Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
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 | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,012,107 | |
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, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 31,722 | $ 18,965 |
Interest earning deposits with other banks (restricted cash of $0 at September 30, 2021 and December 31, 2020) | 638,003 | 144,152 |
Investment securities, available for sale, at fair value | 32,838 | 20,399 |
Investment securities, held to maturity, at amortized cost | 2,086 | 2,848 |
Other investments | 8,349 | 6,059 |
Loans receivable | 1,705,682 | 1,547,138 |
Allowance for loan losses | (20,222) | (19,262) |
Total loans receivable, net | 1,685,460 | 1,527,876 |
Premises and equipment, net | 17,231 | 17,108 |
Operating lease right-of-use assets | 6,372 | 7,120 |
Accrued interest receivable | 7,549 | 8,616 |
Bank-owned life insurance, net | 12,166 | 7,082 |
Deferred tax asset, net | 3,807 | 3,799 |
Other assets | 5,985 | 2,098 |
Total assets | 2,451,568 | 1,766,122 |
LIABILITIES | ||
Deposits | 2,223,540 | 1,421,307 |
Federal Home Loan Bank ("FHLB") advances | 24,999 | 24,999 |
Paycheck Protection Program Liquidity Facility | 0 | 153,716 |
Principal amount $25,000 (less unamortized debt issuance costs of $731) and $10,000 (less unamortized debt issuance costs of $7) at September 30, 2021 and December 31, 2020, respectively | 24,269 | 9,993 |
Principal amount $3,609 (less unamortized debt issuance costs of $23 and $25 at September 30, 2021 and December 31, 2020, respectively) | 3,586 | 3,584 |
Deferred compensation | 774 | 863 |
Accrued interest payable | 147 | 531 |
Operating lease liabilities | 6,583 | 7,323 |
Other liabilities | 6,584 | 3,589 |
Total liabilities | 2,290,482 | 1,625,905 |
SHAREHOLDERS’ EQUITY | ||
Authorized: 25,000,000 shares at September 30, 2021 and December 31, 2020; issued and outstanding: zero shares at September 30, 2021 and December 31, 2020 | ||
Authorized: 300,000,000 shares at September 30, 2021 and December 31, 2020; 12,012,107 shares at September 30, 2021 issued and outstanding and 11,954,327 shares at December 31, 2020 issued and outstanding | 88,997 | 87,815 |
Retained earnings | 72,083 | 52,368 |
Accumulated other comprehensive income, net of tax | 6 | 34 |
Total shareholders’ equity | 161,086 | 140,217 |
Total liabilities and shareholders’ equity | $ 2,451,568 | $ 1,766,122 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Restricted cash | $ 0 | $ 0 |
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 | 12,012,107 | 11,954,327 |
Common stock, shares, outstanding | 12,012,107 | 11,954,327 |
Subordinated Debt | ||
Principal amount | $ 25,000 | $ 10,000 |
Unamortized debt issuance cost | 731 | 7 |
Junior Subordinated Debentures | ||
Principal amount | 3,609 | 3,609 |
Unamortized debt issuance cost | $ 23 | $ 25 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST AND DIVIDEND INCOME | ||||
Interest and fees on loans | $ 19,383,000 | $ 16,244,000 | $ 56,978,000 | $ 44,025,000 |
Interest on interest earning deposits with other banks | 170,000 | 99,000 | 314,000 | 587,000 |
Interest on investment securities | 24,000 | 27,000 | 76,000 | 199,000 |
Dividends on other investments | 31,000 | 24,000 | 169,000 | 129,000 |
Total interest income | 19,608,000 | 16,394,000 | 57,537,000 | 44,940,000 |
INTEREST EXPENSE | ||||
Interest on deposits | 523,000 | 880,000 | 1,811,000 | 3,530,000 |
Interest on borrowed funds | 278,000 | 418,000 | 992,000 | 957,000 |
Total interest expense | 801,000 | 1,298,000 | 2,803,000 | 4,487,000 |
Net interest income | 18,807,000 | 15,096,000 | 54,734,000 | 40,453,000 |
PROVISION FOR LOAN LOSSES | 255,000 | 2,200,000 | 973,000 | 5,708,000 |
Net interest income after provision for loan losses | 18,552,000 | 12,896,000 | 53,761,000 | 34,745,000 |
NONINTEREST INCOME | ||||
Unrealized holding gain on equity securities, net | 1,472,000 | 1,472,000 | ||
Gain on sales of loans, net | 206,000 | 47,000 | 367,000 | 47,000 |
Gain on sale of branch, net | 1,263,000 | |||
Other income | 302,000 | 190,000 | 542,000 | 490,000 |
Total noninterest income | 6,132,000 | 1,942,000 | 13,898,000 | 6,133,000 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 9,961,000 | 5,971,000 | 26,560,000 | 16,869,000 |
Occupancy | 1,037,000 | 1,091,000 | 3,085,000 | 2,951,000 |
Software licenses, maintenance and subscriptions | 817,000 | 337,000 | 1,844,000 | 919,000 |
Legal and professional fees | 796,000 | 381,000 | 2,182,000 | 1,178,000 |
Data processing | 761,000 | 577,000 | 2,192,000 | 1,749,000 |
BaaS expense | 715,000 | 100,000 | 905,000 | 191,000 |
Excise taxes | 407,000 | 291,000 | 1,154,000 | 756,000 |
Federal Deposit Insurance Corporation ("FDIC") assessments | 400,000 | 148,000 | 820,000 | 292,000 |
Director and staff expenses | 274,000 | 156,000 | 812,000 | 613,000 |
Marketing | 130,000 | 52,000 | 344,000 | 280,000 |
Business development | 123,000 | 72,000 | 322,000 | 245,000 |
Other expense | 709,000 | 490,000 | 1,993,000 | 1,587,000 |
Total noninterest expense | 16,130,000 | 9,666,000 | 42,213,000 | 27,630,000 |
Income before provision for income taxes | 8,554,000 | 5,172,000 | 25,446,000 | 13,248,000 |
PROVISION FOR INCOME TAXES | 1,870,000 | 1,082,000 | 5,731,000 | 2,763,000 |
NET INCOME | $ 6,684,000 | $ 4,090,000 | $ 19,715,000 | $ 10,485,000 |
Basic earnings per common share | $ 0.56 | $ 0.34 | $ 1.65 | $ 0.88 |
Diluted earnings per common share | $ 0.54 | $ 0.34 | $ 1.58 | $ 0.86 |
Weighted average number of common shares outstanding: | ||||
Basic | 11,999,899 | 11,919,850 | 11,982,009 | 11,915,513 |
Diluted | 12,456,674 | 12,181,272 | 12,465,346 | 12,183,845 |
Deposit Service Charges and Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | $ 956,000 | $ 824,000 | $ 2,768,000 | $ 2,224,000 |
BaaS Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | 2,286,000 | 576,000 | 4,658,000 | 1,630,000 |
Loan Referral Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | 723,000 | 180,000 | 2,126,000 | 1,303,000 |
Mortgage Broker Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | $ 187,000 | $ 125,000 | $ 702,000 | $ 439,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME | $ 6,684 | $ 4,090 | $ 19,715 | $ 10,485 |
Securities available-for-sale | ||||
Unrealized holding (loss) gain during the period | 5 | (6) | (35) | 99 |
Income tax (expense) benefit related to unrealized holding gain (loss) | (1) | 1 | 7 | (21) |
OTHER COMPREHENSIVE (LOSS) INCOME, net of tax | 4 | (5) | (28) | 78 |
COMPREHENSIVE INCOME | $ 6,688 | $ 4,085 | $ 19,687 | $ 10,563 |
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, 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), net of tax | 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), net of tax | (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 | |||
Beginning balance at Dec. 31, 2020 | 140,217 | $ 87,815 | 52,368 | 34 |
Beginning balance, Shares at Dec. 31, 2020 | 11,954,327 | |||
Net income | 19,715 | 19,715 | ||
Issuance of restricted stock awards, Shares | 10,714 | |||
Vesting of restricted stock units, Shares | 7,851 | |||
Exercise of stock options | 280 | $ 280 | ||
Exercise of stock options, Shares | 39,215 | |||
Stock-based compensation | 902 | $ 902 | ||
Other comprehensive income (loss), net of tax | (28) | (28) | ||
Ending balance at Sep. 30, 2021 | 161,086 | $ 88,997 | 72,083 | 6 |
Ending balance, Shares at Sep. 30, 2021 | 12,012,107 | |||
Beginning balance at Jun. 30, 2021 | 154,100 | $ 88,699 | 65,399 | 2 |
Beginning balance, Shares at Jun. 30, 2021 | 12,007,669 | |||
Net income | 6,684 | 6,684 | ||
Exercise of stock options | 30 | $ 30 | ||
Exercise of stock options, Shares | 4,438 | |||
Stock-based compensation | 268 | $ 268 | ||
Other comprehensive income (loss), net of tax | 4 | 4 | ||
Ending balance at Sep. 30, 2021 | $ 161,086 | $ 88,997 | $ 72,083 | $ 6 |
Ending balance, Shares at Sep. 30, 2021 | 12,012,107 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 19,715,000 | $ 10,485,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 973,000 | 5,708,000 |
Depreciation and amortization | 1,170,000 | 965,000 |
(Gain) loss on disposition of fixed assets | 12,000 | |
Decrease in operating lease right-of-use assets | 789,000 | 1,129,000 |
Decrease in operating lease liabilities | (781,000) | (1,115,000) |
Gain on sales of loans | (367,000) | (47,000) |
Proceeds from sale of loans | 4,092,000 | 694,000 |
Net premium amortization (discount accretion) on investment securities | 21,000 | 36,000 |
Unrealized holding gain on equity investment | (1,472,000) | |
Stock-based compensation | 902,000 | 414,000 |
Gain on sale of branch | (1,263,000) | |
Increase in bank-owned life insurance value | (5,084,000) | (149,000) |
Deferred tax benefit | (1,000) | |
Net change in other assets and liabilities | (283,000) | (5,234,000) |
Net cash provided by operating activities | 18,411,000 | 12,898,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net increase in interest earning deposits with other banks | (493,851,000) | (84,130,000) |
Purchase of investment securities available for sale | (57,495,000) | (14,989,000) |
Change in other investments, net | (818,000) | (1,446,000) |
Principal paydowns of investment securities available-for-sale | 25,000 | 35,000 |
Principal paydowns of investment securities held-to-maturity | 737,000 | 945,000 |
Maturities and calls of investment securities available-for-sale | 45,000,000 | 23,000,000 |
Increase in loans receivable, net | (164,207,000) | (571,065,000) |
Net cash transfer for branch sale | (19,980,000) | |
Purchases of premises and equipment, net | (2,188,000) | (4,750,000) |
Net cash used by investing activities | (692,777,000) | (652,400,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in demand deposits, NOW and money market, and savings | 837,277,000 | 409,017,000 |
Net decrease in time deposits | (10,981,000) | (16,965,000) |
Net repayments from short term FHLB borrowing | (10,000,000) | |
Net advances from long term FHLB borrowing | 24,999,000 | |
Increase from subordinated debt proceeds | 24,263,000 | |
Decrease from subordinated debt repayment | (10,000,000) | |
Net (repayments) advances from Paycheck Protection Program Liquidity Facility | (153,716,000) | 202,595,000 |
Proceeds from exercise of stock options | 280,000 | 82,000 |
Net cash provided by financing activities | 687,123,000 | 609,728,000 |
NET CHANGE IN CASH, DUE FROM BANKS AND RESTRICTED CASH | 12,757,000 | (29,774,000) |
CASH, DUE FROM BANKS AND RESTRICTED CASH, beginning of year | 18,965,000 | 43,910,000 |
CASH, DUE FROM BANKS AND RESTRICTED CASH, end of quarter | 31,722,000 | 14,136,000 |
SUPPLEMENTAL SCHEDULE OF OPERATING AND INVESTING ACTIVITIES | ||
Interest paid | 3,187,000 | 4,314,000 |
Income taxes paid | 6,809,000 | 4,985,000 |
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS | ||
Fair value adjustment of securities available-for-sale, gross | (35,000) | $ 99,000 |
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 | 41,000 | |
