Esquire Financial (ESQ) 10-Q 8 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	Esquire Financial Holdings, Inc.
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,541,670
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001531031
Amendment Flag	false
Entity Ex Transition Period	true

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 61,676	$ 30,562
Securities available-for-sale, at fair value	139,165	145,698
Securities, restricted, at cost	2,665	2,583
Loans	533,949	468,101
Less: allowance for loan losses	(6,741)	(5,629)
Loans, net	527,208	462,472
Premises and equipment, net	2,872	2,694
Accrued interest receivable	3,159	3,855
Other assets	22,993	16,035
Total assets	759,738	663,899
Deposits:
Demand	225,740	212,721
Savings, NOW and money market	398,812	335,283
Time	19,959	20,417
Total deposits	644,511	568,421
Secured borrowings	87	89
Accrued expenses and other liabilities	8,237	2,615
Total liabilities	652,835	571,125
Commitments and Contingencies
Stockholders' equity:
Preferred stock, par value $0.01; authorized 2,000,000 shares; no shares issued and outstanding at June 30, 2019 and December 31, 2018
Common stock, par value $0.01; authorized 15,000,000 shares; issued and outstanding 7,536,723 shares at June 30, 2019 and 7,532,723 shares at December 31, 2018	75	75
Additional paid-in capital	89,398	88,539
Retained earnings (deficit)	17,044	6,774
Accumulated other comprehensive loss	386	(2,614)
Total stockholders' equity	106,903	92,774
Total liabilities and stockholders' equity	$ 759,738	$ 663,899

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	7,541,670	7,532,723
Common stock, shares outstanding	7,541,670	7,532,723

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income:
Loans	$ 8,312	$ 6,432	$ 23,524	$ 17,378
Securities	950	1,035	3,073	2,906
Interest earning deposits and other	236	153	706	470
Total interest income	9,498	7,620	27,303	20,754
Interest expense:
Savings, NOW and money market deposits	625	291	1,665	580
Time deposits	125	41	375	140
Borrowings	1	12	4	21
Total interest expense	751	344	2,044	741
Net interest income	8,747	7,276	25,259	20,013
Provision for loan losses	425	450	1,250	975
Net interest income after provision for loan losses	8,322	6,826	24,009	19,038
Non-interest income:
Total non-interest income	3,475	1,800	8,647	5,854
Non-interest expense:
Employee compensation and benefits	3,817	4,161	10,841	10,230
Occupancy and equipment, net	517	429	1,399	1,287
Professional and consulting services	816	547	2,146	1,859
FDIC and regulatory assessments	40	79	211	235
Advertising and marketing	230	146	592	442
Travel and business relations	136	116	372	384
Data processing	638	485	1,857	1,415
Other operating expenses	410	367	1,175	1,039
Total non-interest expense	6,604	6,330	18,593	16,891
Net income before income taxes	5,193	2,296	14,063	8,001
Income tax expense	1,376	614	3,793	2,140
Net income	$ 3,817	$ 1,682	$ 10,270	$ 5,861
Earnings per share
Basic (in dollars per share)	$ 0.52	$ 0.23	$ 1.39	$ 0.80
Diluted (in dollars per share)	$ 0.49	$ 0.22	$ 1.32	$ 0.76
Merchant processing income
Non-interest income:
Noninterest income	$ 3,284	$ 1,300	$ 7,994	$ 3,532
Customer related fees and service charges
Non-interest income:
Noninterest income	$ 191	$ 500	$ 653	$ 2,322

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Loss
Net income	$ 3,817	$ 1,682	$ 10,270	$ 5,861
Other comprehensive income (loss):
Unrealized gains (losses) arising during the period on securities available for sale	650	(776)	4,138	(3,347)
Tax effect	(184)	212	(1,138)	916
Total other comprehensive income (loss)	466	(564)	3,000	(2,431)
Total comprehensive income	$ 4,283	$ 1,118	$ 13,270	$ 3,430

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Accumulated Other Comprehensive Gain (Loss)	Retained Earnings	Additional Paid-in Capital	Common shares	Total
Balance at Dec. 31, 2017	$ (1,390)	$ (1,960)	$ 86,660	$ 73	$ 83,383
Balance (in shares) at Dec. 31, 2017				7,326,536
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		5,861			5,861
Other comprehensive income (loss)	(2,431)				(2,431)
Exercise of stock options, net of repurchases			377	$ 1	378
Exercise of stock options, net of repurchases (in shares)				42,687
Restricted stock grants (in shares)				76,500
Stock compensation expense			1,304		1,304
Balance at Sep. 30, 2018	(3,821)	3,901	88,341	$ 74	88,495
Balance (in shares) at Sep. 30, 2018				7,445,723
Balance at Jun. 30, 2018	(3,257)	2,219	87,460	$ 74	86,496
Balance (in shares) at Jun. 30, 2018				7,445,723
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1,682			1,682
Other comprehensive income (loss)	(564)				(564)
Stock compensation expense			881		881
Balance at Sep. 30, 2018	(3,821)	3,901	88,341	$ 74	88,495
Balance (in shares) at Sep. 30, 2018				7,445,723
Balance at Dec. 31, 2018	(2,614)	6,774	88,539	$ 75	92,774
Balance (in shares) at Dec. 31, 2018				7,532,723
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		10,270			10,270
Other comprehensive income (loss)	3,000				3,000
Exercise of stock options, net of repurchases			50		50
Exercise of stock options, net of repurchases (in shares)				8,947
Stock compensation expense			809		809
Balance at Sep. 30, 2019	386	17,044	89,398	$ 75	106,903
Balance (in shares) at Sep. 30, 2019				7,541,670
Balance at Jun. 30, 2019	(80)	13,227	89,129	$ 75	102,351
Balance (in shares) at Jun. 30, 2019				7,536,723
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		3,817			3,817
Other comprehensive income (loss)	466				466
Exercise of stock options, net of repurchases (in shares)				4,947
Stock compensation expense			269		269
Balance at Sep. 30, 2019	$ 386	$ 17,044	$ 89,398	$ 75	$ 106,903
Balance (in shares) at Sep. 30, 2019				7,541,670

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 3,817	$ 1,682	$ 10,270	$ 5,861
Adjustments to reconcile net income to net cash used in operating activities:
Provision for loan losses	425	450	1,250	975	$ 1,250
Depreciation			368	304
Stock compensation expense			809	1,304
Net amortization:
Securities			359	339
Loans			284	296
Right of use asset			272
Changes in other assets and liabilities:
Accrued interest receivable			696	(1,572)
Other assets			(5,311)	(3,391)
Decrease in operating lease liability			(213)
Accrued expenses and other liabilities			2,778	3,243
Net cash provided by operating activities			11,562	7,359
Cash flows from investing activities:
Net change in loans			(66,270)	(89,211)
Purchases of securities available for sale			(9,918)	(40,844)
Principal repayments on securities available for sale			20,230	18,394
Purchases of securities, restricted			(82)	(220)
Purchase of equity investment without readily determinable fair value				(2,410)
Purchases of premises and equipment			(546)	(374)
Net cash used in investing activities			(56,586)	(114,665)
Cash flows from financing activities:
Net increase in deposits			76,090	103,697
Decrease in secured borrowings			(2)	(6)
Exercise of stock options			50	378
Net cash provided by financing activities			76,138	104,069
Increase (decrease) in cash and cash equivalents			31,114	(3,237)
Cash and cash equivalents at beginning of period			30,562	43,077	43,077
Cash and cash equivalents at end of period	$ 61,676	$ 39,840	61,676	39,840	$ 30,562
Cash paid during the period for:
Interest			2,048	730
Income taxes			3,016	$ 1,955
Noncash transactions:
Recognition of right of use asset on change of accounting principle			$ 3,640

