Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-41068 | |
Entity Registrant Name | BAYFIRST FINANCIAL CORP. | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-3665079 | |
Entity Address, Address Line One | 700 Central Avenue | |
Entity Address, City or Town | St. Petersburg | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33701 | |
City Area Code | 727 | |
Local Phone Number | 440-6848 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | BAFN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,029,139 | |
Entity Central Index Key | 0001649739 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 2,944 | $ 2,869 |
Interest-bearing deposits in banks | 64,992 | 106,858 |
Cash and cash equivalents | 67,936 | 109,727 |
Time deposits in banks | 4,881 | 2,381 |
Investment securities available for sale | 45,283 | 30,893 |
Investment securities held to maturity | 5,016 | 2 |
Restricted equity securities, at cost | 3,274 | 2,827 |
Residential loans held for sale | 74,708 | 114,131 |
SBA loans held for investment, at fair value | 52,209 | 9,614 |
Loans held for investment, at amortized cost net of allowance for loan losses of $9,564 and $13,452 | 579,964 | 560,882 |
Accrued interest receivable | 3,190 | 3,564 |
Premises and equipment, net | 31,368 | 29,671 |
Loan servicing rights | 7,952 | 6,619 |
Deferred income tax asset | 1,345 | 454 |
Right-of-use operating lease assets | 3,547 | 4,543 |
Bank owned life insurance | 24,850 | 24,547 |
Other assets | 15,854 | 15,780 |
Total assets | 921,377 | 917,095 |
Liabilities: | ||
Noninterest-bearing deposits | 103,613 | 83,638 |
Interest-bearing transaction accounts | 195,386 | 163,495 |
Savings and money market deposits | 432,369 | 423,864 |
Time deposits | 34,038 | 50,688 |
Total deposits | 765,406 | 721,685 |
FHLB and FRB borrowings | 40,000 | 0 |
Subordinated debentures | 5,989 | 5,985 |
Notes payable | 3,072 | 3,299 |
PPP Liquidity Facility | 0 | 69,654 |
Accrued interest payable | 31 | 326 |
Operating lease liabilities | 4,014 | 4,747 |
Accrued expenses and other liabilities | 9,570 | 15,109 |
Total liabilities | 828,082 | 820,805 |
Shareholders’ equity: | ||
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,019,023 and 3,981,117 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 52,432 | 51,496 |
Accumulated other comprehensive loss, net | (2,574) | (420) |
Unearned compensation | (467) | (17) |
Retained earnings | 34,620 | 35,947 |
Total shareholders’ equity | 93,295 | 96,290 |
Total liabilities and shareholders’ equity | 921,377 | 917,095 |
Government Guaranteed Loans | ||
ASSETS | ||
Government guaranteed loans held for sale | 0 | 1,460 |
Preferred Stock, Series A | ||
Shareholders’ equity: | ||
Preferred stock | 6,161 | 6,161 |
Preferred Stock, Series B | ||
Shareholders’ equity: | ||
Preferred stock | $ 3,123 | $ 3,123 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income: | ||||
Loans, including fees | $ 8,211 | $ 14,846 | $ 15,766 | $ 29,657 |
Interest-bearing deposits in banks and other | 415 | 151 | 600 | 232 |
Total interest income | 8,626 | 14,997 | 16,366 | 29,889 |
Interest expense: | ||||
Deposits | 1,060 | 1,194 | 2,277 | 2,514 |
Borrowings | 112 | 899 | 229 | 1,841 |
Total interest expense | 1,172 | 2,093 | 2,506 | 4,355 |
Net interest income | 7,454 | 12,904 | 13,860 | 25,534 |
Provision for loan losses | 250 | 0 | (2,150) | 2,000 |
Net interest income after provision for loan losses | 7,204 | 12,904 | 16,010 | 23,534 |
Noninterest income: | ||||
Residential loan fee income | 10,212 | 23,352 | 23,403 | 55,381 |
Loan servicing income, net | 438 | 325 | 899 | 1,029 |
Gain on sale of government guaranteed loans, net | 8,469 | 13,798 | ||
Service charges and fees | 322 | 364 | 604 | 586 |
Other noninterest income | 371 | 366 | 881 | 498 |
Total noninterest income | 17,899 | 38,212 | 36,767 | 71,371 |
Noninterest expense: | ||||
Salaries and benefits | 11,416 | 12,948 | 25,113 | 26,115 |
Bonus, commissions, and incentives | 4,995 | 9,218 | 9,601 | 21,091 |
Mortgage banking | 677 | 1,572 | 1,679 | 3,267 |
Occupancy and equipment | 1,382 | 1,297 | 2,803 | 2,629 |
Data processing | 1,367 | 2,593 | 2,834 | 3,862 |
Marketing and business development | 1,659 | 1,878 | 3,401 | 3,520 |
Professional services | 1,075 | 843 | 2,382 | 1,767 |
Loan origination and collection | 748 | 1,105 | 1,418 | 1,601 |
Employee recruiting and development | 474 | 1,008 | 1,345 | 1,622 |
Regulatory assessments | 120 | 100 | 189 | 202 |
Residential mortgage division restructuring expense | 630 | 0 | 630 | 0 |
Other noninterest expense | 1,133 | 1,106 | 1,928 | 1,713 |
Total noninterest expense | 25,676 | 33,668 | 53,323 | 67,389 |
Income (loss) before income tax expense (benefit) | (573) | 17,448 | (546) | 27,516 |
Income tax expense (benefit) | (291) | 4,432 | (277) | 6,989 |
Net income (loss) | (282) | 13,016 | (269) | 20,527 |
Less: Preferred stock dividends | 208 | 235 | 416 | 567 |
Net income available to (loss attributable to) common shareholders | $ (490) | $ 12,781 | $ (685) | $ 19,960 |
Basic earnings (loss) per common share (in USD per share) | $ (0.12) | $ 3.34 | $ (0.17) | $ 5.44 |
Dilutive earnings (loss) per common share (in USD per share) | $ (0.12) | $ 2.98 | $ (0.17) | $ 4.87 |
Government Guaranteed Loans | ||||
Noninterest income: | ||||
Gain on sale of government guaranteed loans, net | $ 3,848 | $ 13,798 | $ 8,469 | $ 13,798 |
SBA Loan | ||||
Noninterest income: | ||||
Gain on sale of government guaranteed loans, net | 3,848 | 0 | 8,469 | 0 |
SBA loan fair value gain | $ 2,708 | $ 7 | $ 2,511 | $ 79 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (282) | $ 13,016 | $ (269) | $ 20,527 |
Other comprehensive income (loss), net | ||||
Net unrealized (losses) on investment securities available for sale | (1,525) | (166) | (2,902) | (166) |
Deferred income tax benefit | 409 | 44 | 748 | 44 |
Other comprehensive loss, net | (1,116) | (122) | (2,154) | (122) |
Comprehensive income (loss) | $ (1,398) | $ 12,894 | $ (2,423) | $ 20,405 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock Preferred Stock, Series A | Preferred Stock Preferred Stock, Series B | Common Stock and Additional Paid-in Capital | Common Stock and Additional Paid-in Capital Common Stock | Accumulated Other Comprehensive Income (Loss) | Unearned Compensation | Retained Earnings | |||
Beginning balance (in shares) at Dec. 31, 2020 | 6,395 | 8,760 | 3,485,018 | [1] | ||||||||
Beginning balance at Dec. 31, 2020 | $ 71,069 | $ 6,161 | $ 8,516 | $ 43,043 | $ 0 | $ (41) | $ 13,390 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 20,527 | 20,527 | ||||||||||
Issuance of common stock under non-qualified stock purchase plan (in shares) | [1] | 27,186 | ||||||||||
Issuance of common stock under non-qualified stock purchase plan | $ 444 | $ 444 | ||||||||||
Issuance of common stock under dividend reinvestment plan (in shares) | 13,634 | 13,634 | [1] | |||||||||
Issuance of common stock under dividend reinvestment plan | $ 284 | $ 284 | ||||||||||
Issuance of stock during the period, net (in shares) | 740 | 35,426 | [1] | |||||||||
Issuance of stock during the period, net | 727 | $ 701 | $ 727 | $ 701 | ||||||||
Stock-based awards - common stock: Restricted stock expense, net of tax impact (in shares) | [1] | 2,031 | ||||||||||
Stock-based awards - common stock: Restricted stock expense, net of tax impact | 37 | $ 25 | 12 | |||||||||
Stock option expense | 217 | $ 217 | ||||||||||
Conversion of Series B preferred stock to common stock (in shares) | (4,920) | 304,119 | [1] | |||||||||
Conversion of Series B preferred stock to common stock | 0 | $ (4,787) | $ 4,787 | |||||||||
Other comprehensive loss, net | (122) | (122) | ||||||||||
Dividend declared on preferred stock | (567) | (567) | ||||||||||
Dividend declared on common stock | (504) | (504) | ||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 6,395 | 4,580 | 3,867,414 | [1] | ||||||||
Ending balance at Jun. 30, 2021 | 92,813 | $ 6,161 | $ 4,456 | $ 49,501 | (122) | (29) | 32,846 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | 6,395 | 8,760 | 3,485,018 | [1] | ||||||||
Beginning balance at Dec. 31, 2020 | $ 71,069 | $ 6,161 | $ 8,516 | $ 43,043 | 0 | (41) | 13,390 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of common stock under dividend reinvestment plan (in shares) | 17,971 | |||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 6,395 | 3,210 | 3,981,117 | [1] | ||||||||
Ending balance at Dec. 31, 2021 | $ 96,290 | $ 6,161 | $ 3,123 | $ 51,496 | (420) | (17) | 35,947 | |||||
Beginning balance (in shares) at Mar. 31, 2021 | 6,395 | 6,980 | 3,678,566 | [1] | ||||||||
Beginning balance at Mar. 31, 2021 | 79,421 | $ 6,161 | $ 6,791 | $ 46,168 | 0 | (35) | 20,336 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 13,016 | 13,016 | ||||||||||
Issuance of common stock under non-qualified stock purchase plan (in shares) | [1] | 14,044 | ||||||||||
Issuance of common stock under non-qualified stock purchase plan | 237 | $ 237 | ||||||||||
Issuance of common stock under dividend reinvestment plan (in shares) | [1] | 7,295 | ||||||||||
Issuance of common stock under dividend reinvestment plan | 177 | $ 177 | ||||||||||
Issuance of stock during the period, net (in shares) | [1] | 20,955 | ||||||||||
Issuance of stock during the period, net | 477 | $ 477 | ||||||||||
Stock-based awards - common stock: Restricted stock expense, net of tax impact (in shares) | [1] | (196) | ||||||||||
Stock-based awards - common stock: Restricted stock expense, net of tax impact | 2 | $ (4) | 6 | |||||||||
Stock option expense | 111 | $ 111 | ||||||||||
Conversion of Series B preferred stock to common stock (in shares) | (2,400) | 146,750 | [1] | |||||||||
Conversion of Series B preferred stock to common stock | $ (2,335) | $ 2,335 | ||||||||||
Other comprehensive loss, net | (122) | (122) | ||||||||||
Dividend declared on preferred stock | (236) | (236) | ||||||||||
Dividend declared on common stock | (270) | (270) | ||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 6,395 | 4,580 | 3,867,414 | [1] | ||||||||
Ending balance at Jun. 30, 2021 | 92,813 | $ 6,161 | $ 4,456 | $ 49,501 | (122) | (29) | 32,846 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 6,395 | 3,210 | 3,981,117 | [1] | ||||||||
Beginning balance at Dec. 31, 2021 | 96,290 | $ 6,161 | $ 3,123 | $ 51,496 | (420) | (17) | 35,947 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | (269) | (269) | ||||||||||
Issuance of common stock under non-qualified stock purchase plan (in shares) | [1] | 1,272 | ||||||||||
Issuance of common stock under non-qualified stock purchase plan | $ 21 | $ 21 | ||||||||||
Issuance of common stock under dividend reinvestment plan (in shares) | 5,251 | 5,251 | [1] | |||||||||
Issuance of common stock under dividend reinvestment plan | $ 83 | $ 83 | ||||||||||
Issuance of stock during the period, net (in shares) | [1] | 750 | ||||||||||
Issuance of stock during the period, net | $ 13 | $ 13 | ||||||||||
Repurchase of common stock (in shares) | [1] | (2,212) | ||||||||||
Repurchase of common stock | $ (49) | $ (49) | ||||||||||
Exercise of stock options, net (in shares) | 2,545 | 725 | [1] | |||||||||
Exercise of stock options, net | $ 5 | $ 5 | ||||||||||
Stock-based awards - common stock: Restricted stock expense, net of tax impact (in shares) | [1] | 32,120 | ||||||||||
Stock-based awards - common stock: Restricted stock expense, net of tax impact | 241 | $ 691 | (450) | |||||||||
Stock option expense | 172 | $ 172 | ||||||||||
Other comprehensive loss, net | (2,154) | (2,154) | ||||||||||
Dividend declared on preferred stock | (416) | (416) | ||||||||||
Dividend declared on common stock | (642) | (642) | ||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 6,395 | 3,210 | 4,019,023 | [1] | ||||||||
Ending balance at Jun. 30, 2022 | 93,295 | $ 6,161 | $ 3,123 | $ 52,432 | (2,574) | (467) | 34,620 | |||||
Beginning balance (in shares) at Mar. 31, 2022 | 6,395 | 3,210 | 4,013,173 | [1] | ||||||||
Beginning balance at Mar. 31, 2022 | 94,879 | $ 6,161 | $ 3,123 | $ 52,252 | (1,458) | (630) | 35,431 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | (282) | (282) | ||||||||||
Issuance of common stock under non-qualified stock purchase plan (in shares) | [1] | 1,272 | ||||||||||
Issuance of common stock under non-qualified stock purchase plan | 21 | $ 21 | ||||||||||
Issuance of common stock under dividend reinvestment plan (in shares) | [1] | 5,251 | ||||||||||
Issuance of common stock under dividend reinvestment plan | 83 | $ 83 | ||||||||||
Exercise of stock options, net (in shares) | [1] | 324 | ||||||||||
Exercise of stock options, net | 5 | $ 5 | ||||||||||
Stock-based awards - common stock: Restricted stock expense, net of tax impact (in shares) | [1] | (997) | ||||||||||
Stock-based awards - common stock: Restricted stock expense, net of tax impact | 141 | $ (22) | 163 | |||||||||
Stock option expense | 93 | $ 93 | ||||||||||
Other comprehensive loss, net | (1,116) | (1,116) | ||||||||||
Dividend declared on preferred stock | (208) | (208) | ||||||||||
Dividend declared on common stock | (321) | (321) | ||||||||||
Ending balance (in shares) at Jun. 30, 2022 | 6,395 | 3,210 | 4,019,023 | [1] | ||||||||
Ending balance at Jun. 30, 2022 | $ 93,295 | $ 6,161 | $ 3,123 | $ 52,432 | $ (2,574) | $ (467) | $ 34,620 | |||||
[1]Common shares for all periods shown herein reflect the three-for-two stock split, effective on May 10, 2021. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (269) | $ 20,527 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Depreciation of fixed assets | 995 | 853 |
Net securities premium amortization | 40 | 14 |
Amortization of debt issuance costs | 0 | 34 |
Amortization of premium/(discount) on loans purchased | 34 | (56) |
Provision for loan losses | (2,150) | 2,000 |
Accretion of discount on unguaranteed loans | (891) | (998) |
Deferred tax expense (benefit) | (143) | 1,261 |
Net gains on sales of SBA loans | (8,469) | (13,798) |
Origination of residential loans held for sale | (641,136) | (1,237,957) |
Net gains on sales of residential loans held for sale | (13,307) | (51,843) |
Amortization of loan servicing rights | 1,490 | 1,546 |
Non-qualified stock purchase plan expense | 45 | 38 |
Stock based compensation expense | 368 | 254 |
Income from bank owned life insurance | (303) | (168) |
Residential mortgage division fixed asset and lease impairment | 380 | 0 |
Changes in: | ||
Accrued interest receivable | 374 | 261 |
Other assets | 634 | 4,637 |
Accrued interest payable | (295) | (1,071) |
Other liabilities | (6,272) | (3,124) |
Net cash from operating activities | 153,670 | 94,356 |
Cash flows from investing activities: | ||
Purchase of investment securities available for sale | (20,326) | (22,976) |
Principal payments on investment securities available for sale | 1,494 | 119 |
Purchase of investment securities held to maturity | (3,568) | 0 |
Principal payments on investment securities held to maturity | 54 | 35 |
Net (sale) of restricted equity securities | (447) | (458) |
Purchase of time deposits from banks | (2,500) | 0 |
Proceeds from sales of SBA loans originally classified as held for investment | 0 | 326,318 |
Loan (originations) and payments, net | (180,186) | |
Loan (originations) and payments, net | 19,376 | |
Purchase of premises and equipment | (2,837) | (3,814) |
Net cash from (used in) investing activities | (208,316) | 318,600 |
Cash flows from financing activities: | ||
Net change in deposits | 43,721 | 73,538 |
Net increase of short-term borrowings | 40,000 | 0 |
Proceeds from issuance of subordinated debt, net of costs | 0 | 6,000 |
Payments on notes payable | (227) | (227) |
Net repayments of PPP Liquidity Facility borrowings | (69,654) | (437,356) |
Proceeds from issuance of preferred stock, net | 0 | 727 |
Redemption of subordinated debt | 0 | (6,000) |
Proceeds from sale of common stock, net | 122 | 1,391 |
Common share buyback - redeemed stock | (49) | 0 |
Dividends paid on common stock | (642) | (504) |
Dividends paid on preferred stock | (416) | (567) |
Net cash from (used in) financing activities | 12,855 | (362,998) |
Net change in cash and cash equivalents | (41,791) | 49,958 |
Cash and cash equivalents, beginning of period | 109,727 | 55,379 |
Cash and cash equivalents, end of period | 67,936 | 105,337 |
Supplemental cash flow information | ||
Interest paid | 2,801 | 5,426 |
Income taxes paid | 169 | 5,923 |
Supplemental noncash disclosures | ||
Net change in unrealized holding gain on investment securities available for sale | (2,154) | (122) |
Transfer of available for sale debt securities to held to maturity securities at fair value | 1,500 | 0 |
Transfer of loans held for investment to loans held for sale | 124,084 | 0 |
Transfer of loans held for investment to OREO | 53 | 0 |
Recognition of right of use asset and operating lease liability | 0 | 136 |
Conversion of Series B preferred stock to common stock | 0 | 4,787 |
SBA Loan | ||
Proceeds from sale of loans held-for-sale | 133,163 | 0 |
Changes in fair value, gain (loss) | (2,511) | (79) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Net gains on sales of SBA loans | (8,469) | 0 |
Loans Held For Sale | ||
Proceeds from sale of loans held-for-sale | 689,854 | 1,367,238 |
Changes in fair value, gain (loss) | $ 2,039 | $ 4,787 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Allowance for loan losses | $ 9,564,000 | $ 13,452,000 |
Common stock and additional paid-in capital, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock and additional paid-in capital, shares issued (in shares) | 4,019,023 | 3,981,117 |
Common stock and additional paid-in capital, shares outstanding (in shares) | 4,019,023 | 3,981,117 |
Preferred Stock, Series A | ||
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 6,395 | 6,395 |
Preferred stock, shares outstanding (in shares) | 6,395 | 6,395 |
Preferred stock, aggregate liquidation preference | $ 6,395,000 | $ 6,395,000 |
Preferred Stock, Series B | ||
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares issued (in shares) | 3,210 | 3,210 |
Preferred stock, shares outstanding (in shares) | 3,210 | 3,210 |
