Bankwell Financial (BWFG) 10-Q 4 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-36448
Entity Registrant Name	Bankwell Financial Group, Inc.
Entity Incorporation, State	CT
Entity Tax Identification Number	20-8251355
Entity Address, Street	220 Elm Street
Entity Address, City	New Canaan
Entity Address, State	CT
Entity Address, Postal Zip Code	06840
City Area Code	203
Local Phone Number	652-0166
Title of Each Class	Common Stock, no par value pershare
Trading Symbol(s)	BWFG
Name of Each Exchange on Which Registered	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,896,503
Entity Central Index Key	0001505732
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets - (

Consolidated Balance Sheets - (unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 333,103	$ 78,051
Federal funds sold	6,380	0
Cash and cash equivalents	339,483	78,051
Investment securities
Marketable equity securities, at fair value	2,203	2,118
Available for sale investment securities, at fair value	90,563	82,439
Held to maturity investment securities, at amortized cost (fair values of $19,816 and $18,307 at September 30, 2020 and December 31, 2019, respectively)	16,138	16,308
Total investment securities	108,904	100,865
Loans receivable (net of allowance for loan losses of $20,372 at September 30, 2020 and $13,509 at December 31, 2019)	1,600,776	1,588,840
Accrued interest receivable	7,294	5,959
Federal Home Loan Bank stock, at cost	7,860	7,475
Premises and equipment, net	26,616	28,522
Bank-owned life insurance	42,409	41,683
Goodwill	2,589	2,589
Other intangible assets	160	214
Deferred income taxes, net	11,149	5,788
Other assets	45,782	22,196
Total assets	2,193,022	1,882,182
Deposits
Noninterest bearing deposits	234,848	191,518
Interest bearing deposits	1,532,680	1,300,385
Total deposits	1,767,528	1,491,903
Advances from the Federal Home Loan Bank	175,000	150,000
Subordinated debentures ($25,500 face, less unamortized debt issuance costs of $255 and $293 at September 30, 2020 and December 31, 2019, respectively)	25,245	25,207
Accrued expenses and other liabilities	50,982	32,675
Total liabilities	2,018,755	1,699,785
Commitments and contingencies
Shareholders' equity
Common stock, no par value; 10,000,000 shares authorized, 7,896,503 and 7,868,803 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	120,854	120,589
Retained earnings	71,603	69,324
Accumulated other comprehensive loss	(18,190)	(7,516)
Total shareholders' equity	174,267	182,397
Total liabilities and shareholders' equity	$ 2,193,022	$ 1,882,182

Consolidated Balance Sheets -_2

Consolidated Balance Sheets - (unaudited) (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Held to maturity investment securities, fair value	$ 19,816,000	$ 18,307,000
Allowance for loan losses	$ 20,372,000	$ 13,509,000
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (shares)	10,000,000	10,000,000
Common stock, shares issued (shares)	7,896,503	7,868,803
Common stock, shares outstanding (shares)	7,896,503	7,868,803
Subordinated debentures
Debt instrument face value of debt	$ 25,500,000	$ 25,500,000
Unamortized debt issuance costs	$ 255,000	$ 293,000

Consolidated Statements of Inco

Consolidated Statements of Income – (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest and dividend income
Interest and fees on loans	$ 18,027	$ 19,055	$ 55,471	$ 58,691
Interest and dividends on securities	799	903	2,402	2,892
Interest on cash and cash equivalents	96	535	468	1,432
Total interest and dividend income	18,922	20,493	58,341	63,015
Interest expense
Interest expense on deposits	4,104	6,331	14,623	18,750
Interest expense on borrowings	1,210	1,151	3,187	3,386
Total interest expense	5,314	7,482	17,810	22,136
Net interest income	13,608	13,011	40,531	40,879
Provision for loan losses	712	773	6,896	127
Net interest income after provision for loan losses	12,896	12,238	33,635	40,752
Noninterest income
Bank-owned life insurance	242	255	726	758
Service charges and fees	190	264	578	776
Gains and fees from sales of loans	27	703	27	1,409
Gain (loss) on sale of other real estate owned, net	19	(102)	19	(102)
Net gain on sale of available for sale securities	0	0	0	76
Other	136	432	913	1,279
Total noninterest income	614	1,552	2,263	4,196
Noninterest expense
Salaries and employee benefits	5,295	4,881	15,902	14,272
Occupancy and equipment	2,266	1,946	6,410	5,666
Data processing	529	505	1,558	1,568
Professional services	374	346	1,519	1,455
Director fees	301	235	883	639
FDIC insurance	176	(125)	529	74
Marketing	151	210	512	751
Amortization of intangibles	18	19	54	57
Other	619	655	1,743	1,920
Total noninterest expense	9,729	8,672	29,110	26,402
Income before income tax expense	3,781	5,118	6,788	18,546
Tax expense	790	1,030	1,220	3,802
Net income	$ 2,991	$ 4,088	$ 5,568	$ 14,744
Earnings Per Common Share:
Basic (in dollars per share)	$ 0.38	$ 0.52	$ 0.71	$ 1.88
Diluted (in dollars per share)	$ 0.38	$ 0.52	$ 0.71	$ 1.87
Weighted Average Common Shares Outstanding:
Basic (in shares)	7,721,247	7,750,490	7,728,798	7,761,441
Diluted (in shares)	7,721,459	7,766,485	7,749,199	7,788,839
Dividends per common share (in dollars per share)	$ 0.14	$ 0.13	$ 0.42	$ 0.39

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) – (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 2,991	$ 4,088	$ 5,568	$ 14,744
Unrealized (losses) gains on securities:
Unrealized holding (losses) gains on available for sale securities	(97)	353	2,661	3,022
Reclassification adjustment for gain realized in net income	0	0	0	(76)
Net change in unrealized (losses) gains	(97)	353	2,661	2,946
Income tax benefit (expense)	21	(74)	(589)	(618)
Unrealized (losses) gains on securities, net of tax	(76)	279	2,072	2,328
Unrealized gains (losses) on interest rate swaps:
Unrealized gains (losses) on interest rate swaps	2,070	(5,766)	(16,400)	(15,811)
Income tax (expense) benefit	(451)	1,211	3,654	3,319
Unrealized gains (losses) on interest rate swaps, net of tax	1,619	(4,555)	(12,746)	(12,492)
Total other comprehensive income (loss), net of tax	1,543	(4,276)	(10,674)	(10,164)
Comprehensive income (loss)	$ 4,534	$ (188)	$ (5,106)	$ 4,580

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity – (unaudited) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2018	$ 174,196	$ 481	$ 120,527	$ 54,706	$ 481	$ (1,037)
Beginning balance (in shares) at Dec. 31, 2018			7,842,271
Increase (Decrease) in Stockholders' Equity
Net income	14,744			14,744
Other comprehensive income (loss), net of tax	(10,164)					(10,164)
Cash dividends declared	(3,061)			(3,061)
Stock-based compensation expense	774		$ 774
Forfeitures of restricted stock (in shares)			(3,800)
Issuance of restricted stock (in shares)			34,450
Stock options exercised	$ 30		$ 30
Stock options exercised (in shares)	2,350
Repurchase of common stock	$ (988)		$ (988)
Repurchase of common stock (in shares)			(34,168)
Ending balance at Sep. 30, 2019	$ 176,012		$ 120,343	66,870		(11,201)
Ending balance (in shares) at Sep. 30, 2019			7,841,103
Increase (Decrease) in Stockholders' Equity
Accounting Standards Update	us-gaap:AccountingStandardsUpdate201602Member
Beginning balance at Dec. 31, 2018	$ 174,196	$ 481	$ 120,527	54,706	$ 481	(1,037)
Beginning balance (in shares) at Dec. 31, 2018			7,842,271
Increase (Decrease) in Stockholders' Equity
Repurchase of common stock (in shares)			(34,168)
Ending balance at Dec. 31, 2019	182,397		$ 120,589	69,324		(7,516)
Ending balance (in shares) at Dec. 31, 2019			7,868,803
Beginning balance at Jun. 30, 2019	176,940		$ 120,064	63,801		(6,925)
Beginning balance (in shares) at Jun. 30, 2019			7,841,103
Increase (Decrease) in Stockholders' Equity
Net income	4,088			4,088
Other comprehensive income (loss), net of tax	(4,276)					(4,276)
Cash dividends declared	(1,019)			(1,019)
Stock-based compensation expense	279		$ 279
Ending balance at Sep. 30, 2019	176,012		$ 120,343	66,870		(11,201)
Ending balance (in shares) at Sep. 30, 2019			7,841,103
Beginning balance at Dec. 31, 2019	182,397		$ 120,589	69,324		(7,516)
Beginning balance (in shares) at Dec. 31, 2019			7,868,803
Increase (Decrease) in Stockholders' Equity
Net income	5,568			5,568
Other comprehensive income (loss), net of tax	(10,674)					(10,674)
Cash dividends declared	(3,289)			(3,289)
Stock-based compensation expense	1,286		$ 1,286
Forfeitures of restricted stock (in shares)			(1,500)
Issuance of restricted stock (in shares)			86,199
Stock options exercised	$ 16		$ 16
Stock options exercised (in shares)	1,500
Repurchase of common stock	$ (1,037)		$ (1,037)
Repurchase of common stock (in shares)			(58,499)
Ending balance at Sep. 30, 2020	174,267		$ 120,854	71,603		(18,190)
Ending balance (in shares) at Sep. 30, 2020			7,896,503
Beginning balance at Jun. 30, 2020	170,360		$ 120,381	69,712		(19,733)
Beginning balance (in shares) at Jun. 30, 2020			7,887,503
Increase (Decrease) in Stockholders' Equity
Net income	2,991			2,991
Other comprehensive income (loss), net of tax	1,543					1,543
Cash dividends declared	(1,100)			(1,100)
Stock-based compensation expense	473		$ 473
Issuance of restricted stock (in shares)			9,000
Ending balance at Sep. 30, 2020	$ 174,267		$ 120,854	$ 71,603		$ (18,190)
Ending balance (in shares) at Sep. 30, 2020			7,896,503

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity – (unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.14	$ 0.13	$ 0.42	$ 0.39

Consolidated Statements of Cash

Consolidated Statements of Cash Flows – (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 2,991	$ 4,088	$ 5,568	$ 14,744
Adjustments to reconcile net income to net cash used in operating activities:
Net amortization (accretion) of premiums and discounts on investment securities			47	(375)
Provision for loan losses			6,896	127
(Credit) provision for deferred income taxes			(2,353)	330
Net gain on sales of available for sale securities	0	0	0	(76)
Change in fair value of marketable equity securities			(57)	(77)
Depreciation and amortization			2,484	2,534
Amortization of debt issuance costs			39	39
Increase in cash surrender value of bank-owned life insurance			(726)	(758)
Gains and fees from sales of loans	(27)	(703)	(27)	(1,409)
Stock-based compensation			1,286	774
Amortization of intangibles	18	19	54	57
Loss on sale of premises and equipment			0	10
Gain (loss) on sale of other real estate owned, net	(19)	102	(19)	102
Net change in:
Deferred loan fees			1,440	(362)
Accrued interest receivable			(1,335)	459
Other assets			(20,322)	(33,590)
Accrued expenses and other liabilities			(1,470)	14,398
Net cash used in operating activities			(8,495)	(3,073)
Cash flows from investing activities
Net proceeds from sales and calls of available for sale securities			9,920	7,337
Proceeds from principal repayments on held to maturity securities			176	168
Net proceeds from sales and calls of available for sale securities			2,200	15,455
Proceeds from Maturities, Prepayments and Calls of Held-to-maturity Securities			0	3,900
Proceeds from principal repayments on held to maturity securities			0	3,900
Purchases of marketable equity securities			(28)	(34)
Purchases of available for sale securities			(17,636)	(12,270)
Net (increase) decrease in loans			(20,452)	36,807
Loan principal sold from loans not originated for sale			(214)	(21,664)
Proceeds from sales of loans not originated for sale			241	23,073
Purchases of premises and equipment, net			(409)	(473)
Payments to Acquire Federal Home Loan Bank Stock			(385)
(Purchase) reduction of Federal Home Loan Bank stock				635
Proceeds from Sale of Other Real Estate			199	1,115
Net cash (used in) provided by investing activities			(26,388)	54,049
Cash flows from financing activities
Net change in time certificates of deposit			89,072	28,704
Net change in other deposits			186,553	(60,664)
Net change in FHLB advances			25,000	(10,000)
Proceeds from exercise of options			16	30
Dividends paid on common stock			(3,289)	(3,061)
Repurchase of common stock			(1,037)	(988)
Net cash provided by (used in) financing activities			296,315	(45,979)
Net increase in cash and cash equivalents			261,432	4,997
Cash and cash equivalents:
Beginning of year			78,051	78,112
End of period	339,483	83,109	339,483	83,109	$ 78,112
Cash paid for:
Interest			18,067	21,940
Income taxes			3,393	2,118
Noncash investing and financing activities:
Loans transferred to other real estate owned			180	1,217
Net change in unrealized gains or losses on available for sale securities			2,661	2,946
Net change in unrealized gains or losses on interest rate swaps			(16,400)	(15,811)
Establishment of right-of-use asset and lease liability			169	$ 11,192
ASU 2016-02 transition adjustment, net of tax	71,603		71,603
Accounting Standards Update				us-gaap:AccountingStandardsUpdate201602Member	us-gaap:AccountingStandardsUpdate201602Member
Cumulative Effect, Period of Adoption, Adjustment
Noncash investing and financing activities:
ASU 2016-02 transition adjustment, net of tax	$ 0	$ 481	$ 0	$ 481

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Nature of Operations and Summary of Significant Accounting Policies Bankwell Financial Group, Inc. (the "Parent Corporation") is a bank holding company headquartered in New Canaan, Connecticut. The Parent Corporation offers a broad range of financial services through its banking subsidiary, Bankwell Bank (the "Bank" and, collectively with the Parent Corporation and the Parent Corporation's subsidiaries, the "Company"). In November 2013, the Bank acquired The Wilton Bank and in October 2014, the Bank acquired Quinnipiac Bank and Trust Company. The Bank is a Connecticut state chartered commercial bank, founded in 2002, whose deposits are insured under the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation (“FDIC”). The Bank provides a full range of banking services to commercial and consumer customers, primarily concentrated in the New York metropolitan area and throughout Connecticut, with the majority of the Company's loans in Fairfield and New Haven Counties, Connecticut, with branch locations in New Canaan, Stamford, Fairfield, Wilton, Westport, Darien, Norwalk, Hamden and North Haven Connecticut. The Company has committed to permanently close its North Haven branch as of December 31, 2020. Principles of consolidation The consolidated financial statements include the accounts of the Company and the Bank, including its wholly owned passive investment company subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the consolidated balance sheet, and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses, the valuation of derivative instruments, investment securities valuation, evaluation of investment securities for other than temporary impairment and deferred income taxes valuation. In March 2020, the World Health Organization declared novel coronavirus disease 2019 ("COVID-19") as a global pandemic. The COVID-19 pandemic has negatively impacted the global and U.S. economies. Many businesses in the U.S., including those in the markets we serve, were required to close, causing a significant increase in unemployment and loss of revenue for those businesses. The COVID-19 pandemic influenced the assumptions and estimates used in the consolidated financial statements. The COVID-19 pandemic had an adverse impact on our earnings, increasing the provision for loan losses when compared to the same period in 2019. We are unable to estimate the full impact of COVID-19 on our business and operations at this time. The extent of such impact will depend on future developments, which are highly uncertain, including when COVID-19 can be controlled and abated. The pandemic could cause us to experience higher credit losses in our loan portfolio, impairment of our goodwill, reduced demand for our products and services, or other negative impacts on our financial position, results of operations, and prospects. Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2020. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2019. Significant concentrations of credit risk Many of the Company's activities are with customers located in the New York Metropolitan area and throughout Fairfield and New Haven Counties and the surrounding region of Connecticut, and declines in property values in these areas could significantly impact the Company. The Company has significant concentrations in commercial real estate loans. The Company does not have any significant concentrations in any one industry or customer. Common Share Repurchases The Company is incorporated in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. Reclassification Certain prior period amounts have been reclassified to conform to the 2020 financial statement presentation. These reclassifications only changed the reporting categories and did not affect the consolidated results of operations or consolidated financial position of the Company. Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. Recently issued accounting pronouncements not yet adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” This ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. On July 17, 2019, the FASB proposed deferring the effective date of ASC 326 for smaller reporting companies as defined by the SEC. The FASB proposed a three-year deferral for smaller reporting companies, with an effective date of January 1, 2023. On October 16, 2019, the FASB voted in favor of finalizing its proposal to defer the effective date of this standard. The FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company does qualify to defer the adoption of this standard and has not yet adopted this standard. Management continues to evaluate the impact of its future adoption of this guidance on the Company’s financial statements. ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This ASU simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity was required to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, this ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. On October 16, 2019, the FASB voted in favor of a proposal to defer the effective date of this standard in the same manner it is deferring the effective date of ASC 326. The Company does not expect the application of this guidance to have a material impact on the Company’s financial statements. Recently adopted accounting pronouncements ASU No. 2018-13, Fair Value Measurement (Topic 820) : “Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The following disclosure requirements were removed from topic 820 for public entities: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. This update also modified and added disclosure requirements to Topic 820, including adding (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The guidance was effective for the Company on January 1, 2020. The application of this guidance did not have a material impact on the Company's financial statements. ASU No. 2020-04, Reference Rate Reform (Topic 848): "Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Optional expedients include that modifications of contracts should be accounted for by prospectively adjusting the effective interest rate and modifications of leases should be accounted for as a continuation of the existing contract with no reassessments of lease classification and discount rate or remeasurements of lease payments. This ASU also provides many practical expedients for derivative accounting. In addition, an entity may elect to sell and/or transfer held to maturity securities that reference a rate affected by the reference rate reform classified as held to maturity prior to January 1, 2020. The application of this guidance did not have a material impact on the Company's financial statements.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Investment Securities The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at September 30, 2020 were as follows: September 30, 2020 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Due from one through five years $ 9,970 $ 219 $ — $ 10,189 Due from five through ten years 8,082 973 — 9,055 Due after ten years 60,174 2,487 — 62,661 Total U.S. Government and agency obligations 78,226 3,679 — 81,905 Corporate bonds Due from five through ten years 7,000 137 — 7,137 Due after ten years 1,500 21 — 1,521 Total corporate bonds 8,500 158 — 8,658 Total available for sale securities $ 86,726 $ 3,837 $ — $ 90,563 Held to maturity securities: State agency and municipal obligations Due after ten years $ 16,074 $ 3,667 $ — $ 19,741 Government-sponsored mortgage backed securities No contractual maturity 64 11 — 75 Total held to maturity securities $ 16,138 $ 3,678 $ — $ 19,816 The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2019 were as follows: December 31, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 2,100 $ — $ (1) $ 2,099 Due from one through five years 9,950 81 — 10,031 Due from five through ten years 8,311 218 (1) 8,528 Due after ten years 60,902 879 — 61,781 Total available for sale securities $ 81,263 $ 1,178 $ (2) $ 82,439 Held to maturity securities: State agency and municipal obligations Due after ten years $ 16,231 $ 1,991 $ — $ 18,222 Government-sponsored mortgage backed securities No contractual maturity 77 8 — 85 Total held to maturity securities $ 16,308 $ 1,999 $ — $ 18,307 There were no sales of investment securities during the three or nine months ended September 30, 2020. The gross realized gains on the sale of investment securities totaled $0.1 million for the nine months ended September 30, 2019. There were no sales of investment securities during the three months ended September 30, 2019. The gross realized losses on the sale of investment securities totaled $17.0 thousand for the nine months ended September 30, 2019. At September 30, 2020 and December 31, 2019, none of the Company's securities were pledged as collateral with the Federal Home Loan Bank ("FHLB") or any other institution. As of September 30, 2020 and December 31, 2019, the actual durations of the Company's available for sale securities were significantly shorter than the stated maturities. As of September 30, 2020, the Company held marketable equity securities with a fair value of $2.2 million and an amortized cost of $2.1 million. At December 31, 2019, the Company held marketable equity securities with a fair value of $2.1 million and an amortized cost of $2.0 million. These securities represent an investment in mutual funds that have an objective to make investments for CRA purposes. There were two investment securities as of December 31, 2019, in which the fair value of the security was less than the amortized cost of the security. There were no such investment securities as of September 30, 2020. The following table provides information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019: Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Value Unrealized Percent Fair Value Unrealized Percent Fair Value Unrealized Percent (Dollars in thousands) December 31, 2019 U.S. Government and agency obligations $ 99 $ (1) 1.01 % $ 998 $ (1) 0.13 % $ 1,097 $ (2) 0.21 % Total investment securities $ 99 $ (1) 1.01 % $ 998 $ (1) 0.13 % $ 1,097 $ (2) 0.21 %