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies	NOTE 1 — Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The Interim Consolidated Financial Statements include the accounts of Esquire Financial Holdings, Inc. and its wholly owned subsidiary, Esquire Bank, N.A, are collectively referred to as “the Company.” All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited Interim Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial information. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are recurring in nature. These financial statements and the accompanying notes should be read in conjunction with the Company’s audited financial statements for the years ended December 31, 2018 and 2017. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other period. Certain balances in the prior year financial statements were reclassified to conform to current presentation. The reclassifications had no effect on prior year net income or stockholders’ equity. Subsequent Events The Company has evaluated subsequent events for recognition and disclosure through the date of issuance. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the Consolidated Financial Statements. New Accounting Pronouncements On February 25, 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The new standard was adopted by the Company on January 1, 2019 utilizing the modified retrospective transition approach where it was applied to all leases existing at the date of initial application. Upon adoption, we recognized a ROU asset, presented within other assets on the Consolidated Statement of Financial Condition, and a lease liability, presented within accrued expenses and other liabilities on the Consolidated Statement of Financial Condition, of approximately $3.1 million and $3.6 million, respectively. In transition, we elected the ‘package of practical expedients’, which permitted the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. Management did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provided practical expedients for an entity’s ongoing accounting. Management elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases with an initial term of 12 months or less, the Company did not recognize ROU assets or lease liabilities, and this included not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. In recognizing ROU lease assets and related lease liabilities, we exclude variable and non-lease components (such as taxes, insurance, and common area maintenance costs) and expense these costs as incurred. At lease commencement date, the lease payments over the expected term are discounted using our incremental borrowing rate referenced to the Federal Home Loan Bank advance rates of a similar term to determine the present value of our lease obligation and ROU asset to be recorded on the Statement of Financial Condition. Lease expense is then recognized on a straight-line basis. The Company has committed to rent premises used in business operations under non-cancelable operating leases that have renewal options for additional 3-5 year terms which were not considered in determining our ROU asset or lease liability as renewal is not reasonably certain. On June 16, 2016, the FASB issued Accounting Standards Update No. 2016‑13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (the ASU). This ASU replaces the incurred loss model with an expected loss model, referred to as “current expected credit loss” (CECL) model. It will significantly change estimates for credit losses related to financial assets measured at amortized cost, including loans receivable and certain other contracts. This ASU will be effective for the Company in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. At its July 17, 2019 public meeting, FASB issued a proposal to delay the effective date of ASU 2016-13 for certain entities, including SEC filers classified as smaller reporting companies. On October 16, 2019, FASB voted for the delay, the revised effective date for adoption for the Company, which is classified as a smaller reporting company, is January 1, 2023. Due to this change in effective date, the Company plans to adopt ASU 2016-13 on January 1, 2023, using the required modified retrospective method with a cumulative effect adjustment as of the beginning of the reporting period. The Company has gathered the necessary data and continues to prepare for the implementation of this standard.

Debt Securities

Debt Securities	9 Months Ended
	Sep. 30, 2019
Debt Securities
Debt Securities	NOTE 2 — Debt Securities Available-for-Sale Securities The amortized cost, gross unrealized gains and losses and estimated fair value of securities available for sale were as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) September 30, 2019 Mortgage-backed securities – agency $ 25,541 $ 609 $ (93) $ 26,057 Collateralized mortgage obligations (CMO’s) – agency 113,085 449 (426) 113,108 Total available-for-sale $ 138,626 $ 1,058 $ (519) $ 139,165 December 31, 2018 Mortgage-backed securities – agency $ 27,384 $ 15 $ (724) $ 26,675 Collateralized mortgage obligations (CMO’s) – agency 121,913 32 (2,922) 119,023 Total available-for-sale $ 149,297 $ 47 $ (3,646) $ 145,698 Mortgage-backed securities include all residential pass-through certificates guaranteed by FHLMC, FNMA, or GNMA and the CMO’s are backed by government agency pass-through certificates. The 2019 and 2018 pass-through certificates are fixed rate instruments. CMO’s, by virtue of the underlying residential collateral or structure, are fixed rate current pay sequentials or planned amortization classes (PAC’s). As actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations, these securities are not considered to have a single maturity date. There were no sales or calls of securities for the three and nine months ended September 30, 2019 and 2018. At September 30, 2019, securities having a fair value of $114.8 million were pledged to the Federal Home Loan Bank of New York (FHLB) for borrowing capacity totaling $109.7 million. At December 31, 2018, securities having a fair value of $120.7 million were pledged to the FHLB for borrowing capacity totaling $115.0 million. At September 30, 2019 and December 31, 2018, the Company had no outstanding FHLB advances. At September 30, 2019, securities having a fair value of $24.3 million were pledged to the Federal Reserve Bank of New York (FRB) for borrowing capacity totaling $23.6 million. At December 31, 2018, securities having a fair value of $25.0 million were pledged to the FRB for borrowing capacity totaling $24.2 million. At September 30, 2019 and December 31, 2018, the Company had no outstanding FRB borrowings. The following table provides the gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of: Less Than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross (In thousands) September 30, 2019 Mortgage-backed securities – agency $ — $ — $ 9,926 $ (93) $ 9,926 $ (93) CMO’s – agency 10,459 (85) 31,489 (341) 41,948 (426) Total temporarily impaired securities $ 10,459 $ (85) $ 41,415 $ (434) $ 51,874 $ (519) December 31, 2018 Mortgage-backed securities - agency $ 9,528 $ (99) $ 15,497 $ (625) $ 25,025 $ (724) CMO's - Agency 19,184 (73) 85,775 (2,849) 104,959 (2,922) Total temporarily impaired securities $ 28,712 $ (172) $ 101,272 $ (3,474) $ 129,984 $ (3,646) Management reviews the investment portfolio on a quarterly basis to determine the cause, magnitude and duration of declines in the fair value of each security. In estimating other-than-temporary impairment (OTTI), management considers many factors including: (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The assessment of whether any other than temporary decline exists may involve a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. At September 30, 2019, securities in unrealized loss positions were issuances from government sponsored entities. Due to the decline in fair value being attributable to changes in interest rates, not credit quality and because the Company does not have the intent to sell the securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider the securities to be other-than-temporarily impaired at September 30, 2019. No impairment charges were recorded for the three and nine months ended September 30, 2019 and 2018.

