John Marshall Bancorp (JMSB) 10-Q13 Nov 242024 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Nov. 04, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Entity File Number	001-41315
Entity Registrant Name	John Marshall Bancorp, Inc.
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	81-5424879
Entity Address, Address Line One	1943 Isaac Newton Square East
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Reston
Entity Address State Or Province	VA
Entity Address, Postal Zip Code	20190
City Area Code	703
Local Phone Number	584-0840
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	JMSB
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	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,240,213
Entity Central Index Key	0001710482
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 8,164	$ 7,424
Interest-bearing deposits in other banks	169,063	91,581
Total cash and cash equivalents	177,227	99,005
Securities available-for-sale, at fair value	144,649	169,993
Securities held-to-maturity at amortized cost, fair value of $79,731 and $79,532 as of September 30, 2024 and December 31, 2023, respectively	92,863	95,505
Securities held-to-maturity, net	92,863	95,505
Restricted securities, at cost	7,630	5,012
Equity securities, at fair value	2,698	2,792
Loans, net of unearned income	1,842,598	1,859,967
Less: Allowance for loan credit losses	(18,481)	(19,543)
Loans, net	1,824,117	1,840,424
Bank premises and equipment, net	1,179	1,281
Accrued interest receivable	5,657	6,110
Right of use assets	3,824	4,176
Other assets	14,519	18,251
Total assets	2,274,363	2,242,549
Deposits:
Non-interest bearing demand deposits	472,422	411,374
Interest-bearing demand deposits	685,385	607,971
Savings deposits	43,779	52,061
Time deposits	734,564	835,194
Total deposits	1,936,150	1,906,600
Federal funds purchased		10,000
Federal Home Loan Bank advances	56,000
Federal Reserve Bank borrowings		54,000
Subordinated debt	24,770	24,708
Accrued interest payable	2,304	4,559
Lease liabilities	4,090	4,446
Other liabilities	7,931	8,322
Total liabilities	2,031,245	2,012,635
Commitments and contingencies
Shareholders' Equity
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued
Additional paid-in capital	97,017	95,636
Retained earnings	155,174	146,388
Accumulated other comprehensive loss	(9,215)	(12,251)
Total shareholders' equity	243,118	229,914
Total liabilities and shareholders' equity	2,274,363	2,242,549
Common stock, non voting
Shareholders' Equity
Common stock
Common stock, voting
Shareholders' Equity
Common stock	$ 142	$ 141

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Securities held-to-maturity, fair value	$ 79,731	$ 79,532
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	0	0
Common stock, voting
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	30,000,000	30,000,000
Common stock, issued (in shares)	14,238,677	14,148,533
Common stock, outstanding (in shares)	14,238,667	14,148,533
Common stock, voting \| Unvested shares
Common stock, issued (in shares)	45,753	47,318
Common stock, non voting
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	1,000,000	1,000,000
Common stock, issued (in shares)	0	0

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest and Dividend Income
Interest and fees on loans	$ 24,306	$ 21,925	$ 71,289	$ 63,355
Interest on investment securities, taxable	1,138	1,507	3,602	5,895
Interest on investment securities, tax-exempt	9	10	27	45
Dividends	97	75	262	222
Interest on deposits in banks	2,878	2,746	6,958	4,654
Total interest and dividend income	28,428	26,263	82,138	74,171
Interest Expense
Deposits	14,102	13,273	41,484	33,590
Federal funds purchased			2	10
Federal Home Loan Bank advances	174		174	67
Federal Reserve Bank borrowings	647	662	2,451	1,001
Subordinated debt	349	349	1,047	1,047
Total interest expense	15,272	14,284	45,158	35,715
Net Interest Income	13,156	11,979	36,980	38,456
Provision for (recovery of) credit losses	400	(829)	(667)	(2,471)
Net interest income after provision for (recovery of) credit losses	12,756	12,808	37,647	40,927
Non-interest Income
Service charges on deposit accounts	84	85	260	239
Bank owned life insurance		23		224
Other service charges and fees	160	160	474	677
Losses on sale of available-for-sale securities	(17,100)	(17,114)		(17,316)
Insurance commissions	64	54	357	310
Gain on sale of government guaranteed loans	160	27	509	50
Non-qualified deferred compensation plan asset gains (losses), net	139	(60)	298	112
Other income	10	10	92	140
Total non-interest income (loss)	617	(16,815)	1,990	(15,564)
Non-interest Expenses
Salaries and employee benefits	4,897	5,052	14,583	14,929
Occupancy expense of premises	444	445	1,343	1,363
Furniture and equipment expenses	304	282	902	882
Other operating expenses	2,386	1,881	7,035	6,087
Total non-interest expenses	8,031	7,660	23,863	23,261
Income (loss) before income taxes	5,342	(11,667)	15,774	2,102
Income Tax Expense (Benefit)	1,107	(1,530)	3,430	1,446
Net income (loss)	$ 4,235	$ (10,137)	$ 12,344	$ 656
Earnings (loss) per share, basic	$ 0.30	$ (0.72)	$ 0.87	$ 0.05
Earnings (loss) per share, diluted	$ 0.30	$ (0.72)	$ 0.87	$ 0.05

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Consolidated Statements of Comprehensive Income
Net Income (Loss)	$ 4,235	$ (10,137)	$ 12,344	$ 656
Other comprehensive income (loss):
Unrealized gain (loss) on available-for-sale securities, net of tax of $893 and $(503) for the three months ended September 30, 2024 and September 30, 2023, respectively. Unrealized gain (loss) on available-for-sale securities, net of tax of $823 and $(500) for the nine months ended September 30, 2024 and September 30, 2023, respectively.	3,357	(1,891)	3,097	(1,880)
Reclassification adjustment for losses on available-for-sale securities included in net income, net of tax of $(3,594) for the three months ended September 30, 2023. Reclassification adjustment for losses on available-for-sale securities included in net income, net of tax of $(3,636) for the nine months ended September 30, 2023.		13,520		13,680
Amortization of unrealized gains on securities transferred to held-to-maturity, net of tax of $(5) and $(7) for the three months ended September 30, 2024 and September 30, 2023, respectively. Amortization of unrealized gains on securities transferred to held-to-maturity, net of tax of $(16) and $(19) for the nine months ended September 30, 2024 and September 30, 2023, respectively.	(17)	(24)	(61)	(73)
Total other comprehensive income	3,340	11,605	3,036	11,727
Total comprehensive income	$ 7,575	$ 1,468	$ 15,380	$ 12,383

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Consolidated Statements of Comprehensive Income
Unrealized gain (loss) on available-for-sale securities, net of tax	$ 893	$ (503)	$ 823	$ (500)
Reclassification adjustment for losses on available-for-sale securities included in net income, net of tax		(3,594)		(3,636)
Amortization of unrealized gains on securities transferred to held-to-maturity, net of tax	$ 5	$ 7	$ 16	$ 19

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings	Accumulated Other Comprehensive (Loss)	Cumulative Effect, Period of Adoption, Adjustment	Total
Beginning balance at Dec. 31, 2022	$ 141	$ 94,726		$ 146,630	$ (28,697)		$ 212,800
Beginning balance (in shares) at Dec. 31, 2022	14,043,801
Net Income (Loss)				656			656
Other comprehensive income (loss)					11,727		11,727
Cash dividends attributable to changes in common shares				(3,108)			(3,108)
Exercise of stock options		320					320
Exercise of stock options (in shares)	27,375
Restricted stock vesting (in shares)	9,037
Share-based compensation		464					464
Ending balance at Sep. 30, 2023	$ 141	95,510	$ (2,292)	141,886	(16,970)	$ (2,292)	220,567
Ending balance (in shares) at Sep. 30, 2023	14,080,213
Beginning balance at Jun. 30, 2023	$ 141	95,380		152,024	(28,575)		218,970
Beginning balance (in shares) at Jun. 30, 2023	14,079,847
Net Income (Loss)				(10,137)			(10,137)
Other comprehensive income (loss)					11,605		11,605
Cash dividends attributable to changes in common shares				(1)			(1)
Restricted stock vesting (in shares)	366
Share-based compensation		130					130
Ending balance at Sep. 30, 2023	$ 141	95,510	$ (2,292)	141,886	(16,970)	$ (2,292)	220,567
Ending balance (in shares) at Sep. 30, 2023	14,080,213
Beginning balance at Dec. 31, 2023	$ 141	95,636		146,388	(12,251)		229,914
Beginning balance (in shares) at Dec. 31, 2023	14,101,215
Net Income (Loss)				12,344			12,344
Other comprehensive income (loss)					3,036		3,036
Repurchase of common stock		(49)					(49)
Repurchase of common stock (in shares)	(3,003)
Cash dividends attributable to changes in common shares				(3,558)			(3,558)
Exercise of stock options, net of shares surrendered	$ 1	1,036					1,037
Exercise of stock options, net of shares surrendered (in shares)	92,038
Restricted stock vesting		(3)					(3)
Restricted stock vesting (in shares)	2,674
Share-based compensation		397					397
Ending balance at Sep. 30, 2024	$ 142	97,017		155,174	(9,215)		243,118
Ending balance (in shares) at Sep. 30, 2024	14,192,924
Beginning balance at Jun. 30, 2024	$ 142	96,817		150,942	(12,555)		235,346
Beginning balance (in shares) at Jun. 30, 2024	14,183,600
Net Income (Loss)				4,235			4,235
Other comprehensive income (loss)					3,340		3,340
Cash dividends attributable to changes in common shares				(3)			(3)
Exercise of stock options		68					68
Exercise of stock options (in shares)	9,324
Share-based compensation		132					132
Ending balance at Sep. 30, 2024	$ 142	$ 97,017		$ 155,174	$ (9,215)		$ 243,118
Ending balance (in shares) at Sep. 30, 2024	14,192,924

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Consolidated Statements of Shareholders' Equity
Dividend paid per share		$ 0.25	$ 0.22
Exercise of stock options, shares surrendered		423
Restricted stock vesting, shares surrendered	54	141	87

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash Flows from Operating Activities
Net income	$ 12,344	$ 656
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation	334	364
Right of use asset amortization	890	924
Provision for (recovery of) credit losses	(667)	(2,471)
Share-based compensation expense	397	464
Net (accretion) of securities	(232)	(197)
Fair value adjustment on equity securities	(298)	(112)
Amortization of debt issuance costs	62	63
Net gains on premises and equipment	(1)	(16)
Losses on available-for-sale securities		17,316
Deferred tax (benefit) expense	(160)	603
Net increase in cash surrender value of life insurance		(224)
Gain on sale of government guaranteed loans	(509)	(50)
Changes in assets and liabilities:
Decrease (increase) decrease in accrued interest receivable	453	(170)
Decrease (increase) in other assets	3,085	(3,305)
(Decrease) increase in accrued interest payable	(2,255)	1,575
Increase in other liabilities	(1,682)	(2,855)
Net cash provided by operating activities	11,761	12,565
Cash Flows from Investing Activities
Net decrease (increase) in loans	11,898	(31,178)
Proceeds from sale of government guaranteed loans originally classified as held for investment	5,982	586
Proceeds from sale of available-for-sale securities		156,011
Proceeds from maturities, calls and principal repayments of available-for-sale securities	29,549	30,353
Proceeds from maturities, calls and principal repayments of held-to-maturity securities	2,512	2,921
Net (purchases) of restricted securities	(2,618)	(582)
Net sales (purchases) of equity securities	392	(216)
Proceeds from bank owned life insurance contracts		21,394
Proceeds from sale of premises and equipment		82
Purchases of bank premises and equipment	(231)	(475)
Net cash provided by investing activities	47,484	178,896
Cash Flows from Financing Activities
Net increase (decrease) in deposits	29,550	(86,116)
Net proceeds of Federal Home Loan Bank advances	56,000
(Repayment of) proceeds from Federal Reserve Bank borrowings	(54,000)	54,000
Cash dividends paid	(3,558)	(3,108)
Repayment of federal funds purchased	(10,000)	(25,500)
Issuance of common stock for share options exercised	1,037	320
Repurchase of shares for tax withholding on share-based compensation	(3)
Repurchase of common stock	(49)
Net cash provided by (used in) financing activities	18,977	(60,404)
Net increase in cash and cash equivalents	78,222	131,057
Cash and cash equivalents, beginning of period	99,005	61,599
Cash and cash equivalents, end of period	177,227	192,656
Supplemental Disclosures of Cash Flow Information
Interest	47,351	34,076
Income taxes		4,110
Supplemental Disclosures of Noncash Transactions
Unrealized gain on securities available-for-sale	3,920	14,936
Right of use asset obtained in exchange for new operating lease liability	$ 538	$ 505

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Nature of Business and Summary of Significant Accounting Policies
Nature of Business and Summary of Significant Accounting Policies	Note 1— Nature of Business and Summary of Significant Accounting Policies Nature of Banking Activities John Marshall Bancorp, Inc. (the “Company”), headquartered in Reston, Virginia, became the registered bank holding company under the Bank Holding Company Act of 1956 for its wholly-owned subsidiary, John Marshall Bank (the “Bank”), on March 1, 2017. This reorganization was completed through a one-for-one share exchange in which the Bank’s shareholders received one share of voting common stock of the Company in exchange for each share of the Bank’s voting common stock. The Company was formed on April 21, 2016 under the laws of the Commonwealth Virginia. The Bank was formed on April 5, 2005 under the laws of the Commonwealth of Virginia and was chartered as a bank on February 9, 2006, by the Virginia Bureau of Financial Institutions. The Bank is a member of the Federal Reserve System and is subject to the rules and regulations of the Virginia Bureau of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Federal Deposit Insurance Corporation (“FDIC”). The Bank opened for business on April 17, 2006 and provides banking services to its customers primarily in the Washington, D.C. metropolitan area. Basis of Presentation The accounting and reporting policies of John Marshall Bancorp, Inc. conform to generally accepted accounting principles in the United States of America (“GAAP”) and reflect practices of the banking industry. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all of the information and notes required by GAAP for complete financial statements. As such, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2023, included in the Company’s 2023 Annual Report on Form 10-K filed with the SEC on March 20, 2024. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan credit losses. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2023, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or shareholders’ equity. Significant Accounting Policies and Estimates Application of the principles of GAAP and practices within the banking industry requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements may reflect different estimates, assumptions, and judgments. Certain policies inherently rely more extensively on the use of estimates, assumptions, and judgments and as such may have a greater possibility of producing results that could be materially different than originally reported. The Company's significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements and notes for the year ended December 31, 2023 and are contained in the Company's 2023 Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2023. Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. The Company does not expect the adoption of ASU 2024-03 to have a material impact on its Consolidated financial statements.

