Esquire Financial (ESQ) 10-Q 8 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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		7,669,440
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
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	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 70,379	$ 61,806
Securities available-for-sale, at fair value	138,125	146,419
Securities, restricted, at cost	2,665	2,665
Loans	590,397	565,369
Less: allowance for loan losses	(8,878)	(6,989)
Loans, net	581,519	558,380
Premises and equipment, net	2,913	2,835
Accrued interest receivable	3,309	3,242
Other assets	22,570	22,661
Total assets	821,480	798,008
Deposits:
Demand	260,994	201,837
Savings, NOW and money market	417,144	459,037
Time	19,692	19,746
Total deposits	697,830	680,620
Secured borrowings	85	86
Accrued expenses and other liabilities	8,680	6,240
Total liabilities	706,595	686,946
Commitments and Contingencies
Stockholders' equity:
Preferred stock, par value $0.01; authorized 2,000,000 shares; no shares issued and outstanding at March 31, 2020 and December 31, 2019
Common stock, par value $0.01; authorized 15,000,000 shares; 7,697,146 and 7,652,170 shares issued, respectively; and 7,669,440 and 7,652,170 shares outstanding, respectively	77	77
Additional paid-in capital	90,360	89,682
Retained earnings (deficit)	23,514	20,917
Accumulated other comprehensive loss	1,419	386
Treasury stock at cost, 27,706 and 0 shares, respectively	(485)
Total stockholders' equity	114,885	111,062
Total liabilities and stockholders' equity	$ 821,480	$ 798,008

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
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	7,697,146	7,652,170
Common stock, shares outstanding	7,669,440	7,652,170
Treasury stock, shares	27,706	0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest income:
Loans	$ 8,441	$ 7,192
Securities	886	1,065
Interest earning deposits and other	246	226
Total interest income	9,573	8,483
Interest expense:
Savings, NOW and money market deposits	297	429
Time deposits	96	125
Borrowings	1	1
Total interest expense	394	555
Net interest income	9,179	7,928
Provision for loan losses	1,900	425
Net interest income after provision for loan losses	7,279	7,503
Non-interest income:
Total non-interest income	3,121	2,081
Non-interest expense:
Employee compensation and benefits	3,978	3,436
Occupancy and equipment, net	546	439
Professional and consulting services	847	494
FDIC and regulatory assessments	91	86
Advertising and marketing	104	68
Travel and business relations	127	112
Data processing	729	506
Other operating expenses	444	340
Total non-interest expense	6,866	5,481
Net income before income taxes	3,534	4,103
Income tax expense	937	1,118
Net income	$ 2,597	$ 2,985
Earnings per share
Basic (in dollars per share)	$ 0.35	$ 0.40
Diluted (in dollars per share)	$ 0.33	$ 0.39
Merchant processing income
Non-interest income:
Noninterest income	$ 2,956	$ 1,814
Customer related fees and service charges
Non-interest income:
Noninterest income	$ 165	$ 267

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss)
Net income	$ 2,597	$ 2,985
Other comprehensive income:
Unrealized gains arising during the period on securities available for sale	1,445	1,963
Tax effect	(412)	(519)
Total other comprehensive income	1,033	1,444
Total comprehensive income	$ 3,630	$ 4,429

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income	Treasury stock	Total
Balance at Dec. 31, 2018	$ 75	$ 88,539	$ 6,774	$ (2,614)		$ 92,774
Balance (in shares) at Dec. 31, 2018	7,532,723
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			2,985			2,985
Other comprehensive income				1,444		1,444
Stock compensation expense		270				270
Balance at Mar. 31, 2019	$ 75	88,809	9,759	(1,170)		97,473
Balance (in shares) at Mar. 31, 2019	7,532,723
Balance at Dec. 31, 2019	$ 77	89,682	20,917	386		111,062
Balance (in shares) at Dec. 31, 2019	7,652,170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			2,597			2,597
Other comprehensive income				1,033		1,033
Exercise of stock options, net of repurchases		290				290
Exercise of stock options, net of repurchases (in shares)	44,976
Stock compensation expense		388				388
Purchase of common stock					$ (485)	(485)
Purchase of common stock (in shares)	(27,706)
Balance at Mar. 31, 2020	$ 77	$ 90,360	$ 23,514	$ 1,419	$ (485)	$ 114,885
Balance (in shares) at Mar. 31, 2020	7,669,440

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical)	3 Months Ended
	Mar. 31, 2020shares
Statement of Stockholders' Equity [Abstract]
Repurchase of shares	20,224

CONDENSED CONSOLIDATED STATEM_7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 2,597	$ 2,985
Adjustments to reconcile net income to net cash used in operating activities:
Provision for loan losses	1,900	425
Depreciation	139	107
Stock compensation expense	388	270
Net amortization:
Securities	192	95
Loans	79	177
Right of use asset	111	90
Changes in other assets and liabilities:
Accrued interest receivable	(67)	134
Other assets	111	(5,584)
Decrease in operating lease liability	(102)	(99)
Accrued expenses and other liabilities	1,999	1,966
Net cash provided by operating activities	7,347	566
Cash flows from investing activities:
Net change in loans	(25,118)	(22,100)
Purchases of securities available for sale		(9,918)
Principal repayments on securities available for sale	9,547	4,575
Purchases of premises and equipment	(217)	(333)
Net cash used in investing activities	(15,788)	(27,776)
Cash flows from financing activities:
Net increase in deposits	17,210	46,561
Decrease in secured borrowings	(1)
Exercise of stock options	290
Purchase of common stock	(485)
Net cash provided by financing activities	17,014	46,561
Increase in cash and cash equivalents	8,573	19,351
Cash and cash equivalents at beginning of period	61,806	30,562
Cash and cash equivalents at end of period	70,379	49,913
Cash paid during the period for:
Interest	395	555
Taxes	182	51
Noncash transactions:
Right of use asset obtained in exchange for lease liability	$ 543	$ 3,640