Loans

Loans	9 Months Ended
	Sep. 30, 2019
Loans
Loans	NOTE 3 — Loans The composition of loans by class is summarized as follows: September 30, 2019 December 31, 2018 (In thousands) 1 – 4 family residential $ 49,214 $ 56,043 Commercial 247,931 191,828 Multifamily 136,799 136,537 Commercial real estate 49,125 33,145 Construction 6,450 5,921 Consumer 43,911 43,675 Total Loans 533,430 467,149 Deferred costs and unearned premiums, net 519 952 Allowance for loan losses (6,741) (5,629) Loans, net $ 527,208 $ 462,472 The following tables present the activity in the allowance for loan losses by class for the three months ending September 30, 2019 and 2018: 1-4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) September 30, 2019 Allowance for loan losses: Beginning balance $ 372 $ 3,843 $ 920 $ 406 $ 161 $ 731 $ 6,433 Provision (credit) for loan losses (16) 230 19 123 1 68 425 Recoveries — — — — — — — Loans charged-off — — — — — (117) (117) Total ending allowance balance $ 356 $ 4,073 $ 939 $ 529 $ 162 $ 682 $ 6,741 September 30, 2018 Allowance for loan losses: Beginning balance $ 425 $ 2,518 $ 826 $ 345 $ 168 $ 507 $ 4,789 Provision (credit) for loan losses (6) 303 85 34 (26) 60 450 Recoveries — — — — — — — Loans charged-off — — — — — (10) (10) Total ending allowance balance $ 419 $ 2,821 $ 911 $ 379 $ 142 $ 557 $ 5,229 The following tables present the activity in the allowance for loan losses by class for the nine months ending September 30, 2019 and 2018: 1-4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) September 30, 2019 Allowance for loan losses: Beginning balance $ 407 $ 3,110 $ 952 $ 357 $ 149 $ 654 $ 5,629 Provision (credit) for loan losses (51) 982 (13) 172 13 147 1,250 Recoveries — — — — — — — Loans charged-off — (19) — — — (119) (138) Total ending allowance balance $ 356 $ 4,073 $ 939 $ 529 $ 162 $ 682 $ 6,741 September 30, 2018 Allowance for loan losses: Beginning balance $ 382 $ 2,272 $ 713 $ 266 $ 127 $ 504 $ 4,264 Provision for loan losses 37 549 198 113 15 63 975 Recoveries — — — — — — — Loans charged-off — — — — — (10) (10) Total ending allowance balance $ 419 $ 2,821 $ 911 $ 379 $ 142 $ 557 $ 5,229 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by class and based on impairment method as of September 30, 2019 and December 31, 2018: 1‑4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) September 30, 2019 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 356 4,073 939 529 162 682 6,741 Total ending allowance balance $ 356 $ 4,073 $ 939 $ 529 $ 162 $ 682 $ 6,741 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ 1,076 $ 1,076 Loans collectively evaluated for impairment 49,214 247,931 136,799 49,125 6,450 42,835 532,354 Total ending loans balance $ 49,214 $ 247,931 $ 136,799 $ 49,125 $ 6,450 $ 43,911 $ 533,430 1‑4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) December 31, 2018 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 407 3,110 952 357 149 654 5,629 Total ending allowance balance $ 407 $ 3,110 $ 952 $ 357 $ 149 $ 654 $ 5,629 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 56,043 191,828 136,537 33,145 5,921 43,675 467,149 Total ending loans balance $ 56,043 $ 191,828 $ 136,537 $ 33,145 $ 5,921 $ 43,675 $ 467,149 Recorded investment is not adjusted for accrued interest, deferred fees and costs, and unearned premiums and discounts due to immateriality. The following tables provide an analysis of the impaired loans by segment as of September 30, 2019. There was no related allowance recorded on any impaired loans as of September 30, 2019. There were no impaired loans as of December 31, 2018: September 30, 2019 Unpaid Recorded Principal Investment Balance (In thousands) 1-4 family residential $ — $ — Commercial — — Multifamily — — Commercial real estate — — Construction — — Consumer 1,076 1,076 Total $ 1,076 $ 1,076 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (In thousands) 1-4 family residential $ — $ — $ — $ — $ — $ — $ — $ — Commercial — — — — — — — — Multifamily — — — — — — — — Commercial real estate — — — — — — — — Construction — — — — — — — — Consumer 717 — — — 239 — — — Total $ 717 $ — $ — $ — $ 239 $ — $ — $ — Nonperforming Loans Nonperforming loans include loans 90 days past due and still accruing and nonaccrual loans. At September 30, 2019 the Company had $1.1 million in nonperforming consumer loans. At December 31, 2018, the Company did not have any nonperforming loans. The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2019 and December 31, 2018: 30-59 60-89 Greater than Days Days 90 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (In thousands) September 30, 2019 1 – 4 family residential $ — $ — $ — $ — $ 49,214 $ 49,214 Commercial — — — — 247,931 247,931 Multifamily — — — — 136,799 136,799 Commercial real estate — — — — 49,125 49,125 Construction — — — — 6,450 6,450 Consumer 326 — — 326 43,585 43,911 Total $ 326 $ — $ — $ 326 $ 533,104 $ 533,430 30-59 60-89 Greater than Days Days 90 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (In thousands) December 31, 2018 1 – 4 family residential $ — $ — $ — $ — $ 56,043 $ 56,043 Commercial — — — — 191,828 191,828 Multifamily — — — — 136,537 136,537 Commercial real estate — — — — 33,145 33,145 Construction — — — — 5,921 5,921 Consumer — 40 — 40 43,635 43,675 Total $ — $ 40 $ — $ 40 $ 467,109 $ 467,149 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed whenever a credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. The Company uses the following definitions for risk ratings: Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Pass Special Mention Substandard Doubtful (In thousands) September 30, 2019 1 – 4 family residential $ 49,214 $ — $ — $ — Commercial 243,520 4,271 140 — Multifamily 136,799 — — — Commercial real estate 49,125 — — — Construction 6,450 — — — Consumer 42,835 — 1,076 — Total $ 527,943 $ 4,271 $ 1,216 $ — Pass Special Mention Substandard Doubtful (In thousands) December 31, 2018 1 – 4 family residential $ 56,043 $ — $ — $ — Commercial 182,482 9,166 180 — Multifamily 136,537 — — — Commercial real estate 33,145 — — — Construction 5,921 — — — Consumer 43,675 — — — Total $ 457,803 $ 9,166 $ 180 $ — The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The Company has no loans identified as troubled debt restructurings at September 30, 2019 and December 31, 2018. Furthermore, there were no loans modified during the three and nine months ended September 30, 2019 and 2018 as troubled debt restructurings. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification.

Noninterest Income

Noninterest Income	9 Months Ended
	Sep. 30, 2019
Noninterest Income.
Noninterest Income	NOTE 4 — Noninterest Income Descriptions of revenue-generating activities that are within the scope of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, and are presented in the Consolidated Statements of Income as components of noninterest income, are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Noninterest income Customer related fees and service charges Administrative service income $ 107 $ 425 $ 395 $ 2,077 Merchant processing income Merchant services income 3,124 1,214 7,585 3,284 ACH income 160 86 409 248 Other 84 75 258 245 Total noninterest income $ 3,475 $ 1,800 $ 8,647 $ 5,854 The · Administrative service income – Administrative service income is derived primarily from the management of qualified settlement funds (QSFs), which are funds from settled mass torts and class action lawsuits. Our performance obligations with the QSFs are outlined in court approved orders which includes ensuring funds are invested into safe investment vehicles such as U.S. treasuries and FDIC insured products. Our fees for placing these funds in appropriate vehicles are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. · Merchant services income – We provide merchant services as an acquiring bank through the third-party or independent sales organization (ISO) business model in which we process credit and debit card transactions on behalf of merchants. We enter into a tri-party merchant agreement, between the company, ISO and each merchant. The Company’s performance obligation is clearing and settling credit and debit transactions on behalf of the merchants. The Company recognizes revenue monthly once it summarizes and computes all revenue and expenses applicable to each ISO, which is our performance obligation. · ACH income – We provide ACH services for merchants and other commercial customers. Contracts are entered into with third parties that require ACH transactions processed on behalf of their customers. Fees are variable and based on the volume of transactions within a given month. Our performance obligations are processing and settling ACH’s on behalf of the customers. Our obligation is satisfied within each business day when the transactions (ACH files) are sent to the Federal Reserve Bank for clearing. Revenue is recognized based on the total volume of transactions processed that month for a given customer. · Other – The other category includes revenue from service charges on deposit accounts, debit card interchange fees, and certain loan related fees where revenue is recognized as performance obligations are satisfied.

