FinWise Bancorp (FINW) 10-Q 16 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 16, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-40721
Entity Registrant Name	FINWISE BANCORP
Entity Central Index Key	0001856365
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	83-0356689
Entity Address, Address Line One	756 East Winchester, Suite 100
Entity Address, City or Town	Murray
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84107
City Area Code	801
Local Phone Number	501-7200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	FINW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,788,810

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Cash and cash equivalents
Cash and due from banks	$ 414	$ 411
Interest-bearing deposits	116,232	85,343
Total cash and cash equivalents	116,646	85,754
Investment securities held-to-maturity, at cost	10,986	11,423
Investment in Federal Home Loan Bank (FHLB) stock, at cost	449	378
Strategic Program loans held-for-sale, at lower of cost or fair value	73,805	60,748
Loans receivable, net	189,549	198,102
Premises and equipment, net	4,531	3,285
Accrued interest receivable	1,347	1,548
Deferred taxes, net	1,788	1,823
SBA servicing asset, net	5,225	3,938
Investment in Business Funding Group (BFG), at fair value	5,400	5,900
Investment in FinWise Investments, LLC	80	80
Operating lease right-of-use ("ROU") assets	7,178	0
Other assets	7,500	7,235
Total assets	424,484	380,214
Deposits
Noninterest-bearing	127,330	110,548
Interest-bearing	150,130	141,344
Total deposits	277,460	251,892
Accrued interest payable	39	48
Income taxes payable, net	3,411	233
PPP Liquidity Facility	952	1,050
Operating lease liabilities	7,386	0
Other liabilities	10,281	11,549
Total liabilities	299,529	264,772
Commitments and contingencies (Note 8)
Shareholders' equity
Preferred stock, $0.001 par value, 4,000,000 authorized; no shares issued and outstanding as of March 31, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value, 40,000,000 shares authorized; 12,788,810 and 12,772,010 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	13	13
Additional paid-in-capital	54,915	54,836
Retained earnings	70,027	60,593
Total shareholders' equity	124,955	115,442
Total liabilities and shareholders' equity	$ 424,484	$ 380,214

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
LIABILITIES AND SHAREHOLDERS' EQUITY
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	12,788,810	12,772,010
Common stock, shares outstanding (in shares)	12,788,810	12,772,010

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest income
Interest and fees on loans	$ 13,156	$ 8,790
Interest on securities	39	6
Other interest income	28	10
Total interest income	13,223	8,806
Interest expense
Interest on deposits	261	297
Interest on PPP Liquidity Facility	1	75
Total interest expense	262	372
Net interest income	12,961	8,434
Provision for loan losses	2,947	633
Net interest income after provision for loan losses	10,014	7,801
Non-interest income
Strategic Program fees	6,623	2,953
Gain on sale of loans, net	5,052	2,603
SBA loan servicing fees	387	152
Change in fair value on investment in BFG	(398)	360
Other miscellaneous income	18	11
Total non-interest income	11,682	6,079
Non-interest expense
Salaries and employee benefits	7,092	4,895
Occupancy and equipment expenses	302	194
Recovery of SBA servicing asset	(59)	0
Other operating expenses	1,713	1,574
Total non-interest expense	9,048	6,663
Income before income tax expense	12,648	7,217
Provision for income taxes	3,214	1,926
Net income	$ 9,434	$ 5,291
Earnings per share, basic (in dollars per share)	$ 0.74	$ 0.61
Earnings per share, diluted (in dollars per share)	$ 0.70	$ 0.59
Weighted average shares outstanding, basic (in shares)	12,777,237	8,091,186
Weighted average shares outstanding, diluted (in shares)	13,567,311	8,335,772

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Dec. 31, 2020	$ 9	$ 16,853	$ 29,010	$ 45,872
Beginning balance (in shares) at Dec. 31, 2020	8,660,334
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	981	0	981
Stock options exercised	$ 0	166	0	166
Stock options exercised (in shares)	55,776
Net income	$ 0	0	5,291	5,291
Ending balance at Mar. 31, 2021	$ 9	18,000	34,301	52,310
Ending balance (in shares) at Mar. 31, 2021	8,716,110
Beginning balance at Dec. 31, 2021	$ 13	54,836	60,593	115,442
Beginning balance (in shares) at Dec. 31, 2021	12,772,010
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	39	0	39
Stock options exercised	$ 0	40	0	40
Stock options exercised (in shares)	16,800
Net income	$ 0	0	9,434	9,434
Ending balance at Mar. 31, 2022	$ 13	$ 54,915	$ 70,027	$ 124,955
Ending balance (in shares) at Mar. 31, 2022	12,788,810

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 9,434	$ 5,291
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization	272	268
Provision for loan losses	2,947	633
Amortization of operating lease ROU asset	202	0
Net amortization in securities discounts and premiums	9	7
Capitalized servicing assets	(1,408)	(856)
Gain on sale of SBA loans, net	(5,052)	(2,603)
Originations of Strategic Program loans held-for-sale	(2,423,186)	(955,539)
Proceeds on Strategic Program loans held-for-sale	2,410,129	938,640
Change in fair value of BFG	398	(360)
Recovery of SBA servicing asset	(59)	0
Stock-based compensation expense	39	981
Deferred income tax benefit (expense)	35	(218)
Net changes in:
Accrued interest receivable	201	234
Accrued interest payable	(9)	23
Other assets	(265)	1,266
Operating lease liabilities	6	0
Other liabilities	1,910	3,345
Net cash used in operating activities	(4,397)	(8,888)
Cash flows from investing activities:
Net increase in loans receivable	10,658	32,908
Distributions from BFG	102	257
Purchase of bank premises and equipment	(1,338)	(295)
Proceeds from maturities and paydowns of securities held-to-maturity	428	132
Purchase of FHLB stock	(71)	(173)
Net cash provided by investing activities	9,779	32,829
Cash flows from financing activities:
Net increase in deposits	25,568	24,035
Proceeds from exercise of stock options	40	166
Proceeds from PPP Liquidity Facility	0	5,558
Repayment of PPP Liquidity Facility	(98)	(26,861)
Net cash provided by financing activities	25,510	2,898
Net change in cash and cash equivalents	30,892	26,839
Cash and cash equivalents, beginning of the period	85,754	47,383
Cash and cash equivalents, end of the period	116,646	74,222
Cash paid during the period
Income taxes	0	1,926
Interest	1,274	349
Supplemental disclosures of noncash operating activities:
Right-of-use assets obtained in exchange for operating lease liabilities (ASC 842 adoption effective January 1, 2022)	$ 7,380	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies Nature of business and organization – On July 15, 2021, the Company publicly filed a Registration Statement on Form S-1 with the SEC in connection with its Initial Public Offering (“IPO”) (the “Registration Statement”), which was subsequently amended on July 30, 2021, August 4, 2021, November 1, 2021, and November 16, 2021. The Registration Statement was declared effective by the SEC on November 18, 2021. In connection with the IPO, the Company issued 4,025,000 shares of common stock, par value of $0.001, which included 525,000 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $10.50 per share and began trading on the Nasdaq Stock Market LLC on November 19, 2021. On November 23, 2021, the closing date of the IPO, the Company received total net proceeds of $39.3 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $35.6 million. The Bank is an independent bank that provides a full range of banking services to individual and corporate customers. The Bank’s primary source of revenue is from loans including Small Business Administration (SBA), commercial, commercial real estate, residential real estate, and consumer. The Bank also has established Strategic Programs with various third-party loan origination platforms that use technology to streamline the origination of unsecured consumer and secured or unsecured business loans to borrowers within certain approved credit profiles. The Bank earns monthly program fees based on the volume of loans originated in these Strategic Programs, as well as interest during the time the Bank holds the loans. The Company is subject to competition from other financial institutions and to the regulations of certain federal and state agencies and undergoes periodic examinations by those agencies. COVID-19 On March 11, 2020, the World Health Organization declared COVID-19 to be a global pandemic. Local and national governments and regulatory authorities have systematically implemented remedial measures to try to slow and curb the spread of COVID-19, including business closures and operating restrictions, travel bans, shelter in place, stay home, and similar directives and orders. In response to the COVID-19 pandemic and in adherence with state and local guidelines, the Company has implemented the business continuity plan and other measures and activities to protect the Company’s employees and, at the same time, to assist the Company’s clients and the communities of which the Company is a part, including remote working for the majority of the Company’s employees, increased mobile banking and electronic transaction options for clients, payment deferral assistance to commercial and consumer borrowers, and participation in the SBA’s Paycheck Protection Program (“PPP”) for loans to qualifying small businesses. On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that in consultation with the Financial Accounting Standards Board (“FASB”) staff that the federal banking agencies concluded that short-term modifications (e.g., six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not troubled debt restructurings (“TDRs”). The Coronavirus Aid, Relief and Economic Security (“CARES”) Act was passed by Congress on March 27, 2020. The CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. The Bank has applied this guidance related to payment deferrals and other COVID-19 related loan modifications. The CARES Act also included a total allocation of $659 billion for loans to be issued by financial institutions through the Small Business Administration (“SBA”). This program is known as the Paycheck Protection Program (“PPP”). PPP loans are forgivable, in whole or in part, if the proceeds are used for eligible payroll costs and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00%. PPP loans originated prior to June 5, 2020 have a term of two years, while PPP loans originated on or after June 5, 2020 have a term of five years. Payments are deferred for at least the first six months of the loan and the loans are 100% guaranteed by the SBA. The SBA pays the originating bank a processing fee ranging from 1% to 5%, based on the size of the loan. At March 31, 2022, net deferred loan fees related to PPP loans was a de minimis de minimis Basis of Presentation Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC for the presentation of the Form 10-Q. The unaudited consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s December 31, 2021 Annual Report on Form 10-K. Out-of-period adjustment Use of estimates Recently adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities Leases (Topic 842): Targeted Improvements Accounting pronouncements to be adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326)