Preferred stock, aggregate liquidation preference | $ 3,210,000 | $ 3,210,000 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 $ / shares | Jun. 30, 2021 $ / shares | Jun. 30, 2022 $ / shares | Jun. 30, 2021 $ / shares | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividend declared on common stock (in USD per share) | $ 0.08 | $ 0.07 | $ 0.16 | $ 0.137 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include BayFirst Financial Corp. and its wholly owned subsidiary, BayFirst National Bank, together referred to as “the Company”. These unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles followed within the financial services industry for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include all of the information or notes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements of BayFirst Financial Corp. for that period. The Company principally operates in two business segments, Banking and Residential Mortgage Lending. In the opinion of management, all adjustments, consisting of normal and recurring items, considered necessary for a fair presentation of the consolidated financial statements for the interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods have been reclassified to conform to current year presentation. These reclassifications did not have a material effect on previously reported net income, shareholders’ equity, or cash flows. Operating results for the six month period ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2021. The Company’s significant accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements for the year ended December 31, 2021 in the Company’s Annual Report filed on Form 10-K. There were no new accounting policies or changes to existing policies adopted during the first six months of 2022 which had a significant effect on the Company’s results of operations or statement of financial condition. For interim reporting purposes, the Company follows the same basic accounting policies and considers each interim period as an integral part of an annual period. Effective May 10, 2021, the Company affected a three-for-two stock split. All share amounts and per share financial data contained in these financial statements related to periods prior and subsequent to this stock split have been adjusted to reflect the split. Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The most significant estimates relate to the allowance for loan losses, SBA loan servicing rights, and fair value of residential loans held for sale and residential mortgage derivatives. Emerging Growth Company Status: The Company is expected to remain an "emerging growth company," as defined in the JOBS Act, through December 31, 2026. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of an extended transition period when complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period, which means these financial statements, as well as financial statements we file in the future for as long as we remain an emerging growth company, will be subject to all new or revised accounting standards generally applicable to private companies. Contingencies : Due to the nature of their activities, the Company and its subsidiary are at times engaged in various legal proceedings that arise in the course of normal business, some of which were outstanding as of June 30, 2022. Although the ultimate outcome of all claims and lawsuits outstanding as of June 30, 2022 cannot be ascertained at this time, it is the opinion of management that these matters, when resolved, will not have a material adverse effect on the Company’s results of operations or financial condition. New Accounting Standards Not Yet Adopted : In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) . This new guidance was issued to replace the incurred loss model for loans and other financial assets with an expected loss model, which is referred to as the CECL model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and debt securities held to maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e., loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in ASU 2016-13 require credit losses on investment securities available for sale to be presented as a valuation allowance rather than as a direct write-down thereon. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted; however, the Company has elected to adopt new or revised accounting standards using the delayed effective dates applicable to Emerging Growth Companies. Management is in the process of evaluating the impact of adoption of this ASU on its Consolidated Financial Statements, processes, and controls and is not currently able to reasonably estimate the impact of adoption on the Company’s consolidated financial position, results of operations; however, adoption is likely to lead to significant changes in accounting policies related to, and the methods employed in estimating, the allowance for credit losses. It is possible that the impact will be material to the Company’s consolidated financial position and results of operati ons. To date, the Company has established a CECL steering committee and has an implementation plan. The Company has segmented the loan portfolio based on similar risk characteristics and reviewed and selected methodologies for estimating expected credit losses. ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2022-02”) eliminates the guidance on troubled debt restructurings and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. ASU 2022-02 is effective January 1, 2023 and is not expected to have a significant impact on our financial statement disclosures. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized costs, gross unrealized gains and losses, and estimated fair values of investment securities available for sale and investment securities held to maturity at June 30, 2022 and December 31, 2021 are summarized as follows: June 30, 2022 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 10,098 $ — $ (189) $ 9,909 Mortgage-backed securities: U.S. Government-sponsored enterprises 4,296 — (522) 3,774 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 23,023 — (2,470) 20,553 Corporate bonds 11,339 — (292) 11,047 Total investment securities available for sale $ 48,756 $ — $ (3,473) $ 45,283 Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 2 $ — $ — $ 2 Corporate bonds 5,014 — (17) 4,997 Total investment securities held to maturity $ 5,016 $ — $ (17) $ 4,999 December 31, 2021 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 7,624 $ — $ (89) $ 7,535 Mortgage-backed securities: U.S. Government-sponsored enterprises 4,470 — (76) 4,394 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 19,370 — (406) 18,964 Total investment securities available for sale $ 31,464 $ — $ (571) $ 30,893 Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 2 $ — $ — $ 2 Total investment securities held to maturity $ 2 $ — $ — $ 2 The amortized cost and fair value of investment securities as of June 30, 2022 are shown in the table below by contractual maturity. Actual timing may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair One to five years $ 11,339 $ 11,047 $ 4,014 $ 3,997 Five to ten years — — 1,000 1,000 Beyond ten years 37,417 34,236 2 2 Total $ 48,756 $ 45,283 $ 5,016 $ 4,999 During the second quarter of 2022, the Company transferred a $1,500 previously designated available for sale investment security to a held to maturity designation at estimated fair value. The reclassification for the period ended June 30, 2022 is permitted as the Company has appropriately determined the ability and intent to hold the investment security as an investment until maturity or call. The investment security had no unrealized net gain or loss at the time of transfer since it was purchased near the end of the first quarter of 2022. As of June 30, 2022, the Company's investment portfolio consisted of 22 securities, 18 of which were in an unrealized loss position. The Company expects full recovery of the carrying amount of these securities and does not intend to sell the securities in an unrealized loss position nor does it believe it will be required to sell securities in an unrealized loss position before the value is recovered. The Company does not consider these securities to be other-than-temporarily impaired at June 30, 2022. The following table summarizes investment securities with unrealized losses at June 30, 2022 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total June 30, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investment securities available for sale: Asset-backed securities $ 9,909 $ (189) $ — $ — $ 9,909 $ (189) Mortgage-backed securities: U.S. Government-sponsored enterprises 2,145 (236) 1,629 (286) 3,774 (522) Collateralized mortgage obligations: U.S. Government-sponsored enterprises 16,917 (2,015) 3,636 (455) 20,553 (2,470) Corporate Bonds 11,047 (292) — — 11,047 (292) Total investment securities held to maturity $ 40,018 $ (2,732) $ 5,265 $ (741) $ 45,283 $ (3,473) Investment securities held to maturity: Corporate Bonds $ 2,497 $ (17) $ — $ — $ 2,497 $ (17) Total investment securities held to maturity $ 2,497 $ (17) $ — $ — $ 2,497 $ (17) The following table summarizes investment securities with unrealized losses at December 31, 2021 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total December 31, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investment securities available for sale: Asset-backed securities $ 7,535 $ (89) $ — $ — $ 7,535 $ (89) Mortgage-backed securities: U.S. Government-sponsored enterprises 4,394 (76) — — 4,394 (76) Collateralized mortgage obligations: U.S. Government-sponsored enterprises 18,964 (406) — — 18,964 (406) Total investment securities available for sale $ 30,893 $ (571) $ — $ — $ 30,893 $ (571) No investment securities were pledged as of June 30, 2022 or December 31, 2021, and there were no sales of investment securities during the six months ended June 30, 2022 or December 31, 2021. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans | LOANS Loans held for investment, at amortized cost, at June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, Real estate: Residential $ 122,403 $ 87,235 Commercial 216,067 163,477 Construction and land 9,686 18,632 Commercial and industrial 168,990 217,155 Commercial and industrial - PPP 31,430 80,158 Consumer and other 35,845 3,581 Loans held for investment, at amortized cost, gross 584,421 570,238 Deferred loan costs, net 7,629 7,975 Discount on SBA 7(a) loans sold (1) (4,743) (3,866) Premium/(discount) on loans purchased 2,221 (13) Allowance for loan losses (9,564) (13,452) Loans held for investment, at amortized cost $ 579,964 $ 560,882 (1) The Company allocates the retained portion of loans sold based on relative fair value of the retained portion and the sold portion, which results in a discount on the retained portion. |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Allowance for Loan Losses | ALLOWANCE FOR LOAN LOSSES The following schedule presents the activity in the allowance for loan losses by loan segment for the three and six months ended June 30, 2022 and June 30, 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Balance, beginning of period $ 10,170 $ 22,017 $ 13,452 $ 21,162 Charge-offs: Real estate - commercial (53) — (53) — Commercial and industrial (939) (1,453) (1,970) (2,590) Consumer and other (26) (12) (41) (28) Total charge-offs (1,018) (1,465) (2,064) (2,618) Recoveries: Real estate - commercial 53 — 61 — Commercial and industrial 107 244 260 249 Consumer and other 2 1 5 4 Total recoveries 162 245 326 253 Net (charge-offs) (856) (1,220) (1,738) (2,365) Provision for loan losses 250 — (2,150) 2,000 Balance, end of period $ 9,564 $ 20,797 $ 9,564 $ 20,797 Net (charge-offs) to total average loans held for investment (0.57) % (0.42) % (0.59) % (0.38) % The following table presents the balance in the allowance for loan losses and the recorded investment in loans by loan segment and based on impairment method at June 30, 2022. The government guaranteed loan balances are included in the collectively evaluated for impairment balances. Real Estate- Real Estate- Real Estate - Commercial Commercial Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ 949 $ — $ — $ — $ 949 Collectively evaluated for impairment 589 1,133 38 5,815 — 1,038 2 8,615 Total $ 589 $ 1,133 $ 38 $ 6,764 $ — $ 1,038 $ 2 $ 9,564 Loans: Individually evaluated for impairment $ 246 $ 1,611 $ — $ 2,388 $ — $ — $ — $ 4,245 Collectively evaluated for impairment 122,157 214,456 9,686 166,602 31,430 35,845 — 580,176 Total $ 122,403 $ 216,067 $ 9,686 $ 168,990 $ 31,430 $ 35,845 $ — $ 584,421 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by loan segment and based on impairment method at December 31, 2021. The government guaranteed loan balances are included in the collectively evaluated for impairment balances. Real Estate- Real Estate- Real Estate - Commercial Commercial Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 91 $ — $ 902 $ — $ — $ — $ 993 Collectively evaluated for impairment 1,437 2,258 241 8,300 — 154 69 12,459 Total $ 1,437 $ 2,349 $ 241 $ 9,202 $ — $ 154 $ 69 $ 13,452 Loans: Individually evaluated for impairment $ 124 $ 2,900 $ — $ 902 $ — $ — $ — $ 3,926 Collectively evaluated for impairment 87,111 160,577 18,632 216,253 80,158 3,581 — 566,312 Total $ 87,235 $ 163,477 $ 18,632 $ 217,155 $ 80,158 $ 3,581 $ — $ 570,238 The following table presents information related to impaired loans by loan segment at and for the six months ended June 30, 2022: Unpaid Recorded Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized With no related allowance recorded: Real estate - residential $ 246 $ 246 $ — $ 165 $ — $ — Real estate - commercial 1,611 1,611 — 2,154 15 15 Subtotal 1,857 1,857 — 2,319 15 15 With an allowance recorded: Real estate - commercial — — — 102 — — Commercial and industrial 2,388 2,388 949 1,176 — — Subtotal 2,388 2,388 949 1,278 — — Total $ 4,245 $ 4,245 $ 949 $ 3,597 $ 15 $ 15 The following table presents information related to impaired loans by loan segment at and for the six months ended June 30, 2021: Unpaid Recorded Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized With no related allowance recorded: Real estate - commercial $ 2,591 $ 2,591 $ — $ 1,932 $ 20 $ — Subtotal 2,591 2,591 — 1,932 20 — With an allowance recorded: Real estate - commercial 89 89 37 583 — — Commercial and industrial 856 856 856 902 — — Subtotal 945 945 893 1,485 — — Total $ 3,536 $ 3,536 $ 893 $ 3,417 $ 20 $ — The unpaid principal balance represents the outstanding contractual balance. For purposes of the impaired loans by loan segment tables above, the unpaid principal balance and recorded investment do not include the government guaranteed balance. The government guaranteed balances of impaired loans at June 30, 2022 and December 31, 2021 were $6,192 and $6,197, respectively. Nonaccrual loans and loans past due over 89 days still on accrual include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified impaired loans. The unguaranteed portions of government guaranteed loans that are under $100 are reserved in full. Impaired loans include commercial loans that are individually evaluated for impairment and deemed impaired as well as TDR for all loan portfolio segments. The sum of nonaccrual loans and loans past due over 89 days still on accrual will differ from the total impaired loan amount. The following table presents the recorded investment in nonaccrual and loans past due over 89 days still on accrual by loan segment at June 30, 2022 and December 31, 2021. In the following table, the recorded investment does not include the government guaranteed balance. Nonaccrual Loans Past Due Over June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Real estate - residential $ 246 $ 124 $ — $ 126 Real estate - commercial 1,611 2,815 — — Commercial and industrial 2,388 902 92 — Total $ 4,245 $ 3,841 $ 92 $ 126 The following table presents the aging of the recorded investment in past due loans at June 30, 2022 by loan segment: 30-89 Days Greater Than Total Past Due Loans Not Past Due (1) Total Loans Real estate - residential $ 868 $ 246 $ 1,114 $ 121,289 $ 122,403 Real estate - commercial 1,157 609 1,766 214,301 216,067 Real estate - construction and land — — — 9,686 9,686 Commercial and industrial 1,655 2,300 3,955 165,035 168,990 Commercial and industrial - PPP — — — 31,430 31,430 Consumer and other 27 — 27 35,818 35,845 Total $ 3,707 $ 3,155 $ 6,862 $ 577,559 $ 584,421 (1) For the purposes of the table above, $6,678 of balances 30-89 days past due and $1,153 of balances greater than 89 days past due are reported as Loans Not Past Due as a result of the government guaranty. Of those loans, $15 of commercial and industrial PPP loans were delinquent as of June 30, 2022. The following table presents the aging of the recorded investment in past due loans at December 31, 2021 by loan segment: 30-89 Days Greater Than Total Past Due Loans Not Past Due (1) Total Loans Real estate - residential $ 57 $ 250 $ 307 $ 86,928 $ 87,235 Real estate - commercial 192 1,778 1,970 161,507 163,477 Real estate - construction and land — — — 18,632 18,632 Commercial and industrial 991 424 1,415 215,740 217,155 Commercial and industrial - PPP — — — 80,158 80,158 Consumer and other — — — 3,581 3,581 Total $ 1,240 $ 2,452 $ 3,692 $ 566,546 $ 570,238 (1) For the purposes of the table above, $10,360 of balances 30-89 days past due and $2,807 of balances greater than 89 days past due are reported as Loans Not Past Due as a result of the government guaranty, and $11,089 of commercial and industrial PPP loans are primarily due to delinquencies from borrowers with only a PPP loan and no other Bank product. These borrowers were non-responsive to requests for forgiveness applications and payments, and applications were subsequently submitted to the SBA for their 100% guarantee purchase from the Bank. Credit Quality Indicators Internal risk-rating grades are assigned to loans by lending, credit administration or loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other statistics and factors such as delinquency, to track the migration performance of the portfolio balances. This analysis is performed at least annually. The Bank uses the following definitions for its risk ratings: Pass – Loans properly approved, documented, collateralized, and performing which do not reflect an abnormal credit risk. Special Mention – These credits constitute an undue and unwarranted credit risk, but not to a point of justifying a classification of “Substandard”. They have weaknesses that, if not checked or corrected, weaken the asset or inadequately protect the Bank. Substandard – These loans 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 Bank will sustain some loss if the deficiencies are not corrected. Doubtful – These loans have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The table below sets forth credit exposure for the loan portfolio disaggregated by loan segment based on internally assigned risk ratings at June 30, 2022: Pass Special Substandard Doubtful Total Loans Real estate - residential $ 122,157 $ — $ 246 $ — $ 122,403 Real estate - commercial 214,383 73 1,611 — 216,067 Real estate - construction and land 9,686 — — — 9,686 Commercial and industrial 165,976 118 2,896 — 168,990 Commercial and industrial - PPP 31,430 — — — 31,430 Consumer and other 35,845 — — — 35,845 Loans held for investment, at amortized cost $ 579,477 $ 191 $ 4,753 $ — $ 584,421 The table below sets forth credit exposure for the loan portfolio disaggregated by loan segment based on internally assigned risk ratings at December 31, 2021: Pass Special Substandard Doubtful Total Loans Real estate - residential $ 87,233 $ — $ 2 $ — $ 87,235 Real estate - commercial 160,492 170 2,815 — 163,477 Real estate - construction and land 18,632 — — — 18,632 Commercial and industrial 212,544 1,850 2,761 — 217,155 Commercial and industrial - PPP 80,158 — — — 80,158 Consumer and other 3,581 — — — 3,581 Loans held for investment, at amortized cost $ 562,640 $ 2,020 $ 5,578 $ — $ 570,238 Troubled Debt Restructurings The following table presents loans classified as TDR at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Accruing Nonaccruing Accruing Nonaccruing Real estate - commercial $ — $ — $ 85 $ 1,116 The Company had not committed to lend any additional amounts to the loans classified as TDR at June 30, 2022 and December 31, 2021. The Company estimated $38 of impaired loan loss reserves for these loans at December 31, 2021. There were no loans which were modified in the previous twelve months that defaulted during the six months ended June 30, 2022. There were no new loans classified as TDR during the six months ended June 30, 2022. The CARES Act, signed into law on March 27, 2020, permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDR and permitted any determination related thereto if (i) the loan modification was made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the coronavirus emergency declaration and (ii) the applicable loan was not more than 30 days past due as of December 31, 2019. The CAA, signed into law on December 27, 2020, extended the applicable period to include modifications to loans held by financial institutions executed between March 1, 2020 and the earlier of (i) January 1, 2022 or (ii) 60 days after the date of the termination of the COVID-19 national emergency. In addition, federal bank regulatory authorities have issued guidance to encourage financial institutions to make loan modifications for borrowers affected by COVID-19 and have assured financial institutions that they will neither receive supervisory criticism for such prudent loan modifications, nor be required by examiners to automatically categorize COVID-19-related loan modifications as TDR. The Company is applying this guidance to qualifying loan modifications. Loan modifications related to COVID-19 at June 30, 2022 and December 31, 2021 are presented in the table below: June 30, 2022 December 31, 2021 Number of Outstanding Number of Loans Outstanding Recorded Investment Real estate - residential — $ — 1 $ 258 Commercial and industrial 11 459 23 1,113 Total loan modifications related to COVID-19 11 $ 459 24 $ 1,371 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE 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 at 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, and 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. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities Available for Sale : The fair values of investment securities available for sale are determined by matrix pricing, which is a mathematical technique used to value debt securities without relying exclusively on quoted prices for the specific investment securities, but rather by relying on the investment securities’ relationship to other benchmark quoted investment securities (Level 2). Management obtains the fair values of investment securities available for sale on a monthly basis from a third party pricing service. Residential Loans Held for Sale : The Company has elected to account for residential loans held for sale at fair value. The fair value of loans held for sale is determined using either actual quoted prices for the assets (Level 1) whenever possible or quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). The gain (loss) on loans held for sale is included in residential fee income in the Consolidated Statements of Income. SBA Loans Held for Investment, at Fair Value : The Company has elected to account for certain SBA loans held for investment at fair value. Fair value is calculated based on the present value of estimated future payments (Level 3). The valuation model uses interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future payments. Whenever available, the present value is validated against available market data. Mortgage Banking Derivatives : Mortgage banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts, best efforts forward sales contracts, and interest rate lock commitments. The fair value of mandatory forward sales contracts is measured using quoted market prices (Level 1), or in some cases when quoted market prices are not available, the pricing is derived from market observable inputs that can generally be verified and do not typically involve significant judgment by the Company (Level 2). Interest rate lock commitments involve pricing derived from market observable inputs that are adjusted based on pull-through rates (anticipated loan funding probability). Pull-through rates are an unobservable input which are the Company’s estimate of the percentage of interest rate lock commitments expected to result in closed loans (Level 3). The fair value of best efforts forward sales contracts is measured using market observable inputs that are adjusted using unobservable inputs including duration, spread, and pull-through rates (Level 3). Impaired Loans : A loan is considered to be impaired when it is probable the Bank will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. In most cases, the Bank measures fair value based on the value of the collateral securing the loan. Collateral may be in the form of real estate and/or business or personal assets, including but not limited to equipment, inventory, and accounts receivable. The fair value of real estate collateral is determined based on third party appraisals by qualified licensed appraisers as well as internal estimates. The fair value of other business or personal assets is generally based on amounts reported on the financial statements of the customer or customer’s business. Appraised and reported values may be adjusted based on management’s historical knowledge, changes in market conditions from the time of valuation and management’s knowledge of the customer and the customer’s business. Since not all valuation inputs are observable, these nonrecurring fair value determinations are classified as Level 3. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors previously identified. SBA Loan Servicing Rights : On a quarterly basis, SBA loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount exceeds fair value, impairment is recorded so that the servicing asset is carried at fair value. The fair value of SBA servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. There were no SBA loan servicing rights carried at fair value at June 30, 2022 and December 31, 2021. Assets and liabilities measured at fair value on a recurring basis at June 30, 2022 are summarized below: Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Total Financial assets Investment securities available for sale $ — $ 45,283 $ — $ 45,283 Residential loans held for sale 14,750 59,958 — 74,708 SBA loans held for investment, at fair value — — 52,209 52,209 Interest rate lock commitments — — 1,164 1,164 Mandatory forward sales contracts 283 — — 283 Best efforts forward sales contracts — — 83 83 Financial liabilities Interest rate lock commitments $ — $ — $ 77 $ 77 Mandatory forward sales contracts 445 — — 445 Assets and liabilities measured at fair value on a recurring basis at December 31, 2021 are summarized below: Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Total Financial assets Investment securities available for sale $ — $ 30,893 $ — $ 30,893 Residential loans held for sale 43,837 70,294 — 114,131 SBA loans held for investment, at fair value — — 9,614 9,614 Interest rate lock commitments — — 1,435 1,435 Mandatory forward sales contracts 88 — — 88 Best efforts forward sales contracts — — 27 27 Financial liabilities Interest rate lock commitments $ — $ — $ 23 $ 23 Mandatory forward sales contracts 166 — — 166 There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis during the reported periods. Financial Instruments Recorded Using Fair Value Option The Company has elected the fair value option for residential loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual term of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans are 90 days or more past due or on nonaccrual at June 30, 2022 and December 31, 2021. The aggregate fair value, contractual balance, and gain at June 30, 2022 and December 31, 2021 for residential loans held for sale were as follows: June 30, 2022 December 31, 2021 Aggregate fair value $ 74,708 $ 114,131 Contractual balance 72,951 110,335 Gain $ 1,757 $ 3,796 The total amount of losses from changes in fair value and interest income included in earnings for the six months ended June 30, 2022 and June 30, 2021 for residential loans held for sale were as follows: Six Months Ended June 30, 2022 2021 Interest income $ 1,604 $ 2,030 Change in fair value (2,039) (4,787) Total (loss) $ (435) $ (2,757) The Company also elected the fair value option for certain of its non-PPP SBA loans as the Company believed that fair value was the best indicator of the resolution of those loans at that time. Depending on market conditions and liquidity needs of the Company, management determines whether it is advantageous to hold or sell SBA loans on a loan-by-loan basis. The portion of these loans guaranteed by the SBA are generally readily marketable in the secondary market and the portion of the loans that are not guaranteed may be sold periodically to other third party financial institutions. Interest income on these loans is recorded based on the contractual term of the loan and in accordance with the Company’s policy on other loans held for investment. The aggregate fair value, contractual balance, and gain at June 30, 2022 and December 31, 2021 for SBA loans held for investment, at fair value, were as follows: June 30, 2022 December 31, 2021 Aggregate fair value $ 52,209 $ 9,614 Contractual balance 49,517 9,433 Gain $ 2,692 $ 181 The total amount of gains and losses from changes in fair value and interest income included in earnings for the six months ended June 30, 2022 and June 30, 2021 for SBA loans held for investment, at fair value, were as follows: Six Months Ended June 30, 2022 2021 Interest income $ 341 $ 288 Change in fair value 2,511 79 Total gain $ 2,852 $ 367 Changes in fair value for SBA loans held for investment, at fair value, were included in SBA loan fair value gain on the Consolidated Statements of Income. The table below presents a reconciliation of SBA loans held for investment, at fair value, which were valued on a recurring basis and used significant unobservable inputs (Level 3) for the six months ended June 30, 2022 and June 30, 2021: Six Months Ended June 30, 2022 2021 Balance of SBA loans held for investment at fair value, beginning of period $ 9,614 $ 9,264 New SBA origination at fair value 41,745 — Principal payments (1,661) (674) Repurchase of guaranteed balances previously participated — 1,401 Total gains during the period 2,511 79 Balance of SBA loans held for investment at fair value, end of period $ 52,209 $ 10,070 The Company’s valuation of SBA loans held for investment, at fair value, was supported by an analysis prepared by an independent third party and approved by management. The approach to determine fair value involved several steps: 1) Identifying each loan’s unique characteristics, including balance, payment type, term, coupon, age, and principal and interest payment; 2) Projecting these loan level characteristics for the life of each loan; and 3) Performing discounted cash flow modeling. The following table provides information about the valuation techniques and unobservable inputs used in the valuation of SBA loans held for investment, at fair value, interest rate lock commitments, and best efforts forward sales contracts falling within Level 3 of the fair value hierarchy at June 30, 2022 and December 31, 2021: Fair Value Valuation Unobservable Inputs Range (Weighted Average) June 30, 2022 SBA loans held for $ 52,209 Discounted Discount rate 4.00%-7.50% (4.81%) investment, at fair value cash flow Conditional prepayment rate 8.58%-9.07% (8.76%) Interest rate lock commitments 1,087 Quoted Market Prices Pull-through expectations 24.00%-100.00% (84.23%) Best efforts forward sales contracts 83 Quoted Market Prices Pull-through expectations 24.00%-80.00% (75.65%) December 31, 2021 SBA loans held for $ 9,614 Discounted Discount rate 3.22%-6.72% (4.22%) investment, at fair value cash flow Conditional prepayment rate 10.56%-10.56% (10.56%) Interest rate lock commitments 1,412 Quoted Market Prices Pull-through expectations 24.00%-100.00% (84.40%) Best efforts forward sales contracts 27 Quoted Market Prices Pull-through expectations 24.00%-80.00% (65.79%) The significant unobservable inputs impacting the fair value measurement of SBA loans held for investment, at fair value, include discount rates and conditional prepayment rates. Increases in discount rates or prepayment rates would result in a lower fair value measurement. Although the prepayment rate and discount rate are not directly interrelated, they generally move in opposite directions. The discount rates and conditional prepayment rates were weighted by the relative principal balance outstanding of these loans. The significant unobservable inputs impacting the fair value measurement of interest rate lock commitments and best efforts sales contracts include pull-through rates. An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitments and best efforts forward sale contracts will result in positive fair value adjustments (and an increase in the fair value measurement). Conversely, a decrease in the pull-through rate will result in a negative fair value adjustment (and a decrease in the fair value measurement). Assets measured at fair value on a nonrecurring basis at June 30, 2022 are summarized below: Fair Value Valuation Technique(s) Significant Discount % Range/Amount Impaired loans $ 1,768 Discounted appraisals, estimated net realizable value of collateral Collateral discounts 10% Assets measured at fair value on a nonrecurring basis at December 31, 2021 are summarized below: Fair Value Valuation Technique(s) Significant Discount % Range/Amount Impaired loans $ 1,614 Discounted appraisals, estimated net realizable value of collateral Collateral discounts 10% Fair Value of Financial Instruments The carrying values and estimated fair values of financial instruments not carried at fair value, at June 30, 2022 and December 31, 2021 are as follows: June 30, 2022 December 31, 2021 Level Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 1 $ 67,936 $ 67,936 $ 109,727 $ 109,727 Time deposits in banks 2 4,881 4,773 2,381 2,437 Investment securities held to maturity 2 5,016 4,999 2 2 Restricted equity securities, at cost 2 3,274 3,274 2,827 2,827 Government guaranteed loans held for sale 2 — — 1,460 1,460 Loans held for investment, at amortized cost 3 579,964 577,950 560,882 569,394 Accrued interest receivable 3 3,190 3,190 3,564 3,564 SBA loan servicing rights 3 7,760 9,112 6,407 8,050 Mortgage loan servicing rights 3 192 192 212 212 Liabilities: Noninterest-bearing deposits 2 $ 103,613 $ 103,613 $ 83,638 $ 83,638 Interest-bearing transaction accounts 2 195,386 195,386 163,495 163,495 Savings and money market deposits 2 432,369 432,369 423,864 423,864 Time deposits 2 34,038 34,016 50,688 51,049 FHLB and FRB borrowings 2 40,000 40,000 — — Subordinated debentures 2 5,989 5,836 5,985 6,175 Notes payable 2 3,072 3,063 3,299 3,350 PPP Liquidity Facility 2 — — 69,654 69,654 Accrued interest payable 2 31 31 326 326 |
SBA Loan Servicing Activities
SBA Loan Servicing Activities | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
SBA Loan Servicing Activities | SBA LOAN SERVICING ACTIVITIESAt June 30, 2022 and December 31, 2021, the principal balance of SBA loans, excluding PPP loans, retained by the Company was $290,387 and $300,415, respectively, of which $151,903 and $171,548 represented the guaranteed portion of the loans. Loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of SBA loans serviced for others requiring recognition of a servicing asset were $522,050 and $459,670 at June 30, 2022 and December 31, 2021, respectively. Activity for SBA loan servicing rights for the three and six months ended June 30, 2022 and June 30, 2021 follows: Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Beginning of period $ 7,399 $ 7,445 $ 6,407 $ 8,160 Additions 1,134 — 2,823 — Amortization (773) (831) (1,470) (1,546) End of period $ 7,760 $ 6,614 $ 7,760 $ 6,614 The fair value of SBA loan servicing rights was $9,112 and $8,050 at June 30, 2022 and December 31, 2021, respectively. Fair value was determined using a weighted average discount rate of 14.37% and a weighted average prepayment speed of 10.21% at June 30, 2022. Fair value was determined using a weighted average discount rate of 12.13% and a weighted average prepayment speed of 10.37% at December 31, 2021. The SBA loan servicing rights are amortized over the life of a loan on a loan-by-loan basis. The following table presents the components of net gain on sale of SBA loans, excluding sale of PPP loans, for the three and six months ended June 30, 2022 and June 30, 2021: Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Gain on sale of guaranteed SBA loans $ 2,714 $ — $ 6,038 $ — Loss on sale of unguaranteed SBA loans — — (348) — Costs recognized on sale of SBA loans — — (44) — Fair value of servicing rights created 1,134 — 2,823 — Gain on sale of SBA loans, net $ 3,848 $ — $ 8,469 $ — |
Premises and Equipment
Premises and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | PREMISES AND EQUIPMENT Premises and equipment at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 December 31, 2021 Land and improvements $ 4,194 $ 4,194 Building and improvements 9,847 9,590 Leasehold improvements 2,624 2,433 Furniture, fixtures, and equipment 7,156 7,034 Fixed assets in process 13,965 12,247 Total premises and equipment 37,786 35,498 Accumulated depreciation and amortization (6,418) (5,827) Net premises and equipment $ 31,368 $ 29,671 Depreciation and amortization expense was $500 and $439 for the three months ended June 30, 2022 and June 30, 2021, respectively, and $995 and $853 for the six months ended June 30, 2022 and June 30, 2021, respectively . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | LEASES For the three and six months ended June 30, 2022 and June 30, 2021, the components of total lease cost and supplemental information related to operating leases were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Operating lease cost $ 385 $ 361 $ 772 $ 722 Short-term lease cost 137 179 273 374 Total lease cost, net $ 522 $ 540 $ 1,045 $ 1,096 Three Months Ended Six Months Ended 2022 2021 2022 2021 Operating cash flows related to operating leases $ 388 $ 362 $ 768 $ 709 Right-of-use assets obtained in exchange for new operating lease liabilities — — — 136 $ 388 $ 362 $ 768 $ 845 At June 30, 2022, the weighted average discount rate of operating leases was 2.17% and the weighted average remaining life of operating leases was 3.97 years. The future minimum lease payments for operating leases, subsequent to June 30, 2022, as recorded on the balance sheet, are summarized as follows: 2022 $ 711 2023 1,171 2024 1,087 2025 686 2026 593 Thereafter 301 Total undiscounted lease payments $ 4,549 Less: imputed interest (535) Net lease liabilities $ 4,014 Impairment of ROU Assets ROU assets from operating leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, and are reviewed for impairment when indicators of impairment are present. ASC 360 requires three steps to identify, recognize and measure impairment. If indicators of impairment are present (Step 1), the Company performs a recoverability test (Step 2) comparing the sum of the estimated undiscounted cash flows attributable to the ROU asset in question to the carrying amount. If the undiscounted cash flows used in the recoverability test are less than the carrying amount, the Company estimates the fair value of the ROU asset and recognizes an impairment loss when the carrying amount exceeds the estimated fair value (Step 3). During the current quarter, the Company closed leased mortgage lending offices as part of its residential mortgage division restructure initiative. The mortgage lending offices were evaluated as outlined above to determine whether the operating leases were impaired. As part of the recoverability test, the Company elected to exclude operating lease liabilities from the carrying amount of the asset group. The undiscounted future cash flows used in the recoverability test were based on assumptions made by the Company rather than market participant assumptions. Since an election was made to exclude operating lease liabilities from the asset or asset group, all future cash lease payments for the lease were also excluded. In addition, the Company elected to exclude operating lease liabilities from the estimated fair value, consistent with the recoverability test. When determining the fair value of the ROU asset, the Company estimated what market participants would pay to lease the assets assuming the highest and best use in the assets current forms. |
Other Borrowings