Investment Securities

Investment Securities	9 Months Ended
Investment Securities	Sep. 30, 2024
Investment Securities
Investment Securities	Note 2— Investment Securities Available-for-Sale Each of the securities in the Company’s available-for-sale investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All available-for-sale securities were current with no securities past due or on nonaccrual as of September 30, 2024 or December 31, 2023. The following tables summarize the amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses at September 30, 2024 and December 31, 2023. September 30, 2024 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Available-for-sale U.S. Treasuries $ 30,892 $ — $ (888) $ 30,004 U.S. government and federal agencies 13,939 — (318) 13,621 Corporate bonds 3,000 — (345) 2,655 U.S. agency collateralized mortgage obligations 38,508 — (5,602) 32,906 Tax-exempt municipal 1,379 — (158) 1,221 Taxable municipal 270 — (9) 261 U.S. agency mortgage-backed 68,438 — (4,457) 63,981 Total Available-for-sale Securities $ 156,426 $ — $ (11,777) $ 144,649 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Available-for-sale U.S. Treasuries $ 44,793 $ — $ (1,816) $ 42,977 U.S. government and federal agencies 13,850 — (575) 13,275 Corporate bonds 3,000 — (477) 2,523 U.S. agency collateralized mortgage obligations 40,806 — (6,496) 34,310 Tax-exempt municipal 1,380 — (149) 1,231 Taxable municipal 606 — (19) 587 U.S. agency mortgage-backed 81,255 — (6,165) 75,090 Total Available-for-sale Securities $ 185,690 $ — $ (15,697) $ 169,993 The Company did not sell or recognize any gain or loss for any securities for the three or nine months ended September 30, 2024. During the three months ended September 30, 2023, the Company sold available-for-sale securities with a total par value of $161.2 million resulting in a gross pre-tax loss of $17.1 million. During the nine months ended September 30, 2023, the Company sold available-for-sale securities with a total par value of $173.2 million resulting in a gross pre-tax loss of $17.3 million. Available-for-sale securities having a market value of $56.4 million and $90.3 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $59.1 million and $95.8 million at September 30, 2024 and December 31, 2023, respectively. The following tables summarize the fair value of securities available-for-sale at September 30, 2024 and December 31, 2023 and the corresponding amounts of gross unrealized losses. Management uses the valuations as of month-end in determining when securities are in an unrealized loss position. Therefore, a security’s market value could have exceeded its amortized cost on other days during the prior twelve-month period. September 30, 2024 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-sale U.S. Treasuries $ — $ — $ 30,004 $ (888) $ 30,004 $ (888) U.S. government and federal agencies — — 13,621 (318) 13,621 (318) Corporate bonds — — 2,655 (345) 2,655 (345) U.S. agency collateralized mortgage obligations — — 32,906 (5,602) 32,906 (5,602) Tax-exempt municipal — — 1,221 (158) 1,221 (158) Taxable municipal — — 261 (9) 261 (9) U.S. agency mortgage-backed — — 63,981 (4,457) 63,981 (4,457) Total Available-for-sale Securities $ — $ — $ 144,649 $ (11,777) $ 144,649 $ (11,777) December 31, 2023 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-sale U.S. Treasuries $ — $ — $ 42,977 $ (1,816) $ 42,977 $ (1,816) U.S. government and federal agencies — — 13,275 (575) 13,275 (575) Corporate bonds — — 2,523 (477) 2,523 (477) U.S. agency collateralized mortgage obligations — — 34,310 (6,496) 34,310 (6,496) Tax-exempt municipal — — 1,231 (149) 1,231 (149) Taxable municipal — — 587 (19) 587 (19) U.S. agency mortgage-backed — — 75,090 (6,165) 75,090 (6,165) Total Available-for-sale Securities $ — $ — $ 169,993 $ (15,697) $ 169,993 $ (15,697) The Company had 151 and 158 securities in an unrealized loss position for 12 months or longer as of September 30, 2024 and December 31, 2023, respectively. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at September 30, 2024 and December 31, 2023 and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no allowance for credit losses on available-for-sale securities at September 30, 2024. The table below summarizes the contractual maturities of our available-for-sale investment securities as of September 30, 2024. Issuers may have the right to call or prepay certain obligations, and as such, the expected maturities of our securities may differ from the scheduled contractual maturities presented below. September 30, 2024 Amortized Fair (Dollars in thousands) Cost Value Available-for-sale Due in one year or less $ 23,710 $ 23,463 Due after one year through five years 35,095 33,934 Due after five years through ten years 40,145 38,487 Due after ten years 57,476 48,765 Total Available-for-sale Securities $ 156,426 $ 144,649 In the prevailing rate environments as of September 30, 2024 and December 31, 2023, the Company’s available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 2.8 years and 3.0 years, respectively. Held-to-Maturity Each of the securities in the Company’s held-to-maturity investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All held-to-maturity securities were current with no securities past due or on nonaccrual as of September 30, 2024 or December 31, 2023. The following tables summarize the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrealized losses at September 30, 2024 and December 31, 2023, respectively. September 30, 2024 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Held-to-maturity U.S. Treasuries $ 6,002 $ — $ (501) $ 5,501 U.S. government and federal agencies 35,359 — (3,874) 31,485 U.S. agency collateralized mortgage obligations 18,227 — (3,511) 14,716 Taxable municipal 6,045 — (887) 5,158 U.S. agency mortgage-backed 27,230 — (4,359) 22,871 Total Held-to-maturity Securities $ 92,863 $ — $ (13,132) $ 79,731 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Held-to-maturity U.S. Treasuries $ 6,001 $ — $ (667) $ 5,334 U.S. government and federal agencies 35,434 — (5,100) 30,334 U.S agency collateralized mortgage obligations 19,395 — (4,095) 15,300 Taxable municipal 6,057 — (1,101) 4,956 U.S. agency mortgage-backed 28,618 — (5,010) 23,608 Total Held-to-maturity Securities $ 95,505 $ — $ (15,973) $ 79,532 Held-to-maturity securities having a market value of $44.3 million and $36.1 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $50.0 million and $42.3 million at September 30, 2024 and December 31, 2023, respectively. The Company evaluates the credit risk of its held-to-maturity securities on at least a quarterly basis. The Company estimates expected credit losses on held-to-maturity securities on an individual basis based on a probability of default/loss given default methodology primarily using security-level credit ratings. The primary indicators of credit quality for the Company’s held-to-maturity portfolio are security type and credit rating, which is influenced by a number of factors including obligor cash flow, geography, seniority, and others. The Company’s held-to-maturity securities with credit risk were comprised of municipal bonds and had a credit rating of AA or better as of September 30, 2024. All other held-to-maturity securities are covered by the explicit or implied guarantee of the United States government or one of its agencies. The Company did not have an allowance for credit losses on held-to-maturity securities as of September 30, 2024 or December 31, 2023. The table below summarizes the contractual maturities of our held-to-maturity investment securities as of September 30, 2024. Issuers may have the right to call or prepay certain obligations and as such, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. September 30, 2024 Amortized Fair (Dollars in thousands) Cost Value Held-to-maturity Due in one year or less $ — $ — Due after one year through five years 25,428 23,212 Due after five years through ten years 23,647 20,555 Due after ten years 43,788 35,964 Total Held-to-maturity Securities $ 92,863 $ 79,731 In the prevailing rate environments as of September 30, 2024 and December 31, 2023, the Company’s held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 6.0 years and 6.7 years, respectively. Restricted Securities The table below summarizes the carrying amount of restricted securities as of September 30, 2024 and December 31, 2023. (Dollars in thousands) September 30, 2024 December 31, 2023 Federal Reserve Bank Stock $ 3,323 $ 3,310 Federal Home Loan Bank Stock 4,247 1,642 Community Bankers’ Bank Stock 60 60 Total Restricted Securities $ 7,630 $ 5,012 Equity Securities The Company held equity securities with readily determinable fair values totaling $2.7 million and $2.8 million at September 30, 2024 and December 31, 2023, respectively. These securities consist of mutual funds held in a trust and were obtained for the purpose of economically hedging changes in the Company’s nonqualified deferred compensation liability. Changes in the fair value of these securities are reflected in earnings. A gain of $139 thousand and a loss $(60) thousand were recorded in non-interest income in the Consolidated Statements of Income for the three months ended September 30, 2024 and September 30, 2023, respectively. Gains of $298 thousand and $112 thousand were recorded in non-interest income in the Consolidated Statements of Income for the nine months ended September 30, 2024 and September 30, 2023, respectively.

Loans

Loans	9 Months Ended
Loans	Sep. 30, 2024
Loans
Loans	Note 3— Loans The following table presents the composition of the Company’s loan portfolio as of September 30, 2024 and December 31, 2023. (Dollars in thousands) September 30, 2024 December 31, 2023 Real Estate Loans: Commercial $ 1,162,103 $ 1,146,116 Construction and land development 161,466 180,922 Residential 473,787 482,182 Commercial - Non-Real Estate: Commercial loans 39,867 45,204 Consumer - Non-Real Estate: Consumer loans 877 560 Total Gross Loans $ 1,838,100 $ 1,854,984 Allowance for loan credit losses (18,481) (19,543) Net deferred loan costs 4,498 4,983 Total net loans $ 1,824,117 $ 1,840,424 Portfolio Segments The Company currently manages its loan products and the respective exposure to credit losses by the following specific portfolio segments which are levels at which the Company develops and documents its systematic methodology to determine the allowance for loan credit losses attributable to each respective portfolio segment. These segments are: ● Real estate - commercial loans – The real estate commercial loans category contains commercial mortgage loans secured by owner occupied, non-owner occupied, and multifamily real estate. ● Real estate - construction and land development loans – The real estate construction and land development loans category contains residential and commercial construction loan financing to builders and developers and to consumers building their own homes. ● Real estate - residential loans – The real estate residential mortgage loans category contains permanent mortgage loans principally to consumers secured by residential real estate. ● Commercial loans – The commercial loans category contains business purpose loans made to provide funds for the financing of equipment, receivables, contract administration expenses, and other general corporate needs of commercial businesses. ● Consumer loans – The consumer loans category contains personal loans such as installment loans and lines of credit.

Allowance for Loan Credit Losse

Allowance for Loan Credit Losses	9 Months Ended
Allowance for Loan Credit Losses	Sep. 30, 2024
Allowance for Loan Credit Losses
Allowance for Loan Credit Losses	Note 4— Allowance for Loan Credit Losses The following tables present the activity in the allowance for loan credit losses for the nine months ended September 30, 2024 and September 30, 2023. September 30, 2024 Real Estate Construction & Land Dollars in thousands Commercial Development Residential Commercial Consumer Total Beginning balance, December 31, 2023 $ 12,841 $ 1,787 $ 4,323 $ 495 $ 97 $ 19,543 Charge-offs — — — — — — Recoveries — — — 2 — 2 Provision for (recovery of) credit losses (1,286) (90) 319 37 (44) (1,064) Ending balance, September 30, 2024 $ 11,555 $ 1,697 $ 4,642 $ 534 $ 53 $ 18,481 September 30, 2023 Real Estate Construction & Land Dollars in thousands Commercial Development Residential Commercial Consumer Unallocated Total Beginning balance, December 31, 2022 $ 13,205 $ 2,860 $ 3,044 $ 456 $ 5 $ 638 $ 20,208 Adjustment to allowance for adoption of ASC 326 (2,649) 476 4,552 367 57 (638) 2,165 Charge-offs — — — — — — — Recoveries — — — 2 — — 2 Provision for (recovery of) credit losses 2,187 (1,148) (3,014) (360) (4) — (2,339) Ending balance, September 30, 2023 $ 12,743 $ 2,188 $ 4,582 $ 465 $ 58 $ — $ 20,036 There was one collateral dependent loan totaling $10.0 million in outstanding principal that was individually evaluated as of September 30, 2024. Management concluded that the collateral value of the of the loan, minus the estimated cost to sell, exceeded the carrying value of the loan and no reserve was necessary. There were no collateral dependent or individually evaluated loans as of December 31, 2023. Delinquency Information The following tables present a summary of past due and nonaccrual loans by segment as of September 30, 2024 and December 31, 2023. September 30, 2024 30-59 Days 60-89 Days 90 Days or 90 Days or More Past Past More Total Past Total Past Due and Nonaccrual (Dollars in thousands) Due Due Past Due Due Current Loans Still Accruing Loans Real Estate Loans Commercial $ — $ — $ — $ — $ 1,162,103 $ 1,162,103 $ — $ — Construction and land development — — — — 161,466 161,466 — — Residential — — — — 473,787 473,787 — — Commercial — — — — 39,867 39,867 — — Consumer — — — — 877 877 — — Total Loans $ — $ — $ — $ — $ 1,838,100 $ 1,838,100 $ — $ — December 31, 2023 30-59 Days 60-89 Days 90 Days or 90 Days or More Past Past More Total Past Total Past Due and Nonaccrual (Dollars in thousands) Due Due Past Due Due Current Loans Still Accruing Loans Real Estate Loans Commercial $ — $ — $ — $ — $ 1,146,116 $ 1,146,116 $ — $ — Construction and land development — — — — 180,922 180,922 — — Residential — — — — 482,182 482,182 — — Commercial — — — — 45,204 45,204 — — Consumer — — — — 560 560 — — Total Loans $ — $ — $ — $ — $ 1,854,984 $ 1,854,984 $ — $ — Credit Quality Indicators The Company assesses credit quality indicators based on internal risk rating of loans. Each loan is evaluated at least annually with more frequent evaluation of more severely criticized loans. The indicators represent the rating for loans as of the date presented is based on the most recent credit review performed. Internal risk rating definitions are: Pass Special Mention Substandard Doubtful Loss The Company has a portfolio of smaller homogenous loans that are not individually risk rated and include residential permanent and construction mortgages, home equity lines of credit, and consumer installment loans. For these loans, management uses payment status as the primary credit quality indicator. The payment status of these loans is then translated into an internal risk rating. The following table summarizes the translation of past due status to risk rating for loans that are not individually risk rated. Internal Days Past Due Risk Rating 0 - 29 days Pass 30-59 days Special Mention 60-89 days Substandard 90-119 days Doubtful 120+ days Loss The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of September 30, 2024. Term Loans by Year of Origination (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Total Real Estate Loans - Commercial Pass $ 78,092 $ 66,659 $ 300,478 $ 188,851 $ 117,522 $ 380,300 $ 1,483 $ 1,133,385 Special mention — — 12,702 — — 6,038 — 18,740 Substandard — — — 9,978 — — — 9,978 Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Commercial $ 78,092 $ 66,659 $ 313,180 $ 198,829 $ 117,522 $ 386,338 $ 1,483 $ 1,162,103 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Construction and land development Pass $ 49,926 $ 46,328 $ 26,319 $ 4,224 $ 3,971 $ 4,750 $ 24,842 $ 160,360 Special mention — — — — — 1,106 — 1,106 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Construction and land development $ 49,926 $ 46,328 $ 26,319 $ 4,224 $ 3,971 $ 5,856 $ 24,842 $ 161,466 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Residential Pass $ 21,531 $ 75,694 $ 112,728 $ 117,254 $ 82,799 $ 42,388 $ 21,393 $ 473,787 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Residential $ 21,531 $ 75,694 $ 112,728 $ 117,254 $ 82,799 $ 42,388 $ 21,393 $ 473,787 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Loans Pass $ 4,967 $ 5,077 $ 6,004 $ 1,503 $ 1,667 $ 7,521 $ 13,128 $ 39,867 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial Loans $ 4,967 $ 5,077 $ 6,004 $ 1,503 $ 1,667 $ 7,521 $ 13,128 $ 39,867 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Loans Pass $ 772 $ 81 $ 2 $ — $ — $ 3 $ 19 $ 877 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Consumer Loans $ 772 $ 81 $ 2 $ — $ — $ 3 $ 19 $ 877 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of December 31, 2023. Term Loans by Year of Origination (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Total Real Estate Loans - Commercial Pass $ 67,675 $ 302,342 $ 201,801 $ 125,828 $ 96,424 $ 334,132 $ 3,575 $ 1,131,777 Special mention — 13,102 — 1,237 — — — 14,339 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Commercial $ 67,675 $ 315,444 $ 201,801 $ 127,065 $ 96,424 $ 334,132 $ 3,575 $ 1,146,116 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Construction and land development Pass $ 47,253 $ 56,408 $ 33,827 $ 9,360 $ 8 $ 7,046 $ 24,891 $ 178,793 Special mention — — — — 2,129 — — 2,129 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Construction and land development $ 47,253 $ 56,408 $ 33,827 $ 9,360 $ 2,137 $ 7,046 $ 24,891 $ 180,922 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Residential Pass $ 83,060 $ 114,865 $ 133,188 $ 87,275 $ 24,883 $ 21,380 $ 17,531 $ 482,182 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Residential $ 83,060 $ 114,865 $ 133,188 $ 87,275 $ 24,883 $ 21,380 $ 17,531 $ 482,182 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Loans Pass $ 7,564 $ 6,838 $ 1,959 $ 3,207 $ 4,482 $ 4,787 $ 16,367 $ 45,204 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial Loans $ 7,564 $ 6,838 $ 1,959 $ 3,207 $ 4,482 $ 4,787 $ 16,367 $ 45,204 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Loans Pass $ 485 $ 6 $ 26 $ — $ — $ 10 $ 33 $ 560 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Consumer Loans $ 485 $ 6 $ 26 $ — $ — $ 10 $ 33 $ 560 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Modifications with Borrowers Experiencing Financial Difficulty The allowance for loan credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination. The starting point for the estimate of the allowance for loan credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company may provide concessions to borrowers experiencing financial difficulty to minimize the economic loss and improve long-term loan performance and collectability. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The Company made one loan modification to a borrower experiencing financial difficulty during the three and nine months ended September 30, 2024. As of September 30, 2024, the outstanding principal balance of the loan was $1.5 million which represents 0.13% of the Real Estate Loans - Commercial loan segment. The loan was modified to provide a combination of interest rate and term extension. As of September 30, 2024, this loan was current and paying in accordance with the modified terms. The Company did not make any loan modifications to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023 Unfunded Commitments The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable by the Company. The allowance for off-balance sheet credit exposures is adjusted as a provision for (or recovery of) credit losses in the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for loan credit losses. The allowance for credit losses for unfunded loan commitments of $1.0 million and $0.6 million at September 30, 2024 and December 31, 2023, respectively, is separately classified within Other Liabilities on the Consolidated Balance Sheets. The provision for credit losses recorded during the nine months ended September 30, 2024 was primarily due to an increase in unfunded commitments. The following table presents the balance and activity in the allowance for credit losses for unfunded loan commitments for the nine months ended September 30, 2024 and September 30, 2023. Allowance for Credit Losses (Dollars in thousands) Unfunded Commitments Beginning balance, December 31, 2023 $ 620 Provision for credit losses 397 Ending balance, September 30, 2024 $ 1,017 Allowance for Credit Losses (Dollars in thousands) Unfunded Commitments Beginning balance, December 31, 2022 $ 303 Adjustment to allowance for unfunded commitments for adoption of ASC 326 737 Provision for (recovery of) credit losses (132) Ending balance, September 30, 2023 $ 908