Investments

Investments	3 Months Ended
	Mar. 31, 2022
Investments [Abstract]
Investments	Note 2 – Investments Investment securities held-to-maturity, at cost The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at March 31, 2022 and December 31, 2021, are summarized as follows: ​ March 31, 2022 ($ in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Mortgage-backed securities $ 10,986 $ 3 $ (726 ) $ 10,263 ​ December 31, 2021 ($ in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Mortgage-backed securities $ 11,423 $ 23 $ (114 ) $ 11,332 The Company had twelve securities in an unrealized loss position at March 31, 2022 and nine securities in an unrealized loss position at December 31, 2021, as summarized in the following tables: ​ March 31, 2022 Less than 12 months 12 Months or More Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 10,042 $ (726 ) $ — $ — $ 10,042 $ (726 ) ​ December 31, 2021 Less than 12 months 12 Months or More Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 8,961 $ (114 ) $ — $ — $ 8,961 $ (114 ) The amortized cost and estimated market value of debt securities at March 31, 2022, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. ($ in thousands) Amortized Cost Estimated Fair Value Securities held-to-maturity Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 1,462 1,402 Due after ten years 9,524 8,861 ​Total Securities held-to-maturity $ 10,986 $ 10,263 At March 31, 2022, all held-to-maturity securities were pledged as collateral for a credit line held by the Bank. There were no sales of investment securities during the three months ended March 31, 2022 or 2021. FHLB stock The Bank is a member of the FHLB system. Members are required to own FHLB stock of at least the greater of 1% of FHLB membership asset value or 2.7% of outstanding FHLB advances. At March 31, 2022 and December 31, 2021, the Bank owned $0.4 million, respectively, of FHLB stock, which is carried at cost. The Company evaluated the carrying value of its FHLB stock investment at March 31, 2022 and determined that it was not impaired. This evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB, repurchase activity of excess stock by the FHLB at its carrying value, the return on the investment from recurring and special dividends, and the Company’s intent and ability to hold this investment for a period of time sufficient to recover our recorded investment.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2022
Loans and Allowance for Loan Losses [Abstract]
Loans and Allowance for Loan Losses	Note 3 – Loans and Allowance for Loan Losses Loans are summarized as follows according to major risk category as of March 31, 2022 and December 31, 2021: ​ March 31, December 31, ​ 2022 2021 ($ in thousands) SBA $ 127,778 $ 142,392 Commercial, non-real estate 3,285 3,428 Residential real estate 30,772 27,108 Strategic Program loans 101,819 85,850 Commercial real estate 4,187 2,436 Consumer 4,711 4,574 Total loans $ 272,552 $ 265,788 Loans held-for-sale (73,805 ) (60,748 ) Total loans held for investment $ 198,747 $ 205,040 Deferred loan costs (fees), net 789 2,917 Allowance for loan losses (9,987 ) (9,855 ) Net loans $ 189,549 $ 198,102 Strategic Program Loans The Company generally retains the loans and/or receivables for a number of business days after origination before selling the loans and/or receivables to the Strategic Program platform or another investor. Interest income is recognized by the Company while holding the loans. These loans are classified as held-for-sale on the balance sheet. The Company may also hold a portion of the loans or receivable and sell the remainder directly to the Strategic Programs or other investors. The Company generally services the loans originated through the Strategic Programs in consideration of servicing fees equal to a percentage of the loans generated under the Strategic Programs. In turn, the Strategic Program service providers, subject to the Company’s approval and oversight, serve as sub-servicer and perform typical primary servicing duties including loan collections, modifications, charging-off, reporting and monitoring. Each Strategic Program establishes a “reserve” deposit account with the Company. The agreements generally require that the deposit reserve account balance does not fall below the dollar amount of the total loans outstanding currently held by the Company for the specific Strategic Program. If necessary, the Company has the right to withdraw amounts from the reserve account to fulfill loan purchaser obligations created under the program agreements. Total cash held in reserve by Strategic Programs at the Company at March 31, 2022 and December 31, 2021, was $50.8 million and $39.6 million, respectively. Strategic Program loans retained and held-for-sale as of March 31, 2022 and December 31, 2021, are summarized as follows: ​ March 31, December 31, ​ 2022 2021 ($ in thousands) Retained Strategic Program loans $ 28,014 $ 25,102 Strategic Program loans held-for-sale 73,805 60,748 Total Strategic Program loans $ 101,819 $ 85,850 Changes in the ALL are summarized as follows: Three Months Ended March 31, 2022 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 2,739 $ 132 $ 352 $ 6,549 $ 21 $ 62 $ 9,855 Charge-offs (31 ) — — (2,878 ) — — (2,909 ) Recoveries — 1 — 93 — — 94 Provision (recapture) 356 (26 ) 59 2,558 — — 2,947 Balance at end of period $ 3,064 $ 107 $ 411 $ 6,322 $ 21 $ 62 $ 9,987 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 3,064 $ 107 $ 411 $ 6,322 $ 21 $ 62 $ 9,987 Loans receivable $ 127,778 $ 3,285 $ 30,772 $ 28,014 $ 4,187 $ 4,711 $ 198,747 Ending balance individually evaluated for impairment 951 — 200 — — — 1,151 Ending balance collectively evaluated for impairment $ 126,827 $ 3,285 $ 30,572 $ 28,014 $ 4,187 $ 4,711 $ 197,596 Three Months Ended March 31, 2021 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 920 $ 232 $ 855 $ 4,111 $ 19 $ 62 $ 6,199 Charge-offs (7 ) (41 ) — (741 ) — (2 ) (791 ) Recoveries 11 — — 132 — — 143 Provision — — — 633 — — 633 Balance at end of period $ 924 $ 191 $ 855 $ 4,135 $ 19 $ 60 $ 6,184 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 924 $ 191 $ 855 $ 4,135 $ 19 $ 60 $ 6,184 Loans receivable $ 167,824 $ 3,867 $ 21,712 $ 6,580 $ 2,589 $ 4,807 $ 207,379 Ending balance individually evaluated for impairment 890 — 756 — — — 1,646 Ending balance collectively evaluated for impairment $ 166,934 $ 3,867 $ 20,956 $ 6,580 $ 2,589 $ 4,807 $ 205,733 The following tables summarize impaired loans as of March 31, 2022 and December 31, 2021: March 31, 2022 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 951 $ 951 $ — $ 962 $ 48 Commercial, non-real estate — — — — — Residential real estate 200 200 — 100 — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 1,151 $ 1,151 $ — $ 1,062 $ 48 December 31, 2021 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 972 $ 972 $ — $ 945 $ 47 Commercial, non-real estate — — — — — Residential real estate — — — 189 — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 972 $ 972 $ — $ 1,134 $ 47 For the three months ending March 31, 2022 and December 31, 2021, there were no impaired loans with an allowance recorded. Nonaccrual and past due loans are summarized below as of March 31, 2022 and December 31, 2021: March 31, 2022 ($ in thousands) Current 30-59 Days Past 60-89 Days Past Due 90+ Days Past Due & Still Accruing Total Past Due Non- Total ​ SBA $ 126,894 $ 227 $ — $ — $ 227 $ 657 $ 127,778 Commercial, non-real estate 3,285 — — — — — 3,285 Residential real estate 30,572 — — 200 200 — 30,772 Strategic Program loans 100,105 981 573 159 1,713 1 101,819 Commercial real estate 4,187 — — — — — 4,187 Consumer 4,707 4 — — 4 — 4,711 Total $ 269,750 $ 1,212 $ 573 $ 359 $ 2,144 $ 658 $ 272,552 December 31, 2021 ($ in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due & Still Accruing Total Past Due Non- Accrual Total SBA $ 141,488 $ 247 $ — $ — $ 247 $ 657 $ 142,392 Commercial, non-real estate 3,428 — — — — — 3,428 Residential real estate 27,108 — — — — — 27,108 Strategic Program loans 84,065 1,041 690 54 1,785 — 85,850 Commercial real estate 2,436 — — — — — 2,436 Consumer 4,554 20 — — 20 — 4,574 Total $ 263,079 $ 1,308 $ 690 $ 54 $ 2,052 $ 657 $ 265,788 The amount of interest income for the three months ended March 31, 2022 and 2021, that was not recorded on nonaccrual loans was de minimis In addition to past due and nonaccrual status criteria, the Company also evaluates loans using a loan grading system. Internal loan grades are based on current financial information, historical payment experience, and credit documentation, among other factors. Performance-based grades are summarized below: Pass (Loan Grades 1-4) Special Mention Classified Substandard Classified Doubtful Classified Loss (Loan Grade 8) – The Company does not currently grade retained Strategic Program loans Outstanding loan balances categorized by these credit quality indicators are summarized as follows at March 31, 2022 and December 31, 2021: March 31, 2022 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 125,366 $ 1,461 $ 951 $ 127,778 Commercial, non-real estate 3,285 — — 3,285 Residential real estate 30,572 — 200 30,772 Commercial real estate 4,187 — — 4,187 Consumer 4,711 — — 4,711 Not Risk Graded Strategic Program loans 101,819 Total at March 31, 2022 $ 168,121 $ 1,461 $ 1,151 $ 272,552 December 31, 2021 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 139,985 $ 1,435 $ 972 $ 142,392 Commercial, non-real estate 3,382 46 — 3,428 Residential real estate 27,108 — — 27,108 Commercial real estate 2,436 — — 2,436 Consumer 4,574 — — 4,574 Not Risk Graded Strategic Program loans 85,850 Total at December 31, 2021 $ 177,485 $ 1,481 $ 972 $ 265,788 Loans modified and recorded as TDR’s during the three months ended March 31, 2022 and March 31, 2021, consist of the following: ($ in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment March 31, 2022 SBA 1 $ 96 $ 96 Total at March 31, 2022 1 $ 96 $ 96 Non-Accrual SBA 1 $ 25 $ 25 March 31, 2021 SBA 3 $ 114 $ 114 Residential real estate 1 756 756 Total at March 31, 2021 4 $ 870 $ 870 Non-Accrual SBA 1 $ 53 $ 53 At March 31, 2022 and 2021, there were no commitments to lend additional funds to debtors whose loan terms have been modified in a TDR. Loans modified and recorded as TDR’s during the three months ended March 31, 2022 and 2021 included modifications to rate and term. There was one principal charge-off recorded related to TDRs during the three months ended March 31, 2022 for $0.01 million. There were no principal charge-offs recorded related to TDRs during the three months ended March 31, 2021. During the three months ended March 31, 2022 and 2021, there were no loan modifications to TDRs. Separately, one restructured loan incurred a default within 12 months of the restructure date and continues to be in default during the three months ended March 31, 2022. One restructured loan incurred a default within 12 months of the restructure date during the three months ended March 31, 2021. This same loan was paid in full with interest on May 28, 2021.