Other Borrowings | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Other Borrowings | OTHER BORROWINGS At June 30, 2022, FHLB and FRB borrowings totaled $40,000 consisting of $20,000 in FHLB borrowings and $20,000 in borrowings from the FRB. There were no borrowings from the FHLB or FRB at December 31, 2021. The Bank is a member of the FHLB of Atlanta, which provides short- and long-term funding collateralized by mortgage-related assets to its members. FHLB short-term borrowings be ar interest at variable rates set by the FHLB. Th e advances were secured by a blanket lien on $192,487 of real estate-related loans as of June 30, 2022. Based on this collateral and the Company's holdings of FHLB stock, the Company was eligible to borrow up to an additional $109,776 from the FHLB at June 30, 2022. In addition, the Bank has a secured line of credit with the Federal Reserve Bank of Atlanta which was secured by $34,813 of commercial loans as of June 30, 2022. FRB short-term borrowings bear interest at variable rates based on the Federal Open Market Committee's target range for the federal funds rate. Based on this collateral, the Company was eligible to borrow up to an additional $4,797 from the FRB at June 30, 2022. In June 2021 , the Company issued $6,000 of Subordinated Debentures (the “Debentures”) that mature June 30, 2031 and are redeemable after 5 years. The Debentures carry interest at a fixed rate of 4.50% per annum for the initial 5 years of term and carry interest at a floating rate for the final 5 years of term. Under the debt agreements, the floating rates are based on a SOFR benchmark plus 3.78% per annum. These Debentures were issued to redeem a $6,000 Subordinated Debenture which was issued in December 2018 and carried interest at a rate of 6.875% per annum. The balance of Subordinated Debentures outstanding at the Company, net of offering costs, amounted to $5,989 and $5,985 at June 30, 2022 and December 31, 2021, respectively. In March 2020, the Company renegotiated the terms of its outstanding senior debt and combined its line of credit and term note into one amortizing note with quarterly principal and interest payments with interest at Prime (4.75% at June 30, 2022). The new note matures on March 10, 2029 and the balance of the note was $3,072 and $3,299 at June 30, 2022 and December 31, 2021, respectively. The note is secured by 100% of the stock of the Company and requires the Company to comply with certain loan covenants during the term of the note. As of June 30, 2022, the Company was in compliance with all financial debt covenants. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock- Based Compensation | STOCK-BASED COMPENSATION The Equity Plan governs the Company’s restricted stock and stock options. Total compensation cost charged against income related to the Equity Plan was $244 and $88 for the three months ended June 30, 2022 and June 30, 2021, respectively, and $423 and $229 for the six months ended June 30, 2022 and June 30, 2021, respectively. Restricted Stock The Company awarded shares of restricted common stock to certain employees for which compensation expense is recognized ratably over the vesting period of the awards based on the fair value of the stock at issue date. A summary of changes in the Company’s nonvested restricted shares for the six months ended June 30, 2022 follows: Shares Weighted-Average Nonvested at January 1, 2022 2,483 $ 14.86 Granted 34,925 21.50 Vested (3,921) 18.44 Forfeited (1,725) 21.45 Nonvested at June 30, 2022 31,762 $ 21.36 At June 30, 2022, there was $477 of total unrecognized compensation cost related to nonvested restricted shares granted under the Equity Plan that is expected to be recognized over a weighted average period of 2.9 years. The total fair value of shares vested during the six months ended June 30, 2022 and June 30, 2021 was $88 and $85, respectively. Stock Options The Equity Plan permits the grant of stock options to the Company’s employees and non-employee directors for up to 15% of the total number of shares of Company common stock issued and outstanding, up to 1,500,000 shares. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant. The market price of the Company’s common stock is the closing sales price of the Common Stock on such date on the securities exchange having the greatest volume of trading in the Common Stock during the 30-day period preceding the day the value is to be determined or, if there is no reported closing sales price on such date, the next preceding date on which there was a reported closing price. Those option awards generally have a vesting period of 5 years for employees and 3 years for non-employee directors and have 10-year contractual terms. 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 volatility is based on an average of historical volatility of peer financial institutions. The expected term of options granted 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 grant. A summary of the activity in the Equity Plan for the six months ended June 30, 2022 follows: Shares Weighted Weighted Aggregate Outstanding at January 1, 2022 450,278 $ 15.64 Exercised (2,545) 15.14 Forfeited (11,370) 15.06 Outstanding at June 30, 2022 436,363 $ 15.65 7.13 $ 1,722 Vested and exercisable at June 30, 2022 273,325 $ 15.95 6.70 $ 997 There were no options granted during the three and six months ended June 30, 2022. The weighted average fair value of options granted during the six months ended June 30, 2021 was $3.70. Total unrecognized compensation cost related to nonvested stock options granted under the Equity Plan was $408 at June 30, 2022. This cost is expected to be recognized over a weighted average period of 2.11 years. |
Other Benefit Plans
Other Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Postemployment Benefits [Abstract] | |
Other Benefit Plans | OTHER BENEFIT PLANSThe Company has established a stock dividend reinvestment and other stock purchase plan. Under the DRIP, eligible shareholders can voluntarily purchase stock with their dividend or can make additional stock purchases. During the six months ended June 30, 2022, 5,251 shares were purchased at an average price of $15.85. During the six months ended June 30, 2021, 13,634 shares were purchased at an average price of $20.85. During the year ended December 31, 2021, 17,971 shares were purchased at an average price of $21.68 per share. All employees and Directors are eligible to participate in the NSPP. Expense recognized in relation to the NSPP for the six months ended June 30, 2022 and June 30, 2021 was $45 and $19, respectively. The Company has a Salary Continuation Agreement, (the “Agreement”), with an executive officer. In accordance with the Agreement, the executive will receive an annual benefit of $25 for twenty years following separation of service. If early termination occurs before December 31, 2022, the executive will not receive any benefit under the Agreement. The liability recorded for the Agreement was $350 and $312 at June 30, 2022 and December 31, 2021, respectively, and the related expense for the six months ended June 30, 2022 and June 30, 2021 was $38 and $45, respectively. The Company has a 401(k) plan that covers all employees subject to certain age and service requirements. The Company contributes 3% of each employee’s salary each pay period as a safe harbor contribution. The Company may also match employee contributions each year at the discretion of the Board of Directors. Expense recognized in relation to the 401(k) plan was $999 and $786 for the six months ended June 30, 2022 and June 30, 2021, respectively. The Company has an ESOP for eligible employees. Each year, the Company’s Board of Directors may approve a discretionary percentage of employees’ salaries to be contributed to the ESOP for eligible employees. The Board approved 1% of salaries for eligible employees in 2021. There was no expense related to the ESOP for the six months ended June 30, 2022. Expense related to the ESOP was $459 for the six months ended June 30, 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company and its subsidiaries are subject to U.S. federal income tax. In the ordinary course of business, we are routinely subject to audit by the Internal Revenue Service. Currently, the Company is subject to examination by taxing authorities for the 2018 tax return year and forward. A reconciliation of expected income tax expense (benefit) using the federal statutory rate of 21% for the three and six months ended June 30, 2022 and June 30, 2021 and actual income tax expense (benefit) is as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Federal tax based on federal corporate statutory rate $ (120) $ 3,664 $ (115) $ 5,778 State tax, net of federal effect (97) 1,307 (85) 1,420 Changes resulting from: Other, net (74) (539) (77) (209) Total income tax expense (benefit) $ (291) $ 4,432 $ (277) $ 6,989 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2022 | |
Banking And Thrift Disclsoure [Abstract] | |
Regulatory Matters | REGULATORY MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes that the Bank met all capital adequacy requirements to which it was subject at June 30, 2022 and December 31, 2021. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At June 30, 2022 and December 31, 2021, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s classification. Actual and required capital amounts and ratios for the Bank are presented below at June 30, 2022: Actual Required for Capital Adequacy Purposes To be Well Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 107,716 16.37 % $ 52,625 8.00 % $ 65,782 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 99,461 15.12 % $ 39,469 6.00 % $ 52,625 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 99,461 15.12 % $ 29,602 4.50 % $ 42,758 6.50 % Tier 1 Capital (to Average Assets) $ 99,461 11.37 % $ 34,998 4.00 % $ 43,747 5.00 % Actual and required capital amounts and ratios for the Bank are presented below at December 31, 2021: Actual Required for Capital Adequacy Purposes To be Well Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 106,002 21.25 % $ 39,909 8.00 % $ 49,886 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 99,656 19.98 % $ 29,932 6.00 % $ 39,909 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 99,656 19.98 % $ 22,449 4.50 % $ 32,426 6.50 % Tier 1 Capital (to Average Assets) $ 99,656 12.22 % $ 32,619 4.00 % $ 40,774 5.00 % Dividend Restrictions |
Mortgage Banking Activities
Mortgage Banking Activities | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Banking [Abstract] | |
Mortgage Banking Activities | MORTGAGE BANKING ACTIVITIES The following table presents the components of residential loan fee income for the three and six months ended June 30, 2022 and June 30, 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net gain realized on sale of residential loans held for sale $ 4,237 $ 22,899 $ 13,307 $ 51,843 Net change in fair value recognized on residential loans held for sale 960 546 (2,039) (4,787) Net change in fair value recognized on interest rate lock commitments 1,064 487 (268) (5,068) Net change in fair value recognized on mandatory and best efforts forward sales contracts 2,629 (2,998) 9,574 7,864 Mortgage banking fees 1,322 2,418 2,829 5,529 Residential loan fee income $ 10,212 $ 23,352 $ 23,403 $ 55,381 As part of its mortgage banking activities, the Company enters into interest rate lock commitments, which are commitments to originate loans where the interest rate on the loan is determined prior to funding and the clients have locked into that interest rate. The Company then locks in the loan and interest rate with an investor and commits to deliver the loan if settlement occurs (“best efforts”) or commits to deliver the locked loan in a binding (“mandatory”) delivery program with an investor. It is the Company’s practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. Interest rate lock commitments and mandatory commitments to deliver loans to investors are considered derivatives. At June 30, 2022 and December 31, 2021, the Company had interest rate lock commitments of $79,698 and $108,122, mandatory forwards contracts of $90,500 and $142,500, and forward sales contracts of $11,659 and $7,375, respectively. The fair value of these mortgage banking derivatives was reflected by a total derivative asset of $1,530 and $1,550 and a total derivative liability of $522 and $189 at June 30, 2022 and December 31, 2021, respectively. Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair values of these mortgage banking derivatives are included in residential loan fee income in the Consolidated Statements of Income. The net gains (losses) relating to free-standing derivative instruments used for risk management at June 30, 2022 and December 31, 2021 are summarized below: June 30, 2022 December 31, 2021 Mandatory forward sales contracts $ (162) $ (78) Best efforts forward sales contracts 83 27 Interest rate lock commitments 1,087 1,412 The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Notional Fair Notional Fair Included in other assets: Interest rate lock commitments $ 70,315 $ 1,164 $ 103,572 $ 1,435 Mandatory forward sales contracts 40,000 283 60,000 88 Best efforts forward sales contracts 11,659 83 7,375 27 Included in other liabilities: Interest rate lock commitments 9,383 77 4,550 23 Mandatory forward sales contracts 50,500 445 82,500 166 |
Loan Commitments and Other Rela
Loan Commitments and Other Related Activities | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loan Commitments and Other Related Activities | LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies that are used for loans are used to make such commitments, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance sheet risk at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 December 31, 2021 Unfunded loan commitments $ 39,606 $ 18,567 Unused lines of credit 127,735 52,076 Standby letters of credit 68 68 All unused lines of credit at June 30, 2022 and December 31, 2021 were variable rate lines of credit and the majority of unfunded loan commitments at June 30, 2022 and December 31, 2021 were commitments to fund variable rate loans. Unfunded loan commitments are generally entered into for periods of 90 days or less. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Basic: Net income (loss) $ (282) $ 13,016 $ (269) $ 20,527 Less: Preferred stock dividends 208 235 416 567 Net income available to (loss attributable to) common shareholders $ (490) $ 12,781 $ (685) $ 19,960 Weighted average common shares outstanding 4,014,445 3,821,993 4,009,002 3,666,418 Basic earnings (loss) per common share $ (0.12) $ 3.34 $ (0.17) $ 5.44 Diluted: Net income (loss) $ (282) $ 13,016 $ (269) $ 20,527 Less: Preferred stock dividends 208 235 416 567 Add: Series B preferred stock dividends — 92 — 279 Net income available to (loss attributable to) common shareholders $ (490) $ 12,873 $ (685) $ 20,239 Weighted average common shares outstanding for basic earnings per common share 4,014,445 3,821,993 4,009,002 3,666,418 Add: Dilutive effects of conversion of Series B preferred stock to common stock — 333,994 — 333,994 Add: Dilutive effects of assumed exercises of stock options/warrants — 159,035 — 153,522 Average shares and dilutive potential common shares 4,014,445 4,315,022 4,009,002 4,153,934 Diluted earnings (loss) per common share $ (0.12) $ 2.98 $ (0.17) $ 4.87 We use the treasury stock method to calculate the dilutive effect of outstanding equity awards in the denominator for diluted EPS to the extent the impact of such exchange would not be anti-dilutive. For the three and six months ended June 30, 2022 , 318,961 and 333,704, respectively, of potential shares of common stock issuable upon the potential exercise of outstanding convertible Series B preferred stock, stock options and warrants were excluded from diluted loss per share because the effect would have been anti-dilutive. There were no c ommon stock options exclud ed in computing diluted earnings per common share for the three and six months ended June 30, 2021. |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments | OPERATING SEGMENTS The Company has two reportable segments: Banking and Residential Mortgage Lending. The Banking segment provides a variety of traditional community banking services through its full-service banking centers located in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, and Belleair Bluffs, Florida, as well as SBA lending services throughout the nation. The Residential Mortgage Lending segment originates residential mortgage loans primarily for sale in the secondary market with offices throughout the nation. Loans and deposits provide revenue in the Banking segment and loan sales provide revenue in the Residential Lending segment. Segment profit and loss is measured by net income after income tax. Inter-segment transactions are recorded at cost and eliminated as part of the consolidation process. Due to the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Information about reportable segments and reconciliation of such information to the Consolidated Financial Statements follows: Three Months Ended Three Months Ended Residential Banking Consolidated Residential Banking Consolidated Interest income $ 867 $ 7,759 $ 8,626 $ 811 $ 14,186 $ 14,997 Interest expense 561 611 1,172 553 1,540 2,093 Net interest income 306 7,148 7,454 258 12,646 12,904 Provision for loan losses — 250 250 — — — Residential loan fee income 10,212 — 10,212 23,352 — 23,352 Internal transfer for portfolio loans originated 280 (280) — 97 (97) — Other noninterest income 5 7,682 7,687 15 14,845 14,860 Total noninterest income 10,497 7,402 17,899 23,464 14,748 38,212 Total noninterest expense 11,985 13,691 25,676 20,572 13,096 33,668 Income (loss) before income tax expense (benefit) (1,182) 609 (573) 3,150 14,298 17,448 Income tax expense (benefit) — (291) (291) 882 3,550 4,432 Net income (loss) $ (1,182) $ 900 $ (282) $ 2,268 $ 10,748 $ 13,016 Period end assets $ 76,718 $ 844,659 $ 921,377 $ 129,666 $ 1,068,563 $ 1,198,229 Six Months Ended Six Months Ended Residential Banking Consolidated Residential Banking Consolidated Interest income $ 1,604 $ 14,762 $ 16,366 $ 2,029 $ 27,860 $ 29,889 Interest expense 1,092 1,414 2,506 1,343 3,012 4,355 Net interest income 512 13,348 13,860 686 24,848 25,534 Provision for loan losses — (2,150) (2,150) — 2,000 2,000 Residential loan fee income 23,403 — 23,403 55,381 — 55,381 Internal transfer for portfolio loans originated 410 (410) — 166 (166) — Other noninterest income 11 13,353 13,364 27 15,963 15,990 Total noninterest income 23,824 12,943 36,767 55,574 15,797 71,371 Total noninterest expense 25,761 27,562 53,323 43,699 23,690 67,389 Income (loss) before income tax expense (benefit) (1,425) 879 (546) 12,561 14,955 27,516 Income tax expense (benefit) (68) (209) (277) 3,517 3,472 6,989 Net income (loss) $ (1,357) $ 1,088 $ (269) $ 9,044 $ 11,483 $ 20,527 Period end assets $ 76,718 $ 844,659 $ 921,377 $ 129,666 $ 1,068,563 $ 1,198,229 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements include BayFirst Financial Corp. and its wholly owned subsidiary, BayFirst National Bank, together referred to as “the Company”. These unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles followed within the financial services industry for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include all of the information or notes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements of BayFirst Financial Corp. for that period. |
Segment Reporting | The Company principally operates in two business segments, Banking and Residential Mortgage Lending. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The most significant estimates relate to the allowance for loan losses, SBA loan servicing rights, and fair value of residential loans held for sale and residential mortgage derivatives. |
Contingencies | Contingencies : |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted : In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) . This new guidance was issued to replace the incurred loss model for loans and other financial assets with an expected loss model, which is referred to as the CECL model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and debt securities held to maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e., loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in ASU 2016-13 require credit losses on investment securities available for sale to be presented as a valuation allowance rather than as a direct write-down thereon. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted; however, the Company has elected to adopt new or revised accounting standards using the delayed effective dates applicable to Emerging Growth Companies. Management is in the process of evaluating the impact of adoption of this ASU on its Consolidated Financial Statements, processes, and controls and is not currently able to reasonably estimate the impact of adoption on the Company’s consolidated financial position, results of operations; however, adoption is likely to lead to significant changes in accounting policies related to, and the methods employed in estimating, the allowance for credit losses. It is possible that the impact will be material to the Company’s consolidated financial position and results of operati ons. To date, the Company has established a CECL steering committee and has an implementation plan. The Company has segmented the loan portfolio based on similar risk characteristics and reviewed and selected methodologies for estimating expected credit losses. ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326)” (“ASU 2022-02”) eliminates the guidance on troubled debt restructurings and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. ASU 2022-02 is effective January 1, 2023 and is not expected to have a significant impact on our financial statement disclosures. |
Fair Value Measurement | SBA Loan Servicing Rights : On a quarterly basis, SBA loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount exceeds fair value, impairment is recorded so that the servicing asset is carried at fair value. The fair value of SBA servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. There were no SBA loan servicing rights carried at fair value at June 30, 2022 and December 31, 2021. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Securities Available for Sale | The amortized costs, gross unrealized gains and losses, and estimated fair values of investment securities available for sale and investment securities held to maturity at June 30, 2022 and December 31, 2021 are summarized as follows: June 30, 2022 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 10,098 $ — $ (189) $ 9,909 Mortgage-backed securities: U.S. Government-sponsored enterprises 4,296 — (522) 3,774 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 23,023 — (2,470) 20,553 Corporate bonds 11,339 — (292) 11,047 Total investment securities available for sale $ 48,756 $ — $ (3,473) $ 45,283 Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 2 $ — $ — $ 2 Corporate bonds 5,014 — (17) 4,997 Total investment securities held to maturity $ 5,016 $ — $ (17) $ 4,999 December 31, 2021 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 7,624 $ — $ (89) $ 7,535 Mortgage-backed securities: U.S. Government-sponsored enterprises 4,470 — (76) 4,394 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 19,370 — (406) 18,964 Total investment securities available for sale $ 31,464 $ — $ (571) $ 30,893 Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 2 $ — $ — $ 2 Total investment securities held to maturity $ 2 $ — $ — $ 2 |