Operating lease liabilities | $ (41,000) |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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 that is a member bank of the Federal Reserve system. Arlington Olympic LLC was formed in 2019 and owns the Company’s Arlington branch site, which the Bank leases from the LLC. The Company provides a full range of banking products and services to small and medium-sized businesses, professionals, and individuals throughout the greater Puget Sound area through its 14 branches in Snohomish, Island, and King Counties, the Internet, and its mobile banking application. The Bank’s main office and the headquarters of the Bank and Company are located in Everett, Washington. The Bank’s deposits are insured to applicable legal limits by the Federal Deposit Insurance Corporation (the “FDIC”). The Bank’s loans and deposits are largely within the greater Puget Sound area, with loans and deposits in our CCBX division expanding beyond the Puget Sound area, and the Bank’s primary funding source is deposits from customers. The CCBX division provides banking as a service (“BaaS”) that allows our broker-dealer and digital financial service partners to offer their customers banking services. The Bank’s CCDB division previously announced intent to collaborate with Google on a digital bank offering. However Google recently announced its intent to exit the digital bank space, so CCDB has shifted focus and will continue to explore other opportunities for growth in that market. The Bank is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (“Federal Reserve”) and the Washington State Department of Financial Institutions Division of Banks. The Federal Reserve also has regulatory and supervisory authority over the Company. Financial statement presentation - The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim reporting requirements and with instructions to Form 10-Q and Article 10 of Regulation S-X, and therefore do not include all the information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual report on Form 10-K as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 12, 2021. Operating results for the three and nine months ended September 30, 2021 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, the Bank and the LLC. All significant intercompany accounts have been eliminated in consolidation. Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that its critical accounting policies include determining the allowance for loan losses, the valuation of the Company’s deferred tax assets, and fair value of financial instruments. Actual results could differ significantly from those estimates. Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2021 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. On October 4, 2021, the Company granted 100,000 share of performance-based restricted stock units to an employee pursuant to the Coastal Financial Corporation 2018 Omnibus Incentive plan. A maximum of 100,000 shares vest on October 4, 2027, the quantity of which is dependent upon achievement of specified performance goals. The Company is not aware of any other 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, 2021 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Standards | Note 2 - Recent accounting standards Recent Accounting Guidance Under Accounting Standards Codification (“ASC”) Subtopic 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, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 3 - Investment Securities The amortized cost and fair values of investments in debt securities at the date indicated are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) September 30, 2021 Available-for-sale U.S. Treasury securities $ 32,499 $ - $ (1 ) $ 32,498 U.S. Agency collateralized mortgage obligations 74 3 - 77 U.S. Agency residential mortgage-backed securities 5 - - 5 Municipal bonds 253 5 - 258 Total available-for-sale securities 32,831 8 (1 ) 32,838 Held-to-maturity U.S. Agency residential mortgage-backed securities 2,086 96 - 2,182 Total investment securities $ 34,917 $ 104 $ (1 ) $ 35,020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) December 31, 2020 Available-for-sale U.S. Treasury securities $ 19,997 $ 31 $ - $ 20,028 U.S. Agency collateralized mortgage obligations 96 4 - 100 U.S. Agency residential mortgage-backed securities 10 - - 10 Municipal bonds 254 7 - 261 Total available-for-sale securities 20,357 42 - 20,399 Held-to-maturity U.S. Agency residential mortgage-backed securities 2,848 109 - 2,957 Total investment securities $ 23,205 $ 151 $ - $ 23,356 The amortized cost and fair value of debt securities at September 30, 2021, 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, 2021 Amounts maturing in One year or less $ 32,499 $ 32,498 $ - $ - After one year through five years 253 258 - - 32,752 32,756 - - U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations 79 82 2,086 2,182 $ 32,831 $ 32,838 $ 2,086 $ 2,182 Investments in debt securities with an amortized cost of $32.8 million and $22.0 million at September 30, 2021 and December 31, 2020, respectively, were pledged to secure public deposits and for other purposes as required or permitted by law. During the quarter ended September 30, 2021, six U.S. Treasury Bill s w ere purchased for $ 37.5 million, to replace maturing securities and to pledge as securi ty for public funds. During the nine months ended September 30, 2021, a total of ten U.S. Treasury Bills were purchased for a total of $ 57.5 million, to replace maturing securities and to pledge as security for public funds. There were no sales of securities during the three or nine months ended September 30, 2021 or 2020. There were four securities with a $1,000 unrealized loss as of September 30, 2021. There were no gross unrealized losses or securities in an unrealized loss position as of December 31, 2020. The following table shows the investments’ gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in thousands) September 30, 2021 Available-for-sale U.S. Treasury securities $ 17,499 $ 1 $ - $ - $ 17,499 $ 1 Total investment securities $ 17,499 $ 1 $ - $ - $ 17,499 $ 1 Management has evaluated the above securities and does not believe that any individual unrealized loss as of September 30, 2021, represents an other-than-temporary impairment (“OTTI”). The decline in fair market value of these securities was generally due to changes in market interest rates since purchase and was not related to any known decline in the credit worthiness of the issuer. Management does not intend to sell any impaired securities nor does evidence suggest that it is more likely than not that management will be required to sell any impaired securities. Management believes there is a high probability of collecting all contractual amounts due, because the majority of the securities in the portfolio are backed by government agencies or government sponsored enterprises. However, a recovery in value may not occur for some time, if at all, and may be delayed for greater than the one year time horizon or perhaps even until maturity. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
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 December 31, 2021 2020 Commercial and industrial loans $ 536,855 $ 539,200 Real estate loans: Construction, land, and land development 158,710 94,423 Residential real estate 170,167 143,869 Commercial real estate 837,342 774,925 Consumer and other loans 17,140 3,916 Gross loans receivable 1,720,214 1,556,333 Net deferred origination fees and premiums (14,532 ) (9,195 ) Loans receivable $ 1,705,682 $ 1,547,138 Included in commercial and industrial loans are Paycheck Protection Program (“PPP”) loans of $267.3 million at September 30, 2021 and $365.8 million at December 31, 2020. PPP loans are 100% guaranteed by the Small Business Administration (“SBA”). PPP loans had net deferred origination fees and premiums of $9.4 million as of September 30, 2021, largely contributing to the increase in net deferred origination fees and premiums, compared to December 31, 2020. Also included in commercial and industrial loans as of September 30, 2021 and December 31, 2020, is $161.5 million and $65.6 million, respectively in capital call lines, provided to venture capital firms through one of our BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards by our BaaS client and the underwriting is reviewed and approved by the Bank on every loan. Included in consumer and other loans are overdrafts of $ and $ 31,000 at September 30, 2021 and December 31, 2020, respectively. The Company has pledged loans totaling $ 210.8 million and $ 326.8 million at September 30, 2021 and December 31, 2020, respectively, for borrowing lines at the FHLB and Federal Reserve Bank. Paycheck Protection Program Liquidity Facility (“PPPLF”) borrowings require that an equal amount of PPP loans be pledged for any outstanding balance. All PPPLF borrowings were paid in June 2021, and there were no outstanding PPPLF borrowings as of September 30, 2021, compared to a balance of $ 153.7 million at December 31, 2020 . As a result the amount of pledged loans as of September 30, 2021 decreased . The last day to take new advances on the PPPLF was July 31, 2021. The balance of SBA and United States Department of Agriculture (“USDA”) loans and participations sold and serviced for others totaled was $20.4 million and $20.6 million at September 30, 2021 and December 31, 2020, respectively. The balance of Main Street Lending Program (“MSLP”) loans participated and serviced totaled $56.3 million, with $3.0 million in MSLP loans on the balance sheet and included in commercial and industrial loans at September 30, 2021 and December 31, 2020. The MSLP ceased funding new loans on January 8, 2021. The Company, at times, purchases individual loans at fair value as of the acquisition date. Purchased loans with remaining balances totaled $14.8 million and $19.3 million as of September 30, 2021 and December 31, 2020, respectively. Unamortized premiums totaled $242,000 and $306,000 as of September 30, 2021 and December 31, 2020, respectively, and are amortized into interest income over the life of the loans. The Company has purchased participation loans with remaining balances totaling $35.9 million and $44.9 million as of September 30, 2021 and December 31, 2020, 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. The Company also originates capital call lines, which are provided to venture capital firms through one of our BaaS clients. Also included in this category are SBA 7(a) loans, which includes PPP loans. PPP loans have a contractual rate of 1.0%, with maturity terms of two to five years, are unsecured, and 100% guaranteed by the SBA. PPP loans may be forgiven by the SBA if loan proceeds are used for certain purposes. To bolster the effectiveness of the SBA’s PPP loan program, the Federal Reserve PPPLF supplied liquidity to participating financial institutions through term financing backed by PPP loans to small businesses. The PPPLF, which expired on July 31, 2021, extended credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value. The interest rate was 0.35% and as PPP loans were paid down, the PPPLF borrowing line also had to 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. Multi-family loans are included in commercial real estate. Commercial real estate (includes owner occupied and nonowner occupied) loans – Commercial real estate loans include various types of loans for which the Company holds real property as collateral. We make commercial mortgage loans collateralized by owner-occupied and non-owner-occupied real estate, as well as multi-family residential loans. The primary risks of commercial real estate loans include the borrower’s inability to pay, material decreases in the value of the collateralized real estate and significant increases in interest rates, which may make the real estate loan unprofitable. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Consumer and other loans – The 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. Also included in consumer and other loans is $14.7 million in consumer loans originated through CCBX or BaaS clients as of September 30, 2021, compared to $67,000 as of December 31, 2020. The increase is the result of growth in the CCBX or BaaS division. 