Premises and Equipment

Premises and Equipment	3 Months Ended
	Mar. 31, 2022
Premises and Equipment [Abstract]
Premises and Equipment	Note 4 – Premises and Equipment Premises and equipment at March 31, 2022 and December 31, 2021, consist of the following: March 31, December 31, ​ 2022 2021 ($ in thousands) Leasehold improvements $ 80 $ 80 Furniture, fixtures, and equipment 2,437 2,219 Construction in progress 3,453 2,333 Total premises and equipment $ 5,970 $ 4,632 Less accumulated depreciation (1,439 ) (1,347 ) Premises and equipment, net $ 4,531 $ 3,285 Depreciation expense was approximately $0.1 million and $0.1 million for the three months ended March 31, 2022 and 2021, respectively. Lease Liabilities The Company leases its facilities under noncancelable operating leases. Rent expense for three months ended March 31, 2022 and 2021 was $0.2 million and $0.1 million, respectively. Future minimum annual rental payments for these operating leases are as follows ($ in thousands): Nine Months Ended December 31, 2022 $ 469 Year Ended December 31, 2023 850 Year Ended December 31, 2024 1,104 Year Ended December 31, 2025 1,086 Year Ended December 31, 2026 1,118 Year Ended December 31, 2027 1,152 Thereafter 2,203 Total 7,982 Less present value discount (596 ) Operating lease liabilities $ 7,386 The Company entered into one lease during the three months ended March 31, 2022 to provide additional space while the Murray office construction is completed. ASC 842 does not apply due to the short-term period of this lease and immateriality. The tables below present information regarding the Company’s lease assets and liabilities. Comparative periods and disclosures are not presented here due to adoption of ASC 842 on January 1, 2022. ​ Three Months Ended March 31, ​ 2022 Operating cash flows from operating leases (in thousands) $ 28 Weighted-average remaining lease term – operating leases (in years) 7.4 Weighted-average discount rate – operating leases 1.9 % The components of lease expense were as follows (in thousands): ​ Three Months Ended March 31, 2022 (in thousands) Operating leases Operating lease cost $ 236 Variable lease cost 4 Operating lease expense 240 Short-term lease rent expense — Net rent expense $ 240

Deposits

Deposits	3 Months Ended
	Mar. 31, 2022
Deposits [Abstract]
Deposits	Note 5 – Deposits Major classes of deposits at March 31, 2022 and December 31, 2021, are as follows: ​ March 31, December 31, ​ 2022 2021 ($ in thousands) Demand $ 135,249 $ 115,947 Savings 7,089 6,685 Money markets 53,434 31,076 Time certificates of deposit 81,688 98,184 Total deposits $ 277,460 $ 251,892 At March 31, 2022, the scheduled maturities of time deposits are as follows ($ in thousands): Year Ended December 31, 2022 $ 24,444 Year Ended December 31, 2023 21,461 Year Ended December 31, 2024 16,156 Year Ended December 31, 2025 10,073 Year Ended December 31, 2026 8,676 Thereafter 878 Total 81,688 Time deposits with balances equal or greater than $250,000 totaled $3.5 million and $3.7 million at March 31, 2022 and December 31, 2021, respectively.

SBA Servicing Asset

SBA Servicing Asset	3 Months Ended
	Mar. 31, 2022
SBA Servicing Asset [Abstract]
SBA Servicing Asset	Note 6 – SBA Servicing Asset The Company periodically sells portions of SBA loans and retains rights to service the loans. Loans serviced for others are not included in the accompanying balance sheet. The unpaid principal balances of SBA loans serviced for others was $256.3 million and $210.2 million at March 31, 2022 and December 31, 2021, respectively. The following table summarizes SBA servicing asset activity for the periods indicated: ​ For the Three Months Ended March 31, ($ in thousands) 2022 2021 Beginning balance $ 3,938 $ 2,415 Additions to servicing asset 1,408 856 Recovery on SBA servicing asset 59 — Amortization of servicing asset (180 ) (197 ) Ending balance $ 5,225 $ 3,074 The fair market value of the SBA servicing asset as of March 31, 2022 and December 31, 2021, was $5.23 million and $3.94 million, respectively. Fair value adjustments to servicing rights are mainly due to market-based assumptions associated with discounted cash flows, loan prepayment speeds, and changes in interest rates. A significant change in prepayments of the loans in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of servicing rights. The Company assumed a weighted average prepayment rate of 14.25%, weighted average term of 4.26 years, and a weighted average discount rate of 9.70% at March 31, 2022. The Company assumed a weighted average prepayment rate of 14.37%, weighted average term of 4.02 years, and a weighted average discount rate of 11.38% at December 31, 2021.

Capital Requirements

Capital Requirements	3 Months Ended
	Mar. 31, 2022
Capital Requirements [Abstract]
Capital Requirements	Note 7 – Capital Requirements The Bank is subject to various regulatory capital requirements administered by federal and State of Utah banking agencies (the regulators). Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off -balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk -weighting, and other factors. Prompt corrective action provisions are not applicable to the bank holding company. Beginning January 1, 2020, the bank qualified and elected to use the community bank leverage ratio (CBLR) framework for quantitative measures which requires the Bank to maintain minimum amounts and ratios of Tier 1 capital to average total consolidated assets. Management believes, as of December 31, 2021 and March 31, 2022, that the Bank meets all capital adequacy requirements to which it is subject. As of March 31, 2022 and December 31, 2021, the most recent notification from the FDIC categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action (there are no conditions or events since that notification that management believes have changed the Bank’s category). The following table sets forth the actual capital amounts and ratios for the Bank and the minimum ratio and amount of capital required to be categorized as well-capitalized and adequately capitalized as of the dates indicated. The Bank’s actual capital amounts and ratios are presented in the following table: ​ Actual Well-Capitalized Requirement ($ in thousands) Amount Ratio Amount Ratio March 31, 2022 Leverage ratio (CBLR election) $ 74,437 19.1 % $ 35,057 * 9.0 % December 31, 2021 Leverage ratio (CBLR election) $ 65,503 17.7 % $ 31,442 * 8.5 % * On March 27, 2020 the CARES Act became law. Section 4012 of the CARES Act directs the agencies to issue an interim final rule reducing the CBLR ratio requirement from 9% to 8% for the last two quarters of the year 2020, 8.5% for the calendar year 2021, and 9% thereafter. Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits. The Bank had reserve requirements of $0.0 million as of March 31, 2022 and December 31, 2021, respectively. The Federal Reserve’s policy statement and supervisory guidance on the payment of cash dividends by a Bank Holding Company (“BHC”), such as FinWise Bancorp, expresses the view that a BHC should generally pay cash dividends on common stock only to the extent that (1) the BHC’s net income available over the past year is sufficient to cover the cash dividend, (2) the rate of earnings retention is consistent with the organization’s expected future needs and financial condition, and (3) the minimum regulatory capital adequacy ratios are met. Should an insured depository institution controlled by a bank holding company be “significantly undercapitalized” under the applicable federal bank capital ratios, or if the bank subsidiary is “undercapitalized” and has failed to submit an acceptable capital restoration plan or has materially failed to implement such a plan, federal banking regulators (in the case of the Bank, the FDIC) may choose to require prior Federal Reserve approval for any capital distribution by the BHC. In addition, since FinWise Bancorp is a legal entity separate and distinct from the Bank and does not conduct stand-alone operations, an ability to pay dividends depends on the ability of the Bank to pay dividends to FinWise Bancorp and the FDIC and the Utah Department of Financial Institutions (“UDFI”) may, under certain circumstances, prohibit the payment of dividends to FinWise Bancorp from the Bank. Utah corporate law also requires that dividends can only be paid out of funds legally available. The Company has not paid any cash dividends on its common stock since inception and it currently has no plans to pay cash dividends in the foreseeable future. However, the Company’s Board of Directors may declare a cash or stock dividend out of retained earnings provided the regulatory minimum capital ratios are met. The Company plans to maintain capital ratios that meet the well-capitalized standards per the regulations and, therefore, would limit dividends to amounts that are appropriate to maintain those well-capitalized regulatory capital ratios.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	3 Months Ended
	Mar. 31, 2022
Commitments and Contingent Liabilities [Abstract]
Commitments and Contingent Liabilities	Note 8 – Commitments and Contingent Liabilities Federal Home Loan Bank Secured Line of Credit As of March 31, 2022 and December 31, 2021, the Bank’s available line of credit with the FHLB to borrow in overnight funds was $3.9 million and $4.1 million, respectively. All borrowings are short-term and the interest rate is equal to the correspondent bank’s daily federal funds purchase rate. As of March 31, 2022 and December 31, 2021, no amounts were outstanding under the line of credit. Loans totaling $5.2 million and $5.4 million were pledged to secure the FHLB line of credit as of March 31, 2022 and December 31, 2021, respectively. Line of Credit At March 31, 2022 and December 31, 2021, we had the ability to access $9.6 million and $10.9 million from the Federal Reserve Bank’s Discount Window on a collateralized basis. Through Zions Bank, the Bank had an available unsecured line available of $1.0 million at March 31, 2022 and December 31, 2021. The Bank had an available line of credit with Bankers’ Bank of the West to borrow up to $1.05 million in overnight funds at March 31, 2022 and December 31, 2021. We had no outstanding balances on such unsecured or secured lines of credit as of March 31, 2022 and December 31, 2021. Paycheck Protection Program Liquidity Facility On April 20, 2020, the Bank was approved by the Federal Reserve to access its SBA Paycheck Protection Program Liquidity Facility (“PPPLF”) through the discount window. The PPPLF enables the Company to fund PPP loans without taking on additional liquidity or funding risks because the Company is able to pledge PPP loans as collateral to secure extensions of credit under the PPPLF on a non-recourse basis. Borrowings under the PPPLF have a fixed-rate of 0.35%, with a term that matches the underlying loans. The Bank pledged $1.0 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at December 31, 2021. The Bank pledged $1.0 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at March 31, 2022. The average outstanding borrowings were $87.3 million during the three months ended March 31, 2021 and $1.0 million during the three months ended March 31, 2022. Commitments to Extend Credit In the ordinary course of business, the Bank has entered into commitments to extend credit to customers which have not yet been exercised. These financial instruments include commitments to extend credit in the form of loans. Those instruments involve to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. At March 31, 2022 and December 31, 2021, financial instruments with off-balance-sheet risk were as follows: ​ March 31, December 31, ($ in thousands) 2022 2021 Revolving, open-end lines of credit $ 1,224 $ 1,259 Commercial real estate 22,167 15,402 Other unused commitments 255 377 ​ $ 23,646 $ 17,038

