Coastal Financial (CCB) 10-Q 6 Nov 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 04, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Registrant Name	COASTAL FINANCIAL CORPORATION
Entity Central Index Key	0001437958
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,950,908
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Trading Symbol	CCB
Entity File Number	001-38589
Entity Tax Identification Number	56-2392007
Entity Address, Address Line One	5415 Evergreen Way
Entity Address, City or Town	Everett
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98203
City Area Code	425
Local Phone Number	257-9000
Entity Incorporation, State or Country Code	WA
Document Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, no par value per share
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 14,136	$ 16,555
Interest earning deposits with other banks (restricted cash of $0 and $27,355 at September 30, 2020 and December 31, 2019, respectively)	168,034	111,259
Investment securities, available for sale, at fair value	20,428	28,360
Investment securities, held to maturity, at amortized cost	3,354	4,350
Other investments	5,951	4,505
Loans receivable	1,509,389	939,103
Allowance for loan losses	(17,046)	(11,470)
Total loans receivable, net	1,492,343	927,633
Premises and equipment, net	16,881	13,108
Operating lease right-of-use assets	7,379	8,493
Accrued interest receivable	8,216	2,980
Bank-owned life insurance, net	7,031	6,882
Deferred tax asset, net	2,722	2,743
Other assets	3,144	1,658
Total assets	1,749,619	1,128,526
LIABILITIES
Deposits	1,360,011	967,959
Federal Home Loan Bank (“FHLB”) advances	24,999	10,000
Paycheck Protection Program Liquidity Facility	202,595
Principal amount $10,000 (less unamortized debt issuance costs of $11 and $21 at September 30, 2020 and December 31, 2019, respectively)	9,989	9,979
Principal amount $3,609 (less unamortized debt issuance costs of $25 and $26 at September 30, 2020 and December 31, 2019, respectively)	3,584	3,583
Deferred compensation	891	974
Accrued interest payable	481	308
Operating lease liabilities	7,579	8,679
Other liabilities	4,258	2,871
Total liabilities	1,614,387	1,004,353
SHAREHOLDERS’ EQUITY
Authorized: 25,000,000 shares at September 30, 2020 and December 31, 2019; issued and outstanding: zero shares at September 30, 2020 and December 31, 2019
Authorized: 300,000,000 shares at September 30, 2020 and December 31, 2019; 11,930,243 voting shares at September 30, 2020 issued and outstanding and 11,913,885 voting shares at December 31, 2019 issued and outstanding	87,479	86,983
Retained earnings	47,707	37,222
Accumulated other comprehensive income (loss), net of tax	46	(32)
Total shareholders’ equity	135,232	124,173
Total liabilities and shareholders’ equity	$ 1,749,619	$ 1,128,526

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Restricted cash	$ 0	$ 27,355
Preferred stock, no par value
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
Common stock, shares authorized	300,000,000	300,000,000
Voting Common Stock
Common stock, shares, issued	11,930,243	11,913,885
Common stock, shares, outstanding	11,930,243	11,913,885
Subordinated Debt
Principal amount	$ 10,000	$ 10,000
Unamortized debt issuance cost	11	21
Junior Subordinated Debentures
Principal amount	3,609	3,609
Unamortized debt issuance cost	$ 25	$ 26

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 16,244	$ 11,691	$ 44,025	$ 33,027
Interest on interest earning deposits with other banks	99	486	587	1,946
Interest on investment securities	27	168	199	481
Dividends on other investments	24	10	129	99
Total interest income	16,394	12,355	44,940	35,553
INTEREST EXPENSE
Interest on deposits	880	1,435	3,530	4,291
Interest on borrowed funds	418	193	957	582
Total interest expense	1,298	1,628	4,487	4,873
Net interest income	15,096	10,727	40,453	30,680
PROVISION FOR LOAN LOSSES	2,200	637	5,708	1,724
Net interest income after provision for loan losses	12,896	10,090	34,745	28,956
NONINTEREST INCOME
Sublease and lease income	30	16	91	36
Gain on sales of loans, net	47	369	47	490
Gain on sales of securities, net		171		171
Other income	160	141	399	359
Total noninterest income	1,942	2,088	6,133	6,204
NONINTEREST EXPENSE
Salaries and employee benefits	5,971	4,971	16,869	14,058
Occupancy	1,091	884	2,951	2,808
Data processing	577	509	1,749	1,537
Director and staff expenses	156	241	613	698
Excise taxes	291	184	756	529
Marketing	52	98	280	300
Legal and professional fees	381	170	1,178	872
Federal Deposit Insurance Corporation (“FDIC”) assessments	148	(4)	292	205
Business development	72	122	245	320
Other expense	927	573	2,697	1,726
Total noninterest expense	9,666	7,748	27,630	23,053
Income before provision for income taxes	5,172	4,430	13,248	12,107
PROVISION FOR INCOME TAXES	1,082	919	2,763	2,514
NET INCOME	$ 4,090	$ 3,511	$ 10,485	$ 9,593
Basic earnings per common share	$ 0.34	$ 0.30	$ 0.88	$ 0.81
Diluted earnings per common share	$ 0.34	$ 0.29	$ 0.86	$ 0.79
Weighted average number of common shares outstanding:
Basic	11,919,850	11,901,873	11,915,513	11,893,734
Diluted	12,181,272	12,188,507	12,183,845	12,193,071
Deposit Service Charges and Fees
NONINTEREST INCOME
Noninterest income	$ 824	$ 795	$ 2,224	$ 2,302
Loan Referral Fees
NONINTEREST INCOME
Noninterest income	180		1,303	1,106
BaaS Fees
NONINTEREST INCOME
Noninterest income	576	456	1,630	1,404
Mortgage Broker Fees
NONINTEREST INCOME
Noninterest income	$ 125	$ 140	$ 439	$ 336

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
NET INCOME	$ 4,090	$ 3,511	$ 10,485	$ 9,593
Securities available-for-sale
Unrealized holding (loss) gain during the period	(6)	61	99	1,396
Income tax benefit (expense) related to unrealized holding (loss) gain	1	(12)	(21)	(293)
Reclassification adjustment for net gain from sale of investment securities available for sale included in income		171		171
Income tax provision related to net gain from sale of investment securities available for sale included in income		(36)		(36)
OTHER COMPREHENSIVE (LOSS) INCOME, net of tax	(5)	184	78	1,238
COMPREHENSIVE INCOME	$ 4,085	$ 3,695	$ 10,563	$ 10,831

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 at Dec. 31, 2018	$ 109,156	$ 86,431	$ 24,021	$ (1,296)
Beginning balance, Shares at Dec. 31, 2018		11,893,203
Net income	9,593		9,593
Issuance of restricted stock awards, Shares		2,352
Forfeiture of restricted stock awards, Shares		(1,200)
Exercise of stock options	110	$ 110
Exercise of stock options, Shares		17,760
Stock-based compensation	325	$ 325
Other comprehensive income (loss)	1,238			1,238
Ending balance at Sep. 30, 2019	120,422	$ 86,866	33,614	(58)
Ending balance, Shares at Sep. 30, 2019		11,912,115
Beginning balance at Jun. 30, 2019	116,591	$ 86,730	30,103	(242)
Beginning balance, Shares at Jun. 30, 2019		11,908,185
Net income	3,511		3,511
Exercise of stock options	25	$ 25
Exercise of stock options, Shares		3,930
Stock-based compensation	111	$ 111
Other comprehensive income (loss)	184			184
Ending balance at Sep. 30, 2019	120,422	$ 86,866	33,614	(58)
Ending balance, Shares at Sep. 30, 2019		11,912,115
Beginning balance at Dec. 31, 2019	124,173	$ 86,983	37,222	(32)
Beginning balance, Shares at Dec. 31, 2019		11,913,885
Net income	10,485		10,485
Issuance of restricted stock awards, Shares		6,248
Forfeiture of restricted stock awards, Shares		(3,500)
Exercise of stock options	82	$ 82
Exercise of stock options, Shares		13,610
Stock-based compensation	414	$ 414
Other comprehensive income (loss)	78			78
Ending balance at Sep. 30, 2020	135,232	$ 87,479	47,707	46
Ending balance, Shares at Sep. 30, 2020		11,930,243
Beginning balance at Jun. 30, 2020	130,977	$ 87,309	43,617	51
Beginning balance, Shares at Jun. 30, 2020		11,926,263
Net income	4,090		4,090
Exercise of stock options	26	$ 26
Exercise of stock options, Shares		3,980
Stock-based compensation	144	$ 144
Other comprehensive income (loss)	(5)			(5)
Ending balance at Sep. 30, 2020	$ 135,232	$ 87,479	$ 47,707	$ 46
Ending balance, Shares at Sep. 30, 2020		11,930,243

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 10,485,000	$ 9,593,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	5,708,000	1,724,000
Depreciation and amortization	965,000	907,000
Loss on disposition of fixed assets	12,000	5,000
Decrease in operating lease right-of-use assets	1,129,000	756,000
Decrease in operating lease liabilities	(1,115,000)	(702,000)
Gain on sales of loans	(47,000)	(490,000)
Gain on sale of securities, net		(171,000)
Net premium amortization (discount accretion) on investment securities	36,000	(36,000)
Stock-based compensation	414,000	325,000
Increase in bank-owned life insurance value	(149,000)	(144,000)
Deferred tax benefit		(18,000)
Net change in other assets and liabilities	(5,234,000)	(2,413,000)
Total adjustments	1,719,000	(257,000)
Net cash provided by operating activities	12,204,000	9,336,000
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in interest earning deposits with other banks	(84,130,000)	(21,007,000)
Purchase of investment securities available for sale	(14,989,000)	(19,948,000)
Purchase of investment securities held-to-maturity		(3,182,000)
Proceeds from sale of available for sale securities	0	30,026,000
Change in other investments, net	(1,446,000)	(639,000)
Principal paydowns of investment securities available-for-sale	35,000	41,000
Principal paydowns of investment securities held-to-maturity	945,000	64,000
Maturities and calls of investment securities available-for-sale	23,000,000
Purchase of participation loans		(7,238,000)
Proceeds from sale of loans	694,000	1,581,000
Increase in loans receivable, net	(571,065,000)	(100,309,000)
Purchases of premises and equipment, net	(4,750,000)	(912,000)
Net cash used by investing activities	(651,706,000)	(121,523,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in demand deposits, NOW and money market, and savings	409,017,000	124,363,000
Net decrease in time deposits	(16,965,000)	(5,728,000)
Net repayments from short term FHLB borrowing	(10,000,000)
Net advances from long term FHLB borrowing	24,999,000
Net advances from Paycheck Protection Program Liquidity Facility	202,595,000
Proceeds from exercise of stock options	82,000	110,000
Net cash provided by financing activities	609,728,000	118,745,000
NET CHANGE IN CASH, DUE FROM BANKS AND RESTRICTED CASH	(29,774,000)	6,558,000
CASH, DUE FROM BANKS AND RESTRICTED CASH, beginning of year	43,910,000	40,319,000
CASH, DUE FROM BANKS AND RESTRICTED CASH, end of quarter	14,136,000	46,877,000
SUPPLEMENTAL SCHEDULE OF OPERATING AND INVESTING ACTIVITIES
Interest paid	4,314,000	4,849,000
Income taxes paid	4,985,000	2,940,000
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS
Fair value adjustment of securities available-for-sale, gross	$ 99,000	1,568,000
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		9,421,000
Operating lease liabilities		$ 9,591,000