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, 2021 Commercial and industrial loans $ 307 $ 407 $ 714 $ 536,141 $ 536,855 $ - Real estate loans: Construction, land and land development - - - 158,710 158,710 - Residential real estate 197 57 254 169,913 170,167 1 Commercial real estate - - - 837,342 837,342 - Consumer and other loans 416 122 538 16,602 17,140 122 $ 920 $ 586 $ 1,506 $ 1,718,708 $ 1,720,214 $ 123 Less net deferred origination fees and premiums (14,532 ) Loans receivable $ 1,705,682 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, 2020 Commercial and industrial loans $ 133 $ 537 $ 670 $ 538,530 $ 539,200 $ - Real estate loans: Construction, land and land development 1 - 1 94,422 94,423 - Residential real estate 1,108 60 1,168 142,701 143,869 - Commercial real estate - - - 774,925 774,925 - Consumer and other loans - - - 3,916 3,916 - $ 1,242 $ 597 $ 1,839 $ 1,554,494 1,556,333 $ - Less net deferred origination fees and premiums (9,195 ) Loans receivable $ 1,547,138 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, 2021 Commercial and industrial loans $ 561 $ 355 $ 206 $ 561 $ 166 Real estate loans: Residential real estate 56 56 - 56 - Total $ 617 $ 411 $ 206 $ 617 $ 166 December 31, 2020 Commercial and industrial loans $ 834 $ 537 $ - $ 537 $ - Real estate loans: Residential real estate 188 175 - 175 - Total $ 1,022 $ 712 $ - $ 712 $ - 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, 2021 and 2020: Three Months Ended September 30, 2021 September 30, 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 489 $ - $ 657 $ - Real estate loans: Construction, land and land development - - 3,270 - Residential real estate 111 - 151 - Commercial real estate - - 409 - Total $ 600 $ - $ 4,487 $ - Nine Months Ended September 30, 2021 September 30, 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 498 $ - $ 748 $ - Real estate loans: Construction, land and land development - - 1,666 - Residential real estate 143 - 153 - Commercial real estate - - 204 - Consumer and other loans Total $ 641 $ - $ 2,771 $ - 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, 2021 and September 30, 2020 that qualified as TDRs. The Company has no commitments to loan additional funds to borrowers whose loans were classified as TDRs at September 30, 2021, as there were no outstanding TDRs at September 30, 2021. Pursuant to guidance from the federal bank regulatory agencies, the Company deferred or modified payments on existing loans to assist customers financially during the COVID-19 pandemic and economic shutdown. As of September 30, 2021 all deferred and modified loans during the COVID-19 pandemic have either returned to active status or paid off. In accordance with GAAP, the CARES Act, as amended by the Consolidated Appropriations Act, 2021, and interagency guidance issued on March 22, 2020 and April 7, 2020, these short-term modifications, made on a good faith basis in response to the COVID-19 pandemic to borrowers that were current prior to any relief, were not considered TDRs. 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 December 31, 2021 2020 Commercial and industrial loans $ 561 $ 537 Real estate loans: Residential real estate 56 175 Total nonaccrual loans $ 617 $ 712 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, 2021 Commercial and industrial loans $ 535,327 $ 891 $ 637 $ - $ 536,855 Real estate loans: Construction, land, and land development 158,710 - - - 158,710 Residential real estate 169,982 129 56 - 170,167 Commercial real estate 833,305 4,037 - - 837,342 Consumer and other loans 17,017 - 123 - 17,140 $ 1,714,341 $ 5,057 $ 816 $ - 1,720,214 Less net deferred origination fees (14,532 ) Loans receivable $ 1,705,682 December 31, 2020 Commercial and industrial loans $ 538,149 $ 397 $ 654 $ - $ 539,200 Real estate loans: Construction, land, and land development 94,423 - - - 94,423 Residential real estate 143,540 154 175 - 143,869 Commercial real estate 763,647 11,278 - - 774,925 Consumer and other loans 3,916 - - - 3,916 $ 1,543,675 $ 11,829 $ 829 $ - 1,556,333 Less net deferred origination fees (9,195 ) Loans receivable $ 1,547,138 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 $267.3 million in PPP loans as of September 30, 2021 are 100% guaranteed by the SBA and were not subject to the allowance analysis or assigned an allowance. The Company’s provision for credit losses of $255,000 and $973,000 for the three and nine months ended September 30, 2021, is primarily the result of growth in the loan portfolio. The $2.2 million and $5.7 million provision for credit losses during the three and nine months ended September 30, 2020, is 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, 2021: 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, 2021 Balance, June 30, 2021 $ 3,317 $ 4,520 $ 3,302 $ 8,057 $ 84 $ 686 $ 19,966 Provision for loan losses or (recapture) 8 1,410 (49 ) (1,420 ) 11 295 255 3,325 5,930 3,253 6,637 95 981 20,221 Loans charged-off - - - - (31 ) - (31 ) Recoveries of loans previously charged-off 16 - - - 16 - 32 Net (charge-offs) recoveries 16 - - - (15 ) - 1 Balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 Nine Months Ended September 30, 2021 Balance, December 31, 2020 $ 3,353 $ 3,545 $ 3,410 $ 7,810 $ 127 $ 1,017 $ 19,262 Provision for loan losses or (recapture) (17 ) 2,385 (157 ) (1,173 ) (29 ) (36 ) 973 3,336 5,930 3,253 6,637 98 981 20,235 Loans charged-off (16 ) - - - (45 ) - (61 ) Recoveries of loans previously charged-off 21 - - - 27 - 48 Net (charge-offs) recoveries 5 - - - (18 ) - (13 ) Balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 As of September 30, 2021 ALLL amounts allocated to Individually evaluated for impairment $ 166 $ - $ - $ - $ - $ - $ 166 Collectively evaluated for impairment 3,175 5,930 3,253 6,637 80 981 20,056 ALLL balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 Loans individually evaluated for impairment $ 561 $ - $ 56 $ - $ - $ 616 Loans collectively evaluated for impairment 536,294 158,710 170,111 837,342 17,140 1,719,598 Loan balance, September 30, 2021 $ 536,855 $ 158,710 $ 170,167 $ 837,342 $ 17,140 $ 1,720,214 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 table summarizes the allocation of the ALLL attributed to various segments in the loan portfolio as of December 31, 2020. 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, 2020 ALLL amounts allocated to Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 3,353 3,545 3,410 7,810 127 1,017 19,262 ALLL balance, December 31, 2020 $ 3,353 $ 3,545 $ 3,410 $ 7,810 $ 127 $ 1,017 $ 19,262 Loans individually evaluated for impairment $ 537 $ - $ 175 $ - $ - $ 712 Loans collectively evaluated for impairment 538,663 94,423 143,694 774,925 3,916 1,555,621 Loan balance, December 31, 2020 $ 539,200 $ 94,423 $ 143,869 $ 774,925 $ 3,916 $ 1,556,333 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Deposits | Note 5 - Deposits The composition of consolidated deposits consisted of the following at the periods indicated: September December 31, 2021 2020 (dollars in thousands) Demand, noninterest bearing $ 1,296,443 $ 592,261 NOW and money market 755,810 658,323 Savings 96,192 77,611 Total core deposits 2,148,445 1,328,195 BaaS-brokered deposits 28,396 33,482 Time deposits less than $250,000 32,687 41,145 Time deposits $250,000 and over 14,012 18,485 Total deposits $ 2,223,540 $ 1,421,307 The following table presents the maturity distribution of time deposits as of September 30, 2021 (dollars in thousands): (dollars in thousands) Twelve months $ 35,905 One to two years 5,977 Two to three years 2,744 Three to four years 1,010 Four to five years 1,063 $ 46,699 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 6 - Leases The Company has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. Operating lease right-of-use (“ROU”) assets represent a right to use an underlying asset for the contractual lease term. Operating lease liabilities represent an obligation to make lease payments arising from the lease. An operating lease ROU asset and operating lease liability will be recognized for any new operating leases at the commencement of the new lease. The Company’s leases do not provide an implicit interest rate, therefore the Company used its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine the present value of operating lease liabilities. No leases renewed during the three months ended September 30, 2021 and one lease renewed during the nine months ended September 30, 2021. 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, 2021, the Company does not have any leases that have not yet commenced. At September 30, 2021, lease expiration dates ranged from three months to 23.4 years, with additional renewal options on certain leases typically ranging from 5 to 10 years. At September 30, 2021, the weighted average remaining lease term for the Company’s operating leases was 8.6 years. Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $343,000 and $461,000, respectively, for the three months ended September 30, 2021 and 2020 and $1.0 million and $1.1 million for the nine months ended September 30, 2021 and 2020, respectively. 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, 2021: September 2021 (dollars in thousands) October 1, 2021 to December 31, 2021 $ 318 2022 1,279 2023 1,272 2024 864 2025 713 2026 and thereafter 3,209 Total lease payments 7,655 Less: amounts representing interest 1,072 Present value of lease liabilities $ 6,583 The following table presents the components of total lease expense and operating cash flows for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September September September 30, September 30, 2021 2020 2021 2020 (dollars in thousands) Lease expense: Operating lease expense $ 321 $ 321 $ 962 $ 983 Variable lease expense 37 167 108 239 Total lease expense (1) $ 358 $ 488 $ 1,070 $ 1,222 Cash paid: Cash paid reducing operating lease liabilities $ 356 $ 484 $ 1,061 $ 1,206 (1) Included in net occupancy expense in the Condensed Consolidated Statements of Income (Unaudited). The Company entered into a five-year |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
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. On May 24, 2021, the Company’s shareholders approved the First Amendment to the 2018 Plan, which increased the authorized plan shares by 600,000. The 2018 Plan replaced 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 those plans. Shares available to be granted under the 2018 Plan totaled 769,928 at September 30, 2021. Stock Option Awards The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatilities are based on historical volatility of the Company’s stock and other factors. The Company uses the vesting term and contractual life to determine the expected life. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation expense related to unvested stock option awards is reversed at date of forfeiture. There were no new stock options granted in the three and nine months ended September 30, 2021 and 2020. A summary of stock option activity under the 2018 Plan and 2006 Plan during the nine months ended September 30, 2021: 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, 2020 749,397 $ 7.75 5.04 $ 9,933 Granted - - - Exercised (39,215 ) $ 7.15 - Forfeited or expired - - - Outstanding at September 30, 2021 710,182 $ 7.78 4.28 $ 17,103 Vested or expected to vest at September 30, 2021 710,182 $ 7.78 4.28 $ 17,103 Exercisable at September 30, 2021 364,500 $ 6.63 3.19 $ 9,198 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, 2021 was $101,000 and $775,000, respectively, and was $28,000 and $121,000 for the three and nine months ended September 30, 2020, respectively. As of September 30, 2021, there was $1.6 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 6.1 years. Compensation expense recorded related to stock options was $92,000 and $273,000 for the three and nine months ended September 30, 2021, respectively and $94,000 and $281,000 for the three and nine months ended September 30, 2020, respectively. Restricted Stock Units In January 2021, the Company granted 84,258 restricted stock units under the 2018 Plan to employees, which vest ratably over 5 years. In April 2021, the Company granted 1,000 restricted stock units under the 2018 Plan to an employee, which vest ratably over 5 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, 2021, there was $2.8 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 5.9 years. Compensation expense recorded related to restricted stock units was $133,000 and $367,000 for the three and nine months ended September 30, 2021, respectively and $39,000 and $96,000 for the three and nine months ended September 30, 2020, respectively. A summary of the Company’s nonvested shares at September 30, 2021 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, 2020 90,249 $ 17.25 $ 352 Granted 85,258 $ 20.99 Forfeited (360 ) $ 20.47 Vested (7,851 ) $ 17.73 Nonvested shares at September 30, 2021 167,296 $ 19.12 $ 2,246 Restricted Stock Awards Employees In January 2021, there were 5,978 shares granted to an employee at an estimated fair value of $20.91 per share, vesting immediately. 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, 2021, there was $56,000 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 6.3 years. Compensation expense recorded related to restricted stock awards was $3,000 and $132,000 for the three and nine months ended September 30, 2021, respectively and $2,000 and $5,000 for the three and nine months ended September 30, 2020, respectively. Director’s Stock Compensation Stock was previously granted to directors who attended at least 75% of the scheduled board meetings during the prior year. Grants cliff vest over one or 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. Eligible directors are granted stock with a total market value of $15,000, and the Board Chair is granted stock with a total market value of $25,000. Stock will be granted as of each annual meeting date and will cliff vest one day prior to the next annual meeting date. For stock granted in 2020, $5,000 was subject to a two-year On May 24, 2021, 4,736 new shares were granted to nine directors at an estimated fair value of $30.67 per share, and will cliff vest one day prior to the 2022 annual shareholder meeting date. As of September 30, 2021, there was $91,000 of total unrecognized compensation expense related to director restricted stock awards. Director compensation expense recorded related to the 2018 Plan totaled $43,000 and $133,000 for the three and nine months ended September 30, 2021, respectively and $8,000 and $26,000 for the three and nine months ended September 30, 2020, respectively. A summary of the Company’s nonvested shares at September 30, 2021 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, 2020 14,377 $ 16.15 $ 70 Granted 10,714 $ 25.22 Forfeited - $ - Vested (14,888 ) $ 17.46 Nonvested shares at September 30, 2021 10,203 $ 23.78 $ 82 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