Investment in Business Funding

Investment in Business Funding Group, LLC	3 Months Ended
	Mar. 31, 2022
Investment in Business Funding Group, LLC [Abstract]
Investment in Business Funding Group, LLC	Note 9 – Investment in Business Funding Group, LLC On December 31, 2019, the Company purchased from certain members of BFG a 10% membership interest in exchange for an aggregate of 950,784 shares of par value $0.001 Common Stock of the Company. The exchange was accounted for at fair value based on the fair value of the Company’s shares of approximately $3.5 million. The Company’s 10% membership interests of BFG are comprised of Class A Voting Units representing 4.96% of the aggregate membership interests of BFG and Class B Non-Voting Units representing 5.04% of the aggregate membership interests of BFG. The other existing members of BFG jointly own the remaining 90% of the outstanding membership interests, on a fully-diluted basis – all of which membership interests are Class A Voting Units. Based on the Company’s accounting policy with respect to investments in limited liability companies, the Company concluded that its level of ownership was indicative of significant influence and, as a result, the investment would be accounted for using the equity method. However, the Company elected the fair value option for its investment due to cost-benefit considerations. The Company received distributions from BFG in the amounts of $0.1 million and $0.3 million for the three months ended March 31, 2022 and 2021, respectively. These distributions were recorded in the Consolidated Balance Sheets as decreases in the investment in BFG. On March 31, 2020, the Company entered into an agreement with BFG whereby the Company has the right of first refusal to purchase additional interests in BFG from any selling members. Additionally, the Company was granted an option to purchase all, but not less than all, of the interests in BFG from the remaining members for an earnings multiple between 10 times and 15 times net profit based on the fiscal year ended immediately prior to the exercise of the option. The option period begins on January 1, 2021 and expires on January 1, 2028. In consideration of granting the first right of refusal and the option, BFG members received 270,000 warrants in the aggregate. The warrants have an exercise price of $6.67 per share and the warrants expire on March 31, 2028. The warrants are free-standing equity instruments and, as a result, are classified within equity at the fair value on the issuance date. The fair value of the warrants was determined by our board of directors with input from management, relying in part upon valuation reports prepared by a third-party valuation firm using a Black-Scholes option pricing model adjusted for a lack of marketability since the Company’s stock is not publicly traded. The resulting fair value of the warrants was $0.19 per share. For further discussion on the Company’s investment in BFG, see Note 13 Related Parties.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2022
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 10 – Stock-Based Compensation Stock option plans The Company utilizes stock-based compensation plans, as well as discretionary grants, for employees, directors and consultants to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentives and to promote the success of the Company’s business. The 2019 Stock Option Plan (“2019 Plan”) was adopted on June 20, 2019 following approval by the Company’s Board of Directors and shareholders. The 2019 Plan provides for the issuance of non-statutory stock options and restricted stock to employees, directors and consultants. The 2019 Plan also provides for the issuance of incentive stock options only to employees. The 2019 Plan authorizes the issuance of 780,000 common shares. The 2019 Plan will terminate as to future awards 10 years from the later of the effective date or the earlier of the most recent Board or stockholder approval of an increase in the number of shares reserved for issuance under the 2019 Plan. At March 31, 2022, 297,786 shares are available for future issuance. The 2016 Stock Option Plan (“2016 Plan”) was adopted on April 20, 2017 following approval by the Company’s Board of Directors and shareholders. The 2016 Plan provides for the issuance of non-statutory stock options and restricted stock to employees, directors and consultants. The 2016 Plan also provides for the issuance of incentive stock options only to employees. The 2016 Plan authorizes the issuance of 299,628 common shares. The 2016 Plan will terminate as to future awards 10 years from the later of the effective date or the earlier of the most recent Board or stockholder approval of an increase in the number of shares reserved for issuance under the 2016 Plan. At March 31, 2022, 29,712 shares under 2016 Plan are available for future issuance. The stock-based incentive awards for both the 2019 Plan and the 2016 Plan (collectively, the “Plans”) are granted at an exercise price not less than the fair market value of the shares on the date of grant, which is based on a Black-Scholes valuation model, in the case of options, or based on the fair value of the stock at the grant date, in the case of restricted stock. Vesting of the options vary by employee or director and can have a term no more than 10 years, with the options generally having vesting periods ranging from 1 to 5 years. No shares had been granted under the 2016 Plan prior to 2018. Under both Plans, if an award expires or becomes un-exercisable without having been exercised in full, or is surrendered pursuant to an exchange program, the unpurchased shares that were subject thereto shall become available for future grant or sale under the Plans. However, shares that have actually been issued under the Plans, upon exercise of an award, shall not be returned to the Plans and shall not become available for future distribution under the Plans, except that if unvested shares of restricted stock are repurchased by the Company at their original purchase price, such shares shall become available for future grant under the Plans. Other stock-based compensation On December 24, 2019, the Board approved a restricted stock discretionary grant of 1,072,746 shares to certain employees. Pursuant to the awards agreement, 351,852 shares vested on the grant date and were repurchased by the Company on December 31, 2019 to pay for employee withholding taxes. Pursuant to the awards agreement, 73,770 shares subsequently vested and were repurchased by the Company on April 6, 2020 to pay for employee income taxes. Granted shares vest based on the accelerated attribution method on a schedule where all shares would be fully vested on December 1, 2023. On November 18, 2021, pursuant to the awards agreement, the 424,458 remaining unvested shares became vested because the Company’s registration statement was declared effective. Stock options The grant date fair value is determined using the Black-Scholes option valuation model. No option grants took place in the three months ended March 31, 2022. The following summarizes stock option activity for the three months ended March 31, 2022: ​ Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2021 862,488 $ 4.41 8.2 $ 8,088,660 Options exercised (16,800 ) 2.37 248,312 Options forfeited (6,660 ) 3.28 92,357 Outstanding at March 31, 2022 839,028 $ 4.46 8.0 $ 10,645,951 Options vested and exercisable at March 31, 2022 592,632 $ 4.58 8.0 $ 7,447,226 The weighted average grant-date fair value of options per share granted was $1.55 during the three months ended March 31, 2022. The aggregate intrinsic value of options exercised during the three months ended March 31, 2022 was $0.25 million. During the three months ended March 31, 2022, the Company received de minimis de minimis Stock-based compensation expense The following tables present pre-tax and after-tax stock-based compensation expense recognized: ​ For the Three Months Ended March 31, ($ in thousands) 2022 2021 Pre-tax Stock options $ 39 $ 747 Restricted shares — 234 Total $ 39 $ 981 After-tax Stock options $ 38 $ 681 Restricted shares — 478 Total $ 38 $ 1,159 As of March 31, 2022, the Company had unrecognized stock-based compensation expense related to stock options of approximately $0.2 million, respectively, which is expected to be recognized over the remaining weighted average recognition period of 2.2 years.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2022
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 11 – Fair Value of Financial Instruments The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy. Level 1 Level 2 Level 3 The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. The following methods were used to estimate the fair value of each class of financial instruments: Cash and cash equivalents Investment securities held-to-maturity Investment in Federal Home Loan Bank stock Strategic Program loans held-for-sale Loans held for investment SBA servicing asset Investment in BFG Deposits Accrued interest receivable and payable PPP Liquidity Facility The fair value of PPPLF is estimated using a discounted cash flow based on the remaining contractual term and current borrowing rates for similar terms. ​ March 31, 2022 December 31, 2021 ($ in thousands) Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents 1 $ 116,646 $ 116,646 $ 85,754 $ 85,754 Investment securities held-to-maturity 2 10,986 10,263 11,423 11,332 Investment in FHLB stock 2 449 449 378 378 Loans held for investment 3 189,549 192,172 198,102 197,412 Loans held-for-sale 2 73,805 73,800 60,748 60,743 Accrued interest receivable 2 1,347 1,347 1,548 1,548 SBA servicing asset 2 5,225 5,225 3,938 3,938 Investment in BFG 3 5,400 5,400 5,900 5,900 Financial liabilities: Total deposits 2 277,460 265,883 251,892 249,488 Accrued interest payable 2 39 39 48 48 PPP Liquidity Facility 2 952 952 1,050 1,050 Assets measured at fair value on a nonrecurring basis are summarized as follows: ($ in thousands) Fair Value Measurements Using Description of Financial Instrument Fair Value Level 1 Level 2 Level 3 March 31, 2022 Nonrecurring assets Impaired loans $ 1,151 $ — $ — $ 1,151 December 31, 2021 Nonrecurring assets Impaired loans $ 972 $ — $ — $ 972 Impaired loans Quantitative information for Level 3 fair value measurements The range and weighted average of the significant unobservable inputs used to fair value Level 3 nonrecurring assets as of March 31, 2022 and as of December 31, 2021, along with the valuation techniques used, are shown in the following table: ($ in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) March 31, 2022 Impaired loans $ 1,151 Market comparable Adjustment to appraisal value 0.61 % ​ December 31, 2021 Impaired loans $ 972 Market comparable Adjustment to appraisal value 0.50 %

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Taxes [Abstract]
Income Taxes	Note 12 – Income Taxes The Company accounts for income taxes by recognizing deferred tax assets and liabilities based upon temporary differences between the amounts for financial reporting purposes and tax basis of its assets and liabilities. Deferred tax assets changed a de minimis For the three months ended March 31, 2022 and 2021, income tax expense was $3.2 million and $1.9 million, respectively, resulting in an effective income tax rate of 25.4% and 26.7%, respectively. The effective tax rate differs from the statutory rate of 26.0% during the three months ended March 31, 2022 and 2021, respectively, due primarily to the tax effect of stock-based compensation. The Company had no unrecognized tax benefits at March 31, 2022. On March 27, 2020, the U.S. government enacted the CARES Act. Among other provisions, the CARES Act makes several modifications to federal net operating losses, including requiring a taxpayer with a net operating loss (“NOL”) arising in a taxable year beginning in 2018, 2019, or 2020 to carry that loss back to each of the five preceding years unless the taxpayer elects to waive or reduce the carryback. The Company did not generate NOLs in 2018, 2019 and 2020.

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2022
Related Parties [Abstract]
Related Parties	Note 13 – Related Parties In the ordinary course of business, the Company may grant loans to certain executive officers and directors and the companies with which they are associated. The Company had loans outstanding to related parties of $0.0 million as of March 31, 2022 and December 31, 2021. Total deposits from certain executive officers and directors and the companies with which they are associated were $0.9 million and $0.5 million as of March 31, 2022 and December 31, 2021, respectively. BFG is a small business loan broker, primarily under the SBA’s 7(a) loan program. As noted in Note 9 Investments above, the Company has a 10% ownership in the outstanding membership units of BFG. The Company underwrites loans sourced by BFG in its normal course of business. If approved and funded, the Company pays BFG a commission fee based on the amount funded. There is no guarantee or commitment made by the Company to BFG to approve or fund loans referred by BFG. The Company is able to use its sole discretion in deciding to approve and fund loans referred by BFG.