Derivatives

Derivatives	9 Months Ended
Derivatives	Sep. 30, 2024
Derivatives
Derivatives	Note 5— Derivatives The Company enters into interest rate swap agreements (“swaps”) with commercial loan customers to provide a facility for customers to manage their interest rate risk. These swaps are matched in exact offsetting terms with swaps that the Company enters into with an independent third party. These swaps qualify as derivatives, but are not designated as hedging instruments. The following tables summarize the Company’s swaps at September 30, 2024 and December 31, 2023. September 30, 2024 Estimated Weighted Average Notional Fair Years to Receive Pay (Dollars in thousands) Amount Value Maturity Rate Rate Interest rate swap agreements: Pay fixed/receive variable swaps $ 24,347 $ 621 3.0 years 5.57 % 4.08 % Pay variable/receive fixed swaps 24,347 (621) 3.0 years 4.08 % 5.57 % Total interest rate swap agreements $ 48,694 $ — 3.0 years 4.83 % 4.83 % December 31, 2023 Estimated Weighted Average Notional Fair Years to Receive Pay (Dollars in thousands) Amount Value Maturity Rate Rate Interest rate swap agreements: Pay fixed/receive variable swaps $ 19,444 $ 846 3.2 years 5.87 % 3.39 % Pay variable/receive fixed swaps 19,444 (846) 3.2 years 3.39 % 5.87 % Total interest rate swap agreements $ 38,888 $ — 3.2 years 4.63 % 4.63 % The

Deposits and Borrowings

Deposits and Borrowings	9 Months Ended
Deposits and Borrowings	Sep. 30, 2024
Deposits and Borrowings
Deposits and Borrowings	Note 6— Deposits and Borrowings The following tables show the components of the Company’s funding sources. (Dollars in thousands) September 30, 2024 December 31, 2023 Deposits: Non-interest bearing demand deposits (1) $ 472,422 $ 411,374 Interest-bearing demand deposits (1) 685,385 607,971 Savings deposits 43,779 52,061 Time deposits (2) 734,564 835,194 Total Deposits $ 1,936,150 $ 1,906,600 (1) Overdraft demand deposits reclassified to loans totaled $1 thousand at September 30, 2024 and $1 thousand at December 31, 2023. (2) The aggregate amount of certificates of deposit with a minimum denomination of $250,000 was $335.1 million and $359.3 million at September 30, 2024 and December 31, 2023, respectively. The Company obtains certain deposits through the efforts of third-party brokers. Brokered deposits totaled $276.1 million and $320.6 million at September 30, 2024 and December 31, 2023, respectively, and were included primarily in time deposits on the Company’s Consolidated Balance Sheets. At September 30, 2024, there were no depositors that represented 5% or more of the Company’s total deposits. September 30, 2024 December 31, 2023 (Dollars in thousands) Stated Interest Rate Range Weighted-Average Interest Rate Carrying Value Carrying Value Short-term Debt: Federal Reserve Bank borrowings 4.76 % 4.76 % $ — $ 54,000 Total Short-term Debt $ — $ 54,000 Long-term Debt: FHLB advances 3.92% - 4.15 % 4.01 % 56,000 — Subordinated debt 5.25 % 5.25 % $ 24,770 $ 24,708 Total Long-term Debt $ 80,770 $ 24,708 The Company completed a private placement of a $25.0 million fixed-to-floating subordinated note on June 15, 2022. Subject to limited exceptions permitting earlier redemption, the note is callable, in whole or in part, commencing July 1, 2027. Unless redeemed earlier, the note will mature on July 1, 2032. The note bears interest at a fixed rate of 5.25% to but excluding July 1, 2027, and will bear interest at a floating rate equal to the three-month Secured Overnight Financing Rate The Company, from time to time, uses FHLB advances as a source of funding and to manage interest rate risk. FHLB advances are secured by a blanket floating lien on all real estate mortgage loans secured by 1-to-4 family residential, multi-family and commercial real estate properties. On September 3, 2024, the Company took out three fixed interest rate advances with terms of 18, 24, and 36 months. The interest rates on the advances range from 3.92% to 4.15%. At September 30, 2024, these three outstanding FHLB advances totaled $56.0 million. Available borrowing capacity based on collateral value amounted to approximately $373.2 million as of September 30, 2024. The Company also has the capacity to borrow up to $101.6 million at the Federal Reserve discount window of which $0 had been drawn upon at September 30, 2024. The Bank had loans pledged at the Federal Reserve discount window totaling $147.6 million as of September 30, 2024. On March 12, 2023, the Federal Reserve Bank of Richmond (“Reserve Bank”) made available the Bank Term Funding Program (“BTFP”), which enhances the ability of banks to borrow against the par value of certain high-quality, unencumbered investments. In January 2024, the Company refinanced its $54.0 million advance and secured an additional $23.0 million from the BTFP. On September 3, 2024, the Company paid off the BTFP advance. The Company also has federal funds lines of credit with correspondent banks available for overnight borrowing of $110.0 million, of which $0 had been drawn upon at September 30, 2024. The following table shows the carrying amount of the Company’s time deposits by contractual maturity as of September 30, 2024. (Dollars in thousands) September 30, 2024 2024 $ 157,862 2025 411,226 2026 104,949 2027 59,094 2028 553 Thereafter 880 Total $ 734,564

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies
Commitments and Contingencies	Note 7— Commitments and Contingencies The Company is party to financial instruments with off balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The following table summarizes the contract or notional amount of the Company’s exposure to off-balance sheet risk as of September 30, 2024 and December 31, 2023. (Dollars in thousands) September 30, 2024 December 31, 2023 Commitments to extend credit $ 295,139 $ 235,560 Standby letters of credit $ 14,062 $ 16,329 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property and equipment, income-producing commercial properties, and other real estate properties. Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. Those lines of credit may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2024
Fair Value Measurements
Fair Value Measurements	Note 8— Fair Value Measurements Determination of Fair Value The Company determines the fair values of its financial instruments based on the fair value hierarchy established by Accounting Standards Codification (“ASC”) Topic 820 – Fair Value Measurement The fair value measurements and disclosures topic specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Fair Value Hierarchy In accordance with this guidance, the Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. 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. Assets Measured at Fair Value on a Recurring Basis In accordance with ASC Topic 820, the following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a recurring basis in the financial statements. Securities Available-for-sale and Equity Securities Securities available-for-sale and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity then the security would fall to the lowest level of the hierarchy (Level 3). The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third party portfolio accounting service vendor for valuation of its portfolio of debt securities. The vendor’s primary source for security valuation is ICE Data Services, which evaluates securities based on market data. ICE Data Services utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance and rating to incorporate additional spreads to the industry benchmark curves. Interest Rate Swap Agreements Interest rate swap agreements are measured by alternative pricing sources using a discounted cash flow method that incorporates current market interest rates. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These characteristics classify interest rate swap agreements as Level 2 in the fair value hierarchy. The following tables summarize the fair value of assets measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023. Fair Value Measurements at September 30, 2024 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs (Dollars in thousands) September 30, 2024 (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. Treasuries $ 30,004 $ — $ 30,004 $ — U.S. government and federal agencies 13,621 — 13,621 — Corporate bonds 2,655 — 2,655 — U.S. agency collateralized mortgage obligations 32,906 — 32,906 — Tax-exempt municipal 1,221 — 1,221 — Taxable municipal 261 — 261 — U.S. agency mortgage-backed 63,981 — 63,981 — Equity securities, at fair value 2,698 2,698 — — Interest rate swap agreements 621 — 621 — Total assets at fair value $ 147,968 $ 2,698 $ 145,270 $ — Liabilities: Interest rate swap agreements $ 621 $ — $ 621 $ — Total liabilities at fair value $ 621 $ — $ 621 $ — Fair Value Measurements at December 31, 2023 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs (Dollars in thousands) December 31, 2023 (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. Treasuries $ 42,977 $ — $ 42,977 $ — U.S. government and federal agencies 13,275 — 13,275 — Corporate bonds 2,523 — 2,523 — U.S. agency collateralized mortgage obligations 34,310 — 34,310 — Tax-exempt municipal 1,231 — 1,231 — Taxable municipal 587 — 587 — U.S. agency mortgage-backed 75,090 — 75,090 — Equity securities, at fair value 2,792 2,792 — — Interest rate swap agreement 846 — 846 — Total assets at fair value $ 173,631 $ 2,792 $ 170,839 $ — Liabilities: Interest rate swap agreement $ 846 $ — $ 846 $ — Total liabilities at fair value $ 846 $ — $ 846 $ — Assets Measured at Fair Value on a Non-recurring Basis Under certain circumstances, the Company makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a non-recurring basis in the financial statements: Loan Servicing Rights Under the U.S Small Business Administration (“SBA”) 7(a) program, the Bank can sell in the secondary market the guaranteed portion of its SBA 7(a) loans and retain the related unguaranteed portion of these loans, as well as the servicing on such loans, for which it is paid a fee. The loan servicing spread is generally a minimum of 1.00% on all SBA 7(a) loans. The Company generally offers SBA 7(a) loans within a range of $50 thousand to $2.0 million. The Company holds rights to service the guaranteed portion of SBA loans sold in the secondary market. Loan servicing rights are capitalized at estimated fair value when acquired through the origination of loans that are subsequently sold with the servicing rights retained. Loan servicing rights are amortized to servicing income on loans sold approximately in proportion to and over the period of estimated net servicing income. The value of loan servicing rights at the date of the sale of loans is estimated based on the discounted present value of expected future cash flows using key assumptions for servicing income and costs and expected prepayment rates on the underlying loans. The estimated fair value is periodically evaluated for impairment by comparing actual cash flows and estimated future cash flows from the loan servicing assets to those estimated at the time that the loan servicing assets were originated. Fair values are estimated using expected future discounted cash flows based on current market rates of interest. For purposes of measuring impairment, the loan servicing rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized loan servicing rights based on product type and term of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the loan servicing rights exceeds their fair value. Impairment, if deemed temporary, is recognized through a valuation allowance to the extent that fair value is less than the recorded amount. Under the SBA 7(a) program, the loans carry an SBA guaranty for up to 85% of the loan. Typical maturities for this type of loan vary but can be up to ten years. SBA 7(a) loans are fixed or adjustable rate loans based on the Prime Rate. At September 30, 2024, the Bank’s SBA 7(a) loan servicing portfolio, which is not included in the Company’s consolidated financial statements, totaled $7.0 million. At September 30, 2024, SBA servicing rights of $104 thousand were recorded in other assets in the Consolidated Balance Sheet. The SBA servicing rights' fair values were estimated using discounted cash flow analyses with an average discount rate of 11.0% and average conditional prepayment rates of 13.0%. There was no valuation allowance on loan servicing rights at September 30, 2024. Collateral Dependent Loans In accordance with ASC 326, loans that do not share risk characteristics are evaluated on an individual basis. The Company designates individually evaluated loans on nonaccrual status as collateral dependent loans, as well as other loans that management of the Company designates as having higher risk and loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral. The measurement of loss associated with collateral dependent loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal, of one year or less, conducted by an independent, licensed appraiser using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, or if an appraisal of the property is more than one-year-old and not solely based on observable market comparables, or management determines the fair value of the collateral is further impaired below the appraised value, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. The Company had one collateral dependent loan totaling $10.0 million in outstanding principal with no recorded reserve as of September 30, 2024. The Company had no collateral dependent loans with a recorded reserve as of December 31, 2023. Other Real Estate Owned (“OREO”) OREO is carried at the lower of cost or fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value using observable market data, the Company records the property as Level 2. When an appraised value using observable market data is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the property as Level 3 valuation. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. The Company had no OREO as of September 30, 2024 or December 31, 2023. The following tables present the carrying value and estimated fair value, including the level within the fair value hierarchy, of the Company’s financial instruments as of September 30, 2024 and December 31, 2023. Fair Value Measurements at September 30, 2024 Using Quoted Prices in Active Markets Significant for Identical Significant Other Unobservable Carrying Value as of Assets Observable Inputs Inputs Fair Value as of (Dollars in thousands) September 30, 2024 (Level 1) (Level 2) (Level 3) September 30, 2024 Assets: Cash and cash equivalents $ 177,227 $ 177,227 $ — $ — $ 177,227 Securities: Available-for-sale 144,649 — 144,649 — 144,649 Held-to-maturity 92,863 — 79,731 — 79,731 Equity securities, at fair value 2,698 2,698 — — 2,698 Restricted securities, at cost 7,630 — 7,630 — 7,630 Loans, net 1,824,117 — — 1,714,937 1,714,937 Interest rate swap agreements 621 — 621 — 621 Loan servicing rights 104 — — 118 118 Accrued interest receivable 5,657 — 5,657 — 5,657 Liabilities: Deposits $ 1,936,150 $ — $ 1,940,540 $ — $ 1,940,540 Federal Home Loan Bank advances 56,000 — 56,000 — 56,000 Subordinated debt 24,770 — — 22,306 22,306 Interest rate swap agreements 621 — 621 — 621 Accrued interest payable 2,304 — 2,304 — 2,304 Fair Value Measurements at December 31, 2023 Using Quoted Prices in Active Markets Significant for Identical Significant Other Unobservable Carrying Value as of Assets Observable Inputs Inputs Fair Value as of (Dollars in thousands) December 31, 2023 (Level 1) (Level 2) (Level 3) December 31, 2023 Assets: Cash and cash equivalents $ 99,005 $ 99,005 $ — $ — $ 99,005 Securities: Available-for-sale 169,993 — 169,993 — 169,993 Held-to-maturity 95,505 — 79,532 — 79,532 Equity securities, at fair value 2,792 2,792 — — 2,792 Restricted securities, at cost 5,012 — 5,012 — 5,012 Loans, net 1,840,424 — — 1,730,205 1,730,205 Interest rate swap agreement 846 — 846 — 846 Loan servicing rights 22 — — 22 22 Accrued interest receivable 6,110 — 6,110 — 6,110 Liabilities: Deposits $ 1,906,600 $ — $ 1,906,835 $ — $ 1,906,835 Federal Reserve Bank borrowings 54,000 54,000 54,000 Federal funds purchased 10,000 — 10,000 — 10,000 Subordinated debt 24,708 — — 21,873 21,873 Interest rate swap agreement 846 — 846 — 846 Accrued interest payable 4,559 — 4,559 — 4,559

Earnings per Common Share

Earnings per Common Share	9 Months Ended
Earnings per Common Share	Sep. 30, 2024
Earnings per Common Share
Earnings per Common Share	Note 9— Earnings per Common Share Earnings per common share is calculated in accordance with ASC 260 - Earnings Per Share Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of voting common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. The following table summarizes the computation of earnings per share for the three and nine months ended September 30, 2024 and September 30, 2023. Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Earnings (loss) per common share - basic: Income available to common shareholders (in thousands): Net income (loss) $ 4,235 $ (10,137) $ 12,344 $ 656 Less: Income attributable to unvested restricted stock awards (14) — (40) (2) Net income (loss) available to common shareholders $ 4,221 $ (10,137) $ 12,304 $ 654 Weighted average shares outstanding: Common shares outstanding, including unvested restricted stock 14,233,612 14,126,114 14,209,916 14,174,804 Less: Unvested restricted stock (45,921) (46,088) (45,855) (48,282) Weighted-average common shares outstanding - basic 14,187,691 14,080,026 14,164,061 14,126,522 Earnings (loss) per common share - basic $ 0.30 $ (0.72) $ 0.87 $ 0.05 Earnings (loss) per common share - diluted: Income available to common shareholders (in thousands): Net income (loss) $ 4,235 $ (10,137) $ 12,344 $ 656 Less: Income attributable to unvested restricted stock awards (14) — (40) (2) Net income (loss) available to common shareholders $ 4,221 $ (10,137) $ 12,304 $ 654 Weighted average shares outstanding: Common shares outstanding, including unvested restricted stock 14,233,612 14,126,114 14,209,916 14,174,804 Less: Unvested restricted stock (45,922) (46,088) (45,855) (48,282) Plus: Effect of dilutive options 26,896 — 34,272 72,656 Weighted-average common shares outstanding - diluted 14,214,586 14,080,026 14,198,333 14,199,178 Earnings (loss) per common share - diluted $ 0.30 $ (0.72) $ 0.87 $ 0.05 Outstanding options to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. All stock options outstanding as of September 30, 2024 were included in computing diluted earnings per share for the three months ended September 30, 2024, as none had anti-dilutive effects. No stock options outstanding as of September 30, 2023 were included in computing diluted earnings per share for the three months ended September 30, 2023 as the Company reported a net loss and the impact would have been anti-dilutive. All stock options outstanding as of September 30, 2024 and 2023 were included in computing diluted earnings per share for the nine months ended September 30, 2024 and 2023, as none had anti-dilutive effects.