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Note 1 - 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 and Federal Reserve System (“Federal Reserve”) state member bank. Arlington Olympic LLC was formed in 2019 and owns the Company’s Arlington branch, which the Bank leases from the LLC. The Company provides a full range of banking services to small and medium-sized businesses, professionals, and individuals throughout the greater Puget Sound area through its 15 branches in Snohomish, Island, and King Counties, the Internet, and its mobile banking application. The Company opened its 15 th 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 12, 2020. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for future periods. 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 and the Bank. 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. Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2020 for potential recognition or disclosure. To the extent any events and conditions exist, disclosures are made regarding the nature of events and the estimated financial effects for those events and conditions. The Company is not aware of any subsequent events which would require recognition or disclosure in the consolidated financial statements. Reclassifications - Certain amounts reported in prior quarters' consolidated financial statements 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, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Recent Accounting Standards	Note 2 - Recent accounting standards Recent Accounting Guidance In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (the “agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by the COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, Receivables – Troubled Debt Restructurings by Creditors . 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

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]
Investment Securities	Note 3 - Investment Securities The amortized cost and fair values of investment securities at the date indicated are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) September 30, 2020 Available-for-sale U.S. Treasury securities $ 19,996 $ 45 $ - $ 20,041 U.S. Agency collateralized mortgage obligations 108 5 - 113 U.S. Agency residential mortgage-backed securities 11 - - 11 Municipal bonds 255 8 - 263 Total available-for-sale securities 20,370 58 - 20,428 Held-to-maturity U.S. Agency residential mortgage-backed securities 3,354 116 - 3,470 Total investment securities $ 23,724 $ 174 $ - $ 23,898 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) December 31, 2019 Available-for-sale U.S. Treasury securities $ 24,988 $ 1 $ (44 ) $ 24,945 U.S. Government agencies 3,000 - (1 ) 2,999 U.S. Agency collateralized mortgage obligations 129 - - 129 U.S. Agency residential mortgage-backed securities 27 - - 27 Municipal bonds 257 3 - 260 Total available-for-sale securities 28,401 4 (45 ) 28,360 Held-to-maturity U.S. Agency residential mortgage-backed securities 4,350 - (21 ) 4,329 Total investment securities $ 32,751 $ 4 $ (66 ) $ 32,689 The amortized cost and fair value of debt securities at September 30, 2020, 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 Cost Fair Value Amortized Cost Fair Value (dollars in thousands) September 30, 2020 Amounts maturing in One year or less $ 19,996 $ 20,041 $ - $ - After one year through five years 255 263 - - 20,251 20,304 - - U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations 119 124 3,354 3,470 $ 20,370 $ 20,428 $ 3,354 $ 3,470 Investment securities with carrying values of $21,958,000 and $16,843,000 at September 30, 2020 and December 31, 2019, respectively, were pledged to secure public deposits and for other purposes as required or permitted by law. There were no sales of available for sale securities during the three or nine months ended September 30, 2020. There were five securities sold totaling $30.0 There were no gross unrealized losses as of September 30, 2020. Information pertaining to securities with gross unrealized losses at the date indicated, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in thousands) December 31, 2019 Available-for-sale U.S. Treasury securities $ 9,994 $ (3 ) $ 4,956 $ (41 ) $ 14,950 $ (44 ) U.S. Government agencies - - 2,999 (1 ) 2,999 (1 ) Total available-for-sale securities 9,994 (3 ) 7,955 (42 ) 17,949 (45 ) Held-to-maturity U.S. Agency residential mortgage-backed securities 3,140 (14 ) 1,189 (7 ) 4,329 (21 ) Total investment securities $ 13,134 $ (17 ) $ 9,144 $ (49 ) $ 22,278 $ (66 ) At September 30, 2020 and December 31, 2019, there were zero and six securities in an unrealized loss position, respectively. Unrealized losses have not been recognized into income because management does not intend to sell and does not expect that it will be required to sell the investments. The decline is largely due to changes in market conditions and interest rates, rather than credit quality. The fair value is expected to recover as the underlying securities in the portfolio approach maturity date and market conditions improve. The Company did not consider these securities to be other than temporarily impaired at December 31, 2019.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Loans and Allowance for Loan Losses	Note 4 - Loans and Allowance for Loan Losses The composition of the loan portfolio is as follows as of the periods indicated: September 30, December 31, 2020 2019 Commercial and industrial loans $ 589,204 $ 111,401 Real estate loans: Construction, land, and land development 100,955 97,034 Residential real estate 121,147 115,011 Commercial real estate 705,186 613,398 Consumer and other loans 3,927 4,214 Gross loans receivable 1,520,419 941,058 Net deferred origination fees and premiums (11,030 ) (1,955 ) Loans receivable $ 1,509,389 $ 939,103 Included in consumer and other loans are overdrafts of $11,000 and $26,000 at September 30, 2020 and December 31, 2019, respectively. The Company has pledged loans totaling $378,645,000 and $163,522,000 at September 30, 2020 and December 31, 2019, respectively, for borrowing lines at the FHLB and Federal Reserve Bank (“FRB”). The balance of Small Business Administration (“SBA”) and United States Department of Agriculture (“USDA”) loans was $487,536,000 and $36,592,000 at September 30, 2020 and December 31, 2019, respectively. Paycheck Protection Plan (“PPP”) loans totaling $452,846,000 at September 30, 2020 are included in the commercial and industrial loans balance. Net deferred origination fees and premiums include $8,586,000 of net fees from PPP loans as of September 30, 2020. Included in these totals are SBA and USDA loans serviced for others amounting to $20,700,000 and $21,498,000 at September 30, 2020 and December 31, 2019, respectively . The Company, at times, purchases individual loans at fair value as of the acquisition date. Purchased loans with remaining balances totaled $20,920,000 and $32,937,000 as of September 30, 2020 and December 31, 2019, respectively. Unamortized premiums totaled $324,000 and $527,000 as of September 30, 2020 and December 31, 2019, respectively, and are amortized into interest income over the life of the loans. The Company has purchased participation loans with remaining balances totaling $41,465,000 and $31,352,000 as of September 30, 2020 and December 31, 2019, respectively. 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. Loan types include revolving lines of credit, term loans, and loans secured by liquid collateral such as cash deposits or marketable securities. The Company also 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. Also included in this category are SBA 7(a) loans, which allow small business owners to apply for financial assistance via the PPP as prescribed in the CARES Act. These loans have a contractual rate of 1.0%, with maturity terms of two to five years, are unsecured, 100% guaranteed and loan proceeds may be forgiven by the U.S. Government / SBA if used for certain purposes. To bolster the effectiveness of the SBA’s PPP loan program, the Federal Reserve is supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses. The Paycheck Protection Program Liquidity Facility extends credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value. The interest rate is 0.35% and as PPP loans are paid down, the borrowing line must also be paid down. 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 loans include various types of loans for which the Company holds real property as collateral. Included in this segment are first lien single family loans, which are occasionally purchased to diversify the Company’s 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. 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. 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 Company originates a limited number of consumer loans, generally for banking customers only, which consist primarily of home equity lines of credit, saving account secured loans, and auto loans. 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. The following table illustrates an age analysis of past due loans as of the dates indicated: 30-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Recorded Investment 90 Days or More Past Due and Still Accruing (dollars in thousands) September 30, 2020 Commercial and industrial loans $ - $ 625 $ 625 $ 588,579 $ 589,204 $ - Real estate loans: Construction, land and land development - 3,269 3,269 97,686 100,955 - Residential real estate - 61 61 121,086 121,147 - Commercial real estate - 405 405 704,781 705,186 - Consumer and other loans - - - 3,927 3,927 - $ - $ 4,360 $ 4,360 $ 1,516,059 $ 1,520,419 $ - Less net deferred origination fees and premiums (11,030 ) Loans receivable $ 1,509,389 30-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Recorded Investment 90 Days or More Past Due and Still Accruing (dollars in thousands) December 31, 2019 Commercial and industrial loans $ 143 $ 965 $ 1,108 $ 110,293 $ 111,401 $ - Real estate loans: Construction, land and land development - - - 97,034 97,034 - Residential real estate - 65 65 114,946 115,011 - Commercial real estate 417 - 417 612,981 613,398 - Consumer and other loans 4 - 4 4,210 4,214 - $ 564 $ 1,030 $ 1,594 $ 939,464 941,058 $ - Less net deferred origination fees and premiums (1,955 ) Loans receivable $ 939,103 A summary of information pertaining to impaired loans as of the period indicated: Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance (dollars in thousands) September 30, 2020 Commercial and industrial loans $ 922 $ 625 $ - $ 625 $ - Real estate loans: Construction, land and land development 3,269 3,269 - 3,269 - Residential real estate 190 178 - 178 - Commercial real estate 413 405 - 405 - Total $ 4,794 $ 4,477 $ - $ 4,477 $ - December 31, 2019 Commercial and industrial loans $ 1,431 $ 965 $ - $ 965 $ - Real estate loans: Residential real estate 73 65 - 65 - Consumer 2 - 2 2 2 Total $ 1,506 $ 1,030 $ 2 $ 1,032 $ 2 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, 2020 and 2019: Three Months Ended September 30, 2020 September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 657 $ - $ 1,406 $ - Real estate loans: Construction, land and land development 3,270 - - - Residential real estate 151 - 68 - Commercial real estate 409 - - - Total $ 4,487 $ - $ 1,474 $ - Nine Months Ended September 30, 2020 September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 748 $ - $ 933 $ - Real estate loans: Construction, land and land development 1,666 - - - Residential real estate 153 - 71 - Commercial real estate 204 - 315 - Total $ 2,771 $ - $ 1,319 $ - 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 or nine months ended September 30, 2020 and September 30, 2019 that qualified as troubled debt restructurings (“TDRs”). The Company has no commitments to loan additional funds to borrowers whose loans were classified as TDRs at September 30, 2020, as there were no outstanding TDRs at September 30, 2020. The Company is in contact with borrowers with existing loans that have been impacted by COVID-19. The Company has modified payments for loan customers during this uncertain time to help alleviate financial hardships. There are 44 loans, representing $52.5 million in outstanding loans, and $1.4 million in unused commitments, that remain on deferred or modified payment status as of September 30, 2020. In accordance with GAAP and interagency guidance issued on March 22, 2020, these short-term modifications, six months or less, made on a good faith basis in response to COVID-19 to borrowers that were current prior to any relief, are not considered troubled debt restructurings. 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, 2020 2019 (dollars in thousands) Commercial and industrial loans $ 625 $ 965 Real estate loans: Construction, land and land development 3,269 - Residential real estate 178 65 Commercial real estate 405 - Total nonaccrual loans $ 4,477 $ 1,030 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. 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. 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. The Company also classifies some loans as Watch or Other Loans Especially Mentioned (“OLEM”). Loans classified as Watch are performing assets and classified as pass credits 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. Loans by credit quality risk rating are as follows as of the periods indicated: Pass Other Loans Especially Mentioned Sub- Standard Doubtful Total (dollars in thousands) September 30, 2020 Commercial and industrial loans $ 578,128 $ 9,594 $ 1,482 $ - $ 589,204 Real estate loans: Construction, land, and land development 97,686 - 3,269 - 100,955 Residential real estate 120,559 410 178 - 121,147 Commercial real estate 688,621 16,160 405 - 705,186 Consumer and other loans 3,927 - - - 3,927 $ 1,488,921 $ 26,164 $ 5,334 $ - 1,520,419 Less net deferred origination fees (11,030 ) Loans receivable $ 1,509,389 December 31, 2019 Commercial and industrial loans $ 104,911 $ 4,740 $ 1,750 $ - $ 111,401 Real estate loans: Construction, land, and land development 97,034 - - - 97,034 Residential real estate 114,823 123 65 - 115,011 Commercial real estate 608,773 4,625 - - 613,398 Consumer and other loans 4,212 - 2 4,214 $ 929,753 $ 9,488 $ 1,817 $ - 941,058 Less net deferred origination fees (1,955 ) Loans receivable $ 939,103 Allowance for Loan Losses The Company’s allowance for loan losses (“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 is prepared using the information provided by the Company’s credit review process together with economic information gathered from published sources. Qualitative factors that are included in the analysis include industry data and data from peer institutions. 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 Company’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 $452.8 million in PPP loans as of September 30, 2020 are 100% guaranteed and were not subject to the allowance analysis or assigned an allowance. The Company’s provision for credit losses of $2.2 million and $5.7 million during the three and nine months ended September 30, 2020, respectively, is related to an increase in qualitative factors primarily related to the uncertainties in the economic outlook from the COVID-19 pandemic and growth in the loan portfolio. The Company is not required to implement the provisions of the Current Expected Credit Loss (“CECL”) accounting standard until January 1, 2023 and is continuing to account for the allowance for loan losses under the incurred loss model. 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, 2020: Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) Three Months Ended September 30, 2020 ALLL balance, June 30, 2020 $ 2,853 $ 3,378 $ 2,669 $ 5,235 $ 140 $ 572 $ 14,847 Provision for loan losses or (recapture) 27 234 222 1,929 (9 ) (203 ) 2,200 2,880 3,612 2,891 7,164 131 369 17,047 Loans charged-off - - - - (2 ) - (2 ) Recoveries of loans previously charged-off - - - - 1 - 1 Net (charge-offs) recoveries - - - - (1 ) - (1 ) ALLL balance, September 30, 2020 $ 2,880 $ 3,612 $ 2,891 $ 7,164 $ 130 $ 369 $ 17,046 Nine Months Ended September 30, 2020 ALLL balance, December 31, 2019 $ 2,366 $ 2,745 $ 2,069 $ 3,126 $ 104 $ 1,060 $ 11,470 Provision for loan losses or (recapture) 639 867 822 4,038 33 (691 ) 5,708 3,005 3,612 2,891 7,164 137 369 17,178 Loans charged-off (130 ) - - - (9 ) - (139 ) Recoveries of loans previously charged-off 5 - - - 2 - 7 Net (charge-offs) recoveries (125 ) - - - (7 ) - (132 ) ALLL balance, September 30, 2020 $ 2,880 $ 3,612 $ 2,891 $ 7,164 $ 130 $ 369 $ 17,046 As of September 30, 2020 ALLL amounts allocated to Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 2,880 3,612 2,891 7,164 130 369 17,046 ALLL balance September 30, 2020 $ 2,880 $ 3,612 $ 2,891 $ 7,164 $ 130 $ 369 $ 17,046 Loans individually evaluated for impairment $ 625 $ 3,269 $ 178 $ 405 $ - $ 4,477 Loans collectively evaluated for impairment 588,579 97,686 120,969 704,781 3,927 1,515,942 Loan balance, September 30, 2020 $ 589,204 $ 100,955 $ 121,147 $ 705,186 $ 3,927 $ 1,520,419 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 , 2019 : Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) Three months ended September 30, 2019 Balance, June 30, 2019 $ 2,482 $ 2,386 $ 1,814 $ 2,845 $ 67 $ 849 $ 10,443 Provision for loan losses or (recapture) 195 136 140 107 22 37 637 2,677 2,522 1,954 2,952 89 886 11,080 Loans charged-off (118 ) (75 ) - - (3 ) - (196 ) Recoveries of loans previously charged-off 2 - - - 2 - 4 Net (charge-offs) recoveries (116 ) (75 ) - - (1 ) - (192 ) Balance, September 30, 2019 $ 2,561 $ 2,447 $ 1,954 $ 2,952 $ 88 $ 886 $ 10,888 Nine months ended September 30, 2019 Balance, December 31, 2018 $ 2,039 $ 1,806 $ 1,647 $ 2,648 $ 77 $ 1,190 $ 9,407 Provision for loan losses or (recapture) 643 716 307 333 29 (304 ) 1,724 2,682 2,522 1,954 2,981 106 886 11,131 Loans charged-off (125 ) (75 ) - (29 ) (23 ) - (252 ) Recoveries of loans previously charged-off 4 - - - 5 - 9 Net (charge-offs) recoveries (121 ) (75 ) - (29 ) (18 ) - (243 ) Balance, September 30, 2019 $ 2,561 $ 2,447 $ 1,954 $ 2,952 $ 88 $ 886 $ 10,888 As of September 30, 2019 ALLL amounts allocated to Individually evaluated for impairment $ 230 $ - $ - $ - $ - $ - $ 230 Collectively evaluated for impairment 2,331 2,447 1,954 2,952 88 886 10,658 ALLL balance, September 30, 2019 $ 2,561 $ 2,447 $ 1,954 $ 2,952 $ 88 $ 886 $ 10,888 Loans individually evaluated for impairment $ 1,233 $ - $ 67 $ - $ - $ 1,300 Loans collectively evaluated for impairment 104,401 86,919 100,751 578,607 3,720 874,398 Loan balance, September 30, 2019 $ 105,634 $ 86,919 $ 100,818 $ 578,607 $ 3,720 $ 875,698 The following table summarizes the allocation of the ALLL attributed to various segments in the loan portfolio as of December 31, 2019. Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) As of December 31, 2019 ALLL amounts allocated to Individually evaluated for impairment $ - $ - $ - $ - $ 2 $ - $ 2 Collectively evaluated for impairment 2,366 2,745 2,069 3,126 102 1,060 11,468 ALLL balance, December 31, 2019 $ 2,366 $ 2,745 $ 2,069 $ 3,126 $ 104 $ 1,060 $ 11,470 Loans individually evaluated for impairment $ 965 $ - $ 65 $ - $ 2 $ 1,032 Loans collectively evaluated for impairment 110,436 97,034 114,946 613,398 4,212 940,026 Loan balance, December 31, 2019 $ 111,401 $ 97,034 $ 115,011 $ 613,398 $ 4,214 $ 941,058