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 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 $ 31,722 $ 31,722 $ 31,722 $ - $ - Interest earning deposits with other banks 638,003 638,003 638,003 - - Investment securities 34,924 35,020 32,498 2,522 - Other investments 8,349 8,349 - 6,027 2,322 Loans receivable 1,685,460 1,682,602 - - 1,682,602 Accrued interest receivable 7,549 7,549 - 7,549 - Financial liabilities Deposits $ 2,223,540 2,223,498 $ - $ 2,223,498 $ - FHLB advances 24,999 24,619 - 24,619 - Subordinated debt 24,269 22,021 - 22,021 - Junior subordinated debentures 3,586 2,745 - 2,745 - Accrued interest payable 147 147 - 147 - December 31, 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 $ 18,965 $ 18,965 $ 18,965 $ - $ - Interest earning deposits with other banks 144,152 144,152 144,152 - - Investment securities 23,247 23,356 20,028 3,328 - Other investments 6,059 6,059 - 5,209 850 Loans receivable, net 1,527,876 1,535,541 - - 1,535,541 Accrued interest receivable 8,616 8,616 - 8,616 - Financial liabilities Deposits $ 1,421,307 $ 1,421,534 $ - $ 1,421,534 $ - Paycheck Protection Program Liquidity Facility 153,716 153,716 - 153,716 - FHLB advances 24,999 24,787 - 24,787 - Subordinated debt 9,993 9,913 - 9,913 - Junior subordinated debentures 3,584 2,707 - 2,707 - Accrued interest payable 531 531 - 531 - 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, 2021 Available-for-sale U.S. Treasury securities $ 32,498 $ - $ - $ 32,498 U.S. Agency collateralized mortgage obligations - 77 - 77 U.S. Agency residential mortgage-backed securities - 5 - 5 Municipals - 258 - 258 $ 32,498 $ 340 $ - $ 32,838 December 31, 2020 Available-for-sale U.S. Treasury securities $ 20,028 $ - $ - $ 20,028 U.S. Agency collateralized mortgage obligations - 100 - 100 U.S. Agency residential mortgage-backed securities - 10 - 10 Municipals - 261 - 261 $ 20,028 $ 371 $ - $ 20,399 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, 2021 and December 31, 2020. 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 presents the carrying value of equity securities without readily determinable fair values, as of September 30, 2021, with adjustments recorded during the periods presented for those securities with observable price changes. For the Three Months Ended For the Nine Months Ended September 30, September 30, (Dollars in thousands) 2021 2020 2021 2020 Carrying value, beginning of period $ 850 $ 750 $ 850 $ 500 Addition of equity securities - - - 250 Upward carrying value changes 1,472 - 1,472 - Carrying value, end of period $ 2,322 $ 750 $ 2,322 $ 750 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 Weighted Average Rate December 31, 2020 Weighted Average Rate Impaired loans Collateral valuations Discount to appraised value 9% 9% 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, 2021 Impaired loans $ - $ - $ 451 $ 451 Equity securities 2,322 2,322 Total $ - $ - $ 2,773 $ 2,773 December 31, 2020 Impaired loans $ - $ - $ 712 $ 712 Equity securities 850 850 Total $ - $ - $ 1,562 $ 1,562 The amounts disclosed above represent the fair values at the time the nonrecurring fair value measurements were made, and not necessarily the fair value as of the dates reported on. Impaired loans - A loan is considered impaired when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. Impairment is measured based on the fair value of the underlying collateral or the discounted cash expected future cash flows. Subsequent changes in the value of impaired loans are included within the provision for loan losses in the same manner in which impairment initially was recognized or as a reduction in the provision that would otherwise be reported. Impaired loans are evaluated quarterly to determine if valuation adjustments should be recorded. The need for valuation adjustments arises when observable market prices or current appraised values of collateral indicate a shortfall in collateral value compared to current carrying values of the related loan. If the Company determines that the value of the impaired loan is less than the carrying value of the loan, the Company either establishes an impairment reserve as a specific component of the allowance for loan losses or charges off the impairment amount. These valuation adjustments are considered nonrecurring fair value adjustments. Equity securities – The Company measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer, with price changes recognized in earnings. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 September 30, 2020 September 30, 2021 September 30, 2020 (dollars in thousands, except share data) Net Income $ 6,684 $ 4,090 $ 19,715 $ 10,485 Basic weighted average number common shares outstanding 11,999,899 11,919,850 11,982,009 11,915,513 Dilutive effect of share-based compensation 456,775 261,422 483,337 268,332 Diluted weighted average number common shares outstanding 12,456,674 12,181,272 12,465,346 12,183,845 Basic earnings per share $ 0.56 $ 0.34 $ 1.65 $ 0.88 Diluted earnings per share $ 0.54 $ 0.34 $ 1.58 $ 0.86 Antidilutive stock options and restricted stock outstanding 160,668 224,177 160,668 224,177 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, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of operations - Coastal Financial Corporation (“Corporation” or “Company”) is a registered bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC (“LLC”). The Company is a Washington state corporation that was organized in 2003. The Bank was incorporated and commenced operations in 1997 and is a Washington state-chartered commercial bank that is a member bank of the Federal Reserve system. Arlington Olympic LLC was formed in 2019 and owns the Company’s Arlington branch site, which the Bank leases from the LLC. The Company provides a full range of banking products and services to small and medium-sized businesses, professionals, and individuals throughout the greater Puget Sound area through its 14 branches in Snohomish, Island, and King Counties, the Internet, and its mobile banking application. The Bank’s main office and the headquarters of the Bank and Company are located in Everett, Washington. The Bank’s deposits are insured to applicable legal limits by the Federal Deposit Insurance Corporation (the “FDIC”). The Bank’s loans and deposits are largely within the greater Puget Sound area, with loans and deposits in our CCBX division expanding beyond the Puget Sound area, and the Bank’s primary funding source is deposits from customers. The CCBX division provides banking as a service (“BaaS”) that allows our broker-dealer and digital financial service partners to offer their customers banking services. The Bank’s CCDB division previously announced intent to collaborate with Google on a digital bank offering. However Google recently announced its intent to exit the digital bank space, so CCDB has shifted focus and will continue to explore other opportunities for growth in that market. The Bank is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (“Federal Reserve”) and the Washington State Department of Financial Institutions Division of Banks. The Federal Reserve also has regulatory and supervisory authority over the Company. |
Financial Statement 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, 2021. Operating results for the three and nine months ended September 30, 2021 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, the Bank and the LLC. All significant intercompany accounts have been eliminated in consolidation. |
Estimates | Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that its critical accounting policies include determining the allowance for loan losses, the valuation of the Company’s deferred tax assets, and fair value of financial instruments. Actual results could differ significantly from those estimates. |
Subsequent Events | Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2021 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. On October 4, 2021, the Company granted 100,000 share of performance-based restricted stock units to an employee pursuant to the Coastal Financial Corporation 2018 Omnibus Incentive plan. A maximum of 100,000 shares vest on October 4, 2027, the quantity of which is dependent upon achievement of specified performance goals. The Company is not aware of any other 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 Under Accounting Standards Codification (“ASC”) Subtopic 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, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost and Fair Values of Investments in Debt Securities | The amortized cost and fair values of investments in debt securities at the date indicated are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) September 30, 2021 Available-for-sale U.S. Treasury securities $ 32,499 $ - $ (1 ) $ 32,498 U.S. Agency collateralized mortgage obligations 74 3 - 77 U.S. Agency residential mortgage-backed securities 5 - - 5 Municipal bonds 253 5 - 258 Total available-for-sale securities 32,831 8 (1 ) 32,838 Held-to-maturity U.S. Agency residential mortgage-backed securities 2,086 96 - 2,182 Total investment securities $ 34,917 $ 104 $ (1 ) $ 35,020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) December 31, 2020 Available-for-sale U.S. Treasury securities $ 19,997 $ 31 $ - $ 20,028 U.S. Agency collateralized mortgage obligations 96 4 - 100 U.S. Agency residential mortgage-backed securities 10 - - 10 Municipal bonds 254 7 - 261 Total available-for-sale securities 20,357 42 - 20,399 Held-to-maturity U.S. Agency residential mortgage-backed securities 2,848 109 - 2,957 Total investment securities $ 23,205 $ 151 $ - $ 23,356 |
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, 2021 Amounts maturing in One year or less $ 32,499 $ 32,498 $ - $ - After one year through five years 253 258 - - 32,752 32,756 - - U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations 79 82 2,086 2,182 $ 32,831 $ 32,838 $ 2,086 $ 2,182 |
Summary of Investment Securities Continuous Unrealized Loss Position | The following table shows the investments’ gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in thousands) September 30, 2021 Available-for-sale U.S. Treasury securities $ 17,499 $ 1 $ - $ - $ 17,499 $ 1 Total investment securities $ 17,499 $ 1 $ - $ - $ 17,499 $ 1 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The composition of the loan portfolio is as follows as of the periods indicated: September December 31, 2021 2020 Commercial and industrial loans $ 536,855 $ 539,200 Real estate loans: Construction, land, and land development 158,710 94,423 Residential real estate 170,167 143,869 Commercial real estate 837,342 774,925 Consumer and other loans 17,140 3,916 Gross loans receivable 1,720,214 1,556,333 Net deferred origination fees and premiums (14,532 ) (9,195 ) Loans receivable $ 1,705,682 $ 1,547,138 |