Share-Based Payment Plans

Share-Based Payment Plans	9 Months Ended
	Sep. 30, 2019
Share-Based Payment Plans
Share-Based Payment Plans	NOTE 5 — Share-Based Payment Plans The Company issues incentive and nonqualified stock options and restricted stock awards to certain employees and directors pursuant to its equity incentive plans, which have been approved by the stockholders. Share-based awards are granted by the Compensation Committee of the Board of Directors. Under the plans, options are granted with an exercise price equal to the fair value of the Company’s stock at the date of the grant. Options granted vest over three or five years and have ten-year contractual terms. All options provide for accelerated vesting upon a change in control (as defined in the plans). Restricted shares are granted at the fair value on the date of grant and typically vest over 6 years with a third vesting after years four, five, and six. Restricted shares have the same voting rights as common stock and nonvested restricted shareholders do not have rights to the accrued dividends until vested. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on peer volatility. The Company uses peer data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on peer data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no stock options granted during the three and nine months ended September 30, 2019 and the three months ended September 30, 2018. The fair value of options granted during the nine months ended September 30, 2018 was determined using the following weighted average assumptions as of the grant date: Nine months ended September 30, 2018 Risk-Free Interest Rate 2.54 % Expected Term 84 months Expected Stock Price Volatility 21.0 % Dividend Yield % Weighted Average Fair Value $ 5.63 The following table presents a summary of the activity related to options as of September 30, 2019: Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) September 30, 2019 Outstanding at beginning of year 919,175 $ 13.39 Granted — — Exercised (14,000) 12.50 Forfeited — — Outstanding at period end 905,175 $ 13.41 6.12 Vested or expected to vest 905,175 $ 13.41 6.12 Exercisable at period end 691,504 $ 12.71 5.77 The Company recognized compensation expense related to options of $129 thousand and $563 thousand for the three months ended September 30, 2019 and 2018, respectively. The Company recognized compensation expense related to options of $392 thousand and $880 thousand for the nine months ended September 30, 2019 and 2018, respectively. At September 30, 2019, unrecognized compensation cost related to nonvested options was approximately $786 thousand and is expected to be recognized over a weighted average period of 1.73 years. The intrinsic value for outstanding options and for options vested or expected to vest was $10.3 million and $8.4 million for exercisable options at September 30, 2019. The following table presents a summary of the activity related to restricted stock as of September 30, 2019: Weighted Average Grant Date Shares Fair Value September 30, 2019 Outstanding at beginning of year 148,500 $ 22.56 Granted — — Vested — — Outstanding at period end 148,500 $ 22.56 The Company recognized compensation expense related to restricted stock of $140 thousand and $317 thousand for the three months ended September 30, 2019 and 2018, respectively. The Company recognized compensation expense related to restricted stock of $417 thousand and $424 thousand for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, there was $2.7 million of total unrecognized compensation cost related to nonvested shares granted under the plan. The cost is expected to be recognized over a weighted-average period of 4.92 years.

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2019
Earnings per Share
Earnings per Share	NOTE 6 — Earnings per Share The factors used in the earnings per share computation follow: Three months ended Nine months ended At September 30, At September 30, 2019 2018 2019 2018 (Dollars in thousands, except per share data) Basic Net income $ 3,817 $ 1,682 $ 10,270 $ 5,861 Weighted average common shares outstanding 7,391,611 7,377,701 7,387,196 7,370,573 Basic earnings per share $ 0.52 $ 0.23 $ 1.39 $ 0.80 Diluted Net income $ 3,817 $ 1,682 $ 10,270 $ 5,861 Weighted average shares outstanding for basic earnings per share 7,391,611 7,377,701 7,387,196 7,370,573 Add: Dilutive effects of share based awards 406,701 408,762 385,284 352,156 Average shares and dilutive potential common shares 7,798,312 7,786,463 7,772,480 7,722,729 Diluted earnings per share $ 0.49 $ 0.22 $ 1.32 $ 0.76 Share-based awards totaling 42,500 and 298,181 shares of common stock were not considered in computing diluted earnings per common share for the three months ended September 30, 2019 and September 30, 2018, respectively, because they were anti-dilutive. shares of common stock were not considered in computing diluted earnings per common share for the nine months ended September 30, 2019 and September 30, 2018, respectively, because they were anti-dilutive.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases
Leases	NOTE 7 — Leases The Company adopted ASU 2016-02 on January 1, 2019. As a result of adoption, the Company recognized operating lease assets and corresponding lease liabilities related to its office facilities and retail branch. The operating lease assets represent the Company’s right to use an underlying asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments over the lease term. The operating lease asset and lease liability are determined at the commencement date of the lease based on the present value of the lease payments. As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, the rate of interest to borrow on a collateralized basis for a similar term, at the lease commencement date. The Company made a policy election to exclude the recognition requirements of ASU 2016-02 to short-term leases, those leases with original terms of 12 months or less. Short-term lease payments are recognized in the income statement on a straight-line basis over the lease term. Certain leases may include one or more options to renew. The exercise of lease renewal options is typically at the Company’s discretion, and are included in the operating lease liability if it is reasonably certain that the renewal option will be exercised. Certain real estate leases may contain lease and non-lease components, such as common area maintenance charges, real estate taxes, and insurance, which are generally accounted for separately and are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not sublease any of its leased properties. The Company does not lease properties from any related parties. As of September 30, 2019, ROU lease assets and related lease liabilities were $2.8 million and $3.4 million, respectively. The Company has entered into an additional lease that had not commenced as of September 30, 2019, which provides for the right of use of additional space at its Jericho headquarters for a term of 7 years at a total cost of $0.7 million. Maturities of the Company’s operating lease liabilities at September 30, 2019 are as follows: Year ending December 31, (In thousands) 2019 (a) $ 150 2020 563 2021 605 2022 620 2023 636 Thereafter 1,946 Total operating lease payments $ 4,520 Less: payments for leases not yet commenced 660 Less: interest 433 Present value of operating lease liabilities $ 3,427 (a) Excluding nine months ended September 30, 2019 As of and for the nine months ended September 30, 2019 (Dollars in thousands) Operating lease cost $ 359 Cash paid for operating lease liability 301 Weighted-average remaining lease term 7.11 years Weighted-average discount rate 3.28 %

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Fair Value Measurements	NOTE 8 — Fair Value Measurements Fair value is 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. There are 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. For available-for-sale securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2019 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 26,057 $ — CMO’s – agency — 113,108 — Total $ — $ 139,165 $ — December 31, 2018 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 26,675 $ — CMO’s – agency — 119,023 — Total $ — $ 145,698 $ — There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2019 and 2018. There were no assets measured on a nonrecurring basis as of September 30, 2019 and December 31, 2018. The following tables present the carrying amounts and fair values (represents exit price) of financial instruments at September 30, 2019 and December 31, 2018: Fair Value Measurement at September 30, 2019, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 61,676 $ 669 $ 61,007 $ — $ 61,676 Securities available-for-sale 139,165 — 139,165 — 139,165 Securities, restricted, at cost 2,665 N/A N/A N/A N/A Loans, net 527,208 — — 531,031 531,031 Accrued interest receivable 3,159 — 386 2,773 3,159 Financial Liabilities: Time deposits 19,959 — 19,946 — 19,946 Demand and other deposits 624,552 624,552 — — 624,552 Secured borrowings 87 — 87 — 87 Accrued interest payable 11 — 11 — 11 Fair Value Measurement at December 31, 2018, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 30,562 $ 659 $ 29,903 $ — $ 30,562 Securities available-for-sale 145,698 — 145,698 — 145,698 Securities, restricted, at cost 2,583 N/A N/A N/A N/A Loans, net 462,472 — — 464,144 464,144 Accrued interest receivable 3,855 — 368 3,487 3,855 Financial Liabilities: Time deposits 20,417 — 20,377 — 20,377 Demand and other deposits 548,004 548,004 — — 548,004 Secured borrowings 89 — 89 — 89 Accrued interest payable 15 — 15 — 15

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	NOTE 9 — Accumulated Other Comprehensive Loss The following presents changes in accumulated other comprehensive loss by component, net of tax for the three and nine months ending September 30, 2019 and 2018: Three months ended Nine months ended At September 30, At September 30, 2019 2018 2019 2018 (In thousands) Unrealized Losses on Available-for-Sale Securities Beginning balance $ (80) $ (3,257) $ (2,614) $ (1,390) Other comprehensive income (loss) before reclassifications, net of tax 466 (564) 3,000 (2,431) Amounts reclassified from accumulated other comprehensive income — — — — Net current period other comprehensive income (loss) 466 (564) 3,000 (2,431) Ending balance $ 386 $ (3,821) $ 386 $ (3,821) There were no reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2019 and 2018.