Deposits

Deposits	9 Months Ended
	Sep. 30, 2020
Deposits [Abstract]
Deposits	Note 5 - Deposits The composition of consolidated deposits consisted of the following at the periods indicated: September 30, December 31, 2020 2019 (dollars in thousands) Demand, noninterest bearing $ 570,664 $ 371,243 NOW and money market 624,891 437,908 Savings 74,694 53,365 BaaS-brokered deposits 24,870 23,586 Time deposits less than $250,000 41,676 51,644 Time deposits $250,000 and over 23,216 30,213 Total deposits $ 1,360,011 $ 967,959 The following table presents the maturity distribution of time deposits as of September 30, 2020 (dollars in thousands): Twelve months $ 52,266 One to two years 8,013 Two to three years 2,531 Three to four years 974 Four to five years 1,108 $ 64,892

Leases

Leases	9 Months Ended
	Sep. 30, 2020
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. The Company adopted the provisions of ASU 2016-02 (Topic 842) on January 1, 2019. 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. Operating lease ROU assets and operating lease liabilities were recognized in the Company’s Unaudited Consolidated Balance Sheets for leases that existed at the adoption date, based on the present value of lease payments over the remaining lease term. ROU assets were further adjusted for lease incentives. Operating leases entered into after the adoption date were recognized as an operating lease ROU asset and operating lease liability at the commencement date 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. There were no new leases during the period. 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. As of September 30, 2020, the Company does not have any leases that have not yet commenced. At September 30, 2020, lease expiration dates ranged from six months to 25 years, with additional renewal options on certain leases typically ranging from 5 to 10 years. At September 30, 2020, the weighted average remaining lease term for the Company’s operating leases was 10.5 years. Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $461,000 and $342,000, respectively, for the three months ended September 30, 2020 and 2019 and $1.1 million for both the nine months ended September 30, 2020 and 2019. 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, 2020: September 30, (dollars in thousands) 2020 October 1, 2020 to December 31, 2020 $ 318 2021 1,254 2022 1,258 2023 1,269 2024 864 2025 and thereafter 3,922 Total lease payments 8,885 Less: amounts representing interest 1,306 Present value of lease liabilities $ 7,579 The following table presents the components of total lease expense and operating cash flows for the nine months ended September 30, 2020: September 30, (dollars in thousands) 2020 Lease expense: Operating lease expense $ 983 Variable lease expense 239 Total lease expense (1) $ 1,222 Cash paid: Cash paid reducing operating lease liabilities $ 1,206 (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, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 7 - Stock-Based Compensation Stock Options and Restricted Stock On April 30, 2018, the Company’s shareholders approved the Coastal Financial Corporation 2018 Omnibus Incentive Plan (“2018 Plan”). The 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. The 2018 Plan replaces both the Company’s 2006 Stock Option and Equity Compensation Plan (“2006 Plan”) and its Directors’ Stock Bonus Plan. Existing awards under the previous plans will vest under the terms granted and no further awards will be made under these plans. Shares available to be granted under the 2018 Plan totaled 275,323 at September 30, 2020. Stock Option Awards In January 2019, the Company granted 26,737 nonqualified stock options under the 2018 Plan to an employee, which vest ratably over 10 years. In January 2019, the Company also granted 99,100 qualified stock options under the 2018 Plan to employees, which vest ratably over 10 years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table. 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. The following assumptions were used to estimate the value of options granted under the 2018 Plan as applicable in the period indicated. There were no new stock options granted in the nine months ended September 30, 2020: Nine months ended September 30, 2019 Expected term 10.0 years Expected stock price volatility 48.79 % Risk-free interest rate 2.74 % Expected dividends Zero Weighted average grant date fair value $ 9.22 A summary of stock option activity under the 2018 Plan and 2006 Plan during the nine months ended September 30, 2020: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (dollars in thousands, except per share amounts) Outstanding at December 31, 2019 784,217 $ 7.73 5.95 $ 6,587 Granted - - - Exercised (13,610 ) 6.07 - Forfeited or expired (1,000 ) 14.91 - Outstanding at September 30, 2020 769,607 $ 7.75 5.21 $ 3,825 Vested or expected to vest at September 30, 2020 769,607 $ 7.75 5.21 $ 3,825 Exercisable at September 30, 2020 333,933 $ 6.43 3.89 $ 1,984 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, 2020 was $28,000 and $121,000, respectively, and was $35,000 and $170,000 for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, there was $2.0 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 weighted-average period of approximately 6.8 years. Compensation expense recorded related to stock options was $94,000 and $281,000 for the three and nine months ended September 30, 2020, respectively, and $101,000 and $295,000 for the three and nine months ended September 30, 2019, respectively. Restricted Stock Units In February 2020, the Company granted 78,756 restricted stock units under the 2018 Plan to employees, which vest ratably over 10 years The fair value of restricted stock units 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 units are nonparticipating securities. As of September 30, 2020, there was $1.3 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 9.2 years. Compensation expense recorded related to restricted stock units was $39,000 and $96,000 for the three and nine months ended September 30, 2020, respectively. There were no restricted stock units and no compensation expense recorded related to restricted stock units for the three and nine months ended September 30, 2019. A summary of the Company’s nonvested shares at September 30, 2020 and changes during the nine-month period is presented below: Nonvested shares Shares Weighted- Average Grant Date Fair Value Total or Aggregate Intrinsic Value (dollars in thousands, except per share amounts) Nonvested shares at December 31, 2019 - $ - $ - Granted 87,148 17.47 Forfeited (2,808 ) 17.81 Vested - - Nonvested shares at September 30, 2020 84,340 $ 17.47 $ - Restricted Stock Awards Employees In February 2020, there were 4,000 shares granted to an employee at an estimated fair value of $17.81 per share, vesting over eight years. 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, 2020, there was $65,000 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 7.3 years. Compensation expense recorded related to restricted stock awards was $2,000 and $5,000 for the three and nine months ended September 30, 2020, respectively, and was $2,000 and $5,000 for the three and nine months ended September 30, 2019, respectively. Director’s Stock Bonus The Company adopted and subsequently amended the Director’s Stock Bonus Plan (“Bonus Plan”). The Bonus Plan would have expired on May 31, 2018 but was replaced on April 30, 2018, when the shareholders approved the 2018 Plan. Stock is granted to directors who attended at least 75% of the scheduled board meetings during the prior year. Grants cliff vest over two years from date awarded, contingent on the director still being a director of the Company. During the vesting period, the grants are considered participating securities. Awards previously granted under the Bonus Plan will vest under the term granted. Under the 2018 Plan, eligible directors are granted stock with a total market value of $5,000. Directors unable to receive stock will receive cash in lieu upon completion of the vesting period. Cash awards are recognized over the vesting period and recorded in other liabilities until paid. In February 2020, there were 2,248 shares granted to eight directors at an estimated fair value of $17.81 per share. In January 2019, there were 2,352 shares granted to seven directors at an estimated fair value of $14.91 per share. Compensation expense recorded related to the 2018 Plan totaled $8,000 and $26,000 for the three and nine months ended September 30, 2020, respectively, and $8,000 and $25,000 for the three and nine months ended September 30, 2019, respectively. A summary of the Company’s nonvested shares at September 30, 2020 and changes during the nine-month period is presented below: Nonvested shares Shares Weighted- Average Grant Date Fair Value Total or Aggregate Intrinsic Value (dollars in thousands, except per share amounts) Nonvested shares at December 31, 2019 10,257 $ 11.71 $ 48,864 Granted 6,248 17.81 Forfeited (3,500 ) 15.35 Vested (5,022 ) 7.23 Nonvested shares at September 30, 2020 7,983 $ 17.08 $ -