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Loans Receivable and Allowance for Loan Losses	Loans Receivable and Allowance for Loan Losses The following table sets forth a summary of the loan portfolio at September 30, 2020 and December 31, 2019: (In thousands) September 30, 2020 December 31, 2019 Real estate loans: Residential $ 120,531 $ 147,109 Commercial 1,105,862 1,128,614 Construction 96,508 98,583 1,322,901 1,374,306 Commercial business (1) 301,747 230,028 Consumer 78 150 Total loans 1,624,726 1,604,484 Allowance for loan losses (20,372) (13,509) Deferred loan origination fees, net (3,578) (2,137) Unamortized loan premiums — 2 Loans receivable, net $ 1,600,776 $ 1,588,840 (1) The September 30, 2020 balance includes $56.7 million of Paycheck Protection Program ("PPP") loans made under the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"). Lending activities are conducted principally in the New York metropolitan area and throughout Connecticut, with the majority in Fairfield and New Haven Counties of Connecticut, and consist of commercial real estate loans, commercial business loans and, to a lesser degree, a variety of consumer loans. Loans may also be granted for the construction of commercial properties. The majority of commercial mortgage loans are collateralized by first or second mortgages on real estate. Risk management The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and extends credit of up to 80% of the market value of the collateral, depending on the borrower's creditworthiness and the type of collateral. The borrower’s ability to service the debt is monitored on an ongoing basis. Real estate is the primary form of collateral. Other important forms of collateral are business assets, time deposits and marketable securities. While collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment for commercial loans to be based on the borrower’s ability to generate continuing cash flows. In the fourth quarter of 2017, management made the strategic decision to cease the origination of residential mortgage loans. At the beginning of the third quarter 2019, the Company no longer offered home equity loans or lines of credit. The Company’s policy for residential lending generally required that the amount of the loan may not exceed 80% of the original appraised value of the property. In certain situations, the amount may have exceeded 80% LTV either with private mortgage insurance being required for that portion of the residential loan in excess of 80% of the appraised value of the property or where secondary financing is provided by a housing authority program second mortgage, a community’s low/moderate income housing program, or a religious or civic organization. Credit quality of loans and the allowance for loan losses Management segregates the loan portfolio into defined segments, which are used to develop and document a systematic method for determining the Company's allowance for loan losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. The Company's loan portfolio is segregated into the following portfolio segments: Residential Real Estate: This portfolio segment consists of first mortgage loans secured by one-to-four family owner occupied residential properties for personal use located in the Company's market area. This segment also includes home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties. Loans of this type were written at a combined maximum of 80% of the appraised value of the property and the Company requires a first or second lien position on the property. These loans can be affected by economic conditions and the values of the underlying properties. Commercial Real Estate: This portfolio segment includes loans secured by commercial real estate, multi-family dwellings and investor-owned one-to-four family dwellings. Loans secured by commercial real estate generally have larger loan balances and more credit risk than owner occupied one-to-four family mortgage loans. Construction: This portfolio segment includes commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail and other income producing properties and land loans, which are loans made with land as collateral. Construction and land development financing generally involves greater credit risk than long-term financing on improved, owner-occupied or leased real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost proves to be inaccurate, the Company may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project proves to be inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment through sale or refinance. Construction loans also expose the Company to the risks that improvements will not be completed on time in accordance with specifications and projected costs and that repayment will depend on the successful operation or sale of the properties, which may cause some borrowers to be unable to continue paying debt service, which exposes the Company to greater risk of non-payment and loss. Commercial Business: This portfolio segment includes commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners. Commercial business loans generally have higher interest rates and shorter terms than other loans, but they also have increased difficulty of loan monitoring and a higher risk of default since their repayment generally depends on the successful operation of the borrower’s business. This segment also includes Paycheck Protection Program ("PPP") loans made under the CARES Act to small businesses impacted by COVID-19, to cover payroll and other operating expenses. Loans extended under the PPP are fully guaranteed by the U.S. Small Business Administration ("SBA"). Consumer: This portfolio segment includes loans secured by savings or certificate accounts, automobiles, as well as unsecured personal loans and overdraft lines of credit. This type of loan entails greater risk than residential mortgage loans, particularly in the case of loans that are unsecured or secured by assets that depreciate rapidly. Allowance for loan losses The following tables set forth the activity in the Company’s allowance for loan losses for the three and nine months ended September 30, 2020 and 2019, by portfolio segment: The allowance for loan losses as of September 30, 2020 totaled $20.4 million, an increase of $6.9 million when compared to December 31, 2019. This increase in loan loss reserves is driven by management’s assessment of increased credit risk relating to economic disruption and uncertainty caused by the COVID-19 pandemic. Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended September 30, 2020 Beginning balance $ 809 $ 14,409 $ 441 $ 4,003 $ — $ 19,662 Charge-offs — — — — (4) (4) Recoveries — — — — 2 2 (Credits) provisions (95) 491 (7) 321 2 712 Ending balance $ 714 $ 14,900 $ 434 $ 4,324 $ — $ 20,372 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended September 30, 2019 Beginning balance $ 923 $ 9,910 $ 259 $ 2,797 $ 1 $ 13,890 Charge-offs (78) (594) — (748) (57) (1,477) Recoveries — — — 2 24 26 (Credits) provisions (54) 778 2 14 33 773 Ending balance $ 791 $ 10,094 $ 261 $ 2,065 $ 1 $ 13,212 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Nine Months Ended September 30, 2020 Beginning balance $ 730 $ 10,551 $ 324 $ 1,903 $ 1 $ 13,509 Charge-offs — — — (7) (29) (36) Recoveries — — — 1 2 3 (Credits) provisions (16) 4,349 110 2,427 26 6,896 Ending balance $ 714 $ 14,900 $ 434 $ 4,324 $ — $ 20,372 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Nine Months Ended September 30, 2019 Beginning balance $ 857 $ 11,562 $ 140 $ 2,902 $ 1 $ 15,462 Charge-offs (875) (594) — (884) (70) (2,423) Recoveries — — — 18 28 46 Provisions (credits) 809 (874) 121 29 42 127 Ending balance $ 791 $ 10,094 $ 261 $ 2,065 $ 1 $ 13,212 Loans evaluated for impairment and the related allowance for loan losses as of September 30, 2020 and December 31, 2019 were as follows: Portfolio Allowance (In thousands) September 30, 2020 Loans individually evaluated for impairment: Residential real estate $ 4,016 $ — Commercial real estate 13,565 1,493 Commercial business 4,100 30 Subtotal 21,681 1,523 Loans collectively evaluated for impairment: Residential real estate 116,515 714 Commercial real estate 1,092,297 13,407 Construction 96,508 434 Commercial business 297,647 4,294 Consumer 78 — Subtotal 1,603,045 18,849 Total $ 1,624,726 $ 20,372 Portfolio Allowance (In thousands) December 31, 2019 Loans individually evaluated for impairment: Residential real estate $ 4,020 $ — Commercial real estate 14,203 372 Commercial business 4,330 134 Subtotal 22,553 506 Loans collectively evaluated for impairment: Residential real estate 143,089 730 Commercial real estate 1,114,411 10,179 Construction 98,583 324 Commercial business 225,698 1,769 Consumer 150 1 Subtotal 1,581,931 13,003 Total $ 1,604,484 $ 13,509 Credit quality indicators To measure credit risk for the loan portfolios, the Company employs a credit risk rating system. This risk rating represents an assessed level of a loan’s risk based on the character and creditworthiness of the borrower/guarantor, the capacity of the borrower to adequately service the debt, any credit enhancements or additional sources of repayment, and the quality, value and coverage of the collateral, if any. The objectives of the Company’s risk rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize a potential credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for loan losses. The Company’s credit risk rating system has nine grades, with each grade corresponding to a progressively greater risk of default. Risk ratings of (1) through (5) are "pass" categories and risk ratings of (6) through (9) are criticized asset categories as defined by the regulatory agencies. A “special mention” (6) credit has a potential weakness which, if uncorrected, may result in a deterioration of the repayment prospects or inadequately protect the Company’s credit position at some time in the future. “Substandard” (7) loans are credits that have a well-defined weakness or weaknesses that jeopardize the full repayment of the debt. An asset rated “doubtful” (8) has all the weaknesses inherent in a substandard asset and which, in addition, make collection or liquidation in full highly questionable and improbable when considering existing facts, conditions, and values. Loans classified as “loss” (9) are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value; rather, it is not practical or desirable to defer writing-off this asset even though partial recovery may be made in the future. Risk ratings are assigned as necessary to differentiate risk within the portfolio. They are reviewed on an ongoing basis through the annual loan review process performed by Company personnel, normal renewal activity and the quarterly watchlist and watched asset report process. They are revised to reflect changes in the borrower's financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage, as well as other considerations. In addition to internal review at multiple points, outsourced loan review opines on risk ratings with regard to the sample of loans their review covers. The following tables present credit risk ratings by loan segment as of September 30, 2020 and December 31, 2019: Commercial Credit Quality Indicators September 30, 2020 December 31, 2019 Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total (In thousands) Pass $ 1,085,654 $ 87,511 $ 294,588 $ 1,467,753 $ 1,104,164 $ 98,583 $ 208,932 $ 1,411,679 Special Mention 6,642 8,997 3,058 18,697 10,247 — 16,766 27,013 Substandard 13,566 — 659 14,225 14,203 — 854 15,057 Doubtful — — 3,442 3,442 — — 3,476 3,476 Loss — — — — — — — — Total loans $ 1,105,862 $ 96,508 $ 301,747 $ 1,504,117 $ 1,128,614 $ 98,583 $ 230,028 $ 1,457,225 Residential and Consumer Credit Quality Indicators September 30, 2020 December 31, 2019 Residential Real Estate Consumer Total Residential Real Estate Consumer Total (In thousands) Pass $ 116,515 $ 78 $ 116,593 $ 143,089 $ 150 $ 143,239 Special Mention — — — — — — Substandard 3,836 — 3,836 3,832 — 3,832 Doubtful 180 — 180 188 — 188 Loss — — — — — — Total loans $ 120,531 $ 78 $ 120,609 $ 147,109 $ 150 $ 147,259 Loan portfolio aging analysis When a loan is 15 days past due, the Company sends the borrower a late notice. The Company attempts to contact the borrower by phone if the delinquency is not corrected promptly after the notice has been sent. When the loan is 30 days past due, the Company mails the borrower a letter reminding the borrower of the delinquency, and attempts to contact the borrower personally to determine the reason for the delinquency and ensure the borrower understands the terms of the loan. If necessary, after the 90th day of delinquency, the Company may take other appropriate legal action. A summary report of all loans 30 days or more past due is provided to the Board of Directors of the Company periodically. Loans greater than 90 days past due are generally put on nonaccrual status. A nonaccrual loan is restored to accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt. A loan is considered to be no longer delinquent when timely payments are made for a period of at least six months (one year for loans providing for quarterly or semi-annual payments) by the borrower in accordance with the contractual terms. Loans that are granted payment deferrals under the CARES Act are not required to be reported as past due or placed on non-accrual status if the criteria under section 4013 of the CARES Act is met. The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of September 30, 2020 and December 31, 2019: September 30, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 180 $ 912 $ — $ 1,092 $ 119,439 $ 120,531 Commercial real estate 109 84 2,533 2,726 1,103,136 1,105,862 Construction — — — — 96,508 96,508 Commercial business — 234 3,444 3,678 298,069 301,747 Consumer — — — — 78 78 Total loans $ 289 $ 1,230 $ 5,977 $ 7,496 $ 1,617,230 $ 1,624,726 December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ — $ 943 $ 281 $ 1,224 $ 145,885 $ 147,109 Commercial real estate 355 — 5,935 6,290 1,122,324 1,128,614 Construction 1,357 — — 1,357 97,226 98,583 Commercial business — — 3,455 3,455 226,573 230,028 Consumer — — — — 150 150 Total loans $ 1,712 $ 943 $ 9,671 $ 12,326 $ 1,592,158 $ 1,604,484 There were no loans delinquent greater than 90 days and still accruing interest as of September 30, 2020. There was one loan, totaling $3.4 million, delinquent greater than 90 days and still accruing interest as of December 31, 2019. The delinquency for that particular loan was a result of an administrative delay, as the loan had matured in 2019, as opposed to delinquent payments. Loans on nonaccrual status The following is a summary of nonaccrual loans by portfolio segment as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (In thousands) Residential real estate $ 1,596 $ 1,560 Commercial real estate 4,812 5,222 Commercial business 3,760 3,806 Total $ 10,168 $ 10,588 Nonaccrual loans totaled $10.2 million at September 30, 2020, of which $4.5 million is guaranteed by the SBA. Interest income on loans that would have been recognized if loans on nonaccrual status had been current in accordance with their original terms for the nine months ended September 30, 2020 and 2019 was $0.6 million and $0.5 million, respectively. There was no interest income recognized on these loans for the nine months ended September 30, 2020 and $44 thousand of interest income was recognized on these loans for the nine months ended September 30, 2019. At September 30, 2020 and December 31, 2019, there were no commitments to lend additional funds to any borrower on nonaccrual status. Nonaccrual loans with no specific reserve totaled $9.3 million and $9.6 million at September 30, 2020 and December 31, 2019, respectively. Impaired loans An impaired loan is generally one for which it is probable, based on current information, that the Company will not collect all the amounts due in accordance with the contractual terms of the loan. Impaired loans are individually evaluated for impairment. When the Company classifies a problem loan as impaired, it evaluates whether a specific valuation allowance is required for that portion of the asset that is estimated to be impaired. The following table summarizes impaired loans by portfolio segment as of September 30, 2020 and December 31, 2019: Carrying Amount Unpaid Principal Balance Associated Allowance September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,016 $ 4,020 $ 4,219 $ 4,144 $ — $ — Commercial real estate 7,312 8,571 7,648 8,859 — — Commercial business 4,070 3,915 5,302 5,126 — — Total impaired loans without a valuation allowance 15,398 16,506 17,169 18,129 — — Impaired loans with a valuation allowance: Commercial real estate $ 6,253 $ 5,632 $ 6,268 $ 5,647 $ 1,493 $ 372 Commercial business 30 415 30 417 30 134 Total impaired loans with a valuation allowance 6,283 6,047 6,298 6,064 1,523 506 Total impaired loans $ 21,681 $ 22,553 $ 23,467 $ 24,193 $ 1,523 $ 506 The following tables summarizes the average carrying amount of impaired loans and interest income recognized on impaired loans by portfolio segment for the three and nine months ended September 30, 2020 and 2019: Average Carrying Amount Interest Income Recognized Three Months Ended September 30, Three Months Ended September 30, 2020 2019 2020 2019 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,035 $ 4,076 $ 16 $ 31 Commercial real estate 7,376 5,357 37 39 Commercial business 4,123 1,253 5 7 Total impaired loans without a valuation allowance 15,534 10,686 58 77 Impaired loans with a valuation allowance: Commercial real estate $ 6,259 $ 766 $ 78 $ 3 Commercial business 30 2,323 — 1 Total impaired loans with a valuation allowance 6,289 3,089 78 4 Total impaired loans $ 21,823 $ 13,775 $ 136 $ 81 Average Carrying Amount Interest Income Recognized Nine Months Ended Nine Months Ended 2020 2019 2020 2019 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,083 $ 4,112 $ 70 $ 92 Commercial real estate 7,513 4,701 109 155 Commercial business 4,173 1,368 15 19 Total impaired loans without a valuation allowance 15,769 10,181 194 266 Impaired loans with a valuation allowance: Commercial real estate $ 6,278 $ 778 $ 204 $ 5 Commercial business 30 2,738 — 8 Total impaired loans with a valuation allowance 6,308 3,516 204 13 Total impaired loans $ 22,077 $ 13,697 $ 398 $ 279 Troubled debt restructurings ("TDRs") Modifications to a loan are considered to be a troubled debt restructuring when both of the following conditions are met: 1) the borrower is experiencing financial difficulties and 2) the modification constitutes a concession that is not in line with market rates and/or terms. Modified terms are dependent upon the financial position and needs of the individual borrower. Troubled debt restructurings are classified as impaired loans. If a performing loan is restructured into a TDR, it remains in performing status. If a nonperforming loan is restructured into a TDR, it continues to be carried in nonaccrual status. Nonaccrual classification may be removed if the borrower demonstrates compliance with the modified terms for a minimum of six months. Loans classified as TDRs totaled $9.2 million at September 30, 2020 and $9.6 million at December 31, 2019. The following table provides information on loans that were modified as TDRs during the nine months ended September 30, 2020 and 2019. There were no loans modified as TDRs during the three months ended September 30, 2020 and September 30, 2019. Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Nine Months Ended September 30, Residential real estate — 1 $ — $ 34 $ — $ 34 Commercial business — 2 — 465 — 465 Total — 3 $ — $ 499 $ — $ 499 At September 30, 2020 and December 31, 2019, there were three nonaccrual loans identified as TDRs totaling $1.5 million and three nonaccrual loans identified as TDRs totaling $1.6 million, respectively. There were no loans modified in a troubled debt restructuring that re-defaulted during the nine months ended September 30, 2020. There were two loans modified in a troubled debt restructuring that re-defaulted during the nine months ended September 30, 2019. The total recorded investment in these loans was $1.3 million at September 30, 2019. The following table provides information on how loans were modified as TDRs during the nine months ended September 30, 2020 and September 30, 2019. There were no loans modified as TDRs during the three months ended September 30, 2020 and September 30, 2019. Nine Months Ended September 30, 2020 2019 (In thousands) Maturity concession $ — $ 125 Rate and payment concession — 374 Total $ — $ 499 Section 4013 of the CARES Act permits a financial institution to elect to suspend troubled debt restructuring accounting, in certain circumstances, beginning March 1, 2020 and ending on the earlier of December 31, 2020, or sixty days after the national emergency concerning COVID-19 terminates. All short term loan modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any request for relief are not considered TDRs. As of September 30, 2020, the Company has active COVID-19 related deferrals on 12 loans (excluding SBA loans, which are paid for 6 months by the SBA on behalf of borrowers) totaling $32.7 million. In addition, the Company was evaluating 10 loans, totaling $31.3 million, for a second COVID-19 deferral term. The Company has granted initial three month payment deferral periods and, in some instances, a second three month payment deferral period. This excludes SBA loans, which are mandated to receive an automatic six month deferral. These deferrals are not considered troubled debt restructurings based on Section 4013 of the CARES Act and interagency guidance issued in March of 2020. Also, the FASB has determined that the TDR guidance in the interagency statement is an appropriate application of ASC 310-40. As such, all of the Company’s deferrals under the CARES Act are also considered in conformity with US GAAP as to their non-TDR classification.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders' Equity Common Stock The Company has 10,000,000 shares authorized and 7,896,503 shares issued and outstanding at September 30, 2020 and 10,000,000 shares authorized and 7,868,803 shares issued and outstanding at December 31, 2019. The Company's stock is traded on the NASDAQ stock market under the ticker symbol BWFG. Warrants In connection with a 2014 acquisition and the associated merger agreement, the Company had issued warrants convertible to shares of common stock at a pre-determined price and exchange ratio. The Company does not have any warrants outstanding as of September 30, 2020. Dividends The Company’s shareholders are entitled to dividends when and if declared by the Board of Directors out of funds legally available. The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Company. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. Issuer Purchases of Equity Securities On December 19, 2018, the Company's Board of Directors authorized a share repurchase program of up to 400,000 shares of the Company's Common Stock. The Company intends to accomplish the share repurchases through open market transactions, though the Company could accomplish repurchases through other means, such as privately negotiated transactions. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The share repurchase plan does not obligate the Company to acquire any particular amount of Common Stock, and it may be modified or suspended at any time at the Company's discretion. During the nine months ended September 30, 2020, the Company purchased 58,499 shares of its Common Stock at a weighted average price of $17.69 per share. During the year ended December 31, 2019, the Company purchased 34,168 shares of its Common Stock at a weighted average price of $28.87 per share.