Debt Securities (Tables)

Debt Securities (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Securities
Schedule of amortized cost, gross unrealized gains and losses and estimated fair value of securities available-for-sale	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) September 30, 2019 Mortgage-backed securities – agency $ 25,541 $ 609 $ (93) $ 26,057 Collateralized mortgage obligations (CMO’s) – agency 113,085 449 (426) 113,108 Total available-for-sale $ 138,626 $ 1,058 $ (519) $ 139,165 December 31, 2018 Mortgage-backed securities – agency $ 27,384 $ 15 $ (724) $ 26,675 Collateralized mortgage obligations (CMO’s) – agency 121,913 32 (2,922) 119,023 Total available-for-sale $ 149,297 $ 47 $ (3,646) $ 145,698
Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position	Less Than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross (In thousands) September 30, 2019 Mortgage-backed securities – agency $ — $ — $ 9,926 $ (93) $ 9,926 $ (93) CMO’s – agency 10,459 (85) 31,489 (341) 41,948 (426) Total temporarily impaired securities $ 10,459 $ (85) $ 41,415 $ (434) $ 51,874 $ (519) December 31, 2018 Mortgage-backed securities - agency $ 9,528 $ (99) $ 15,497 $ (625) $ 25,025 $ (724) CMO's - Agency 19,184 (73) 85,775 (2,849) 104,959 (2,922) Total temporarily impaired securities $ 28,712 $ (172) $ 101,272 $ (3,474) $ 129,984 $ (3,646)

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Loans
Schedule of composition of loans	September 30, 2019 December 31, 2018 (In thousands) 1 – 4 family residential $ 49,214 $ 56,043 Commercial 247,931 191,828 Multifamily 136,799 136,537 Commercial real estate 49,125 33,145 Construction 6,450 5,921 Consumer 43,911 43,675 Total Loans 533,430 467,149 Deferred costs and unearned premiums, net 519 952 Allowance for loan losses (6,741) (5,629) Loans, net $ 527,208 $ 462,472
Schedule of activity in allowance for loan losses	The following tables present the activity in the allowance for loan losses by class for the three months ending September 30, 2019 and 2018: 1-4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) September 30, 2019 Allowance for loan losses: Beginning balance $ 372 $ 3,843 $ 920 $ 406 $ 161 $ 731 $ 6,433 Provision (credit) for loan losses (16) 230 19 123 1 68 425 Recoveries — — — — — — — Loans charged-off — — — — — (117) (117) Total ending allowance balance $ 356 $ 4,073 $ 939 $ 529 $ 162 $ 682 $ 6,741 September 30, 2018 Allowance for loan losses: Beginning balance $ 425 $ 2,518 $ 826 $ 345 $ 168 $ 507 $ 4,789 Provision (credit) for loan losses (6) 303 85 34 (26) 60 450 Recoveries — — — — — — — Loans charged-off — — — — — (10) (10) Total ending allowance balance $ 419 $ 2,821 $ 911 $ 379 $ 142 $ 557 $ 5,229 The following tables present the activity in the allowance for loan losses by class for the nine months ending September 30, 2019 and 2018: 1-4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) September 30, 2019 Allowance for loan losses: Beginning balance $ 407 $ 3,110 $ 952 $ 357 $ 149 $ 654 $ 5,629 Provision (credit) for loan losses (51) 982 (13) 172 13 147 1,250 Recoveries — — — — — — — Loans charged-off — (19) — — — (119) (138) Total ending allowance balance $ 356 $ 4,073 $ 939 $ 529 $ 162 $ 682 $ 6,741 September 30, 2018 Allowance for loan losses: Beginning balance $ 382 $ 2,272 $ 713 $ 266 $ 127 $ 504 $ 4,264 Provision for loan losses 37 549 198 113 15 63 975 Recoveries — — — — — — — Loans charged-off — — — — — (10) (10) Total ending allowance balance $ 419 $ 2,821 $ 911 $ 379 $ 142 $ 557 $ 5,229 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by class and based on impairment method as of September 30, 2019 and December 31, 2018: 1‑4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) September 30, 2019 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 356 4,073 939 529 162 682 6,741 Total ending allowance balance $ 356 $ 4,073 $ 939 $ 529 $ 162 $ 682 $ 6,741 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ 1,076 $ 1,076 Loans collectively evaluated for impairment 49,214 247,931 136,799 49,125 6,450 42,835 532,354 Total ending loans balance $ 49,214 $ 247,931 $ 136,799 $ 49,125 $ 6,450 $ 43,911 $ 533,430 1‑4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) December 31, 2018 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 407 3,110 952 357 149 654 5,629 Total ending allowance balance $ 407 $ 3,110 $ 952 $ 357 $ 149 $ 654 $ 5,629 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 56,043 191,828 136,537 33,145 5,921 43,675 467,149 Total ending loans balance $ 56,043 $ 191,828 $ 136,537 $ 33,145 $ 5,921 $ 43,675 $ 467,149
Schedule of impaired loans	September 30, 2019 Unpaid Recorded Principal Investment Balance (In thousands) 1-4 family residential $ — $ — Commercial — — Multifamily — — Commercial real estate — — Construction — — Consumer 1,076 1,076 Total $ 1,076 $ 1,076 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (In thousands) 1-4 family residential $ — $ — $ — $ — $ — $ — $ — $ — Commercial — — — — — — — — Multifamily — — — — — — — — Commercial real estate — — — — — — — — Construction — — — — — — — — Consumer 717 — — — 239 — — — Total $ 717 $ — $ — $ — $ 239 $ — $ — $ —
Schedule of aging of recorded investment in past due loans	30-59 60-89 Greater than Days Days 90 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (In thousands) September 30, 2019 1 – 4 family residential $ — $ — $ — $ — $ 49,214 $ 49,214 Commercial — — — — 247,931 247,931 Multifamily — — — — 136,799 136,799 Commercial real estate — — — — 49,125 49,125 Construction — — — — 6,450 6,450 Consumer 326 — — 326 43,585 43,911 Total $ 326 $ — $ — $ 326 $ 533,104 $ 533,430 30-59 60-89 Greater than Days Days 90 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (In thousands) December 31, 2018 1 – 4 family residential $ — $ — $ — $ — $ 56,043 $ 56,043 Commercial — — — — 191,828 191,828 Multifamily — — — — 136,537 136,537 Commercial real estate — — — — 33,145 33,145 Construction — — — — 5,921 5,921 Consumer — 40 — 40 43,635 43,675 Total $ — $ 40 $ — $ 40 $ 467,109 $ 467,149
Schedule of risk category of loans	Pass Special Mention Substandard Doubtful (In thousands) September 30, 2019 1 – 4 family residential $ 49,214 $ — $ — $ — Commercial 243,520 4,271 140 — Multifamily 136,799 — — — Commercial real estate 49,125 — — — Construction 6,450 — — — Consumer 42,835 — 1,076 — Total $ 527,943 $ 4,271 $ 1,216 $ — Pass Special Mention Substandard Doubtful (In thousands) December 31, 2018 1 – 4 family residential $ 56,043 $ — $ — $ — Commercial 182,482 9,166 180 — Multifamily 136,537 — — — Commercial real estate 33,145 — — — Construction 5,921 — — — Consumer 43,675 — — — Total $ 457,803 $ 9,166 $ 180 $ —

Noninterest Income (Tables)

Noninterest Income (Tables)	9 Months Ended
	Sep. 30, 2019
Noninterest Income.
Schedule of Consolidated of Income as components of noninterest income	For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 (In thousands) Noninterest income Customer related fees and service charges Administrative service income $ 107 $ 425 $ 395 $ 2,077 Merchant processing income Merchant services income 3,124 1,214 7,585 3,284 ACH income 160 86 409 248 Other 84 75 258 245 Total noninterest income $ 3,475 $ 1,800 $ 8,647 $ 5,854

Share-Based Payment Plans (Tabl

Share-Based Payment Plans (Tables)	9 Months Ended
	Sep. 30, 2019
Share-Based Payment Plans
Schedule of fair value of weighted-average assumptions of options granted	Nine months ended September 30, 2018 Risk-Free Interest Rate 2.54 % Expected Term 84 months Expected Stock Price Volatility 21.0 % Dividend Yield % Weighted Average Fair Value $ 5.63
Schedule of option activity	Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) September 30, 2019 Outstanding at beginning of year 919,175 $ 13.39 Granted — — Exercised (14,000) 12.50 Forfeited — — Outstanding at period end 905,175 $ 13.41 6.12 Vested or expected to vest 905,175 $ 13.41 6.12 Exercisable at period end 691,504 $ 12.71 5.77
Schedule of activity related to restricted stock	Weighted Average Grant Date Shares Fair Value September 30, 2019 Outstanding at beginning of year 148,500 $ 22.56 Granted — — Vested — — Outstanding at period end 148,500 $ 22.56