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, 2021 Commercial and industrial loans $ 307 $ 407 $ 714 $ 536,141 $ 536,855 $ - Real estate loans: Construction, land and land development - - - 158,710 158,710 - Residential real estate 197 57 254 169,913 170,167 1 Commercial real estate - - - 837,342 837,342 - Consumer and other loans 416 122 538 16,602 17,140 122 $ 920 $ 586 $ 1,506 $ 1,718,708 $ 1,720,214 $ 123 Less net deferred origination fees and premiums (14,532 ) Loans receivable $ 1,705,682 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, 2020 Commercial and industrial loans $ 133 $ 537 $ 670 $ 538,530 $ 539,200 $ - Real estate loans: Construction, land and land development 1 - 1 94,422 94,423 - Residential real estate 1,108 60 1,168 142,701 143,869 - Commercial real estate - - - 774,925 774,925 - Consumer and other loans - - - 3,916 3,916 - $ 1,242 $ 597 $ 1,839 $ 1,554,494 1,556,333 $ - Less net deferred origination fees and premiums (9,195 ) Loans receivable $ 1,547,138 |
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, 2021 Commercial and industrial loans $ 561 $ 355 $ 206 $ 561 $ 166 Real estate loans: Residential real estate 56 56 - 56 - Total $ 617 $ 411 $ 206 $ 617 $ 166 December 31, 2020 Commercial and industrial loans $ 834 $ 537 $ - $ 537 $ - Real estate loans: Residential real estate 188 175 - 175 - Total $ 1,022 $ 712 $ - $ 712 $ - |
Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following tables summarize the Company’s average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 September 30, 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 489 $ - $ 657 $ - Real estate loans: Construction, land and land development - - 3,270 - Residential real estate 111 - 151 - Commercial real estate - - 409 - Total $ 600 $ - $ 4,487 $ - Nine Months Ended September 30, 2021 September 30, 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 498 $ - $ 748 $ - Real estate loans: Construction, land and land development - - 1,666 - Residential real estate 143 - 153 - Commercial real estate - - 204 - Consumer and other loans Total $ 641 $ - $ 2,771 $ - |
Analysis of Nonaccrual Loans by Category | An analysis of nonaccrual loans by category consisted of the following at the periods indicated: September December 31, 2021 2020 Commercial and industrial loans $ 561 $ 537 Real estate loans: Residential real estate 56 175 Total nonaccrual loans $ 617 $ 712 |
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, 2021 Commercial and industrial loans $ 535,327 $ 891 $ 637 $ - $ 536,855 Real estate loans: Construction, land, and land development 158,710 - - - 158,710 Residential real estate 169,982 129 56 - 170,167 Commercial real estate 833,305 4,037 - - 837,342 Consumer and other loans 17,017 - 123 - 17,140 $ 1,714,341 $ 5,057 $ 816 $ - 1,720,214 Less net deferred origination fees (14,532 ) Loans receivable $ 1,705,682 December 31, 2020 Commercial and industrial loans $ 538,149 $ 397 $ 654 $ - $ 539,200 Real estate loans: Construction, land, and land development 94,423 - - - 94,423 Residential real estate 143,540 154 175 - 143,869 Commercial real estate 763,647 11,278 - - 774,925 Consumer and other loans 3,916 - - - 3,916 $ 1,543,675 $ 11,829 $ 829 $ - 1,556,333 Less net deferred origination fees (9,195 ) Loans receivable $ 1,547,138 |
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, 2021: 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, 2021 Balance, June 30, 2021 $ 3,317 $ 4,520 $ 3,302 $ 8,057 $ 84 $ 686 $ 19,966 Provision for loan losses or (recapture) 8 1,410 (49 ) (1,420 ) 11 295 255 3,325 5,930 3,253 6,637 95 981 20,221 Loans charged-off - - - - (31 ) - (31 ) Recoveries of loans previously charged-off 16 - - - 16 - 32 Net (charge-offs) recoveries 16 - - - (15 ) - 1 Balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 Nine Months Ended September 30, 2021 Balance, December 31, 2020 $ 3,353 $ 3,545 $ 3,410 $ 7,810 $ 127 $ 1,017 $ 19,262 Provision for loan losses or (recapture) (17 ) 2,385 (157 ) (1,173 ) (29 ) (36 ) 973 3,336 5,930 3,253 6,637 98 981 20,235 Loans charged-off (16 ) - - - (45 ) - (61 ) Recoveries of loans previously charged-off 21 - - - 27 - 48 Net (charge-offs) recoveries 5 - - - (18 ) - (13 ) Balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 As of September 30, 2021 ALLL amounts allocated to Individually evaluated for impairment $ 166 $ - $ - $ - $ - $ - $ 166 Collectively evaluated for impairment 3,175 5,930 3,253 6,637 80 981 20,056 ALLL balance, September 30, 2021 $ 3,341 $ 5,930 $ 3,253 $ 6,637 $ 80 $ 981 $ 20,222 Loans individually evaluated for impairment $ 561 $ - $ 56 $ - $ - $ 616 Loans collectively evaluated for impairment 536,294 158,710 170,111 837,342 17,140 1,719,598 Loan balance, September 30, 2021 $ 536,855 $ 158,710 $ 170,167 $ 837,342 $ 17,140 $ 1,720,214 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 table summarizes the allocation of the ALLL attributed to various segments in the loan portfolio as of December 31, 2020. 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, 2020 ALLL amounts allocated to Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 3,353 3,545 3,410 7,810 127 1,017 19,262 ALLL balance, December 31, 2020 $ 3,353 $ 3,545 $ 3,410 $ 7,810 $ 127 $ 1,017 $ 19,262 Loans individually evaluated for impairment $ 537 $ - $ 175 $ - $ - $ 712 Loans collectively evaluated for impairment 538,663 94,423 143,694 774,925 3,916 1,555,621 Loan balance, December 31, 2020 $ 539,200 $ 94,423 $ 143,869 $ 774,925 $ 3,916 $ 1,556,333 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Composition of Consolidated Deposits | The composition of consolidated deposits consisted of the following at the periods indicated: September December 31, 2021 2020 (dollars in thousands) Demand, noninterest bearing $ 1,296,443 $ 592,261 NOW and money market 755,810 658,323 Savings 96,192 77,611 Total core deposits 2,148,445 1,328,195 BaaS-brokered deposits 28,396 33,482 Time deposits less than $250,000 32,687 41,145 Time deposits $250,000 and over 14,012 18,485 Total deposits $ 2,223,540 $ 1,421,307 |
Schedule of Maturity Distribution of Time Deposits | The following table presents the maturity distribution of time deposits as of September 30, 2021 (dollars in thousands): (dollars in thousands) Twelve months $ 35,905 One to two years 5,977 Two to three years 2,744 Three to four years 1,010 Four to five years 1,063 $ 46,699 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021: September 2021 (dollars in thousands) October 1, 2021 to December 31, 2021 $ 318 2022 1,279 2023 1,272 2024 864 2025 713 2026 and thereafter 3,209 Total lease payments 7,655 Less: amounts representing interest 1,072 Present value of lease liabilities $ 6,583 |
Summary of Components of Total Lease Expense and Operating Cash Flows | The following table presents the components of total lease expense and operating cash flows for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September September September 30, September 30, 2021 2020 2021 2020 (dollars in thousands) Lease expense: Operating lease expense $ 321 $ 321 $ 962 $ 983 Variable lease expense 37 167 108 239 Total lease expense (1) $ 358 $ 488 $ 1,070 $ 1,222 Cash paid: Cash paid reducing operating lease liabilities $ 356 $ 484 $ 1,061 $ 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, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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, 2021: 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, 2020 749,397 $ 7.75 5.04 $ 9,933 Granted - - - Exercised (39,215 ) $ 7.15 - Forfeited or expired - - - Outstanding at September 30, 2021 710,182 $ 7.78 4.28 $ 17,103 Vested or expected to vest at September 30, 2021 710,182 $ 7.78 4.28 $ 17,103 Exercisable at September 30, 2021 364,500 $ 6.63 3.19 $ 9,198 |
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, 2021 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, 2020 90,249 $ 17.25 $ 352 Granted 85,258 $ 20.99 Forfeited (360 ) $ 20.47 Vested (7,851 ) $ 17.73 Nonvested shares at September 30, 2021 167,296 $ 19.12 $ 2,246 |
Restricted Stock | Directors Stock Compensation 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, 2021 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, 2020 14,377 $ 16.15 $ 70 Granted 10,714 $ 25.22 Forfeited - $ - Vested (14,888 ) $ 17.46 Nonvested shares at September 30, 2021 10,203 $ 23.78 $ 82 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 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 $ 31,722 $ 31,722 $ 31,722 $ - $ - Interest earning deposits with other banks 638,003 638,003 638,003 - - Investment securities 34,924 35,020 32,498 2,522 - Other investments 8,349 8,349 - 6,027 2,322 Loans receivable 1,685,460 1,682,602 - - 1,682,602 Accrued interest receivable 7,549 7,549 - 7,549 - Financial liabilities Deposits $ 2,223,540 2,223,498 $ - $ 2,223,498 $ - FHLB advances 24,999 24,619 - 24,619 - Subordinated debt 24,269 22,021 - 22,021 - Junior subordinated debentures 3,586 2,745 - 2,745 - Accrued interest payable 147 147 - 147 - December 31, 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 $ 18,965 $ 18,965 $ 18,965 $ - $ - Interest earning deposits with other banks 144,152 144,152 144,152 - - Investment securities 23,247 23,356 20,028 3,328 - Other investments 6,059 6,059 - 5,209 850 Loans receivable, net 1,527,876 1,535,541 - - 1,535,541 Accrued interest receivable 8,616 8,616 - 8,616 - Financial liabilities Deposits $ 1,421,307 $ 1,421,534 $ - $ 1,421,534 $ - Paycheck Protection Program Liquidity Facility 153,716 153,716 - 153,716 - FHLB advances 24,999 24,787 - 24,787 - Subordinated debt 9,993 9,913 - 9,913 - Junior subordinated debentures 3,584 2,707 - 2,707 - Accrued interest payable 531 531 - 531 - |
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, 2021 Available-for-sale U.S. Treasury securities $ 32,498 $ - $ - $ 32,498 U.S. Agency collateralized mortgage obligations - 77 - 77 U.S. Agency residential mortgage-backed securities - 5 - 5 Municipals - 258 - 258 $ 32,498 $ 340 $ - $ 32,838 December 31, 2020 Available-for-sale U.S. Treasury securities $ 20,028 $ - $ - $ 20,028 U.S. Agency collateralized mortgage obligations - 100 - 100 U.S. Agency residential mortgage-backed securities - 10 - 10 Municipals - 261 - 261 $ 20,028 $ 371 $ - $ 20,399 |
Summary of Assets and Liabilities Classified as Level 3 and Measured at Fair Value on Nonrecurring Basis | The following table presents the carrying value of equity securities without readily determinable fair values, as of September 30, 2021, with adjustments recorded during the periods presented for those securities with observable price changes. For the Three Months Ended For the Nine Months Ended September 30, September 30, (Dollars in thousands) 2021 2020 2021 2020 Carrying value, beginning of period $ 850 $ 750 $ 850 $ 500 Addition of equity securities - - - 250 Upward carrying value changes 1,472 - 1,472 - Carrying value, end of period $ 2,322 $ 750 $ 2,322 $ 750 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 Weighted Average Rate December 31, 2020 Weighted Average Rate Impaired loans Collateral valuations Discount to appraised value 9% 9% |
Summary of Carrying Value of Equity Securities Without Readily Determinable Fair Values | The following table presents the carrying value of equity securities without readily determinable fair values, as of September 30, 2021, with adjustments recorded during the periods presented for those securities with observable price changes. For the Three Months Ended For the Nine Months Ended September 30, September 30, (Dollars in thousands) 2021 2020 2021 2020 Carrying value, beginning of period $ 850 $ 750 $ 850 $ 500 Addition of equity securities - - - 250 Upward carrying value changes 1,472 - 1,472 - Carrying value, end of period $ 2,322 $ 750 $ 2,322 $ 750 |
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, 2021 Impaired loans $ - $ - $ 451 $ 451 Equity securities 2,322 2,322 Total $ - $ - $ 2,773 $ 2,773 December 31, 2020 Impaired loans $ - $ - $ 712 $ 712 Equity securities 850 850 Total $ - $ - $ 1,562 $ 1,562 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 September 30, 2020 September 30, 2021 September 30, 2020 (dollars in thousands, except share data) Net Income $ 6,684 $ 4,090 $ 19,715 $ 10,485 Basic weighted average number common shares outstanding 11,999,899 11,919,850 11,982,009 11,915,513 Dilutive effect of share-based compensation 456,775 261,422 483,337 268,332 Diluted weighted average number common shares outstanding 12,456,674 12,181,272 12,465,346 12,183,845 Basic earnings per share $ 0.56 $ 0.34 $ 1.65 $ 0.88 Diluted earnings per share $ 0.54 $ 0.34 $ 1.58 $ 0.86 Antidilutive stock options and restricted stock outstanding 160,668 224,177 160,668 224,177 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) | Oct. 04, 2027shares | Oct. 04, 2021shares | Sep. 30, 2021Branch |