Comprehensive Income

Comprehensive Income	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Comprehensive Income	Comprehensive IncomeComprehensive income represents the sum of net income and items of other comprehensive income or loss, including net unrealized gains or losses on securities available for sale and net unrealized gains or losses on derivatives. The Company's derivative instruments are utilized to manage economic risks, including interest rate risk. Changes in fair value of the Company's derivatives are primarily driven by changes in interest rates and recognized in other comprehensive income. The Company's current derivative positions will cause a decrease to other comprehensive income in a falling interest rate environment and an increase in a rising interest rate environment. The Company’s total comprehensive income or loss for the three and nine months ended September 30, 2020 and September 30, 2019 is reported in the Consolidated Statements of Comprehensive Income. The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax for the three and nine months ended September 30, 2020 and September 30, 2019: Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at June 30, 2020 $ 3,076 $ (22,809) $ (19,733) Other comprehensive (loss) income before reclassifications, net of tax (76) 1,619 1,543 Net other comprehensive (loss) income (76) 1,619 1,543 Balance at September 30, 2020 $ 3,000 $ (21,190) $ (18,190) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at June 30, 2019 $ 670 $ (7,595) $ (6,925) Other comprehensive income (loss) before reclassifications, net of tax 279 (4,555) (4,276) Net other comprehensive income (loss) 279 (4,555) (4,276) Balance at September 30, 2019 $ 949 $ (12,150) $ (11,201) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2019 $ 928 $ (8,444) $ (7,516) Other comprehensive income (loss) before reclassifications, net of tax 2,072 (12,746) (10,674) Net other comprehensive income (loss) 2,072 (12,746) (10,674) Balance at September 30, 2020 $ 3,000 $ (21,190) $ (18,190) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2018 $ (1,379) $ 342 $ (1,037) Other comprehensive income (loss) before reclassifications, net of tax 2,388 (12,492) (10,104) Amounts reclassified from accumulated other comprehensive income, net of tax (60) — (60) Net other comprehensive income (loss) 2,328 (12,492) (10,164) Balance at September 30, 2019 $ 949 $ (12,150) $ (11,201) The following table provides information for the items reclassified from accumulated other comprehensive income or loss: Accumulated Other Comprehensive Income Components Three Months Ended September 30, Nine Months Ended September 30, Associated Line Item in the Consolidated Statements of Income 2020 2019 2020 2019 (In thousands) Available for sale securities: Unrealized gains on investments $ — $ — $ — $ 76 Net gain on sale of available for sale securities Tax expense — — — (16) Income tax expense Net of tax $ — $ — $ — $ 60

Earnings per share ("EPS")

Earnings per share ("EPS")	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Earnings per share ("EPS")	Earnings per share ("EPS") Unvested restricted stock awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company’s unvested restricted stock awards qualify as participating securities. Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating unvested restricted stock awards. Diluted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In thousands, except per share data) Net income $ 2,991 $ 4,088 $ 5,568 $ 14,744 Dividends to participating securities (1) (19) (12) (52) (35) Undistributed earnings allocated to participating securities (1) (32) (35) (34) (135) Net income for earnings per share calculation $ 2,940 $ 4,041 $ 5,482 $ 14,574 Weighted average shares outstanding, basic 7,721 7,750 7,729 7,761 Effect of dilutive equity-based awards (2) — 16 20 28 Weighted average shares outstanding, diluted 7,721 7,766 7,749 7,789 Net earnings per common share: Basic earnings per common share $ 0.38 $ 0.52 $ 0.71 $ 1.88 Diluted earnings per common share $ 0.38 $ 0.52 $ 0.71 $ 1.87 Awards excluded from the calculation of diluted EPS (3) : Stock options 15 — — — (1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method. (3) Represents stock-based awards not included in the computation of potential common shares for purpose of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock, and, therefore, are considered anti-dilutive.

Regulatory Matters

Regulatory Matters	9 Months Ended
	Sep. 30, 2020
Regulatory Matters [Abstract]
Regulatory Matters	Regulatory Matters The Federal Reserve, the FDIC and the other federal and state bank regulatory agencies establish regulatory capital guidelines for U.S. banking organizations. As of January 1, 2015, the Company and the Bank became subject to new capital rules set forth by the Federal Reserve, the FDIC and the other federal and state bank regulatory agencies. The capital rules revise the banking agencies’ leverage and risk-based capital requirements and the method for calculating risk weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (the Basel III Capital Rules). The Basel III Capital Rules establish a minimum Common Equity Tier 1 capital requirement of 4.5% of risk-weighted assets; set the minimum leverage ratio at 4.0% of total assets; increased the minimum Tier 1 capital to risk-weighted assets requirement from 4.0% to 6.0%; and retained the minimum total capital to risk weighted assets requirement at 8.0%. A “well-capitalized” institution must generally maintain capital ratios 100-200 basis points higher than the minimum guidelines. The Basel III Capital Rules also change the risk weights assigned to certain assets. The Basel III Capital Rules assigned a higher risk weight (150%) to loans that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The Basel III Capital Rules also alter the risk weighting for other assets, including marketable equity securities that are risk weighted generally at 300%. The Basel III Capital Rules require certain components of accumulated other comprehensive income (loss) to be included for purposes of calculating regulatory capital requirements unless a one-time opt-out is exercised. The Bank did exercise its opt-out option and excludes the unrealized gain (loss) on investment securities component of accumulated other comprehensive income (loss) from regulatory capital. The Basel III Capital Rules limit a banking organization’s capital distributions and certain discretionary bonus payments to executive officers if the banking organization does not hold a “capital conservation buffer” of 2.5% in addition to the minimum risk based capital requirement. The “capital conservation buffer” was phased in from January 1, 2016 to January 1, 2019, when the full capital conservation buffer became effective. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. As of September 30, 2020, the Bank and Company met all capital adequacy requirements to which they are subject. There are no conditions or events since then that management believes have changed this conclusion. The capital amounts and ratios for the Bank and the Company at September 30, 2020 and December 31, 2019 were as follows: Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank September 30, 2020 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 207,920 12.36 % $ 117,747 7.00 % $ 109,337 6.50 % Total Capital to Risk-Weighted Assets 228,292 13.57 % 176,621 10.50 % 168,211 10.00 % Tier I Capital to Risk-Weighted Assets 207,920 12.36 % 142,979 8.50 % 134,568 8.00 % Tier I Capital to Average Assets 207,920 9.58 % 86,843 4.00 % 108,553 5.00 % Bankwell Financial Group, Inc. September 30, 2020 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 189,742 11.28 % $ 117,747 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 230,259 13.69 % 176,621 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 189,742 11.28 % 142,979 8.50 % N/A N/A Tier I Capital to Average Assets 189,742 8.73 % 86,909 4.00 % N/A N/A Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank December 31, 2019 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 205,856 12.53 % $ 115,040 7.00 % $ 106,823 6.50 % Total Capital to Risk-Weighted Assets 219,365 13.35 % 172,560 10.50 % 164,343 10.00 % Tier I Capital to Risk-Weighted Assets 205,856 12.53 % 139,691 8.50 % 131,474 8.00 % Tier I Capital to Average Assets 205,856 10.99 % 74,951 4.00 % 93,689 5.00 % Bankwell Financial Group, Inc. December 31, 2019 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 187,155 11.37 % $ 115,253 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 225,871 13.72 % 172,880 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 187,155 11.37 % 139,950 8.50 % N/A N/A Tier I Capital to Average Assets 187,155 9.97 % 75,067 4.00 % N/A N/A Regulatory Restrictions on Dividends The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Company. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. Reserve Requirements on Cash The Bank was not required to maintain a minimum reserve balance in the Federal Reserve Bank (FRB) at September 30, 2020 as the FRB has waived this requirement due to the COVID-19 pandemic. The Bank was required to maintain a minimum reserve balance of $14.1 million in the Federal Reserve Bank at December 31, 2019. This balance is maintained for clearing purposes in the ordinary course of business and does not represent restricted cash.

Deposits

Deposits	9 Months Ended
	Sep. 30, 2020
Deposits [Abstract]
Deposits	Deposits At September 30, 2020 and December 31, 2019, deposits consisted of the following: September 30, December 31, 2019 (In thousands) Noninterest bearing demand deposit accounts $ 234,848 $ 191,518 Interest bearing accounts: NOW 90,776 70,020 Money market 561,101 419,495 Savings 164,590 183,729 Time certificates of deposit 716,213 627,141 Total interest bearing accounts 1,532,680 1,300,385 Total deposits $ 1,767,528 $ 1,491,903 Maturities of time certificates of deposit as of September 30, 2020 and December 31, 2019 are summarized below: September 30, December 31, 2019 (In thousands) 2020 $ 175,750 $ 430,361 2021 335,107 167,933 2022 46,894 28,515 2023 128,269 239 2024 30,160 93 2025 33 — Total $ 716,213 $ 627,141 The aggregate amount of individual certificate accounts, including brokered deposits with balances of $250,000 or more, was approximately $419.3 million at September 30, 2020 and $307.1 million at December 31, 2019. Brokered certificates of deposits totaled $296.0 million at September 30, 2020 and $179.8 million at December 31, 2019. Certificates of deposits from national listing services totaled $23.8 million at September 30, 2020 and $21.3 million at December 31, 2019. Brokered money market accounts totaled $28.7 million at September 30, 2020 and $39.9 million at December 31, 2019. The following table summarizes interest expense by account type for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In thousands) NOW $ 40 $ 26 $ 99 $ 101 Money market 859 1,739 3,213 5,567 Savings 237 740 1,204 2,252 Time certificates of deposits 2,968 3,826 10,107 10,830 Total interest expense on deposits $ 4,104 $ 6,331 $ 14,623 $ 18,750

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Retirement Benefits [Abstract]
Stock-Based Compensation	Stock-Based Compensation Equity award plans The Company has stock options or unvested restricted stock outstanding under three equity award plans, which are collectively referred to as the “Plan”. The current plan under which any future issuances of equity awards will be made is the 2012 BNC Financial Group, Inc. Stock Plan, or the “2012 Plan,” last amended on June 26, 2013. All equity awards made under the 2012 Plan are made by means of an award agreement, which contains the specific terms and conditions of the grant. To date, all equity awards have been in the form of stock options or restricted stock. At September 30, 2020, there were 633,025 shares reserved for future issuance under the 2012 Plan. Stock Options : The Company accounts for stock options based on the fair value at the date of grant and records an expense over the vesting period of such awards on a straight line basis. There were no options granted during the nine months ended September 30, 2020. A summary of the status of outstanding stock options for the nine months ended September 30, 2020 is presented below: Nine Months Ended September 30, 2020 Number of Shares Weighted Average Exercise Price Options outstanding at beginning of period 16,680 $ 16.30 Exercised (1,500) 11.00 Options outstanding at end of period 15,180 16.82 Options exercisable at end of period 15,180 16.82 Intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. The total intrinsic value of share options exercised during the nine months ended September 30, 2020 was $27 thousand. The range of exercise prices for the 15,180 options exercisable at September 30, 2020 was $15.00 to $17.86 per share. The weighted average remaining contractual life for these options was 2.0 years at September 30, 2020. At September 30, 2020, as all awarded options have vested, all of the outstanding options are exercisable, and based on the September 30, 2020 closing market price of $14.15, the outstanding options have no intrinsic value. Restricted Stock : Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. Shares of unvested restricted stock are considered participating securities. Restricted stock awards generally vest over one The following table presents the activity for restricted stock for the nine months ended September 30, 2020: Nine Months Ended September 30, 2020 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of period 110,975 (1) $ 30.88 Granted 86,199 (2) 24.80 Vested (25,591) 30.82 Forfeited (1,500) 31.72 Unvested at end of period 170,083 27.80 (1) Includes 21,750 shares of performance based restricted stock (2) Includes 16,000 shares of performance based restricted stock The total fair value of restricted stock awards vested during the nine months ended September 30, 2020 was $0.6 million. The Company's restricted stock expense for the nine months ended September 30, 2020 and September 30, 2019 was $1.3 million and $0.8 million, respectively. At September 30, 2020, there was $3.4 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.9 years. Performance Based Restricted Stock : The Company has 37,750 shares of performance based restricted stock outstanding as of September 30, 2020 pursuant to the Company’s 2012 Stock Plan. The awards vest over a three