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings per Share
Schedule of earnings per share	Three months ended Nine months ended At September 30, At September 30, 2019 2018 2019 2018 (Dollars in thousands, except per share data) Basic Net income $ 3,817 $ 1,682 $ 10,270 $ 5,861 Weighted average common shares outstanding 7,391,611 7,377,701 7,387,196 7,370,573 Basic earnings per share $ 0.52 $ 0.23 $ 1.39 $ 0.80 Diluted Net income $ 3,817 $ 1,682 $ 10,270 $ 5,861 Weighted average shares outstanding for basic earnings per share 7,391,611 7,377,701 7,387,196 7,370,573 Add: Dilutive effects of share based awards 406,701 408,762 385,284 352,156 Average shares and dilutive potential common shares 7,798,312 7,786,463 7,772,480 7,722,729 Diluted earnings per share $ 0.49 $ 0.22 $ 1.32 $ 0.76

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Schedule of maturities of operating lease liabilities	Year ending December 31, (In thousands) 2019 (a) $ 150 2020 563 2021 605 2022 620 2023 636 Thereafter 1,946 Total operating lease payments $ 4,520 Less: payments for leases not yet commenced 660 Less: interest 433 Present value of operating lease liabilities $ 3,427 (a) Excluding nine months ended September 30, 2019
Schedule of lease cost	As of and for the nine months ended September 30, 2019 (Dollars in thousands) Operating lease cost $ 359 Cash paid for operating lease liability 301 Weighted-average remaining lease term 7.11 years Weighted-average discount rate 3.28 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurements Using Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2019 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 26,057 $ — CMO’s – agency — 113,108 — Total $ — $ 139,165 $ — December 31, 2018 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 26,675 $ — CMO’s – agency — 119,023 — Total $ — $ 145,698 $ —
Schedule of carrying amounts and fair values of financial instruments	Fair Value Measurement at September 30, 2019, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 61,676 $ 669 $ 61,007 $ — $ 61,676 Securities available-for-sale 139,165 — 139,165 — 139,165 Securities, restricted, at cost 2,665 N/A N/A N/A N/A Loans, net 527,208 — — 531,031 531,031 Accrued interest receivable 3,159 — 386 2,773 3,159 Financial Liabilities: Time deposits 19,959 — 19,946 — 19,946 Demand and other deposits 624,552 624,552 — — 624,552 Secured borrowings 87 — 87 — 87 Accrued interest payable 11 — 11 — 11 Fair Value Measurement at December 31, 2018, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 30,562 $ 659 $ 29,903 $ — $ 30,562 Securities available-for-sale 145,698 — 145,698 — 145,698 Securities, restricted, at cost 2,583 N/A N/A N/A N/A Loans, net 462,472 — — 464,144 464,144 Accrued interest receivable 3,855 — 368 3,487 3,855 Financial Liabilities: Time deposits 20,417 — 20,377 — 20,377 Demand and other deposits 548,004 548,004 — — 548,004 Secured borrowings 89 — 89 — 89 Accrued interest payable 15 — 15 — 15

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive (Loss) Income (Tables)	9 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Loss
Schedule of changes in accumulated other comprehensive (loss) income by component, net of tax	Three months ended Nine months ended At September 30, At September 30, 2019 2018 2019 2018 (In thousands) Unrealized Losses on Available-for-Sale Securities Beginning balance $ (80) $ (3,257) $ (2,614) $ (1,390) Other comprehensive income (loss) before reclassifications, net of tax 466 (564) 3,000 (2,431) Amounts reclassified from accumulated other comprehensive income — — — — Net current period other comprehensive income (loss) 466 (564) 3,000 (2,431) Ending balance $ 386 $ (3,821) $ 386 $ (3,821)

Basis of Presentation - New Acc

Basis of Presentation - New Accounting Pronouncements - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
ROU lease assets	$ 2,800	$ 3,100
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]		Other Assets
lease liability	$ 3,427	$ 3,600
Operating Lease, Liability, Statement of Financial Position [Extensible List]		Accrued Liabilities and Other Liabilities
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false
Lease, Practical Expedient, Land Easement [true false]	false
Minimum
Lessee, Lease, Description [Line Items]
Renewal options	3 years
Maximum
Lessee, Lease, Description [Line Items]
Renewal options	5 years

Securities - Summary of reconci

Securities - Summary of reconciliation of amortized cost to fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 138,626	$ 149,297
Gross Unrealized Gains	1,058	47
Gross Unrealized Losses	(519)	(3,646)
Fair Value	139,165	145,698
Mortgage-backed securities – agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	25,541	27,384
Gross Unrealized Gains	609	15
Gross Unrealized Losses	(93)	(724)
Fair Value	26,057	26,675
CMO's - agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	113,085	121,913
Gross Unrealized Gains	449	32
Gross Unrealized Losses	(426)	(2,922)
Fair Value	$ 113,108	$ 119,023

Securities - Summary of amortiz

Securities - Summary of amortized cost and fair value of debt securities by contractual maturity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Sales or calls of securities	$ 0	$ 0
Federal Home Loan Bank Advances
Debt Securities, Available-for-sale [Line Items]
Short-term debt	0		$ 0
Federal Reserve Bank Advances
Debt Securities, Available-for-sale [Line Items]
Short-term debt	$ 0		$ 0

Securities - Summary of securit

Securities - Summary of securities in unrealized loss position (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	$ 10,459	$ 28,712
Gross Unrealized Losses, Less than 12 Months	(85)	(172)
Fair Value, 12 Months or Longer	41,415	101,272
Gross Unrealized Losses, 12 Months or Longer	(434)	(3,474)
Fair Value, Total	51,874	129,984
Gross Unrealized Losses, Total	(519)	(3,646)
Mortgage-backed securities – agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months		9,528
Gross Unrealized Losses, Less than 12 Months		(99)
Fair Value, 12 Months or Longer	9,926	15,497
Gross Unrealized Losses, 12 Months or Longer	(93)	(625)
Fair Value, Total	9,926	25,025
Gross Unrealized Losses, Total	(93)	(724)
CMO's - agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	10,459	19,184
Gross Unrealized Losses, Less than 12 Months	(85)	(73)
Fair Value, 12 Months or Longer	31,489	85,775
Gross Unrealized Losses, 12 Months or Longer	(341)	(2,849)
Fair Value, Total	41,948	104,959
Gross Unrealized Losses, Total	$ (426)	$ (2,922)

Securities - Additional disclos

Securities - Additional disclosures (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	$ 2,665		$ 2,583
Impairment charges	0	$ 0
Federal Reserve Bank of New York (FRB)
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	24,300		25,000
Securities pledged borrowed amount	23,600		24,200
Federal Home Loan Bank of New York (FHLB)
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	114,800		120,700
Securities pledged borrowed amount	$ 109,700		$ 115,000

Loans - Summary of loan composi

Loans - Summary of loan composition (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	$ 533,430		$ 467,149
Deferred costs and unearned premiums, net	519		952
Allowance for loan losses	(6,741)	$ (6,433)	(5,629)	$ (5,229)	$ (4,789)	$ (4,264)
Net loans	527,208		462,472
Real Estate | 1 - 4 Family Residential
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	49,214		56,043
Allowance for loan losses	(356)	(372)	(407)	(419)	(425)	(382)
Real Estate | Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	136,799		136,537
Allowance for loan losses	(939)	(920)	(952)	(911)	(826)	(713)
Real Estate | Commercial Real Estate
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	49,125		33,145
Allowance for loan losses	(529)	(406)	(357)	(379)	(345)	(266)
Real Estate | Construction
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	6,450		5,921
Allowance for loan losses	(162)	(161)	(149)	(142)	(168)	(127)
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	247,931		191,828
Allowance for loan losses	(4,073)	(3,843)	(3,110)	(2,821)	(2,518)	(2,272)
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	43,911		43,675
Allowance for loan losses	$ (682)	$ (731)	$ (654)	$ (557)	$ (507)	$ (504)