Description Of Business And Summary Of Accounting Policies [Line Items] | |||
Entity incorporation, state name | WA | ||
Number of branches | Branch | 14 | ||
Performance-based Restricted Stock Units | 2018 Omnibus Incentive Plan | Subsequent Event | |||
Description Of Business And Summary Of Accounting Policies [Line Items] | |||
Number of shares granted | 100,000 | ||
Performance-based Restricted Stock Units | 2018 Omnibus Incentive Plan | Scenario Forecast | Maximum | |||
Description Of Business And Summary Of Accounting Policies [Line Items] | |||
Number of shares expected to vest | 100,000 |
Investments Securities - Amorti
Investments Securities - Amortized Cost and Fair Values of Investments in Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | $ 32,831 | $ 20,357 |
Available-for-sale, Gross Unrealized Gains | 8 | 42 |
Available-for-sale, Gross Unrealized Losses | (1) | |
Available-for-sale, Fair Value | 32,838 | 20,399 |
Held-to-maturity, Amortized Cost | 2,086 | 2,848 |
Held-to-maturity, Fair Value | 2,182 | |
Total investment securities, Amortized Cost | 34,917 | 23,205 |
Total investment securities, Gross Unrealized Gains | 104 | 151 |
Total investment securities, Gross Unrealized Losses | (1) | |
Total investment securities, Fair Value | 35,020 | 23,356 |
U.S. Treasury Securities | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 32,499 | 19,997 |
Available-for-sale, Gross Unrealized Gains | 31 | |
Available-for-sale, Gross Unrealized Losses | (1) | |
Available-for-sale, Fair Value | 32,498 | 20,028 |
U.S. Agency Collateralized Mortgage Obligations | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 74 | 96 |
Available-for-sale, Gross Unrealized Gains | 3 | 4 |
Available-for-sale, Fair Value | 77 | 100 |
U.S. Agency Residential Mortgage-Backed Securities | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 5 | 10 |
Available-for-sale, Fair Value | 5 | 10 |
Held-to-maturity, Amortized Cost | 2,086 | 2,848 |
Held-to-maturity, Gross Unrealized Gains | 96 | 109 |
Held-to-maturity, Fair Value | 2,182 | 2,957 |
Municipals Bonds | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 253 | 254 |
Available-for-sale, Gross Unrealized Gains | 5 | 7 |
Available-for-sale, Fair Value | $ 258 | $ 261 |
Investments Securities - Amor_2
Investments Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-Sale, Amortized Cost, Amounts maturing in One year or less | $ 32,499 | |
Available-for-Sale, Amortized Cost, Amounts maturing in After one year through five years | 253 | |
Available-for-Sale, Amortized Cost. Amounts maturity with single maturity | 32,752 | |
Available-for-sale, Amortized Cost | 32,831 | $ 20,357 |
Available-for-Sale, Fair Value, Amounts maturing in One year or less | 32,498 | |
Available-for-Sale, Fair Value, Amounts maturing in After one year through five years | 258 | |
Available-for-Sale, Fair Value, Amounts maturing with single maturity | 32,756 | |
Available-for-Sale, Fair Value | 32,838 | 20,399 |
Held-to-maturity, Amortized Cost | 2,086 | $ 2,848 |
Held-to-Maturity, Fair Value | 2,182 | |
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 | 79 | |
Available-for-Sale, Fair Value, Amounts maturing without single maturity | 82 | |
Held-to-Maturity, Amortized Cost, Amounts maturity without single maturity | 2,086 | |
Held-to-Maturity, Fair Value, Amounts maturing without single maturity | $ 2,182 |
Investments Securities - Additi
Investments Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)SecurityInvestmentSecurity | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)SecurityInvestmentSecurity | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Summary Of Investment Holdings [Line Items] | |||||
Investments in debt securities with amortized cost pledged to secure public deposits | $ 32,800,000 | $ 32,800,000 | $ 22,000,000 | ||
Purchase of securities | 57,495,000 | $ 14,989,000 | |||
Sales of securities | 0 | $ 0 | 0 | $ 0 | |
Gross unrealized losses for investment securities | $ 1,000 | $ 1,000 | $ 0 | ||
Number of securities in unrealized loss position | InvestmentSecurity | 4 | 4 | |||
Maturity of time horizon | 1 year | ||||
U.S. Treasury Bills | |||||
Summary Of Investment Holdings [Line Items] | |||||
Number of securities purchased | Security | 6 | 10 | |||
Purchase of securities | $ 37,500,000 | $ 57,500,000 |
Investments Securities - Summar
Investments Securities - Summary of Investment Securities Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Available-for-sale, Fair Value, Less Than 12 Months | $ 17,499 |
Available-for-sale, Gross Unrealized Losses, Less Than 12 Months | 1 |
Available-for-sale, Total Fair Value | 17,499 |
Available-for-sale, Total Gross Unrealized Losses | 1 |
U.S. Treasury Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Available-for-sale, Fair Value, Less Than 12 Months | 17,499 |
Available-for-sale, Gross Unrealized Losses, Less Than 12 Months | 1 |
Available-for-sale, Total Fair Value | 17,499 |
Available-for-sale, Total Gross Unrealized Losses | $ 1 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | $ 1,720,214 | $ 1,556,333 | $ 1,520,419 |
Net deferred origination fees and premiums | (14,532) | (9,195) | |
Loans receivable | 1,705,682 | 1,547,138 | |
Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | 536,855 | 539,200 | 589,204 |
Construction, Land and Land Development | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | 158,710 | 94,423 | 100,955 |
Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | 170,167 | 143,869 | 121,147 |
Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | 837,342 | 774,925 | 705,186 |
Consumer and Other Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | $ 17,140 | $ 3,916 | $ 3,927 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)Loan | Sep. 30, 2020USD ($)Loan | Sep. 30, 2021USD ($)Loan | Sep. 30, 2020USD ($)Loan | Dec. 31, 2020USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | |||||
Net deferred origination fees and premiums | $ 14,532,000 | $ 14,532,000 | $ 9,195,000 | ||
Overdrafts included in loans | 23,000 | 23,000 | 31,000 | ||
Pledged loans for borrowing lines at FHLB and FRB | 210,800,000 | 210,800,000 | 326,800,000 | ||
Paycheck Protection Program Liquidity Facility | 0 | 0 | 153,716,000 | ||
Balance of SBA and USDA loans and participations sold and serviced | 20,400,000 | 20,400,000 | 20,600,000 | ||
Balance of main street lending program loans and participations serviced | 56,300,000 | 56,300,000 | 56,300,000 | ||
Purchased loans | 14,800,000 | 14,800,000 | 19,300,000 | ||
Unamortized premiums | 242,000 | 242,000 | 306,000 | ||
Purchased participation loans | 35,900,000 | 35,900,000 | 44,900,000 | ||
Gross loans receivable | $ 1,720,214,000 | $ 1,520,419,000 | $ 1,720,214,000 | $ 1,520,419,000 | 1,556,333,000 |
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 | 255,000 | $ 2,200,000 | $ 973,000 | $ 5,708,000 | |
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 | ||||
Commercial and Industrial Loans | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Capital call lines, provided to venture capital firms | 161,500,000 | $ 161,500,000 | 65,600,000 | ||
Balance of main street lending program loans and participations serviced | 3,000,000 | 3,000,000 | 3,000,000 | ||
Gross loans receivable | 536,855,000 | 589,204,000 | 536,855,000 | 589,204,000 | 539,200,000 |
Consumer and Other Loans | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 17,140,000 | $ 3,927,000 | 17,140,000 | $ 3,927,000 | 3,916,000 |
CARES Act Paycheck Protection Program | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Balance of SBA and USDA loans and participations serviced | 267,300,000 | 267,300,000 | |||
CARES Act Paycheck Protection Program | Commercial and Industrial Loans | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Balance of SBA and USDA loans and participations serviced | 267,300,000 | 267,300,000 | 365,800,000 | ||
Net deferred origination fees and premiums | $ 9,400,000 | $ 9,400,000 | |||
Small Business Administration | Commercial and Industrial Loans | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Percentage of unsecured, guaranteed and loan | 100.00% | ||||
Contractual rate of loan | 1.00% | 1.00% | |||
Loans interest rate | 0.35% | ||||
Small Business Administration | Commercial and Industrial Loans | Minimum | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Loan, maturity terms | 2 years | ||||
Small Business Administration | Commercial and Industrial Loans | Maximum | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Loan, maturity terms | 5 years | ||||
CCBX or BaaS | Consumer and Other Loans | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | $ 14,700,000 | $ 14,700,000 | $ 67,000 |
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, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | $ 1,720,214 | $ 1,556,333 | $ 1,520,419 |
Recorded Investment 90 Days or More Past Due and Still Accruing | 123 | ||
Less net deferred origination fees and premiums | (14,532) | (9,195) | |
Loans receivable | 1,705,682 | 1,547,138 | |
30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 920 | 1,242 | |
90 Days or More Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 586 | 597 | |
Total Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,506 | 1,839 | |
Current | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,718,708 | 1,554,494 | |
Commercial and Industrial Loans | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 536,855 | 539,200 | 589,204 |
Commercial and Industrial Loans | 30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 307 | 133 | |
Commercial and Industrial Loans | 90 Days or More Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 407 | 537 | |
Commercial and Industrial Loans | Total Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 714 | 670 | |
Commercial and Industrial Loans | Current | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 536,141 | 538,530 | |
Construction, Land and Land Development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 158,710 | 94,423 | 100,955 |
Construction, Land and Land Development | 30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1 | ||
Construction, Land and Land Development | Total Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1 | ||
Construction, Land and Land Development | Current | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 158,710 | 94,422 | |
Residential Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 170,167 | 143,869 | 121,147 |
Recorded Investment 90 Days or More Past Due and Still Accruing | 1 | ||
Residential Real Estate | 30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 197 | 1,108 | |
Residential Real Estate | 90 Days or More Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 57 | 60 | |
Residential Real Estate | Total Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 254 | 1,168 | |
Residential Real Estate | Current | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 169,913 | 142,701 | |
Commercial Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 837,342 | 774,925 | 705,186 |
Commercial Real Estate | Current | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 837,342 | 774,925 | |
Consumer and Other Loans | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 17,140 | 3,916 | $ 3,927 |
Recorded Investment 90 Days or More Past Due and Still Accruing | 122 | ||
Consumer and Other Loans | 30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 416 | ||
Consumer and Other Loans | 90 Days or More Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 122 | ||
Consumer and Other Loans | Total Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 538 | ||
Consumer and Other Loans | Current | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 16,602 | $ 3,916 |
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, 2021 | Dec. 31, 2020 |
Financing Receivable Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 617 | $ 1,022 |
Recorded Investment With No Allowance | 411 | 712 |