Stock Based Compensation Plan

Stock Based Compensation Plan	9 Months Ended
Stock Based Compensation Plan	Sep. 30, 2024
Stock Based Compensation Plan
Stock Based Compensation Plan	Note 10— Stock Based Compensation Plan The Company’s share-based compensation plan, approved by stockholders and effective April 28, 2015 (the “2015 Plan”), provides for the grant of share-based awards in the form of incentive stock options, non-incentive stock options, restricted stock and restricted stock units to directors and employees. The Company has reserved 976,211 shares of voting common stock for issuance under the 2015 Plan, which will remain in effect until April 28, 2025. The Company’s Compensation Committee administers the 2015 Plan and has the authority to determine the terms and conditions of each award thereunder. As of September 30, 2024, 278,404 shares are available to grant in future periods under the 2015 Plan. The Company’s previous share-based compensation plan, the 2006 Stock Option Plan (the “2006 Plan”), provided for the grant of share-based awards in the form of incentive stock options and non-incentive stock options to directors and employees. As amended, the 2006 Plan provided for awards of up to 1,490,700 shares. In April 2015, the 2006 Plan was terminated and replaced with the 2015 Plan. Options outstanding prior to April 28, 2015 were granted under the 2006 Plan and shall be subject to the provisions of the 2006 Plan. To date, options granted under the 2015 Plan typically vest over five years and expire 10 years from the grant date. Under the 2015 Plan, the exercise price of options may not be less than 100% of fair market value at the grant date with a maximum term for an option award of 10 years from the grant date. The table below provides a summary of the stock options activity for the nine months ended September 30, 2024. September 30, 2024 Weighted Average Aggregate Intrinsic Shares Exercise Price Value Outstanding at January 1, 2024 162,147 $ 11.77 Granted — — Exercised (92,038) 11.77 Forfeited or expired (7,574) 11.94 Outstanding at September 30, 2024 62,535 11.77 $ 500,765 Exercisable September 30, 2024 62,535 $ 11.77 $ 500,765 The aggregate intrinsic value of stock options in the table above represents the total amount by which the current market value of the underlying stock exceeds the exercise price of the option that would have been received by the Company had all option holders exercised their options on September 30, 2024. The intrinsic value of options exercised was $106 thousand and $677 thousand for the three and nine months ended September 30, 2024, respectively, and $0 and $370 thousand for the three and nine months ended September 30, 2023, respectively The table below provides a summary of the stock options outstanding and exercisable as of September 30, 2024. September 30, 2024 Options Outstanding Options Exercisable Weighted Average Weighted Average Remaining Remaining Number Contractual Life Number Contractual Life Exercise Prices Outstanding in Years Exercisable in Years $11.01 - $12.00 62,223 0.56 62,223 0.56 $12.01 - $13.00 312 0.88 312 0.88 Total 62,535 0.56 62,535 0.56 There were no options granted during the three or nine months ended September 30, 2024 or September 30, 2023. The Company did not record any share-based compensation expense applicable to the Company’s share-based compensation plans for stock options during the three and nine months ended September 30, 2024 or September 30, 2023. The Company does not have any unrecognized share-based compensation expense related to nonvested options as of September 30, 2024. The table below provides a summary of the restricted stock awards granted under the 2015 plan for the nine months ended September 30, 2024. September 30, 2024 Weighted Average Shares Grant Date Fair Value Nonvested at January 1, 2024 47,318 $ 23.12 Granted 1,750 17.49 Vested (2,815) 16.20 Forfeited (500) 23.66 Nonvested at September 30, 2024 45,753 23.32 Compensation expense for restricted stock grants is recognized over the vesting period of the awards based on the fair value of the Company’s voting common stock at issue date. The fair value of the stock was determined using the closing stock price on the day of grant. The restricted stock grants vest over two Share-based compensation expense applicable to the Company’s share-based compensation plans for restricted stock grants was $132 thousand and $130 thousand for the three months September 30, 2024 and September 30, 2023, respectively. The total fair value of the shares, which vested during the three months ended September 30, 2024 and September 30, 2023, was $0 Share-based compensation expense applicable to the Company’s share-based compensation plans for restricted stock grants was $397 thousand and $464 thousand for the nine months ended September 30, 2024 and September 30, 2023, respectively. The total fair value of the shares, which vested during the nine months ended September 30, 2024 and September 30, 2023, was $56 thousand and $218 thousand, respectively. Unrecognized share-based compensation expense related to nonvested restricted stock grants amounted to $658 thousand as of September 30, 2024. This amount is expected to be recognized over a weighted-average period of 1.7 years.

Regulatory Capital

Regulatory Capital	9 Months Ended
Regulatory Capital	Sep. 30, 2024
Regulatory Capital
Regulatory Capital	Note 11— Regulatory Capital The Company is a bank holding company with less than $3 billion in assets and does not (i) have significant off balance sheet exposure, (ii) engage in significant non-banking activities, or (iii) have a material amount of securities registered under the Securities Exchange Act of 1934, as amended (“Exchange Act”). As a result, the Company qualifies as a small bank holding company under the Federal Reserve’s Small Bank Holding Company Policy Statement and is currently not subject to consolidated regulatory capital requirements. The Bank is subject to capital adequacy standards adopted by the Federal Reserve, including the capital rules that implemented the Basel III regulatory capital reforms developed by the Basel Committee on Banking Supervision. Failure to meet minimum capital requirements can initiate certain mandatory – possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Management believes that the Bank met all capital adequacy requirements to which it was subject as of September 30, 2024 and December 31, 2023. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, common equity Tier 1 to risk-weighted assets, and Tier 1 capital to average assets. In addition to the minimum regulatory capital required for capital adequacy purposes, the Bank is required to maintain a minimum capital conservation buffer above those minimums in the form of common equity. The capital conservation buffer, which was phased in ratably over a four year period beginning January 1, 2016, is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of common equity Tier 1 to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases, and discretionary compensation paid to certain officers, based on the amount of the shortfall. The capital conservation buffer was 2.5% at September 30, 2024, and is applicable for the common equity Tier 1, Tier 1, and total capital ratios. As of September 30, 2024, the most recent notification from the Reserve Bank categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the institution must maintain minimum total risk-based, common equity Tier 1, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since the notification that management believes have changed the Bank’s category. The table below provides a summary of the Bank’s capital ratios as of September 30, 2024 and December 31, 2023. Minimum To Be Well Capitalized Actual Minimum Capital Requirement (1) Under Prompt Corrective Action (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2024 Total capital (to risk weighted assets) $ 291,881 16.3 % $ 187,705 10.5 % $ 178,766 10.0 % Tier 1 capital (to risk weighted assets) 273,529 15.3 % 151,951 8.5 % 143,013 8.0 % Common equity tier 1 capital (to risk weighted assets) 273,529 15.3 % 125,136 7.0 % 116,198 6.5 % Tier 1 capital (to average assets) 273,529 11.9 % 91,608 4.0 % 114,510 5.0 % As of December 31, 2023 Total capital (to risk weighted assets) $ 282,082 15.7 % $ 188,448 10.5 % $ 179,475 10.0 % Tier 1 capital (to risk weighted assets) 263,637 14.7 % 152,553 8.5 % 143,580 8.0 % Common equity tier 1 capital (to risk weighted assets) 263,637 14.7 % 125,632 7.0 % 116,658 6.5 % Tier 1 capital (to average assets) 263,637 11.6 % 91,163 4.0 % 113,954 5.0 % (1)

Revenue

Revenue	9 Months Ended
Revenue	Sep. 30, 2024
Revenue
Revenue	Note 12— Revenue Certain of the Company’s non-interest revenue streams are derived from short-term contacts associated with services provided to deposit account holders as well as other ancillary services, which are accounted for in accordance with ASC 606 – Revenue Recognition The following table shows the components of non-interest income for the three and nine months ended September 30, 2024 and September 30, 2023. Three months ended Nine months ended September 30, September 30, (Dollars in thousands) 2024 2023 2024 2023 Service charges on deposit accounts (1) Overdrawn account fees $ 18 $ 20 $ 61 $ 55 Account service fees 66 65 199 184 Other service charges and fees (1) Interchange income 91 101 271 304 Other charges and fees 69 59 203 373 Bank owned life insurance — 23 — 224 Losses on sale of available-for-sale securities — (17,114) — (17,316) Net gains on premises and equipment (1) 1 — 1 16 Insurance commissions (1) 64 54 357 310 Gain on sale of government guaranteed loans 160 27 509 50 Non-qualified deferred compensation plan asset gains (losses), net 139 (60) 298 112 Other operating income (2) 9 10 91 124 Total non-interest income $ 617 $ (16,815) $ 1,990 $ (15,564) (1) Income within the scope of ASC 606. (2) Includes other operating income within the scope of ASC 606 amounting to $9 thousand and $27 thousand for the three and nine months ended September 30, 2024, respectively. Includes other operating income of $0 and $64 thousand related to swap fee income on a back-to-back loan swaps for the three and nine months ended September 30, 2024, which is outside the scope of ASC 606. Includes other operating income within the scope of ASC 606 amounting to $10 thousand and $33 thousand for the three and nine months ended September 30, 2023, respectively. Includes other operating income of $91 thousand related to swap fee income on a back-to-back loan swaps for the nine months ended September 30, 2023, which is outside the scope of ASC 606. As previously disclosed, the Company surrendered all of its Bank Owned Life Insurance (“BOLI”) policies in July 2023. A description of the Company’s revenue streams accounted for under ASC 606 follows: Service charges on deposit accounts Service charges on deposit accounts consist of overdrawn account fees and account service fees. Overdrawn account fees are recognized at the point in time that the overdraft occurs. Account service fees consist primarily of account analysis and other maintenance fees and are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Payment for service charges on deposit accounts is received immediately or in the following month through a direct charge to customers’ accounts. Other service charges and fees Other service charges and fees are primarily comprised of interchange income and other charges and fees. Interchange income is earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. Other charges and fees include revenue from processing wire transfers, cashier’s checks, and other transaction based services. The Company’s performance obligation for these charges and fees are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Net gains (losses) on premises and equipment The Company records a gain or loss on the disposition of premises and equipment when control of the property transfers or is involuntarily converted to a monetary asset (e.g., insurance proceeds). This income is reflected in other operating income on the Company’s Consolidated Statements of Income. Insurance commissions The Company performs the function of an insurance intermediary by introducing the policyholder and insurer and is compensated in the form of a commission for placement of an insurance policy based on a percentage of premiums issued and maintained during the period. Revenue is recognized when received.

Other Operating Expenses

Other Operating Expenses	9 Months Ended
Other Operating Expenses	Sep. 30, 2024
Other Operating Expenses
Other Operating Expenses	Note 13— Other Operating Expenses The following table shows the components of other operating expenses for the three and nine months ended September 30, 2024 and September 30, 2023. Three months ended Nine months ended September 30, September 30, (Dollars in thousands) 2024 2023 2024 2023 Advertising expense $ 96 $ 87 $ 290 $ 239 Data processing 538 493 1,595 1,374 FDIC insurance 250 275 730 771 Professional fees 256 (141) 750 154 State franchise tax 574 604 1,718 1,785 Director costs 192 186 593 629 Other operating expenses 480 377 1,359 1,135 Total other operating expenses $ 2,386 $ 1,881 $ 7,035 $ 6,087

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
Accumulated Other Comprehensive Income (Loss)	Sep. 30, 2024
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	Note 14— Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss), by category, net of tax for the nine months ended September 30, 2024 and September 30, 2023. September 30, 2024 Unrealized Gains on Securities Transferred from Unrealized Loss on Available-for-sale to Accumulated Other (Dollars in thousands) Available-for-sale Securities Held-to-maturity Comprehensive Loss Beginning balance, January 1, 2024 $ (12,400) $ 149 $ (12,251) Net change during the period 3,097 (61) 3,036 Ending balance, September 30, 2024 $ (9,303) $ 88 $ (9,215) September 30, 2023 Unrealized Gains on Securities Transferred from Unrealized Loss on Available-for-sale to Accumulated Other (Dollars in thousands) Available-for-sale Securities Held-to-maturity Comprehensive (Loss) Beginning balance, January 1, 2023 $ (28,942) $ 245 $ (28,697) Net change during the period 11,800 (73) 11,727 Ending Balance, September 30, 2023 $ (17,142) $ 172 $ (16,970) The Company did not have any items reclassified out of accumulated other comprehensive income (loss) to net income during the nine months ended September 30, 2024. Items reclassified out of accumulated other comprehensive income (loss) to net income during the nine months ended September 30, 2023 consisted of losses on securities classified as available-for-sale. The losses on these transactions totaled $17.3 million and the related tax benefit was $3.6 million. Losses are included in the “Losses on sale of available-for-sale securities” line item and the related tax is presented in the “Income tax expense” line item in the Consolidated Statements of Income.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 4,235	$ (10,137)	$ 12,344	$ 656

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Nature of Business and Summar_2