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2022
Earnings per Share [Abstract]
Earnings per Share	Note 14 – Earnings per Share The following table is a reconciliation of the components used to derive basic and diluted EPS for the three months ended March 31, 2022 and 2021 ($ in thousands, except share and per share amounts): ​ For the Three Months Ended March 31, ​ 2022 2021 Numerator: Net income $ 9,434 $ 5,291 Amount allocated to participating common shareholders (1) — (357 ) Net income allocate to common shareholders $ 9,434 $ 4,934 Denominator: Weighted average shares outstanding, basic 12,777,237 8,091,186 Weighted average effect of dilutive securities: Stock options 619,516 244,586 Warrants 170,558 — Weighted average shares outstanding, diluted 13,567,311 8,335,772 Earnings per share, basic $ 0.74 $ 0.61 Earnings per share, diluted $ 0.70 $ 0.59 (1) Represents earnings attributable to holders of unvested restricted stock issued outside of the Plan to the Company’s employees. There were 219,512 and 698,302 anti-dilutive options for March 31, 2022 and 2021 reported in the table above. There were 99,442 shares and 270,000 anti-dilutive warrants for March 31, 2022 and 2021 reported in the table above.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2022
Revenue Recognition [Abstract]
Revenue Recognition	Note 15 – Revenue Recognition The following is a summary of the Company’s revenue disaggregated by contracts with customers and revenue outside the scope of ASC 606: ​ For the Three Months Ended March 31, ($ in thousands) 2022 2021 Interest income Interest income, not-in-scope Interest and fees on loans $ 13,156 $ 8,790 Interest on securities 39 6 Other interest income 28 10 Total interest income $ 13,223 $ 8,806 Non-interest income Non-interest income, in-scope Service charges on deposit accounts $ 8 $ 6 Strategic Program set up fees 49 — Non-interest income, not in-scope Strategic Program fees 6,166 2,873 Gain on sale of loans 5,052 2,603 SBA loan servicing fees 387 152 Change in fair value on investment in BFG (398 ) 360 Other miscellaneous income 10 5 Strategic Program service charges 408 80 Total non-interest income $ 11,682 $ 6,079

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 16 – Subsequent Events Subsequent events are events or transactions that occur after the date of the most recent balance sheet but before the financial statements are available to be issued. The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing of the financial statements. The Company’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the date of the balance sheet and before the financial statements are available to be issued. The Company has evaluated subsequent events through May 16, 2022, which is the date the unaudited consolidated financial statements are available to be issued.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies [Abstract]
Nature of business and organization	Nature of business and organization – On July 15, 2021, the Company publicly filed a Registration Statement on Form S-1 with the SEC in connection with its Initial Public Offering (“IPO”) (the “Registration Statement”), which was subsequently amended on July 30, 2021, August 4, 2021, November 1, 2021, and November 16, 2021. The Registration Statement was declared effective by the SEC on November 18, 2021. In connection with the IPO, the Company issued 4,025,000 shares of common stock, par value of $0.001, which included 525,000 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $10.50 per share and began trading on the Nasdaq Stock Market LLC on November 19, 2021. On November 23, 2021, the closing date of the IPO, the Company received total net proceeds of $39.3 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $35.6 million. The Bank is an independent bank that provides a full range of banking services to individual and corporate customers. The Bank’s primary source of revenue is from loans including Small Business Administration (SBA), commercial, commercial real estate, residential real estate, and consumer. The Bank also has established Strategic Programs with various third-party loan origination platforms that use technology to streamline the origination of unsecured consumer and secured or unsecured business loans to borrowers within certain approved credit profiles. The Bank earns monthly program fees based on the volume of loans originated in these Strategic Programs, as well as interest during the time the Bank holds the loans. The Company is subject to competition from other financial institutions and to the regulations of certain federal and state agencies and undergoes periodic examinations by those agencies.
Basis of Presentation	Basis of Presentation Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC for the presentation of the Form 10-Q. The unaudited consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s December 31, 2021 Annual Report on Form 10-K.
Use of estimates	Use of estimates
Out of period adjustment	Out-of-period adjustment
Recently adopted and to be adopted accounting pronouncements	Recently adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities Leases (Topic 842): Targeted Improvements Accounting pronouncements to be adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326)

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2022
Investments [Abstract]
Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Values of Held-to-Maturity Securities	The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at March 31, 2022 and December 31, 2021, are summarized as follows: ​ March 31, 2022 ($ in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Mortgage-backed securities $ 10,986 $ 3 $ (726 ) $ 10,263 ​ December 31, 2021 ($ in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Mortgage-backed securities $ 11,423 $ 23 $ (114 ) $ 11,332
Fair Value and Unrealized Losses of Securities in Unrealized Loss Position	The Company had twelve securities in an unrealized loss position at March 31, 2022 and nine securities in an unrealized loss position at December 31, 2021, as summarized in the following tables: ​ March 31, 2022 Less than 12 months 12 Months or More Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 10,042 $ (726 ) $ — $ — $ 10,042 $ (726 ) ​ December 31, 2021 Less than 12 months 12 Months or More Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 8,961 $ (114 ) $ — $ — $ 8,961 $ (114 )
Amortized Cost and Estimated Market Value of Debt Securities	The amortized cost and estimated market value of debt securities at March 31, 2022, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. ($ in thousands) Amortized Cost Estimated Fair Value Securities held-to-maturity Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 1,462 1,402 Due after ten years 9,524 8,861 ​Total Securities held-to-maturity $ 10,986 $ 10,263

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2022
Loans and Allowance for Loan Losses [Abstract]
Loans Summarized to Major Risk Category	Loans are summarized as follows according to major risk category as of March 31, 2022 and December 31, 2021: ​ March 31, December 31, ​ 2022 2021 ($ in thousands) SBA $ 127,778 $ 142,392 Commercial, non-real estate 3,285 3,428 Residential real estate 30,772 27,108 Strategic Program loans 101,819 85,850 Commercial real estate 4,187 2,436 Consumer 4,711 4,574 Total loans $ 272,552 $ 265,788 Loans held-for-sale (73,805 ) (60,748 ) Total loans held for investment $ 198,747 $ 205,040 Deferred loan costs (fees), net 789 2,917 Allowance for loan losses (9,987 ) (9,855 ) Net loans $ 189,549 $ 198,102
Strategic Program Loans Retained and Held-for-sale	Strategic Program loans retained and held-for-sale as of March 31, 2022 and December 31, 2021, are summarized as follows: ​ March 31, December 31, ​ 2022 2021 ($ in thousands) Retained Strategic Program loans $ 28,014 $ 25,102 Strategic Program loans held-for-sale 73,805 60,748 Total Strategic Program loans $ 101,819 $ 85,850
Changes in Allowance for Loan Losses	Changes in the ALL are summarized as follows: Three Months Ended March 31, 2022 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 2,739 $ 132 $ 352 $ 6,549 $ 21 $ 62 $ 9,855 Charge-offs (31 ) — — (2,878 ) — — (2,909 ) Recoveries — 1 — 93 — — 94 Provision (recapture) 356 (26 ) 59 2,558 — — 2,947 Balance at end of period $ 3,064 $ 107 $ 411 $ 6,322 $ 21 $ 62 $ 9,987 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 3,064 $ 107 $ 411 $ 6,322 $ 21 $ 62 $ 9,987 Loans receivable $ 127,778 $ 3,285 $ 30,772 $ 28,014 $ 4,187 $ 4,711 $ 198,747 Ending balance individually evaluated for impairment 951 — 200 — — — 1,151 Ending balance collectively evaluated for impairment $ 126,827 $ 3,285 $ 30,572 $ 28,014 $ 4,187 $ 4,711 $ 197,596 Three Months Ended March 31, 2021 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 920 $ 232 $ 855 $ 4,111 $ 19 $ 62 $ 6,199 Charge-offs (7 ) (41 ) — (741 ) — (2 ) (791 ) Recoveries 11 — — 132 — — 143 Provision — — — 633 — — 633 Balance at end of period $ 924 $ 191 $ 855 $ 4,135 $ 19 $ 60 $ 6,184 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 924 $ 191 $ 855 $ 4,135 $ 19 $ 60 $ 6,184 Loans receivable $ 167,824 $ 3,867 $ 21,712 $ 6,580 $ 2,589 $ 4,807 $ 207,379 Ending balance individually evaluated for impairment 890 — 756 — — — 1,646 Ending balance collectively evaluated for impairment $ 166,934 $ 3,867 $ 20,956 $ 6,580 $ 2,589 $ 4,807 $ 205,733
Impaired Loans	The following tables summarize impaired loans as of March 31, 2022 and December 31, 2021: March 31, 2022 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 951 $ 951 $ — $ 962 $ 48 Commercial, non-real estate — — — — — Residential real estate 200 200 — 100 — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 1,151 $ 1,151 $ — $ 1,062 $ 48 December 31, 2021 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 972 $ 972 $ — $ 945 $ 47 Commercial, non-real estate — — — — — Residential real estate — — — 189 — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 972 $ 972 $ — $ 1,134 $ 47
Nonaccrual and Past Due Loans	Nonaccrual and past due loans are summarized below as of March 31, 2022 and December 31, 2021: March 31, 2022 ($ in thousands) Current 30-59 Days Past 60-89 Days Past Due 90+ Days Past Due & Still Accruing Total Past Due Non- Total ​ SBA $ 126,894 $ 227 $ — $ — $ 227 $ 657 $ 127,778 Commercial, non-real estate 3,285 — — — — — 3,285 Residential real estate 30,572 — — 200 200 — 30,772 Strategic Program loans 100,105 981 573 159 1,713 1 101,819 Commercial real estate 4,187 — — — — — 4,187 Consumer 4,707 4 — — 4 — 4,711 Total $ 269,750 $ 1,212 $ 573 $ 359 $ 2,144 $ 658 $ 272,552 December 31, 2021 ($ in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due & Still Accruing Total Past Due Non- Accrual Total SBA $ 141,488 $ 247 $ — $ — $ 247 $ 657 $ 142,392 Commercial, non-real estate 3,428 — — — — — 3,428 Residential real estate 27,108 — — — — — 27,108 Strategic Program loans 84,065 1,041 690 54 1,785 — 85,850 Commercial real estate 2,436 — — — — — 2,436 Consumer 4,554 20 — — 20 — 4,574 Total $ 263,079 $ 1,308 $ 690 $ 54 $ 2,052 $ 657 $ 265,788
Outstanding Loan Balances Categorized by Credit Quality Indicators	Outstanding loan balances categorized by these credit quality indicators are summarized as follows at March 31, 2022 and December 31, 2021: March 31, 2022 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 125,366 $ 1,461 $ 951 $ 127,778 Commercial, non-real estate 3,285 — — 3,285 Residential real estate 30,572 — 200 30,772 Commercial real estate 4,187 — — 4,187 Consumer 4,711 — — 4,711 Not Risk Graded Strategic Program loans 101,819 Total at March 31, 2022 $ 168,121 $ 1,461 $ 1,151 $ 272,552 December 31, 2021 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 139,985 $ 1,435 $ 972 $ 142,392 Commercial, non-real estate 3,382 46 — 3,428 Residential real estate 27,108 — — 27,108 Commercial real estate 2,436 — — 2,436 Consumer 4,574 — — 4,574 Not Risk Graded Strategic Program loans 85,850 Total at December 31, 2021 $ 177,485 $ 1,481 $ 972 $ 265,788
Loans Modified and Recorded as TDR's	Loans modified and recorded as TDR’s during the three months ended March 31, 2022 and March 31, 2021, consist of the following: ($ in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment March 31, 2022 SBA 1 $ 96 $ 96 Total at March 31, 2022 1 $ 96 $ 96 Non-Accrual SBA 1 $ 25 $ 25 March 31, 2021 SBA 3 $ 114 $ 114 Residential real estate 1 756 756 Total at March 31, 2021 4 $ 870 $ 870 Non-Accrual SBA 1 $ 53 $ 53