Recorded Investment With Allowance | 206 | |
Total Recorded Investment | 617 | 712 |
Related Allowance | 166 | |
Commercial and Industrial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 561 | 834 |
Recorded Investment With No Allowance | 355 | 537 |
Recorded Investment With Allowance | 206 | |
Total Recorded Investment | 561 | 537 |
Related Allowance | 166 | |
Residential Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 56 | 188 |
Recorded Investment With No Allowance | 56 | 175 |
Total Recorded Investment | $ 56 | $ 175 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | $ 600 | $ 4,487 | $ 641 | $ 2,771 |
Commercial and Industrial Loans | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 489 | 657 | 498 | 748 |
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 | $ 111 | 151 | $ 143 | 153 |
Commercial Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | $ 409 | $ 204 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Analysis of Nonaccrual Loans by Category (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual loans | $ 617 | $ 712 |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual loans | 561 | 537 |
Residential Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual loans | $ 56 | $ 175 |
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, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 1,720,214 | $ 1,556,333 | $ 1,520,419 |
Less net deferred origination fees and premiums | (14,532) | (9,195) | |
Loans receivable | 1,705,682 | 1,547,138 | |
Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 536,855 | 539,200 | 589,204 |
Construction, Land and Land Development | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 158,710 | 94,423 | 100,955 |
Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 170,167 | 143,869 | 121,147 |
Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 837,342 | 774,925 | 705,186 |
Consumer and Other Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 17,140 | 3,916 | $ 3,927 |
Pass | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 1,714,341 | 1,543,675 | |
Pass | Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 535,327 | 538,149 | |
Pass | Construction, Land and Land Development | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 158,710 | 94,423 | |
Pass | Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 169,982 | 143,540 | |
Pass | Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 833,305 | 763,647 | |
Pass | Consumer and Other Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 17,017 | 3,916 | |
Other Loans Especially Mentioned | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 5,057 | 11,829 | |
Other Loans Especially Mentioned | Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 891 | 397 | |
Other Loans Especially Mentioned | Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 129 | 154 | |
Other Loans Especially Mentioned | Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 4,037 | 11,278 | |
Sub-Standard | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 816 | 829 | |
Sub-Standard | Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 637 | 654 | |
Sub-Standard | Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 56 | $ 175 | |
Sub-Standard | Consumer and Other Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 123 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Loans And Leases Receivable Disclosure [Line Items] | ||||||||
ALLL Balance | $ 19,966 | $ 14,847 | $ 19,262 | $ 11,470 | ||||
Provision for loan losses or (recapture) | $ 255 | $ (973) | $ (2,200) | $ (5,708) | ||||
Loans receivable allowance including provision losses or (recapture) | 20,221 | 20,235 | 17,047 | 17,178 | ||||
Loans charged-off | (31) | (2) | (61) | (139) | ||||
Recoveries of loans previously charged-off | 32 | 1 | 48 | 7 | ||||
Net (charge-offs) recoveries | 1 | (1) | (13) | (132) | ||||
ALLL Balance | 20,222 | 17,046 | 20,222 | 17,046 | ||||
Provision for loan losses or (recapture) | (255) | 973 | 2,200 | 5,708 | ||||
Loans receivable allowance including provision losses or (recapture) | 20,221 | 20,235 | 17,047 | 17,178 | ||||
Allowances | ||||||||
Amounts allocated to Individually evaluated for impairment | 166 | 166 | ||||||
Amounts allocated to Collectively evaluated for impairment | 20,056 | 17,046 | 20,056 | 17,046 | 19,262 | |||
ALLL Balance | 20,222 | 17,046 | 20,222 | 17,046 | ||||
Loans | ||||||||
Loans individually evaluated for impairment | 616 | 4,477 | 616 | 4,477 | 712 | |||
Loans collectively evaluated for impairment | 1,719,598 | 1,515,942 | 1,719,598 | 1,515,942 | 1,555,621 | |||
Total Loans | 1,720,214 | 1,520,419 | 1,720,214 | 1,520,419 | 1,556,333 | |||
Commercial and Industrial Loans | ||||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||||
ALLL Balance | 3,317 | 2,853 | 3,353 | 2,366 | ||||
Provision for loan losses or (recapture) | 8 | 17 | (27) | (639) | ||||
Loans receivable allowance including provision losses or (recapture) | 3,325 | 3,336 | 2,880 | 3,005 | ||||
Loans charged-off | (16) | (130) | ||||||
Recoveries of loans previously charged-off | 16 | 21 | 5 | |||||
Net (charge-offs) recoveries | 16 | 5 | (125) | |||||
ALLL Balance | 3,341 | 2,880 | 3,341 | 2,880 | ||||
Provision for loan losses or (recapture) | (8) | (17) | 27 | 639 | ||||
Loans receivable allowance including provision losses or (recapture) | 3,325 | 3,336 | 2,880 | 3,005 | ||||
Allowances | ||||||||
Amounts allocated to Individually evaluated for impairment | 166 | 166 | ||||||
Amounts allocated to Collectively evaluated for impairment | 3,175 | 2,880 | 3,175 | 2,880 | 3,353 | |||
ALLL Balance | 3,341 | 2,880 | 3,341 | 2,880 | ||||
Loans | ||||||||
Loans individually evaluated for impairment | 561 | 625 | 561 | 625 | 537 | |||
Loans collectively evaluated for impairment | 536,294 | 588,579 | 536,294 | 588,579 | 538,663 | |||
Total Loans | 536,855 | 589,204 | 536,855 | 589,204 | 539,200 | |||
Construction, Land and Land Development | ||||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||||
ALLL Balance | 4,520 | 3,378 | 3,545 | 2,745 | ||||
Provision for loan losses or (recapture) | 1,410 | (2,385) | (234) | (867) | ||||
Loans receivable allowance including provision losses or (recapture) | 5,930 | 5,930 | 3,612 | 3,612 | ||||
ALLL Balance | 5,930 | 3,612 | 5,930 | 3,612 | ||||
Provision for loan losses or (recapture) | (1,410) | 2,385 | 234 | 867 | ||||
Loans receivable allowance including provision losses or (recapture) | 5,930 | 5,930 | 3,612 | 3,612 | ||||
Allowances | ||||||||
Amounts allocated to Collectively evaluated for impairment | 5,930 | 3,612 | 5,930 | 3,612 | 3,545 | |||
ALLL Balance | 5,930 | 3,612 | 5,930 | 3,612 | ||||
Loans | ||||||||
Loans individually evaluated for impairment | 3,269 | 3,269 | ||||||
Loans collectively evaluated for impairment | 158,710 | 97,686 | 158,710 | 97,686 | 94,423 | |||
Total Loans | 158,710 | 100,955 | 158,710 | 100,955 | 94,423 | |||
Residential Real Estate | ||||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||||
ALLL Balance | 3,302 | 2,669 | 3,410 | 2,069 | ||||
Provision for loan losses or (recapture) | (49) | 157 | (222) | (822) | ||||
Loans receivable allowance including provision losses or (recapture) | 3,253 | 3,253 | 2,891 | 2,891 | ||||
ALLL Balance | 3,253 | 2,891 | 3,253 | 2,891 | ||||
Provision for loan losses or (recapture) | 49 | (157) | 222 | 822 | ||||
Loans receivable allowance including provision losses or (recapture) | 3,253 | 3,253 | 2,891 | 2,891 | ||||
Allowances | ||||||||
Amounts allocated to Collectively evaluated for impairment | 3,253 | 2,891 | 3,253 | 2,891 | 3,410 | |||
ALLL Balance | 3,253 | 2,891 | 3,253 | 2,891 | ||||
Loans | ||||||||
Loans individually evaluated for impairment | 56 | 178 | 56 | 178 | 175 | |||
Loans collectively evaluated for impairment | 170,111 | 120,969 | 170,111 | 120,969 | 143,694 | |||
Total Loans | 170,167 | 121,147 | 170,167 | 121,147 | 143,869 | |||
Commercial Real Estate | ||||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||||
ALLL Balance | 8,057 | 5,235 | 7,810 | 3,126 | ||||
Provision for loan losses or (recapture) | (1,420) | 1,173 | (1,929) | (4,038) | ||||
Loans receivable allowance including provision losses or (recapture) | 6,637 | 6,637 | 7,164 | 7,164 | ||||
ALLL Balance | 6,637 | 7,164 | 6,637 | 7,164 | ||||
Provision for loan losses or (recapture) | 1,420 | (1,173) | 1,929 | 4,038 | ||||
Loans receivable allowance including provision losses or (recapture) | 6,637 | 6,637 | 7,164 | 7,164 | ||||
Allowances | ||||||||
Amounts allocated to Collectively evaluated for impairment | 6,637 | 7,164 | 6,637 | 7,164 | 7,810 | |||
ALLL Balance | 6,637 | 7,164 | 6,637 | 7,164 | ||||
Loans | ||||||||
Loans individually evaluated for impairment | 405 | 405 | ||||||
Loans collectively evaluated for impairment | 837,342 | 704,781 | 837,342 | 704,781 | 774,925 | |||
Total Loans | 837,342 | 705,186 | 837,342 | 705,186 | 774,925 | |||
Consumer and Other Loans | ||||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||||
ALLL Balance | 84 | 140 | 127 | 104 | ||||
Provision for loan losses or (recapture) | 11 | 29 | 9 | (33) | ||||
Loans receivable allowance including provision losses or (recapture) | 95 | 98 | 131 | 137 | ||||
Loans charged-off | (31) | (2) | (45) | (9) | ||||
Recoveries of loans previously charged-off | 16 | 1 | 27 | 2 | ||||
Net (charge-offs) recoveries | (15) | (1) | (18) | (7) | ||||
ALLL Balance | 80 | 130 | 80 | 130 | ||||
Provision for loan losses or (recapture) | (11) | (29) | (9) | 33 | ||||
Loans receivable allowance including provision losses or (recapture) | 95 | 98 | 131 | 137 | ||||
Allowances | ||||||||
Amounts allocated to Collectively evaluated for impairment | 80 | 130 | 80 | 130 | 127 | |||
ALLL Balance | 80 | 130 | 80 | 130 | ||||
Loans | ||||||||
Loans collectively evaluated for impairment | 17,140 | 3,927 | 17,140 | 3,927 | 3,916 | |||
Total Loans | 17,140 | 3,927 | 17,140 | 3,927 | 3,916 | |||
Unallocated | ||||||||
Loans And Leases Receivable Disclosure [Line Items] | ||||||||
ALLL Balance | 686 | 572 | 1,017 | 1,060 | ||||
Provision for loan losses or (recapture) | 295 | 36 | 203 | 691 | ||||
Loans receivable allowance including provision losses or (recapture) | 981 | 981 | 369 | 369 | ||||
ALLL Balance | 981 | 369 | 981 | 369 | ||||
Provision for loan losses or (recapture) | (295) | (36) | (203) | (691) | ||||
Loans receivable allowance including provision losses or (recapture) | $ 981 | 981 | $ 369 | $ 369 | ||||
Allowances | ||||||||
Amounts allocated to Collectively evaluated for impairment | 981 | 369 | 981 | 369 | $ 1,017 | |||
ALLL Balance | $ 981 | $ 369 | $ 981 | $ 369 |
Deposits - Composition of Conso
Deposits - Composition of Consolidated Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Time Deposits By Maturity [Abstract] | ||
Demand, noninterest bearing | $ 1,296,443 | $ 592,261 |
NOW and money market | 755,810 | 658,323 |
Savings | 96,192 | 77,611 |
Total core deposits | 2,148,445 | 1,328,195 |
BaaS-brokered deposits | 28,396 | 33,482 |
Time deposits less than $250,000 | 32,687 | 41,145 |
Time deposits $250,000 and over | 14,012 | 18,485 |
Total deposits | $ 2,223,540 | $ 1,421,307 |
Deposits - Schedule of Maturity
Deposits - Schedule of Maturity Distribution of Time Deposits (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Deposits [Abstract] | |
Twelve months | $ 35,905 |
One to two years | 5,977 |
Two to three years | 2,744 |
Three to four years | 1,010 |
Four to five years | 1,063 |
Total time deposits | $ 46,699 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)Lease | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Lease | Sep. 30, 2020USD ($) | Oct. 01, 2020 | |
Lessee Lease Description [Line Items] | |||||
Number of operating lease renewed | Lease | 0 | 1 | |||
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 | 8 years 7 months 6 days | 8 years 7 months 6 days | |||
Operating lease rental expense | $ 343,000 | $ 461,000 | $ 1,000,000 | $ 1,100,000 | |
ATM Machines | |||||
Lessee Lease Description [Line Items] | |||||
Prepaid capital lease, term | 5 years | ||||
Depreciation | $ 34,000 | 100,000 | |||
Remaining depreciation | $ 532,000 | $ 0 | |||
Minimum | |||||
Lessee Lease Description [Line Items] | |||||
Operating leases lease term | 3 months | 3 months | |||
Operating lease, option to renewal period | 5 years | 5 years | |||
