | Real Estate Portfolio Segment | Commercial real estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	0	0
Doubtful | Consumer and other loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	$ 0	$ 0

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - Summary of Allocation of Allowance for Loan Loss as well as Activity in Allowance for Loan Loss Attributed to Various Segments in Loan (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
Loans And Leases Receivable Disclosure [Line Items]
ALLL beginning balance	$ 49,358	$ 19,966	$ 28,632	$ 19,262
Provision for loan losses or (recapture)	18,428	255	45,464	973
Loans receivable allowance including provision losses or (recapture)	67,786	20,221	74,096	20,235
Loans charged-off	(8,513)	(31)	(14,863)	(61)
Recoveries of loans previously charged-off	9	32	49	48
Net (charge-offs) recoveries	(8,504)	1	(14,814)	(13)
Ending ALLL Balance	59,282	20,222	59,282	20,222
Allowances
Individually evaluated for impairment	76		76		$ 132
Collectively evaluated for impairment	59,206		59,206		28,500
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	59,282	20,222	59,282	20,222	28,632
Loans
Loans individually evaluated for impairment	7,061		7,061		221
Loans collectively evaluated for impairment	2,507,439		2,507,439		1,751,280
Ending Loan Balance	2,514,500		2,514,500		1,751,501
Commercial and industrial loans
Loans And Leases Receivable Disclosure [Line Items]
ALLL beginning balance	4,066	3,317	3,221	3,353
Provision for loan losses or (recapture)	298	8	1,144	(17)
Loans receivable allowance including provision losses or (recapture)	4,364	3,325	4,365	3,336
Loans charged-off	(360)	0	(398)	(16)
Recoveries of loans previously charged-off	2	16	39	21
Net (charge-offs) recoveries	(358)	16	(359)	5
Ending ALLL Balance	4,006	3,341	4,006	3,341
Allowances
Individually evaluated for impairment	76		76		132
Collectively evaluated for impairment	3,930		3,930		3,089
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	4,006	3,341	4,006	3,341	3,221
Loans
Loans individually evaluated for impairment	94		94		166
Loans collectively evaluated for impairment	339,834		339,834		418,894
Ending Loan Balance	339,928		339,928		419,060
Construction, land, and land development
Loans And Leases Receivable Disclosure [Line Items]
ALLL beginning balance	7,999	4,520	6,984	3,545
Provision for loan losses or (recapture)	(145)	1,410	870	2,385
Loans receivable allowance including provision losses or (recapture)	7,854	5,930	7,854	5,930
Loans charged-off	0	0	0	0
Recoveries of loans previously charged-off	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0
Ending ALLL Balance	7,854	5,930	7,854	5,930
Allowances
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	7,854		7,854		6,984
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	7,854	5,930	7,854	5,930	6,984
Loans
Loans individually evaluated for impairment	66		66		0
Loans collectively evaluated for impairment	224,122		224,122		183,594
Ending Loan Balance	224,188		224,188		183,594
Real Estate Portfolio Segment | Residential real estate
Loans And Leases Receivable Disclosure [Line Items]
ALLL beginning balance	7,171	3,302	4,598	3,410
Provision for loan losses or (recapture)	2,260	(49)	4,833	(157)
Loans receivable allowance including provision losses or (recapture)	9,431	3,253	9,431	3,253
Loans charged-off	(105)	0	(105)	0
Recoveries of loans previously charged-off	0	0	0	0
Net (charge-offs) recoveries	(105)	0	(105)	0
Ending ALLL Balance	9,326	3,253	9,326	3,253
Allowances
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	9,326		9,326		4,598
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	9,326	3,253	9,326	3,253	4,598
Loans
Loans individually evaluated for impairment	0		0		55
Loans collectively evaluated for impairment	402,781		402,781		204,334
Ending Loan Balance	402,781		402,781		204,389
Real Estate Portfolio Segment | Commercial real estate
Loans And Leases Receivable Disclosure [Line Items]
ALLL beginning balance	4,740	8,057	6,590	7,810
Provision for loan losses or (recapture)	(215)	(1,420)	(2,065)	(1,173)
Loans receivable allowance including provision losses or (recapture)	4,525	6,637	4,525	6,637
Loans charged-off	0	0	0	0
Recoveries of loans previously charged-off	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0
Ending ALLL Balance	4,525	6,637	4,525	6,637
Allowances
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	4,525		4,525		6,590
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	4,525	6,637	4,525	6,637	6,590
Loans
Loans individually evaluated for impairment	6,901		6,901		0
Loans collectively evaluated for impairment	1,017,166		1,017,166		835,587
Ending Loan Balance	1,024,067		1,024,067		835,587
Consumer and other loans
Loans And Leases Receivable Disclosure [Line Items]
ALLL beginning balance	23,810	84	7,092	127
Provision for loan losses or (recapture)	16,402	11	39,429	(29)
Loans receivable allowance including provision losses or (recapture)	40,212	95	46,521	98
Loans charged-off	(8,048)	(31)	(14,360)	(45)
Recoveries of loans previously charged-off	7	16	10	27
Net (charge-offs) recoveries	(8,041)	(15)	(14,350)	(18)
Ending ALLL Balance	32,171	80	32,171	80
Allowances
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	32,171		32,171		7,092
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	32,171	80	32,171	80	7,092
Loans
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	523,536		523,536		108,871
Ending Loan Balance	523,536		523,536		108,871
Unallocated
Loans And Leases Receivable Disclosure [Line Items]
ALLL beginning balance	1,572	686	147	1,017
Provision for loan losses or (recapture)	(172)	295	1,253	(36)
Loans receivable allowance including provision losses or (recapture)	1,400	981	1,400	981
Loans charged-off	0	0	0	0
Recoveries of loans previously charged-off	0	0	0	0
Net (charge-offs) recoveries	0	0	0	0
Ending ALLL Balance	1,400	981	1,400	981
Allowances
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	1,400		1,400		147
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest	$ 1,400	$ 981	$ 1,400	$ 981	$ 147