Loans - Summary of activity in

Loans - Summary of activity in allowance for loan losses by class (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Allowance for loan losses:
Beginning balance	$ 6,433	$ 4,789	$ 5,629	$ 4,264	$ 4,264
Provision (credit) for loan losses	425	450	1,250	975	1,250
Recoveries	0	0
Loans charged-off	(117)	(10)	(138)	(10)
Total ending allowance balance	6,741	5,229	6,741	5,229	5,629
Real Estate | 1 - 4 Family Residential
Allowance for loan losses:
Beginning balance	372	425	407	382	382
Provision (credit) for loan losses	(16)	(6)		37	(51)
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	356	419	356	419	407
Real Estate | Multifamily
Allowance for loan losses:
Beginning balance	920	826	952	713	713
Provision (credit) for loan losses	19	85		198	(13)
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	939	911	939	911	952
Real Estate | Commercial Real Estate
Allowance for loan losses:
Beginning balance	406	345	357	266	266
Provision (credit) for loan losses	123	34		113	172
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	529	379	529	379	357
Real Estate | Construction
Allowance for loan losses:
Beginning balance	161	168	149	127	127
Provision (credit) for loan losses	1	(26)		15	13
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	162	142	162	142	149
Commercial
Allowance for loan losses:
Beginning balance	3,843	2,518	3,110	2,272	2,272
Provision (credit) for loan losses	230	303		549	982
Recoveries	0	0
Loans charged-off	0	0	(19)
Total ending allowance balance	4,073	2,821	4,073	2,821	3,110
Consumer
Allowance for loan losses:
Beginning balance	731	507	654	504	504
Provision (credit) for loan losses	68	60		63	147
Recoveries	0	0
Loans charged-off	(117)	(10)	(119)	(10)
Total ending allowance balance	$ 682	$ 557	$ 682	$ 557	$ 654

Loans - Summary of balance in a

Loans - Summary of balance in allowance for loan losses and recorded investment in loans by class and based on impairment method (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 0		$ 0
Collectively evaluated for impairment	6,741		5,629
Total ending allowance balance	6,741	$ 6,433	5,629	$ 5,229	$ 4,789	$ 4,264
Loans:
Loans individually evaluated for impairment	1,076		0
Loans collectively evaluated for impairment	532,354		467,149
Total ending loans balance	533,430		467,149
Real Estate | 1 - 4 Family Residential
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	356		407
Total ending allowance balance	356	372	407	419	425	382
Loans:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	49,214		56,043
Total ending loans balance	49,214		56,043
Real Estate | Multifamily
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	939		952
Total ending allowance balance	939	920	952	911	826	713
Loans:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	136,799		136,537
Total ending loans balance	136,799		136,537
Real Estate | Commercial Real Estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	529		357
Total ending allowance balance	529	406	357	379	345	266
Loans:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	49,125		33,145
Total ending loans balance	49,125		33,145
Real Estate | Construction
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	162		149
Total ending allowance balance	162	161	149	142	168	127
Loans:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	6,450		5,921
Total ending loans balance	6,450		5,921
Commercial
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	4,073		3,110
Total ending allowance balance	4,073	3,843	3,110	2,821	2,518	2,272
Loans:
Loans individually evaluated for impairment	0		0
Loans collectively evaluated for impairment	247,931		191,828
Total ending loans balance	247,931		191,828
Consumer
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	682		654
Total ending allowance balance	682	$ 731	654	$ 557	$ 507	$ 504
Loans:
Loans individually evaluated for impairment	1,076		0
Loans collectively evaluated for impairment	42,835		43,675
Total ending loans balance	$ 43,911		$ 43,675

Loans - Summary of impaired loa

Loans - Summary of impaired loans by segment (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 1,076	$ 1,076
Unpaid Principal Balance	1,076	1,076
Average Recorded Investment	717	239
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,076	1,076
Unpaid Principal Balance	1,076	1,076
Average Recorded Investment	717	239
Non-performing loans	$ 1,100	$ 1,100	$ 0

Loans - Summary of loans by pas

Loans - Summary of loans by past due status (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 326	$ 40
Loans Not Past Due	533,104	467,109
Total Loans	533,430	467,149
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	326	0
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	40
Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | 1 - 4 Family Residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Loans Not Past Due	49,214	56,043
Total Loans	49,214	56,043
Real Estate | 1 - 4 Family Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | 1 - 4 Family Residential | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | 1 - 4 Family Residential | Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Loans Not Past Due	136,799	136,537
Total Loans	136,799	136,537
Real Estate | Multifamily | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Multifamily | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Multifamily | Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Loans Not Past Due	49,125	33,145
Total Loans	49,125	33,145
Real Estate | Commercial Real Estate | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Commercial Real Estate | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Commercial Real Estate | Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Loans Not Past Due	6,450	5,921
Total Loans	6,450	5,921
Real Estate | Construction | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Construction | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real Estate | Construction | Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Loans Not Past Due	247,931	191,828
Total Loans	247,931	191,828
Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Commercial | Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	326	40
Loans Not Past Due	43,585	43,635
Total Loans	43,911	43,675
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	326	0
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	40
Consumer | Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 0	$ 0

Loans - Summary of loans by cre

Loans - Summary of loans by credit quality indicator based on internally assigned credit grade (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2019USD ($)item	Sep. 30, 2018item	Dec. 31, 2018USD ($)item
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 533,430		$ 467,149
Number of loans identified as troubled debt restructuring | item	0		0
Number of loans modified | item	0	0
Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 527,943		$ 457,803
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	4,271		9,166
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,216		180
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | 1 - 4 Family Residential
Financing Receivable, Recorded Investment [Line Items]
Total Loans	49,214		56,043
Real Estate | 1 - 4 Family Residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	49,214		56,043
Real Estate | 1 - 4 Family Residential | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | 1 - 4 Family Residential | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | 1 - 4 Family Residential | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Multifamily
Financing Receivable, Recorded Investment [Line Items]
Total Loans	136,799		136,537
Real Estate | Multifamily | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	136,799		136,537
Real Estate | Multifamily | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Multifamily | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Multifamily | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans	49,125		33,145
Real Estate | Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	49,125		33,145
Real Estate | Commercial Real Estate | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Commercial Real Estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Commercial Real Estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Construction
Financing Receivable, Recorded Investment [Line Items]
Total Loans	6,450		5,921
Real Estate | Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	6,450		5,921
Real Estate | Construction | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Construction | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Real Estate | Construction | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total Loans	247,931		191,828
Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	243,520		182,482
Commercial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	4,271		9,166
Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	140		180
Commercial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans	43,911		43,675
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	42,835		43,675
Consumer | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	1,076		0
Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 0		$ 0

Noninterest Income (Details)

Noninterest Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Noninterest income
Total non-interest income	$ 3,475	$ 1,800	$ 8,647	$ 5,854
Administrative service income
Noninterest income
Noninterest income	107	425	395	2,077
Merchant services income
Noninterest income
Noninterest income	3,124	1,214	7,585	3,284
ACH income
Noninterest income
Noninterest income	160	86	409	248
Other
Noninterest income
Noninterest income	$ 84	$ 75	$ 258	$ 245

Share-Based Payment Plans - (De

Share-Based Payment Plans - (Details)	9 Months Ended
	Sep. 30, 2019
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of awards	10 years
Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	6 years
Vesting percentage after years four, five and six	33.30%

Share-Based Payment Plans - Wei

Share-Based Payment Plans - Weighted average assumptions (Details)	9 Months Ended
	Sep. 30, 2019$ / shares
Share-Based Payment Plans
Risk-Free Interest Rate	2.54%
Expected Term	84 months
Expected Stock Price Volatility	21.00%
Dividend Yield	0.00%
Weighted Average Fair Value	$ 5.63