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
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, 2019 and 2018. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 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. Risks and Uncertainties On March 11, 2020, the World Health Organization declared COVID-19, the disease caused by the novel coronavirus, a pandemic as a result of the global spread of the coronavirus illness. In response to the outbreak, federal and state authorities in the U.S. introduced various measures to try to limit or slow the spread of the virus, including travel restrictions, nonessential business closures, stay-at-home orders, and strict social distancing. The full impact of COVID-19 is unknown and rapidly evolving. We have implemented a customer payment deferral program (principal and interest) to assist business borrowers and certain consumers that may be experiencing financial hardship due to COVID-19 related challenges. These loans will continue to accrue interest during the deferral period unless otherwise classified as nonperforming. Consistent with regulatory guidance and the provisions of the CARES Act, borrowers that were otherwise current on loan payments that were granted COVID-19 related financial hardship payment deferrals will continue to be reported as current loans during the deferral period and not evaluated as to whether they are troubled debt restructurings. There were no delinquent loans upon adoption of our payment deferral program. At this time, it is difficult to quantify the impact COVID-19 will have on the rest of 2020, but the Company currently expects it to negatively impact us more in the remaining portion of 2020 than experienced in the first quarter. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of an increase in the allowance for loan losses, valuation impairments on our investments or deferred tax assets. The Company has evaluated the impact of the effects of COVID-19 and determined that there were no material or systematic adverse impacts on the Company's first quarter 2020 Consolidated Statement of Financial Condition and Consolidated Statement of Income except for an increase in our general provision for loan losses and related allowance for loan losses. As of March 31, 2020, the Company had no loan modification agreements related to the COVID-19 crisis. 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 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 was originally 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 or before 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	3 Months Ended
	Mar. 31, 2020
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) March 31, 2020 Mortgage-backed securities – agency $ 23,697 $ 997 $ — $ 24,694 Collateralized mortgage obligations (CMO’s) – agency 112,443 1,049 (61) 113,431 Total available-for-sale $ 136,140 $ 2,046 $ (61) $ 138,125 December 31, 2019 Mortgage-backed securities – agency $ 24,603 $ 524 $ (90) $ 25,037 Collateralized mortgage obligations (CMO’s) – agency 121,276 451 (345) 121,382 Total available-for-sale $ 145,879 $ 975 $ (435) $ 146,419 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 2020 and 2019 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 ended March 31, 2020. At March 31, 2020, 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 $110.3 million. At December 31, 2019, securities having a fair value of $122.8 million were pledged to the FHLB for borrowing capacity totaling $116.7 million. At March 30, 2020 and December 31, 2019, the Company had no outstanding FHLB advances. At March 31, 2020, securities having a fair value of $23.3 million were pledged to the Federal Reserve Bank of New York (FRB) for borrowing capacity totaling $23.1 million. At December 31, 2019, securities having a fair value of $23.6 million were pledged to the FRB for borrowing capacity totaling $22.9 million. At March 31, 2020 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) March 31, 2020 Mortgage-backed securities – agency $ — $ — $ — $ — $ — $ — CMO’s – agency 7,375 (19) 5,302 (42) 12,677 (61) Total temporarily impaired securities $ 7,375 $ (19) $ 5,302 $ (42) $ 12,677 $ (61) December 31, 2019 Mortgage-backed securities - agency $ — $ — $ 9,529 $ (90) $ 9,529 $ (90) CMO's - Agency 20,639 (66) 22,295 (279) 42,934 (345) Total temporarily impaired securities $ 20,639 $ (66) $ 31,824 $ (369) $ 52,463 $ (435) 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 March 31, 2020, 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 March 31, 2020. No impairment charges were recorded for the three months ended March 31, 2020.