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
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, 2020 Fair Value Measurements Using Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets Cash and due from banks $ 14,136 $ 14,136 $ 14,136 $ - $ - Interest earning deposits with other banks 168,034 168,034 168,034 - - Investment securities 23,782 23,897 20,040 3,857 - Other investments 5,951 5,951 - 5,201 750 Loans receivable 1,509,389 1,494,299 - - 1,494,299 Accrued interest receivable 8,216 8,216 - 8,216 - Financial liabilities Deposits $ 1,360,011 1,360,349 $ - $ 1,360,349 $ - FHLB advances 24,999 24,936 - 24,936 - Paycheck Protection Program Liquidity Facility 202,595 202,595 202,595 Subordinated debt 9,989 9,895 - 9,895 - Junior subordinated debentures 3,584 3,057 - 3,057 - Accrued interest payable 481 481 - 481 - December 31, 2019 Fair Value Measurements Using Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets Cash and due from banks $ 16,555 $ 16,555 $ 16,555 $ - $ - Interest earning deposits with other banks 111,259 111,259 111,259 - - Investment securities 32,710 32,689 24,945 7,744 - Other investments 4,505 4,505 - 4,005 500 Loans receivable, net 927,633 922,046 - - 922,046 Accrued interest receivable 2,980 2,980 - 2,980 - Financial liabilities Deposits $ 967,959 $ 967,804 $ - $ 967,804 $ - FHLB advances 10,000 10,000 - 10,000 - Subordinated debt 9,979 9,879 - 9,879 - Junior subordinated debentures 3,583 3,214 - 3,214 - Accrued interest payable 308 308 - 308 - 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 Fair Value (dollars in thousands) September 30, 2020 Available-for-sale U.S. Treasury securities $ 20,041 $ - $ - $ 20,041 U.S. Agency collateralized mortgage obligations - 113 - 113 U.S. Agency residential mortgage-backed securities - 11 - 11 Municipals - 263 - 263 $ 20,041 $ 387 $ - $ 20,428 December 31, 2019 Available-for-sale U.S. Treasury securities $ 24,945 $ - $ - $ 24,945 U.S. Government agencies - 2,999 - 2,999 U.S. Agency collateralized mortgage obligations - 129 - 129 U.S. Agency residential mortgage-backed securities - 27 - 27 Municipals - 260 - 260 $ 24,945 $ 3,415 $ - $ 28,360 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, 2020 and December 31, 2019. 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. Assets measured at fair value using significant unobservable inputs (Level 3) 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: Valuation Technique Unobservable Inputs September 30, 2020 Weighted Average Rate December Weighted Average Rate Impaired loans Collateral valuations Discount to appraised value 8 % 10 % 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 Fair Value (dollars in thousands) September 30, 2020 Impaired loans $ - $ - $ 4,477 $ 4,477 Total $ - $ - $ 4,477 $ 4,477 December 31, 2019 Impaired loans $ - $ - $ 1,030 $ 1,030 Total $ - $ - $ 1,030 $ 1,030 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.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Sep. 30, 2020
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, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (dollars in thousands, except share data) Net Income $ 4,090 $ 3,511 $ 10,485 $ 9,593 Basic weighted average number common shares outstanding 11,919,850 11,901,873 11,915,513 11,893,734 Dilutive effect of share-based compensation 261,422 286,634 268,332 299,337 Diluted weighted average number common shares outstanding 12,181,272 12,188,507 12,183,845 12,193,071 Basic earnings per share $ 0.34 $ 0.30 $ 0.88 $ 0.81 Diluted earnings per share $ 0.34 $ 0.29 $ 0.86 $ 0.79 Antidilutive stock options and restricted stock outstanding 224,177 138,689 224,177 138,689 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.

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
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 and Federal Reserve System (“Federal Reserve”) state member bank. Arlington Olympic LLC was formed in 2019 and owns the Company’s Arlington branch, which the Bank leases from the LLC. The Company provides a full range of banking services to small and medium-sized businesses, professionals, and individuals throughout the greater Puget Sound area through its 15 branches in Snohomish, Island, and King Counties, the Internet, and its mobile banking application. The Company opened its 15 th
Financial Statement Preparation	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 12, 2020. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for future periods. 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	Principles of consolidation - The consolidated financial statements include the accounts of the Company and the Bank. 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.
Subsequent Events	Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2020 for potential recognition or disclosure. To the extent any events and conditions exist, disclosures are made regarding the nature of events and the estimated financial effects for those events and conditions. The Company is not aware of any subsequent events which would require recognition or disclosure in the consolidated financial statements.
Reclassifications	Reclassifications - Certain amounts reported in prior quarters' consolidated financial statements have been reclassified to conform to the current presentation with no effect on stockholders’ equity or net income.
Recent Accounting Guidance	Recent Accounting Guidance In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (the “agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by the COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, Receivables – Troubled Debt Restructurings by Creditors .
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

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]
Amortized Cost and Fair Values of Investment Securities	The amortized cost and fair values of investment securities at the date indicated are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) September 30, 2020 Available-for-sale U.S. Treasury securities $ 19,996 $ 45 $ - $ 20,041 U.S. Agency collateralized mortgage obligations 108 5 - 113 U.S. Agency residential mortgage-backed securities 11 - - 11 Municipal bonds 255 8 - 263 Total available-for-sale securities 20,370 58 - 20,428 Held-to-maturity U.S. Agency residential mortgage-backed securities 3,354 116 - 3,470 Total investment securities $ 23,724 $ 174 $ - $ 23,898 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) December 31, 2019 Available-for-sale U.S. Treasury securities $ 24,988 $ 1 $ (44 ) $ 24,945 U.S. Government agencies 3,000 - (1 ) 2,999 U.S. Agency collateralized mortgage obligations 129 - - 129 U.S. Agency residential mortgage-backed securities 27 - - 27 Municipal bonds 257 3 - 260 Total available-for-sale securities 28,401 4 (45 ) 28,360 Held-to-maturity U.S. Agency residential mortgage-backed securities 4,350 - (21 ) 4,329 Total investment securities $ 32,751 $ 4 $ (66 ) $ 32,689
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity	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 Cost Fair Value Amortized Cost Fair Value (dollars in thousands) September 30, 2020 Amounts maturing in One year or less $ 19,996 $ 20,041 $ - $ - After one year through five years 255 263 - - 20,251 20,304 - - U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations 119 124 3,354 3,470 $ 20,370 $ 20,428 $ 3,354 $ 3,470
Summary of Investment Securities Continuous Unrealized Loss Position	Information pertaining to securities with gross unrealized losses at the date indicated, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in thousands) December 31, 2019 Available-for-sale U.S. Treasury securities $ 9,994 $ (3 ) $ 4,956 $ (41 ) $ 14,950 $ (44 ) U.S. Government agencies - - 2,999 (1 ) 2,999 (1 ) Total available-for-sale securities 9,994 (3 ) 7,955 (42 ) 17,949 (45 ) Held-to-maturity U.S. Agency residential mortgage-backed securities 3,140 (14 ) 1,189 (7 ) 4,329 (21 ) Total investment securities $ 13,134 $ (17 ) $ 9,144 $ (49 ) $ 22,278 $ (66 )