Maximum | |||||
Lessee Lease Description [Line Items] | |||||
Operating leases lease term | 23 years 4 months 24 days | 23 years 4 months 24 days | |||
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, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
October 1, 2021 to December 31, 2021 | $ 318 | |
2022 | 1,279 | |
2023 | 1,272 | |
2024 | 864 | |
2025 | 713 | |
2026 and thereafter | 3,209 | |
Total lease payments | 7,655 | |
Less: amounts representing interest | 1,072 | |
Present value of lease liabilities | $ 6,583 | $ 7,323 |
Leases - Summary of Components
Leases - Summary of Components of Total Lease Expense and Operating Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease expense: | ||||
Operating lease expense | $ 321 | $ 321 | $ 962 | $ 983 |
Variable lease expense | 37 | 167 | 108 | 239 |
Total lease expense | 358 | 488 | 1,070 | 1,222 |
Cash paid: | ||||
Cash paid reducing operating lease liabilities | $ 356 | $ 484 | $ 1,061 | $ 1,206 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | May 24, 2021Director$ / sharesshares | Apr. 30, 2018shares | Apr. 30, 2021shares | Jan. 31, 2021$ / sharesshares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($)shares | Dec. 31, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total intrinsic or aggregate value of options exercise price | $ 101,000 | $ 28,000 | $ 775,000 | $ 121,000 | |||||
Total unrecognized compensation cost related to nonvested stock options granted | 1,600,000 | 1,600,000 | |||||||
Compensation expense | $ 902,000 | 414,000 | |||||||
Number of directors | Director | 9 | ||||||||
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 1 month 6 days | ||||||||
Compensation expense | 92,000 | 94,000 | $ 273,000 | 281,000 | |||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total unrecognized compensation cost related to nonvested stock options granted | 2,800,000 | $ 2,800,000 | |||||||
Unrecognized compensation cost related to nonvested stock options/ RSA granted, weighted-average period | 5 years 10 months 24 days | ||||||||
Compensation expense | 133,000 | 39,000 | $ 367,000 | 96,000 | |||||
Number of shares granted | shares | 85,258 | ||||||||
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 | 6 years 3 months 18 days | ||||||||
Compensation expense | 3,000 | $ 2,000 | $ 132,000 | $ 5,000 | |||||
Total unrecognized compensation cost related to nonvested restricted stock awards | $ 56,000 | $ 56,000 | |||||||
Restricted Stock | Employee | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | shares | 5,978 | ||||||||
Estimated fair value per share | $ / shares | $ 20.91 | ||||||||
2018 Omnibus Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate of common stock, shares authorized | shares | 600,000 | ||||||||
Common stock, additional shares authorized | shares | 0 | ||||||||
Shares available to be granted | shares | 769,928 | 769,928 | |||||||
Stock options granted to employees | shares | 0 | 0 | 0 | 0 | |||||
2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | shares | 1,000 | 84,258 | |||||||
Stock options vesting period | 5 years | 5 years | |||||||
2018 Omnibus Incentive Plan | Restricted Stock | Two-year Cliff Vesting Period | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options vesting period | 2 years | ||||||||
Market value of shares grants per year | $ 5,000 | ||||||||
2018 Omnibus Incentive Plan | Restricted Stock | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Market value of shares grants per year | $ 15,000 | ||||||||
2018 Omnibus Incentive Plan | Restricted Stock | Board Chair | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Market value of shares grants per year | 25,000 | ||||||||
2018 Omnibus Incentive Plan | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate of common stock, shares authorized | shares | 500,000 | ||||||||
Directors Stock Compensation Plan | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense | $ 43,000 | $ 8,000 | $ 133,000 | $ 26,000 | |||||
Number of shares granted | shares | 10,714 | ||||||||
Directors Stock Compensation Plan | Restricted Stock | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total unrecognized compensation cost related to nonvested stock options granted | $ 91,000,000 | $ 91,000,000 | |||||||
Number of shares granted | shares | 4,736 | ||||||||
Estimated fair value per share | $ / shares | $ 30.67 | ||||||||
Directors Stock Compensation Plan | Maximum | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options vesting period | 2 years | ||||||||
Directors Stock Compensation Plan | Minimum | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options vesting period | 1 year | ||||||||
Percentage of scheduled board meetings attended by directors during prior year | 75.00% | 75.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - 2018 Omnibus Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, Shares, Beginning balance | 749,397 | ||||
Stock options granted to employees | 0 | 0 | 0 | 0 | |
Exercised, Shares | (39,215) | ||||
Outstanding, Shares, Ending balance | 710,182 | 710,182 | 749,397 | ||
Vested or expected to vest, Shares | 710,182 | 710,182 | |||
Exercisable, Shares | 364,500 | 364,500 | |||
Outstanding, Weighted Average Exercise Price, Beginning balance | $ 7.75 | ||||
Exercised, Weighted Average Exercise Price | 7.15 | ||||
Outstanding, Weighted Average Exercise Price, Ending balance | $ 7.78 | 7.78 | $ 7.75 | ||
Vested or expected to vest, Weighted Average Exercise Price | 7.78 | 7.78 | |||
Exercisable, Weighted Average Exercise Price | $ 6.63 | $ 6.63 | |||
Outstanding, Weighted Average Remaining Contractual Term | 4 years 3 months 10 days | 5 years 14 days | |||
Vested or expected to vest, Weighted Average Remaining Contractual Term | 4 years 3 months 10 days | ||||
Exercisable, Weighted Average Remaining Contractual Term | 3 years 2 months 8 days | ||||
Outstanding, Aggregate Intrinsic Value | $ 17,103 | $ 17,103 | $ 9,933 | ||
Vested or expected to vest, Aggregate Intrinsic Value | 17,103 | 17,103 | |||
Exercisable, Aggregate Intrinsic Value | $ 9,198 | $ 9,198 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Nonvested Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested shares, Beginning balance | 90,249 | |
Granted, Shares | 85,258 | |
Forfeited, Shares | (360) | |
Vested, Shares | (7,851) | |
Nonvested shares, Ending balance | 167,296 | |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 17.25 | |
Granted, Weighted-Average Grant Date Fair Value | 20.99 | |
Forfeited, Weighted-Average Grant Date Fair Value | 20.47 | |
Vested, Weighted-Average Grant Date Fair Value | 17.73 | |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 19.12 | |
Nonvested, Aggregate Intrinsic Value | $ 2,246 | $ 352 |
Restricted Stock | Directors Stock Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested shares, Beginning balance | 14,377 | |
Granted, Shares | 10,714 | |
Forfeited, Shares | 0 | |
Vested, Shares | (14,888) | |
Nonvested shares, Ending balance | 10,203 | |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 16.15 | |
Granted, Weighted-Average Grant Date Fair Value | 25.22 | |
Forfeited, Weighted-Average Grant Date Fair Value | 0 | |
Vested, Weighted-Average Grant Date Fair Value | 17.46 | |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 23.78 | |
Nonvested, Aggregate Intrinsic Value | $ 82 | $ 70 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets | ||
Other investments | $ 8,349 | $ 6,059 |
Financial liabilities | ||
FHLB advances | 24,999 | 24,999 |
Paycheck Protection Program Liquidity Facility | 0 | 153,716 |
Carrying Value | ||
Financial assets | ||
Cash and due from banks | 31,722 | 18,965 |
Interest earning deposits with other banks | 638,003 | 144,152 |
Investment securities | 34,924 | 23,247 |
Other investments | 8,349 | 6,059 |
Loans receivable, net | 1,685,460 | 1,527,876 |
Accrued interest receivable | 7,549 | 8,616 |
Financial liabilities | ||
Deposits | 2,223,540 | 1,421,307 |
FHLB advances | 24,999 | 24,999 |
Subordinated debt | 24,269 | 9,993 |
Junior subordinated debentures | 3,586 | 3,584 |
Accrued interest payable | 147 | 531 |
Paycheck Protection Program Liquidity Facility | 153,716 | |
Estimated Fair Value | ||
Financial assets | ||
Cash and due from banks | 31,722 | 18,965 |
Interest earning deposits with other banks | 638,003 | 144,152 |
Investment securities | 35,020 | 23,356 |
Other investments | 8,349 | 6,059 |
Loans receivable, net | 1,682,602 | 1,535,541 |
Accrued interest receivable | 7,549 | 8,616 |
Financial liabilities | ||
Deposits | 2,223,498 | 1,421,534 |
FHLB advances | 24,619 | 24,787 |
Subordinated debt | 22,021 | 9,913 |
Junior subordinated debentures | 2,745 | 2,707 |
Accrued interest payable | 147 | 531 |
Paycheck Protection Program Liquidity Facility | 153,716 | |
Estimated Fair Value | Level 1 | ||
Financial assets | ||
Cash and due from banks | 31,722 | 18,965 |
Interest earning deposits with other banks | 638,003 | 144,152 |
Investment securities | 32,498 | 20,028 |
Estimated Fair Value | Level 2 | ||
Financial assets | ||
Investment securities | 2,522 | 3,328 |
Other investments | 6,027 | 5,209 |
Accrued interest receivable | 7,549 | 8,616 |
Financial liabilities | ||
Deposits | 2,223,498 | 1,421,534 |
FHLB advances | 24,619 | 24,787 |
Subordinated debt | 22,021 | 9,913 |
Junior subordinated debentures | 2,745 | 2,707 |
Accrued interest payable | 147 | 531 |
Paycheck Protection Program Liquidity Facility | 153,716 | |
Estimated Fair Value | Level 3 | ||
Financial assets | ||
Other investments | 2,322 | 850 |
Loans receivable, net | $ 1,682,602 | $ 1,535,541 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 32,838 | $ 20,399 |
Estimated Fair Value | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 32,838 | 20,399 |
Estimated Fair Value | Recurring | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 32,498 | 20,028 |
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 | 77 | 100 |
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 | 5 | 10 |
Estimated Fair Value | Recurring | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 258 | 261 |
Estimated Fair Value | Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 32,498 | 20,028 |
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 | 32,498 | 20,028 |
Estimated Fair Value | Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 340 | 371 |
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 | 77 | 100 |
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 | 5 | 10 |
Estimated Fair Value | Recurring | Level 2 | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 258 | $ 261 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Carrying Value of Equity Securities Without Readily Determinable Fair Values (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||
Carrying value, beginning of period | $ 850 | $ 750 | $ 850 | $ 500 |
Addition of equity securities | 0 | 250 | ||
Upward carrying value changes | 1,472 | 0 | 1,472 | |
Carrying value, end of period | $ 2,322 | $ 750 | $ 2,322 | $ 750 |
Fair Value Measurements - Sum_4
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, 2021 | Dec. 31, 2020 | |
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 | 9.00% | 9.00% |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 2,773 | $ 1,562 |
Impaired Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 451 | 712 |
Equity Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 2,322 | 850 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 2,773 | 1,562 |
Level 3 | Impaired Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 451 | 712 |
Level 3 | Equity Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 2,322 | $ 850 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Net income | $ 6,684 | $ 4,090 | $ 19,715 | $ 10,485 |
Basic weighted average number common shares outstanding | 11,999,899 | 11,919,850 | 11,982,009 | 11,915,513 |
Dilutive effect of share-based compensation | 456,775 | 261,422 | 483,337 | 268,332 |
Diluted weighted average number common shares outstanding | 12,456,674 | 12,181,272 | 12,465,346 | 12,183,845 |
Basic earnings per share | $ 0.56 | $ 0.34 | $ 1.65 | $ 0.88 |
Diluted earnings per share | $ 0.54 | $ 0.34 | $ 1.58 | $ 0.86 |
Stock Options and Restricted Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive stock outstanding | 160,668 | 224,177 | 160,668 | 224,177 |