Loans

Loans	3 Months Ended
	Mar. 31, 2020
Loans
Loans	NOTE 3 — Loans The composition of loans by class is summarized as follows: March 31, 2020 December 31, 2019 (In thousands) 1 – 4 family residential $ 51,738 $ 48,140 Commercial 292,343 257,957 Multifamily 147,333 152,633 Commercial real estate 51,126 52,477 Construction - 6,450 Consumer 47,479 47,322 Total Loans 590,019 564,979 Deferred costs and unearned premiums, net 378 390 Allowance for loan losses (8,878) (6,989) Loans, net $ 581,519 $ 558,380 The following tables present the activity in the allowance for loan losses by class for the three months ending March 31, 2020 and 2019: 1-4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) March 31, 2020 Allowance for loan losses: Beginning balance $ 344 $ 4,048 $ 1,048 $ 560 $ 161 $ 828 $ 6,989 Provision (credit) for loan losses 153 1,038 393 257 (161) 220 1,900 Recoveries — — — — — — — Loans charged-off — — — — — (11) (11) Total ending allowance balance $ 497 $ 5,086 $ 1,441 $ 817 $ — $ 1,037 $ 8,878 March 31, 2019 Allowance for loan losses: Beginning balance $ 407 $ 3,110 $ 952 $ 357 $ 149 $ 654 $ 5,629 Provision (credit) for loan losses (27) 381 (3) 51 10 13 425 Recoveries — — — — — — — Loans charged-off — (5) — — — — (5) Total ending allowance balance $ 380 $ 3,486 $ 949 $ 408 $ 159 $ 667 $ 6,049 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 March 31, 2020 and December 31, 2019: 1‑4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) March 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 497 5,086 1,441 817 — 1,037 8,878 Total ending allowance balance $ 497 $ 5,086 $ 1,441 $ 817 $ — $ 1,037 $ 8,878 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ 750 $ 750 Loans collectively evaluated for impairment 51,738 292,343 147,333 51,126 — 46,729 589,269 Total ending loans balance $ 51,738 $ 292,343 $ 147,333 $ 51,126 $ — $ 47,479 $ 590,019 1‑4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) December 31, 2019 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 344 4,048 1,048 560 161 828 6,989 Total ending allowance balance $ 344 $ 4,048 $ 1,048 $ 560 $ 161 $ 828 $ 6,989 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ 1,476 $ 1,476 Loans collectively evaluated for impairment 48,140 257,957 152,633 52,477 6,450 45,846 563,503 Total ending loans balance $ 48,140 $ 257,957 $ 152,633 $ 52,477 $ 6,450 $ 47,322 $ 564,979 Recorded investment is not adjusted for accrued interest, deferred fees and costs, and unearned premiums and discounts due to immateriality. The following table provides an analysis of the impaired loans by segment as of March 31, 2020 and December 31, 2019. There was no related allowance recorded on any impaired loans as of March 31, 2020 and December 31, 2019: March 31, December 31, 2020 2019 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance (In thousands) 1-4 family residential $ — $ — $ — $ — Commercial — — — — Multifamily — — — — Commercial real estate — — — — Construction — — — — Consumer 750 750 1,476 1,476 Total $ 750 $ 750 $ 1,476 $ 1,476 The following table provides an analysis of average recorded investment and interest income recognized by segment on impaired loans during the three months ended March 31, 2020. There were no impaired loans as of March 31, 2019 or during the three months ended March 31, 2019: For the three months ended March 31, 2020 Average Interest Recorded Income Investment Recognized (In thousands) 1-4 family residential $ — $ — Commercial — — Multifamily — — Commercial real estate — — Construction — — Consumer 1,213 — Total $ 1,213 $ — Nonperforming Loans Nonperforming loans include loans 90 days past due and still accruing and nonaccrual loans. At March 31, 2020, the Company had $750 thousand in nonperforming consumer loans. At December 31, 2019, the Company had $1.5 million in nonperforming consumer loans. The following tables present the aging of the recorded investment in past due loans by class of loans as of March 31, 2020 and December 31, 2019: Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) March 31, 2020 1 – 4 family residential $ — $ — $ — $ — $ — $ 51,738 $ 51,738 Commercial — — — — — 292,343 292,343 Multifamily — — — — — 147,333 147,333 Commercial real estate — — — — — 51,126 51,126 Construction — — — — — — — Consumer 4 — — 750 754 46,725 47,479 Total $ 4 $ — $ — $ 750 $ 754 $ 589,265 $ 590,019 Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) December 31, 2019 1 – 4 family residential $ — $ — $ — $ — $ — $ 48,140 $ 48,140 Commercial — — — — — 257,957 257,957 Multifamily — 2,602 — — 2,602 150,031 152,633 Commercial real estate — — — — — 52,477 52,477 Construction — — — — — 6,450 6,450 Consumer — 6 — 1,476 1,482 45,840 47,322 Total $ — $ 2,608 $ — $ 1,476 $ 4,084 $ 560,895 $ 564,979 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) March 31, 2020 1 – 4 family residential $ 51,738 $ — $ — $ — Commercial 292,218 — 125 — Multifamily 147,333 — — — Commercial real estate 51,126 — — — Construction — — — — Consumer 43,314 3,415 750 — Total $ 585,729 $ 3,415 $ 875 $ — Pass Special Mention Substandard Doubtful (In thousands) December 31, 2019 1 – 4 family residential $ 48,140 $ — $ — $ — Commercial 257,832 — 125 — Multifamily 152,633 — — — Commercial real estate 52,477 — — — Construction 6,450 — — — Consumer 42,431 3,415 1,476 — Total $ 559,963 $ 3,415 $ 1,601 $ — 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 March 31, 2020 and December 31, 2019. Furthermore, there were no loans modified during the three months ended March 31, 2020 and 2019 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. Pledged Loans At March 31, 2020, loans totaling $39.6 million were pledged to the Federal Home Loan Bank of New York for borrowing capacity totaling $27.5 million. At December 31, 2019, loans totaling $39.8 million were pledged to the Federal Home Loan Bank of New York for borrowing capacity totaling $27.0 million.

Noninterest Income

Noninterest Income	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 (In thousands) Noninterest income Customer related fees and service charges Administrative service income $ 86 $ 173 Merchant processing income Merchant services income 2,784 1,719 ACH income 172 95 Other 79 94 Total noninterest income $ 3,121 $ 2,081 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	3 Months Ended
	Mar. 31, 2020
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 months ended March 31, 2020 and the three months ended March 31, 2019. The following table presents a summary of the activity related to options as of March 31, 2020: Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) March 31, 2020 Outstanding at beginning of year 916,425 $ 13.56 Granted — — Exercised (65,200) 12.50 Forfeited (1,000) 24.90 Outstanding at period end 850,225 $ 13.62 6.11 Vested or expected to vest 850,225 $ 13.62 6.11 Exercisable at period end 655,622 $ 13.10 5.93 The Company recognized compensation expense related to options of $132 thousand and $133 thousand for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020, unrecognized compensation cost related to nonvested options was approximately $600 thousand and is expected to be recognized over a weighted average period of 1.48 years. The intrinsic value for outstanding options and for options vested or expected to vest was $1.9 million and $1.6 million for exercisable options at March 31, 2020. Cash received from options exercised in the first quarter of 2020 totaled $290 thousand with an intrinsic value of $878 thousand. The excess tax benefit of options exercised was $77 thousand. The following table presents a summary of the activity related to restricted stock as of March 31, 2020: Weighted Average Grant Date Shares Fair Value March 31, 2020 Outstanding at beginning of year 259,000 $ 23.81 Granted — — Vested — — Outstanding at period end 259,000 $ 23.81 The Company recognized compensation expense related to restricted stock of $256 thousand and $137 thousand for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $5.1 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 5.11 years.

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2020
Earnings per Share
Earnings per Share	NOTE 6 — Earnings per Share The factors used in the earnings per share computation follow: For the three months ended March 31, 2020 2019 (Dollars in thousands, except per share data) Basic Net income $ 2,597 $ 2,985 Weighted average common shares outstanding 7,431,540 7,384,223 Basic earnings per share $ 0.35 $ 0.40 Diluted Net income $ 2,597 $ 2,985 Weighted average shares outstanding for basic earnings per share 7,431,540 7,384,223 Add: Dilutive effects of share based awards 344,981 356,503 Average shares and dilutive potential common shares 7,776,521 7,740,726 Diluted earnings per share $ 0.33 $ 0.39 Share-based awards totaling 163,250 and 163,000 shares of common stock were not considered in computing diluted earnings per common share for the three months ended March 31, 2020 and March 31, 2019, respectively, because they were anti-dilutive.