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments The Company manages economic risks, including interest rate, liquidity, and credit risk, by managing the amount, sources, and duration of its funding along with the use of interest rate derivative financial instruments, namely interest rate swaps. The Company does not use derivatives for speculative purposes. As of September 30, 2020, the Company was a party to nine interest rate swaps, designated as hedging instruments, to add stability to interest expense and to manage its exposure to interest rate movements. The notional amount for each swap is $25 million and in each case, the Company has entered into pay-fixed interest rate swaps to convert rolling 90 days Federal Home Loan Bank advances or brokered deposits. As of September 30, 2020, the Company entered into four interest rate swaps not designated as hedging instruments, to minimize interest rate risk exposure with loans to customers. The Company accounts for all non-borrower related interest rate swaps as effective cash flow hedges. None of the interest rate swap agreements contain any credit risk related contingent features. A hedging instrument is expected at inception to be highly effective at offsetting changes in the hedged transactions attributable to the changes in the hedged risk. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Interest rate swaps with a positive fair value are recorded as other assets and interest rate swaps with a negative fair value are recorded as other liabilities on the Consolidated Balance Sheets. Information about derivative instruments at September 30, 2020 and December 31, 2019 is as follows: September 30, 2020: (Dollars in thousands) Notional Amount Original Maturity Maturity Date Received Paid Fair Value Asset (Liability) Derivatives designated as hedging instruments: Interest rate swap $ 25,000 5.0 years July 1, 2021 3-month USD LIBOR 1.22% $ (190) Interest rate swap 25,000 7.0 years August 25, 2024 3-month USD LIBOR 2.04% (1,742) Interest rate swap 25,000 7.0 years August 25, 2024 3-month USD LIBOR 2.04% (1,747) Interest rate swap 25,000 15.0 years January 1, 2034 3-month USD LIBOR 3.01% (7,026) Interest rate swap 25,000 3.0 years December 23, 2022 3-month USD LIBOR 1.28% (595) Interest rate swap 25,000 15.0 years January 1, 2035 3-month USD LIBOR 3.03% (7,472) Interest rate swap 25,000 5.0 years April 9, 2025 3-month USD LIBOR 0.55% (279) Interest rate swap 25,000 5.0 years April 23, 2025 3-month USD LIBOR 0.54% (267) Interest rate swap 25,000 15.0 years August 26, 2035 3-month USD LIBOR 3.05% (7,773) $ 225,000 $ (27,091) Derivatives not designated as hedging instruments: (1) Interest rate swap $ 20,000 20.0 years March 10, 2039 1-month USD LIBOR 5.00% $ (4,528) Interest rate swap 20,000 20.0 years March 10, 2039 1-month USD LIBOR 5.00% 4,528 Interest rate swap 18,500 10.0 years March 10, 2030 1-month USD LIBOR 3.15% (946) Interest rate swap 18,500 10.0 years March 10, 2030 1-month USD LIBOR 3.15% 946 $ 77,000 $ — Total derivatives $ 302,000 $ (27,091) (1) Represents interest rate swaps with commercial banking customers, which are offset by derivatives with a third party. Accrued interest payable related to interest rate swaps as of September 30, 2020 totaled $0.6 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net liability position, including accrued interest, totaled $27.7 million as of September 30, 2020. December 31, 2019: (Dollars in thousands) Notional Amount Original Maturity Maturity Date Received Paid Fair Value Asset (Liability) Derivatives designated as hedging instruments: Interest rate swap $ 25,000 5.0 years January 1, 2020 3-month USD LIBOR 1.83% $ — Interest rate swap 25,000 5.0 years August 26, 2020 3-month USD LIBOR 1.48% 51 Interest rate swap 25,000 5.0 years July 1, 2021 3-month USD LIBOR 1.22% 174 Interest rate swap 25,000 7.0 years August 25, 2024 3-month USD LIBOR 2.04% (396) Interest rate swap 25,000 7.0 years August 25, 2024 3-month USD LIBOR 2.04% (402) Interest rate swap 25,000 15.0 years January 1, 2034 3-month USD LIBOR 3.01% (3,328) Interest rate swap 25,000 3.0 years December 23, 2022 3-month USD LIBOR 1.28% 279 Forward-starting interest rate swap (1) 25,000 15.0 years January 1, 2035 3-month USD LIBOR 3.03% (3,557) Forward-starting interest rate swap (1) 25,000 15.0 years August 26, 2035 3-month USD LIBOR 3.05% (3,512) $ 225,000 $ (10,691) Derivatives not designated as hedging instruments: (2) Interest rate swap $ 20,000 20.0 years March 20, 2039 1-month USD LIBOR 5.00% $ (1,762) Interest rate swap 20,000 20.0 years March 20, 2039 1-month USD LIBOR 5.00% 1,762 $ 40,000 $ — Total derivatives $ 265,000 $ (10,691) (1) The effective date of the forward-starting interest rate swaps listed above are January 2, 2020 and August 26, 2020, respectively. (2) Represents an interest rate swap with a commercial banking customer, which is offset by a derivative with a third party. Accrued interest receivable related to interest rate swaps as of December 31, 2019 totaled $21.6 thousand and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net liability position, including accrued interest, totaled $10.7 million as of December 31, 2019. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $3.7 million to interest expense during the next 12 months. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The interest rate swap assets are presented in other assets and the interest rate swap liabilities are presented in accrued expenses and other liabilities in the Consolidated Balance Sheets. The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes. The Company's cash flow hedge positions consist of interest rate swap transactions as detailed in the table below as of September 30, 2020: Notional Amount Original Effective Date of Hedged Borrowing Duration of Borrowing Counterparty (Dollars in thousands) $ 25,000 July 1, 2016 5.0 years Bank of Montreal 25,000 August 25, 2017 7.0 years Bank of Montreal 25,000 August 25, 2017 7.0 years FHN Financial Capital Markets 25,000 January 2, 2019 15.0 years Bank of Montreal 25,000 December 27, 2019 3.0 years Bank of Montreal 25,000 January 2, 2020 15.0 years Bank of Montreal 25,000 April 15, 2020 5.0 years Goldman Sachs Bank USA 25,000 April 29, 2020 5.0 years Goldman Sachs Bank USA 25,000 August 26, 2020 15.0 years FHN Financial Capital Markets $ 225,000 This hedge strategy converts the rate of interest on short term rolling FHLB advances or brokered deposits to long term fixed interest rates, thereby protecting the Company from interest rate variability. Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three and nine months ended September 30, 2020 and September 30, 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Interest rate swap on FHLB advances and brokered deposits: Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) $ 2,070 $ (5,766) $ (16,400) $ (15,811) Income tax (expense) benefit on items recognized in accumulated other comprehensive income (loss) (451) 1,211 3,654 3,319 Other comprehensive income (loss) $ 1,619 $ (4,555) $ (12,746) $ (12,492) Amount recognized in interest expense on hedged FHLB advances and brokered deposits $ 1,010 $ 742 $ 2,844 $ 2,202 The above unrealized gains and losses are reflective of market interest rates as of the respective balance sheet dates. Generally, a lower interest rate environment will result in a negative impact to comprehensive income whereas a higher interest rate environment will result in a positive impact to comprehensive income. The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at September 30, 2020 and December 31, 2019: September 30, 2020 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets(1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivative Assets $ 5,512 $ — $ 5,512 $ — $ — $ 5,512 (1) Includes accrued interest receivable totaling $38.4 thousand. September 30, 2020 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities(1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities presented in the Statement of Financial Position Financial Instruments Cash Collateral Posted(2) Net Amount Derivative Liabilities $ 33,205 $ — $ 33,205 $ — $ 33,205 $ — (1) Includes accrued interest payable totaling $640.3 thousand. (2) Actual cash collateral posted totaled $33.7 million, total cash collateral posted in the above table represents the total value to net the derivative liabilities to $0. December 31, 2019 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets(1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivative Assets $ 2,363 $ — $ 2,363 $ 591 $ — $ 1,772 (1) Includes accrued interest receivable totaling $97.1 thousand. December 31, 2019 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities(1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities presented in the Statement of Financial Position Financial Instruments Cash Collateral Posted(2) Net Amount Derivative Liabilities $ 13,032 $ — $ 13,032 $ 591 $ 12,441 $ — (1) Includes accrued interest payable totaling $75.5 thousand.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the Consolidated Balance Sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparisons to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction. The estimated fair value amounts have been measured as of the respective period-ends, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk. The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 333,103 $ 333,103 $ 333,103 $ — $ — Federal funds sold 6,380 6,380 6,380 — — Marketable equity securities 2,203 2,203 2,203 — — Available for sale securities 90,563 90,563 10,189 80,374 — Held to maturity securities 16,138 19,816 — 75 19,741 Loans receivable, net 1,600,776 1,611,664 — — 1,611,664 Accrued interest receivable 7,294 7,294 — 7,294 — FHLB stock 7,860 7,860 — 7,860 — Servicing asset, net of valuation allowance 647 647 — — 647 Derivative asset 5,474 5,474 — 5,474 — Financial Liabilities: Noninterest bearing deposits $ 234,848 $ 234,848 $ — $ 234,848 $ — NOW and money market 651,877 651,877 — 651,877 — Savings 164,590 164,590 — 164,590 — Time deposits 716,213 722,506 — — 722,506 Accrued interest payable 1,885 1,885 — 1,885 — Advances from the FHLB 175,000 174,998 — — 174,998 Subordinated debentures 25,245 25,231 — — 25,231 Servicing liability 29 29 — — 29 Derivative liability 32,565 32,565 — 32,565 — December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 78,051 $ 78,051 $ 78,051 $ — $ — Marketable equity securities 2,118 2,118 2,118 — — Available for sale securities 82,439 82,439 10,031 72,408 — Held to maturity securities 16,308 18,307 — 85 18,222 Loans receivable, net 1,588,840 1,589,732 — — 1,589,732 Accrued interest receivable 5,959 5,959 — 5,959 — FHLB stock 7,475 7,475 — 7,475 — Servicing asset, net of valuation allowance 978 978 — — 978 Derivative asset 2,266 2,266 — 2,266 — Financial Liabilities: Noninterest bearing deposits $ 191,518 $ 191,518 $ — $ 191,518 $ — NOW and money market 489,515 489,515 — 489,515 — Savings 183,729 183,729 — 183,729 — Time deposits 627,141 632,436 — — 632,436 Accrued interest payable 2,142 2,142 — 2,142 — Advances from the FHLB 150,000 150,006 — — 150,006 Subordinated debentures 25,207 25,530 — — 25,530 Servicing liability 63 63 — — 63 Derivative liability 12,957 12,957 — 12,957 — The following methods and assumptions were used by management in estimating the fair value of its financial instruments: Cash and due from banks, federal funds sold, accrued interest receivable and accrued interest payable: The carrying amount is a reasonable estimate of fair value. Marketable equity securities, available for sale securities and held to maturity securities: Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The majority of the available for sale securities are considered to be Level 2 as other observable inputs are utilized, such as quoted prices for similar securities. Level 1 investment securities include investments in U.S. treasury notes and in marketable equity securities for which a quoted price is readily available in the market. Level 3 held to maturity securities represent private placement municipal housing authority bonds for which no quoted market price is available. The fair value for these securities is estimated using a discounted cash flow model, using discount rates ranging from 3.1% to 3.5% as of September 30, 2020 and 3.8% to 4.1% as of December 31, 2019. These securities are CRA eligible investments. FHLB stock: The carrying value of FHLB stock approximates fair value based on the most recent redemption provisions of the FHLB. Loans receivable: For variable rate loans which reprice frequently and have no significant change in credit risk, fair values are based on carrying values. The fair value of fixed rate loans are estimated by discounting the future cash flows using the rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value methodology includes prepayment, default and loss severity assumptions applied by the type of loan. The fair value estimate of the loans includes an expected credit loss. Derivative asset (liability): The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company also considers the creditworthiness of each counterparty for assets and the creditworthiness of the Company for liabilities. Servicing asset (liability): Servicing assets and liabilities do not trade in an active, open market with readily observable prices. The Company estimates the fair value of servicing assets and liabilities using discounted cash flow models, incorporating numerous assumptions from the perspective of a market participant, including market discount rates. Deposits: The fair value of demand deposits, regular savings and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit and other time deposits is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities to a schedule of aggregated expected maturities on such deposits. Borrowings and Subordinated Debentures: The fair value of the Company’s borrowings and subordinated debentures is estimated using a discounted cash flow calculation that applies discount rates currently offered based on similar maturities. The Company also considers its own creditworthiness in determining the fair value of its borrowings and subordinated debt. Contractual cash flows for the subordinated debt are reduced based on the estimated rates of default, the severity of losses to be incurred on a default, and the rates at which the subordinated debt is expected to prepay after the call date. Off-balance-sheet instruments: Loan commitments on which the committed interest rate is less than the current market rate are insignificant at September 30, 2020 and December 31, 2019.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company is required to account for certain assets at fair value on a recurring or non-recurring basis. The Company determines fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a specific point in time they are susceptible to material near-term changes. Financial instruments measured at fair value on a recurring basis The following table details the financial instruments carried at fair value on a recurring basis at September 30, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the nine months ended September 30, 2020 and for the year ended December 31, 2019. Fair Value (In thousands) Level 1 Level 2 Level 3 September 30, 2020: Marketable equity securities $ 2,203 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 10,189 71,716 — Corporate bonds — 8,658 — Derivative asset — 5,474 — Derivative liability — 32,565 — December 31, 2019: Marketable equity securities $ 2,118 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 10,031 72,408 — Derivative asset — 2,266 — Derivative liability — 12,957 — Marketable equity securities and available for sale investment securities: The fair value of the Company’s investment securities is estimated by using pricing models or quoted prices of securities with similar characteristics (i.e., matrix pricing) and is classified within Level 1 or Level 2 of the valuation hierarchy. The pricing is primarily sourced from third-party pricing services overseen by management. Derivative assets and liabilities: The Company’s derivative assets and liabilities consist of transactions as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy. Financial instruments measured at fair value on a nonrecurring basis Certain assets and liabilities are measured at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the lower-of-cost-or-market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following table details the financial instruments measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Fair Value (In thousands) Level 1 Level 2 Level 3 September 30, 2020: Impaired loans $ — $ — $ 20,158 Servicing asset, net — — 618 December 31, 2019: Impaired loans $ — $ — $ 22,047 Servicing asset, net — — 915 The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019: Fair Value Valuation Methodology Unobservable Input Range (Dollars in thousands) September 30, 2020: Impaired loans $ 10,595 Appraisals Discount to appraised value 8.00 - 27.00% 9,563 Discounted cash flows Discount rate 3.00 - 7.00% $ 20,158 Servicing asset, net $ 618 Discounted cash flows Discount rate 10.00% (1) Prepayment rate 3.00 - 16.00% December 31, 2019: Impaired loans $ 12,300 Appraisals Discount to appraised value 8.00 - 28.00% 9,747 Discounted cash flows Discount rate 3.60 - 7.00% $ 22,047 Servicing asset, net $ 915 Discounted cash flows Discount rate 10.00 - 11.00% (2) Prepayment rate 3.00 - 19.00% (1) Servicing liabilities totaling $29 thousand were valued using a discount rate of 0.1%. (2) Servicing liabilities totaling $63 thousand were valued using a discount rate of 1.6%. Impaired loans : Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated in accordance with ASC 310-10 when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or other assumptions. Estimates of fair value based on collateral are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. For those loans where the primary source of repayment is cash flow from operations, adjustments include impairment amounts calculated based on the perceived collectability of interest payments on the basis of a discounted cash flow analysis utilizing a discount rate equivalent to the original note rate. Servicing assets and liabilities: When loans are sold, on a servicing retained basis, servicing rights are initially recorded at fair value. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized. The fair value of servicing assets and liabilities are not measured on an ongoing basis but are subject to fair value adjustments when and if the assets or liabilities are deemed to be impaired.

Subordinated debentures

Subordinated debentures	9 Months Ended
	Sep. 30, 2020
Subordinated Borrowings [Abstract]
Subordinated debentures	Subordinated debentures On August 19, 2015, the Company completed a private placement of $25.5 million in aggregate principal amount of fixed rate subordinated notes (the “Notes”) to certain institutional investors. The Notes are non-callable for five years, have a stated maturity of August 15, 2025, and bear interest at a quarterly pay fixed rate of 5.75% per annum to the maturity date. The Notes became callable, in part or in whole, beginning August 2020. The Notes have been structured to qualify for the Company as Tier 2 capital under regulatory guidelines. The net proceeds were used for general corporate purposes, which included maintaining liquidity at the holding company, providing equity capital to the Bank to fund balance sheet growth and the Company's working capital needs. In the third quarter of 2020, the Notes were assigned an investment grade of BBB- by Kroll Bond Rating Agency. The Company recognized $0.4 million in interest expense related to its subordinated debt for each of the three month periods ended September 30, 2020 and 2019. The Company recognized $1.1 million in interest expense related to its subordinated debt for each of the nine month periods ended September 30, 2020 and 2019.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 28, 2020, the Company’s Board of Directors declared a $0.14 per share cash dividend, payable on November 23, 2020 to shareholders of record on November 13, 2020. Subsequent to September 30, 2020, the Company has committed to permanently close its North Haven branch as of December 31, 2020. In addition, the Company rolled out a Voluntary Early Retirement Incentive Plan.

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of consolidation	Principles of consolidation The consolidated financial statements include the accounts of the Company and the Bank, including its wholly owned passive investment company subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of estimates	Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the consolidated balance sheet, and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses, the valuation of derivative instruments, investment securities valuation, evaluation of investment securities for other than temporary impairment and deferred income taxes valuation.
Basis of consolidated financial statement presentation	Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2020. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2019.
Common Shares Repurchases	Common Share Repurchases The Company is incorporated in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances.
Reclassification	Reclassification Certain prior period amounts have been reclassified to conform to the 2020 financial statement presentation. These reclassifications only changed the reporting categories and did not affect the consolidated results of operations or consolidated financial position of the Company.
Recent accounting pronouncements	Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. Recently issued accounting pronouncements not yet adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” This ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. On July 17, 2019, the FASB proposed deferring the effective date of ASC 326 for smaller reporting companies as defined by the SEC. The FASB proposed a three-year deferral for smaller reporting companies, with an effective date of January 1, 2023. On October 16, 2019, the FASB voted in favor of finalizing its proposal to defer the effective date of this standard. The FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company does qualify to defer the adoption of this standard and has not yet adopted this standard. Management continues to evaluate the impact of its future adoption of this guidance on the Company’s financial statements. ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This ASU simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity was required to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, this ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. On October 16, 2019, the FASB voted in favor of a proposal to defer the effective date of this standard in the same manner it is deferring the effective date of ASC 326. The Company does not expect the application of this guidance to have a material impact on the Company’s financial statements. Recently adopted accounting pronouncements ASU No. 2018-13, Fair Value Measurement (Topic 820) : “Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The following disclosure requirements were removed from topic 820 for public entities: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation processes for Level 3 fair value measurements. This update also modified and added disclosure requirements to Topic 820, including adding (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The guidance was effective for the Company on January 1, 2020. The application of this guidance did not have a material impact on the Company's financial statements. ASU No. 2020-04, Reference Rate Reform (Topic 848): "Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Optional expedients include that modifications of contracts should be accounted for by prospectively adjusting the effective interest rate and modifications of leases should be accounted for as a continuation of the existing contract with no reassessments of lease classification and discount rate or remeasurements of lease payments. This ASU also provides many practical expedients for derivative accounting. In addition, an entity may elect to sell and/or transfer held to maturity securities that reference a rate affected by the reference rate reform classified as held to maturity prior to January 1, 2020. The application of this guidance did not have a material impact on the Company's financial statements.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities	The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at September 30, 2020 were as follows: September 30, 2020 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Due from one through five years $ 9,970 $ 219 $ — $ 10,189 Due from five through ten years 8,082 973 — 9,055 Due after ten years 60,174 2,487 — 62,661 Total U.S. Government and agency obligations 78,226 3,679 — 81,905 Corporate bonds Due from five through ten years 7,000 137 — 7,137 Due after ten years 1,500 21 — 1,521 Total corporate bonds 8,500 158 — 8,658 Total available for sale securities $ 86,726 $ 3,837 $ — $ 90,563 Held to maturity securities: State agency and municipal obligations Due after ten years $ 16,074 $ 3,667 $ — $ 19,741 Government-sponsored mortgage backed securities No contractual maturity 64 11 — 75 Total held to maturity securities $ 16,138 $ 3,678 $ — $ 19,816 The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2019 were as follows: December 31, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 2,100 $ — $ (1) $ 2,099 Due from one through five years 9,950 81 — 10,031 Due from five through ten years 8,311 218 (1) 8,528 Due after ten years 60,902 879 — 61,781 Total available for sale securities $ 81,263 $ 1,178 $ (2) $ 82,439 Held to maturity securities: State agency and municipal obligations Due after ten years $ 16,231 $ 1,991 $ — $ 18,222 Government-sponsored mortgage backed securities No contractual maturity 77 8 — 85 Total held to maturity securities $ 16,308 $ 1,999 $ — $ 18,307
Schedule of fair value and related unrealized losses of temporarily impaired investment securities, aggregated by investment category	The following table provides information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019: Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Value Unrealized Percent Fair Value Unrealized Percent Fair Value Unrealized Percent (Dollars in thousands) December 31, 2019 U.S. Government and agency obligations $ 99 $ (1) 1.01 % $ 998 $ (1) 0.13 % $ 1,097 $ (2) 0.21 % Total investment securities $ 99 $ (1) 1.01 % $ 998 $ (1) 0.13 % $ 1,097 $ (2) 0.21 %