Premises and Equipment (Tables)

Premises and Equipment (Tables)	3 Months Ended
	Mar. 31, 2022
Premises and Equipment [Abstract]
Components of Premises and Equipment	Premises and equipment at March 31, 2022 and December 31, 2021, consist of the following: March 31, December 31, ​ 2022 2021 ($ in thousands) Leasehold improvements $ 80 $ 80 Furniture, fixtures, and equipment 2,437 2,219 Construction in progress 3,453 2,333 Total premises and equipment $ 5,970 $ 4,632 Less accumulated depreciation (1,439 ) (1,347 ) Premises and equipment, net $ 4,531 $ 3,285
Future Minimum Annual Rental Payments for Operating Leases	Future minimum annual rental payments for these operating leases are as follows ($ in thousands): Nine Months Ended December 31, 2022 $ 469 Year Ended December 31, 2023 850 Year Ended December 31, 2024 1,104 Year Ended December 31, 2025 1,086 Year Ended December 31, 2026 1,118 Year Ended December 31, 2027 1,152 Thereafter 2,203 Total 7,982 Less present value discount (596 ) Operating lease liabilities $ 7,386
Information Regarding Lease Assets and Liabilities	The tables below present information regarding the Company’s lease assets and liabilities. Comparative periods and disclosures are not presented here due to adoption of ASC 842 on January 1, 2022. ​ Three Months Ended March 31, ​ 2022 Operating cash flows from operating leases (in thousands) $ 28 Weighted-average remaining lease term – operating leases (in years) 7.4 Weighted-average discount rate – operating leases 1.9 %
Components of Lease Expense	The components of lease expense were as follows (in thousands): ​ Three Months Ended March 31, 2022 (in thousands) Operating leases Operating lease cost $ 236 Variable lease cost 4 Operating lease expense 240 Short-term lease rent expense — Net rent expense $ 240

Deposits (Tables)

Deposits (Tables)	3 Months Ended
	Mar. 31, 2022
Deposits [Abstract]
Major Classes of Deposits	Major classes of deposits at March 31, 2022 and December 31, 2021, are as follows: ​ March 31, December 31, ​ 2022 2021 ($ in thousands) Demand $ 135,249 $ 115,947 Savings 7,089 6,685 Money markets 53,434 31,076 Time certificates of deposit 81,688 98,184 Total deposits $ 277,460 $ 251,892
Maturities of Time Deposits	At March 31, 2022, the scheduled maturities of time deposits are as follows ($ in thousands): Year Ended December 31, 2022 $ 24,444 Year Ended December 31, 2023 21,461 Year Ended December 31, 2024 16,156 Year Ended December 31, 2025 10,073 Year Ended December 31, 2026 8,676 Thereafter 878 Total 81,688

SBA Servicing Asset (Tables)

SBA Servicing Asset (Tables)	3 Months Ended
	Mar. 31, 2022
SBA Servicing Asset [Abstract]
SBA Servicing Asset Activity	The following table summarizes SBA servicing asset activity for the periods indicated: ​ For the Three Months Ended March 31, ($ in thousands) 2022 2021 Beginning balance $ 3,938 $ 2,415 Additions to servicing asset 1,408 856 Recovery on SBA servicing asset 59 — Amortization of servicing asset (180 ) (197 ) Ending balance $ 5,225 $ 3,074

Capital Requirements (Tables)

Capital Requirements (Tables)	3 Months Ended
	Mar. 31, 2022
Capital Requirements [Abstract]
Capital Amounts and Ratios	The Bank’s actual capital amounts and ratios are presented in the following table: ​ Actual Well-Capitalized Requirement ($ in thousands) Amount Ratio Amount Ratio March 31, 2022 Leverage ratio (CBLR election) $ 74,437 19.1 % $ 35,057 * 9.0 % December 31, 2021 Leverage ratio (CBLR election) $ 65,503 17.7 % $ 31,442 * 8.5 % * On March 27, 2020 the CARES Act became law. Section 4012 of the CARES Act directs the agencies to issue an interim final rule reducing the CBLR ratio requirement from 9% to 8% for the last two quarters of the year 2020, 8.5% for the calendar year 2021, and 9% thereafter.

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Tables)	3 Months Ended
	Mar. 31, 2022
Commitments and Contingent Liabilities [Abstract]
Financial Instruments with Off-balance Sheet Risk	At March 31, 2022 and December 31, 2021, financial instruments with off-balance-sheet risk were as follows: ​ March 31, December 31, ($ in thousands) 2022 2021 Revolving, open-end lines of credit $ 1,224 $ 1,259 Commercial real estate 22,167 15,402 Other unused commitments 255 377 ​ $ 23,646 $ 17,038

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Stock-Based Compensation [Abstract]
Stock Option Activity	The following summarizes stock option activity for the three months ended March 31, 2022: ​ Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2021 862,488 $ 4.41 8.2 $ 8,088,660 Options exercised (16,800 ) 2.37 248,312 Options forfeited (6,660 ) 3.28 92,357 Outstanding at March 31, 2022 839,028 $ 4.46 8.0 $ 10,645,951 Options vested and exercisable at March 31, 2022 592,632 $ 4.58 8.0 $ 7,447,226
Pre-Tax and After-Tax Stock-Based Compensation Expense	The following tables present pre-tax and after-tax stock-based compensation expense recognized: ​ For the Three Months Ended March 31, ($ in thousands) 2022 2021 Pre-tax Stock options $ 39 $ 747 Restricted shares — 234 Total $ 39 $ 981 After-tax Stock options $ 38 $ 681 Restricted shares — 478 Total $ 38 $ 1,159

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value of Financial Instruments [Abstract]
Estimated Fair Value and Carrying Value of Financial Instrument	The fair value of PPPLF is estimated using a discounted cash flow based on the remaining contractual term and current borrowing rates for similar terms. ​ March 31, 2022 December 31, 2021 ($ in thousands) Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents 1 $ 116,646 $ 116,646 $ 85,754 $ 85,754 Investment securities held-to-maturity 2 10,986 10,263 11,423 11,332 Investment in FHLB stock 2 449 449 378 378 Loans held for investment 3 189,549 192,172 198,102 197,412 Loans held-for-sale 2 73,805 73,800 60,748 60,743 Accrued interest receivable 2 1,347 1,347 1,548 1,548 SBA servicing asset 2 5,225 5,225 3,938 3,938 Investment in BFG 3 5,400 5,400 5,900 5,900 Financial liabilities: Total deposits 2 277,460 265,883 251,892 249,488 Accrued interest payable 2 39 39 48 48 PPP Liquidity Facility 2 952 952 1,050 1,050
Assets Measured at Fair Value on a Nonrecurring Basis	Assets measured at fair value on a nonrecurring basis are summarized as follows: ($ in thousands) Fair Value Measurements Using Description of Financial Instrument Fair Value Level 1 Level 2 Level 3 March 31, 2022 Nonrecurring assets Impaired loans $ 1,151 $ — $ — $ 1,151 December 31, 2021 Nonrecurring assets Impaired loans $ 972 $ — $ — $ 972
Quantitative Information for Level 3 Fair Value Measurements	The range and weighted average of the significant unobservable inputs used to fair value Level 3 nonrecurring assets as of March 31, 2022 and as of December 31, 2021, along with the valuation techniques used, are shown in the following table: ($ in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) March 31, 2022 Impaired loans $ 1,151 Market comparable Adjustment to appraisal value 0.61 % ​ December 31, 2021 Impaired loans $ 972 Market comparable Adjustment to appraisal value 0.50 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings per Share [Abstract]
Basic and Diluted EPS	The following table is a reconciliation of the components used to derive basic and diluted EPS for the three months ended March 31, 2022 and 2021 ($ in thousands, except share and per share amounts): ​ For the Three Months Ended March 31, ​ 2022 2021 Numerator: Net income $ 9,434 $ 5,291 Amount allocated to participating common shareholders (1) — (357 ) Net income allocate to common shareholders $ 9,434 $ 4,934 Denominator: Weighted average shares outstanding, basic 12,777,237 8,091,186 Weighted average effect of dilutive securities: Stock options 619,516 244,586 Warrants 170,558 — Weighted average shares outstanding, diluted 13,567,311 8,335,772 Earnings per share, basic $ 0.74 $ 0.61 Earnings per share, diluted $ 0.70 $ 0.59 (1) Represents earnings attributable to holders of unvested restricted stock issued outside of the Plan to the Company’s employees.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue Recognition [Abstract]
Disaggregation of Revenue	The following is a summary of the Company’s revenue disaggregated by contracts with customers and revenue outside the scope of ASC 606: ​ For the Three Months Ended March 31, ($ in thousands) 2022 2021 Interest income Interest income, not-in-scope Interest and fees on loans $ 13,156 $ 8,790 Interest on securities 39 6 Other interest income 28 10 Total interest income $ 13,223 $ 8,806 Non-interest income Non-interest income, in-scope Service charges on deposit accounts $ 8 $ 6 Strategic Program set up fees 49 — Non-interest income, not in-scope Strategic Program fees 6,166 2,873 Gain on sale of loans 5,052 2,603 SBA loan servicing fees 387 152 Change in fair value on investment in BFG (398 ) 360 Other miscellaneous income 10 5 Strategic Program service charges 408 80 Total non-interest income $ 11,682 $ 6,079

Summary of Significant Accoun_3

Summary of Significant Accounting Policies, Nature of Business and Organization (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 23, 2021	Jul. 15, 2021	Mar. 31, 2022	Dec. 31, 2021	Nov. 19, 2021
Nature of Business and Organization [Abstract]
Common stock, shares issued (in shares)			12,788,810	12,772,010
Common stock, par value (in dollars per share)			$ 0.001	$ 0.001
Net proceeds	$ 39.3
Other expenses	$ 35.6
Initial Public Offering [Member]
Nature of Business and Organization [Abstract]
Common stock, shares issued (in shares)		4,025,000
Common stock, par value (in dollars per share)		$ 0.001
Number of shares sold pursuant to the underwriters (in shares)		525,000
Sale of stock, share price (in dollars per share)					$ 10.50
Utah Community Bank [Member]
Nature of Business and Organization [Abstract]
Percentage of business acquired			100.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies, COVID-19 (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
COVID-19 [Abstract]
Principal outstanding	$ 189,549	$ 198,102
PPP Loans [Member]
COVID-19 [Abstract]
Percentage of guaranteed payments by SBA		100.00%
Forgiveness of loan received from SBA		$ 125,200
Amount of principal payments made	100	300
Principal outstanding	$ 1,000	$ 1,100
PPP Loans [Member] | Minimum [Member]
COVID-19 [Abstract]
Percentage of loan processing fee	1.00%
PPP Loans [Member] | Maximum [Member]
COVID-19 [Abstract]
Percentage of loan processing fee	5.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies, Out-of-Period Adjustment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Out-of-Period Adjustment [Abstract]
Interest and fee on loans and loans receivable, net	$ 13,156	$ 8,790
Adjustment [Member]
Out-of-Period Adjustment [Abstract]
Interest and fee on loans and loans receivable, net	(800)
Interest and fees, net of tax, on loans and loans receivable, net	$ (600)