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases
Leases	NOTE 7 — Leases As of January 1, 2019, the Company recognizes the present value of its operating lease payments related to its office facilities and retail branch as operating lease assets and corresponding lease liabilities on the Consolidated Statements of Financial Condition. These 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. As these 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 in order to determine present value. Short-term lease payments, those leases with original terms of 12 months or less, are recognized in the Consolidated Statements of Income, 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 March 31, 2020, right of use (“ROU”) lease assets and related lease liabilities were $3.1 million and $3.8 million, respectively. Maturities of the Company’s operating lease liabilities at March 31, 2020 are as follows: Operating Lease Liabilities (In thousands) 2020 $ 449 2021 605 2022 620 2023 636 2024 652 Thereafter 1,295 Total operating lease payments $ 4,257 Less: interest 490 Present value of operating lease liabilities $ 3,767 As of and for the three months ended March, 31 2020 2019 (Dollars in thousands) Operating lease cost $ 140 $ 120 Cash paid for operating lease liability 132 128 Weighted-average remaining lease term 6.65 years 7.58 years Weighted-average discount rate 3.10 % 3.28 %

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
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) March 31, 2020 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 24,694 $ — CMO’s – agency — 113,431 — Total $ — $ 138,125 $ — December 31, 2019 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 25,037 $ — CMO’s – agency — 121,382 — Total $ — $ 146,419 $ — There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2020 and 2019. There were no assets measured on a nonrecurring basis as of March 31, 2020 and December 31, 2019. The following tables present the carrying amounts and fair values (represents exit price) of financial instruments at March 31, 2020 and December 31, 2019: Fair Value Measurement at March 31, 2020, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 70,379 $ 1,605 $ 68,774 $ — $ 70,379 Securities available-for-sale 138,125 — 138,125 — 138,125 Securities, restricted, at cost 2,665 N/A N/A N/A N/A Loans, net 581,519 — — 582,948 582,948 Accrued interest receivable 3,309 — 369 2,940 3,309 Financial Liabilities: Time deposits 19,692 — 19,833 — 19,833 Demand and other deposits 678,138 678,138 — — 678,138 Secured borrowings 85 — 85 — 85 Accrued interest payable 12 — 12 — 12 Fair Value Measurement at December 31, 2019, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 61,806 $ 669 $ 61,007 $ — $ 61,676 Securities available-for-sale 146,419 — 146,419 — 146,419 Securities, restricted, at cost 2,665 N/A N/A N/A N/A Loans, net 558,380 — — 560,859 560,859 Accrued interest receivable 3,242 — 386 2,856 3,242 Financial Liabilities: Time deposits 19,746 — 19,763 — 19,763 Demand and other deposits 660,874 660,874 — — 660,874 Secured borrowings 86 — 86 — 86 Accrued interest payable 12 — 12 — 12

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	NOTE 9 — Accumulated Other Comprehensive Income (Loss) The following presents changes in accumulated other comprehensive income (loss) by component, net of tax for the three months ending March 31, 2020 and 2019: For the Three Months Ended March 31, 2020 2019 (In thousands) Unrealized Gains (Losses) on Available-for-Sale Securities Beginning balance $ 386 $ (2,614) Other comprehensive income before reclassifications, net of tax 1,033 1,444 Amounts reclassified from accumulated other comprehensive income — — Net current period other comprehensive income 1,033 1,444 Ending balance $ 1,419 $ (1,170) There were no reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2020 and 2019.

Accounting Policy (Policies)

Accounting Policy (Policies)	3 Months Ended
	Mar. 31, 2020
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation	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, 2019 and 2018. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 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.
Risks and Uncertainties	Risks and Uncertainties On March 11, 2020, the World Health Organization declared COVID-19, the disease caused by the novel coronavirus, a pandemic as a result of the global spread of the coronavirus illness. In response to the outbreak, federal and state authorities in the U.S. introduced various measures to try to limit or slow the spread of the virus, including travel restrictions, nonessential business closures, stay-at-home orders, and strict social distancing. The full impact of COVID-19 is unknown and rapidly evolving. We have implemented a customer payment deferral program (principal and interest) to assist business borrowers and certain consumers that may be experiencing financial hardship due to COVID-19 related challenges. These loans will continue to accrue interest during the deferral period unless otherwise classified as nonperforming. Consistent with regulatory guidance and the provisions of the CARES Act, borrowers that were otherwise current on loan payments that were granted COVID-19 related financial hardship payment deferrals will continue to be reported as current loans during the deferral period and not evaluated as to whether they are troubled debt restructurings. There were no delinquent loans upon adoption of our payment deferral program. At this time, it is difficult to quantify the impact COVID-19 will have on the rest of 2020, but the Company currently expects it to negatively impact us more in the remaining portion of 2020 than experienced in the first quarter. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of an increase in the allowance for loan losses, valuation impairments on our investments or deferred tax assets. The Company has evaluated the impact of the effects of COVID-19 and determined that there were no material or systematic adverse impacts on the Company's first quarter 2020 Consolidated Statement of Financial Condition and Consolidated Statement of Income except for an increase in our general provision for loan losses and related allowance for loan losses. As of March 31, 2020, the Company had no loan modification agreements related to the COVID-19 crisis.
Subsequent Events	Subsequent Events The Company has evaluated subsequent events for recognition and disclosure through the date of issuance.
Loss Contingencies	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	New Accounting Pronouncements 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 was originally 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 or before 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 (Tables)

Debt Securities (Tables)	3 Months Ended
	Mar. 31, 2020
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) March 31, 2020 Mortgage-backed securities – agency $ 23,697 $ 997 $ — $ 24,694 Collateralized mortgage obligations (CMO’s) – agency 112,443 1,049 (61) 113,431 Total available-for-sale $ 136,140 $ 2,046 $ (61) $ 138,125 December 31, 2019 Mortgage-backed securities – agency $ 24,603 $ 524 $ (90) $ 25,037 Collateralized mortgage obligations (CMO’s) – agency 121,276 451 (345) 121,382 Total available-for-sale $ 145,879 $ 975 $ (435) $ 146,419
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) March 31, 2020 Mortgage-backed securities – agency $ — $ — $ — $ — $ — $ — CMO’s – agency 7,375 (19) 5,302 (42) 12,677 (61) Total temporarily impaired securities $ 7,375 $ (19) $ 5,302 $ (42) $ 12,677 $ (61) December 31, 2019 Mortgage-backed securities - agency $ — $ — $ 9,529 $ (90) $ 9,529 $ (90) CMO's - Agency 20,639 (66) 22,295 (279) 42,934 (345) Total temporarily impaired securities $ 20,639 $ (66) $ 31,824 $ (369) $ 52,463 $ (435)