Nature of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Nature of Business and Summary of Significant Accounting Policies
Nature of Banking Activities	Nature of Banking Activities John Marshall Bancorp, Inc. (the “Company”), headquartered in Reston, Virginia, became the registered bank holding company under the Bank Holding Company Act of 1956 for its wholly-owned subsidiary, John Marshall Bank (the “Bank”), on March 1, 2017. This reorganization was completed through a one-for-one share exchange in which the Bank’s shareholders received one share of voting common stock of the Company in exchange for each share of the Bank’s voting common stock. The Company was formed on April 21, 2016 under the laws of the Commonwealth Virginia. The Bank was formed on April 5, 2005 under the laws of the Commonwealth of Virginia and was chartered as a bank on February 9, 2006, by the Virginia Bureau of Financial Institutions. The Bank is a member of the Federal Reserve System and is subject to the rules and regulations of the Virginia Bureau of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Federal Deposit Insurance Corporation (“FDIC”). The Bank opened for business on April 17, 2006 and provides banking services to its customers primarily in the Washington, D.C. metropolitan area.
Basis of Presentation	Basis of Presentation The accounting and reporting policies of John Marshall Bancorp, Inc. conform to generally accepted accounting principles in the United States of America (“GAAP”) and reflect practices of the banking industry. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all of the information and notes required by GAAP for complete financial statements. As such, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ended December 31, 2023, included in the Company’s 2023 Annual Report on Form 10-K filed with the SEC on March 20, 2024. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan credit losses. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2023, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or shareholders’ equity.
Significant Accounting Policies and Estimates	Significant Accounting Policies and Estimates Application of the principles of GAAP and practices within the banking industry requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements may reflect different estimates, assumptions, and judgments. Certain policies inherently rely more extensively on the use of estimates, assumptions, and judgments and as such may have a greater possibility of producing results that could be materially different than originally reported. The Company's significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements and notes for the year ended December 31, 2023 and are contained in the Company's 2023 Annual Report on Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2023.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. The Company does not expect the adoption of ASU 2024-03 to have a material impact on its Consolidated financial statements.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
Investment Securities (Tables)	Sep. 30, 2024
Investment Securities
Summary of amortized cost and fair value of securities available-for-sale	September 30, 2024 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Available-for-sale U.S. Treasuries $ 30,892 $ — $ (888) $ 30,004 U.S. government and federal agencies 13,939 — (318) 13,621 Corporate bonds 3,000 — (345) 2,655 U.S. agency collateralized mortgage obligations 38,508 — (5,602) 32,906 Tax-exempt municipal 1,379 — (158) 1,221 Taxable municipal 270 — (9) 261 U.S. agency mortgage-backed 68,438 — (4,457) 63,981 Total Available-for-sale Securities $ 156,426 $ — $ (11,777) $ 144,649 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Available-for-sale U.S. Treasuries $ 44,793 $ — $ (1,816) $ 42,977 U.S. government and federal agencies 13,850 — (575) 13,275 Corporate bonds 3,000 — (477) 2,523 U.S. agency collateralized mortgage obligations 40,806 — (6,496) 34,310 Tax-exempt municipal 1,380 — (149) 1,231 Taxable municipal 606 — (19) 587 U.S. agency mortgage-backed 81,255 — (6,165) 75,090 Total Available-for-sale Securities $ 185,690 $ — $ (15,697) $ 169,993
Schedule of gross unrealized loss position of investments	September 30, 2024 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-sale U.S. Treasuries $ — $ — $ 30,004 $ (888) $ 30,004 $ (888) U.S. government and federal agencies — — 13,621 (318) 13,621 (318) Corporate bonds — — 2,655 (345) 2,655 (345) U.S. agency collateralized mortgage obligations — — 32,906 (5,602) 32,906 (5,602) Tax-exempt municipal — — 1,221 (158) 1,221 (158) Taxable municipal — — 261 (9) 261 (9) U.S. agency mortgage-backed — — 63,981 (4,457) 63,981 (4,457) Total Available-for-sale Securities $ — $ — $ 144,649 $ (11,777) $ 144,649 $ (11,777) December 31, 2023 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available-for-sale U.S. Treasuries $ — $ — $ 42,977 $ (1,816) $ 42,977 $ (1,816) U.S. government and federal agencies — — 13,275 (575) 13,275 (575) Corporate bonds — — 2,523 (477) 2,523 (477) U.S. agency collateralized mortgage obligations — — 34,310 (6,496) 34,310 (6,496) Tax-exempt municipal — — 1,231 (149) 1,231 (149) Taxable municipal — — 587 (19) 587 (19) U.S. agency mortgage-backed — — 75,090 (6,165) 75,090 (6,165) Total Available-for-sale Securities $ — $ — $ 169,993 $ (15,697) $ 169,993 $ (15,697)
Contractual maturities of investment securities	September 30, 2024 Amortized Fair (Dollars in thousands) Cost Value Available-for-sale Due in one year or less $ 23,710 $ 23,463 Due after one year through five years 35,095 33,934 Due after five years through ten years 40,145 38,487 Due after ten years 57,476 48,765 Total Available-for-sale Securities $ 156,426 $ 144,649 September 30, 2024 Amortized Fair (Dollars in thousands) Cost Value Held-to-maturity Due in one year or less $ — $ — Due after one year through five years 25,428 23,212 Due after five years through ten years 23,647 20,555 Due after ten years 43,788 35,964 Total Held-to-maturity Securities $ 92,863 $ 79,731
Summary of amortized cost and fair value of securities held-to-maturity	September 30, 2024 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Held-to-maturity U.S. Treasuries $ 6,002 $ — $ (501) $ 5,501 U.S. government and federal agencies 35,359 — (3,874) 31,485 U.S. agency collateralized mortgage obligations 18,227 — (3,511) 14,716 Taxable municipal 6,045 — (887) 5,158 U.S. agency mortgage-backed 27,230 — (4,359) 22,871 Total Held-to-maturity Securities $ 92,863 $ — $ (13,132) $ 79,731 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value Held-to-maturity U.S. Treasuries $ 6,001 $ — $ (667) $ 5,334 U.S. government and federal agencies 35,434 — (5,100) 30,334 U.S agency collateralized mortgage obligations 19,395 — (4,095) 15,300 Taxable municipal 6,057 — (1,101) 4,956 U.S. agency mortgage-backed 28,618 — (5,010) 23,608 Total Held-to-maturity Securities $ 95,505 $ — $ (15,973) $ 79,532
Summary of restricted securities	(Dollars in thousands) September 30, 2024 December 31, 2023 Federal Reserve Bank Stock $ 3,323 $ 3,310 Federal Home Loan Bank Stock 4,247 1,642 Community Bankers’ Bank Stock 60 60 Total Restricted Securities $ 7,630 $ 5,012

Loans (Tables)

Loans (Tables)	9 Months Ended
Loans (Tables)	Sep. 30, 2024
Loans
Schedule of composition of the loan portfolio	(Dollars in thousands) September 30, 2024 December 31, 2023 Real Estate Loans: Commercial $ 1,162,103 $ 1,146,116 Construction and land development 161,466 180,922 Residential 473,787 482,182 Commercial - Non-Real Estate: Commercial loans 39,867 45,204 Consumer - Non-Real Estate: Consumer loans 877 560 Total Gross Loans $ 1,838,100 $ 1,854,984 Allowance for loan credit losses (18,481) (19,543) Net deferred loan costs 4,498 4,983 Total net loans $ 1,824,117 $ 1,840,424

Allowance for Loan Credit Los_2

Allowance for Loan Credit Losses (Tables)	9 Months Ended
Allowance for Loan Credit Losses (Tables)	Sep. 30, 2024
Allowance for Loan Credit Losses
Schedule of allowance for loan losses activity and balance	September 30, 2024 Real Estate Construction & Land Dollars in thousands Commercial Development Residential Commercial Consumer Total Beginning balance, December 31, 2023 $ 12,841 $ 1,787 $ 4,323 $ 495 $ 97 $ 19,543 Charge-offs — — — — — — Recoveries — — — 2 — 2 Provision for (recovery of) credit losses (1,286) (90) 319 37 (44) (1,064) Ending balance, September 30, 2024 $ 11,555 $ 1,697 $ 4,642 $ 534 $ 53 $ 18,481 September 30, 2023 Real Estate Construction & Land Dollars in thousands Commercial Development Residential Commercial Consumer Unallocated Total Beginning balance, December 31, 2022 $ 13,205 $ 2,860 $ 3,044 $ 456 $ 5 $ 638 $ 20,208 Adjustment to allowance for adoption of ASC 326 (2,649) 476 4,552 367 57 (638) 2,165 Charge-offs — — — — — — — Recoveries — — — 2 — — 2 Provision for (recovery of) credit losses 2,187 (1,148) (3,014) (360) (4) — (2,339) Ending balance, September 30, 2023 $ 12,743 $ 2,188 $ 4,582 $ 465 $ 58 $ — $ 20,036
Schedule of past due and non-accrual loans	September 30, 2024 30-59 Days 60-89 Days 90 Days or 90 Days or More Past Past More Total Past Total Past Due and Nonaccrual (Dollars in thousands) Due Due Past Due Due Current Loans Still Accruing Loans Real Estate Loans Commercial $ — $ — $ — $ — $ 1,162,103 $ 1,162,103 $ — $ — Construction and land development — — — — 161,466 161,466 — — Residential — — — — 473,787 473,787 — — Commercial — — — — 39,867 39,867 — — Consumer — — — — 877 877 — — Total Loans $ — $ — $ — $ — $ 1,838,100 $ 1,838,100 $ — $ — December 31, 2023 30-59 Days 60-89 Days 90 Days or 90 Days or More Past Past More Total Past Total Past Due and Nonaccrual (Dollars in thousands) Due Due Past Due Due Current Loans Still Accruing Loans Real Estate Loans Commercial $ — $ — $ — $ — $ 1,146,116 $ 1,146,116 $ — $ — Construction and land development — — — — 180,922 180,922 — — Residential — — — — 482,182 482,182 — — Commercial — — — — 45,204 45,204 — — Consumer — — — — 560 560 — — Total Loans $ — $ — $ — $ — $ 1,854,984 $ 1,854,984 $ — $ —
Schedule of translation of past due status to risk rating for loans that are not individually risk rated	Internal Days Past Due Risk Rating 0 - 29 days Pass 30-59 days Special Mention 60-89 days Substandard 90-119 days Doubtful 120+ days Loss
Schedule of credit quality indicators	The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of September 30, 2024. Term Loans by Year of Origination (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Total Real Estate Loans - Commercial Pass $ 78,092 $ 66,659 $ 300,478 $ 188,851 $ 117,522 $ 380,300 $ 1,483 $ 1,133,385 Special mention — — 12,702 — — 6,038 — 18,740 Substandard — — — 9,978 — — — 9,978 Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Commercial $ 78,092 $ 66,659 $ 313,180 $ 198,829 $ 117,522 $ 386,338 $ 1,483 $ 1,162,103 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Construction and land development Pass $ 49,926 $ 46,328 $ 26,319 $ 4,224 $ 3,971 $ 4,750 $ 24,842 $ 160,360 Special mention — — — — — 1,106 — 1,106 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Construction and land development $ 49,926 $ 46,328 $ 26,319 $ 4,224 $ 3,971 $ 5,856 $ 24,842 $ 161,466 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Residential Pass $ 21,531 $ 75,694 $ 112,728 $ 117,254 $ 82,799 $ 42,388 $ 21,393 $ 473,787 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Residential $ 21,531 $ 75,694 $ 112,728 $ 117,254 $ 82,799 $ 42,388 $ 21,393 $ 473,787 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Loans Pass $ 4,967 $ 5,077 $ 6,004 $ 1,503 $ 1,667 $ 7,521 $ 13,128 $ 39,867 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial Loans $ 4,967 $ 5,077 $ 6,004 $ 1,503 $ 1,667 $ 7,521 $ 13,128 $ 39,867 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Loans Pass $ 772 $ 81 $ 2 $ — $ — $ 3 $ 19 $ 877 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Consumer Loans $ 772 $ 81 $ 2 $ — $ — $ 3 $ 19 $ 877 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — The following table presents the Company’s recorded investment in loans by credit quality indicator by year of origination as of December 31, 2023. Term Loans by Year of Origination (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Total Real Estate Loans - Commercial Pass $ 67,675 $ 302,342 $ 201,801 $ 125,828 $ 96,424 $ 334,132 $ 3,575 $ 1,131,777 Special mention — 13,102 — 1,237 — — — 14,339 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Commercial $ 67,675 $ 315,444 $ 201,801 $ 127,065 $ 96,424 $ 334,132 $ 3,575 $ 1,146,116 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Construction and land development Pass $ 47,253 $ 56,408 $ 33,827 $ 9,360 $ 8 $ 7,046 $ 24,891 $ 178,793 Special mention — — — — 2,129 — — 2,129 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Construction and land development $ 47,253 $ 56,408 $ 33,827 $ 9,360 $ 2,137 $ 7,046 $ 24,891 $ 180,922 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real Estate Loans - Residential Pass $ 83,060 $ 114,865 $ 133,188 $ 87,275 $ 24,883 $ 21,380 $ 17,531 $ 482,182 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Real Estate Loans - Residential $ 83,060 $ 114,865 $ 133,188 $ 87,275 $ 24,883 $ 21,380 $ 17,531 $ 482,182 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Loans Pass $ 7,564 $ 6,838 $ 1,959 $ 3,207 $ 4,482 $ 4,787 $ 16,367 $ 45,204 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Commercial Loans $ 7,564 $ 6,838 $ 1,959 $ 3,207 $ 4,482 $ 4,787 $ 16,367 $ 45,204 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Loans Pass $ 485 $ 6 $ 26 $ — $ — $ 10 $ 33 $ 560 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total Consumer Loans $ 485 $ 6 $ 26 $ — $ — $ 10 $ 33 $ 560 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ —
Schedule of unfunded commitments	Allowance for Credit Losses (Dollars in thousands) Unfunded Commitments Beginning balance, December 31, 2023 $ 620 Provision for credit losses 397 Ending balance, September 30, 2024 $ 1,017 Allowance for Credit Losses (Dollars in thousands) Unfunded Commitments Beginning balance, December 31, 2022 $ 303 Adjustment to allowance for unfunded commitments for adoption of ASC 326 737 Provision for (recovery of) credit losses (132) Ending balance, September 30, 2023 $ 908

Derivatives (Tables)

Derivatives (Tables)	9 Months Ended
Derivatives (Tables)	Sep. 30, 2024
Derivatives
Schedule of Company's swaps	September 30, 2024 Estimated Weighted Average Notional Fair Years to Receive Pay (Dollars in thousands) Amount Value Maturity Rate Rate Interest rate swap agreements: Pay fixed/receive variable swaps $ 24,347 $ 621 3.0 years 5.57 % 4.08 % Pay variable/receive fixed swaps 24,347 (621) 3.0 years 4.08 % 5.57 % Total interest rate swap agreements $ 48,694 $ — 3.0 years 4.83 % 4.83 % December 31, 2023 Estimated Weighted Average Notional Fair Years to Receive Pay (Dollars in thousands) Amount Value Maturity Rate Rate Interest rate swap agreements: Pay fixed/receive variable swaps $ 19,444 $ 846 3.2 years 5.87 % 3.39 % Pay variable/receive fixed swaps 19,444 (846) 3.2 years 3.39 % 5.87 % Total interest rate swap agreements $ 38,888 $ — 3.2 years 4.63 % 4.63 %

Deposits and Borrowings (Tables

Deposits and Borrowings (Tables)	9 Months Ended
Deposits and Borrowings (Tables)	Sep. 30, 2024
Deposits and Borrowings
Schedule of deposits	(Dollars in thousands) September 30, 2024 December 31, 2023 Deposits: Non-interest bearing demand deposits (1) $ 472,422 $ 411,374 Interest-bearing demand deposits (1) 685,385 607,971 Savings deposits 43,779 52,061 Time deposits (2) 734,564 835,194 Total Deposits $ 1,936,150 $ 1,906,600 (1) Overdraft demand deposits reclassified to loans totaled $1 thousand at September 30, 2024 and $1 thousand at December 31, 2023. (2) The aggregate amount of certificates of deposit with a minimum denomination of $250,000 was $335.1 million and $359.3 million at September 30, 2024 and December 31, 2023, respectively.
Schedule of short-term debt and long-term debt	September 30, 2024 December 31, 2023 (Dollars in thousands) Stated Interest Rate Range Weighted-Average Interest Rate Carrying Value Carrying Value Short-term Debt: Federal Reserve Bank borrowings 4.76 % 4.76 % $ — $ 54,000 Total Short-term Debt $ — $ 54,000 Long-term Debt: FHLB advances 3.92% - 4.15 % 4.01 % 56,000 — Subordinated debt 5.25 % 5.25 % $ 24,770 $ 24,708 Total Long-term Debt $ 80,770 $ 24,708
Schedule of carrying amount of the time deposits by contractual maturity	(Dollars in thousands) September 30, 2024 2024 $ 157,862 2025 411,226 2026 104,949 2027 59,094 2028 553 Thereafter 880 Total $ 734,564

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
Commitments and Contingencies (Tables)	Sep. 30, 2024
Commitments and Contingencies
Summary of the contract or notional amount of the Company's exposure to off-balance sheet risk	(Dollars in thousands) September 30, 2024 December 31, 2023 Commitments to extend credit $ 295,139 $ 235,560 Standby letters of credit $ 14,062 $ 16,329