Schedule of Securities Held to Maturity | The amortized costs, gross unrealized gains and losses, and estimated fair values of investment securities available for sale and investment securities held to maturity at June 30, 2022 and December 31, 2021 are summarized as follows: June 30, 2022 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 10,098 $ — $ (189) $ 9,909 Mortgage-backed securities: U.S. Government-sponsored enterprises 4,296 — (522) 3,774 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 23,023 — (2,470) 20,553 Corporate bonds 11,339 — (292) 11,047 Total investment securities available for sale $ 48,756 $ — $ (3,473) $ 45,283 Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 2 $ — $ — $ 2 Corporate bonds 5,014 — (17) 4,997 Total investment securities held to maturity $ 5,016 $ — $ (17) $ 4,999 December 31, 2021 Amortized Gross Gross Fair Investment securities available for sale: Asset-backed securities $ 7,624 $ — $ (89) $ 7,535 Mortgage-backed securities: U.S. Government-sponsored enterprises 4,470 — (76) 4,394 Collateralized mortgage obligations: U.S. Government-sponsored enterprises 19,370 — (406) 18,964 Total investment securities available for sale $ 31,464 $ — $ (571) $ 30,893 Investment securities held to maturity: Mortgage-backed securities: U.S. Government-sponsored enterprises $ 2 $ — $ — $ 2 Total investment securities held to maturity $ 2 $ — $ — $ 2 |
Schedule of Unrealized Loss on Investments | The following table summarizes investment securities with unrealized losses at June 30, 2022 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total June 30, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investment securities available for sale: Asset-backed securities $ 9,909 $ (189) $ — $ — $ 9,909 $ (189) Mortgage-backed securities: U.S. Government-sponsored enterprises 2,145 (236) 1,629 (286) 3,774 (522) Collateralized mortgage obligations: U.S. Government-sponsored enterprises 16,917 (2,015) 3,636 (455) 20,553 (2,470) Corporate Bonds 11,047 (292) — — 11,047 (292) Total investment securities held to maturity $ 40,018 $ (2,732) $ 5,265 $ (741) $ 45,283 $ (3,473) Investment securities held to maturity: Corporate Bonds $ 2,497 $ (17) $ — $ — $ 2,497 $ (17) Total investment securities held to maturity $ 2,497 $ (17) $ — $ — $ 2,497 $ (17) The following table summarizes investment securities with unrealized losses at December 31, 2021 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total December 31, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investment securities available for sale: Asset-backed securities $ 7,535 $ (89) $ — $ — $ 7,535 $ (89) Mortgage-backed securities: U.S. Government-sponsored enterprises 4,394 (76) — — 4,394 (76) Collateralized mortgage obligations: U.S. Government-sponsored enterprises 18,964 (406) — — 18,964 (406) Total investment securities available for sale $ 30,893 $ (571) $ — $ — $ 30,893 $ (571) |
Investments Classified by Contractual Maturity | Available for Sale Held to Maturity Amortized Fair Amortized Fair One to five years $ 11,339 $ 11,047 $ 4,014 $ 3,997 Five to ten years — — 1,000 1,000 Beyond ten years 37,417 34,236 2 2 Total $ 48,756 $ 45,283 $ 5,016 $ 4,999 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Loans for Investment at Amortized Cost | Loans held for investment, at amortized cost, at June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, Real estate: Residential $ 122,403 $ 87,235 Commercial 216,067 163,477 Construction and land 9,686 18,632 Commercial and industrial 168,990 217,155 Commercial and industrial - PPP 31,430 80,158 Consumer and other 35,845 3,581 Loans held for investment, at amortized cost, gross 584,421 570,238 Deferred loan costs, net 7,629 7,975 Discount on SBA 7(a) loans sold (1) (4,743) (3,866) Premium/(discount) on loans purchased 2,221 (13) Allowance for loan losses (9,564) (13,452) Loans held for investment, at amortized cost $ 579,964 $ 560,882 (1) The Company allocates the retained portion of loans sold based on relative fair value of the retained portion and the sold portion, which results in a discount on the retained portion. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Allowance for Loans Losses and Recorded Investment in Loans by Loan Segment | The following schedule presents the activity in the allowance for loan losses by loan segment for the three and six months ended June 30, 2022 and June 30, 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Balance, beginning of period $ 10,170 $ 22,017 $ 13,452 $ 21,162 Charge-offs: Real estate - commercial (53) — (53) — Commercial and industrial (939) (1,453) (1,970) (2,590) Consumer and other (26) (12) (41) (28) Total charge-offs (1,018) (1,465) (2,064) (2,618) Recoveries: Real estate - commercial 53 — 61 — Commercial and industrial 107 244 260 249 Consumer and other 2 1 5 4 Total recoveries 162 245 326 253 Net (charge-offs) (856) (1,220) (1,738) (2,365) Provision for loan losses 250 — (2,150) 2,000 Balance, end of period $ 9,564 $ 20,797 $ 9,564 $ 20,797 Net (charge-offs) to total average loans held for investment (0.57) % (0.42) % (0.59) % (0.38) % The following table presents the balance in the allowance for loan losses and the recorded investment in loans by loan segment and based on impairment method at June 30, 2022. The government guaranteed loan balances are included in the collectively evaluated for impairment balances. Real Estate- Real Estate- Real Estate - Commercial Commercial Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ 949 $ — $ — $ — $ 949 Collectively evaluated for impairment 589 1,133 38 5,815 — 1,038 2 8,615 Total $ 589 $ 1,133 $ 38 $ 6,764 $ — $ 1,038 $ 2 $ 9,564 Loans: Individually evaluated for impairment $ 246 $ 1,611 $ — $ 2,388 $ — $ — $ — $ 4,245 Collectively evaluated for impairment 122,157 214,456 9,686 166,602 31,430 35,845 — 580,176 Total $ 122,403 $ 216,067 $ 9,686 $ 168,990 $ 31,430 $ 35,845 $ — $ 584,421 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by loan segment and based on impairment method at December 31, 2021. The government guaranteed loan balances are included in the collectively evaluated for impairment balances. Real Estate- Real Estate- Real Estate - Commercial Commercial Consumer Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 91 $ — $ 902 $ — $ — $ — $ 993 Collectively evaluated for impairment 1,437 2,258 241 8,300 — 154 69 12,459 Total $ 1,437 $ 2,349 $ 241 $ 9,202 $ — $ 154 $ 69 $ 13,452 Loans: Individually evaluated for impairment $ 124 $ 2,900 $ — $ 902 $ — $ — $ — $ 3,926 Collectively evaluated for impairment 87,111 160,577 18,632 216,253 80,158 3,581 — 566,312 Total $ 87,235 $ 163,477 $ 18,632 $ 217,155 $ 80,158 $ 3,581 $ — $ 570,238 |
Summary of Information Related to Impaired Loans by Loan Segment | The following table presents information related to impaired loans by loan segment at and for the six months ended June 30, 2022: Unpaid Recorded Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized With no related allowance recorded: Real estate - residential $ 246 $ 246 $ — $ 165 $ — $ — Real estate - commercial 1,611 1,611 — 2,154 15 15 Subtotal 1,857 1,857 — 2,319 15 15 With an allowance recorded: Real estate - commercial — — — 102 — — Commercial and industrial 2,388 2,388 949 1,176 — — Subtotal 2,388 2,388 949 1,278 — — Total $ 4,245 $ 4,245 $ 949 $ 3,597 $ 15 $ 15 The following table presents information related to impaired loans by loan segment at and for the six months ended June 30, 2021: Unpaid Recorded Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized With no related allowance recorded: Real estate - commercial $ 2,591 $ 2,591 $ — $ 1,932 $ 20 $ — Subtotal 2,591 2,591 — 1,932 20 — With an allowance recorded: Real estate - commercial 89 89 37 583 — — Commercial and industrial 856 856 856 902 — — Subtotal 945 945 893 1,485 — — Total $ 3,536 $ 3,536 $ 893 $ 3,417 $ 20 $ — |
Schedule of Recorded Investment in Nonaccrual and Loans Past Due over 89 Days Still on Accrual by Loan Segment | The following table presents the recorded investment in nonaccrual and loans past due over 89 days still on accrual by loan segment at June 30, 2022 and December 31, 2021. In the following table, the recorded investment does not include the government guaranteed balance. Nonaccrual Loans Past Due Over June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Real estate - residential $ 246 $ 124 $ — $ 126 Real estate - commercial 1,611 2,815 — — Commercial and industrial 2,388 902 92 — Total $ 4,245 $ 3,841 $ 92 $ 126 |
Schedule of Aging of Recorded Investment in Past Due Loans | The following table presents the aging of the recorded investment in past due loans at June 30, 2022 by loan segment: 30-89 Days Greater Than Total Past Due Loans Not Past Due (1) Total Loans Real estate - residential $ 868 $ 246 $ 1,114 $ 121,289 $ 122,403 Real estate - commercial 1,157 609 1,766 214,301 216,067 Real estate - construction and land — — — 9,686 9,686 Commercial and industrial 1,655 2,300 3,955 165,035 168,990 Commercial and industrial - PPP — — — 31,430 31,430 Consumer and other 27 — 27 35,818 35,845 Total $ 3,707 $ 3,155 $ 6,862 $ 577,559 $ 584,421 (1) For the purposes of the table above, $6,678 of balances 30-89 days past due and $1,153 of balances greater than 89 days past due are reported as Loans Not Past Due as a result of the government guaranty. Of those loans, $15 of commercial and industrial PPP loans were delinquent as of June 30, 2022. The following table presents the aging of the recorded investment in past due loans at December 31, 2021 by loan segment: 30-89 Days Greater Than Total Past Due Loans Not Past Due (1) Total Loans Real estate - residential $ 57 $ 250 $ 307 $ 86,928 $ 87,235 Real estate - commercial 192 1,778 1,970 161,507 163,477 Real estate - construction and land — — — 18,632 18,632 Commercial and industrial 991 424 1,415 215,740 217,155 Commercial and industrial - PPP — — — 80,158 80,158 Consumer and other — — — 3,581 3,581 Total $ 1,240 $ 2,452 $ 3,692 $ 566,546 $ 570,238 (1) For the purposes of the table above, $10,360 of balances 30-89 days past due and $2,807 of balances greater than 89 days past due are reported as Loans Not Past Due as a result of the government guaranty, and $11,089 of commercial and industrial PPP loans are primarily due to delinquencies from borrowers with only a PPP loan and no other Bank product. These borrowers were non-responsive to requests for forgiveness applications and payments, and applications were subsequently submitted to the SBA for their 100% guarantee purchase from the Bank. |
Summary of Credit Exposure for the Loan Portfolio Disaggregated by Loan Segment | The table below sets forth credit exposure for the loan portfolio disaggregated by loan segment based on internally assigned risk ratings at June 30, 2022: Pass Special Substandard Doubtful Total Loans Real estate - residential $ 122,157 $ — $ 246 $ — $ 122,403 Real estate - commercial 214,383 73 1,611 — 216,067 Real estate - construction and land 9,686 — — — 9,686 Commercial and industrial 165,976 118 2,896 — 168,990 Commercial and industrial - PPP 31,430 — — — 31,430 Consumer and other 35,845 — — — 35,845 Loans held for investment, at amortized cost $ 579,477 $ 191 $ 4,753 $ — $ 584,421 The table below sets forth credit exposure for the loan portfolio disaggregated by loan segment based on internally assigned risk ratings at December 31, 2021: Pass Special Substandard Doubtful Total Loans Real estate - residential $ 87,233 $ — $ 2 $ — $ 87,235 Real estate - commercial 160,492 170 2,815 — 163,477 Real estate - construction and land 18,632 — — — 18,632 Commercial and industrial 212,544 1,850 2,761 — 217,155 Commercial and industrial - PPP 80,158 — — — 80,158 Consumer and other 3,581 — — — 3,581 Loans held for investment, at amortized cost $ 562,640 $ 2,020 $ 5,578 $ — $ 570,238 |
Schedule of Loans Classified as Troubled Debt Restructuring and Loan Modifications Related to Covid-19 | The following table presents loans classified as TDR at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Accruing Nonaccruing Accruing Nonaccruing Real estate - commercial $ — $ — $ 85 $ 1,116 Loan modifications related to COVID-19 at June 30, 2022 and December 31, 2021 are presented in the table below: June 30, 2022 December 31, 2021 Number of Outstanding Number of Loans Outstanding Recorded Investment Real estate - residential — $ — 1 $ 258 Commercial and industrial 11 459 23 1,113 Total loan modifications related to COVID-19 11 $ 459 24 $ 1,371 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis at June 30, 2022 are summarized below: Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Total Financial assets Investment securities available for sale $ — $ 45,283 $ — $ 45,283 Residential loans held for sale 14,750 59,958 — 74,708 SBA loans held for investment, at fair value — — 52,209 52,209 Interest rate lock commitments — — 1,164 1,164 Mandatory forward sales contracts 283 — — 283 Best efforts forward sales contracts — — 83 83 Financial liabilities Interest rate lock commitments $ — $ — $ 77 $ 77 Mandatory forward sales contracts 445 — — 445 Assets and liabilities measured at fair value on a recurring basis at December 31, 2021 are summarized below: Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Total Financial assets Investment securities available for sale $ — $ 30,893 $ — $ 30,893 Residential loans held for sale 43,837 70,294 — 114,131 SBA loans held for investment, at fair value — — 9,614 9,614 Interest rate lock commitments — — 1,435 1,435 Mandatory forward sales contracts 88 — — 88 Best efforts forward sales contracts — — 27 27 Financial liabilities Interest rate lock commitments $ — $ — $ 23 $ 23 Mandatory forward sales contracts 166 — — 166 |
Schedule of fair value for loans | The aggregate fair value, contractual balance, and gain at June 30, 2022 and December 31, 2021 for residential loans held for sale were as follows: June 30, 2022 December 31, 2021 Aggregate fair value $ 74,708 $ 114,131 Contractual balance 72,951 110,335 Gain $ 1,757 $ 3,796 The total amount of losses from changes in fair value and interest income included in earnings for the six months ended June 30, 2022 and June 30, 2021 for residential loans held for sale were as follows: Six Months Ended June 30, 2022 2021 Interest income $ 1,604 $ 2,030 Change in fair value (2,039) (4,787) Total (loss) $ (435) $ (2,757) The aggregate fair value, contractual balance, and gain at June 30, 2022 and December 31, 2021 for SBA loans held for investment, at fair value, were as follows: June 30, 2022 December 31, 2021 Aggregate fair value $ 52,209 $ 9,614 Contractual balance 49,517 9,433 Gain $ 2,692 $ 181 The total amount of gains and losses from changes in fair value and interest income included in earnings for the six months ended June 30, 2022 and June 30, 2021 for SBA loans held for investment, at fair value, were as follows: Six Months Ended June 30, 2022 2021 Interest income $ 341 $ 288 Change in fair value 2,511 79 Total gain $ 2,852 $ 367 |
Schedule of valuation technique and unobservable inputs used in the valuation of SBA loans held for investment, at fair value | The table below presents a reconciliation of SBA loans held for investment, at fair value, which were valued on a recurring basis and used significant unobservable inputs (Level 3) for the six months ended June 30, 2022 and June 30, 2021: Six Months Ended June 30, 2022 2021 Balance of SBA loans held for investment at fair value, beginning of period $ 9,614 $ 9,264 New SBA origination at fair value 41,745 — Principal payments (1,661) (674) Repurchase of guaranteed balances previously participated — 1,401 Total gains during the period 2,511 79 Balance of SBA loans held for investment at fair value, end of period $ 52,209 $ 10,070 The following table provides information about the valuation techniques and unobservable inputs used in the valuation of SBA loans held for investment, at fair value, interest rate lock commitments, and best efforts forward sales contracts falling within Level 3 of the fair value hierarchy at June 30, 2022 and December 31, 2021: Fair Value Valuation Unobservable Inputs Range (Weighted Average) June 30, 2022 SBA loans held for $ 52,209 Discounted Discount rate 4.00%-7.50% (4.81%) investment, at fair value cash flow Conditional prepayment rate 8.58%-9.07% (8.76%) Interest rate lock commitments 1,087 Quoted Market Prices Pull-through expectations 24.00%-100.00% (84.23%) Best efforts forward sales contracts 83 Quoted Market Prices Pull-through expectations 24.00%-80.00% (75.65%) December 31, 2021 SBA loans held for $ 9,614 Discounted Discount rate 3.22%-6.72% (4.22%) investment, at fair value cash flow Conditional prepayment rate 10.56%-10.56% (10.56%) Interest rate lock commitments 1,412 Quoted Market Prices Pull-through expectations 24.00%-100.00% (84.40%) Best efforts forward sales contracts 27 Quoted Market Prices Pull-through expectations 24.00%-80.00% (65.79%) |
Schedule of assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis at June 30, 2022 are summarized below: Fair Value Valuation Technique(s) Significant Discount % Range/Amount Impaired loans $ 1,768 Discounted appraisals, estimated net realizable value of collateral Collateral discounts 10% Assets measured at fair value on a nonrecurring basis at December 31, 2021 are summarized below: Fair Value Valuation Technique(s) Significant Discount % Range/Amount Impaired loans $ 1,614 Discounted appraisals, estimated net realizable value of collateral Collateral discounts 10% |
Summary of the carrying values and estimated values of financial instruments not carried at fair value | The carrying values and estimated fair values of financial instruments not carried at fair value, at June 30, 2022 and December 31, 2021 are as follows: June 30, 2022 December 31, 2021 Level Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 1 $ 67,936 $ 67,936 $ 109,727 $ 109,727 Time deposits in banks 2 4,881 4,773 2,381 2,437 Investment securities held to maturity 2 5,016 4,999 2 2 Restricted equity securities, at cost 2 3,274 3,274 2,827 2,827 Government guaranteed loans held for sale 2 — — 1,460 1,460 Loans held for investment, at amortized cost 3 579,964 577,950 560,882 569,394 Accrued interest receivable 3 3,190 3,190 3,564 3,564 SBA loan servicing rights 3 7,760 9,112 6,407 8,050 Mortgage loan servicing rights 3 192 192 212 212 Liabilities: Noninterest-bearing deposits 2 $ 103,613 $ 103,613 $ 83,638 $ 83,638 Interest-bearing transaction accounts 2 195,386 195,386 163,495 163,495 Savings and money market deposits 2 432,369 432,369 423,864 423,864 Time deposits 2 34,038 34,016 50,688 51,049 FHLB and FRB borrowings 2 40,000 40,000 — — Subordinated debentures 2 5,989 5,836 5,985 6,175 Notes payable 2 3,072 3,063 3,299 3,350 PPP Liquidity Facility 2 — — 69,654 69,654 Accrued interest payable 2 31 31 326 326 |
SBA Loan Servicing Activities (
SBA Loan Servicing Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of activity for SBA loan servicing rights | Activity for SBA loan servicing rights for the three and six months ended June 30, 2022 and June 30, 2021 follows: Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Beginning of period $ 7,399 $ 7,445 $ 6,407 $ 8,160 Additions 1,134 — 2,823 — Amortization (773) (831) (1,470) (1,546) End of period $ 7,760 $ 6,614 $ 7,760 $ 6,614 |
Schedule of net gain on sale of SBA loans | The following table presents the components of net gain on sale of SBA loans, excluding sale of PPP loans, for the three and six months ended June 30, 2022 and June 30, 2021: Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Gain on sale of guaranteed SBA loans $ 2,714 $ — $ 6,038 $ — Loss on sale of unguaranteed SBA loans — — (348) — Costs recognized on sale of SBA loans — — (44) — Fair value of servicing rights created 1,134 — 2,823 — Gain on sale of SBA loans, net $ 3,848 $ — $ 8,469 $ — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 December 31, 2021 Land and improvements $ 4,194 $ 4,194 Building and improvements 9,847 9,590 Leasehold improvements 2,624 2,433 Furniture, fixtures, and equipment 7,156 7,034 Fixed assets in process 13,965 12,247 Total premises and equipment 37,786 35,498 Accumulated depreciation and amortization (6,418) (5,827) Net premises and equipment $ 31,368 $ 29,671 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Summary of Total Lease Cost and Supplemental Information | For the three and six months ended June 30, 2022 and June 30, 2021, the components of total lease cost and supplemental information related to operating leases were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Operating lease cost $ 385 $ 361 $ 772 $ 722 Short-term lease cost 137 179 273 374 Total lease cost, net $ 522 $ 540 $ 1,045 $ 1,096 Three Months Ended Six Months Ended 2022 2021 2022 2021 Operating cash flows related to operating leases $ 388 $ 362 $ 768 $ 709 Right-of-use assets obtained in exchange for new operating lease liabilities — — — 136 $ 388 $ 362 $ 768 $ 845 |