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2020
Loans
Schedule of composition of loans	March 31, 2020 December 31, 2019 (In thousands) 1 – 4 family residential $ 51,738 $ 48,140 Commercial 292,343 257,957 Multifamily 147,333 152,633 Commercial real estate 51,126 52,477 Construction - 6,450 Consumer 47,479 47,322 Total Loans 590,019 564,979 Deferred costs and unearned premiums, net 378 390 Allowance for loan losses (8,878) (6,989) Loans, net $ 581,519 $ 558,380
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 March 31, 2020 and 2019: 1-4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) March 31, 2020 Allowance for loan losses: Beginning balance $ 344 $ 4,048 $ 1,048 $ 560 $ 161 $ 828 $ 6,989 Provision (credit) for loan losses 153 1,038 393 257 (161) 220 1,900 Recoveries — — — — — — — Loans charged-off — — — — — (11) (11) Total ending allowance balance $ 497 $ 5,086 $ 1,441 $ 817 $ — $ 1,037 $ 8,878 March 31, 2019 Allowance for loan losses: Beginning balance $ 407 $ 3,110 $ 952 $ 357 $ 149 $ 654 $ 5,629 Provision (credit) for loan losses (27) 381 (3) 51 10 13 425 Recoveries — — — — — — — Loans charged-off — (5) — — — — (5) Total ending allowance balance $ 380 $ 3,486 $ 949 $ 408 $ 159 $ 667 $ 6,049 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 March 31, 2020 and December 31, 2019: 1‑4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) March 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 497 5,086 1,441 817 — 1,037 8,878 Total ending allowance balance $ 497 $ 5,086 $ 1,441 $ 817 $ — $ 1,037 $ 8,878 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ 750 $ 750 Loans collectively evaluated for impairment 51,738 292,343 147,333 51,126 — 46,729 589,269 Total ending loans balance $ 51,738 $ 292,343 $ 147,333 $ 51,126 $ — $ 47,479 $ 590,019 1‑4 Family Commercial Residential Commercial Multifamily Real Estate Construction Consumer Total (In thousands) December 31, 2019 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 344 4,048 1,048 560 161 828 6,989 Total ending allowance balance $ 344 $ 4,048 $ 1,048 $ 560 $ 161 $ 828 $ 6,989 Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ 1,476 $ 1,476 Loans collectively evaluated for impairment 48,140 257,957 152,633 52,477 6,450 45,846 563,503 Total ending loans balance $ 48,140 $ 257,957 $ 152,633 $ 52,477 $ 6,450 $ 47,322 $ 564,979
Schedule of impaired loans	March 31, December 31, 2020 2019 Unpaid Unpaid Recorded Principal Recorded Principal Investment Balance Investment Balance (In thousands) 1-4 family residential $ — $ — $ — $ — Commercial — — — — Multifamily — — — — Commercial real estate — — — — Construction — — — — Consumer 750 750 1,476 1,476 Total $ 750 $ 750 $ 1,476 $ 1,476 The following table provides an analysis of average recorded investment and interest income recognized by segment on impaired loans during the three months ended March 31, 2020. There were no impaired loans as of March 31, 2019 or during the three months ended March 31, 2019: For the three months ended March 31, 2020 Average Interest Recorded Income Investment Recognized (In thousands) 1-4 family residential $ — $ — Commercial — — Multifamily — — Commercial real estate — — Construction — — Consumer 1,213 — Total $ 1,213 $ —
Schedule of aging of recorded investment in past due loans	Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) March 31, 2020 1 – 4 family residential $ — $ — $ — $ — $ — $ 51,738 $ 51,738 Commercial — — — — — 292,343 292,343 Multifamily — — — — — 147,333 147,333 Commercial real estate — — — — — 51,126 51,126 Construction — — — — — — — Consumer 4 — — 750 754 46,725 47,479 Total $ 4 $ — $ — $ 750 $ 754 $ 589,265 $ 590,019 Total Past 30-59 60-89 Greater than Due & Days Days 90 Days Nonaccrual Nonaccrual Loans Not Past Due Past Due Past Due Loans Loans Past Due Total (In thousands) December 31, 2019 1 – 4 family residential $ — $ — $ — $ — $ — $ 48,140 $ 48,140 Commercial — — — — — 257,957 257,957 Multifamily — 2,602 — — 2,602 150,031 152,633 Commercial real estate — — — — — 52,477 52,477 Construction — — — — — 6,450 6,450 Consumer — 6 — 1,476 1,482 45,840 47,322 Total $ — $ 2,608 $ — $ 1,476 $ 4,084 $ 560,895 $ 564,979
Schedule of risk category of loans	Pass Special Mention Substandard Doubtful (In thousands) March 31, 2020 1 – 4 family residential $ 51,738 $ — $ — $ — Commercial 292,218 — 125 — Multifamily 147,333 — — — Commercial real estate 51,126 — — — Construction — — — — Consumer 43,314 3,415 750 — Total $ 585,729 $ 3,415 $ 875 $ — Pass Special Mention Substandard Doubtful (In thousands) December 31, 2019 1 – 4 family residential $ 48,140 $ — $ — $ — Commercial 257,832 — 125 — Multifamily 152,633 — — — Commercial real estate 52,477 — — — Construction 6,450 — — — Consumer 42,431 3,415 1,476 — Total $ 559,963 $ 3,415 $ 1,601 $ —

Noninterest Income (Tables)

Noninterest Income (Tables)	3 Months Ended
	Mar. 31, 2020
Noninterest Income.
Schedule of Consolidated of Income as components of noninterest income	For the Three Months Ended March 31, 2020 2019 (In thousands) Noninterest income Customer related fees and service charges Administrative service income $ 86 $ 173 Merchant processing income Merchant services income 2,784 1,719 ACH income 172 95 Other 79 94 Total noninterest income $ 3,121 $ 2,081

Share-Based Payment Plans (Tabl

Share-Based Payment Plans (Tables)	3 Months Ended
	Mar. 31, 2020
Share-Based Payment Plans
Schedule of option activity	Weighted Weighted Average Average Remaining Exercise Contractual Options Price Life (Years) March 31, 2020 Outstanding at beginning of year 916,425 $ 13.56 Granted — — Exercised (65,200) 12.50 Forfeited (1,000) 24.90 Outstanding at period end 850,225 $ 13.62 6.11 Vested or expected to vest 850,225 $ 13.62 6.11 Exercisable at period end 655,622 $ 13.10 5.93
Schedule of activity related to restricted stock	Weighted Average Grant Date Shares Fair Value March 31, 2020 Outstanding at beginning of year 259,000 $ 23.81 Granted — — Vested — — Outstanding at period end 259,000 $ 23.81