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2024
Fair Value Measurements
Summary of fair value of assets measured at fair value on a recurring basis	Fair Value Measurements at September 30, 2024 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs (Dollars in thousands) September 30, 2024 (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. Treasuries $ 30,004 $ — $ 30,004 $ — U.S. government and federal agencies 13,621 — 13,621 — Corporate bonds 2,655 — 2,655 — U.S. agency collateralized mortgage obligations 32,906 — 32,906 — Tax-exempt municipal 1,221 — 1,221 — Taxable municipal 261 — 261 — U.S. agency mortgage-backed 63,981 — 63,981 — Equity securities, at fair value 2,698 2,698 — — Interest rate swap agreements 621 — 621 — Total assets at fair value $ 147,968 $ 2,698 $ 145,270 $ — Liabilities: Interest rate swap agreements $ 621 $ — $ 621 $ — Total liabilities at fair value $ 621 $ — $ 621 $ — Fair Value Measurements at December 31, 2023 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Balance as of Identical Assets Observable Inputs Inputs (Dollars in thousands) December 31, 2023 (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. Treasuries $ 42,977 $ — $ 42,977 $ — U.S. government and federal agencies 13,275 — 13,275 — Corporate bonds 2,523 — 2,523 — U.S. agency collateralized mortgage obligations 34,310 — 34,310 — Tax-exempt municipal 1,231 — 1,231 — Taxable municipal 587 — 587 — U.S. agency mortgage-backed 75,090 — 75,090 — Equity securities, at fair value 2,792 2,792 — — Interest rate swap agreement 846 — 846 — Total assets at fair value $ 173,631 $ 2,792 $ 170,839 $ — Liabilities: Interest rate swap agreement $ 846 $ — $ 846 $ — Total liabilities at fair value $ 846 $ — $ 846 $ —
Summary of carrying value and estimated fair value of financial instruments	The following tables present the carrying value and estimated fair value, including the level within the fair value hierarchy, of the Company’s financial instruments as of September 30, 2024 and December 31, 2023. Fair Value Measurements at September 30, 2024 Using Quoted Prices in Active Markets Significant for Identical Significant Other Unobservable Carrying Value as of Assets Observable Inputs Inputs Fair Value as of (Dollars in thousands) September 30, 2024 (Level 1) (Level 2) (Level 3) September 30, 2024 Assets: Cash and cash equivalents $ 177,227 $ 177,227 $ — $ — $ 177,227 Securities: Available-for-sale 144,649 — 144,649 — 144,649 Held-to-maturity 92,863 — 79,731 — 79,731 Equity securities, at fair value 2,698 2,698 — — 2,698 Restricted securities, at cost 7,630 — 7,630 — 7,630 Loans, net 1,824,117 — — 1,714,937 1,714,937 Interest rate swap agreements 621 — 621 — 621 Loan servicing rights 104 — — 118 118 Accrued interest receivable 5,657 — 5,657 — 5,657 Liabilities: Deposits $ 1,936,150 $ — $ 1,940,540 $ — $ 1,940,540 Federal Home Loan Bank advances 56,000 — 56,000 — 56,000 Subordinated debt 24,770 — — 22,306 22,306 Interest rate swap agreements 621 — 621 — 621 Accrued interest payable 2,304 — 2,304 — 2,304 Fair Value Measurements at December 31, 2023 Using Quoted Prices in Active Markets Significant for Identical Significant Other Unobservable Carrying Value as of Assets Observable Inputs Inputs Fair Value as of (Dollars in thousands) December 31, 2023 (Level 1) (Level 2) (Level 3) December 31, 2023 Assets: Cash and cash equivalents $ 99,005 $ 99,005 $ — $ — $ 99,005 Securities: Available-for-sale 169,993 — 169,993 — 169,993 Held-to-maturity 95,505 — 79,532 — 79,532 Equity securities, at fair value 2,792 2,792 — — 2,792 Restricted securities, at cost 5,012 — 5,012 — 5,012 Loans, net 1,840,424 — — 1,730,205 1,730,205 Interest rate swap agreement 846 — 846 — 846 Loan servicing rights 22 — — 22 22 Accrued interest receivable 6,110 — 6,110 — 6,110 Liabilities: Deposits $ 1,906,600 $ — $ 1,906,835 $ — $ 1,906,835 Federal Reserve Bank borrowings 54,000 54,000 54,000 Federal funds purchased 10,000 — 10,000 — 10,000 Subordinated debt 24,708 — — 21,873 21,873 Interest rate swap agreement 846 — 846 — 846 Accrued interest payable 4,559 — 4,559 — 4,559

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
Earnings per Common Share (Tables)	Sep. 30, 2024
Earnings per Common Share
Schedule of computation of earnings per share	The following table summarizes the computation of earnings per share for the three and nine months ended September 30, 2024 and September 30, 2023. Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Earnings (loss) per common share - basic: Income available to common shareholders (in thousands): Net income (loss) $ 4,235 $ (10,137) $ 12,344 $ 656 Less: Income attributable to unvested restricted stock awards (14) — (40) (2) Net income (loss) available to common shareholders $ 4,221 $ (10,137) $ 12,304 $ 654 Weighted average shares outstanding: Common shares outstanding, including unvested restricted stock 14,233,612 14,126,114 14,209,916 14,174,804 Less: Unvested restricted stock (45,921) (46,088) (45,855) (48,282) Weighted-average common shares outstanding - basic 14,187,691 14,080,026 14,164,061 14,126,522 Earnings (loss) per common share - basic $ 0.30 $ (0.72) $ 0.87 $ 0.05 Earnings (loss) per common share - diluted: Income available to common shareholders (in thousands): Net income (loss) $ 4,235 $ (10,137) $ 12,344 $ 656 Less: Income attributable to unvested restricted stock awards (14) — (40) (2) Net income (loss) available to common shareholders $ 4,221 $ (10,137) $ 12,304 $ 654 Weighted average shares outstanding: Common shares outstanding, including unvested restricted stock 14,233,612 14,126,114 14,209,916 14,174,804 Less: Unvested restricted stock (45,922) (46,088) (45,855) (48,282) Plus: Effect of dilutive options 26,896 — 34,272 72,656 Weighted-average common shares outstanding - diluted 14,214,586 14,080,026 14,198,333 14,199,178 Earnings (loss) per common share - diluted $ 0.30 $ (0.72) $ 0.87 $ 0.05

Stock Based Compensation Plan (

Stock Based Compensation Plan (Tables)	9 Months Ended
Stock Based Compensation Plan (Tables)	Sep. 30, 2024
Stock Based Compensation Plan
Summary of stock options activity	September 30, 2024 Weighted Average Aggregate Intrinsic Shares Exercise Price Value Outstanding at January 1, 2024 162,147 $ 11.77 Granted — — Exercised (92,038) 11.77 Forfeited or expired (7,574) 11.94 Outstanding at September 30, 2024 62,535 11.77 $ 500,765 Exercisable September 30, 2024 62,535 $ 11.77 $ 500,765
Summary of stock options outstanding and exercisable	September 30, 2024 Options Outstanding Options Exercisable Weighted Average Weighted Average Remaining Remaining Number Contractual Life Number Contractual Life Exercise Prices Outstanding in Years Exercisable in Years $11.01 - $12.00 62,223 0.56 62,223 0.56 $12.01 - $13.00 312 0.88 312 0.88 Total 62,535 0.56 62,535 0.56
Summary of restricted stock awards	The table below provides a summary of the restricted stock awards granted under the 2015 plan for the nine months ended September 30, 2024. September 30, 2024 Weighted Average Shares Grant Date Fair Value Nonvested at January 1, 2024 47,318 $ 23.12 Granted 1,750 17.49 Vested (2,815) 16.20 Forfeited (500) 23.66 Nonvested at September 30, 2024 45,753 23.32

Regulatory Capital (Tables)

Regulatory Capital (Tables)	9 Months Ended
Regulatory Capital (Tables)	Sep. 30, 2024
Regulatory Capital
Schedule of compliance with regulatory capital requirements under banking regulations	Minimum To Be Well Capitalized Actual Minimum Capital Requirement (1) Under Prompt Corrective Action (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2024 Total capital (to risk weighted assets) $ 291,881 16.3 % $ 187,705 10.5 % $ 178,766 10.0 % Tier 1 capital (to risk weighted assets) 273,529 15.3 % 151,951 8.5 % 143,013 8.0 % Common equity tier 1 capital (to risk weighted assets) 273,529 15.3 % 125,136 7.0 % 116,198 6.5 % Tier 1 capital (to average assets) 273,529 11.9 % 91,608 4.0 % 114,510 5.0 % As of December 31, 2023 Total capital (to risk weighted assets) $ 282,082 15.7 % $ 188,448 10.5 % $ 179,475 10.0 % Tier 1 capital (to risk weighted assets) 263,637 14.7 % 152,553 8.5 % 143,580 8.0 % Common equity tier 1 capital (to risk weighted assets) 263,637 14.7 % 125,632 7.0 % 116,658 6.5 % Tier 1 capital (to average assets) 263,637 11.6 % 91,163 4.0 % 113,954 5.0 % (1)

Revenue (Tables)

Revenue (Tables)	9 Months Ended
Revenue (Tables)	Sep. 30, 2024
Revenue
Schedule of components of non-interest income	The following table shows the components of non-interest income for the three and nine months ended September 30, 2024 and September 30, 2023. Three months ended Nine months ended September 30, September 30, (Dollars in thousands) 2024 2023 2024 2023 Service charges on deposit accounts (1) Overdrawn account fees $ 18 $ 20 $ 61 $ 55 Account service fees 66 65 199 184 Other service charges and fees (1) Interchange income 91 101 271 304 Other charges and fees 69 59 203 373 Bank owned life insurance — 23 — 224 Losses on sale of available-for-sale securities — (17,114) — (17,316) Net gains on premises and equipment (1) 1 — 1 16 Insurance commissions (1) 64 54 357 310 Gain on sale of government guaranteed loans 160 27 509 50 Non-qualified deferred compensation plan asset gains (losses), net 139 (60) 298 112 Other operating income (2) 9 10 91 124 Total non-interest income $ 617 $ (16,815) $ 1,990 $ (15,564) (1) Income within the scope of ASC 606. (2) Includes other operating income within the scope of ASC 606 amounting to $9 thousand and $27 thousand for the three and nine months ended September 30, 2024, respectively. Includes other operating income of $0 and $64 thousand related to swap fee income on a back-to-back loan swaps for the three and nine months ended September 30, 2024, which is outside the scope of ASC 606. Includes other operating income within the scope of ASC 606 amounting to $10 thousand and $33 thousand for the three and nine months ended September 30, 2023, respectively. Includes other operating income of $91 thousand related to swap fee income on a back-to-back loan swaps for the nine months ended September 30, 2023, which is outside the scope of ASC 606.

Other Operating Expenses (Table

Other Operating Expenses (Tables)	9 Months Ended
Other Operating Expenses (Tables)	Sep. 30, 2024
Other Operating Expenses
Schedule of components of other operating expenses	The following table shows the components of other operating expenses for the three and nine months ended September 30, 2024 and September 30, 2023. Three months ended Nine months ended September 30, September 30, (Dollars in thousands) 2024 2023 2024 2023 Advertising expense $ 96 $ 87 $ 290 $ 239 Data processing 538 493 1,595 1,374 FDIC insurance 250 275 730 771 Professional fees 256 (141) 750 154 State franchise tax 574 604 1,718 1,785 Director costs 192 186 593 629 Other operating expenses 480 377 1,359 1,135 Total other operating expenses $ 2,386 $ 1,881 $ 7,035 $ 6,087

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Sep. 30, 2024
Accumulated Other Comprehensive Income (Loss)
Schedule of changes in accumulated other comprehensive income (loss)	September 30, 2024 Unrealized Gains on Securities Transferred from Unrealized Loss on Available-for-sale to Accumulated Other (Dollars in thousands) Available-for-sale Securities Held-to-maturity Comprehensive Loss Beginning balance, January 1, 2024 $ (12,400) $ 149 $ (12,251) Net change during the period 3,097 (61) 3,036 Ending balance, September 30, 2024 $ (9,303) $ 88 $ (9,215) September 30, 2023 Unrealized Gains on Securities Transferred from Unrealized Loss on Available-for-sale to Accumulated Other (Dollars in thousands) Available-for-sale Securities Held-to-maturity Comprehensive (Loss) Beginning balance, January 1, 2023 $ (28,942) $ 245 $ (28,697) Net change during the period 11,800 (73) 11,727 Ending Balance, September 30, 2023 $ (17,142) $ 172 $ (16,970)

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Value - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Securities Available-for-Sale
Amortized cost, available for sale	$ 156,426	$ 185,690
Gross unrealized (losses)	(11,777)	(15,697)
Available-for-sale, fair value	144,649	169,993
Past Due
Securities Available-for-Sale
Available-for-sale, fair value	0	0
U.S. Treasuries
Securities Available-for-Sale
Amortized cost, available for sale	30,892	44,793
Gross unrealized (losses)	(888)	(1,816)
Available-for-sale, fair value	30,004	42,977
U.S. government and federal agencies
Securities Available-for-Sale
Amortized cost, available for sale	13,939	13,850
Gross unrealized (losses)	(318)	(575)
Available-for-sale, fair value	13,621	13,275
Corporate bonds
Securities Available-for-Sale
Amortized cost, available for sale	3,000	3,000
Gross unrealized (losses)	(345)	(477)
Available-for-sale, fair value	2,655	2,523
U.S. agency collateralized mortgage obligations
Securities Available-for-Sale
Amortized cost, available for sale	38,508	40,806
Gross unrealized (losses)	(5,602)	(6,496)
Available-for-sale, fair value	32,906	34,310
Tax-exempt municipal
Securities Available-for-Sale
Amortized cost, available for sale	1,379	1,380
Gross unrealized (losses)	(158)	(149)
Available-for-sale, fair value	1,221	1,231
Taxable municipal
Securities Available-for-Sale
Amortized cost, available for sale	270	606
Gross unrealized (losses)	(9)	(19)
Available-for-sale, fair value	261	587
U.S. agency mortgage-backed
Securities Available-for-Sale
Amortized cost, available for sale	68,438	81,255
Gross unrealized (losses)	(4,457)	(6,165)
Available-for-sale, fair value	$ 63,981	$ 75,090

Investment Securities - Securit

Investment Securities - Securities in a Gross Unrealized Loss Position - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available-for-Sale, Fair Value
Fair Value, 12 Months or Longer	$ 144,649	$ 169,993
Fair Value	144,649	169,993
Gross Unrealized Losses
Gross Unrealized Losses, 12 Months or Longer	(11,777)	(15,697)
Gross Unrealized Losses	(11,777)	(15,697)
U.S. Treasuries
Available-for-Sale, Fair Value
Fair Value, 12 Months or Longer	30,004	42,977
Fair Value	30,004	42,977
Gross Unrealized Losses
Gross Unrealized Losses, 12 Months or Longer	(888)	(1,816)
Gross Unrealized Losses	(888)	(1,816)
U.S. government and federal agencies
Available-for-Sale, Fair Value
Fair Value, 12 Months or Longer	13,621	13,275
Fair Value	13,621	13,275
Gross Unrealized Losses
Gross Unrealized Losses, 12 Months or Longer	(318)	(575)
Gross Unrealized Losses	(318)	(575)
Corporate bonds
Available-for-Sale, Fair Value
Fair Value, 12 Months or Longer	2,655	2,523
Fair Value	2,655	2,523
Gross Unrealized Losses
Gross Unrealized Losses, 12 Months or Longer	(345)	(477)
Gross Unrealized Losses	(345)	(477)
U.S. agency collateralized mortgage obligations
Available-for-Sale, Fair Value
Fair Value, 12 Months or Longer	32,906	34,310
Fair Value	32,906	34,310
Gross Unrealized Losses
Gross Unrealized Losses, 12 Months or Longer	(5,602)	(6,496)
Gross Unrealized Losses	(5,602)	(6,496)
Tax-exempt municipal
Available-for-Sale, Fair Value
Fair Value, 12 Months or Longer	1,221	1,231
Fair Value	1,221	1,231
Gross Unrealized Losses
Gross Unrealized Losses, 12 Months or Longer	(158)	(149)
Gross Unrealized Losses	(158)	(149)
Taxable municipal
Available-for-Sale, Fair Value
Fair Value, 12 Months or Longer	261	587
Fair Value	261	587
Gross Unrealized Losses
Gross Unrealized Losses, 12 Months or Longer	(9)	(19)
Gross Unrealized Losses	(9)	(19)
U.S. agency mortgage-backed
Available-for-Sale, Fair Value
Fair Value, 12 Months or Longer	63,981	75,090
Fair Value	63,981	75,090
Gross Unrealized Losses
Gross Unrealized Losses, 12 Months or Longer	(4,457)	(6,165)
Gross Unrealized Losses	$ (4,457)	$ (6,165)

Investment Securities - Contrac

Investment Securities - Contractual Maturities of Investment Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Available-for-sale, Amortized Cost
Due in one year or less	$ 23,710
Due after one year through five years	35,095
Due after five years through ten years	40,145
Due after ten years	57,476
Total amortized cost, available for sale	156,426	$ 185,690
Available-for-sale, Fair Value
Due in one year or less	23,463
Due after one year through five years	33,934
Due after five years through ten years	38,487
Due after ten years	48,765
Total fair value, available for sale	$ 144,649	$ 169,993
Weighted average remaining life	2 years 9 months 18 days	3 years

Investment Securities - Amort_2

Investment Securities - Amortized Cost and Fair Value - Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Securities Held-to-Maturity
Amortized cost, held to maturity	$ 92,863	$ 95,505
Gross unrealized (losses)	(13,132)	(15,973)
Securities held-to-maturity, fair value	79,731	79,532
U.S. Treasuries
Securities Held-to-Maturity
Amortized cost, held to maturity	6,002	6,001
Gross unrealized (losses)	(501)	(667)
Securities held-to-maturity, fair value	5,501	5,334
U.S. government and federal agencies
Securities Held-to-Maturity
Amortized cost, held to maturity	35,359	35,434
Gross unrealized (losses)	(3,874)	(5,100)
Securities held-to-maturity, fair value	31,485	30,334
U.S. agency collateralized mortgage obligations
Securities Held-to-Maturity
Amortized cost, held to maturity	18,227	19,395
Gross unrealized (losses)	(3,511)	(4,095)
Securities held-to-maturity, fair value	14,716	15,300
Taxable municipal
Securities Held-to-Maturity
Amortized cost, held to maturity	6,045	6,057
Gross unrealized (losses)	(887)	(1,101)
Securities held-to-maturity, fair value	5,158	4,956
U.S. agency mortgage-backed
Securities Held-to-Maturity
Amortized cost, held to maturity	27,230	28,618
Gross unrealized (losses)	(4,359)	(5,010)
Securities held-to-maturity, fair value	$ 22,871	$ 23,608