Deposits - Composition of Conso

Deposits - Composition of Consolidated Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Deposits [Abstract]
Demand, noninterest bearing	$ 813,217	$ 1,355,908
NOW and money market	1,807,105	789,709
Savings	107,508	103,956
Total core deposits	2,727,830	2,249,573
BaaS-brokered deposits	75,363	70,757
Time deposits less than $250,000	24,575	31,057
Time deposits $250,000 and over	9,298	12,400
Total deposits	$ 2,837,066	$ 2,363,787

Deposits - Schedule of Maturity

Deposits - Schedule of Maturity Distribution of Time Deposits (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Time Deposits, Fiscal Year Maturity [Abstract]
Twelve months	$ 25,679
One to two years	5,460
Two to three years	1,682
Three to four years	905
Four to five years	147
Total time deposits	$ 33,873

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Oct. 01, 2021
Lessee Lease Description [Line Items]
Operating leases weighted-average remaining lease term	8 years 2 months 12 days		8 years 2 months 12 days
Operating lease rental expense	$ 351	$ 343	$ 1,000	$ 1,000
ATM Machines
Lessee Lease Description [Line Items]
Prepaid capital lease, term					5 years
Depreciation	$ 32	$ 34	96	$ 100
Remaining depreciation			$ 384
Minimum
Lessee Lease Description [Line Items]
Operating leases lease term	4 months		4 months
Lessee, operating lease, renewal term	5 years		5 years
Maximum
Lessee Lease Description [Line Items]
Operating leases lease term	22 years 4 months 24 days		22 years 4 months 24 days
Lessee, operating lease, renewal term	10 years		10 years

Leases - Summary of Minimum Ann

Leases - Summary of Minimum Annual Lease Payments under Lease Terms (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
October 1 to December 31, 2022	$ 326
2023	1,272
2024	864
2025	713
2026	719
2027 and thereafter	2,490
Total lease payments	6,384
Less: amounts representing interest	870
Operating lease liabilities	$ 5,514	$ 6,320