Loans Receivable and Allowanc_2

Loans Receivable and Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Schedule of loan portfolio	The following table sets forth a summary of the loan portfolio at September 30, 2020 and December 31, 2019: (In thousands) September 30, 2020 December 31, 2019 Real estate loans: Residential $ 120,531 $ 147,109 Commercial 1,105,862 1,128,614 Construction 96,508 98,583 1,322,901 1,374,306 Commercial business (1) 301,747 230,028 Consumer 78 150 Total loans 1,624,726 1,604,484 Allowance for loan losses (20,372) (13,509) Deferred loan origination fees, net (3,578) (2,137) Unamortized loan premiums — 2 Loans receivable, net $ 1,600,776 $ 1,588,840 (1) The September 30, 2020 balance includes $56.7 million of Paycheck Protection Program ("PPP") loans made under the Coronavirus Aid, Relief and Economic Security Act ("CARES Act").
Schedule of portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio	The following tables set forth the activity in the Company’s allowance for loan losses for the three and nine months ended September 30, 2020 and 2019, by portfolio segment: The allowance for loan losses as of September 30, 2020 totaled $20.4 million, an increase of $6.9 million when compared to December 31, 2019. This increase in loan loss reserves is driven by management’s assessment of increased credit risk relating to economic disruption and uncertainty caused by the COVID-19 pandemic. Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended September 30, 2020 Beginning balance $ 809 $ 14,409 $ 441 $ 4,003 $ — $ 19,662 Charge-offs — — — — (4) (4) Recoveries — — — — 2 2 (Credits) provisions (95) 491 (7) 321 2 712 Ending balance $ 714 $ 14,900 $ 434 $ 4,324 $ — $ 20,372 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended September 30, 2019 Beginning balance $ 923 $ 9,910 $ 259 $ 2,797 $ 1 $ 13,890 Charge-offs (78) (594) — (748) (57) (1,477) Recoveries — — — 2 24 26 (Credits) provisions (54) 778 2 14 33 773 Ending balance $ 791 $ 10,094 $ 261 $ 2,065 $ 1 $ 13,212 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Nine Months Ended September 30, 2020 Beginning balance $ 730 $ 10,551 $ 324 $ 1,903 $ 1 $ 13,509 Charge-offs — — — (7) (29) (36) Recoveries — — — 1 2 3 (Credits) provisions (16) 4,349 110 2,427 26 6,896 Ending balance $ 714 $ 14,900 $ 434 $ 4,324 $ — $ 20,372 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Nine Months Ended September 30, 2019 Beginning balance $ 857 $ 11,562 $ 140 $ 2,902 $ 1 $ 15,462 Charge-offs (875) (594) — (884) (70) (2,423) Recoveries — — — 18 28 46 Provisions (credits) 809 (874) 121 29 42 127 Ending balance $ 791 $ 10,094 $ 261 $ 2,065 $ 1 $ 13,212 Loans evaluated for impairment and the related allowance for loan losses as of September 30, 2020 and December 31, 2019 were as follows: Portfolio Allowance (In thousands) September 30, 2020 Loans individually evaluated for impairment: Residential real estate $ 4,016 $ — Commercial real estate 13,565 1,493 Commercial business 4,100 30 Subtotal 21,681 1,523 Loans collectively evaluated for impairment: Residential real estate 116,515 714 Commercial real estate 1,092,297 13,407 Construction 96,508 434 Commercial business 297,647 4,294 Consumer 78 — Subtotal 1,603,045 18,849 Total $ 1,624,726 $ 20,372 Portfolio Allowance (In thousands) December 31, 2019 Loans individually evaluated for impairment: Residential real estate $ 4,020 $ — Commercial real estate 14,203 372 Commercial business 4,330 134 Subtotal 22,553 506 Loans collectively evaluated for impairment: Residential real estate 143,089 730 Commercial real estate 1,114,411 10,179 Construction 98,583 324 Commercial business 225,698 1,769 Consumer 150 1 Subtotal 1,581,931 13,003 Total $ 1,604,484 $ 13,509
Schedule of loan portfolio quality indicators by portfolio segment	The following tables present credit risk ratings by loan segment as of September 30, 2020 and December 31, 2019: Commercial Credit Quality Indicators September 30, 2020 December 31, 2019 Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total (In thousands) Pass $ 1,085,654 $ 87,511 $ 294,588 $ 1,467,753 $ 1,104,164 $ 98,583 $ 208,932 $ 1,411,679 Special Mention 6,642 8,997 3,058 18,697 10,247 — 16,766 27,013 Substandard 13,566 — 659 14,225 14,203 — 854 15,057 Doubtful — — 3,442 3,442 — — 3,476 3,476 Loss — — — — — — — — Total loans $ 1,105,862 $ 96,508 $ 301,747 $ 1,504,117 $ 1,128,614 $ 98,583 $ 230,028 $ 1,457,225 Residential and Consumer Credit Quality Indicators September 30, 2020 December 31, 2019 Residential Real Estate Consumer Total Residential Real Estate Consumer Total (In thousands) Pass $ 116,515 $ 78 $ 116,593 $ 143,089 $ 150 $ 143,239 Special Mention — — — — — — Substandard 3,836 — 3,836 3,832 — 3,832 Doubtful 180 — 180 188 — 188 Loss — — — — — — Total loans $ 120,531 $ 78 $ 120,609 $ 147,109 $ 150 $ 147,259
Schedule of information with respect to our loan portfolio delinquencies by portfolio segment and amount	The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of September 30, 2020 and December 31, 2019: September 30, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 180 $ 912 $ — $ 1,092 $ 119,439 $ 120,531 Commercial real estate 109 84 2,533 2,726 1,103,136 1,105,862 Construction — — — — 96,508 96,508 Commercial business — 234 3,444 3,678 298,069 301,747 Consumer — — — — 78 78 Total loans $ 289 $ 1,230 $ 5,977 $ 7,496 $ 1,617,230 $ 1,624,726 December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ — $ 943 $ 281 $ 1,224 $ 145,885 $ 147,109 Commercial real estate 355 — 5,935 6,290 1,122,324 1,128,614 Construction 1,357 — — 1,357 97,226 98,583 Commercial business — — 3,455 3,455 226,573 230,028 Consumer — — — — 150 150 Total loans $ 1,712 $ 943 $ 9,671 $ 12,326 $ 1,592,158 $ 1,604,484
Schedule of nonaccrual loans by portfolio segment	The following is a summary of nonaccrual loans by portfolio segment as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (In thousands) Residential real estate $ 1,596 $ 1,560 Commercial real estate 4,812 5,222 Commercial business 3,760 3,806 Total $ 10,168 $ 10,588
Schedule of summarizes impaired loans	The following table summarizes impaired loans by portfolio segment as of September 30, 2020 and December 31, 2019: Carrying Amount Unpaid Principal Balance Associated Allowance September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,016 $ 4,020 $ 4,219 $ 4,144 $ — $ — Commercial real estate 7,312 8,571 7,648 8,859 — — Commercial business 4,070 3,915 5,302 5,126 — — Total impaired loans without a valuation allowance 15,398 16,506 17,169 18,129 — — Impaired loans with a valuation allowance: Commercial real estate $ 6,253 $ 5,632 $ 6,268 $ 5,647 $ 1,493 $ 372 Commercial business 30 415 30 417 30 134 Total impaired loans with a valuation allowance 6,283 6,047 6,298 6,064 1,523 506 Total impaired loans $ 21,681 $ 22,553 $ 23,467 $ 24,193 $ 1,523 $ 506 The following tables summarizes the average carrying amount of impaired loans and interest income recognized on impaired loans by portfolio segment for the three and nine months ended September 30, 2020 and 2019: Average Carrying Amount Interest Income Recognized Three Months Ended September 30, Three Months Ended September 30, 2020 2019 2020 2019 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,035 $ 4,076 $ 16 $ 31 Commercial real estate 7,376 5,357 37 39 Commercial business 4,123 1,253 5 7 Total impaired loans without a valuation allowance 15,534 10,686 58 77 Impaired loans with a valuation allowance: Commercial real estate $ 6,259 $ 766 $ 78 $ 3 Commercial business 30 2,323 — 1 Total impaired loans with a valuation allowance 6,289 3,089 78 4 Total impaired loans $ 21,823 $ 13,775 $ 136 $ 81 Average Carrying Amount Interest Income Recognized Nine Months Ended Nine Months Ended 2020 2019 2020 2019 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,083 $ 4,112 $ 70 $ 92 Commercial real estate 7,513 4,701 109 155 Commercial business 4,173 1,368 15 19 Total impaired loans without a valuation allowance 15,769 10,181 194 266 Impaired loans with a valuation allowance: Commercial real estate $ 6,278 $ 778 $ 204 $ 5 Commercial business 30 2,738 — 8 Total impaired loans with a valuation allowance 6,308 3,516 204 13 Total impaired loans $ 22,077 $ 13,697 $ 398 $ 279
Schedule of loans whose terms were modified as TDRs during the periods	Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Nine Months Ended September 30, Residential real estate — 1 $ — $ 34 $ — $ 34 Commercial business — 2 — 465 — 465 Total — 3 $ — $ 499 $ — $ 499
Schedule of information on how loans were modified as a TDR	The following table provides information on how loans were modified as TDRs during the nine months ended September 30, 2020 and September 30, 2019. There were no loans modified as TDRs during the three months ended September 30, 2020 and September 30, 2019. Nine Months Ended September 30, 2020 2019 (In thousands) Maturity concession $ — $ 125 Rate and payment concession — 374 Total $ — $ 499

Comprehensive Income (Tables)

Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Schedule of changes in accumulated other comprehensive income (loss) by component	The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax for the three and nine months ended September 30, 2020 and September 30, 2019: Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at June 30, 2020 $ 3,076 $ (22,809) $ (19,733) Other comprehensive (loss) income before reclassifications, net of tax (76) 1,619 1,543 Net other comprehensive (loss) income (76) 1,619 1,543 Balance at September 30, 2020 $ 3,000 $ (21,190) $ (18,190) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at June 30, 2019 $ 670 $ (7,595) $ (6,925) Other comprehensive income (loss) before reclassifications, net of tax 279 (4,555) (4,276) Net other comprehensive income (loss) 279 (4,555) (4,276) Balance at September 30, 2019 $ 949 $ (12,150) $ (11,201) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2019 $ 928 $ (8,444) $ (7,516) Other comprehensive income (loss) before reclassifications, net of tax 2,072 (12,746) (10,674) Net other comprehensive income (loss) 2,072 (12,746) (10,674) Balance at September 30, 2020 $ 3,000 $ (21,190) $ (18,190) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2018 $ (1,379) $ 342 $ (1,037) Other comprehensive income (loss) before reclassifications, net of tax 2,388 (12,492) (10,104) Amounts reclassified from accumulated other comprehensive income, net of tax (60) — (60) Net other comprehensive income (loss) 2,328 (12,492) (10,164) Balance at September 30, 2019 $ 949 $ (12,150) $ (11,201)
Schedule of reclassified from accumulated other comprehensive income or loss	The following table provides information for the items reclassified from accumulated other comprehensive income or loss: Accumulated Other Comprehensive Income Components Three Months Ended September 30, Nine Months Ended September 30, Associated Line Item in the Consolidated Statements of Income 2020 2019 2020 2019 (In thousands) Available for sale securities: Unrealized gains on investments $ — $ — $ — $ 76 Net gain on sale of available for sale securities Tax expense — — — (16) Income tax expense Net of tax $ — $ — $ — $ 60

Earnings per share ("EPS") (Tab

Earnings per share ("EPS") (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Schedule of reconciliation of earnings available to common stockholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding	The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In thousands, except per share data) Net income $ 2,991 $ 4,088 $ 5,568 $ 14,744 Dividends to participating securities (1) (19) (12) (52) (35) Undistributed earnings allocated to participating securities (1) (32) (35) (34) (135) Net income for earnings per share calculation $ 2,940 $ 4,041 $ 5,482 $ 14,574 Weighted average shares outstanding, basic 7,721 7,750 7,729 7,761 Effect of dilutive equity-based awards (2) — 16 20 28 Weighted average shares outstanding, diluted 7,721 7,766 7,749 7,789 Net earnings per common share: Basic earnings per common share $ 0.38 $ 0.52 $ 0.71 $ 1.88 Diluted earnings per common share $ 0.38 $ 0.52 $ 0.71 $ 1.87 Awards excluded from the calculation of diluted EPS (3) : Stock options 15 — — — (1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method. (3) Represents stock-based awards not included in the computation of potential common shares for purpose of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock, and, therefore, are considered anti-dilutive.

Regulatory Matters (Tables)

Regulatory Matters (Tables)	9 Months Ended
	Sep. 30, 2020
Regulatory Matters [Abstract]
Schedule of capital amounts and ratios	The capital amounts and ratios for the Bank and the Company at September 30, 2020 and December 31, 2019 were as follows: Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank September 30, 2020 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 207,920 12.36 % $ 117,747 7.00 % $ 109,337 6.50 % Total Capital to Risk-Weighted Assets 228,292 13.57 % 176,621 10.50 % 168,211 10.00 % Tier I Capital to Risk-Weighted Assets 207,920 12.36 % 142,979 8.50 % 134,568 8.00 % Tier I Capital to Average Assets 207,920 9.58 % 86,843 4.00 % 108,553 5.00 % Bankwell Financial Group, Inc. September 30, 2020 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 189,742 11.28 % $ 117,747 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 230,259 13.69 % 176,621 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 189,742 11.28 % 142,979 8.50 % N/A N/A Tier I Capital to Average Assets 189,742 8.73 % 86,909 4.00 % N/A N/A Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank December 31, 2019 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 205,856 12.53 % $ 115,040 7.00 % $ 106,823 6.50 % Total Capital to Risk-Weighted Assets 219,365 13.35 % 172,560 10.50 % 164,343 10.00 % Tier I Capital to Risk-Weighted Assets 205,856 12.53 % 139,691 8.50 % 131,474 8.00 % Tier I Capital to Average Assets 205,856 10.99 % 74,951 4.00 % 93,689 5.00 % Bankwell Financial Group, Inc. December 31, 2019 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 187,155 11.37 % $ 115,253 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 225,871 13.72 % 172,880 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 187,155 11.37 % 139,950 8.50 % N/A N/A Tier I Capital to Average Assets 187,155 9.97 % 75,067 4.00 % N/A N/A

Deposits (Tables)

Deposits (Tables)	9 Months Ended
	Sep. 30, 2020
Deposits [Abstract]
Deposit Liabilities	At September 30, 2020 and December 31, 2019, deposits consisted of the following: September 30, December 31, 2019 (In thousands) Noninterest bearing demand deposit accounts $ 234,848 $ 191,518 Interest bearing accounts: NOW 90,776 70,020 Money market 561,101 419,495 Savings 164,590 183,729 Time certificates of deposit 716,213 627,141 Total interest bearing accounts 1,532,680 1,300,385 Total deposits $ 1,767,528 $ 1,491,903
Time Deposits Maturity Schedule	Maturities of time certificates of deposit as of September 30, 2020 and December 31, 2019 are summarized below: September 30, December 31, 2019 (In thousands) 2020 $ 175,750 $ 430,361 2021 335,107 167,933 2022 46,894 28,515 2023 128,269 239 2024 30,160 93 2025 33 — Total $ 716,213 $ 627,141
Interest Expense Disclosure	The following table summarizes interest expense by account type for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In thousands) NOW $ 40 $ 26 $ 99 $ 101 Money market 859 1,739 3,213 5,567 Savings 237 740 1,204 2,252 Time certificates of deposits 2,968 3,826 10,107 10,830 Total interest expense on deposits $ 4,104 $ 6,331 $ 14,623 $ 18,750

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Retirement Benefits [Abstract]
Schedule of status of outstanding stock options	A summary of the status of outstanding stock options for the nine months ended September 30, 2020 is presented below: Nine Months Ended September 30, 2020 Number of Shares Weighted Average Exercise Price Options outstanding at beginning of period 16,680 $ 16.30 Exercised (1,500) 11.00 Options outstanding at end of period 15,180 16.82 Options exercisable at end of period 15,180 16.82
Schedule of activity for restricted stock	The following table presents the activity for restricted stock for the nine months ended September 30, 2020: Nine Months Ended September 30, 2020 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of period 110,975 (1) $ 30.88 Granted 86,199 (2) 24.80 Vested (25,591) 30.82 Forfeited (1,500) 31.72 Unvested at end of period 170,083 27.80 (1) Includes 21,750 shares of performance based restricted stock (2) Includes 16,000 shares of performance based restricted stock