Schedule of Future Minimum Lease Payments | The future minimum lease payments for operating leases, subsequent to June 30, 2022, as recorded on the balance sheet, are summarized as follows: 2022 $ 711 2023 1,171 2024 1,087 2025 686 2026 593 Thereafter 301 Total undiscounted lease payments $ 4,549 Less: imputed interest (535) Net lease liabilities $ 4,014 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Nonvested Restricted Shares | A summary of changes in the Company’s nonvested restricted shares for the six months ended June 30, 2022 follows: Shares Weighted-Average Nonvested at January 1, 2022 2,483 $ 14.86 Granted 34,925 21.50 Vested (3,921) 18.44 Forfeited (1,725) 21.45 Nonvested at June 30, 2022 31,762 $ 21.36 |
Summary of Activity in the Equity Plan | A summary of the activity in the Equity Plan for the six months ended June 30, 2022 follows: Shares Weighted Weighted Aggregate Outstanding at January 1, 2022 450,278 $ 15.64 Exercised (2,545) 15.14 Forfeited (11,370) 15.06 Outstanding at June 30, 2022 436,363 $ 15.65 7.13 $ 1,722 Vested and exercisable at June 30, 2022 273,325 $ 15.95 6.70 $ 997 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rate Reconciliation | A reconciliation of expected income tax expense (benefit) using the federal statutory rate of 21% for the three and six months ended June 30, 2022 and June 30, 2021 and actual income tax expense (benefit) is as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Federal tax based on federal corporate statutory rate $ (120) $ 3,664 $ (115) $ 5,778 State tax, net of federal effect (97) 1,307 (85) 1,420 Changes resulting from: Other, net (74) (539) (77) (209) Total income tax expense (benefit) $ (291) $ 4,432 $ (277) $ 6,989 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Banking And Thrift Disclsoure [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual and required capital amounts and ratios for the Bank are presented below at June 30, 2022: Actual Required for Capital Adequacy Purposes To be Well Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 107,716 16.37 % $ 52,625 8.00 % $ 65,782 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 99,461 15.12 % $ 39,469 6.00 % $ 52,625 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 99,461 15.12 % $ 29,602 4.50 % $ 42,758 6.50 % Tier 1 Capital (to Average Assets) $ 99,461 11.37 % $ 34,998 4.00 % $ 43,747 5.00 % Actual and required capital amounts and ratios for the Bank are presented below at December 31, 2021: Actual Required for Capital Adequacy Purposes To be Well Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets) $ 106,002 21.25 % $ 39,909 8.00 % $ 49,886 10.00 % Tier 1 Capital (to Risk Weighted Assets) $ 99,656 19.98 % $ 29,932 6.00 % $ 39,909 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 99,656 19.98 % $ 22,449 4.50 % $ 32,426 6.50 % Tier 1 Capital (to Average Assets) $ 99,656 12.22 % $ 32,619 4.00 % $ 40,774 5.00 % |
Mortgage Banking Activities (Ta
Mortgage Banking Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Mortgage Banking [Abstract] | |
Schedule of Components of Residential Loan Fee Income | The following table presents the components of residential loan fee income for the three and six months ended June 30, 2022 and June 30, 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net gain realized on sale of residential loans held for sale $ 4,237 $ 22,899 $ 13,307 $ 51,843 Net change in fair value recognized on residential loans held for sale 960 546 (2,039) (4,787) Net change in fair value recognized on interest rate lock commitments 1,064 487 (268) (5,068) Net change in fair value recognized on mandatory and best efforts forward sales contracts 2,629 (2,998) 9,574 7,864 Mortgage banking fees 1,322 2,418 2,829 5,529 Residential loan fee income $ 10,212 $ 23,352 $ 23,403 $ 55,381 |
Schedule of Net Gains (Losses) Relating to Free-Standing Derivative Instruments Used for Risk Management | The net gains (losses) relating to free-standing derivative instruments used for risk management at June 30, 2022 and December 31, 2021 are summarized below: June 30, 2022 December 31, 2021 Mandatory forward sales contracts $ (162) $ (78) Best efforts forward sales contracts 83 27 Interest rate lock commitments 1,087 1,412 |
Schedule of Derivative Assets at Fair Value | The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets at June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Notional Fair Notional Fair Included in other assets: Interest rate lock commitments $ 70,315 $ 1,164 $ 103,572 $ 1,435 Mandatory forward sales contracts 40,000 283 60,000 88 Best efforts forward sales contracts 11,659 83 7,375 27 Included in other liabilities: Interest rate lock commitments 9,383 77 4,550 23 Mandatory forward sales contracts 50,500 445 82,500 166 |
Schedule of Derivative Liabilities at Fair Value | June 30, 2022 December 31, 2021 Notional Fair Notional Fair Included in other assets: Interest rate lock commitments $ 70,315 $ 1,164 $ 103,572 $ 1,435 Mandatory forward sales contracts 40,000 283 60,000 88 Best efforts forward sales contracts 11,659 83 7,375 27 Included in other liabilities: Interest rate lock commitments 9,383 77 4,550 23 Mandatory forward sales contracts 50,500 445 82,500 166 |
Loan Commitments and Other Re_2
Loan Commitments and Other Related Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments With Off-Balance Sheet Risk | The contractual amounts of financial instruments with off-balance sheet risk at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 December 31, 2021 Unfunded loan commitments $ 39,606 $ 18,567 Unused lines of credit 127,735 52,076 Standby letters of credit 68 68 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 Basic: Net income (loss) $ (282) $ 13,016 $ (269) $ 20,527 Less: Preferred stock dividends 208 235 416 567 Net income available to (loss attributable to) common shareholders $ (490) $ 12,781 $ (685) $ 19,960 Weighted average common shares outstanding 4,014,445 3,821,993 4,009,002 3,666,418 Basic earnings (loss) per common share $ (0.12) $ 3.34 $ (0.17) $ 5.44 Diluted: Net income (loss) $ (282) $ 13,016 $ (269) $ 20,527 Less: Preferred stock dividends 208 235 416 567 Add: Series B preferred stock dividends — 92 — 279 Net income available to (loss attributable to) common shareholders $ (490) $ 12,873 $ (685) $ 20,239 Weighted average common shares outstanding for basic earnings per common share 4,014,445 3,821,993 4,009,002 3,666,418 Add: Dilutive effects of conversion of Series B preferred stock to common stock — 333,994 — 333,994 Add: Dilutive effects of assumed exercises of stock options/warrants — 159,035 — 153,522 Average shares and dilutive potential common shares 4,014,445 4,315,022 4,009,002 4,153,934 Diluted earnings (loss) per common share $ (0.12) $ 2.98 $ (0.17) $ 4.87 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Information About Reportable Segments | Information about reportable segments and reconciliation of such information to the Consolidated Financial Statements follows: Three Months Ended Three Months Ended Residential Banking Consolidated Residential Banking Consolidated Interest income $ 867 $ 7,759 $ 8,626 $ 811 $ 14,186 $ 14,997 Interest expense 561 611 1,172 553 1,540 2,093 Net interest income 306 7,148 7,454 258 12,646 12,904 Provision for loan losses — 250 250 — — — Residential loan fee income 10,212 — 10,212 23,352 — 23,352 Internal transfer for portfolio loans originated 280 (280) — 97 (97) — Other noninterest income 5 7,682 7,687 15 14,845 14,860 Total noninterest income 10,497 7,402 17,899 23,464 14,748 38,212 Total noninterest expense 11,985 13,691 25,676 20,572 13,096 33,668 Income (loss) before income tax expense (benefit) (1,182) 609 (573) 3,150 14,298 17,448 Income tax expense (benefit) — (291) (291) 882 3,550 4,432 Net income (loss) $ (1,182) $ 900 $ (282) $ 2,268 $ 10,748 $ 13,016 Period end assets $ 76,718 $ 844,659 $ 921,377 $ 129,666 $ 1,068,563 $ 1,198,229 Six Months Ended Six Months Ended Residential Banking Consolidated Residential Banking Consolidated Interest income $ 1,604 $ 14,762 $ 16,366 $ 2,029 $ 27,860 $ 29,889 Interest expense 1,092 1,414 2,506 1,343 3,012 4,355 Net interest income 512 13,348 13,860 686 24,848 25,534 Provision for loan losses — (2,150) (2,150) — 2,000 2,000 Residential loan fee income 23,403 — 23,403 55,381 — 55,381 Internal transfer for portfolio loans originated 410 (410) — 166 (166) — Other noninterest income 11 13,353 13,364 27 15,963 15,990 Total noninterest income 23,824 12,943 36,767 55,574 15,797 71,371 Total noninterest expense 25,761 27,562 53,323 43,699 23,690 67,389 Income (loss) before income tax expense (benefit) (1,425) 879 (546) 12,561 14,955 27,516 Income tax expense (benefit) (68) (209) (277) 3,517 3,472 6,989 Net income (loss) $ (1,357) $ 1,088 $ (269) $ 9,044 $ 11,483 $ 20,527 Period end assets $ 76,718 $ 844,659 $ 921,377 $ 129,666 $ 1,068,563 $ 1,198,229 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) | 6 Months Ended | |
May 10, 2021 | Jun. 30, 2022 segment | |
Accounting Policies [Abstract] | ||
Number of business segments | 2 | |
Stock split conversion | 1.5 |
Investment Securities - Schedul
Investment Securities - Schedule of Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 48,756 | $ 31,464 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3,473) | (571) |
Fair Value | 45,283 | 30,893 |
Investment securities held to maturity: | ||
Amortized Cost | 5,016 | 2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (17) | 0 |
Investment securities held to maturity | 4,999 | 2 |
Asset-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 10,098 | 7,624 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (189) | (89) |
Fair Value | 9,909 | 7,535 |
Mortgage-backed securities, U.S. Government-sponsored enterprises | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 4,296 | 4,470 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (522) | (76) |
Fair Value | 3,774 | 4,394 |
Investment securities held to maturity: | ||
Amortized Cost | 2 | 2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Investment securities held to maturity | 2 | 2 |
Collateralized mortgage obligations, U.S. Government-sponsored enterprises | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 23,023 | 19,370 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,470) | (406) |
Fair Value | 20,553 | $ 18,964 |
Corporate bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 11,339 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (292) | |
Fair Value | 11,047 | |
Investment securities held to maturity: | ||
Amortized Cost | 5,014 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (17) | |
Investment securities held to maturity | $ 4,997 |
Investment Securities - Investm
Investment Securities - Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
One to five years | $ 4,014 | |
Five to ten years | 1,000 | |
Beyond ten years | 2 | |
Total | 5,016 | $ 2 |
Fair Value | ||
One to five years | 3,997 | |
Five to ten years | 1,000 | |
Beyond ten years | 2 | |
Total | 4,999 | 2 |
Amortized Cost | ||
One to five years | 11,339 | |
Five to ten years | 0 | |
Beyond ten years | 37,417 | |
Amortized Cost | 48,756 | 31,464 |
Fair Value | ||
One to five years | 11,047 | |
Five to ten years | 0 | |
Beyond ten years | 34,236 | |
Total | $ 45,283 | $ 30,893 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2022 USD ($) security | |
Investments, Debt and Equity Securities [Abstract] | |
Transferred to held to maturity | $ | $ 1,500 |
Investment portfolio, number of securities | 22 |
Number of securities in unrealized loss position | 18 |
Investment Securities - Sched_2
Investment Securities - Schedule of Unrealized Loss on Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investment securities available for sale: | ||
AFS, Less than 12 months, Fair Value | $ 40,018 | $ 30,893 |
AFS, Less than 12 months, Gross Unrealized Losses | (2,732) | (571) |
AFS, 12 months or longer, Fair Value | 5,265 | 0 |
AFS, 12 months or longer, Gross Unrealized Losses | (741) | 0 |
AFS, Total Fair Value | 45,283 | 30,893 |
AFS, Total Gross Unrealized Losses | (3,473) | (571) |
Investment securities held to maturity: | ||
HTM, Less than 12 months, Fair Value | 2,497 | |
HTM, Less than 12 months, Gross Unrealized Losses | (17) | |
HTM, 12 months or longer, Fair Value | 0 | |
HTM, 12 months or longer, Gross Unrealized Losses | 0 | |
HTM, Total Fair Value | 2,497 | |
HTM, Total Gross Unrealized Losses | (17) | |
Asset-backed securities | ||
Investment securities available for sale: | ||
AFS, Less than 12 months, Fair Value | 9,909 | 7,535 |
AFS, Less than 12 months, Gross Unrealized Losses | (189) | (89) |
AFS, 12 months or longer, Fair Value | 0 | 0 |
AFS, 12 months or longer, Gross Unrealized Losses | 0 | 0 |
AFS, Total Fair Value | 9,909 | 7,535 |
AFS, Total Gross Unrealized Losses | (189) | (89) |
Mortgage-backed securities, U.S. Government-sponsored enterprises | ||
Investment securities available for sale: | ||
AFS, Less than 12 months, Fair Value | 2,145 | 4,394 |
AFS, Less than 12 months, Gross Unrealized Losses | (236) | (76) |
AFS, 12 months or longer, Fair Value | 1,629 | 0 |
AFS, 12 months or longer, Gross Unrealized Losses | (286) | 0 |
AFS, Total Fair Value | 3,774 | 4,394 |
AFS, Total Gross Unrealized Losses | (522) | (76) |
Collateralized mortgage obligations, U.S. Government-sponsored enterprises | ||
Investment securities available for sale: | ||
AFS, Less than 12 months, Fair Value | 16,917 | 18,964 |
AFS, Less than 12 months, Gross Unrealized Losses | (2,015) | (406) |
AFS, 12 months or longer, Fair Value | 3,636 | 0 |
AFS, 12 months or longer, Gross Unrealized Losses | (455) | 0 |
AFS, Total Fair Value | 20,553 | 18,964 |
AFS, Total Gross Unrealized Losses | (2,470) | $ (406) |
Corporate bonds | ||
Investment securities available for sale: | ||
AFS, Less than 12 months, Fair Value | 11,047 | |
AFS, Less than 12 months, Gross Unrealized Losses | (292) | |
AFS, 12 months or longer, Fair Value | 0 | |
AFS, 12 months or longer, Gross Unrealized Losses | 0 | |
AFS, Total Fair Value | 11,047 | |
AFS, Total Gross Unrealized Losses | (292) | |
Investment securities held to maturity: | ||
HTM, Less than 12 months, Fair Value | 2,497 | |
HTM, Less than 12 months, Gross Unrealized Losses | (17) | |
HTM, 12 months or longer, Fair Value | 0 | |
HTM, 12 months or longer, Gross Unrealized Losses | 0 | |
HTM, Total Fair Value | 2,497 | |
HTM, Total Gross Unrealized Losses | $ (17) |
Loans - Schedule of Loans for I
Loans - Schedule of Loans for Investment at Amortized Cost (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | $ 584,421 | $ 570,238 | ||||
Deferred loan costs, net | 7,629 | 7,975 | ||||
Discount on SBA 7(a) loans sold | (4,743) | (3,866) | ||||
Premium/(discount) on loans purchased | 2,221 | (13) | ||||
Allowance for loan losses | (9,564) | $ (10,170) | (13,452) | $ (20,797) | $ (22,017) | $ (21,162) |
Loans held for investment, at amortized cost | 579,964 | 560,882 | ||||
Real Estate- Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 122,403 | 87,235 | ||||
Allowance for loan losses | (589) | (1,437) | ||||
Real Estate- Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 216,067 | 163,477 | ||||
Allowance for loan losses | (1,133) | (2,349) | ||||
Real Estate - Construction and Land | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 9,686 | 18,632 | ||||
Allowance for loan losses | (38) | (241) | ||||
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 168,990 | 217,155 | ||||
Allowance for loan losses | (6,764) | (9,202) | ||||
Commercial and industrial - PPP | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 31,430 | 80,158 | ||||
Allowance for loan losses | 0 | 0 | ||||
Consumer and other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 35,845 | 3,581 | ||||
Allowance for loan losses | $ (1,038) | $ (154) |
Allowance for Loan Losses - Sch
Allowance for Loan Losses - Schedule of Allowance for Loans Losses by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 10,170 | $ 22,017 | $ 13,452 | $ 21,162 |
Total charge-offs | (1,018) | (1,465) | (2,064) | (2,618) |
Total recoveries | 162 | 245 | 326 | 253 |
Net (charge-offs) | (856) | (1,220) | (1,738) | (2,365) |
Provision for loan losses | 250 | 0 | (2,150) | 2,000 |
Balance, end of period | $ 9,564 | $ 20,797 | $ 9,564 | $ 20,797 |
Net (charge-offs) to total average loans held for investment | (0.57%) | (0.42%) | (0.59%) | (0.38%) |
Real Estate- Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 2,349 | |||
Total charge-offs | $ (53) | $ 0 | (53) | $ 0 |
Total recoveries | 53 | 0 | 61 | 0 |
Balance, end of period | 1,133 | 1,133 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 9,202 | |||
Total charge-offs | (939) | (1,453) | (1,970) | (2,590) |
Total recoveries | 107 | 244 | 260 | 249 |
Balance, end of period | 6,764 | 6,764 | ||
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | 154 | |||
Total charge-offs | (26) | (12) | (41) | (28) |
Total recoveries | 2 | $ 1 | 5 | $ 4 |
Balance, end of period | $ 1,038 | $ 1,038 |
Allowance for Loan Losses - S_2
Allowance for Loan Losses - Schedule of Allowance for Loans Losses and Recorded Investment in Loans by Loan Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | $ 949 | $ 993 | ||||
Collectively evaluated for impairment | 8,615 | 12,459 | ||||
Total | 9,564 | $ 10,170 | 13,452 | $ 20,797 | $ 22,017 | $ 21,162 |
Individually evaluated for impairment | 4,245 | 3,926 | ||||
Collectively evaluated for impairment | 580,176 | 566,312 | ||||
Total | 584,421 | 570,238 | ||||
Real Estate- Residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 589 | 1,437 | ||||
Total | 589 | 1,437 | ||||
Individually evaluated for impairment | 246 | 124 | ||||
Collectively evaluated for impairment | 122,157 | 87,111 | ||||
Total | 122,403 | 87,235 | ||||
Real Estate- Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 91 | ||||
Collectively evaluated for impairment | 1,133 | 2,258 | ||||
Total | 1,133 | 2,349 | ||||
Individually evaluated for impairment | 1,611 | 2,900 | ||||
Collectively evaluated for impairment | 214,456 | 160,577 | ||||
Total | 216,067 | 163,477 | ||||
Real Estate - Construction and Land | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 38 | 241 | ||||
Total | 38 | 241 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 9,686 | 18,632 | ||||
Total | 9,686 | 18,632 | ||||
Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 949 | 902 | ||||
Collectively evaluated for impairment | 5,815 | 8,300 | ||||
Total | 6,764 | 9,202 | ||||
Individually evaluated for impairment | 2,388 | 902 | ||||
Collectively evaluated for impairment | 166,602 | 216,253 | ||||
Total | 168,990 | 217,155 | ||||
Commercial and industrial - PPP | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total | 0 | 0 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 31,430 | 80,158 | ||||
Total | 31,430 | 80,158 | ||||
Consumer and other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,038 | 154 | ||||
Total | 1,038 | 154 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 35,845 | 3,581 | ||||
Total | 35,845 | 3,581 | ||||
Unallocated | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 2 | 69 | ||||
Total | 2 | 69 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total | $ 0 | $ 0 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Information Related to Impaired Loans by Loan Segment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Related Allowance Recorded - Unpaid Principal Balance | $ 1,857 | $ 2,591 |
Impaired Loans with No Related Allowance Recorded - Recorded Investment | 1,857 | 2,591 |
Impaired Loans with No Related Allowance Recorded - Average Recorded Investment | 2,319 | 1,932 |
Impaired Loans with No Related Allowance Recorded - Interest Income Recognized | 15 | 20 |
Impaired Loans with No Related Allowance Recorded - Cash Basis Interest Recognized | 15 | 0 |
Impaired Loans with an Allowance Recorded - Unpaid Principal Balance | 2,388 | 945 |
Impaired Loans with an Allowance Recorded - Recorded Investment | 2,388 | 945 |
Impaired Loans with an Allowance Recorded - Allowance for Loan Losses Allocated | 949 | 893 |
Impaired Loans with an Allowance Recorded - Average Recorded Investment | 1,278 | 1,485 |