Leases - Summary of Components

Leases - Summary of Components of Total Lease Expense and Operating Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lease expense:
Operating lease expense	$ 320	$ 321	$ 961	$ 962
Variable lease expense	52	37	137	108
Total lease expense	372	358	1,098	1,070
Cash paid:
Cash paid reducing operating lease liabilities	$ 371	$ 356	$ 1,090	$ 1,061

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($)		3 Months Ended				9 Months Ended		12 Months Ended
	May 24, 2021	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted in period (in shares)						0
Total intrinsic or aggregate value of options exercise price		$ 186,000			$ 101,000	$ 1,600,000	$ 775,000
Total unrecognized compensation cost related to nonvested stock options granted		1,200,000				1,200,000
Stock-based compensation						$ 1,788,000	902,000
Stock Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested stock options/ RSA granted, weighted-average period						4 years 8 months 12 days
Stock-based compensation		65,000			92,000	$ 253,000	273,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to nonvested stock options granted		9,400,000				$ 9,400,000
Unrecognized compensation cost related to nonvested stock options/ RSA granted, weighted-average period						3 years 7 months 6 days
Stock-based compensation		$ 518,000			133,000	$ 1,300,000	367,000
Granted (in shares)						143,702,000
Restricted Stock Units (RSUs) | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			7,000	150
Award vesting period			3 years	10 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted in period (in shares)		0				0
Unrecognized compensation cost related to nonvested stock options/ RSA granted, weighted-average period						5 years 4 months 24 days
Stock-based compensation		$ 2,000			$ 3,000	$ 7,000	$ 132,000
Total unrecognized compensation cost related to nonvested restricted stock awards		$ 48,000				$ 48,000
2018 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock authorized (in shares)	600,000
Shares available to be granted (in shares)		522,378				522,378
Stock options granted in period (in shares)		0			0	0	0
2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		20,000	9,831	53,721
Award vesting period			5 years	4 years
2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | Employees | Share-Based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		10,000
Award vesting period		7 years 6 months
2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | Employees | Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		10,000
Award vesting period		5 years
2018 Omnibus Incentive Plan | Performance-Based Restricted Stock Units | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			53,000
2018 Omnibus Incentive Plan | Restricted Stock | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market value of shares grants per year						$ 35,000
2018 Omnibus Incentive Plan | Restricted Stock | Board Chair
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market value of shares grants per year						55,000
2018 Omnibus Incentive Plan | Restricted Stock | Committee Chairs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market value of shares grants per year						$ 2,500
2006 Plan and the Directors' Stock Bonus Plan (2006 Plan)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock authorized (in shares)								0
Directors Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted in period (in shares)		10,396				10,396
Unrecognized compensation cost related to nonvested stock options/ RSA granted, weighted-average period						7 months 6 days
Directors Stock Compensation Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation		$ 98,000			$ 43,000	$ 196,000	$ 133,000
Granted (in shares)						10,396,000
Directors Stock Compensation Plan | Restricted Stock | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to nonvested stock options granted		$ 249,000				$ 249,000
Maximum | 2018 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock authorized (in shares)								500,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Shares
Granted (in shares)			0
Weighted- Average Exercise Price
Granted (in dollars per share)			$ 0
2018 Omnibus Incentive Plan
Shares
Outstanding, beginning of period (in shares)			694,519
Granted (in shares)	0	0	0	0
Exercised (in shares)			(41,725)
Forfeited or expired (in shares)			(8,460)
Outstanding, end of period (in shares)	644,334		644,334		694,519
Vested or expected to vest, end of period (in shares)	644,334		644,334
Exercisable, end of period (in shares)	397,553		397,553
Weighted- Average Exercise Price
Outstanding, beginning of period (in dollars per share)			$ 7.79
Exercised (in dollars per share)			7.46
Forfeited or expired (in dollars per share)			9.92
Outstanding, end of period (in dollars per share)	$ 7.79		7.79		$ 7.79
Vested or expected to vest, end of period (in dollars per share)	7.79		7.79
Exercisable, end of period (in dollars per share)	$ 6.77		$ 6.77
Additional Disclosures
Weighted average remaining contractual term, outstanding, beginning of period			3 years 2 months 12 days		4 years
Weighted average remaining contractual term, outstanding, beginning of period			3 years 2 months 12 days		4 years
Weighted average remaining contractual term, vested or expected to vest, end of period			3 years 2 months 12 days
Weighted average remaining contractual term, exercisable, end of period			2 years 2 months 12 days
Aggregate intrinsic value, outstanding, beginning of period (in dollars)			$ 29,744
Aggregate intrinsic value, outstanding, end of period (in dollars)	$ 20,589		20,589		$ 29,744
Aggregate intrinsic value, vested or expected to vest, end of period (in dollars)	20,589		20,589
Aggregate intrinsic value, exercisable, end of period (in dollars)	$ 13,108		$ 13,108