Summary of Significant Accoun_6

Summary of Significant Accounting Policies, Recently adopted accounting pronouncements (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Recently Adopted Accounting Pronouncements [Abstract]
Assets	$ 424,484	$ 380,214
Liabilities	299,529	$ 264,772
ASU 2018-11 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Recently Adopted Accounting Pronouncements [Abstract]
Assets	7,400
Liabilities	$ 7,400

Investments, Held-to-Maturity S

Investments, Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Securities held-to-maturity [Abstract]
Amortized cost	$ 10,986	$ 11,423
Estimated fair value	10,263
Mortgage-Backed Securities [Member]
Securities held-to-maturity [Abstract]
Amortized cost	10,986	11,423
Unrealized gain	3	23
Unrealized loss	(726)	(114)
Estimated fair value	$ 10,263	$ 11,332

Investments, Unrealized Loss Po

Investments, Unrealized Loss Position (Details) $ in Thousands	Mar. 31, 2022USD ($)Securities	Dec. 31, 2021USD ($)Securities
Securities in Unrealized Loss Position [Abstract]
Number of securities in unrealized loss position | Securities	12	9
Mortgage-Backed Securities [Member]
Securities in Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	$ 10,042	$ 8,961
Less Than 12 Months, Unrealized Losses	(726)	(114)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	10,042	8,961
Total, Unrealized Losses	$ (726)	$ (114)

Investments, Amortized Cost and

Investments, Amortized Cost and Estimated Market Value of Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Securities Held-to-Maturity, Amortized Cost [Abstract]
Due in one year or less	$ 0
Due after one year through five years	0
Due after five years through ten years	1,462
Due after ten years	9,524
Amortized cost	10,986		$ 11,423
Securities Held-to-Maturity, Estimated Fair Value [Abstract]
Due in one year or less	0
Due after one year through five years	0
Due after five years through ten years	1,402
Due after ten years	8,861
Estimated fair value	10,263
Sale of investment securities	$ 0	$ 0

Investments, FHLB Stock (Detail

Investments, FHLB Stock (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments [Abstract]
FHLB stock to be held as percentage of membership asset value	1.00%
FHLB stock to be held as percentage of FHLB advances outstanding	2.70%
Investment in Federal Home Loan Bank (FHLB) stock, at cost	$ 449	$ 378

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses, Loans Summarized to Major Risk Category (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Loans to Major Risk Category [Abstract]
Total loans	$ 272,552	$ 265,788
Loans held-for-sale	(73,805)	(60,748)
Total loans held for investment	198,747	205,040	$ 207,379
Deferred loan costs (fees), net	789	2,917
Allowance for loan losses	(9,987)	(9,855)	(6,184)	$ (6,199)
Net loans	189,549	198,102
Commercial, Non-Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	3,285	3,428
Total loans held for investment	3,285		3,867
Allowance for loan losses	(107)	(132)	(191)	(232)
Residential Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	30,772	27,108
Total loans held for investment	30,772		21,712
Allowance for loan losses	(411)	(352)	(855)	(855)
Strategic Program Loans [Member]
Loans to Major Risk Category [Abstract]
Total loans	101,819	85,850
Loans held-for-sale	(73,805)	(60,748)
Total loans held for investment	28,014		6,580
Allowance for loan losses	(6,322)	(6,549)	(4,135)	(4,111)
Commercial Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	4,187	2,436
Total loans held for investment	4,187		2,589
Allowance for loan losses	(21)	(21)	(19)	(19)
Consumer [Member]
Loans to Major Risk Category [Abstract]
Total loans	4,711	4,574
Total loans held for investment	4,711		4,807
Allowance for loan losses	(62)	(62)	(60)	(62)
SBA [Member]
Loans to Major Risk Category [Abstract]
Total loans	127,778	142,392
Total loans held for investment	127,778		167,824
Allowance for loan losses	$ (3,064)	$ (2,739)	$ (924)	$ (920)

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses, Strategic Program Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Strategic Program Loans retained and Held-for-sale [Abstract]
Loans held-for-sale	$ 73,805	$ 60,748
Strategic Program Loans [Member]
Strategic Program Loans retained and Held-for-sale [Abstract]
Cash held in reserve by strategic programs	50,800	39,600
Retained loans	28,014	25,102
Loans held-for-sale	73,805	60,748
Total loans	$ 101,819	$ 85,850

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses, Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 9,855	$ 6,199
Charge-offs	(2,909)	(791)
Recoveries	94	143
Provision (recapture)	2,947	633
Ending balance	9,987	6,184
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	9,987	6,184
Total loans	198,747	207,379	$ 205,040
Ending balance individually evaluated for impairment	1,151	1,646
Ending balance collectively evaluated for impairment	197,596	205,733
Commercial, Non-Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	132	232
Charge-offs	0	(41)
Recoveries	1	0
Provision (recapture)	(26)	0
Ending balance	107	191
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	107	191
Total loans	3,285	3,867
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	3,285	3,867
Residential Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	352	855
Charge-offs	0	0
Recoveries	0	0
Provision (recapture)	59	0
Ending balance	411	855
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	411	855
Total loans	30,772	21,712
Ending balance individually evaluated for impairment	200	756
Ending balance collectively evaluated for impairment	30,572	20,956
Strategic Program Loans [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	6,549	4,111
Charge-offs	(2,878)	(741)
Recoveries	93	132
Provision (recapture)	2,558	633
Ending balance	6,322	4,135
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	6,322	4,135
Total loans	28,014	6,580
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	28,014	6,580
Commercial Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	21	19
Charge-offs	0	0
Recoveries	0	0
Provision (recapture)	0	0
Ending balance	21	19
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	21	19
Total loans	4,187	2,589
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	4,187	2,589
Consumer [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	62	62
Charge-offs	0	(2)
Recoveries	0	0
Provision (recapture)	0	0
Ending balance	62	60
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	62	60
Total loans	4,711	4,807
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	4,711	4,807
SBA [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	2,739	920
Charge-offs	(31)	(7)
Recoveries	0	11
Provision (recapture)	356	0
Ending balance	3,064	924
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	3,064	924
Total loans	127,778	167,824
Ending balance individually evaluated for impairment	951	890
Ending balance collectively evaluated for impairment	$ 126,827	$ 166,934

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	$ 1,151	$ 972
Unpaid Principal Balance	1,151	972
Related Allowance	0	0
Average Recorded Investment	1,062	1,134
Interest Income Recognized	48	47
Impaired loans with an allowance recorded	0	0
Commercial, Non-Real Estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Residential Real Estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	200	0
Unpaid Principal Balance	200	0
Related Allowance	0	0
Average Recorded Investment	100	189
Interest Income Recognized	0	0
Strategic Program Loans [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Commercial Real Estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Consumer [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
SBA [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	951	972
Unpaid Principal Balance	951	972
Related Allowance	0	0
Average Recorded Investment	962	945
Interest Income Recognized	$ 48	$ 47

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses, Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Non-accrual and Past Due Loans [Abstract]
Non-accrual	$ 658	$ 657
Total loans	272,552	265,788
Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	269,750	263,079
30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	1,212	1,308
60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	573	690
90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	359	54
Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	2,144	2,052
Commercial, Non-Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	3,285	3,428
Commercial, Non-Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	3,285	3,428
Commercial, Non-Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial, Non-Real Estate [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial, Non-Real Estate [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial, Non-Real Estate [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Residential Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	30,772	27,108
Residential Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	30,572	27,108
Residential Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Residential Real Estate [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Residential Real Estate [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	200	0
Residential Real Estate [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	200	0
Strategic Program Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	1	0
Total loans	101,819	85,850
Strategic Program Loans [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	100,105	84,065
Strategic Program Loans [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	981	1,041
Strategic Program Loans [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	573	690
Strategic Program Loans [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	159	54
Strategic Program Loans [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	1,713	1,785
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	4,187	2,436
Commercial Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	4,187	2,436
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Consumer [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	4,711	4,574
Consumer [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	4,707	4,554
Consumer [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	4	20
Consumer [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Consumer [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Consumer [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	4	20
SBA [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	657	657
Total loans	127,778	142,392
SBA [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	126,894	141,488
SBA [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	227	247
SBA [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
SBA [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
SBA [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	$ 227	$ 247

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses, Outstanding Loan Balances Categorized by Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	$ 272,552	$ 265,788
Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	168,121	177,485
Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	1,461	1,481
Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	1,151	972
Commercial, Non-Real Estate [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	3,285	3,428
Commercial, Non-Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	3,285	3,382
Commercial, Non-Real Estate [Member] | Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	46
Commercial, Non-Real Estate [Member] | Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	0
Residential Real Estate [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	30,772	27,108
Residential Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	30,572	27,108
Residential Real Estate [Member] | Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	0
Residential Real Estate [Member] | Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	200	0
Commercial Real Estate [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	4,187	2,436
Commercial Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	4,187	2,436
Commercial Real Estate [Member] | Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	0
Consumer [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	4,711	4,574
Consumer [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	4,711	4,574
Consumer [Member] | Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	0
Consumer [Member] | Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	0
Strategic Program Loans [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	101,819	85,850
SBA [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	127,778	142,392
SBA [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	125,366	139,985
SBA [Member] | Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	1,461	1,435
SBA [Member] | Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	$ 951	$ 972

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses, TDR's (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)LoanContract	Mar. 31, 2021USD ($)LoanContract
Loans Modified and Recorded as TDR [Abstract]
Number of contracts | Contract	1	4
Pre-modification outstanding recorded investment	$ 96	$ 870
Post-modification outstanding recorded investment	96	870
Modified Troubled Debt Restructuring [Abstract]
Commitments to lend additional funds to debtors	$ 0	0
Number of principal charge-offs related to TDRs | Loan	1
Charge-offs related to TDRs	$ 10	$ 0
Number of new loans modification | Loan	0	0
Number of restructured loans | Loan	1	1
Residential Real Estate [Member]
Loans Modified and Recorded as TDR [Abstract]
Number of contracts | Contract		1
Pre-modification outstanding recorded investment		$ 756
Post-modification outstanding recorded investment		$ 756
SBA [Member]
Loans Modified and Recorded as TDR [Abstract]
Number of contracts | Contract	1	3
Pre-modification outstanding recorded investment	$ 96	$ 114
Post-modification outstanding recorded investment	$ 96	$ 114
Non-Accrual of Troubled Debt Restructuring [Abstract]
Number of contracts | Contract	1	1
Pre-modification outstanding recorded investment	$ 25	$ 53
Post-modification outstanding recorded investment	$ 25	$ 53