Share-Based Payment Plans - Sum

Share-Based Payment Plans - Summary of options activity (Details) - Stock Options - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Options
Outstanding at beginning of year			919,175
Granted	0	0	0	0
Exercised			(14,000)
Outstanding at period end	905,175		905,175
Vested or expected to vest	905,175		905,175
Exercisable at period end	691,504		691,504
Weighted Average Exercise Price
Outstanding at beginning of year			$ 13.39
Granted			0
Exercised			12.50
Outstanding at period end	$ 13.41		13.41
Vested or expected to vest	13.41		13.41
Exercisable at period end	$ 12.71		$ 12.71
Weighted Average Remaining Contractual Life (Years), outstanding at period end			6 years 1 month 13 days
Weighted Average Remaining Contractual Life (Years), vested or expected to vest			6 years 1 month 13 days
Weighted Average Remaining Contractual Life (Years), exercisable at period end			5 years 9 months 7 days

Share-Based Payment Plans - S_2

Share-Based Payment Plans - Summary of restricted stock activity (Details)	9 Months Ended
	Sep. 30, 2019$ / sharesshares
Weighted Average Grant Date Fair Value
Granted	$ 5.63
Restricted stock
Shares
Outstanding at beginning of year | shares	148,500
Vested or expected to vest | shares	0
Outstanding at period end | shares	148,500
Weighted Average Grant Date Fair Value
Outstanding at beginning of year	$ 22.56
Vested or expected to vest	0
Outstanding at period end	$ 22.56

Share-Based Payment Plans - Add

Share-Based Payment Plans - Additional disclosures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expense	$ 129	$ 563	$ 392	$ 880
Unrecognized compensation cost related to non-vested options	786,000		$ 786,000
Recognition period of nonvested stock options			1 year 8 months 23 days
Intrinsic value of outstanding options	10,300		$ 10,300
Intrinsic value of exercisable options	$ 8,400		8,400
Procces from options exercised			$ 50	$ 378
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options issued	0	0	0	0
Contractual term of awards			10 years
Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Stock Options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			5 years
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			6 years
Stock options expense	$ 140	$ 317	$ 417	$ 424
Unrecognized compensation cost related to non-vested options	$ 2,700		$ 2,700
Recognition period of nonvested stock options			4 years 11 months 1 day

Earnings per Share - Summary of

Earnings per Share - Summary of earnings per share computation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic
Net income available to common shareholders	$ 3,817	$ 1,682	$ 10,270	$ 5,861
Net income allocated to common shareholders	$ 3,817	$ 1,682	$ 10,270	$ 5,861
Weighted average common shares outstanding (in shares)	7,391,611	7,377,701	7,387,196	7,370,573
Basic earnings per common share (in dollars per share)	$ 0.52	$ 0.23	$ 1.39	$ 0.80
Diluted
Net income allocated to common shareholders for basic earnings per share	$ 3,817	$ 1,682	$ 10,270	$ 5,861
Weighted average shares outstanding for basic earnings per common share	7,391,611	7,377,701	7,387,196	7,370,573
Add: Dilutive effects of share based awards	406,701	408,762	385,284	352,156
Average shares and dilutive potential common shares	7,798,312	7,786,463	7,772,480	7,722,729
Diluted earnings per common share (in dollars per share)	$ 0.49	$ 0.22	$ 1.32	$ 0.76
Stock options and restricted shares not considered in computing diluted earnings per share because they were anti-dilutive	42,500	298,181	42,500	707,397

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Jan. 01, 2019
Leases
Renewal options	true
ROU lease assets	$ 2,800	$ 3,100
lease liability	$ 3,427	$ 3,600
Term of operating lease not yet commenced	7 years

Leases - Maturities of operatin

Leases - Maturities of operating lease (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Maturities of operating lease liabilites
2019	$ 150
2020	563
2021	605
2022	620
2023	636
Thereafter	1,946
Total lease payments	4,520
Less: payments for leases not yet commenced	660
Less: interest	433
Present value of operating lease liabilities	$ 3,427	$ 3,600

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Lease cost
Operating lease cost	$ 359
Cash paid for operating lease liability	$ 301
Weighted-average remaining lease term	7 years 1 month 10 days
Weighted-average discount rate	3.28%

Fair Value Measurements - Summa

Fair Value Measurements - Summary of assets and liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Available-for-sale securities
Securities available-for-sale, at fair value	$ 139,165	$ 145,698
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0		$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0		$ 0
Mortgage-backed securities – agency
Available-for-sale securities
Securities available-for-sale, at fair value	26,057	26,675
CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	113,108	119,023
Quoted Prices In Active Markets For Identical Assets (Level 1)
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Significant Other Observable Inputs (Level 2)
Available-for-sale securities
Securities available-for-sale, at fair value	139,165	145,698
Significant Unobservable Inputs (Level 3)
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring | Quoted Prices In Active Markets For Identical Assets (Level 1)
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring | Quoted Prices In Active Markets For Identical Assets (Level 1) | Mortgage-backed securities – agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring | Quoted Prices In Active Markets For Identical Assets (Level 1) | CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring | Significant Other Observable Inputs (Level 2)
Available-for-sale securities
Securities available-for-sale, at fair value	139,165	145,698
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities – agency
Available-for-sale securities
Securities available-for-sale, at fair value	26,057	26,675
Recurring | Significant Other Observable Inputs (Level 2) | CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	113,108	119,023
Recurring | Significant Unobservable Inputs (Level 3)
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities – agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3) | CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	0	0
Non-recurring
Available-for-sale securities
Assets	$ 0	$ 0

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial Assets:
Securities available for sale	$ 139,165	$ 145,698
Securities, restricted, at cost	2,665	2,583
Loans, net of allowance	527,208	462,472
Accrued interest receivable	3,159	3,855
Financial Liabilities:
Time deposits	19,959	20,417
Secured borrowings	87	89
Quoted Prices In Active Markets For Identical Assets (Level 1)
Financial Assets:
Cash and cash equivalents	669	659
Securities available for sale	0	0
Loans, net of allowance	0	0
Accrued interest receivable	0	0
Financial Liabilities:
Time deposits	0	0
Demand and other deposits	624,552	548,004
Secured borrowings	0	0
Accrued interest payable	0	0
Significant Other Observable Inputs (Level 2)
Financial Assets:
Cash and cash equivalents	61,007	29,903
Securities available for sale	139,165	145,698
Loans, net of allowance	0	0
Accrued interest receivable	386	368
Financial Liabilities:
Time deposits	19,946	20,377
Demand and other deposits	0	0
Secured borrowings	87	89
Accrued interest payable	11	15
Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	0	0
Securities available for sale	0	0
Loans, net of allowance	531,031	464,144
Accrued interest receivable	2,773	3,487
Financial Liabilities:
Time deposits	0	0
Demand and other deposits	0	0
Secured borrowings	0	0
Accrued interest payable	0	0
Carrying Value
Financial Assets:
Cash and cash equivalents	61,676	30,562
Securities available for sale	139,165	145,698
Securities, restricted, at cost	2,665	2,583
Loans, net of allowance	527,208	462,472
Accrued interest receivable	3,159	3,855
Financial Liabilities:
Time deposits	19,959	20,417
Demand and other deposits	624,552	548,004
Secured borrowings	87	89
Accrued interest payable	11	15
Fair Value
Financial Assets:
Cash and cash equivalents	61,676	30,562
Securities available for sale	139,165	145,698
Loans, net of allowance	531,031	464,144
Accrued interest receivable	3,159	3,855
Financial Liabilities:
Time deposits	19,946	20,377
Demand and other deposits	624,552	548,004
Secured borrowings	87	89
Accrued interest payable	$ 11	$ 15

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive (Loss) Income - Summary of changes in accumulated other comprehensive (loss) income by component, net of tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Unrealized Gains on Available for Sale Securities
Beginning balance	$ (80)	$ (3,257)	$ (2,614)	$ (1,390)
Other comprehensive (loss) income before reclassifications	466	(564)	3,000	(2,431)
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Net current period other comprehensive (loss) income	466	(564)	3,000	(2,431)
Ending balance	386	(3,821)	386	(3,821)
Reclassifications	$ 0	$ 0	$ 0	$ 0