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Nonvested Shares (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($)
Restricted Stock Units (RSUs)
Shares
Outstanding, beginning of period (in shares) | shares	269,844,000
Granted (in shares) | shares	143,702,000
Forfeited (in shares) | shares	(5,716,000)
Vested (in shares) | shares	(26,137,000)
Outstanding, end of period (in shares) | shares	381,693,000
Weighted- Average Grant Date Fair Value
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 21.70
Granted (in dollars per share) | $ / shares	39.61
Forfeited (in dollars per share) | $ / shares	24.66
Vested (in dollars per share) | $ / shares	19.79
Outstanding, end of period (in dollars per share) | $ / shares	$ 28.52
Total or Aggregate intrinsic value, end of period (in dollars) | $	$ 4,268	$ 7,803
Restricted Stock | Directors Stock Compensation Plan
Shares
Outstanding, beginning of period (in shares) | shares	10,203,000
Granted (in shares) | shares	10,396,000
Forfeited (in shares) | shares	0
Vested (in shares) | shares	(7,203,000)
Outstanding, end of period (in shares) | shares	13,396,000
Weighted- Average Grant Date Fair Value
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 23.78
Granted (in dollars per share) | $ / shares	37.30
Forfeited (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	26.27
Outstanding, end of period (in dollars per share) | $ / shares	$ 32.94
Total or Aggregate intrinsic value, end of period (in dollars) | $	$ 91	$ 274

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial assets
Other investments	$ 10,581	$ 8,478
Financial liabilities
Federal Home Loan Bank ("FHLB") advances	0	24,999
Carrying Value
Financial assets
Cash and due from banks	37,482	14,496
Interest earning deposits with other banks	373,246	798,665
Investment securities	98,871	36,623
Other investments	10,581	8,478
Loans held for sale	43,314
Loans receivable	2,507,889	1,714,103
Accrued interest receivable	13,114	8,105
Financial liabilities
Deposits	2,837,066	2,363,787
Federal Home Loan Bank ("FHLB") advances		24,999
Subordinated debt	24,343	24,288
Junior subordinated debentures	3,588	3,586
Accrued interest payable	153	357
Estimated Fair Value
Financial assets
Cash and due from banks	37,482	14,496
Interest earning deposits with other banks	373,246	798,665
Investment securities	98,753	36,675
Other investments	10,581	8,478
Loans held for sale	43,314
Loans receivable	2,548,820	1,686,124
Accrued interest receivable	13,114	8,105
Financial liabilities
Deposits	2,836,117	2,363,624
Federal Home Loan Bank ("FHLB") advances		24,447
Subordinated debt	21,643	21,891
Junior subordinated debentures	3,464	2,771
Accrued interest payable	153	357
Estimated Fair Value | Level 1
Financial assets
Cash and due from banks	37,482	14,496
Interest earning deposits with other banks	373,246	798,665
Investment securities	97,316	34,998
Other investments	0	0
Loans held for sale	0
Loans receivable	0	0
Accrued interest receivable	0	0
Financial liabilities
Deposits	0	0
Federal Home Loan Bank ("FHLB") advances		0
Subordinated debt	0	0
Junior subordinated debentures	0	0
Accrued interest payable	0	0
Estimated Fair Value | Level 2
Financial assets
Cash and due from banks	0	0
Interest earning deposits with other banks	0	0
Investment securities	1,437	1,677
Other investments	8,009	6,156
Loans held for sale	43,314
Loans receivable	0	0
Accrued interest receivable	13,114	8,105
Financial liabilities
Deposits	2,836,117	2,363,624
Federal Home Loan Bank ("FHLB") advances		24,447
Subordinated debt	21,643	21,891
Junior subordinated debentures	3,464	2,771
Accrued interest payable	153	357
Estimated Fair Value | Level 3
Financial assets
Cash and due from banks	0	0
Interest earning deposits with other banks	0	0
Investment securities	0	0
Other investments	2,572	2,322
Loans held for sale
Loans receivable	2,548,820	1,686,124
Accrued interest receivable	0	0
Financial liabilities
Deposits	0	0
Federal Home Loan Bank ("FHLB") advances		0
Subordinated debt	0	0
Junior subordinated debentures	0	0
Accrued interest payable	$ 0	$ 0