Impaired Loans with an Allowance Recorded - Interest Income Recognized | 0 | 0 |
Impaired Loans with an Allowance Recorded - Cash Basis Interest Recognized | 0 | 0 |
Impaired Loans - Unpaid Principal Balance | 4,245 | 3,536 |
Impaired Loans - Recorded Investment | 4,245 | 3,536 |
Impaired Loans - Average Recorded Investment | 3,597 | 3,417 |
Impaired Loans - Interest Income Recognized | 15 | 20 |
Impaired Loans - Cash Basis Interest Recognized | 15 | 0 |
Real Estate- Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Related Allowance Recorded - Unpaid Principal Balance | 246 | |
Impaired Loans with No Related Allowance Recorded - Recorded Investment | 246 | |
Impaired Loans with No Related Allowance Recorded - Average Recorded Investment | 165 | |
Impaired Loans with No Related Allowance Recorded - Interest Income Recognized | 0 | |
Impaired Loans with No Related Allowance Recorded - Cash Basis Interest Recognized | 0 | |
Real Estate- Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Related Allowance Recorded - Unpaid Principal Balance | 1,611 | 2,591 |
Impaired Loans with No Related Allowance Recorded - Recorded Investment | 1,611 | 2,591 |
Impaired Loans with No Related Allowance Recorded - Average Recorded Investment | 2,154 | 1,932 |
Impaired Loans with No Related Allowance Recorded - Interest Income Recognized | 15 | 20 |
Impaired Loans with No Related Allowance Recorded - Cash Basis Interest Recognized | 15 | 0 |
Impaired Loans with an Allowance Recorded - Unpaid Principal Balance | 0 | 89 |
Impaired Loans with an Allowance Recorded - Recorded Investment | 0 | 89 |
Impaired Loans with an Allowance Recorded - Allowance for Loan Losses Allocated | 0 | 37 |
Impaired Loans with an Allowance Recorded - Average Recorded Investment | 102 | 583 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with an Allowance Recorded - Unpaid Principal Balance | 2,388 | 856 |
Impaired Loans with an Allowance Recorded - Recorded Investment | 2,388 | 856 |
Impaired Loans with an Allowance Recorded - Allowance for Loan Losses Allocated | 949 | 856 |
Impaired Loans with an Allowance Recorded - Average Recorded Investment | $ 1,176 | $ 902 |
Allowance for Loan Losses - Nar
Allowance for Loan Losses - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Impaired loans, unsold guaranteed balance | $ 6,192 | $ 6,197 |
Estimated amount of loan loss reserves impaired | $ 38 |
Allowance for Loan Losses - S_3
Allowance for Loan Losses - Schedule of Recorded Investment in Nonaccrual and Loans Past Due over 89 Days Still on Accrual by Loan Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | $ 4,245 | $ 3,841 |
Loans Past Due Over 89 Days Still Accruing | 92 | 126 |
Real Estate- Residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 246 | 124 |
Loans Past Due Over 89 Days Still Accruing | 0 | 126 |
Real Estate- Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 1,611 | 2,815 |
Loans Past Due Over 89 Days Still Accruing | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual | 2,388 | 902 |
Loans Past Due Over 89 Days Still Accruing | $ 92 | $ 0 |
Allowance for Loan Losses - S_4
Allowance for Loan Losses - Schedule of Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | $ 584,421 | $ 570,238 |
30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 3,707 | 1,240 |
Government guaranteed loan balance | 6,678 | 10,360 |
Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 3,155 | 2,452 |
Government guaranteed loan balance | 1,153 | 2,807 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 6,862 | 3,692 |
Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 577,559 | 566,546 |
Real Estate- Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 122,403 | 87,235 |
Real Estate- Residential | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 868 | 57 |
Real Estate- Residential | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 246 | 250 |
Real Estate- Residential | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 1,114 | 307 |
Real Estate- Residential | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 121,289 | 86,928 |
Real Estate- Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 216,067 | 163,477 |
Real Estate- Commercial | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 1,157 | 192 |
Real Estate- Commercial | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 609 | 1,778 |
Real Estate- Commercial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 1,766 | 1,970 |
Real Estate- Commercial | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 214,301 | 161,507 |
Real Estate - Construction and Land | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 9,686 | 18,632 |
Real Estate - Construction and Land | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate - Construction and Land | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate - Construction and Land | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate - Construction and Land | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 9,686 | 18,632 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 168,990 | 217,155 |
Commercial and industrial | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 1,655 | 991 |
Commercial and industrial | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 2,300 | 424 |
Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 3,955 | 1,415 |
Commercial and industrial | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 165,035 | 215,740 |
Commercial and industrial - PPP | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 31,430 | 80,158 |
Commercial and industrial - PPP | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial and industrial - PPP | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial and industrial - PPP | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial and industrial - PPP | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 31,430 | 80,158 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 35,845 | 3,581 |
Consumer and other | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 27 | 0 |
Consumer and other | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | 0 |
Consumer and other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 27 | 0 |
Consumer and other | Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 35,818 | 3,581 |
PPP Loan Delinquencies | ||
Financing Receivable, Past Due [Line Items] | ||
Government guaranteed loan balance | $ 11,089 | |
Delinquent loans | $ 15 |
Allowance for Loan Losses - S_5
Allowance for Loan Losses - Summary of Credit Exposure for the Loan Portfolio Disaggregated by Loan Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | $ 584,421 | $ 570,238 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 579,477 | 562,640 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 191 | 2,020 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 4,753 | 5,578 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate- Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 122,403 | 87,235 |
Real Estate- Residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 122,157 | 87,233 |
Real Estate- Residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate- Residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 246 | 2 |
Real Estate- Residential | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate- Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 216,067 | 163,477 |
Real Estate- Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 214,383 | 160,492 |
Real Estate- Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 73 | 170 |
Real Estate- Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,611 | 2,815 |
Real Estate- Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate - Construction and Land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 9,686 | 18,632 |
Real Estate - Construction and Land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 9,686 | 18,632 |
Real Estate - Construction and Land | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate - Construction and Land | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real Estate - Construction and Land | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 168,990 | 217,155 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 165,976 | 212,544 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 118 | 1,850 |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 2,896 | 2,761 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial and industrial - PPP | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 31,430 | 80,158 |
Commercial and industrial - PPP | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 31,430 | 80,158 |
Commercial and industrial - PPP | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial and industrial - PPP | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial and industrial - PPP | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 35,845 | 3,581 |
Consumer and other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 35,845 | 3,581 |
Consumer and other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Consumer and other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Consumer and other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | $ 0 | $ 0 |
Allowance for Loan Losses - S_6
Allowance for Loan Losses - Schedule of Loans Classified as Troubled Debt Restructuring (Details) - Real Estate- Commercial - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing receivable, TBR, accruing | $ 0 | $ 85 |
Financing receivable, TBR, nonaccruing | $ 0 | $ 1,116 |
Allowance for Loan Losses - S_7
Allowance for Loan Losses - Schedule of Loan Modifications Related to Covid-19 (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 11 | 24 |
Outstanding Recorded Investment | $ | $ 459 | $ 1,371 |
Real Estate- Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 0 | 1 |
Outstanding Recorded Investment | $ | $ 0 | $ 258 |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 11 | 23 |
Outstanding Recorded Investment | $ | $ 459 | $ 1,113 |
Fair Value - Schedule of assets
Fair Value - Schedule of assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets | ||
Investment securities available for sale | $ 45,283 | $ 30,893 |
Residential loans held for sale | 74,708 | 114,131 |
SBA loans held for investment, at fair value | 52,209 | 9,614 |
Fair Value, Recurring | ||
Financial assets | ||
Investment securities available for sale | 45,283 | 30,893 |
Residential loans held for sale | 74,708 | 114,131 |
SBA loans held for investment, at fair value | 52,209 | 9,614 |
Fair Value, Recurring | Interest rate lock commitments | ||
Financial assets | ||
Derivative assets | 1,164 | 1,435 |
Financial liabilities | ||
Derivative liabilities | 77 | 23 |
Fair Value, Recurring | Mandatory forward sales contracts | ||
Financial assets | ||
Derivative assets | 283 | 88 |
Financial liabilities | ||
Derivative liabilities | 445 | 166 |
Fair Value, Recurring | Best efforts forward sales contracts | ||
Financial assets | ||
Derivative assets | 83 | 27 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Investment securities available for sale | 0 | 0 |
Residential loans held for sale | 14,750 | 43,837 |
SBA loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments | ||
Financial assets | ||
Derivative assets | 0 | 0 |
Financial liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mandatory forward sales contracts | ||
Financial assets | ||
Derivative assets | 283 | 88 |
Financial liabilities | ||
Derivative liabilities | 445 | 166 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Best efforts forward sales contracts | ||
Financial assets | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Investment securities available for sale | 45,283 | 30,893 |
Residential loans held for sale | 59,958 | 70,294 |
SBA loans held for investment, at fair value | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | ||
Financial assets | ||
Derivative assets | 0 | 0 |
Financial liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Mandatory forward sales contracts | ||
Financial assets | ||
Derivative assets | 0 | 0 |
Financial liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Best efforts forward sales contracts | ||
Financial assets | ||
Derivative assets | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Investment securities available for sale | 0 | 0 |
Residential loans held for sale | 0 | 0 |
SBA loans held for investment, at fair value | 52,209 | 9,614 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | ||
Financial assets | ||
Derivative assets | 1,164 | 1,435 |
Financial liabilities | ||
Derivative liabilities | 77 | 23 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Mandatory forward sales contracts | ||
Financial assets | ||
Derivative assets | 0 | 0 |
Financial liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Best efforts forward sales contracts | ||
Financial assets | ||
Derivative assets | $ 83 | $ 27 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Fair value option, loans held as assets, 90 days or more past due | $ 0 | $ 0 |
Fair value option, loans held as assets, aggregate amount in nonaccrual status | $ 0 | $ 0 |
Fair Value - Summary of loans a
Fair Value - Summary of loans accounted for under the fair value option (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Residential loans held for sale | $ 74,708 | $ 74,708 | $ 114,131 | ||
Loans Held For Sale | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Contractual balance | 72,951 | 72,951 | 110,335 | ||
Gain | 1,757 | 1,757 | 3,796 | ||
Change in fair value | 960 | $ 546 | (2,039) | $ (4,787) | |
Total (loss) | (435) | (2,757) | |||
Interest income | 1,604 | 2,030 | |||
SBA Loan | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Contractual balance | 49,517 | 49,517 | 9,433 | ||
Gain | 2,692 | 2,692 | $ 181 | ||
Change in fair value | $ 2,708 | $ 7 | 2,511 | 79 | |
Total (loss) | 2,852 | 367 | |||
Interest income | $ 341 | $ 288 |
Fair Value - Schedule of SBA lo
Fair Value - Schedule of SBA loans held for investment, at fair value, which were valued on a recurring basis and used significant unobservable inputs (Details) - Loans Receivable - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance of SBA loans held for investment at fair value, beginning of period | $ 9,614 | $ 9,264 |
New SBA origination at fair value | 41,745 | 0 |
Principal payments | (1,661) | (674) |
Repurchase of guaranteed balances previously participated | 0 | 1,401 |
Total gains during the period | 2,511 | 79 |
Balance of SBA loans held for investment at fair value, end of period | $ 52,209 | $ 10,070 |
Fair Value - Schedule of valuat
Fair Value - Schedule of valuation technique and unobservable inputs used in the valuation of SBA loans held for investment, at fair value (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, at fair value | $ 52,209 | $ 9,614 |
Fair Value, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, at fair value | 52,209 | 9,614 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, at fair value | 52,209 | 9,614 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, net, measurement input | 1,087 | 1,412 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Best efforts forward sales contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, net, measurement input | $ 83 | $ 27 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Minimum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, measurement input | 0.0400 | 0.0322 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Minimum | Conditional prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, measurement input | 0.0858 | 0.1056 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Minimum | Pull-through expectations | Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, net | 0.2400 | 0.2400 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Minimum | Pull-through expectations | Best efforts forward sales contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, net | 0.2400 | 0.2400 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Maximum | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, measurement input | 0.0750 | 0.0672 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Maximum | Conditional prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, measurement input | 0.0907 | 0.1056 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Maximum | Pull-through expectations | Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, net | 1 | 1 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Maximum | Pull-through expectations | Best efforts forward sales contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, net | 0.8000 | 0.8000 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Weighted Average | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, measurement input | 0.0481 | 0.0422 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Weighted Average | Conditional prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
SBA loans held for investment, measurement input | 0.0876 | 0.1056 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Weighted Average | Pull-through expectations | Interest rate lock commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, net | 0.8423 | 0.8440 |
Significant Unobservable Inputs (Level 3) | Fair Value, Recurring | Weighted Average | Pull-through expectations | Best efforts forward sales contracts | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivatives, net | 0.7565 | 0.6579 |
Fair Value - Schedule of asse_2
Fair Value - Schedule of assets measured at fair value on a nonrecurring basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Nonrecurring [Line Items] | ||
Impaired loans | $ 1,768 | $ 1,614 |
Discount rate | ||
Fair Value, Nonrecurring [Line Items] | ||
Impaired loans, measurement input | 1,000,000% | |
Minimum | Discount rate | ||
Fair Value, Nonrecurring [Line Items] | ||
Impaired loans, measurement input | 10% |
Fair Value - Schedule of asse_3
Fair Value - Schedule of assets and liabilities not carried at fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Investment securities held to maturity | $ 4,999 | $ 2 |
SBA loans held for investment, at fair value | 52,209 | 9,614 |
1 | Carrying Value | Cash and cash equivalents | ||
ASSETS | ||
Cash and cash equivalents | 67,936 | 109,727 |
1 | Fair Value | Cash and cash equivalents | ||
ASSETS | ||
Cash and cash equivalents | 67,936 | 109,727 |
2 | Carrying Value | ||
ASSETS | ||
Investment securities held to maturity | 5,016 | 2 |
Restricted equity securities, at cost | 3,274 | 2,827 |
Government guaranteed loans held for sale | 0 | 1,460 |
Liabilities: | ||
FHLB and FRB borrowings | 40,000 | 0 |
Subordinated debentures | 5,989 | 5,985 |
Notes payable | 3,072 | 3,299 |
PPP Liquidity Facility | 0 | 69,654 |
Accrued interest payable | 31 | 326 |
2 | Carrying Value | Time deposits in banks | ||
ASSETS | ||
Cash and cash equivalents | 4,881 | 2,381 |
Liabilities: | ||
Deposits, liabilities | 34,038 | 50,688 |
2 | Carrying Value | Noninterest-bearing deposits | ||
Liabilities: | ||
Deposits, liabilities | 103,613 | 83,638 |
2 | Carrying Value | Interest-bearing transaction accounts | ||
Liabilities: | ||
Deposits, liabilities | 195,386 | 163,495 |
2 | Carrying Value | Savings and money market deposits | ||
Liabilities: | ||
Deposits, liabilities | 432,369 | 423,864 |
2 | Fair Value | ||
ASSETS | ||
Investment securities held to maturity | 4,999 | 2 |
Restricted equity securities, at cost | 3,274 | 2,827 |
Government guaranteed loans held for sale | 0 | 1,460 |
Liabilities: | ||
FHLB and FRB borrowings | 40,000 | 0 |
Subordinated debentures | 5,836 | 6,175 |
Notes payable | 3,063 | 3,350 |
PPP Liquidity Facility | 0 | 69,654 |
Accrued interest payable | 31 | 326 |
2 | Fair Value | Time deposits in banks | ||
ASSETS | ||
Cash and cash equivalents | 4,773 | 2,437 |
Liabilities: | ||
Deposits, liabilities | 34,016 | 51,049 |
2 | Fair Value | Noninterest-bearing deposits | ||
Liabilities: | ||
Deposits, liabilities | 103,613 | 83,638 |
2 | Fair Value | Interest-bearing transaction accounts | ||
Liabilities: | ||
Deposits, liabilities | 195,386 | 163,495 |
2 | Fair Value | Savings and money market deposits | ||
Liabilities: | ||
Deposits, liabilities | 432,369 | 423,864 |
3 | Carrying Value | ||
ASSETS | ||
SBA loans held for investment, at fair value | 579,964 | 560,882 |
Accrued interest receivable | 3,190 | 3,564 |
3 | Carrying Value | SBA Loan | ||
ASSETS | ||
Loan servicing rights | 7,760 | 6,407 |
3 | Carrying Value | Mortgage Loan | ||
ASSETS | ||
Loan servicing rights | 192 | 212 |
3 | Fair Value | ||
ASSETS | ||
SBA loans held for investment, at fair value | 577,950 | 569,394 |
Accrued interest receivable | 3,190 | 3,564 |