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivative instruments	Information about derivative instruments at September 30, 2020 and December 31, 2019 is as follows: September 30, 2020: (Dollars in thousands) Notional Amount Original Maturity Maturity Date Received Paid Fair Value Asset (Liability) Derivatives designated as hedging instruments: Interest rate swap $ 25,000 5.0 years July 1, 2021 3-month USD LIBOR 1.22% $ (190) Interest rate swap 25,000 7.0 years August 25, 2024 3-month USD LIBOR 2.04% (1,742) Interest rate swap 25,000 7.0 years August 25, 2024 3-month USD LIBOR 2.04% (1,747) Interest rate swap 25,000 15.0 years January 1, 2034 3-month USD LIBOR 3.01% (7,026) Interest rate swap 25,000 3.0 years December 23, 2022 3-month USD LIBOR 1.28% (595) Interest rate swap 25,000 15.0 years January 1, 2035 3-month USD LIBOR 3.03% (7,472) Interest rate swap 25,000 5.0 years April 9, 2025 3-month USD LIBOR 0.55% (279) Interest rate swap 25,000 5.0 years April 23, 2025 3-month USD LIBOR 0.54% (267) Interest rate swap 25,000 15.0 years August 26, 2035 3-month USD LIBOR 3.05% (7,773) $ 225,000 $ (27,091) Derivatives not designated as hedging instruments: (1) Interest rate swap $ 20,000 20.0 years March 10, 2039 1-month USD LIBOR 5.00% $ (4,528) Interest rate swap 20,000 20.0 years March 10, 2039 1-month USD LIBOR 5.00% 4,528 Interest rate swap 18,500 10.0 years March 10, 2030 1-month USD LIBOR 3.15% (946) Interest rate swap 18,500 10.0 years March 10, 2030 1-month USD LIBOR 3.15% 946 $ 77,000 $ — Total derivatives $ 302,000 $ (27,091) (1) Represents interest rate swaps with commercial banking customers, which are offset by derivatives with a third party. December 31, 2019: (Dollars in thousands) Notional Amount Original Maturity Maturity Date Received Paid Fair Value Asset (Liability) Derivatives designated as hedging instruments: Interest rate swap $ 25,000 5.0 years January 1, 2020 3-month USD LIBOR 1.83% $ — Interest rate swap 25,000 5.0 years August 26, 2020 3-month USD LIBOR 1.48% 51 Interest rate swap 25,000 5.0 years July 1, 2021 3-month USD LIBOR 1.22% 174 Interest rate swap 25,000 7.0 years August 25, 2024 3-month USD LIBOR 2.04% (396) Interest rate swap 25,000 7.0 years August 25, 2024 3-month USD LIBOR 2.04% (402) Interest rate swap 25,000 15.0 years January 1, 2034 3-month USD LIBOR 3.01% (3,328) Interest rate swap 25,000 3.0 years December 23, 2022 3-month USD LIBOR 1.28% 279 Forward-starting interest rate swap (1) 25,000 15.0 years January 1, 2035 3-month USD LIBOR 3.03% (3,557) Forward-starting interest rate swap (1) 25,000 15.0 years August 26, 2035 3-month USD LIBOR 3.05% (3,512) $ 225,000 $ (10,691) Derivatives not designated as hedging instruments: (2) Interest rate swap $ 20,000 20.0 years March 20, 2039 1-month USD LIBOR 5.00% $ (1,762) Interest rate swap 20,000 20.0 years March 20, 2039 1-month USD LIBOR 5.00% 1,762 $ 40,000 $ — Total derivatives $ 265,000 $ (10,691) (1) The effective date of the forward-starting interest rate swaps listed above are January 2, 2020 and August 26, 2020, respectively. (2) Represents an interest rate swap with a commercial banking customer, which is offset by a derivative with a third party.
Schedule of interest rate swap transactions	The Company's cash flow hedge positions consist of interest rate swap transactions as detailed in the table below as of September 30, 2020: Notional Amount Original Effective Date of Hedged Borrowing Duration of Borrowing Counterparty (Dollars in thousands) $ 25,000 July 1, 2016 5.0 years Bank of Montreal 25,000 August 25, 2017 7.0 years Bank of Montreal 25,000 August 25, 2017 7.0 years FHN Financial Capital Markets 25,000 January 2, 2019 15.0 years Bank of Montreal 25,000 December 27, 2019 3.0 years Bank of Montreal 25,000 January 2, 2020 15.0 years Bank of Montreal 25,000 April 15, 2020 5.0 years Goldman Sachs Bank USA 25,000 April 29, 2020 5.0 years Goldman Sachs Bank USA 25,000 August 26, 2020 15.0 years FHN Financial Capital Markets $ 225,000
Schedule of changes in the consolidated statements of comprehensive income related to interest rate derivatives designated as hedges of cash flows	Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three and nine months ended September 30, 2020 and September 30, 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Interest rate swap on FHLB advances and brokered deposits: Unrealized gains (losses) recognized in accumulated other comprehensive income (loss) $ 2,070 $ (5,766) $ (16,400) $ (15,811) Income tax (expense) benefit on items recognized in accumulated other comprehensive income (loss) (451) 1,211 3,654 3,319 Other comprehensive income (loss) $ 1,619 $ (4,555) $ (12,746) $ (12,492) Amount recognized in interest expense on hedged FHLB advances and brokered deposits $ 1,010 $ 742 $ 2,844 $ 2,202
Summarized gross and net information abut derivative instruments that are offset in the Consolidated Balance Sheets	The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at September 30, 2020 and December 31, 2019: September 30, 2020 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets(1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivative Assets $ 5,512 $ — $ 5,512 $ — $ — $ 5,512 (1) Includes accrued interest receivable totaling $38.4 thousand. September 30, 2020 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities(1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities presented in the Statement of Financial Position Financial Instruments Cash Collateral Posted(2) Net Amount Derivative Liabilities $ 33,205 $ — $ 33,205 $ — $ 33,205 $ — (1) Includes accrued interest payable totaling $640.3 thousand. (2) Actual cash collateral posted totaled $33.7 million, total cash collateral posted in the above table represents the total value to net the derivative liabilities to $0. December 31, 2019 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets(1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivative Assets $ 2,363 $ — $ 2,363 $ 591 $ — $ 1,772 (1) Includes accrued interest receivable totaling $97.1 thousand. December 31, 2019 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities(1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities presented in the Statement of Financial Position Financial Instruments Cash Collateral Posted(2) Net Amount Derivative Liabilities $ 13,032 $ — $ 13,032 $ 591 $ 12,441 $ — (1) Includes accrued interest payable totaling $75.5 thousand.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of carrying values and fair values of the Company s financial instruments	The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 333,103 $ 333,103 $ 333,103 $ — $ — Federal funds sold 6,380 6,380 6,380 — — Marketable equity securities 2,203 2,203 2,203 — — Available for sale securities 90,563 90,563 10,189 80,374 — Held to maturity securities 16,138 19,816 — 75 19,741 Loans receivable, net 1,600,776 1,611,664 — — 1,611,664 Accrued interest receivable 7,294 7,294 — 7,294 — FHLB stock 7,860 7,860 — 7,860 — Servicing asset, net of valuation allowance 647 647 — — 647 Derivative asset 5,474 5,474 — 5,474 — Financial Liabilities: Noninterest bearing deposits $ 234,848 $ 234,848 $ — $ 234,848 $ — NOW and money market 651,877 651,877 — 651,877 — Savings 164,590 164,590 — 164,590 — Time deposits 716,213 722,506 — — 722,506 Accrued interest payable 1,885 1,885 — 1,885 — Advances from the FHLB 175,000 174,998 — — 174,998 Subordinated debentures 25,245 25,231 — — 25,231 Servicing liability 29 29 — — 29 Derivative liability 32,565 32,565 — 32,565 — December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 78,051 $ 78,051 $ 78,051 $ — $ — Marketable equity securities 2,118 2,118 2,118 — — Available for sale securities 82,439 82,439 10,031 72,408 — Held to maturity securities 16,308 18,307 — 85 18,222 Loans receivable, net 1,588,840 1,589,732 — — 1,589,732 Accrued interest receivable 5,959 5,959 — 5,959 — FHLB stock 7,475 7,475 — 7,475 — Servicing asset, net of valuation allowance 978 978 — — 978 Derivative asset 2,266 2,266 — 2,266 — Financial Liabilities: Noninterest bearing deposits $ 191,518 $ 191,518 $ — $ 191,518 $ — NOW and money market 489,515 489,515 — 489,515 — Savings 183,729 183,729 — 183,729 — Time deposits 627,141 632,436 — — 632,436 Accrued interest payable 2,142 2,142 — 2,142 — Advances from the FHLB 150,000 150,006 — — 150,006 Subordinated debentures 25,207 25,530 — — 25,530 Servicing liability 63 63 — — 63 Derivative liability 12,957 12,957 — 12,957 —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of financial instruments carried at fair value on a recurring basis	The following table details the financial instruments carried at fair value on a recurring basis at September 30, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the nine months ended September 30, 2020 and for the year ended December 31, 2019. Fair Value (In thousands) Level 1 Level 2 Level 3 September 30, 2020: Marketable equity securities $ 2,203 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 10,189 71,716 — Corporate bonds — 8,658 — Derivative asset — 5,474 — Derivative liability — 32,565 — December 31, 2019: Marketable equity securities $ 2,118 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 10,031 72,408 — Derivative asset — 2,266 — Derivative liability — 12,957 —
Schedule of financial instruments carried at fair value on a nonrecurring basis	The following table details the financial instruments measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Fair Value (In thousands) Level 1 Level 2 Level 3 September 30, 2020: Impaired loans $ — $ — $ 20,158 Servicing asset, net — — 618 December 31, 2019: Impaired loans $ — $ — $ 22,047 Servicing asset, net — — 915
Schedule of quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis	The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019: Fair Value Valuation Methodology Unobservable Input Range (Dollars in thousands) September 30, 2020: Impaired loans $ 10,595 Appraisals Discount to appraised value 8.00 - 27.00% 9,563 Discounted cash flows Discount rate 3.00 - 7.00% $ 20,158 Servicing asset, net $ 618 Discounted cash flows Discount rate 10.00% (1) Prepayment rate 3.00 - 16.00% December 31, 2019: Impaired loans $ 12,300 Appraisals Discount to appraised value 8.00 - 28.00% 9,747 Discounted cash flows Discount rate 3.60 - 7.00% $ 22,047 Servicing asset, net $ 915 Discounted cash flows Discount rate 10.00 - 11.00% (2) Prepayment rate 3.00 - 19.00% (1) Servicing liabilities totaling $29 thousand were valued using a discount rate of 0.1%.

Investment Securities - Summary

Investment Securities - Summary of amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available for sale securities:
Amortized cost	$ 86,726	$ 81,263
Gross unrealized gains	3,837	1,178
Gross unrealized losses	0	(2)
Available for sale securities	90,563	82,439
Held to maturity securities:
Amortized cost	16,138	16,308
Gross unrealized gains	3,678	1,999
Gross unrealized losses	0	0
Fair value	19,816	18,307
U.S. Government and agency obligations
Available for sale securities:
Amortized cost, less than one year		2,100
Gross unrealized gains, less than one year		0
Gross unrealized losses, less than one year		(1)
Fair value, less than one year		2,099
Amortized cost, due from one through five years	9,970	9,950
Gross unrealized gains, due from one through five years	219	81
Gross unrealized losses, due from one through five years	0	0
Fair value, due from one through five years	10,189	10,031
Amortized cost, due from five through ten years	8,082	8,311
Gross unrealized gains, due from five through ten years	973	218
Gross unrealized losses, due from five through ten years	0	(1)
Fair value, due from five through ten years	9,055	8,528
Amortized cost, due after ten years	60,174	60,902
Gross unrealized gains, due after ten years	2,487	879
Gross unrealized losses, due after ten years	0	0
Fair value, due after ten years	62,661	61,781
Amortized cost	78,226
Gross unrealized gains	3,679
Gross unrealized losses	0
Available for sale securities	81,905
Corporate bonds
Available for sale securities:
Amortized cost, due from five through ten years	7,000
Gross unrealized gains, due from five through ten years	137
Gross unrealized losses, due from five through ten years	0
Fair value, due from five through ten years	7,137
Amortized cost, due after ten years	1,500
Gross unrealized gains, due after ten years	21
Gross unrealized losses, due after ten years	0
Fair value, due after ten years	1,521
Amortized cost	8,500
Gross unrealized gains	158
Gross unrealized losses	0
Available for sale securities	8,658
State agency and municipal obligations
Held to maturity securities:
Amortized cost, due after ten years	16,074	16,231
Gross unrealized gains, due after ten years	3,667	1,991
Gross unrealized losses, due after ten years	0	0
Fair Value, due after ten years	19,741	18,222
Government-sponsored mortgage backed securities
Held to maturity securities:
Amortized cost, no contractual maturity	64	77
Gross unrealized gains, no contractual maturity	11	8
Gross unrealized losses, no contractual maturity	0	0
Fair Value, no contractual maturity	$ 75	$ 85

Investment Securities - Narrati

Investment Securities - Narratives (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Security	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Security	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)Security
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales of securities	$ 0		$ 0
Gross realized gains	0	$ 0	0	$ 76,000
Gross realized losses				$ 17,000
Marketable equity securities, at fair value	2,203,000		2,203,000		$ 2,118,000
Marketable equity securities at amortized cost	$ 2,100,000		$ 2,100,000		$ 2,000,000
Number of available for sales debt securities in continuous loss position (positions) | Security	0		0		2

Investment Securities - Informa

Investment Securities - Information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities (Details) $ in Thousands	Dec. 31, 2019USD ($)
Length of Time in Continuous Unrealized Loss Position
Less than 12 months - fair value	$ 99
Less than 12 months - unrealized loss	$ (1)
Less than 12 months - percent decline from amortized cost	1.01%
12 months or more - fair value	$ 998
12 months or more - unrealized loss	$ (1)
12 months or more - Percent decline from amortized cost	0.13%
Fair value - total	$ 1,097
Unrealized loss - total	$ (2)
Percent decline from amortized cost - total	0.21%
U.S. Government and agency obligations
Length of Time in Continuous Unrealized Loss Position
Less than 12 months - fair value	$ 99
Less than 12 months - unrealized loss	$ (1)
Less than 12 months - percent decline from amortized cost	1.01%
12 months or more - fair value	$ 998
12 months or more - unrealized loss	$ (1)
12 months or more - Percent decline from amortized cost	0.13%
Fair value - total	$ 1,097
Unrealized loss - total	$ (2)
Percent decline from amortized cost - total	0.21%

Loans Receivable and Allowanc_3

Loans Receivable and Allowance for Loan Losses - Summary of loan portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure
Total loans	$ 1,624,726		$ 1,604,484
Allowance for loan losses	(20,372)	$ (19,662)	(13,509)	$ (13,212)	$ (13,890)	$ (15,462)
Deferred loan origination fees, net	(3,578)		(2,137)
Unamortized loan premiums	0		2
Loans receivable, net	1,600,776		1,588,840
Real estate loan
Loans and Leases Receivable Disclosure
Total loans	1,322,901		1,374,306
Residential
Loans and Leases Receivable Disclosure
Total loans	120,531		147,109
Allowance for loan losses	(714)	(809)	(730)	(791)	(923)	(857)
Commercial
Loans and Leases Receivable Disclosure
Total loans	1,105,862		1,128,614
Allowance for loan losses	(14,900)	(14,409)	(10,551)	(10,094)	(9,910)	(11,562)
Construction
Loans and Leases Receivable Disclosure
Total loans	96,508		98,583
Allowance for loan losses	(434)	(441)	(324)	(261)	(259)	(140)
Commercial business
Loans and Leases Receivable Disclosure
Total loans	301,747		230,028
Allowance for loan losses	(4,324)	(4,003)	(1,903)	(2,065)	(2,797)	(2,902)
Commercial business | PPP loans
Loans and Leases Receivable Disclosure
Total loans	56,700
Consumer
Loans and Leases Receivable Disclosure
Total loans	78		150
Allowance for loan losses	$ 0	$ 0	$ (1)	$ (1)	$ (1)	$ (1)

Loans Receivable and Allowanc_4

Loans Receivable and Allowance for Loan Losses - Narratives (Details)	9 Months Ended
	Sep. 30, 2020USD ($)Loan	Sep. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)Loan	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Loans and Leases Receivable Disclosure
Percentage of market value of the collateral	80.00%
Private mortgage percentage of appraised value property	80.00%
Maximum percent of the loan in comparison with original appraised value of the property	80.00%
Allowance for loan losses	$ 20,372,000	$ 13,212,000	$ 19,662,000	$ 13,509,000	$ 13,890,000	$ 15,462,000
Increase in allowance for credit loss	6,900,000
Loans delinquent greater than 90 days	0			3,400,000
Income contractually due but not recognized on originated nonaccrual loans	600,000	500,000
Interest income recognized on loan	0	44,000
Non-accrual loans with no allowance for loans losses	9,300,000			9,600,000
Recorded investment in TDR	$ 9,200,000	1,300,000		$ 9,600,000
Number of nonaccrual loans identified as TDRs | Loan	3			3
TDR on non accrual status	$ 1,500,000			$ 1,600,000
The total recorded investment on 3 loans modified	$ 0	$ 2
Requests for deferral payments (loans) | Loan	12
Requests for payment relief	$ 32,700,000
Additional requests for deferral payments (loans) | Loan	10
Additional requests for payment relief	$ 31,300,000
Residential mortgage
Loans and Leases Receivable Disclosure
Private mortgage percentage of appraised value property	80.00%

Loans Receivable and Allowanc_5

Loans Receivable and Allowance for Loan Losses - Summary of allowance for loan losses by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Allowance for Loan and Lease Losses
Beginning balance	$ 19,662	$ 13,890	$ 13,509	$ 15,462
Charge-offs	(4)	(1,477)	(36)	(2,423)
Recoveries	2	26	3	46
(Credits) provisions	712	773	6,896	127
Ending balance	20,372	13,212	20,372	13,212
Residential Real Estate
Allowance for Loan and Lease Losses
Beginning balance	809	923	730	857
Charge-offs	0	(78)	0	(875)
Recoveries	0	0	0	0
(Credits) provisions	(95)	(54)	(16)	809
Ending balance	714	791	714	791
Commercial Real Estate
Allowance for Loan and Lease Losses
Beginning balance	14,409	9,910	10,551	11,562
Charge-offs	0	(594)	0	(594)
Recoveries	0	0	0	0
(Credits) provisions	491	778	4,349	(874)
Ending balance	14,900	10,094	14,900	10,094
Construction
Allowance for Loan and Lease Losses
Beginning balance	441	259	324	140
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
(Credits) provisions	(7)	2	110	121
Ending balance	434	261	434	261
Commercial Business
Allowance for Loan and Lease Losses
Beginning balance	4,003	2,797	1,903	2,902
Charge-offs	0	(748)	(7)	(884)
Recoveries	0	2	1	18
(Credits) provisions	321	14	2,427	29
Ending balance	4,324	2,065	4,324	2,065
Consumer
Allowance for Loan and Lease Losses
Beginning balance	0	1	1	1
Charge-offs	(4)	(57)	(29)	(70)
Recoveries	2	24	2	28
(Credits) provisions	2	33	26	42
Ending balance	$ 0	$ 1	$ 0	$ 1

Loans Receivable and Allowanc_6

Loans Receivable and Allowance for Loan Losses - Summary by portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Loans individually evaluated for impairment:
Loans individually evaluated for impairment, Portfolio	$ 21,681		$ 22,553
Loans individually evaluated for impairment, Allowance	1,523		506
Loans collectively evaluated for impairment:
Loans collectively evaluated for impairment, Portfolio	1,603,045		1,581,931
Loans collectively evaluated for impairment, Allowance	18,849		13,003
Total loans	1,624,726		1,604,484
Allowance for loan losses	20,372	$ 19,662	13,509	$ 13,212	$ 13,890	$ 15,462
Residential Real Estate
Loans individually evaluated for impairment:
Loans individually evaluated for impairment, Portfolio	4,016		4,020
Loans individually evaluated for impairment, Allowance	0		0
Loans collectively evaluated for impairment:
Loans collectively evaluated for impairment, Portfolio	116,515		143,089
Loans collectively evaluated for impairment, Allowance	714		730
Total loans	120,531		147,109
Allowance for loan losses	714	809	730	791	923	857
Commercial Real Estate
Loans individually evaluated for impairment:
Loans individually evaluated for impairment, Portfolio	13,565		14,203
Loans individually evaluated for impairment, Allowance	1,493		372
Loans collectively evaluated for impairment:
Loans collectively evaluated for impairment, Portfolio	1,092,297		1,114,411
Loans collectively evaluated for impairment, Allowance	13,407		10,179
Total loans	1,105,862		1,128,614
Allowance for loan losses	14,900	14,409	10,551	10,094	9,910	11,562
Construction
Loans collectively evaluated for impairment:
Loans collectively evaluated for impairment, Portfolio	96,508		98,583
Loans collectively evaluated for impairment, Allowance	434		324
Total loans	96,508		98,583
Allowance for loan losses	434	441	324	261	259	140
Commercial business
Loans individually evaluated for impairment:
Loans individually evaluated for impairment, Portfolio	4,100		4,330
Loans individually evaluated for impairment, Allowance	30		134
Loans collectively evaluated for impairment:
Loans collectively evaluated for impairment, Portfolio	297,647		225,698
Loans collectively evaluated for impairment, Allowance	4,294		1,769
Total loans	301,747		230,028
Allowance for loan losses	4,324	4,003	1,903	2,065	2,797	2,902
Consumer
Loans collectively evaluated for impairment:
Loans collectively evaluated for impairment, Portfolio	78		150
Loans collectively evaluated for impairment, Allowance	0		1
Total loans	78		150
Allowance for loan losses	$ 0	$ 0	$ 1	$ 1	$ 1	$ 1