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
Composition of Loan Portfolio	The composition of the loan portfolio is as follows as of the periods indicated: September 30, December 31, 2020 2019 Commercial and industrial loans $ 589,204 $ 111,401 Real estate loans: Construction, land, and land development 100,955 97,034 Residential real estate 121,147 115,011 Commercial real estate 705,186 613,398 Consumer and other loans 3,927 4,214 Gross loans receivable 1,520,419 941,058 Net deferred origination fees and premiums (11,030 ) (1,955 ) Loans receivable $ 1,509,389 $ 939,103
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 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Recorded Investment 90 Days or More Past Due and Still Accruing (dollars in thousands) September 30, 2020 Commercial and industrial loans $ - $ 625 $ 625 $ 588,579 $ 589,204 $ - Real estate loans: Construction, land and land development - 3,269 3,269 97,686 100,955 - Residential real estate - 61 61 121,086 121,147 - Commercial real estate - 405 405 704,781 705,186 - Consumer and other loans - - - 3,927 3,927 - $ - $ 4,360 $ 4,360 $ 1,516,059 $ 1,520,419 $ - Less net deferred origination fees and premiums (11,030 ) Loans receivable $ 1,509,389 30-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Recorded Investment 90 Days or More Past Due and Still Accruing (dollars in thousands) December 31, 2019 Commercial and industrial loans $ 143 $ 965 $ 1,108 $ 110,293 $ 111,401 $ - Real estate loans: Construction, land and land development - - - 97,034 97,034 - Residential real estate - 65 65 114,946 115,011 - Commercial real estate 417 - 417 612,981 613,398 - Consumer and other loans 4 - 4 4,210 4,214 - $ 564 $ 1,030 $ 1,594 $ 939,464 941,058 $ - Less net deferred origination fees and premiums (1,955 ) Loans receivable $ 939,103
Summary of Information Pertaining to Impaired Loans	A summary of information pertaining to impaired loans as of the period indicated: Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance (dollars in thousands) September 30, 2020 Commercial and industrial loans $ 922 $ 625 $ - $ 625 $ - Real estate loans: Construction, land and land development 3,269 3,269 - 3,269 - Residential real estate 190 178 - 178 - Commercial real estate 413 405 - 405 - Total $ 4,794 $ 4,477 $ - $ 4,477 $ - December 31, 2019 Commercial and industrial loans $ 1,431 $ 965 $ - $ 965 $ - Real estate loans: Residential real estate 73 65 - 65 - Consumer 2 - 2 2 2 Total $ 1,506 $ 1,030 $ 2 $ 1,032 $ 2
Summary of Our 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, 2020 and 2019: Three Months Ended September 30, 2020 September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 657 $ - $ 1,406 $ - Real estate loans: Construction, land and land development 3,270 - - - Residential real estate 151 - 68 - Commercial real estate 409 - - - Total $ 4,487 $ - $ 1,474 $ - Nine Months Ended September 30, 2020 September 30, 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 748 $ - $ 933 $ - Real estate loans: Construction, land and land development 1,666 - - - Residential real estate 153 - 71 - Commercial real estate 204 - 315 - Total $ 2,771 $ - $ 1,319 $ -
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, 2020 2019 (dollars in thousands) Commercial and industrial loans $ 625 $ 965 Real estate loans: Construction, land and land development 3,269 - Residential real estate 178 65 Commercial real estate 405 - Total nonaccrual loans $ 4,477 $ 1,030
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 Especially Mentioned Sub- Standard Doubtful Total (dollars in thousands) September 30, 2020 Commercial and industrial loans $ 578,128 $ 9,594 $ 1,482 $ - $ 589,204 Real estate loans: Construction, land, and land development 97,686 - 3,269 - 100,955 Residential real estate 120,559 410 178 - 121,147 Commercial real estate 688,621 16,160 405 - 705,186 Consumer and other loans 3,927 - - - 3,927 $ 1,488,921 $ 26,164 $ 5,334 $ - 1,520,419 Less net deferred origination fees (11,030 ) Loans receivable $ 1,509,389 December 31, 2019 Commercial and industrial loans $ 104,911 $ 4,740 $ 1,750 $ - $ 111,401 Real estate loans: Construction, land, and land development 97,034 - - - 97,034 Residential real estate 114,823 123 65 - 115,011 Commercial real estate 608,773 4,625 - - 613,398 Consumer and other loans 4,212 - 2 4,214 $ 929,753 $ 9,488 $ 1,817 $ - 941,058 Less net deferred origination fees (1,955 ) Loans receivable $ 939,103
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, 2020: Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) Three Months Ended September 30, 2020 ALLL balance, June 30, 2020 $ 2,853 $ 3,378 $ 2,669 $ 5,235 $ 140 $ 572 $ 14,847 Provision for loan losses or (recapture) 27 234 222 1,929 (9 ) (203 ) 2,200 2,880 3,612 2,891 7,164 131 369 17,047 Loans charged-off - - - - (2 ) - (2 ) Recoveries of loans previously charged-off - - - - 1 - 1 Net (charge-offs) recoveries - - - - (1 ) - (1 ) ALLL balance, September 30, 2020 $ 2,880 $ 3,612 $ 2,891 $ 7,164 $ 130 $ 369 $ 17,046 Nine Months Ended September 30, 2020 ALLL balance, December 31, 2019 $ 2,366 $ 2,745 $ 2,069 $ 3,126 $ 104 $ 1,060 $ 11,470 Provision for loan losses or (recapture) 639 867 822 4,038 33 (691 ) 5,708 3,005 3,612 2,891 7,164 137 369 17,178 Loans charged-off (130 ) - - - (9 ) - (139 ) Recoveries of loans previously charged-off 5 - - - 2 - 7 Net (charge-offs) recoveries (125 ) - - - (7 ) - (132 ) ALLL balance, September 30, 2020 $ 2,880 $ 3,612 $ 2,891 $ 7,164 $ 130 $ 369 $ 17,046 As of September 30, 2020 ALLL amounts allocated to Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 2,880 3,612 2,891 7,164 130 369 17,046 ALLL balance September 30, 2020 $ 2,880 $ 3,612 $ 2,891 $ 7,164 $ 130 $ 369 $ 17,046 Loans individually evaluated for impairment $ 625 $ 3,269 $ 178 $ 405 $ - $ 4,477 Loans collectively evaluated for impairment 588,579 97,686 120,969 704,781 3,927 1,515,942 Loan balance, September 30, 2020 $ 589,204 $ 100,955 $ 121,147 $ 705,186 $ 3,927 $ 1,520,419 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 , 2019 : Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) Three months ended September 30, 2019 Balance, June 30, 2019 $ 2,482 $ 2,386 $ 1,814 $ 2,845 $ 67 $ 849 $ 10,443 Provision for loan losses or (recapture) 195 136 140 107 22 37 637 2,677 2,522 1,954 2,952 89 886 11,080 Loans charged-off (118 ) (75 ) - - (3 ) - (196 ) Recoveries of loans previously charged-off 2 - - - 2 - 4 Net (charge-offs) recoveries (116 ) (75 ) - - (1 ) - (192 ) Balance, September 30, 2019 $ 2,561 $ 2,447 $ 1,954 $ 2,952 $ 88 $ 886 $ 10,888 Nine months ended September 30, 2019 Balance, December 31, 2018 $ 2,039 $ 1,806 $ 1,647 $ 2,648 $ 77 $ 1,190 $ 9,407 Provision for loan losses or (recapture) 643 716 307 333 29 (304 ) 1,724 2,682 2,522 1,954 2,981 106 886 11,131 Loans charged-off (125 ) (75 ) - (29 ) (23 ) - (252 ) Recoveries of loans previously charged-off 4 - - - 5 - 9 Net (charge-offs) recoveries (121 ) (75 ) - (29 ) (18 ) - (243 ) Balance, September 30, 2019 $ 2,561 $ 2,447 $ 1,954 $ 2,952 $ 88 $ 886 $ 10,888 As of September 30, 2019 ALLL amounts allocated to Individually evaluated for impairment $ 230 $ - $ - $ - $ - $ - $ 230 Collectively evaluated for impairment 2,331 2,447 1,954 2,952 88 886 10,658 ALLL balance, September 30, 2019 $ 2,561 $ 2,447 $ 1,954 $ 2,952 $ 88 $ 886 $ 10,888 Loans individually evaluated for impairment $ 1,233 $ - $ 67 $ - $ - $ 1,300 Loans collectively evaluated for impairment 104,401 86,919 100,751 578,607 3,720 874,398 Loan balance, September 30, 2019 $ 105,634 $ 86,919 $ 100,818 $ 578,607 $ 3,720 $ 875,698 The following table summarizes the allocation of the ALLL attributed to various segments in the loan portfolio as of December 31, 2019. Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) As of December 31, 2019 ALLL amounts allocated to Individually evaluated for impairment $ - $ - $ - $ - $ 2 $ - $ 2 Collectively evaluated for impairment 2,366 2,745 2,069 3,126 102 1,060 11,468 ALLL balance, December 31, 2019 $ 2,366 $ 2,745 $ 2,069 $ 3,126 $ 104 $ 1,060 $ 11,470 Loans individually evaluated for impairment $ 965 $ - $ 65 $ - $ 2 $ 1,032 Loans collectively evaluated for impairment 110,436 97,034 114,946 613,398 4,212 940,026 Loan balance, December 31, 2019 $ 111,401 $ 97,034 $ 115,011 $ 613,398 $ 4,214 $ 941,058

Deposits (Tables)

Deposits (Tables)	9 Months Ended
	Sep. 30, 2020
Deposits [Abstract]
Composition of Consolidated Deposits	The composition of consolidated deposits consisted of the following at the periods indicated: September 30, December 31, 2020 2019 (dollars in thousands) Demand, noninterest bearing $ 570,664 $ 371,243 NOW and money market 624,891 437,908 Savings 74,694 53,365 BaaS-brokered deposits 24,870 23,586 Time deposits less than $250,000 41,676 51,644 Time deposits $250,000 and over 23,216 30,213 Total deposits $ 1,360,011 $ 967,959
Schedule of Maturity Distribution of Time Deposits	The following table presents the maturity distribution of time deposits as of September 30, 2020 (dollars in thousands): Twelve months $ 52,266 One to two years 8,013 Two to three years 2,531 Three to four years 974 Four to five years 1,108 $ 64,892

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020: September 30, (dollars in thousands) 2020 October 1, 2020 to December 31, 2020 $ 318 2021 1,254 2022 1,258 2023 1,269 2024 864 2025 and thereafter 3,922 Total lease payments 8,885 Less: amounts representing interest 1,306 Present value of lease liabilities $ 7,579
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 nine months ended September 30, 2020: September 30, (dollars in thousands) 2020 Lease expense: Operating lease expense $ 983 Variable lease expense 239 Total lease expense (1) $ 1,222 Cash paid: Cash paid reducing operating lease liabilities $ 1,206 (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, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of Assumptions Used to Estimate the Value of Options Granted	The following assumptions were used to estimate the value of options granted under the 2018 Plan as applicable in the period indicated. There were no new stock options granted in the nine months ended September 30, 2020: Nine months ended September 30, 2019 Expected term 10.0 years Expected stock price volatility 48.79 % Risk-free interest rate 2.74 % Expected dividends Zero Weighted average grant date fair value $ 9.22
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, 2020: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (dollars in thousands, except per share amounts) Outstanding at December 31, 2019 784,217 $ 7.73 5.95 $ 6,587 Granted - - - Exercised (13,610 ) 6.07 - Forfeited or expired (1,000 ) 14.91 - Outstanding at September 30, 2020 769,607 $ 7.75 5.21 $ 3,825 Vested or expected to vest at September 30, 2020 769,607 $ 7.75 5.21 $ 3,825 Exercisable at September 30, 2020 333,933 $ 6.43 3.89 $ 1,984
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of Nonvested Shares	A summary of the Company’s nonvested shares at September 30, 2020 and changes during the nine-month period is presented below: Nonvested shares Shares Weighted- Average Grant Date Fair Value Total or Aggregate Intrinsic Value (dollars in thousands, except per share amounts) Nonvested shares at December 31, 2019 - $ - $ - Granted 87,148 17.47 Forfeited (2,808 ) 17.81 Vested - - Nonvested shares at September 30, 2020 84,340 $ 17.47 $ -
Restricted Stock | Directors Stock Bonus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of Nonvested Shares	A summary of the Company’s nonvested shares at September 30, 2020 and changes during the nine-month period is presented below: Nonvested shares Shares Weighted- Average Grant Date Fair Value Total or Aggregate Intrinsic Value (dollars in thousands, except per share amounts) Nonvested shares at December 31, 2019 10,257 $ 11.71 $ 48,864 Granted 6,248 17.81 Forfeited (3,500 ) 15.35 Vested (5,022 ) 7.23 Nonvested shares at September 30, 2020 7,983 $ 17.08 $ -