3 | Fair Value | SBA Loan | ||
ASSETS | ||
Loan servicing rights | 9,112 | 8,050 |
3 | Fair Value | Mortgage Loan | ||
ASSETS | ||
Loan servicing rights | $ 192 | $ 212 |
SBA Loan Servicing Activities -
SBA Loan Servicing Activities - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Servicing Asset at Amortized Cost [Line Items] | ||
Principal balance of SBA loans, excluding PPP loans | $ 290,387 | $ 300,415 |
Principal balance of SBA loans, excluding PPP loans, guaranteed portion | 151,903 | 171,548 |
Unpaid principal balances of SBA loans serviced for others | $ 522,050 | $ 459,670 |
Servicing assets, weighted average discount rate (in percentage) | 14.37% | 12.13% |
Servicing assets, weighted average prepayment speed (in percentage) | 10.21% | 10.37% |
SBA Loan | Significant Unobservable Inputs (Level 3) | Fair Value | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Servicing asset rights at fair value | $ 9,112 | $ 8,050 |
SBA loan servicing activities_2
SBA loan servicing activities - Schedule of activity for SBA loan servicing rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Beginning of period | $ 6,619 | |||
End of period | $ 7,952 | 7,952 | ||
SBA Loan | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Beginning of period | 7,399 | $ 7,445 | 6,407 | $ 8,160 |
Additions | 1,134 | 0 | 2,823 | 0 |
Amortization | (773) | (831) | (1,470) | (1,546) |
End of period | $ 7,760 | $ 6,614 | $ 7,760 | $ 6,614 |
SBA loan servicing activities_3
SBA loan servicing activities - Schedule of net gain on sale of SBA loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Servicing Asset at Amortized Cost [Line Items] | ||||
Net gain realized on sale of residential loans held for sale | $ 8,469 | $ 13,798 | ||
SBA Loan | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Gain on sale of guaranteed SBA loans | $ 2,714 | $ 0 | 6,038 | 0 |
Loss on sale of unguaranteed SBA loans | 0 | 0 | (348) | 0 |
Costs recognized on sale of SBA loans | 0 | 0 | (44) | 0 |
Fair value of servicing rights created | 1,134 | 0 | 2,823 | 0 |
Net gain realized on sale of residential loans held for sale | $ 3,848 | $ 0 | $ 8,469 | $ 0 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Total premises and equipment | $ 37,786 | $ 37,786 | $ 35,498 | ||
Accumulated depreciation and amortization | (6,418) | (6,418) | (5,827) | ||
Net premises and equipment | 31,368 | 31,368 | 29,671 | ||
Depreciation and amortization | 500 | $ 439 | 995 | $ 853 | |
Land and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total premises and equipment | 4,194 | 4,194 | 4,194 | ||
Building and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total premises and equipment | 9,847 | 9,847 | 9,590 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total premises and equipment | 2,624 | 2,624 | 2,433 | ||
Furniture, fixtures, and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total premises and equipment | 7,156 | 7,156 | 7,034 | ||
Fixed assets in process | |||||
Property, Plant and Equipment [Line Items] | |||||
Total premises and equipment | $ 13,965 | $ 13,965 | $ 12,247 |
Leases - Summary of Total Lease
Leases - Summary of Total Lease Cost and Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 385 | $ 361 | $ 772 | $ 722 |
Short-term lease cost | 137 | 179 | 273 | 374 |
Total lease cost, net | 522 | 540 | 1,045 | 1,096 |
Operating cash flows related to operating leases | 388 | 362 | 768 | 709 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 0 | 0 | 0 | 136 |
Supplemental information related to operating leases | $ 388 | $ 362 | $ 768 | $ 845 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average discount rate | 2.17% | 2.17% | |
Weighted average remaining life | 3 years 11 months 19 days | 3 years 11 months 19 days | |
Right-of-use operating lease assets | $ 3,547 | $ 3,547 | $ 4,543 |
Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use operating lease assets | 493 | 493 | |
Recognition of impairment | $ 235 | $ 235 |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 711 | |
2023 | 1,171 | |
2024 | 1,087 | |
2025 | 686 | |
2026 | 593 | |
Thereafter | 301 | |
Total undiscounted lease payments | 4,549 | |
Less: imputed interest | (535) | |
Net lease liabilities | $ 4,014 | $ 4,747 |
Other Borrowings (Details)
Other Borrowings (Details) - USD ($) $ in Thousands | 1 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Apr. 30, 2020 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||||
FHLB and FRB total borrowings | $ 40,000 | |||||
FHLB borrowings | 20,000 | |||||
FRB borrowings | 20,000 | |||||
Blanket lien | 192,487 | |||||
Additional FHLB borrowings | 109,776 | |||||
Debt instrument, fixed interest rate | 0.35% | |||||
Subordinated debentures | 5,989 | $ 5,985 | ||||
Notes payable | 3,072 | 3,299 | ||||
PPP Liquidity Facility | 0 | $ 69,654 | ||||
Line of Credit | Secured Debt | Federal Reserve Bank | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, capacity | 4,797 | |||||
Line of Credit | Secured Debt | Federal Reserve Bank | SBA Loan | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, capacity | $ 34,813 | |||||
Subordinated Debt | June 2021 Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 6,000 | |||||
Debt instrument, redemption period | 5 years | |||||
Debt instrument, fixed interest rate | 4.50% | |||||
Debt instrument, initial term | 5 years | |||||
Subordinated Debt | December 2018 Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 6,000 | |||||
Debt instrument, fixed interest rate | 6.875% | |||||
Subordinated Debt | Secured Overnight Financing Rate (SOFR) | June 2021 Subordinated Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, final term | 5 years | |||||
Debt instrument, floating rate | 3.78% | |||||
Notes Payable, Other Payables | Amortizing Note Payable | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral, percentage of Bank's stock | 100% | |||||
Notes Payable, Other Payables | Prime Rate | Amortizing Note Payable | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, floating rate | 4.75% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 0 | 0 | ||
Weighted average fair value of options granted (in dollars per share) | $ 3.70 | |||
Unrecognized compensation cost related to nonvested stock options granted | $ 408 | $ 408 | ||
Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost charged against income | 244 | $ 88 | $ 423 | $ 229 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted in the period (in shares) | 34,925 | |||
Unrecognized compensation expense | $ 477 | $ 477 | ||
Expected period for recognition | 2 years 10 months 24 days | |||
Fair value of shares vested | $ 88 | $ 85 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected period for recognition | 2 years 1 month 9 days | |||
Maximum percentage of stock granted | 15% | |||
Maximum number of shares issued and outstanding (in shares) | 1,500,000 | |||
Contractual term | 10 years | |||
Stock Options | Share-based Payment Arrangement, Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | |||
Stock Options | Share-based Payment Arrangement, Nonemployee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Nonvested Restricted Shares (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Shares | |
Nonvested beginning balance (in shares) | shares | 2,483 |
Granted (in shares) | shares | 34,925 |
Vested (in shares) | shares | (3,921) |
Forfeited (in shares) | shares | (1,725) |
Nonvested ending balance (in shares) | shares | 31,762 |
Weighted-Average Grant-Date Fair Value, per share | |
Nonvested beginning balance (in dollars per share) | $ / shares | $ 14.86 |
Granted (in dollars per share) | $ / shares | 21.50 |
Vested (in dollars per share) | $ / shares | 18.44 |
Forfeited (in dollars per share) | $ / shares | 21.45 |
Nonvested ending balance (in dollars per share) | $ / shares | $ 21.36 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity in the Equity Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2022 | |
Shares | |
Outstanding beginning balance (in shares) | 450,278 |
Exercised (in shares) | (2,545) |
Forfeited (in shares) | (11,370) |
Outstanding ending balance (in shares) | 436,363 |
Vested at ending balance (in shares) | 273,325 |
Exercisable at ending balance (in shares) | 273,325 |
Weighted Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ 15.64 |
Exercised (in dollars per share) | 15.14 |
Forfeited (in dollars per share) | 15.06 |
Outstanding ending balance (in dollars per share) | 15.65 |
Vested at ending balance (in dollars per share) | 15.95 |
Exercisable at ending balance (in dollars per share) | $ 15.95 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 1 month 17 days |
Weighted Average Remaining Contractual Term, Vested | 6 years 8 months 12 days |
Weighted Average Remaining Contractual Term, Exercisable | 6 years 8 months 12 days |
Aggregate Intrinsic Value, Outstanding | $ 1,722 |
Aggregate Intrinsic Value, Vested | 997 |
Aggregate Intrinsic Value, Exercisable | $ 997 |
Other Benefit Plans - Narrative
Other Benefit Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of common stock under dividend reinvestment plan (in shares) | 5,251 | 13,634 | 17,971 |
Issue of common stock under dividend reinvestment plan, price per share (USD per share) | $ 15.85 | $ 20.85 | $ 21.68 |
Salary continuation agreement, annual benefit | $ 25 | ||
Salary continuation agreement, annual benefit, duration | 20 years | ||
Salary continuation agreement, liability | $ 350 | $ 312 | |
Salary continuation agreement, period expense | $ 38 | $ 45 | |
Employer contribution over employees' gross pay (in percentage) | 3% | ||
Expense recognized in relation of plan, amount | $ 999 | $ 786 | |
Employee Stock Ownership Plan (ESOP), percent of eligible employee salary approved for contribution | 1% | 1% | |
Stock based compensation expense | $ 0 | $ 459 | |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense recognized in relation to the Non-Qualified Stock Purchase Plan | $ 45 | $ 19 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Federal tax based on federal corporate statutory rate | $ (120) | $ 3,664 | $ (115) | $ 5,778 |
State tax, net of federal effect | (97) | 1,307 | (85) | 1,420 |
Changes resulting from: | ||||
Other, net | (74) | (539) | (77) | (209) |
Total income tax expense (benefit) | $ (291) | $ 4,432 | $ (277) | $ 6,989 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Banking Regulation, Total Capital [Abstract] | ||
Total Capital, Actual | $ 107,716 | $ 106,002 |
Total Capital, Actual, Ratio | 0.1637 | 0.2125 |
Total Capital, Required for Capital Adequacy Purposes | $ 52,625 | $ 39,909 |
Total Capital, Required for Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Total Capital, To be Well Capitalized Under Prompt Corrective Action Regulations | $ 65,782 | $ 49,886 |
Total Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.1000 | 0.1000 |
Banking Regulation, Tier One Risk-Based Capital [Abstract] | ||
Tier One Risk-Based Capital, Actual | $ 99,461 | $ 99,656 |
Tier One Risk-Based Capital, Actual, Ratio | 0.1512 | 0.1998 |
Tier One Risk-Based Capital, Required for Capital Adequacy Purposes | $ 39,469 | $ 29,932 |
Tier One Risk-Based Capital, Required for Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Tier One Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations | $ 52,625 | $ 39,909 |
Tier One Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.0800 | 0.0800 |
Banking Regulation, Common Equity Tier One Risk-Based Capital [Abstract] | ||
Common Equity Tier One Risk-Based Capital, Actual | $ 99,461 | $ 99,656 |
Common Equity Tier One Risk-Based Capital, Actual, Ratio | 0.1512 | 0.1998 |
Common Equity Tier One Risk-Based Capital, Required for Capital Adequacy Purposes | $ 29,602 | $ 22,449 |
Common Equity Tier One Risk-Based Capital, Required for Capital Adequacy Purposes, Ratio | 0.0450 | 0.0450 |
Common Equity Tier One Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations | $ 42,758 | $ 32,426 |
Common Equity Tier One Risk-Based Capital To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.0650 | 0.0650 |
Banking Regulation, Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital, Actual | $ 99,461 | $ 99,656 |
Tier One Leverage Capital, Actual, Ratio | 0.1137 | 0.1222 |
Tier One Leverage Capital, Required for Capital Adequacy Purposes | $ 34,998 | $ 32,619 |
Tier One Leverage Capital, Required for Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Tier One Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Regulations | $ 43,747 | $ 40,774 |
Tier One Leverage Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.0500 | 0.0500 |
Mortgage Banking Activities - S
Mortgage Banking Activities - Schedule of components of residential loan fee income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||||
Net gain realized on sale of residential loans held for sale | $ 4,237 | $ 22,899 | $ 13,307 | $ 51,843 |
Mortgage banking fees | 1,322 | 2,418 | 2,829 | 5,529 |
Residential loan fee income | 10,212 | 23,352 | 23,403 | 55,381 |
Interest rate lock commitments | ||||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||||
Net change in | 1,064 | 487 | (268) | (5,068) |
Forward Contracts | ||||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||||
Net change in | 2,629 | (2,998) | 9,574 | 7,864 |
Loans Held For Sale | ||||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||||
SBA loan fair value gain | $ 960 | $ 546 | $ (2,039) | $ (4,787) |
Mortgage Banking Activities - N
Mortgage Banking Activities - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Derivative asset, fair value | $ 1,530 | $ 1,550 |
Derivative liability, fair value | 522 | 189 |
Interest rate lock commitments | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Derivative, notional amount | 79,698 | 108,122 |
Mandatory forward sales contracts | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Derivative, notional amount | 90,500 | 142,500 |
Best efforts forward sales contracts | ||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Derivative, notional amount | $ 11,659 | $ 7,375 |
Mortgage Banking Activities -_2
Mortgage Banking Activities - Schedule of net gains (losses) relating to free-standing derivative instruments used for risk management (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Mandatory forward sales contracts | ||
Derivative [Line Items] | ||
Derivative, gain (loss) | $ (162) | $ (78) |
Best efforts forward sales contracts | ||
Derivative [Line Items] | ||
Derivative, gain (loss) | 83 | 27 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative, gain (loss) | $ 1,087 | $ 1,412 |
Mortgage Banking Activities -_3
Mortgage Banking Activities - Schedule of notional amount and fair value of mortgage banking derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative asset, fair value | $ 1,530 | $ 1,550 |
Derivative liability, fair value | 522 | 189 |
Other assets | Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 70,315 | 103,572 |
Derivative asset, fair value | 1,164 | 1,435 |
Other assets | Mandatory forward sales contracts | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 40,000 | 60,000 |
Derivative asset, fair value | 283 | 88 |
Other assets | Best efforts forward sales contracts | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 11,659 | 7,375 |
Derivative asset, fair value | 83 | 27 |
Other liabilities | Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 9,383 | 4,550 |
Derivative liability, fair value | 77 | 23 |
Other liabilities | Mandatory forward sales contracts | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 50,500 | 82,500 |
Derivative liability, fair value | $ 445 | $ 166 |
Loan Commitments and Other Re_3
Loan Commitments and Other Related Activities - Summary of Financial Instruments With Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Unfunded loan commitments | ||
Other Commitments [Line Items] | ||
Financial commitments, contractual amount | $ 39,606 | $ 18,567 |
Unused lines of credit | ||
Other Commitments [Line Items] | ||
Financial commitments, contractual amount | 127,735 | 52,076 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Financial commitments, contractual amount | $ 68 | $ 68 |
Loan Commitments and Other Re_4
Loan Commitments and Other Related Activities - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Unfunded loan commitments | |
Other Commitments [Line Items] | |
Unfunded loan commitment period | 90 days |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic: | ||||
Net income (loss) | $ (282) | $ 13,016 | $ (269) | $ 20,527 |
Less: Preferred stock dividends | 208 | 235 | 416 | 567 |
Net income available to (loss attributable to) common shareholders | $ (490) | $ 12,781 | $ (685) | $ 19,960 |
Weighted average common shares outstanding (in shares) | 4,014,445 | 3,821,993 | 4,009,002 | 3,666,418 |
Basic earnings (loss) per common share (in USD per share) | $ (0.12) | $ 3.34 | $ (0.17) | $ 5.44 |
Diluted: | ||||
Net income (loss) | $ (282) | $ 13,016 | $ (269) | $ 20,527 |
Less: Preferred stock dividends | 208 | 235 | 416 | 567 |
Add: Series B preferred stock dividends | 0 | 92 | 0 | 279 |
Net income available to (loss attributable to) common shareholders | $ (490) | $ 12,873 | $ (685) | $ 20,239 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 4,014,445 | 3,821,993 | 4,009,002 | 3,666,418 |
Dilutive effects of conversion of Series B preferred stock to common stock (in shares) | 0 | 333,994 | 0 | 333,994 |
Add: Dilutive effects of assumed exercises of stock options (in shares) | 0 | 159,035 | 0 | 153,522 |
Average shares and dilutive potential common shares (in shares) | 4,014,445 | 4,315,022 | 4,009,002 | 4,153,934 |
Dilutive earnings (loss) per common share (in USD per share) | $ (0.12) | $ 2.98 | $ (0.17) | $ 4.87 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares excluded from computation of diluted EPS (in shares) | 318,961 | 0 | 333,704 | 0 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Operating Segments - Schedule o
Operating Segments - Schedule of information about reportable segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Interest income | $ 8,626 | $ 14,997 | $ 16,366 | $ 29,889 | |
Interest expense | 1,172 | 2,093 | 2,506 | 4,355 | |
Net interest income | 7,454 | 12,904 | 13,860 | 25,534 | |
Provision for loan losses | 250 | 0 | (2,150) | 2,000 | |
Residential loan fee income | 10,212 | 23,352 | 23,403 | 55,381 | |
Internal transfer for portfolio loans originated | 0 | 0 | 0 | 0 | |
Other noninterest income | 7,687 | 14,860 | 13,364 | 15,990 | |
Total noninterest income | 17,899 | 38,212 | 36,767 | 71,371 | |
Total noninterest expense | 25,676 | 33,668 | 53,323 | 67,389 | |
Income (loss) before income tax expense (benefit) | (573) | 17,448 | (546) | 27,516 | |
Income tax expense (benefit) | (291) | 4,432 | (277) | 6,989 | |
Net income (loss) | (282) | 13,016 | (269) | 20,527 | |
Period end assets | 921,377 | 1,198,229 | 921,377 | 1,198,229 | $ 917,095 |
Operating Segments | Residential Mortgage | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Interest income | 867 | 811 | 1,604 | 2,029 | |
Interest expense | 561 | 553 | 1,092 | 1,343 | |
Net interest income | 306 | 258 | 512 | 686 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Residential loan fee income | 10,212 | 23,352 | 23,403 | 55,381 | |
Internal transfer for portfolio loans originated | 280 | 97 | 410 | 166 | |
Other noninterest income | 5 | 15 | 11 | 27 | |
Total noninterest income | 10,497 | 23,464 | 23,824 | 55,574 | |
Total noninterest expense | 11,985 | 20,572 | 25,761 | 43,699 | |
Income (loss) before income tax expense (benefit) | (1,182) | 3,150 | (1,425) | 12,561 | |
Income tax expense (benefit) | 0 | 882 | (68) | 3,517 | |
Net income (loss) | (1,182) | 2,268 | (1,357) | 9,044 | |
Period end assets | 76,718 | 129,666 | 76,718 | 129,666 | |
Operating Segments | Banking | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Interest income | 7,759 | 14,186 | 14,762 | 27,860 | |
Interest expense | 611 | 1,540 | 1,414 | 3,012 | |
Net interest income | 7,148 | 12,646 | 13,348 | 24,848 | |
Provision for loan losses | 250 | 0 | (2,150) | 2,000 | |
Residential loan fee income | 0 | 0 | 0 | 0 | |
Internal transfer for portfolio loans originated | (280) | (97) | (410) | (166) | |
Other noninterest income | 7,682 | 14,845 | 13,353 | 15,963 | |
Total noninterest income | 7,402 | 14,748 | 12,943 | 15,797 | |
Total noninterest expense | 13,691 | 13,096 | 27,562 | 23,690 | |
Income (loss) before income tax expense (benefit) | 609 | 14,298 | 879 | 14,955 | |
Income tax expense (benefit) | (291) | 3,550 | (209) | 3,472 | |
Net income (loss) | 900 | 10,748 | 1,088 | 11,483 | |
Period end assets | $ 844,659 | $ 1,068,563 | $ 844,659 | $ 1,068,563 |