Investment Securities - Contr_2

Investment Securities - Contractual Maturities of Investment Securities - Held-to-maturity Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Held-to-maturity, Amortized Cost
Due after one year through five years	$ 25,428
Due after five years through ten years	23,647
Due after ten years	43,788
Total held to maturity securities, amortized cost	92,863	$ 95,505
Held-to-maturity, Fair Value
Due after one year through five years	23,212
Due after five years through ten years	20,555
Due after ten years	35,964
Total held to maturity securities, fair value	$ 79,731	$ 79,532
Weighted average remaining life	6 years	6 years 8 months 12 days

Investment Securities - Restric

Investment Securities - Restricted Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Investment Securities
Federal Reserve Bank Stock	$ 3,323	$ 3,310
Federal Home Loan Bank Stock	4,247	1,642
Community Bankers' Bank Stock	60	60
Total Restricted Securities	$ 7,630	$ 5,012

Investment Securities - Additio

Investment Securities - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) security	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 security
Proceeds from Sale and Maturity of Debt Securities, Available-for-Sale
Available-for-sale securities, par value	$ 161,200		$ 173,200
Losses on sale of available-for-sale securities	$ 17,100	$ 17,114	$ 17,316
Number of securities in unrealized loss position \| security	151			158
Allowance for credit loss, debt securities	$ 0

Investment Securities - Pledged

Investment Securities - Pledged Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Investment Securities
Amortized cost, available for sale	$ 156,426	$ 185,690
Available-for-sale, fair value	144,649	169,993
Amortized cost, held to maturity	92,863	95,505
Securities held-to-maturity, fair value	79,731	79,532
Asset Pledged as Collateral without Right \| Deposits
Investment Securities
Amortized cost, available for sale	59,100	95,800
Available-for-sale, fair value	56,400	90,300
Amortized cost, held to maturity	50,000	42,300
Securities held-to-maturity, fair value	$ 44,300	$ 36,100

Investment Securities - Equity

Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Equity Securities
Equity securities with readily determinable fair values	$ 2,698		$ 2,698		$ 2,792
Equity Securities, Realized Gain (Loss)
Gain (loss) on investments	$ 139	$ (60)	$ 298	$ 112

Loans (Details)

Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Gross Loans	$ 1,838,100	$ 1,854,984
Allowance for loan credit losses	(18,481)	(19,543)
Net deferred loan costs.	4,498	4,983
Total net loans	1,824,117	1,840,424
Real Estate Loans \| Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Gross Loans	1,162,103	1,146,116
Real Estate Loans \| Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Gross Loans	161,466	180,922
Real Estate Loans \| Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Gross Loans	473,787	482,182
Commercial - Non-Real Estate \| Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Gross Loans	39,867	45,204
Consumer - Non-Real Estate \| Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Gross Loans	$ 877	$ 560

Allowance for Loan Credit Los_3

Allowance for Loan Credit Losses - Allowance for loan losses activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance	$ 19,543	$ 20,208
Recoveries	2	2
Provision for (recovery of) credit losses	(1,064)	(2,339)
Ending balance	18,481	20,036
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		2,165
Real Estate Loans \| Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance	12,841	13,205
Provision for (recovery of) credit losses	(1,286)	2,187
Ending balance	11,555	12,743
Real Estate Loans \| Commercial Real Estate \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		(2,649)
Real Estate Loans \| Construction and land development
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance	1,787	2,860
Provision for (recovery of) credit losses	(90)	(1,148)
Ending balance	1,697	2,188
Real Estate Loans \| Construction and land development \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		476
Real Estate Loans \| Residential Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance	4,323	3,044
Provision for (recovery of) credit losses	319	(3,014)
Ending balance	4,642	4,582
Real Estate Loans \| Residential Real Estate \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		4,552
Commercial - Non-Real Estate \| Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance	495	456
Recoveries	2	2
Provision for (recovery of) credit losses	37	(360)
Ending balance	534	465
Commercial - Non-Real Estate \| Commercial \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		367
Consumer - Non-Real Estate \| Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance	97	5
Provision for (recovery of) credit losses	(44)	(4)
Ending balance	$ 53	58
Consumer - Non-Real Estate \| Consumer \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		57
Unallocated
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		638
Unallocated \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		$ (638)

Allowance for Loan Credit Los_4

Allowance for Loan Credit Losses - Allowance and loans by impairment methodology (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($) loan	Dec. 31, 2023 loan
Allowance for Loan Credit Losses
Number of collateral dependent loans \| loan	1	0
Individually evaluated for impairment, allowance \| $	$ 10

Allowance for Loan Credit Los_5

Allowance for Loan Credit Losses - Past due and non-accrual loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing receivable, past due
Current	$ 1,838,100	$ 1,854,984
Total loans	1,838,100	1,854,984
Commercial Real Estate \| Real Estate Loans
Financing receivable, past due
Current	1,162,103	1,146,116
Total loans	1,162,103	1,146,116
Construction and land development \| Real Estate Loans
Financing receivable, past due
Current	161,466	180,922
Total loans	161,466	180,922
Residential Real Estate \| Real Estate Loans
Financing receivable, past due
Current	473,787	482,182
Total loans	473,787	482,182
Commercial \| Commercial - Non-Real Estate
Financing receivable, past due
Current	39,867	45,204
Total loans	39,867	45,204
Consumer \| Consumer - Non-Real Estate
Financing receivable, past due
Current	877	560
Total loans	$ 877	$ 560

Allowance for Loan Credit Los_6

Allowance for Loan Credit Losses - Credit quality indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing receivable, credit quality indicator
Total	$ 1,842,598	$ 1,859,967
Commercial Real Estate \| Real Estate Loans
Financing receivable, credit quality indicator
Current year	78,092	67,675
Prior year	66,659	315,444
Two years prior	313,180	201,801
Three years prior	198,829	127,065
Four years prior	117,522	96,424
Prior	386,338	334,132
Revolving	1,483	3,575
Total	1,162,103	1,146,116
Construction and land development \| Real Estate Loans
Financing receivable, credit quality indicator
Current year	49,926	47,253
Prior year	46,328	56,408
Two years prior	26,319	33,827
Three years prior	4,224	9,360
Four years prior	3,971	2,137
Prior	5,856	7,046
Revolving	24,842	24,891
Total	161,466	180,922
Residential Real Estate \| Real Estate Loans
Financing receivable, credit quality indicator
Current year	21,531	83,060
Prior year	75,694	114,865
Two years prior	112,728	133,188
Three years prior	117,254	87,275
Four years prior	82,799	24,883
Prior	42,388	21,380
Revolving	21,393	17,531
Total	473,787	482,182
Commercial \| Commercial - Non-Real Estate
Financing receivable, credit quality indicator
Current year	4,967	7,564
Prior year	5,077	6,838
Two years prior	6,004	1,959
Three years prior	1,503	3,207
Four years prior	1,667	4,482
Prior	7,521	4,787
Revolving	13,128	16,367
Total	39,867	45,204
Consumer \| Consumer - Non-Real Estate
Financing receivable, credit quality indicator
Current year	772	485
Prior year	81	6
Two years prior	2	26
Prior	3	10
Revolving	19	33
Total	877	560
Pass \| Commercial Real Estate \| Real Estate Loans
Financing receivable, credit quality indicator
Current year	78,092	67,675
Prior year	66,659	302,342
Two years prior	300,478	201,801
Three years prior	188,851	125,828
Four years prior	117,522	96,424
Prior	380,300	334,132
Revolving	1,483	3,575
Total	1,133,385	1,131,777
Pass \| Construction and land development \| Real Estate Loans
Financing receivable, credit quality indicator
Current year	49,926	47,253
Prior year	46,328	56,408
Two years prior	26,319	33,827
Three years prior	4,224	9,360
Four years prior	3,971	8
Prior	4,750	7,046
Revolving	24,842	24,891
Total	160,360	178,793
Pass \| Residential Real Estate \| Real Estate Loans
Financing receivable, credit quality indicator
Current year	21,531	83,060
Prior year	75,694	114,865
Two years prior	112,728	133,188
Three years prior	117,254	87,275
Four years prior	82,799	24,883
Prior	42,388	21,380
Revolving	21,393	17,531
Total	473,787	482,182
Pass \| Commercial \| Commercial - Non-Real Estate
Financing receivable, credit quality indicator
Current year	4,967	7,564
Prior year	5,077	6,838
Two years prior	6,004	1,959
Three years prior	1,503	3,207
Four years prior	1,667	4,482
Prior	7,521	4,787
Revolving	13,128	16,367
Total	39,867	45,204
Pass \| Consumer \| Consumer - Non-Real Estate
Financing receivable, credit quality indicator
Current year	772	485
Prior year	81	6
Two years prior	2	26
Prior	3	10
Revolving	19	33
Total	877	560
Special Mention \| Commercial Real Estate \| Real Estate Loans
Financing receivable, credit quality indicator
Prior year		13,102
Two years prior	12,702
Three years prior		1,237
Prior	6,038
Total	18,740	14,339
Special Mention \| Construction and land development \| Real Estate Loans
Financing receivable, credit quality indicator
Four years prior		2,129
Prior	1,106
Total	1,106	$ 2,129
Substandard \| Commercial Real Estate \| Real Estate Loans
Financing receivable, credit quality indicator
Three years prior	9,978
Total	$ 9,978

Allowance for Loan Credit Los_7

Allowance for Loan Credit Losses - Modifications and Unfunded Commitments (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($) loan	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($) loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Number Of Loan Modifications \| loan	1	1	0
Loan with modifications outstanding principal balance	$ 1,500	$ 1,500
Percentage of commercial loan segment with loan modifications		0.13%
Beginning Balance		$ 19,543	$ 20,208
Provision for (recovery of) credit losses		(667)	(2,471)
Ending balance	18,481	18,481	20,036
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance			2,165
Unfunded loan commitments
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance		620	303
Provision for (recovery of) credit losses		397	(132)
Ending balance	$ 1,017	$ 1,017	908
Unfunded loan commitments \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Beginning Balance			$ 737

Derivatives (Details)

Derivatives (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Derivatives
Years to maturity	3 years	3 years 2 months 12 days
Interest Rate Swap \| Not Designated as Hedging Instrument
Derivatives
Notional amount	$ 48,694	$ 38,888
Derivative, average variable interest rate (as a percent)	4.83%	4.63%
Derivative, average fixed interest rate (as a percent)	4.83%	4.63%
Pay fixed/receive variable swaps \| Not Designated as Hedging Instrument
Derivatives
Notional amount	$ 24,347	$ 19,444
Estimated fair value, assets	$ 621	$ 846
Derivative, average variable interest rate (as a percent)	5.57%	5.87%
Derivative, average fixed interest rate (as a percent)	4.08%	3.39%
Pay variable/receive fixed swaps \| Not Designated as Hedging Instrument
Derivatives
Notional amount	$ 24,347	$ 19,444
Estimated fair value, (liabilities)	$ (621)	$ (846)
Derivative, average variable interest rate (as a percent)	4.08%	3.39%
Derivative, average fixed interest rate (as a percent)	5.57%	5.87%

Deposits and Borrowings - Depos

Deposits and Borrowings - Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Deposits:
Non-interest bearing demand deposits	$ 472,422	$ 411,374
Interest-bearing demand deposits	685,385	607,971
Savings deposits	43,779	52,061
Time deposits	734,564	835,194
Total deposits	$ 1,936,150	$ 1,906,600

Deposits and Borrowings - Short

Deposits and Borrowings - Short- term Debt and Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Carrying Value - Short-term Debt		$ 54,000
Carrying Value - Long-term Debt	$ 80,770	24,708
Minimum
Debt Instrument [Line Items]
Stated Interest Rates	3.92%
Maximum
Debt Instrument [Line Items]
Stated Interest Rates	4.15%
Federal Reserve Bank borrowings
Debt Instrument [Line Items]
Stated Interest Rates	4.76%
Weighted-Average Interest Rate	4.76%
Carrying Value - Short-term Debt		54,000
Subordinated debt
Debt Instrument [Line Items]
Stated Interest Rates	5.25%
Weighted-Average Interest Rate	5.25%
Carrying Value - Long-term Debt	$ 24,770	$ 24,708
FHLB advances
Debt Instrument [Line Items]
Weighted-Average Interest Rate	4.01%
Carrying Value - Long-term Debt	$ 56,000
FHLB advances \| Minimum
Debt Instrument [Line Items]
Stated Interest Rates	3.92%
FHLB advances \| Maximum
Debt Instrument [Line Items]
Stated Interest Rates	4.15%

Deposits and Borrowings - Addit

Deposits and Borrowings - Additional Information (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2024 USD ($) customer	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Sep. 03, 2024	Jun. 15, 2022 USD ($)
Debt instrument
Overdraft demand deposits reclassified to loans	$ 1		$ 1
Certificate of deposits with minimum denomination of $250,000	335,100		359,300
Brokered deposits	$ 276,100		320,600
Number of depositors representing five percent or more of total deposits \| customer	0
Investment, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
Outstanding FHLB advances	$ 80,770		24,708
FHLB available borrowing capacity	373,200
Loans, net of unearned income	1,842,598		1,859,967
(Repayment of) proceeds from Federal Reserve Bank borrowings	(54,000)	$ 54,000
Federal Reserve Bank borrowings
Debt instrument
Maximum borrowing capacity	101,600
Short-Term Debt	54,000
Proceeds from short-term debt	$ 23,000
Minimum
Debt instrument
Stated Interest Rates	3.92%
Maximum
Debt instrument
Stated Interest Rates	4.15%
Subordinated debt
Debt instrument
Face amount or Principal amount					$ 25,000
Stated Interest Rates	5.25%
Basis points	2.45%
Outstanding FHLB advances	$ 24,770		$ 24,708
FHLB advances
Debt instrument
Outstanding FHLB advances	$ 56,000
FHLB advances \| Minimum
Debt instrument
Stated Interest Rates	3.92%
FHLB advances \| Maximum
Debt instrument
Stated Interest Rates	4.15%
FHLB advances one
Debt instrument
FHLB fixed interest rate advances				18 months
FHLB advances two
Debt instrument
FHLB fixed interest rate advances				24 months
FHLB advances three
Debt instrument
FHLB fixed interest rate advances				36 months
Federal Funds
Debt instrument
Maximum borrowing capacity	$ 110,000
Line of credit	$ 0
Federal Reserve Bank borrowings
Debt instrument
Stated Interest Rates	4.76%
Line of credit	$ 0
Federal Reserve Bank borrowings \| Asset Pledged as Collateral without Right
Debt instrument
Loans, net of unearned income	$ 147,600

Deposits and Borrowings - Time

Deposits and Borrowings - Time deposits by contractual maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Contractual maturity
2024	$ 157,862
2025	411,226
2026	104,949
2027	59,094
2028	553
Thereafter	880
Total	$ 734,564	$ 835,194

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Commitments to extend credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks, face amount	$ 295,139	$ 235,560
Standby letters of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risks, face amount	$ 14,062	$ 16,329