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings per Share
Schedule of earnings per share	For the three months ended March 31, 2020 2019 (Dollars in thousands, except per share data) Basic Net income $ 2,597 $ 2,985 Weighted average common shares outstanding 7,431,540 7,384,223 Basic earnings per share $ 0.35 $ 0.40 Diluted Net income $ 2,597 $ 2,985 Weighted average shares outstanding for basic earnings per share 7,431,540 7,384,223 Add: Dilutive effects of share based awards 344,981 356,503 Average shares and dilutive potential common shares 7,776,521 7,740,726 Diluted earnings per share $ 0.33 $ 0.39

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases
Schedule of maturities of operating lease liabilities	Operating Lease Liabilities (In thousands) 2020 $ 449 2021 605 2022 620 2023 636 2024 652 Thereafter 1,295 Total operating lease payments $ 4,257 Less: interest 490 Present value of operating lease liabilities $ 3,767
Schedule of lease cost	As of and for the three months ended March, 31 2020 2019 (Dollars in thousands) Operating lease cost $ 140 $ 120 Cash paid for operating lease liability 132 128 Weighted-average remaining lease term 6.65 years 7.58 years Weighted-average discount rate 3.10 % 3.28 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
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) March 31, 2020 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 24,694 $ — CMO’s – agency — 113,431 — Total $ — $ 138,125 $ — December 31, 2019 Assets Available-for-sale securities Mortgage-backed securities – agency $ — $ 25,037 $ — CMO’s – agency — 121,382 — Total $ — $ 146,419 $ —
Schedule of carrying amounts and fair values of financial instruments	Fair Value Measurement at March 31, 2020, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 70,379 $ 1,605 $ 68,774 $ — $ 70,379 Securities available-for-sale 138,125 — 138,125 — 138,125 Securities, restricted, at cost 2,665 N/A N/A N/A N/A Loans, net 581,519 — — 582,948 582,948 Accrued interest receivable 3,309 — 369 2,940 3,309 Financial Liabilities: Time deposits 19,692 — 19,833 — 19,833 Demand and other deposits 678,138 678,138 — — 678,138 Secured borrowings 85 — 85 — 85 Accrued interest payable 12 — 12 — 12 Fair Value Measurement at December 31, 2019, Using: Carrying Value (Level 1) (Level 2) (Level 3) Total (In thousands) Financial Assets: Cash and cash equivalents $ 61,806 $ 669 $ 61,007 $ — $ 61,676 Securities available-for-sale 146,419 — 146,419 — 146,419 Securities, restricted, at cost 2,665 N/A N/A N/A N/A Loans, net 558,380 — — 560,859 560,859 Accrued interest receivable 3,242 — 386 2,856 3,242 Financial Liabilities: Time deposits 19,746 — 19,763 — 19,763 Demand and other deposits 660,874 660,874 — — 660,874 Secured borrowings 86 — 86 — 86 Accrued interest payable 12 — 12 — 12

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss)
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax	For the Three Months Ended March 31, 2020 2019 (In thousands) Unrealized Gains (Losses) on Available-for-Sale Securities Beginning balance $ 386 $ (2,614) Other comprehensive income before reclassifications, net of tax 1,033 1,444 Amounts reclassified from accumulated other comprehensive income — — Net current period other comprehensive income 1,033 1,444 Ending balance $ 1,419 $ (1,170)

Basis of Presentation - New Acc

Basis of Presentation - New Accounting Pronouncements - Narrative (Details) $ in Thousands	Mar. 31, 2020USD ($)
Basis of Presentation and Summary of Significant Accounting Policies
ROU lease assets	$ 3,100
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets
lease liability	$ 3,767
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued Liabilities and Other Liabilities

Securities - Summary of reconci

Securities - Summary of reconciliation of amortized cost to fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 136,140	$ 145,879
Gross Unrealized Gains	2,046	975
Gross Unrealized Losses	(61)	(435)
Fair Value	138,125	146,419
Mortgage-backed securities – agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	23,697	24,603
Gross Unrealized Gains	997	524
Gross Unrealized Losses		(90)
Fair Value	24,694	25,037
CMO's - agency
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	112,443	121,276
Gross Unrealized Gains	1,049	451
Gross Unrealized Losses	(61)	(345)
Fair Value	$ 113,431	$ 121,382

Securities - Summary of amortiz

Securities - Summary of amortized cost and fair value of debt securities by contractual maturity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Sales or calls of securities	$ 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	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	$ 7,375	$ 20,639
Gross Unrealized Losses, Less than 12 Months	(19)	(66)
Fair Value, 12 Months or Longer	5,302	31,824
Gross Unrealized Losses, 12 Months or Longer	(42)	(369)
Fair Value, Total	12,677	52,463
Gross Unrealized Losses, Total	(61)	(435)
Mortgage-backed securities – agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, 12 Months or Longer		9,529
Gross Unrealized Losses, 12 Months or Longer		(90)
Fair Value, Total		9,529
Gross Unrealized Losses, Total		(90)
CMO's - agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	7,375	20,639
Gross Unrealized Losses, Less than 12 Months	(19)	(66)
Fair Value, 12 Months or Longer	5,302	22,295
Gross Unrealized Losses, 12 Months or Longer	(42)	(279)
Fair Value, Total	12,677	42,934
Gross Unrealized Losses, Total	$ (61)	$ (345)

Securities - Additional disclos

Securities - Additional disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	$ 2,665	$ 2,665
Impairment charges	0
Federal Reserve Bank of New York (FRB)
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	23,300	23,600
Securities pledged borrowed amount	23,100	22,900
Federal Home Loan Bank of New York (FHLB)
Debt Securities, Available-for-sale [Line Items]
Fair value of pledged securities	114,800	$ 122,800
Securities pledged borrowed amount	$ 110,300