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Assets Measured at Fair Value 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]
Fair Value	$ 97,621	$ 35,327
Estimated Fair Value | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	97,621	35,327
Estimated Fair Value | Recurring | U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	97,316	34,998
Estimated Fair Value | Recurring | U.S. Agency collateralized mortgage obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	1	70
Estimated Fair Value | Recurring | U.S. Agency residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	54	3
Estimated Fair Value | Recurring | Municipals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	250	256
Estimated Fair Value | Recurring | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	97,316	34,998
Estimated Fair Value | Recurring | Level 1 | U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	97,316	34,998
Estimated Fair Value | Recurring | Level 1 | U.S. Agency collateralized mortgage obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimated Fair Value | Recurring | Level 1 | U.S. Agency residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimated Fair Value | Recurring | Level 1 | Municipals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimated Fair Value | Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	305	329
Estimated Fair Value | Recurring | Level 2 | U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimated Fair Value | Recurring | Level 2 | U.S. Agency collateralized mortgage obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	1	70
Estimated Fair Value | Recurring | Level 2 | U.S. Agency residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	54	3
Estimated Fair Value | Recurring | Level 2 | Municipals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	250	256
Estimated Fair Value | Recurring | Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimated Fair Value | Recurring | Level 3 | U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimated Fair Value | Recurring | Level 3 | U.S. Agency collateralized mortgage obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimated Fair Value | Recurring | Level 3 | U.S. Agency residential mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	0	0
Estimated Fair Value | Recurring | Level 3 | Municipals
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 0	$ 0

Fair Value Measurements - Sum_3

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	$ 9,633	$ 2,543
Impaired loans
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	7,061	221
Equity securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	2,572	2,322
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	0	0
Level 1 | Impaired loans
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	0	0
Level 1 | Equity securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	0	0
Level 2 | Impaired loans
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	0	0
Level 2 | Equity securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	9,633	2,543
Level 3 | Impaired loans
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	7,061	221
Level 3 | Equity securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	$ 2,572	$ 2,322

Fair Value Measurements - Sum_4

Fair Value Measurements - Summary of Carrying Value of Equity Securities Without Readily Determinable Fair Values (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Purchases	$ 0	$ 0	$ 350	$ 0
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Carrying value, beginning of period	2,672	850	2,322	850
Net change recognized in earnings	(100)	1,472	(100)	1,472
Carrying value, end of period	$ 2,572	$ 2,322	$ 2,572	$ 2,322

Fair Value Measurements - Sum_5

Fair Value Measurements - Summary of Assets and Liabilities Classified as Level 3 and Measured at Fair Value on Nonrecurring Basis (Details)	3 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2022
Level 3 | Measurement Input, Discount Rate | Valuation, Market Approach
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impaired loans, measurement input	8%	8%