Loans Receivable and Allowanc_7

Loans Receivable and Allowance for Loan Losses - Summary of credit risk ratings by loan segment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment
Total loans	$ 1,624,726	$ 1,604,484
Commercial Real Estate
Financing Receivable, Recorded Investment
Total loans	1,105,862	1,128,614
Construction
Financing Receivable, Recorded Investment
Total loans	96,508	98,583
Commercial business
Financing Receivable, Recorded Investment
Total loans	301,747	230,028
Residential Real Estate
Financing Receivable, Recorded Investment
Total loans	120,531	147,109
Consumer
Financing Receivable, Recorded Investment
Total loans	78	150
Commercial Credit Quality Indicators
Financing Receivable, Recorded Investment
Total loans	1,504,117	1,457,225
Commercial Credit Quality Indicators | Pass
Financing Receivable, Recorded Investment
Total loans	1,467,753	1,411,679
Commercial Credit Quality Indicators | Special Mention
Financing Receivable, Recorded Investment
Total loans	18,697	27,013
Commercial Credit Quality Indicators | Substandard
Financing Receivable, Recorded Investment
Total loans	14,225	15,057
Commercial Credit Quality Indicators | Doubtful
Financing Receivable, Recorded Investment
Total loans	3,442	3,476
Commercial Credit Quality Indicators | Loss
Financing Receivable, Recorded Investment
Total loans	0	0
Commercial Credit Quality Indicators | Commercial Real Estate
Financing Receivable, Recorded Investment
Total loans	1,105,862	1,128,614
Commercial Credit Quality Indicators | Commercial Real Estate | Pass
Financing Receivable, Recorded Investment
Total loans	1,085,654	1,104,164
Commercial Credit Quality Indicators | Commercial Real Estate | Special Mention
Financing Receivable, Recorded Investment
Total loans	6,642	10,247
Commercial Credit Quality Indicators | Commercial Real Estate | Substandard
Financing Receivable, Recorded Investment
Total loans	13,566	14,203
Commercial Credit Quality Indicators | Commercial Real Estate | Doubtful
Financing Receivable, Recorded Investment
Total loans	0	0
Commercial Credit Quality Indicators | Commercial Real Estate | Loss
Financing Receivable, Recorded Investment
Total loans	0	0
Commercial Credit Quality Indicators | Construction
Financing Receivable, Recorded Investment
Total loans	96,508	98,583
Commercial Credit Quality Indicators | Construction | Pass
Financing Receivable, Recorded Investment
Total loans	87,511	98,583
Commercial Credit Quality Indicators | Construction | Special Mention
Financing Receivable, Recorded Investment
Total loans	8,997	0
Commercial Credit Quality Indicators | Construction | Substandard
Financing Receivable, Recorded Investment
Total loans	0	0
Commercial Credit Quality Indicators | Construction | Doubtful
Financing Receivable, Recorded Investment
Total loans	0	0
Commercial Credit Quality Indicators | Construction | Loss
Financing Receivable, Recorded Investment
Total loans	0	0
Commercial Credit Quality Indicators | Commercial business
Financing Receivable, Recorded Investment
Total loans	301,747	230,028
Commercial Credit Quality Indicators | Commercial business | Pass
Financing Receivable, Recorded Investment
Total loans	294,588	208,932
Commercial Credit Quality Indicators | Commercial business | Special Mention
Financing Receivable, Recorded Investment
Total loans	3,058	16,766
Commercial Credit Quality Indicators | Commercial business | Substandard
Financing Receivable, Recorded Investment
Total loans	659	854
Commercial Credit Quality Indicators | Commercial business | Doubtful
Financing Receivable, Recorded Investment
Total loans	3,442	3,476
Commercial Credit Quality Indicators | Commercial business | Loss
Financing Receivable, Recorded Investment
Total loans	0	0
Residential and Consumer Credit Quality Indicators
Financing Receivable, Recorded Investment
Total loans	120,609	147,259
Residential and Consumer Credit Quality Indicators | Pass
Financing Receivable, Recorded Investment
Total loans	116,593	143,239
Residential and Consumer Credit Quality Indicators | Special Mention
Financing Receivable, Recorded Investment
Total loans	0	0
Residential and Consumer Credit Quality Indicators | Substandard
Financing Receivable, Recorded Investment
Total loans	3,836	3,832
Residential and Consumer Credit Quality Indicators | Doubtful
Financing Receivable, Recorded Investment
Total loans	180	188
Residential and Consumer Credit Quality Indicators | Loss
Financing Receivable, Recorded Investment
Total loans	0	0
Residential and Consumer Credit Quality Indicators | Residential Real Estate
Financing Receivable, Recorded Investment
Total loans	120,531	147,109
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Pass
Financing Receivable, Recorded Investment
Total loans	116,515	143,089
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Special Mention
Financing Receivable, Recorded Investment
Total loans	0	0
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Substandard
Financing Receivable, Recorded Investment
Total loans	3,836	3,832
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Doubtful
Financing Receivable, Recorded Investment
Total loans	180	188
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Loss
Financing Receivable, Recorded Investment
Total loans	0	0
Residential and Consumer Credit Quality Indicators | Consumer
Financing Receivable, Recorded Investment
Total loans	78	150
Residential and Consumer Credit Quality Indicators | Consumer | Pass
Financing Receivable, Recorded Investment
Total loans	78	150
Residential and Consumer Credit Quality Indicators | Consumer | Special Mention
Financing Receivable, Recorded Investment
Total loans	0	0
Residential and Consumer Credit Quality Indicators | Consumer | Substandard
Financing Receivable, Recorded Investment
Total loans	0	0
Residential and Consumer Credit Quality Indicators | Consumer | Doubtful
Financing Receivable, Recorded Investment
Total loans	0	0
Residential and Consumer Credit Quality Indicators | Consumer | Loss
Financing Receivable, Recorded Investment
Total loans	$ 0	$ 0

Loans Receivable and Allowanc_8

Loans Receivable and Allowance for Loan Losses - Summary of loan portfolio delinquencies by portfolio segment and amount (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 7,496	$ 12,326
Current	1,617,230	1,592,158
Total loans	1,624,726	1,604,484
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	289	1,712
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,230	943
90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	5,977	9,671
Residential Real Estate
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,092	1,224
Current	119,439	145,885
Total loans	120,531	147,109
Residential Real Estate | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	180	0
Residential Real Estate | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	912	943
Residential Real Estate | 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	281
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,726	6,290
Current	1,103,136	1,122,324
Total loans	1,105,862	1,128,614
Commercial Real Estate | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	109	355
Commercial Real Estate | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	84	0
Commercial Real Estate | 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,533	5,935
Construction
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	1,357
Current	96,508	97,226
Total loans	96,508	98,583
Construction | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	1,357
Construction | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	0
Construction | 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	0
Commercial business
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,678	3,455
Current	298,069	226,573
Total loans	301,747	230,028
Commercial business | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	0
Commercial business | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	234	0
Commercial business | 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,444	3,455
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	0
Current	78	150
Total loans	78	150
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	0
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	0	0
Consumer | 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 0	$ 0

Loans Receivable and Allowanc_9

Loans Receivable and Allowance for Loan Losses - Summary of nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due
Total nonaccrual loans	$ 10,168	$ 10,588
Small Business Administration
Financing Receivable, Recorded Investment, Past Due
Total nonaccrual loans	4,500
Residential Real Estate
Financing Receivable, Recorded Investment, Past Due
Total nonaccrual loans	1,596	1,560
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due
Total nonaccrual loans	4,812	5,222
Commercial business
Financing Receivable, Recorded Investment, Past Due
Total nonaccrual loans	$ 3,760	$ 3,806

Loans Receivable and Allowan_10

Loans Receivable and Allowance for Loan Losses - Summary of impaired loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Impaired loans without a valuation allowance:
Carrying Amount	$ 15,398	$ 16,506
Unpaid Principal Balance	17,169	18,129
Impaired loans with a valuation allowance:
Carrying Amount	6,283	6,047
Unpaid Principal Balance	6,298	6,064
Total impaired loans
Carrying Amount	21,681	22,553
Unpaid Principal Balance	23,467	24,193
Associated Allowance	1,523	506
Residential Real Estate
Impaired loans without a valuation allowance:
Carrying Amount	4,016	4,020
Unpaid Principal Balance	4,219	4,144
Commercial Real Estate
Impaired loans without a valuation allowance:
Carrying Amount	7,312	8,571
Unpaid Principal Balance	7,648	8,859
Impaired loans with a valuation allowance:
Carrying Amount	6,253	5,632
Unpaid Principal Balance	6,268	5,647
Total impaired loans
Associated Allowance	1,493	372
Commercial business
Impaired loans without a valuation allowance:
Carrying Amount	4,070	3,915
Unpaid Principal Balance	5,302	5,126
Impaired loans with a valuation allowance:
Carrying Amount	30	415
Unpaid Principal Balance	30	417
Total impaired loans
Associated Allowance	$ 30	$ 134

Loans Receivable and Allowan_11

Loans Receivable and Allowance for Loan Losses - Summary of average recorded investment balance of impaired loans and interest income recognized on impaired loans by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Impaired loans without a valuation allowance:
Average Carrying Amount	$ 15,534	$ 10,686	$ 15,769	$ 10,181
Interest Income Recognized	58	77	194	266
Impaired loans with a valuation allowance:
Average Carrying Amount	6,289	3,089	6,308	3,516
Interest Income Recognized	78	4	204	13
Total impaired loans
Average Carrying Amount	21,823	13,775	22,077	13,697
Interest Income Recognized	136	81	398	279
Residential Real Estate
Impaired loans without a valuation allowance:
Average Carrying Amount	4,035	4,076	4,083	4,112
Interest Income Recognized	16	31	70	92
Commercial Real Estate
Impaired loans without a valuation allowance:
Average Carrying Amount	7,376	5,357	7,513	4,701
Interest Income Recognized	37	39	109	155
Impaired loans with a valuation allowance:
Average Carrying Amount	6,259	766	6,278	778
Interest Income Recognized	78	3	204	5
Commercial business
Impaired loans without a valuation allowance:
Average Carrying Amount	4,123	1,253	4,173	1,368
Interest Income Recognized	5	7	15	19
Impaired loans with a valuation allowance:
Average Carrying Amount	30	2,323	30	2,738
Interest Income Recognized	$ 0	$ 1	$ 0	$ 8

Loans Receivable and Allowan_12

Loans Receivable and Allowance for Loan Losses - Summary of loans whose terms were modified as TDRs (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020Loan	Sep. 30, 2019Loan	Sep. 30, 2020USD ($)Loan	Sep. 30, 2019USD ($)Loan
Financing Receivable, Modifications
Financing Receivable, Modifications, Number of Contracts | Loan	0	0	0	3
Financing Receivable, Troubled Debt Restructuring, Premodification			$ 0	$ 499
Financing Receivable, Troubled Debt Restructuring, Postmodification			$ 0	$ 499
Residential Real Estate
Financing Receivable, Modifications
Financing Receivable, Modifications, Number of Contracts | Loan			0	1
Financing Receivable, Troubled Debt Restructuring, Premodification			$ 0	$ 34
Financing Receivable, Troubled Debt Restructuring, Postmodification			$ 0	$ 34
Commercial business
Financing Receivable, Modifications
Financing Receivable, Modifications, Number of Contracts | Loan			0	2
Financing Receivable, Troubled Debt Restructuring, Premodification			$ 0	$ 465
Financing Receivable, Troubled Debt Restructuring, Postmodification			$ 0	$ 465

Loans Receivable and Allowan_13

Loans Receivable and Allowance for Loan Losses - Summary of loans were modified as TDR (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Financing Receivable, Modifications
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 499
Maturity concession
Financing Receivable, Modifications
Financing Receivable, Troubled Debt Restructuring, Postmodification	0	125
Rate and payment concession
Financing Receivable, Modifications
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 374

Shareholders' Equity - Common s

Shareholders' Equity - Common stock (Details) - shares	Sep. 30, 2020	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Common stock, shares authorized (shares)	10,000,000	10,000,000
Common stock, shares issued (shares)	7,896,503	7,868,803
Common stock, shares outstanding (shares)	7,896,503	7,868,803

Shareholders' Equity - Issuer p

Shareholders' Equity - Issuer purchases of equity securities (Details) - $ / shares	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 19, 2018
Stockholders Equity Note
Authorized shares for repurchase (shares)				400,000
Weighted average share repurchased (in dollars per share)			$ 28.87
Common Stock
Stockholders Equity Note
Shares repurchased (shares)	58,499	34,168	34,168
Weighted average share repurchased (in dollars per share)	$ 17.69

Comprehensive Income - Summary

Comprehensive Income - Summary of changes in accumulated other comprehensive income (loss) by component, net of tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accumulated Other Comprehensive Income Loss
Beginning balance	$ 170,360	$ 176,940	$ 182,397	$ 174,196
Other comprehensive (loss) income before reclassifications, net of tax	1,543	(4,276)	(10,674)	(10,104)
Amounts reclassified from accumulated other comprehensive income, net of tax				(60)
Total other comprehensive income (loss), net of tax	1,543	(4,276)	(10,674)	(10,164)
Ending balance	174,267	176,012	174,267	176,012
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss
Beginning balance	(19,733)	(6,925)	(7,516)	(1,037)
Total other comprehensive income (loss), net of tax	1,543	(4,276)	(10,674)	(10,164)
Ending balance	(18,190)	(11,201)	(18,190)	(11,201)
Net Unrealized Gain (Loss) on Available for Sale Securities
Accumulated Other Comprehensive Income Loss
Beginning balance	3,076	670	928	(1,379)
Other comprehensive (loss) income before reclassifications, net of tax	(76)	279	2,072	2,388
Amounts reclassified from accumulated other comprehensive income, net of tax				(60)
Total other comprehensive income (loss), net of tax	(76)	279	2,072	2,328
Ending balance	3,000	949	3,000	949
Net Unrealized Gain (Loss) on Interest Rate Swaps
Accumulated Other Comprehensive Income Loss
Beginning balance	(22,809)	(7,595)	(8,444)	342
Other comprehensive (loss) income before reclassifications, net of tax	1,619	(4,555)	(12,746)	(12,492)
Amounts reclassified from accumulated other comprehensive income, net of tax				0
Total other comprehensive income (loss), net of tax	1,619	(4,555)	(12,746)	(12,492)
Ending balance	$ (21,190)	$ (12,150)	$ (21,190)	$ (12,150)

Comprehensive Income - Summar_2

Comprehensive Income - Summary of reclassified from accumulated other comprehensive income or loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Available for sale securities:
Tax expense	$ (790)	$ (1,030)	$ (1,220)	$ (3,802)
Net income	2,991	4,088	5,568	14,744
Net Unrealized Gain (Loss) on Available for Sale Securities | Amount Reclassified from Accumulated Other Comprehensive Income
Available for sale securities:
Unrealized gains on investments	0	0	0	76
Tax expense	0	0	0	(16)
Net income	$ 0	$ 0	$ 0	$ 60

Earnings per share ("EPS") - Re

Earnings per share ("EPS") - Reconciliation of earnings available to common stockholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income	$ 2,991	$ 4,088	$ 5,568	$ 14,744
Dividends to participating securities	(19)	(12)	(52)	(35)
Undistributed earnings allocated to participating securities	(32)	(35)	(34)	(135)
Net income for earnings per share calculation	$ 2,940	$ 4,041	$ 5,482	$ 14,574
Weighted average shares outstanding, basic (in shares)	7,721,247	7,750,490	7,728,798	7,761,441
Effect of dilutive equity-based awards (in shares)	0	16,000	20,000	28,000
Weighted average shares outstanding, diluted (in shares)	7,721,459	7,766,485	7,749,199	7,788,839
Net earnings per common share:
Basic earnings per common share (in dollars per share)	$ 0.38	$ 0.52	$ 0.71	$ 1.88
Diluted earnings per common share (in dollars per share)	$ 0.38	$ 0.52	$ 0.71	$ 1.87
Awards excluded from the calculation of diluted EPS:
Stock options (in shares)	15,000	0	0	0

Regulatory Matters - Narratives

Regulatory Matters - Narratives (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations
Tier 1 capital to risk-weighted assets requirement (percent)	0.1236	0.1253
Total capital to risk-weighted assets requirement (percent)	0.0800	0.0800
Percentage of higher risk weight (percent)	150.00%
Risk weight of marketable equity securities (percent)	300.00%
Federal Reserve Bank
Compliance with Regulatory Capital Requirements under Banking Regulations
Minimum reserve balance		$ 14.1
Minimum
Compliance with Regulatory Capital Requirements under Banking Regulations
Common equity Tier 1 capital requirement of risk-weighted assets (percent)	4.50%
Leverage ratio (percent)	4.00%
Tier 1 capital to risk-weighted assets requirement (percent)	0.040
Percentage of capital ratio	1.00%
Regulatory risk based capital conservation buffer (percent)	2.50%
Maximum
Compliance with Regulatory Capital Requirements under Banking Regulations
Tier 1 capital to risk-weighted assets requirement (percent)	0.060
Percentage of capital ratio	2.00%

Regulatory Matters - Capital am

Regulatory Matters - Capital amounts and ratios for Bank (Details) $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Actual Capital, Amount
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount	$ 207,920	$ 205,856
Total Capital to Risk-Weighted Assets, Actual Capital, Amount	228,292	219,365
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount	207,920	205,856
Tier I Capital to Average Assets, Actual Capital, Amount	$ 207,920	$ 205,856
Actual Capital, Ratio
Common Equity Tier 1 capital requirement	0.1236	0.1253
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio	0.1357	0.1335
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio	0.1236	0.1253
Tier I Capital to Average Assets, Actual Capital, Ratio	0.0958	0.1099
Minimum Regulatory Capital Required for Capital Adequacy Plus Capital Conservation Buffer, Amount
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount	$ 117,747	$ 115,040
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount	176,621	172,560
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount	142,979	139,691
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount	$ 86,843	$ 74,951
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio	7.00%	7.00%
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio	0.1050	0.1050
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio	0.0850	0.0850
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio	0.0400	0.0400
Minimum Regulatory Capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 109,337	$ 106,823
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	168,211	164,343
Tier I Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	134,568	131,474
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 108,553	$ 93,689
Minimum Regulatory Capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.1000	0.1000
Tier I Capital to Risk-Weighted Assets To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0800	0.0800
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0500	0.0500
Bankwell Financial Group Inc.
Actual Capital, Amount
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount	$ 189,742	$ 187,155
Total Capital to Risk-Weighted Assets, Actual Capital, Amount	230,259	225,871
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount	189,742	187,155
Tier I Capital to Average Assets, Actual Capital, Amount	$ 189,742	$ 187,155
Actual Capital, Ratio
Common Equity Tier 1 capital requirement	0.1128	0.1137
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio	0.1369	0.1372
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio	0.1128	0.1137
Tier I Capital to Average Assets, Actual Capital, Ratio	0.0873	0.0997
Minimum Regulatory Capital Required for Capital Adequacy Plus Capital Conservation Buffer, Amount
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount	$ 117,747	$ 115,253
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount	176,621	172,880
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount	142,979	139,950
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount	$ 86,909	$ 75,067
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio	7.00%	7.00%
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio	0.1050	0.1050
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio	0.0850	0.0850
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio	0.0400	0.0400

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Deposits [Abstract]
Noninterest bearing demand deposit accounts	$ 234,848	$ 191,518
Interest bearing accounts:
NOW	90,776	70,020
Money market	561,101	419,495
Savings	164,590	183,729
Time certificates of deposit	716,213	627,141
Total interest bearing accounts	1,532,680	1,300,385
Total deposits	$ 1,767,528	$ 1,491,903

Deposits - Time Deposits Maturi

Deposits - Time Deposits Maturity Schedule (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Time Deposits, Fiscal Year Maturity
Remainder of the year	$ 175,750
Year one	335,107	$ 430,361
Year two	46,894	167,933
Year three	128,269	28,515
Year four	30,160	239
Year five	33	93
After year five		0
Time certificates of deposit	$ 716,213	$ 627,141

Deposits - Narratives (Details)

Deposits - Narratives (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Deposits [Abstract]
Certficate of deposits above $250,000	$ 419.3	$ 307.1
Brokerage certificate of deposits	296	179.8
Brokerage certificate of deposits national listing service	23.8	21.3
Brokerage money market accounts	$ 28.7	$ 39.9