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 Fair Value Measurements Using Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets Cash and due from banks $ 14,136 $ 14,136 $ 14,136 $ - $ - Interest earning deposits with other banks 168,034 168,034 168,034 - - Investment securities 23,782 23,897 20,040 3,857 - Other investments 5,951 5,951 - 5,201 750 Loans receivable 1,509,389 1,494,299 - - 1,494,299 Accrued interest receivable 8,216 8,216 - 8,216 - Financial liabilities Deposits $ 1,360,011 1,360,349 $ - $ 1,360,349 $ - FHLB advances 24,999 24,936 - 24,936 - Paycheck Protection Program Liquidity Facility 202,595 202,595 202,595 Subordinated debt 9,989 9,895 - 9,895 - Junior subordinated debentures 3,584 3,057 - 3,057 - Accrued interest payable 481 481 - 481 - December 31, 2019 Fair Value Measurements Using Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets Cash and due from banks $ 16,555 $ 16,555 $ 16,555 $ - $ - Interest earning deposits with other banks 111,259 111,259 111,259 - - Investment securities 32,710 32,689 24,945 7,744 - Other investments 4,505 4,505 - 4,005 500 Loans receivable, net 927,633 922,046 - - 922,046 Accrued interest receivable 2,980 2,980 - 2,980 - Financial liabilities Deposits $ 967,959 $ 967,804 $ - $ 967,804 $ - FHLB advances 10,000 10,000 - 10,000 - Subordinated debt 9,979 9,879 - 9,879 - Junior subordinated debentures 3,583 3,214 - 3,214 - Accrued interest payable 308 308 - 308 -
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 Fair Value (dollars in thousands) September 30, 2020 Available-for-sale U.S. Treasury securities $ 20,041 $ - $ - $ 20,041 U.S. Agency collateralized mortgage obligations - 113 - 113 U.S. Agency residential mortgage-backed securities - 11 - 11 Municipals - 263 - 263 $ 20,041 $ 387 $ - $ 20,428 December 31, 2019 Available-for-sale U.S. Treasury securities $ 24,945 $ - $ - $ 24,945 U.S. Government agencies - 2,999 - 2,999 U.S. Agency collateralized mortgage obligations - 129 - 129 U.S. Agency residential mortgage-backed securities - 27 - 27 Municipals - 260 - 260 $ 24,945 $ 3,415 $ - $ 28,360
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: Valuation Technique Unobservable Inputs September 30, 2020 Weighted Average Rate December Weighted Average Rate Impaired loans Collateral valuations Discount to appraised value 8 % 10 %
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 Fair Value (dollars in thousands) September 30, 2020 Impaired loans $ - $ - $ 4,477 $ 4,477 Total $ - $ - $ 4,477 $ 4,477 December 31, 2019 Impaired loans $ - $ - $ 1,030 $ 1,030 Total $ - $ - $ 1,030 $ 1,030

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 September 30, 2019 September 30, 2020 September 30, 2019 (dollars in thousands, except share data) Net Income $ 4,090 $ 3,511 $ 10,485 $ 9,593 Basic weighted average number common shares outstanding 11,919,850 11,901,873 11,915,513 11,893,734 Dilutive effect of share-based compensation 261,422 286,634 268,332 299,337 Diluted weighted average number common shares outstanding 12,181,272 12,188,507 12,183,845 12,193,071 Basic earnings per share $ 0.34 $ 0.30 $ 0.88 $ 0.81 Diluted earnings per share $ 0.34 $ 0.29 $ 0.86 $ 0.79 Antidilutive stock options and restricted stock outstanding 224,177 138,689 224,177 138,689

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020Branch
Accounting Policies [Abstract]
Entity incorporation, state name	WA
Number of branches	15

Investments Securities - Amorti

Investments Securities - Amortized Cost and Fair Values of Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available-for-Sale and Held-to-Maturity Securities [Line Items]
Available-for-sale, Amortized Cost	$ 20,370	$ 28,401
Available-for-sale, Gross Unrealized Gains	58	4
Available-for-sale, Gross Unrealized Losses		(45)
Available-for-sale, Fair Value	20,428	28,360
Held-to-maturity, Amortized Cost	3,354	4,350
Held-to-maturity, Fair Value	3,470
Total investment securities, Amortized Cost	23,724	32,751
Total investment securities, Gross Unrealized Gains	174	4
Total investment securities, Gross Unrealized Losses		(66)
Total investment securities, Fair Value	23,898	32,689
U.S. Treasury Securities
Available-for-Sale and Held-to-Maturity Securities [Line Items]
Available-for-sale, Amortized Cost	19,996	24,988
Available-for-sale, Gross Unrealized Gains	45	1
Available-for-sale, Gross Unrealized Losses		(44)
Available-for-sale, Fair Value	20,041	24,945
U.S. Agency Collateralized Mortgage Obligations
Available-for-Sale and Held-to-Maturity Securities [Line Items]
Available-for-sale, Amortized Cost	108	129
Available-for-sale, Gross Unrealized Gains	5
Available-for-sale, Fair Value	113	129
U.S. Agency Residential Mortgage-Backed Securities
Available-for-Sale and Held-to-Maturity Securities [Line Items]
Available-for-sale, Amortized Cost	11	27
Available-for-sale, Fair Value	11	27
Held-to-maturity, Amortized Cost	3,354	4,350
Held-to-maturity, Gross Unrealized Gains	116
Held-to-maturity, Gross Unrealized Losses		(21)
Held-to-maturity, Fair Value	3,470	4,329
Municipals Bonds
Available-for-Sale and Held-to-Maturity Securities [Line Items]
Available-for-sale, Amortized Cost	255	257
Available-for-sale, Gross Unrealized Gains	8	3
Available-for-sale, Fair Value	$ 263	260
U.S. Government Agencies
Available-for-Sale and Held-to-Maturity Securities [Line Items]
Available-for-sale, Amortized Cost		3,000
Available-for-sale, Gross Unrealized Losses		(1)
Available-for-sale, Fair Value		$ 2,999

Investments Securities - Amor_2

Investments Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available-for-Sale and Held-to-Maturity Securities [Line Items]
Available-for-Sale, Amortized Cost, Amounts maturing in One year or less	$ 19,996
Available-for-Sale, Amortized Cost, Amounts maturing in After one year through five years	255
Available-for-Sale, Amortized Cost. Amounts maturity with single maturity	20,251
Available-for-sale, Amortized Cost	20,370	$ 28,401
Available-for-Sale, Fair Value, Amounts maturing in One year or less	20,041
Available-for-Sale, Fair Value, Amounts maturing in After one year through five years	263
Available-for-Sale, Fair Value, Amounts maturing with single maturity	20,304
Available-for-Sale, Fair Value	20,428	28,360
Held-to-maturity, Amortized Cost	3,354	$ 4,350
Held-to-Maturity, Fair Value	3,470
U.S. Agency Residential Mortgage-backed Securities and Collateralized Mortgage Obligations
Available-for-Sale and Held-to-Maturity Securities [Line Items]
Available-for-Sale, Amortized Cost, Amounts maturity without single maturity	119
Available-for-Sale, Fair Value, Amounts maturing without single maturity	124
Held-to-Maturity, Amortized Cost, Amounts maturity without single maturity	3,354
Held-to-Maturity, Fair Value, Amounts maturing without single maturity	$ 3,470

Investments Securities - Additi

Investments Securities - Additional Information (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020USD ($)Security	Sep. 30, 2019USD ($)InvestmentSecurity	Sep. 30, 2020USD ($)Security	Sep. 30, 2019USD ($)InvestmentSecurity	Dec. 31, 2019USD ($)Security
Investments [Abstract]
Investment securities with carrying value pledged to secure public deposits	$ 21,958,000		$ 21,958,000		$ 16,843,000
Number of investment securities sold | InvestmentSecurity		5		5
Sales of securities available for sale	0	$ 30,000,000	0	$ 30,026,000
Gross gains on investment securities		$ 242,000
Gross losses on investment securities				$ 71,000
Gross unrealized losses for investment securities	$ 0		$ 0		$ 66,000
Number of securities in unrealized loss position | Security	0		0		6
Securities other than temporarily impaired					$ 0

Investments Securities - Summar

Investments Securities - Summary of Investment Securities Continuous Unrealized Loss Position (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale, Fair Value, Less Than 12 Months		$ 9,994,000
Available-for-sale, Gross Unrealized Losses, Less Than 12 Months		(3,000)
Available-for-sale, Fair Value, 12 Months or Greater		7,955,000
Available-for-sale, Gross Unrealized Losses, 12 Months or Greater		(42,000)
Available-for-sale, Total Fair Value		17,949,000
Available-for-sale, Total Gross Unrealized Losses		(45,000)
Total investment securities, Fair Value, Less Than 12 Months		13,134,000
Total investment securities, Gross Unrealized Losses, Less Than 12 Months		(17,000)
Total investment securities, Fair Value, 12 Months or Greater		9,144,000
Total investment securities, Gross Unrealized Losses, 12 Months or Greater		(49,000)
Total investment securities, Total, Fair Value		22,278,000
Total investment securities, Total, Gross Unrealized Losses	$ 0	(66,000)
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale, Fair Value, Less Than 12 Months		9,994,000
Available-for-sale, Gross Unrealized Losses, Less Than 12 Months		(3,000)
Available-for-sale, Fair Value, 12 Months or Greater		4,956,000
Available-for-sale, Gross Unrealized Losses, 12 Months or Greater		(41,000)
Available-for-sale, Total Fair Value		14,950,000
Available-for-sale, Total Gross Unrealized Losses		(44,000)
U.S. Government Agencies
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale, Fair Value, 12 Months or Greater		2,999,000
Available-for-sale, Gross Unrealized Losses, 12 Months or Greater		(1,000)
Available-for-sale, Total Fair Value		2,999,000
Available-for-sale, Total Gross Unrealized Losses		(1,000)
U.S. Agency Residential Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Held-to-maturity, Fair Value, Less Than 12 Months		3,140,000
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months		(14,000)
Held-to-maturity, Fair Value, 12 Months or Greater		1,189,000
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months		(7,000)
Held-to-maturity, Total, Fair Value		4,329,000
Held-to-maturity, Total, Gross Unrealized Losses		$ (21,000)

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	$ 1,520,419	$ 941,058	$ 875,698
Net deferred origination fees and premiums	(11,030)	(1,955)
Loans receivable	1,509,389	939,103
Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	589,204	111,401	105,634
Construction, Land and Land Development
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	100,955	97,034	86,919
Residential Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	121,147	115,011	100,818
Commercial Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	705,186	613,398	578,607
Consumer and Other Loans
Loans And Leases Receivable Disclosure [Line Items]
Gross loans receivable	$ 3,927	$ 4,214	$ 3,720