Earnings Per Common Share - Sch

Earnings Per Common Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract]
Net Income	$ 11,101	$ 6,684	$ 27,507	$ 19,715
Basic weighted average number common shares outstanding (in shares)	12,938,200	11,999,899	12,921,814	11,982,009
Dilutive effect of equity-based awards (in shares)	598,623	456,775	563,136	483,337
Diluted weighted average number common shares outstanding (in shares)	13,536,823	12,456,674	13,484,950	12,465,346
Basic (in usd per share)	$ 0.86	$ 0.56	$ 2.13	$ 1.65
Diluted (in usd per share)	$ 0.82	$ 0.54	$ 2.04	$ 1.58
Stock Options and Restricted Stock
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract]
Antidilutive stock options and restricted stock outstanding (in shares)	52,840	160,668	52,840	160,668

Segment Reporting - Additional

Segment Reporting - Additional Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Segment	Sep. 30, 2021 USD ($)
Segment Reporting [Abstract]
Number of operating segments			2
Number of reportable segments			2
Administrative expense | $	$ 7.9	$ 5.2	$ 19.8	$ 13.9

Segment Reporting - Summary of

Segment Reporting - Summary of Financial Information of Reportable Segments and Reconciliation to Consolidated Financial Results (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
Segment Reporting Information [Line Items]
Total assets	$ 3,133,741		$ 3,133,741		$ 2,635,517
Loans held for sale	43,314		43,314		0
Total deposits	2,837,066		2,837,066		2,363,787
Net interest income	49,189	$ 18,807	118,343	$ 54,734
Provision for loan losses	18,428	255	45,464	973
Noninterest income	34,391	6,132	81,869	13,898
Noninterest expense	51,087	16,130	119,671	42,213
CCBX | Credit Enhancements
Segment Reporting Information [Line Items]
Revenue not from contracts with customer	17,900	10	45,200	10
CCBX | Fraud Enhancements
Segment Reporting Information [Line Items]
Revenue not from contracts with customer	11,700	296	22,800	296
CCBX | BaaS Program Income
Segment Reporting Information [Line Items]
Revenue from contract with customer	3,600	2,000	9,300	4,400
Operating Segments
Segment Reporting Information [Line Items]
Total assets	3,133,741		3,133,741		2,635,517
Loans held for sale	43,314		43,314		0
Loans receivable	2,507,889		2,507,889		1,742,735
Allowance for loan losses	(59,282)		(59,282)		(28,632)
Total deposits	2,837,066		2,837,066		2,363,787
Net interest income	49,189	18,807	118,343	54,734
Provision for loan losses	18,428	255	45,464	973
Noninterest income	34,391	6,132	81,869	13,898
Noninterest expense	51,087	16,130	119,671	42,213
Operating Segments | Bank
Segment Reporting Information [Line Items]
Total assets	2,140,820		2,140,820		2,282,514
Loans held for sale	0		0		0
Loans receivable	1,592,320		1,592,320		1,396,060
Allowance for loan losses	(20,139)		(20,139)		(20,299)
Total deposits	1,634,796		1,634,796		1,647,529
Net interest income	22,815	17,359	60,171	52,038
Provision for loan losses	(238)	192	214	877
Noninterest income	1,113	3,783	4,426	9,175
Noninterest expense	17,765	13,811	50,113	37,159
Operating Segments | CCBX
Segment Reporting Information [Line Items]
Total assets	992,921		992,921		353,003
Loans held for sale	43,314		43,314		0
Loans receivable	915,569		915,569		346,675
Allowance for loan losses	(39,143)		(39,143)		(8,333)
Total deposits	1,202,270		1,202,270		$ 716,258
Net interest income	26,374	1,448	58,172	2,696
Provision for loan losses	18,666	63	45,250	96
Noninterest income	33,278	2,349	77,443	4,723
Noninterest expense	$ 33,322	$ 2,319	$ 69,558	$ 5,054