Deposits - Interest Expense on

Deposits - Interest Expense on Deposits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest Expense on Deposit Liabilities, Disclosures
NOW	$ 40	$ 26	$ 99	$ 101
Money market	859	1,739	3,213	5,567
Savings	237	740	1,204	2,252
Time certificates of deposits	2,968	3,826	10,107	10,830
Total interest expense on deposits	$ 4,104	$ 6,331	$ 14,623	$ 18,750

Stock-Based Compensation - Narr

Stock-Based Compensation - Narratives (Details)	9 Months Ended
	Sep. 30, 2020USD ($)Plan$ / sharesshares	Sep. 30, 2019USD ($)	Dec. 31, 2019shares
Share-based Compensation Arrangement by Share-based Payment Award
Unvested shares outstanding (shares)	170,083		110,975
Share based payment award shares issued (shares)	86,199
Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Total intrinsic value of share options exercised | $	$ 27,000
Exercise price of exercisable shares (shares)	15,180
Exercise price lower range limit (in dollars per share) | $ / shares	$ 15
Exercise price upper range limit (in dollars per share) | $ / shares	$ 17.86
Exercisable shares (term)	2 years
Share price ( in dollars per share) | $ / shares	$ 14.15
Outstanding shares, intrinsic value | $	$ 0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Aggregate intrinsic value of awards other than options | $	600,000
Share based compensation expenses | $	1,300,000	$ 800,000
Unrecognized stock compensation expense for restricted stock | $	$ 3,400,000
Weighted average period for recognition of compensation expense for restricted stock	1 year 10 months 24 days
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Share based payment award, vesting period	1 year
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Share based payment award, vesting period	5 years
Performance based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award
Unvested shares outstanding (shares)			21,750
Share based payment award shares issued (shares)	16,000
BNC Financial Group Inc Stock Option 2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of equity award plans | Plan	3
Number of common stock reserved for issuance (shares)	633,025
BNC Financial Group Inc Stock Option 2012 Plan | Performance based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award
Unvested shares outstanding (shares)	37,750		21,750
BNC Financial Group Inc Stock Option 2012 Plan | Performance based restricted stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Share based payment award, vesting period	3 years
Percentage of grant as share quantity for which performance metric is met	0.00%
BNC Financial Group Inc Stock Option 2012 Plan | Performance based restricted stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Share based payment award, vesting period	4 years
Percentage of grant as share quantity for which performance metric is met	200.00%

Stock-Based Compensation - Outs

Stock-Based Compensation - Outstanding share options (Details) - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Number of Shares
Exercised (shares)	(1,500)	(2,350)
Employee Stock Options
Number of Shares
Options outstanding at beginning of period (shares)	16,680
Exercised (shares)	(1,500)
Options outstanding at end of period (shares)	15,180
Options exercisable at end of period (shares)	15,180
Weighted Average Exercise Price
Options outstanding at beginning of period (usd per share)	$ 16.30
Exercised (usd per share)	11
Options outstanding at end of period (usd per share)	16.82
Options exercisable at end of period (usd per share)	$ 16.82

Stock-Based Compensation - Acti

Stock-Based Compensation - Activity for restricted stock (Details)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Number of Shares
Unvested at beginning of period (shares) | shares	110,975
Granted (shares) | shares	86,199
Vested (shares) | shares	(25,591)
Forfeited (shares) | shares	(1,500)
Unvested at end of period (shares) | shares	170,083
Weighted Average Grant Date Fair Value
Unvested at beginning of period (in dollars per share) | $ / shares	$ 30.88
Granted (in dollars per share) | $ / shares	24.80
Vested (in dollars per share) | $ / shares	30.82
Forfeited (in dollars per share) | $ / shares	31.72
Unvested at end of period (in dollars per share) | $ / shares	$ 27.80

Derivative Instruments - Narrat

Derivative Instruments - Narratives (Details)	9 Months Ended
	Sep. 30, 2020USD ($)instrument	Dec. 31, 2019USD ($)
Derivatives
Notional amount of interest rate swap	$ 302,000,000	$ 265,000,000
Rolling period of federal home loan bank advances converted to fixed rates	90 days
Accrued interest included in derivative fair value	$ 38,400	97,100
Accrued interest included in derivative liability fair value	640,300	75,500
Collateral posted related to interest rate swaps	33,700,000	13,500,000
Total cash collateral posted	0	0
Interest expense
Derivatives
Amount of cash flow hedge gain expected to be reclassified to interest expense in the next 12 months	3,700,000
Derivatives not designated as hedging instruments
Derivatives
Notional amount of interest rate swap	$ 77,000,000	40,000,000
Interest rate swap
Derivatives
Number of derivatives instruments held (instruments) | instrument	9
Notional amount of interest rate swap	$ 25,000,000
Accrued interest excluded from derivative fair value	600,000	21,600
Accrued interest included in derivative fair value	$ 27,700,000	$ 10,700,000
Interest rate swap | Derivatives not designated as hedging instruments
Derivatives
Number of derivatives instruments held (instruments) | instrument	4

Derivative Instruments - Inform

Derivative Instruments - Information about derivative instruments (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Derivatives
Notional Amount	$ 302,000	$ 265,000
Fair Value Asset (Liability), Net	(27,091)	(10,691)
Derivatives designated as hedging instruments: | Cash Flow Hedging
Derivatives
Notional Amount	225,000	225,000
Fair Value Asset (Liability), Net	(27,091)	(10,691)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 1.83%
Derivatives
Notional Amount		$ 25,000
Original Maturity		5 years
Paid (Interest Rate)		1.83%
Derivative asset fair value		$ 0
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 1.48%
Derivatives
Notional Amount		$ 25,000
Original Maturity		5 years
Paid (Interest Rate)		1.48%
Derivative asset fair value		$ 51
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 1.22%
Derivatives
Notional Amount	$ 25,000	$ 25,000
Original Maturity	5 years	5 years
Paid (Interest Rate)	1.22%	1.22%
Derivative asset fair value		$ 174
Derivative liability fair value	$ (190)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 2.04%
Derivatives
Notional Amount	$ 25,000	$ 25,000
Original Maturity	7 years	7 years
Paid (Interest Rate)	2.04%	2.04%
Derivative liability fair value	$ (1,742)	$ (396)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 2.04% (2)
Derivatives
Notional Amount	$ 25,000	$ 25,000
Original Maturity	7 years	7 years
Paid (Interest Rate)	2.04%	2.04%
Derivative liability fair value	$ (1,747)	$ (402)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 3.01%
Derivatives
Notional Amount	$ 25,000	$ 25,000
Original Maturity	15 years	15 years
Paid (Interest Rate)	3.01%	3.01%
Derivative liability fair value	$ (7,026)	$ (3,328)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 1.28%
Derivatives
Notional Amount	$ 25,000	$ 25,000
Original Maturity	3 years	3 years
Paid (Interest Rate)	1.28%	1.28%
Derivative asset fair value		$ 279
Derivative liability fair value	$ (595)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 3.03%
Derivatives
Notional Amount	$ 25,000	$ 25,000
Original Maturity	15 years	15 years
Paid (Interest Rate)	3.03%	3.03%
Derivative liability fair value	$ (7,472)	$ (3,557)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap .55%
Derivatives
Notional Amount	$ 25,000
Original Maturity	5 years
Paid (Interest Rate)	0.55%
Derivative liability fair value	$ (279)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap .54%
Derivatives
Notional Amount	$ 25,000
Original Maturity	5 years
Paid (Interest Rate)	0.54%
Derivative liability fair value	$ (267)
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 3.05%
Derivatives
Notional Amount	$ 25,000	$ 25,000
Original Maturity	15 years	15 years
Paid (Interest Rate)	3.05%	3.05%
Derivative liability fair value	$ (7,773)	$ (3,512)
Derivatives not designated as hedging instruments
Derivatives
Notional Amount	77,000	40,000
Fair Value Asset (Liability), Net	0	0
Derivatives not designated as hedging instruments | Interest rate swap 5.00%
Derivatives
Notional Amount	$ 20,000	$ 20,000
Original Maturity	20 years	20 years
Paid (Interest Rate)	5.00%	5.00%
Derivative liability fair value	$ (4,528)	$ (1,762)
Derivatives not designated as hedging instruments | Interest rate swap 5.00% (2)
Derivatives
Notional Amount	$ 20,000	$ 20,000
Original Maturity	20 years	20 years
Paid (Interest Rate)	5.00%	5.00%
Derivative asset fair value	$ 4,528	$ 1,762
Derivatives not designated as hedging instruments | Interest rate swap 3.15%
Derivatives
Notional Amount	$ 18,500
Original Maturity	10 years
Paid (Interest Rate)	3.15%
Derivative liability fair value	$ (946)
Derivatives not designated as hedging instruments | Interest rate swap 3.15% (2)
Derivatives
Notional Amount	$ 18,500
Original Maturity	10 years
Paid (Interest Rate)	3.15%
Derivative asset fair value	$ 946

Derivative Instruments - Forwar

Derivative Instruments - Forward starting interest rate swap transactions (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Derivatives
Notional Amount	$ 302,000	$ 265,000
Interest rate swap
Derivatives
Notional Amount	25,000
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap
Derivatives
Notional Amount	225,000
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | July 1, 2016
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	5 years
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | August 25, 2017
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	7 years
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | August 25, 2017
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	7 years
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | January 2, 2019
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	15 years
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | December 27, 2019
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	3 years
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | January 2, 2020
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	15 years
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | April 15, 2020
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	5 years
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | April 29, 2020
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	5 years
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | August 26, 2020
Derivatives
Notional Amount	$ 25,000
Duration of Borrowing	15 years

Derivative Instruments - Change

Derivative Instruments - Changes in consolidated statements of comprehensive income related to interest rate derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest rate swap on FHLB advances and brokered deposits:
Unrealized gains (losses) recognized in accumulated other comprehensive income (loss)	$ 2,070	$ (5,766)	$ (16,400)	$ (15,811)
Income tax (expense) benefit on items recognized in accumulated other comprehensive income (loss)	(451)	1,211	3,654	3,319
Other comprehensive income (loss)	1,619	(4,555)	(12,746)	(12,492)
Amount recognized in interest expense on hedged FHLB advances and brokered deposits	$ 1,010	$ 742	$ 2,844	$ 2,202

Derivative Instruments - Summar

Derivative Instruments - Summary of gross net information about derivatives (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Offsetting Derivative Assets
Gross Amounts of Recognized Assets	$ 5,512,000	$ 2,363,000
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets presented in the Statement of Financial Position	5,512,000	2,363,000
Financial Instruments	0	591,000
Cash Collateral Received	0	0
Net Amount	5,512,000	1,772,000
Offsetting Derivative Liabilities
Gross Amounts of Recognized Liabilities	33,205,000	13,032,000
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities presented in the Statement of Financial Position	33,205,000	13,032,000
Financial Instruments	0	591,000
Cash collateral posted	33,205,000	12,441,000
Net Amount	$ 0	$ 0

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Carrying values and fair values of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial Assets:
Federal funds sold	$ 6,380	$ 0
Marketable equity securities	2,203	2,118
Available for sale securities	90,563	82,439
Held to maturity securities	16,138	16,308
Derivative asset	5,512	2,363
Financial Liabilities:
Derivative liability	33,205	13,032
Level 1
Financial Assets:
Cash and due from banks	333,103	78,051
Federal funds sold	6,380
Marketable equity securities	2,203	2,118
Available for sale securities	10,189	10,031
Held to maturity securities	0	0
Loans receivable, net	0	0
Accrued interest receivable	0	0
FHLB stock	0	0
Servicing asset, net of valuation allowance	0	0
Derivative asset	0	0
Financial Liabilities:
Noninterest bearing deposits	0	0
NOW and money market	0	0
Savings	0	0
Time deposits	0	0
Accrued interest payable	0	0
Advances from the FHLB	0	0
Subordinated debentures	0	0
Servicing liability	0	0
Derivative liability	0	0
Level 2
Financial Assets:
Cash and due from banks	0	0
Federal funds sold	0
Marketable equity securities	0	0
Available for sale securities	80,374	72,408
Held to maturity securities	75	85
Loans receivable, net	0	0
Accrued interest receivable	7,294	5,959
FHLB stock	7,860	7,475
Servicing asset, net of valuation allowance	0	0
Derivative asset	5,474	2,266
Financial Liabilities:
Noninterest bearing deposits	234,848	191,518
NOW and money market	651,877	489,515
Savings	164,590	183,729
Time deposits	0	0
Accrued interest payable	1,885	2,142
Advances from the FHLB	0	0
Subordinated debentures	0	0
Servicing liability	0	0
Derivative liability	32,565	12,957
Level 3
Financial Assets:
Cash and due from banks	0	0
Federal funds sold	0
Marketable equity securities	0	0
Available for sale securities	0	0
Held to maturity securities	19,741	18,222
Loans receivable, net	1,611,664	1,589,732
Accrued interest receivable	0	0
FHLB stock	0	0
Servicing asset, net of valuation allowance	647	978
Derivative asset	0	0
Financial Liabilities:
Noninterest bearing deposits	0	0
NOW and money market	0	0
Savings	0	0
Time deposits	722,506	632,436
Accrued interest payable	0	0
Advances from the FHLB	174,998	150,006
Subordinated debentures	25,231	25,530
Servicing liability	29	63
Derivative liability	0	0
Carrying Value
Financial Assets:
Cash and due from banks	333,103	78,051
Federal funds sold	6,380
Marketable equity securities	2,203	2,118
Available for sale securities	90,563	82,439
Held to maturity securities	16,138	16,308
Loans receivable, net	1,600,776	1,588,840
Accrued interest receivable	7,294	5,959
FHLB stock	7,860	7,475
Servicing asset, net of valuation allowance	647	978
Derivative asset	5,474	2,266
Financial Liabilities:
Noninterest bearing deposits	234,848	191,518
NOW and money market	651,877	489,515
Savings	164,590	183,729
Time deposits	716,213	627,141
Accrued interest payable	1,885	2,142
Advances from the FHLB	175,000	150,000
Subordinated debentures	25,245	25,207
Servicing liability	29	63
Derivative liability	32,565	12,957
Fair Value
Financial Assets:
Cash and due from banks	333,103	78,051
Federal funds sold	6,380
Marketable equity securities	2,203	2,118
Available for sale securities	90,563	82,439
Held to maturity securities	19,816	18,307
Loans receivable, net	1,611,664	1,589,732
Accrued interest receivable	7,294	5,959
FHLB stock	7,860	7,475
Servicing asset, net of valuation allowance	647	978
Derivative asset	5,474	2,266
Financial Liabilities:
Noninterest bearing deposits	234,848	191,518
NOW and money market	651,877	489,515
Savings	164,590	183,729
Time deposits	722,506	632,436
Accrued interest payable	1,885	2,142
Advances from the FHLB	174,998	150,006
Subordinated debentures	25,231	25,530
Servicing liability	29	63
Derivative liability	$ 32,565	$ 12,957

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Narratives (Details) - Discount rate	Sep. 30, 2020	Dec. 31, 2019
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities, measurement input	0.031	0.038
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities, measurement input	0.035	0.041

Fair Value Measurements - Finan

Fair Value Measurements - Financial instruments carried at fair value on recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Marketable equity securities	$ 2,203	$ 2,118
Available for sale securities	90,563	82,439
Derivative asset	5,512	2,363
Derivative liability	33,205	13,032
U.S. Government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	81,905
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Marketable equity securities	2,203	2,118
Available for sale securities	10,189	10,031
Derivative asset	0	0
Derivative liability	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Marketable equity securities	0	0
Available for sale securities	80,374	72,408
Derivative asset	5,474	2,266
Derivative liability	32,565	12,957
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Marketable equity securities	0	0
Available for sale securities	0	0
Derivative asset	0	0
Derivative liability	0	0
Fair Value Measurements Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Marketable equity securities	2,203	2,118
Derivative asset	0	0
Derivative liability	0	0
Fair Value Measurements Recurring | Level 1 | U.S. Government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	10,189	10,031
Fair Value Measurements Recurring | Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	0
Fair Value Measurements Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Marketable equity securities	0	0
Derivative asset	5,474	2,266
Derivative liability	32,565	12,957
Fair Value Measurements Recurring | Level 2 | U.S. Government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	71,716	72,408
Fair Value Measurements Recurring | Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	8,658
Fair Value Measurements Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Marketable equity securities	0	0
Derivative asset	0	0
Derivative liability	0	0
Fair Value Measurements Recurring | Level 3 | U.S. Government and agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	0	$ 0
Fair Value Measurements Recurring | Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available for sale securities	$ 0

Fair Value Measurements - Fin_2

Fair Value Measurements - Financial instruments carried at fair value on nonrecurring basis (Details) - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 0	$ 0
Servicing asset, net	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	0	0
Servicing asset, net	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	20,158	22,047
Servicing asset, net	$ 618	$ 915

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on nonrecurring basis (Details) $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Servicing liability	$ 29	$ 63
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Servicing liability	29	63
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Servicing liability	29	63
Fair Value Measurements Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	20,158	22,047
Servicing asset, net	618	915
Fair Value Measurements Nonrecurring | Level 3 | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	20,158	22,047
Servicing asset, net	$ 618	$ 915
Fair Value Measurements Nonrecurring | Level 3 | Discount rate | Fair Value | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Servicing liability, measurement input (percent)	0.001	0.016
Fair Value Measurements Nonrecurring | Level 3 | Discount rate | Fair Value | Minimum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Servicing asset, measurement input (percent)		0.1000
Fair Value Measurements Nonrecurring | Level 3 | Discount rate | Fair Value | Maximum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Servicing asset, measurement input (percent)	0.1000	0.1100
Fair Value Measurements Nonrecurring | Level 3 | Prepayment rate | Fair Value | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Servicing asset, measurement input (percent)	0.0300	0.0300
Fair Value Measurements Nonrecurring | Level 3 | Prepayment rate | Fair Value | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Servicing asset, measurement input (percent)	0.1600	0.1900
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Fair Value | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 10,595	$ 12,300
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Fair Value | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 9,563	$ 9,747
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount to appraised value | Minimum | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loan, measurement input (percent)	0.0800	0.0800
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount to appraised value | Maximum | Appraisals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loan, measurement input (percent)	0.2700	0.2800
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount rate | Minimum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loan, measurement input (percent)	0.0300	0.0360
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount rate | Maximum | Discounted cash flows
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loan, measurement input (percent)	0.0700	0.0700

Subordinated debentures - Narra

Subordinated debentures - Narratives (Detail) - USD ($)	Aug. 19, 2015	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument
Interest expense debt		$ 400,000	$ 400,000	$ 1,100,000	$ 1,100,000
Fixed rated subordinated notes
Debt Instrument
Aggregate principal amount	$ 25,500,000
Notes non-callable term (in years)	5 years
Quarterly pay fixed interest rate of notes	5.75%

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Oct. 28, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Subsequent Event
Dividends per common share (in dollars per share)		$ 0.14	$ 0.13	$ 0.42	$ 0.39
Subsequent Event
Subsequent Event
Dividends per common share (in dollars per share)	$ 0.14