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Loan	Sep. 30, 2019USD ($)Loan	Sep. 30, 2020USD ($)Loan	Sep. 30, 2019USD ($)Loan	Dec. 31, 2019USD ($)
Loans And Leases Receivable Disclosure [Line Items]
Overdrafts included in loans	$ 11,000		$ 11,000		$ 26,000
Pledged loans for borrowing lines at FHLB and FRB	378,645,000		378,645,000		163,522,000
Balance of SBA and USDA loans and participations serviced	487,536,000		487,536,000		36,592,000
Small business administration and united states department of agriculture loans and participations serviced	20,700,000		20,700,000		21,498,000
Net deferred origination fees	11,030,000		11,030,000		1,955,000
Purchased loans	20,920,000		20,920,000		32,937,000
Unamortized premiums	324,000		324,000		527,000
Purchased participation loans	$ 41,465,000		$ 41,465,000		$ 31,352,000
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
Provision for credit losses	$ 2,200,000	$ 637,000	$ 5,708,000	$ 1,724,000
COVID-19
Loans And Leases Receivable Disclosure [Line Items]
Number of deferred payment on loans | Loan	44		44
Deferred outstanding loans to customers	$ 52,500,000		$ 52,500,000
Deferred loans unused commitments	1,400,000		$ 1,400,000
Minimum
Loans And Leases Receivable Disclosure [Line Items]
Percentage of collateral coverage to loan balance			100.00%
Loan repayment extended period of time			6 months
Sustained repayment performance period of loan placed on nonaccrual			6 months
CARES Act Paycheck Protection Program
Loans And Leases Receivable Disclosure [Line Items]
Balance of SBA and USDA loans and participations serviced	452,846,000		$ 452,846,000
Net deferred origination fees	$ 8,586,000		$ 8,586,000
Small Business Administration | Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
Contractual rate of loan	1.00%		1.00%
Percentage of unsecured, guaranteed and loan			100.00%
Loans interest rate			0.35%
Small Business Administration | Minimum | Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan, maturity terms			2 years
Small Business Administration | Maximum | Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan, maturity terms			5 years

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, 2020	Dec. 31, 2019	Sep. 30, 2019
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 4,360	$ 1,594
Current	1,516,059	939,464
Total Loans	1,520,419	941,058	$ 875,698
Net deferred origination fees and premiums	(11,030)	(1,955)
Loans receivable	1,509,389	939,103
30-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		564
90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	4,360	1,030
Commercial and Industrial Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	625	1,108
Current	588,579	110,293
Total Loans	589,204	111,401	105,634
Commercial and Industrial Loans | 30-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		143
Commercial and Industrial Loans | 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	625	965
Construction, Land and Land Development
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,269
Current	97,686	97,034
Total Loans	100,955	97,034	86,919
Construction, Land and Land Development | 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,269
Residential Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	61	65
Current	121,086	114,946
Total Loans	121,147	115,011	100,818
Residential Real Estate | 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	61	65
Commercial Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	405	417
Current	704,781	612,981
Total Loans	705,186	613,398	578,607
Commercial Real Estate | 30-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		417
Commercial Real Estate | 90 Days or More Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	405
Consumer and Other Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		4
Current	3,927	4,210
Total Loans	$ 3,927	4,214	$ 3,720
Consumer and Other Loans | 30-89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due		$ 4

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, 2020	Dec. 31, 2019
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 4,794	$ 1,506
Recorded Investment With No Allowance	4,477	1,030
Recorded Investment With Allowance		2
Total Recorded Investment	4,477	1,032
Related Allowance		2
Commercial and Industrial Loans
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	922	1,431
Recorded Investment With No Allowance	625	965
Total Recorded Investment	625	965
Construction, Land and Land Development
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	3,269
Recorded Investment With No Allowance	3,269
Total Recorded Investment	3,269
Residential Real Estate
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	190	73
Recorded Investment With No Allowance	178	65
Total Recorded Investment	178	65
Commercial Real Estate
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance	413
Recorded Investment With No Allowance	405
Total Recorded Investment	$ 405
Consumer Loans
Financing Receivable Impaired [Line Items]
Unpaid Contractual Principal Balance		2
Recorded Investment With Allowance		2
Total Recorded Investment		2
Related Allowance		$ 2

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Summary of Our Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Financing Receivable Impaired [Line Items]
Average Recorded Investment	$ 4,487	$ 1,474	$ 2,771	$ 1,319
Commercial and Industrial Loans
Financing Receivable Impaired [Line Items]
Average Recorded Investment	657	1,406	748	933
Construction, Land and Land Development
Financing Receivable Impaired [Line Items]
Average Recorded Investment	3,270		1,666
Residential Real Estate
Financing Receivable Impaired [Line Items]
Average Recorded Investment	151	$ 68	153	71
Commercial Real Estate
Financing Receivable Impaired [Line Items]
Average Recorded Investment	$ 409		$ 204	$ 315

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Analysis of Nonaccrual Loans by Category (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	$ 4,477	$ 1,030
Commercial and Industrial Loans
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	625	965
Construction, Land and Land Development
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	3,269
Residential Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	178	$ 65
Commercial Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Total nonaccrual loans	$ 405

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, 2020	Dec. 31, 2019	Sep. 30, 2019
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	$ 1,520,419	$ 941,058	$ 875,698
Less net deferred origination fees	(11,030)	(1,955)
Loans receivable	1,509,389	939,103
Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	589,204	111,401	105,634
Construction, Land and Land Development
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	100,955	97,034	86,919
Residential Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	121,147	115,011	100,818
Commercial Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	705,186	613,398	578,607
Consumer and Other Loans
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	3,927	4,214	$ 3,720
Pass
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	1,488,921	929,753
Pass | Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	578,128	104,911
Pass | Construction, Land and Land Development
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	97,686	97,034
Pass | Residential Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	120,559	114,823
Pass | Commercial Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	688,621	608,773
Pass | Consumer and Other Loans
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	3,927	4,212
Other Loans Especially Mentioned
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	26,164	9,488
Other Loans Especially Mentioned | Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	9,594	4,740
Other Loans Especially Mentioned | Residential Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	410	123
Other Loans Especially Mentioned | Commercial Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	16,160	4,625
Sub-Standard
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	5,334	1,817
Sub-Standard | Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	1,482	1,750
Sub-Standard | Construction, Land and Land Development
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	3,269
Sub-Standard | Residential Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	178	65
Sub-Standard | Commercial Real Estate
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross	$ 405
Sub-Standard | Consumer and Other Loans
Loans And Leases Receivable Disclosure [Line Items]
Loans, gross		$ 2

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Loans And Leases Receivable Disclosure [Line Items]
ALLL Balance	$ 14,847	$ 10,443	$ 11,470	$ 9,407
Provision for loan losses or (recapture)					$ 2,200	$ 5,708	$ 637	$ 1,724
Loans receivable allowance including provision losses or (recapture)					17,047	17,178	11,080	11,131
Loans charged-off	(2)	(196)	(139)	(252)
Recoveries of loans previously charged-off	1	4	7	9
Net (charge-offs) recoveries	(1)	(192)	(132)	(243)
ALLL Balance	17,046	10,888	17,046	10,888
Allowances
Amounts allocated to Individually evaluated for impairment		230		230		2
Amounts allocated to Collectively evaluated for impairment	17,046	10,658	17,046	10,658		11,468
ALLL Balance	17,046	10,888	17,046	10,888
Loans
Loans individually evaluated for impairment	4,477	1,300	4,477	1,300		1,032
Loans collectively evaluated for impairment	1,515,942	874,398	1,515,942	874,398		940,026
Total Loans	1,520,419	875,698	1,520,419	875,698		941,058
Commercial and Industrial Loans
Loans And Leases Receivable Disclosure [Line Items]
ALLL Balance	2,853	2,482	2,366	2,039
Provision for loan losses or (recapture)					27	639	195	643
Loans receivable allowance including provision losses or (recapture)					2,880	3,005	2,677	2,682
Loans charged-off		(118)	(130)	(125)
Recoveries of loans previously charged-off		2	5	4
Net (charge-offs) recoveries		(116)	(125)	(121)
ALLL Balance	2,880	2,561	2,880	2,561
Allowances
Amounts allocated to Individually evaluated for impairment		230		230
Amounts allocated to Collectively evaluated for impairment	2,880	2,331	2,880	2,331		2,366
ALLL Balance	2,880	2,561	2,880	2,561
Loans
Loans individually evaluated for impairment	625	1,233	625	1,233		965
Loans collectively evaluated for impairment	588,579	104,401	588,579	104,401		110,436
Total Loans	589,204	105,634	589,204	105,634		111,401
Construction, Land and Land Development
Loans And Leases Receivable Disclosure [Line Items]
ALLL Balance	3,378	2,386	2,745	1,806
Provision for loan losses or (recapture)					234	867	136	716
Loans receivable allowance including provision losses or (recapture)					3,612	3,612	2,522	2,522
Loans charged-off		(75)		(75)
Net (charge-offs) recoveries		(75)		(75)
ALLL Balance	3,612	2,447	3,612	2,447
Allowances
Amounts allocated to Collectively evaluated for impairment	3,612	2,447	3,612	2,447		2,745
ALLL Balance	3,612	2,447	3,612	2,447
Loans
Loans individually evaluated for impairment	3,269		3,269
Loans collectively evaluated for impairment	97,686	86,919	97,686	86,919		97,034
Total Loans	100,955	86,919	100,955	86,919		97,034
Residential Real Estate
Loans And Leases Receivable Disclosure [Line Items]
ALLL Balance	2,669	1,814	2,069	1,647
Provision for loan losses or (recapture)					222	822	140	307
Loans receivable allowance including provision losses or (recapture)					2,891	2,891	1,954	1,954
ALLL Balance	2,891	1,954	2,891	1,954
Allowances
Amounts allocated to Collectively evaluated for impairment	2,891	1,954	2,891	1,954		2,069
ALLL Balance	2,891	1,954	2,891	1,954
Loans
Loans individually evaluated for impairment	178	67	178	67		65
Loans collectively evaluated for impairment	120,969	100,751	120,969	100,751		114,946
Total Loans	121,147	100,818	121,147	100,818		115,011
Commercial Real Estate
Loans And Leases Receivable Disclosure [Line Items]
ALLL Balance	5,235	2,845	3,126	2,648
Provision for loan losses or (recapture)					1,929	4,038	107	333
Loans receivable allowance including provision losses or (recapture)					7,164	7,164	2,952	2,981
Loans charged-off				(29)
Net (charge-offs) recoveries				(29)
ALLL Balance	7,164	2,952	7,164	2,952
Allowances
Amounts allocated to Collectively evaluated for impairment	7,164	2,952	7,164	2,952		3,126
ALLL Balance	7,164	2,952	7,164	2,952
Loans
Loans individually evaluated for impairment	405		405
Loans collectively evaluated for impairment	704,781	578,607	704,781	578,607		613,398
Total Loans	705,186	578,607	705,186	578,607		613,398
Consumer and Other Loans
Loans And Leases Receivable Disclosure [Line Items]
ALLL Balance	140	67	104	77
Provision for loan losses or (recapture)					(9)	33	22	29
Loans receivable allowance including provision losses or (recapture)					131	137	89	106
Loans charged-off	(2)	(3)	(9)	(23)
Recoveries of loans previously charged-off	1	2	2	5
Net (charge-offs) recoveries	(1)	(1)	(7)	(18)
ALLL Balance	130	88	130	88
Allowances
Amounts allocated to Individually evaluated for impairment						2
Amounts allocated to Collectively evaluated for impairment	130	88	130	88		102
ALLL Balance	130	88	130	88
Loans
Loans individually evaluated for impairment						2
Loans collectively evaluated for impairment	3,927	3,720	3,927	3,720		4,212
Total Loans	3,927	3,720	3,927	3,720		4,214
Unallocated
Loans And Leases Receivable Disclosure [Line Items]
ALLL Balance	572	849	1,060	1,190
Provision for loan losses or (recapture)					(203)	(691)	37	(304)
Loans receivable allowance including provision losses or (recapture)					$ 369	369	$ 886	$ 886
ALLL Balance	369	886	369	886
Allowances
Amounts allocated to Collectively evaluated for impairment	369	886	369	886		$ 1,060
ALLL Balance	$ 369	$ 886	$ 369	$ 886