Loans - Summary of loan composi

Loans - Summary of loan composition (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	$ 590,019	$ 564,979
Deferred costs and unearned premiums, net	378	390
Allowance for loan losses	(8,878)	(6,989)	$ (6,049)	$ (5,629)
Net loans	581,519	558,380
Real Estate | 1 - 4 Family Residential
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	51,738	48,140
Allowance for loan losses	(497)	(344)	(380)	(407)
Real Estate | Multifamily
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	147,333	152,633
Allowance for loan losses	(1,441)	(1,048)	(949)	(952)
Real Estate | Commercial Real Estate
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	51,126	52,477
Allowance for loan losses	(817)	(560)	(408)	(357)
Real Estate | Construction
Loans and Leases Receivable Disclosure [Line Items]
Total Loans		6,450
Allowance for loan losses		(161)	(159)	(149)
Commercial
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	292,343	257,957
Allowance for loan losses	(5,086)	(4,048)	(3,486)	(3,110)
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	47,479	47,322
Allowance for loan losses	$ (1,037)	$ (828)	$ (667)	$ (654)

Loans - Summary of activity in

Loans - Summary of activity in allowance for loan losses by class (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Allowance for loan losses:
Beginning balance	$ 6,989	$ 5,629
Provision (credit) for loan losses	1,900	425
Recoveries	0	0
Loans charged-off	(11)	(5)
Total ending allowance balance	8,878	6,049
Real Estate | 1 - 4 Family Residential
Allowance for loan losses:
Beginning balance	344	407
Provision (credit) for loan losses	153	(27)
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	497	380
Real Estate | Multifamily
Allowance for loan losses:
Beginning balance	1,048	952
Provision (credit) for loan losses	393	(3)
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	1,441	949
Real Estate | Commercial Real Estate
Allowance for loan losses:
Beginning balance	560	357
Provision (credit) for loan losses	257	51
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance	817	408
Real Estate | Construction
Allowance for loan losses:
Beginning balance	161	149
Provision (credit) for loan losses	(161)	10
Recoveries	0	0
Loans charged-off	0	0
Total ending allowance balance		159
Commercial
Allowance for loan losses:
Beginning balance	4,048	3,110
Provision (credit) for loan losses	1,038	381
Recoveries	0	0
Loans charged-off	0	(5)
Total ending allowance balance	5,086	3,486
Consumer
Allowance for loan losses:
Beginning balance	828	654
Provision (credit) for loan losses	220	13
Recoveries	0	0
Loans charged-off	(11)	0
Total ending allowance balance	$ 1,037	$ 667

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	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 0	$ 0
Collectively evaluated for impairment	8,878	6,989
Total ending allowance balance	8,878	6,989	$ 6,049	$ 5,629
Loans:
Loans individually evaluated for impairment	750	1,476
Loans collectively evaluated for impairment	589,269	563,503
Total ending loans balance	590,019	564,979
Real Estate | 1 - 4 Family Residential
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	497	344
Total ending allowance balance	497	344	380	407
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	51,738	48,140
Total ending loans balance	51,738	48,140
Real Estate | Multifamily
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,441	1,048
Total ending allowance balance	1,441	1,048	949	952
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	147,333	152,633
Total ending loans balance	147,333	152,633
Real Estate | Commercial Real Estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	817	560
Total ending allowance balance	817	560	408	357
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	51,126	52,477
Total ending loans balance	51,126	52,477
Real Estate | Construction
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment		161
Total ending allowance balance		161	159	149
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment		6,450
Total ending loans balance		6,450
Commercial
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	5,086	4,048
Total ending allowance balance	5,086	4,048	3,486	3,110
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	292,343	257,957
Total ending loans balance	292,343	257,957
Consumer
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,037	828
Total ending allowance balance	1,037	828	$ 667	$ 654
Loans:
Loans individually evaluated for impairment	750	1,476
Loans collectively evaluated for impairment	46,729	45,846
Total ending loans balance	$ 47,479	$ 47,322

Loans - Summary of impaired loa

Loans - Summary of impaired loans by segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 750	$ 1,476
Unpaid Principal Balance	750	1,476	$ 0
Average Recorded Investment	1,213
Non-performing loans	750	1,476
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment	750	1,476
Unpaid Principal Balance	750	1,476
Average Recorded Investment	1,213
Non-performing loans	750,000	1,500
Consumer
Financing Receivable, Impaired [Line Items]
Non-performing loans	$ 750	$ 1,476

Loans - Summary of loans by pas

Loans - Summary of loans by past due status (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual Loans	$ 750	$ 1,476
Total Past Due	754	4,084
Loans Not Past Due	589,265	560,895
Total Loans	590,019	564,979
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4	0
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	2,608
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	51,738	48,140
Total Loans	51,738	48,140
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	2,602
Loans Not Past Due	147,333	150,031
Total Loans	147,333	152,633
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	2,602
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	51,126	52,477
Total Loans	51,126	52,477
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
Total Loans		6,450
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	292,343	257,957
Total Loans	292,343	257,957
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]
Nonaccrual Loans	750	1,476
Total Past Due	754	1,482
Loans Not Past Due	46,725	45,840
Total Loans	47,479	47,322
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4	0
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	6
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	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)item	Mar. 31, 2019item	Dec. 31, 2019USD ($)item
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 590,019		$ 564,979
Number of loans identified as troubled debt restructuring | item	0		0
Number of loans modified | item	0	0
Federal Home Loan Bank Advances
Financing Receivable, Recorded Investment [Line Items]
Maximum borrowing capacity	$ 39,800		$ 27,000
Federal Reserve Bank of New York (FRB)
Financing Receivable, Recorded Investment [Line Items]
Loans pledged	39,600		27,500
Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	585,729		559,963
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,415		3,415
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	875		1,601
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	51,738		48,140
Real Estate | 1 - 4 Family Residential | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	51,738		48,140
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	147,333		152,633
Real Estate | Multifamily | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	147,333		152,633
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	51,126		52,477
Real Estate | Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	51,126		52,477
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
Real Estate | Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans			6,450
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	292,343		257,957
Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	292,218		257,832
Commercial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	125		125
Commercial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	0		0
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total Loans	47,479		47,322
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total Loans	43,314		42,431
Consumer | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans	3,415		3,415
Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans	750		1,476
Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 0		$ 0

Noninterest Income (Details)

Noninterest Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Noninterest income
Total non-interest income	$ 3,121	$ 2,081
Administrative service income
Noninterest income
Noninterest income	86	173
Merchant services income
Noninterest income
Noninterest income	2,784	1,719
ACH income
Noninterest income
Noninterest income	172	95
Other
Noninterest income
Noninterest income	$ 79	$ 94