Fair Value Measurements - Fair

Fair Value Measurements - Fair value of assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Securities available-for-sale:
Securities available-for-sale, at fair value	$ 144,649	$ 169,993
Equity securities, at fair value	2,698	2,792
U.S. Treasuries
Securities available-for-sale:
Securities available-for-sale, at fair value	30,004	42,977
U.S. government and federal agencies
Securities available-for-sale:
Securities available-for-sale, at fair value	13,621	13,275
Corporate bonds
Securities available-for-sale:
Securities available-for-sale, at fair value	2,655	2,523
U.S. agency collateralized mortgage obligations
Securities available-for-sale:
Securities available-for-sale, at fair value	32,906	34,310
Tax-exempt municipal
Securities available-for-sale:
Securities available-for-sale, at fair value	1,221	1,231
Taxable municipal
Securities available-for-sale:
Securities available-for-sale, at fair value	261	587
U.S. agency mortgage-backed
Securities available-for-sale:
Securities available-for-sale, at fair value	63,981	75,090
Fair Value, Recurring
Securities available-for-sale:
Equity securities, at fair value	2,698	2,792
Total assets at fair value	147,968	173,631
Liabilities:
Total liabilities at fair value	621	846
Fair Value, Recurring \| Interest Rate Swap
Securities available-for-sale:
Interest rate swap agreements	621
Total assets at fair value		846
Liabilities:
Interest rate swap agreements	621	846
Fair Value, Recurring \| U.S. Treasuries
Securities available-for-sale:
Securities available-for-sale, at fair value	30,004	42,977
Fair Value, Recurring \| U.S. government and federal agencies
Securities available-for-sale:
Securities available-for-sale, at fair value	13,621	13,275
Fair Value, Recurring \| Corporate bonds
Securities available-for-sale:
Securities available-for-sale, at fair value	2,655	2,523
Fair Value, Recurring \| U.S. agency collateralized mortgage obligations
Securities available-for-sale:
Securities available-for-sale, at fair value	32,906	34,310
Fair Value, Recurring \| Tax-exempt municipal
Securities available-for-sale:
Securities available-for-sale, at fair value	1,221	1,231
Fair Value, Recurring \| Taxable municipal
Securities available-for-sale:
Securities available-for-sale, at fair value	261	587
Fair Value, Recurring \| U.S. agency mortgage-backed
Securities available-for-sale:
Securities available-for-sale, at fair value	63,981	75,090
Fair Value, Recurring \| Fair Value, Inputs, Level 1
Securities available-for-sale:
Equity securities, at fair value	2,698	2,792
Total assets at fair value	2,698	2,792
Fair Value, Recurring \| Fair Value, Inputs, Level 2
Securities available-for-sale:
Total assets at fair value	145,270	170,839
Liabilities:
Total liabilities at fair value	621	846
Fair Value, Recurring \| Fair Value, Inputs, Level 2 \| Interest Rate Swap
Securities available-for-sale:
Interest rate swap agreements	621
Total assets at fair value		846
Liabilities:
Interest rate swap agreements	621	846
Fair Value, Recurring \| Fair Value, Inputs, Level 2 \| U.S. Treasuries
Securities available-for-sale:
Securities available-for-sale, at fair value	30,004	42,977
Fair Value, Recurring \| Fair Value, Inputs, Level 2 \| U.S. government and federal agencies
Securities available-for-sale:
Securities available-for-sale, at fair value	13,621	13,275
Fair Value, Recurring \| Fair Value, Inputs, Level 2 \| Corporate bonds
Securities available-for-sale:
Securities available-for-sale, at fair value	2,655	2,523
Fair Value, Recurring \| Fair Value, Inputs, Level 2 \| U.S. agency collateralized mortgage obligations
Securities available-for-sale:
Securities available-for-sale, at fair value	32,906	34,310
Fair Value, Recurring \| Fair Value, Inputs, Level 2 \| Tax-exempt municipal
Securities available-for-sale:
Securities available-for-sale, at fair value	1,221	1,231
Fair Value, Recurring \| Fair Value, Inputs, Level 2 \| Taxable municipal
Securities available-for-sale:
Securities available-for-sale, at fair value	261	587
Fair Value, Recurring \| Fair Value, Inputs, Level 2 \| U.S. agency mortgage-backed
Securities available-for-sale:
Securities available-for-sale, at fair value	$ 63,981	$ 75,090

Fair Value Measurements - Carry

Fair Value Measurements - Carrying value and estimated fair value of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Securities:
Total fair value, available for sale	$ 144,649	$ 169,993
Equity securities, at fair value	2,698	2,792
Restricted securities, at cost	7,630	5,012
Carrying Value
Assets:
Cash and cash equivalents	177,227	99,005
Securities:
Total fair value, available for sale	144,649	169,993
Held-to-maturity	92,863	95,505
Equity securities, at fair value	2,698	2,792
Restricted securities, at cost	7,630	5,012
Loans, net	1,824,117	1,840,424
Interest rate swap agreements	621	846
Loan servicing rights	104	22
Accrued interest receivable	5,657	6,110
Liabilities:
Deposits	1,936,150	1,906,600
Federal Reserve Bank borrowings		54,000
Federal funds purchased		10,000
Federal Home Loan Bank advances	56,000
Subordinated debt	24,770	24,708
Interest rate swap agreements	621	846
Accrued interest payable	2,304	4,559
Fair Value
Assets:
Cash and cash equivalents	177,227	99,005
Securities:
Total fair value, available for sale	144,649	169,993
Held-to-maturity	79,731	79,532
Equity securities, at fair value	2,698	2,792
Restricted securities, at cost	7,630	5,012
Loans, net	1,714,937	1,730,205
Interest rate swap agreements	621	846
Loan servicing rights	118	22
Accrued interest receivable	5,657	6,110
Liabilities:
Deposits	1,940,540	1,906,835
Federal Reserve Bank borrowings		54,000
Federal funds purchased		10,000
Federal Home Loan Bank advances	56,000
Subordinated debt	22,306	21,873
Interest rate swap agreements	621	846
Accrued interest payable	2,304	4,559
Fair Value, Inputs, Level 1 \| Fair Value
Assets:
Cash and cash equivalents	177,227	99,005
Securities:
Equity securities, at fair value	2,698	2,792
Fair Value, Inputs, Level 2 \| Fair Value
Securities:
Total fair value, available for sale	144,649	169,993
Held-to-maturity	79,731	79,532
Restricted securities, at cost	7,630	5,012
Interest rate swap agreements	621	846
Accrued interest receivable	5,657	6,110
Liabilities:
Deposits	1,940,540	1,906,835
Federal Reserve Bank borrowings		54,000
Federal funds purchased		10,000
Federal Home Loan Bank advances	56,000
Interest rate swap agreements	621	846
Accrued interest payable	2,304	4,559
Fair Value, Inputs, Level 3 \| Fair Value
Securities:
Loans, net	1,714,937	1,730,205
Loan servicing rights	118	22
Liabilities:
Subordinated debt	$ 22,306	$ 21,873

Fair Value Measurements - Addit

Fair Value Measurements - Additional information (Details)	9 Months Ended	12 Months Ended
Fair Value Measurements - Additional information (Details)	Sep. 30, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Fair Value Measurements
Number of collateral dependent loans \| loan	1	0
Collateral dependent loans	$ 10,000,000
Other real estate owned	$ 0	$ 0
Loan servicing rights
Fair Value Measurements
Loans receivable, marginal interest rate	1%
Maximum percentage of SBA guaranty	85%
Loan servicing portfolio	$ 7,000,000
Servicing Asset at Fair Value	$ 104,000
Weighted average discount rate	11%
Prepayment percent of loan servicing portfolio	13%
Servicing rights valuation allowance	$ 0
Loan servicing rights \| Minimum
Fair Value Measurements
Servicing asset offered	50,000
Loan servicing rights \| Maximum
Fair Value Measurements
Servicing asset offered	$ 2,000,000

Earnings per Common Share - Com

Earnings per Common Share - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income available to common shareholders (in thousands):
Net Income (Loss)	$ 4,235	$ (10,137)	$ 12,344	$ 656
Less: Income attributable to unvested restricted stock awards	(14)		(40)	(2)
Net income (loss) available to common shareholders	$ 4,221	$ (10,137)	$ 12,304	$ 654
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock	14,233,612	14,126,114	14,209,916	14,174,804
Less: Unvested restricted stock	(45,921)	(46,088)	(45,855)	(48,282)
Weighted-average common shares outstanding - basic	14,187,691	14,080,026	14,164,061	14,126,522
Earnings (loss) per common share - basic	$ 0.30	$ (0.72)	$ 0.87	$ 0.05
Income available to common shareholders (in thousands):
Net Income (Loss)	$ 4,235	$ (10,137)	$ 12,344	$ 656
Less: Income attributable to unvested restricted stock awards	(14)		(40)	(2)
Net income (loss) available to common shareholders	$ 4,221	$ (10,137)	$ 12,304	$ 654
Weighted average shares outstanding:
Common shares outstanding, including unvested restricted stock	14,233,612	14,126,114	14,209,916	14,174,804
Less: Unvested restricted stock	(45,922)	(46,088)	(45,855)	(48,282)
Plus: Effect of dilutive options	26,896		34,272	72,656
Weighted-average common shares outstanding - diluted	14,214,586	14,080,026	14,198,333	14,199,178
Earnings (loss) per common share - diluted	$ 0.30	$ (0.72)	$ 0.87	$ 0.05

Earnings per Common Share - Add

Earnings per Common Share - Additional information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Employee Stock Option
Antidilutive securities excluded from computation of earnings per share
Antidilutive securities excluded from computation of earnings per share, amount	0	0	0	0

Stock Based Compensation Plan_2

Stock Based Compensation Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Apr. 28, 2015
Employee Stock Option
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Intrinsic value of options exercised	$ 106	$ 0	$ 677	$ 370
Share-based compensation expense	0	0	0	$ 0
Unrecognized share-based compensation expense	0		$ 0
Restricted Stock Awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock grants			1,750	180
Weighted average grant date fair value, granted			$ 17.49
Share-based compensation expense	13	130	$ 397	$ 464
Fair value of vested shares	0	$ 8	56	$ 218
Unrecognized share-based compensation expense	$ 658		$ 658
Recognition period			1 year 8 months 12 days
Restricted Stock Awards \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting term			2 years
Restricted Stock Awards \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting term			5 years
2015 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares reserved for issuance					976,211
Number of shares available for grant	278,404		278,404
2015 Plan \| Employee Stock Option
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting term			5 years
Expiration term			10 years
2015 Plan \| Employee Stock Option \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Price of stock expressed in fair value percentage			100%
2015 Plan \| Employee Stock Option \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Term of award			10 years
2006 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized	1,490,700		1,490,700

Stock Based Compensation Plan -

Stock Based Compensation Plan - Summary of Stock Options Activity (Details) - Employee Stock Option - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options outstanding, beginning balance			162,147
Options granted	0	0	0	0
Options exercised			(92,038)
Options forfeited or expired			(7,574)
Options outstanding, ending balance	62,535		62,535
Options exercisable	62,535		62,535
Weighted average exercise price, beginning balance			$ 11.77
Weighted average exercise price, exercised			11.77
Weighted average exercise price, forfeited or expired			11.94
Weighted average exercise price, ending balance	$ 11.77		11.77
Weighted average exercise price, exercisable	$ 11.77		$ 11.77
Aggregate intrinsic value outstanding	$ 500,765		$ 500,765
Aggregate intrinsic value exercisable	$ 500,765		$ 500,765

Stock Based Compensation Plan_3

Stock Based Compensation Plan - Summary of Stock Options Outstanding and Exercisable (Details) - Employee Stock Option - $ / shares	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding	62,535	162,147
Options outstanding, weighted average remaining contractual life (in years)	6 months 21 days
Options exercisable	62,535
Options exercisable, weighted average remaining contractual life (in years)	6 months 21 days
$11.01 - $12.00
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range minimum rate	$ 11.01
Exercise price range maximum rate	$ 12
Options outstanding	62,223
Options outstanding, weighted average remaining contractual life (in years)	6 months 21 days
Options exercisable	62,223
Options exercisable, weighted average remaining contractual life (in years)	6 months 21 days
$12.01 - $13.00
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range minimum rate	$ 12.01
Exercise price range maximum rate	$ 13
Options outstanding	312
Options outstanding, weighted average remaining contractual life (in years)	10 months 17 days
Options exercisable	312
Options exercisable, weighted average remaining contractual life (in years)	10 months 17 days

Stock Based Compensation Plan_4

Stock Based Compensation Plan - Summary of Restricted Stock Awards (Details) - Restricted Stock Awards - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Nonvested shares outstanding, beginning balance	47,318
Nonvested shares, granted	1,750	180
Nonvested shares, vested	(2,815)
Nonvested shares, forfeited	(500)
Nonvested shares outstanding, ending balance	45,753
Weighted average grant date fair value outstanding, beginning balance	$ 23.12
Weighted average grant date fair value, granted	17.49
Weighted average grant date fair value, vested	16.20
Weighted average grant date fair value, forfeited	23.66
Weighted average grant date fair value, ending balance	$ 23.32

Regulatory Capital (Details)

Regulatory Capital (Details)	Sep. 30, 2024
Regulatory Capital
Capital conservation buffer ratio	0.025

Regulatory Capital - Schedule o

Regulatory Capital - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Total capital (to risk weighted assets)
Actual, Amount	$ 291,881	$ 282,082
Actual, Ratio	0.163	0.157
Minimum Capital Requirements, Amount	$ 187,705	$ 188,448
Minimum Capital Requirements, Ratio	0.105	0.105
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 178,766	$ 179,475
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.100	0.100
Tier 1 capital (to risk weighted assets)
Actual, Amount	$ 273,529	$ 263,637
Actual, Ratio	0.153	0.147
Minimum Capital Requirements, Amount	$ 151,951	$ 152,553
Minimum Capital Requirements, Ratio	0.085	0.085
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 143,013	$ 143,580
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.080	0.080
Common equity tier 1 capital (to risk weighted assets)
Actual, Amount	$ 273,529	$ 263,637
Actual, Ratio	0.153	0.147
Minimum Capital Requirements, Amount	$ 125,136	$ 125,632
Minimum Capital Requirements, Ratio	0.070	0.070
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 116,198	$ 116,658
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.065	0.065
Tier 1 capital (to average assets)
Actual, Amount	$ 273,529	$ 263,637
Actual, Ratio	0.119	0.116
Minimum Capital Requirements, Amount	$ 91,608	$ 91,163
Minimum Capital Requirements, Ratio	0.040	0.040
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 114,510	$ 113,954
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.050	0.050

Revenue - Components of Non-int

Revenue - Components of Non-interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Service charges on deposit accounts and Other service charges and fees
Bank owned life insurance		$ 23		$ 224
Losses on sale of available-for-sale securities	$ (17,100)	(17,114)		(17,316)
Net gains on premises and equipment	1		$ 1	16
Gain on sale of government guaranteed loans	160	27	509	50
Non-qualified deferred compensation plan asset gains (losses), net	139	(60)	298	112
Other operating income	9	10	91	124
Total non-interest income (loss)	617	(16,815)	1,990	(15,564)
Overdrawn account fees
Service charges on deposit accounts and Other service charges and fees
Service charges on deposit accounts and Other service charges and fees	18	20	61	55
Account service fees
Service charges on deposit accounts and Other service charges and fees
Service charges on deposit accounts and Other service charges and fees	66	65	199	184
Interchange income
Service charges on deposit accounts and Other service charges and fees
Service charges on deposit accounts and Other service charges and fees	91	101	271	304
Other charges and fees
Service charges on deposit accounts and Other service charges and fees
Service charges on deposit accounts and Other service charges and fees	69	59	203	373
Insurance Commissions
Service charges on deposit accounts and Other service charges and fees
Service charges on deposit accounts and Other service charges and fees	$ 64	$ 54	$ 357	$ 310

Revenue - Additional informatio

Revenue - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue
Other operating income (loss)	$ 9	$ 10	$ 27	$ 33
Gain (loss) on fair value of adjustment on equity securities	$ 0		$ 64	$ 91

Other Operating Expenses (Detai

Other Operating Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Other Operating Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other Operating Expenses
Advertising expense	$ 96	$ 87	$ 290	$ 239
Data processing	538	493	1,595	1,374
FDIC insurance	250	275	730	771
Professional fees	256	(141)	750	154
State franchise tax	574	604	1,718	1,785
Director costs	192	186	593	629
Other operating expenses	480	377	1,359	1,135
Total other operating expenses	$ 2,386	$ 1,881	$ 7,035	$ 6,087

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 235,346	$ 218,970	$ 229,914	$ 212,800
Net change during the period	3,340	11,605	3,036	11,727
Ending balance	243,118	220,567	243,118	220,567
Debt securities, available-for-sale, realized gain (loss)				17,300
Gain (loss) on available-for-sale securities, related tax				3,600
Accumulated Other Comprehensive (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(12,555)	(28,575)	(12,251)	(28,697)
Net change during the period	3,340	11,605	3,036	11,727
Ending balance	(9,215)	(16,970)	(9,215)	(16,970)
Unrealized Loss on Available-for-sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(12,400)	(28,942)
Net change during the period			3,097	11,800
Ending balance	(9,303)	(17,142)	(9,303)	(17,142)
Unrealized Gains on Securities Transferred from Available-for-sale to Held-to-maturity
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			149	245
Net change during the period			(61)	(73)
Ending balance	$ 88	$ 172	$ 88	$ 172