Deposits - Composition of Conso

Deposits - Composition of Consolidated Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Time Deposits By Maturity [Abstract]
Demand, noninterest bearing	$ 570,664	$ 371,243
NOW and money market	624,891	437,908
Savings	74,694	53,365
BaaS-brokered deposits	24,870	23,586
Time deposits less than $250,000	41,676	51,644
Time deposits $250,000 and over	23,216	30,213
Total deposits	$ 1,360,011	$ 967,959

Deposits - Schedule of Maturity

Deposits - Schedule of Maturity Distribution of Time Deposits (Details) $ in Thousands	Sep. 30, 2020USD ($)
Deposits [Abstract]
Twelve months	$ 52,266
One to two years	8,013
Two to three years	2,531
Three to four years	974
Four to five years	1,108
Total time deposits	$ 64,892

Leases - Additional Information

Leases - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Lessee Lease Description [Line Items]
Operating lease not yet commenced	$ 0		$ 0
Operating lease, option to extend description			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
Operating lease, existence of option to extend			true
Operating leases weighted-average remaining lease term	10 years 6 months		10 years 6 months
Operating lease rental expense	$ 461,000	$ 342,000	$ 1,100,000	$ 1,100,000
Minimum
Lessee Lease Description [Line Items]
Operating leases lease term	6 months		6 months
Operating lease, option to renewal period	5 years		5 years
Maximum
Lessee Lease Description [Line Items]
Operating leases lease term	25 years		25 years
Operating lease, option to renewal period	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, 2020	Dec. 31, 2019
Leases [Abstract]
October 1, 2020 to December 31, 2020	$ 318
2021	1,254
2022	1,258
2023	1,269
2024	864
2025 and thereafter	3,922
Total lease payments	8,885
Less: amounts representing interest	1,306
Present value of lease liabilities	$ 7,579	$ 8,679

Leases - Summary of Components

Leases - Summary of Components of Total Lease Expense and Operating Cash Flows (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Lease expense:
Operating lease expense	$ 983
Variable lease expense	239
Total lease expense	1,222
Cash paid:
Cash paid reducing operating lease liabilities	$ 1,206

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details)	Apr. 30, 2018shares	Jul. 31, 2020shares	Apr. 30, 2020shares	Feb. 29, 2020Director$ / sharesshares	Jan. 31, 2019Director$ / sharesshares	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)shares	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)shares	Dec. 31, 2019shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic or aggregate value of options exercise price | $						$ 28,000	$ 35,000	$ 121,000	$ 170,000
Total unrecognized compensation cost related to nonvested stock options granted | $						2,000,000		2,000,000
Compensation expense | $								$ 414,000	325,000
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								6 years 9 months 18 days
Compensation expense | $						94,000	101,000	$ 281,000	295,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period		5 years	10 years	10 years
Total unrecognized compensation cost related to nonvested stock options granted | $						1,300		$ 1,300
Unrecognized compensation cost related to nonvested stock options/ RSA granted, weighted-average period								9 years 2 months 12 days
Compensation expense | $						$ 39,000,000	$ 0	$ 96,000,000	$ 0
Number of shares granted		6,902	1,490	78,756				87,148
Stock outstanding						84,340	0	84,340	0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested stock options/ RSA granted, weighted-average period								7 years 3 months 18 days
Compensation expense | $						$ 2,000	$ 2,000	$ 5,000	$ 5,000
Total unrecognized compensation cost related to nonvested restricted stock awards | $						$ 65,000		$ 65,000
Restricted Stock | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period				8 years
Number of shares granted				4,000
Estimated fair value per share | $ / shares				$ 17.81
2018 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, additional shares authorized	0
Shares available to be granted						275,323		275,323
Stock options granted to employees								0
2018 Omnibus Incentive Plan | Nonqualified Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted to employees					26,737
Stock options vesting period					10 years
2018 Omnibus Incentive Plan | Qualified Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted to employees					99,100
Stock options vesting period					10 years
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 | $								$ 5,000
2018 Omnibus Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate of common stock, shares authorized	500,000
Directors Stock Bonus Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period								2 years
Compensation expense | $						$ 8,000	$ 8,000	$ 26,000	$ 25,000
Number of shares granted								6,248
Stock outstanding						7,983		7,983		10,257
Directors Stock Bonus Plan | Restricted Stock | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted				2,248	2,352
Estimated fair value per share | $ / shares				$ 17.81	$ 14.91
Number of directors | Director				8	7
Directors Stock Bonus Plan | Minimum | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of scheduled board meetings attended by directors during prior year						75.00%		75.00%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Assumptions used to Estimate the Value of Options Granted (Details) - 2018 Omnibus Incentive Plan	9 Months Ended
	Sep. 30, 2020$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	10 years
Expected stock price volatility	48.79%
Risk-free interest rate	2.74%
Expected dividends	0.00%
Weighted average grant date fair value	$ 9.22

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Stock Option Activity (Details) - 2018 Omnibus Incentive Plan $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Shares, Beginning balance	784,217
Stock options granted to employees	0
Exercised, Shares	(13,610)
Forfeited or expired, Shares	(1,000)
Outstanding, Shares, Ending balance	769,607	784,217
Vested or expected to vest, Shares	769,607
Exercisable, Shares	333,933
Outstanding, Weighted Average Exercise Price, Beginning balance | $ / shares	$ 7.73
Exercised, Weighted Average Exercise Price | $ / shares	6.07
Forfeited or expired, Weighted Average Exercise price | $ / shares	14.91
Outstanding, Weighted Average Exercise Price, Ending balance | $ / shares	7.75	$ 7.73
Vested or expected to vest, Weighted Average Exercise Price | $ / shares	7.75
Exercisable, Weighted Average Exercise Price | $ / shares	$ 6.43
Outstanding, Weighted Average Remaining Contractual Term	5 years 2 months 15 days	5 years 11 months 12 days
Vested or expected to vest, Weighted Average Remaining Contractual Term	5 years 2 months 15 days
Exercisable, Weighted Average Remaining Contractual Term	3 years 10 months 20 days
Outstanding, Aggregate Intrinsic Value | $	$ 3,825	$ 6,587
Vested or expected to vest, Aggregate Intrinsic Value | $	3,825
Exercisable, Aggregate Intrinsic Value | $	$ 1,984

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Nonvested Shares (Details) - USD ($)	1 Months Ended			9 Months Ended
	Jul. 31, 2020	Apr. 30, 2020	Feb. 29, 2020	Sep. 30, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested, Total or Aggregate Intrinsic Value, Ending balance					$ 48,864
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Shares	6,902	1,490	78,756	87,148
Forfeited, Shares				(2,808)
Vested, Shares				0
Nonvested shares, Ending balance				84,340
Granted, Weighted-Average Grant Date Fair Value				$ 17.47
Forfeited, Weighted-Average Grant Date Fair Value				17.81
Vested, Weighted-Average Grant Date Fair Value				0
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance				$ 17.47
Restricted Stock | Directors Stock Bonus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested shares, Beginning balance				10,257
Granted, Shares				6,248
Forfeited, Shares				(3,500)
Vested, Shares				(5,022)
Nonvested shares, Ending balance				7,983
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance				$ 11.71
Granted, Weighted-Average Grant Date Fair Value				17.81
Forfeited, Weighted-Average Grant Date Fair Value				15.35
Vested, Weighted-Average Grant Date Fair Value				7.23
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance				$ 17.08

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial assets
Other investments	$ 5,951	$ 4,505
Financial liabilities
FHLB advances	24,999	10,000
Paycheck Protection Program Liquidity Facility	202,595
Carrying Value
Financial assets
Cash and due from banks	14,136	16,555
Interest earning deposits with other banks	168,034	111,259
Investment securities	23,782	32,710
Other investments	5,951	4,505
Loans receivable, net	1,509,389	927,633
Accrued interest receivable	8,216	2,980
Financial liabilities
Deposits	1,360,011	967,959
FHLB advances	24,999	10,000
Paycheck Protection Program Liquidity Facility	202,595
Subordinated debt	9,989	9,979
Junior subordinated debentures	3,584	3,583
Accrued interest payable	481	308
Estimated Fair Value
Financial assets
Cash and due from banks	14,136	16,555
Interest earning deposits with other banks	168,034	111,259
Investment securities	23,897	32,689
Other investments	5,951	4,505
Loans receivable, net	1,494,299	922,046
Accrued interest receivable	8,216	2,980
Financial liabilities
Deposits	1,360,349	967,804
FHLB advances	24,936	10,000
Paycheck Protection Program Liquidity Facility	202,595
Subordinated debt	9,895	9,879
Junior subordinated debentures	3,057	3,214
Accrued interest payable	481	308
Estimated Fair Value | Level 1
Financial assets
Cash and due from banks	14,136	16,555
Interest earning deposits with other banks	168,034	111,259
Investment securities	20,040	24,945
Estimated Fair Value | Level 2
Financial assets
Investment securities	3,857	7,744
Other investments	5,201	4,005
Accrued interest receivable	8,216	2,980
Financial liabilities
Deposits	1,360,349	967,804
FHLB advances	24,936	10,000
Paycheck Protection Program Liquidity Facility	202,595
Subordinated debt	9,895	9,879
Junior subordinated debentures	3,057	3,214
Accrued interest payable	481	308
Estimated Fair Value | Level 3
Financial assets
Other investments	750	500
Loans receivable, net	$ 1,494,299	$ 922,046

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	$ 20,428	$ 28,360
Estimated Fair Value | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	20,428	28,360
Estimated Fair Value | Recurring | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	20,041	24,945
Estimated Fair Value | Recurring | U.S. Agency Collateralized Mortgage Obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	113	129
Estimated Fair Value | Recurring | U.S. Agency Residential Mortgage-Backed Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	11	27
Estimated Fair Value | Recurring | Municipals Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	263	260
Estimated Fair Value | Recurring | U.S. Government Agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value		2,999
Estimated Fair Value | Recurring | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	20,041	24,945
Estimated Fair Value | Recurring | Level 1 | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	20,041	24,945
Estimated Fair Value | Recurring | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	387	3,415
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]
Total Fair Value	113	129
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]
Total Fair Value	11	27
Estimated Fair Value | Recurring | Level 2 | Municipals Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	$ 263	260
Estimated Fair Value | Recurring | Level 2 | U.S. Government Agencies
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value		$ 2,999

Fair Value Measurements - Sum_3

Fair Value Measurements - Summary of Assets and Liabilities Classified as Level 3 and Measured at Fair Value on Nonrecurring Basis (Details) - Level 3	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Valuation Technique	Collateral valuations
Unobservable Inputs	Discount to appraised value
Measurement Input, Discount Rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Weighted Average Rate	8.00%	10.00%

Fair Value Measurements - Sum_4

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	$ 4,477	$ 1,030
Impaired Loans
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	4,477	1,030
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	4,477	1,030
Level 3 | Impaired Loans
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Fair Value	$ 4,477	$ 1,030

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income	$ 4,090	$ 3,511	$ 10,485	$ 9,593
Basic weighted average number common shares outstanding	11,919,850	11,901,873	11,915,513	11,893,734
Dilutive effect of share-based compensation	261,422	286,634	268,332	299,337
Diluted weighted average number common shares outstanding	12,181,272	12,188,507	12,183,845	12,193,071
Basic earnings per share	$ 0.34	$ 0.30	$ 0.88	$ 0.81
Diluted earnings per share	$ 0.34	$ 0.29	$ 0.86	$ 0.79
Stock Options and Restricted Stock
Earnings Per Share [Abstract]
Antidilutive stock outstanding	224,177	138,689	224,177	138,689