Share-Based Payment Plans - (De

Share-Based Payment Plans - (Details)	3 Months Ended
	Mar. 31, 2020
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 - Sum

Share-Based Payment Plans - Summary of options activity (Details) - Stock Options - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Options
Outstanding at beginning of year	916,425
Granted	0	0
Exercised	(65,200)
Forfeited	(1,000)
Outstanding at period end	850,225
Vested or expected to vest	850,225
Exercisable at period end	655,622
Weighted Average Exercise Price
Outstanding at beginning of year	$ 13.56
Granted	0
Exercised	12.50
Forfeited	24.90
Outstanding at period end	13.62
Vested or expected to vest	13.62
Exercisable at period end	$ 13.10
Weighted Average Remaining Contractual Life (Years), outstanding at period end	6 years 1 month 10 days
Weighted Average Remaining Contractual Life (Years), vested or expected to vest	6 years 1 month 10 days
Weighted Average Remaining Contractual Life (Years), exercisable at period end	5 years 11 months 5 days

Share-Based Payment Plans - S_2

Share-Based Payment Plans - Summary of restricted stock activity (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Shares
Outstanding at beginning of year | shares	259,000
Vested or expected to vest | shares	0
Outstanding at period end | shares	259,000
Weighted Average Grant Date Fair Value
Outstanding at beginning of year | $ / shares	$ 23.81
Vested or expected to vest | $ / shares	0
Outstanding at period end | $ / shares	$ 23.81

Share-Based Payment Plans - Add

Share-Based Payment Plans - Additional disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expense	$ 132	$ 133
Unrecognized compensation cost related to non-vested options	$ 600
Recognition period of nonvested stock options	1 year 5 months 23 days
Intrinsic value of outstanding options	$ 1,900
Intrinsic value of exercisable options	1,600
Proceeds from options exercised	290
Intrinsic value of options exercised	878
Tax benefit of options exercised	$ (77)
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options issued	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	$ 256	$ 137
Unrecognized compensation cost related to non-vested options	$ 5,100
Recognition period of nonvested stock options	5 years 1 month 10 days

Earnings per Share - Summary of

Earnings per Share - Summary of earnings per share computation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic
Net income	$ 2,597	$ 2,985
Weighted average common shares outstanding (in shares)	7,431,540	7,384,223
Basic earnings per share (in dollars per share)	$ 0.35	$ 0.40
Diluted
Weighted average shares outstanding for basic earnings per share	7,431,540	7,384,223
Add: Dilutive effects of share based awards	344,981	356,503
Average shares and dilutive potential common shares	7,776,521	7,740,726
Diluted earnings per share (in dollars per share)	$ 0.33	$ 0.39
Stock options and restricted shares not considered in computing diluted earnings per share because they were anti-dilutive	163,250	163,000

Leases (Details)

Leases (Details) $ in Thousands	Mar. 31, 2020USD ($)
Leases
ROU lease assets	$ 3,100
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets
lease liability	$ 3,767
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued Liabilities and Other Liabilities

Leases - Maturities of operatin

Leases - Maturities of operating lease (Details) $ in Thousands	Mar. 31, 2020USD ($)
Maturities of operating lease liabilities
2020	$ 449
2021	605
2022	620
2023	636
2024	652
Thereafter	1,295
Total lease payments	4,257
Less: interest	490
Present value of operating lease liabilities	$ 3,767

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lease cost
Operating lease cost	$ 140	$ 120
Cash paid for operating lease liability	$ 132	$ 128
Weighted-average remaining lease term	6 years 7 months 24 days	7 years 6 months 29 days
Weighted-average discount rate	3.10%	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	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Available-for-sale securities
Securities available-for-sale, at fair value	$ 138,125	$ 146,419
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	24,694	25,037
CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	113,431	121,382
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	138,125	146,419
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	138,125	146,419
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities – agency
Available-for-sale securities
Securities available-for-sale, at fair value	24,694	25,037
Recurring | Significant Other Observable Inputs (Level 2) | CMO's - agency
Available-for-sale securities
Securities available-for-sale, at fair value	113,431	121,382
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	Mar. 31, 2020	Dec. 31, 2019
Financial Assets:
Securities available for sale	$ 138,125	$ 146,419
Securities, restricted, at cost	2,665	2,665
Loans, net of allowance	581,519	558,380
Accrued interest receivable	3,309	3,242
Financial Liabilities:
Time deposits	19,692	19,746
Secured borrowings	85	86
Quoted Prices In Active Markets For Identical Assets (Level 1)
Financial Assets:
Cash and cash equivalents	1,605	669
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	678,138	660,874
Secured borrowings	0	0
Accrued interest payable	0	0
Significant Other Observable Inputs (Level 2)
Financial Assets:
Cash and cash equivalents	68,774	61,007
Securities available for sale	138,125	146,419
Loans, net of allowance	0	0
Accrued interest receivable	369	386
Financial Liabilities:
Time deposits	19,833	19,763
Demand and other deposits	0	0
Secured borrowings	85	86
Accrued interest payable	12	12
Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	0	0
Securities available for sale	0	0
Loans, net of allowance	582,948	560,859
Accrued interest receivable	2,940	2,856
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	70,379	61,806
Securities available for sale	138,125	146,419
Securities, restricted, at cost	2,665	2,665
Loans, net of allowance	581,519	558,380
Accrued interest receivable	3,309	3,242
Financial Liabilities:
Time deposits	19,692	19,746
Demand and other deposits	678,138	660,874
Secured borrowings	85	86
Accrued interest payable	12	12
Fair Value
Financial Assets:
Cash and cash equivalents	70,379	61,676
Securities available for sale	138,125	146,419
Loans, net of allowance	582,948	560,859
Accrued interest receivable	3,309	3,242
Financial Liabilities:
Time deposits	19,833	19,763
Demand and other deposits	678,138	660,874
Secured borrowings	85	86
Accrued interest payable	$ 12	$ 12

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Summary of changes in accumulated other comprehensive income (loss) by component, net of tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Unrealized Gains (Losses) on Available-for-Sale Securities
Beginning balance	$ 386	$ (2,614)
Other comprehensive (loss) income before reclassifications	1,033	1,444
Amounts reclassified from accumulated other comprehensive income	0	0
Net current period other comprehensive income	1,033	1,444
Ending balance	1,419	(1,170)
Reclassifications	$ 0	$ 0