Premises and Equipment (Details

Premises and Equipment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)Lease	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Premises and equipment [Abstract]
Total premises and equipment	$ 5,970		$ 4,632
Less accumulated depreciation	(1,439)		(1,347)
Premises and equipment, net	4,531		3,285
Depreciation expense	100	$ 100
Future Minimum Annual Rental Payments for Operating Leases [Abstract]
Nine Months Ended December 31, 2022	469
Year Ended December 31, 2023	850
Year Ended December 31, 2024	1,104
Year Ended December 31, 2025	1,086
Year Ended December 31, 2026	1,118
Year Ended December 31, 2027	1,152
Thereafter	2,203
Total	7,982
Less present value discount	(596)
Operating lease liabilities	$ 7,386		0
Number of leases entered into during period | Lease	1
Information Regarding Lease Assets and Liabilities [Abstract]
Operating cash flows from operating leases	$ 28
Weighted-average remaining lease term - operating leases (in years)	7 years 4 months 24 days
Weighted-average discount rate - operating leases	1.90%
Components of Lease Expense [Abstract]
Operating leases, operating lease cost	$ 236
Operating leases, variable lease cost	4
Operating lease expense	240
Short-term lease rent expense	0
Net rent expense	240	$ 100
Leasehold Improvements [Member]
Premises and equipment [Abstract]
Total premises and equipment	80		80
Furniture, Fixtures and Equipment [Member]
Premises and equipment [Abstract]
Total premises and equipment	2,437		2,219
Construction in Progress [Member]
Premises and equipment [Abstract]
Total premises and equipment	$ 3,453		$ 2,333

Deposits (Details)

Deposits (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Major classes of deposits [Abstract]
Demand	$ 135,249,000	$ 115,947,000
Savings	7,089,000	6,685,000
Money markets	53,434,000	31,076,000
Time certificates of deposit	81,688,000	98,184,000
Total deposits	277,460,000	251,892,000
Maturities of time deposits [Abstract]
Year Ended December 31, 2022	24,444,000
Year Ended December 31, 2023	21,461,000
Year Ended December 31, 2024	16,156,000
Year Ended December 31, 2025	10,073,000
Year Ended December 31, 2026	8,676,000
Thereafter	878,000
Total	81,688,000	98,184,000
FDIC insurance limit on deposit accounts	250,000	250,000
Time deposits equal or greater than FDIC insurance limits	$ 3,500,000	$ 3,700,000

SBA Servicing Asset (Details)

SBA Servicing Asset (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
SBA Servicing Asset [Abstract]
SBA loans serviced for others	$ 256,300		$ 210,200
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning balance	3,938	$ 2,415	2,415
Additions to servicing asset	1,408	856
Recovery on SBA servicing asset	59	0
Amortization of servicing asset	(180)	(197)
Ending balance	5,225	$ 3,074	3,938
Fair market value of SBA servicing asset	$ 5,230		$ 3,940
Weighted average prepayment rate	14.25%		14.37%
Weighted average term	4 years 3 months 3 days		4 years 7 days
Weighted average discount rate	9.70%		11.38%

Capital Requirements, Actual Ca

Capital Requirements, Actual Capital Amounts and Ratios (Details) $ in Thousands		Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Leverage Ratio (CBLR Election), Amount [Abstract]
Actual Amount		$ 74,437	$ 65,503
Well-Capitalized Requirement Amount	[1]	$ 35,057	$ 31,442
Leverage Ratio (CBLR Election), Ratio [Abstract]
Actual Ratio		0.191	0.177
Well Capitalized Requirement Ratio		0.090	0.085
Minimum bank reserve balance		$ 0	$ 0
[1]	On March 27, 2020 the CARES Act became law. Section 4012 of the CARES Act directs the agencies to issue an interim final rule reducing the CBLR ratio requirement from 9% to 8% for the last two quarters of the year 2020, 8.5% for the calendar year 2021, and 9% thereafter.

Commitments and Contingent Li_3

Commitments and Contingent Liabilities, Federal Home Loan Bank Secured Line of Credit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Apr. 20, 2020
Paycheck Protection Program Liquidity Facility [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Line of credit to borrow in overnight funds	$ 1,000		$ 1,000
Borrowings Fixed-rate of interest				0.35%
Average outstanding borrowings	1,000	$ 87,300
Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Outstanding line of credit	0		0
Federal Reserve Bank borrowings on collateral	9,600		10,900
Zion Bank [Member] | Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Unsecured line	1,000		1,000
Bank of the West [Member] | Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Line of credit to borrow in overnight funds	1,050		1,050
Federal Home Loan Bank Secured Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Line of credit to borrow in overnight funds	3,900		4,100
Outstanding line of credit	0		0
Loans pledged to secure line of credit	$ 5,200		$ 5,400

Commitments and Contingent Li_4

Commitments and Contingent Liabilities, Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	$ 23,646	$ 17,038
Commercial Real Estate [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	22,167	15,402
Revolving, Open-End Lines of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	1,224	1,259
Other Unused Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	$ 255	$ 377

Investment in Business Fundin_2

Investment in Business Funding Group, LLC (Details) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022USD ($)$ / shares	Mar. 31, 2021USD ($)	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2021$ / shares	Mar. 31, 2020$ / sharesshares
Investment in Business Funding Group, LLC [Abstract]
Common stock, par value (in dollars per share)	$ 0.001			$ 0.001
Investment Business Funding Group, LLC [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest	10.00%		10.00%
Aggregate value of shares exchanged (in shares) | shares			950,784
Common stock, par value (in dollars per share)			$ 0.001
Fair value of shares exchanged | $			$ 3.5
Membership interests held by other existing members			90.00%
Distributions received | $	$ 0.1	$ 0.3
Warrants issued (in shares) | shares					270,000
Warrants exercise price (in dollars per share)					$ 6.67
Fair value of warrants issued per share (in dollars per share)					$ 0.19
Investment Business Funding Group, LLC [Member] | Minimum [Member]
Investment in Business Funding Group, LLC [Abstract]
Earnings multiplier					10
Investment Business Funding Group, LLC [Member] | Maximum [Member]
Investment in Business Funding Group, LLC [Abstract]
Earnings multiplier					15
Investment Business Funding Group, LLC [Member] | Class A Voting Units [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest			4.96%
Investment Business Funding Group, LLC [Member] | Class B Non-Voting Units [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest			5.04%

Stock-Based Compensation, Summa

Stock-Based Compensation, Summary (Details) - shares	Nov. 18, 2021	Apr. 06, 2020	Dec. 24, 2019	Mar. 31, 2022	Dec. 31, 2019	Dec. 31, 2018	Jun. 20, 2019	Apr. 20, 2017
2019 Plan [Member] | Employee [Member]
Stock-Based Compensation [Abstract]
Number of shares authorized for issuance (in shares)							780,000
Future awards life				10 years
Number of shares available for grant (in shares)				297,786
2016 Plan [Member] | Employee [Member]
Stock-Based Compensation [Abstract]
Number of shares authorized for issuance (in shares)								299,628
Future awards life				10 years
Number of shares available for grant (in shares)				29,712
Shares granted (in shares)						0
2019 Plan and 2016 Plan [Member] | Employee [Member] | Minimum [Member]
Stock-Based Compensation [Abstract]
Vesting period				1 year
2019 Plan and 2016 Plan [Member] | Employee [Member] | Maximum [Member]
Stock-Based Compensation [Abstract]
Future awards life				10 years
Vesting period				5 years
Restricted Stock [Member]
Other Stock-Based Compensation [Abstract]
Stock repurchases (in shares)		73,770			351,852
Restricted Stock [Member] | Employee [Member]
Other Stock-Based Compensation [Abstract]
Number of restricted shares granted (in shares)			1,072,746
Awards vested (in shares)	424,458	73,770			351,852

Stock-Based Compensation, Stock

Stock-Based Compensation, Stock Option Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Aggregate Intrinsic Value [Abstract]
Weighted average grant-date fair value of options granted (in dollars per share)	$ 1.55
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option grants (in shares)	0
Stock Options [Roll Forward]
Outstanding, beginning of year (in shares)	862,488
Options exercised (in shares)	(16,800)
Options forfeited (in shares)	(6,660)
Outstanding, end of period (in shares)	839,028	862,488
Options vested and exercisable, end of period (in shares)	592,632
Weighted Average Exercise Price [Abstract]
Outstanding, beginning of year (in dollars per share)	$ 4.41
Options exercised (in dollars per share)	2.37
Options forfeited (in dollars per share)	3.28
Outstanding, end of period (in dollars per share)	4.46	$ 4.41
Options vested and exercisable, end of period (in dollars per share)	$ 4.58
Weighted Average Remaining Contractual Life [Abstract]
Outstanding	8 years	8 years 2 months 12 days
Options vested and exercisable	8 years
Aggregate Intrinsic Value [Abstract]
Outstanding, beginning of year	$ 8,088,660
Options exercised	248,312
Options forfeited	92,357
Outstanding, end of period	10,645,951	$ 8,088,660
Options vested and exercisable	$ 7,447,226

Stock-Based Compensation, Sto_2

Stock-Based Compensation, Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	$ 39	$ 981
After-tax stock-based compensation expense	38	1,159
Unrecognized stock-based compensation expense	$ 200
Remaining weighted average recognition period	2 years 2 months 12 days
Stock Option [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	$ 39	747
After-tax stock-based compensation expense	38	681
Restricted Stock [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	0	234
After-tax stock-based compensation expense	$ 0	$ 478

Fair Value of Financial Instr_3

Fair Value of Financial Instruments, Estimated Fair Value and Carrying Value of Financial Instrument (Details) $ in Thousands	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2019
Financial assets [Abstract]
Investment securities held-to-maturity	$ 10,263
SBA servicing asset	5,230	$ 3,940
Level 1 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash and cash equivalents	116,646	85,754
Level 1 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	116,646	85,754
Level 2 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Investment securities held-to-maturity	10,986	11,423
Investment in FHLB stock	449	378
Loans held-for-sale	73,805	60,748
Accrued interest receivable	1,347	1,548
SBA servicing asset	5,225	3,938
Financial liabilities [Abstract]
Total deposits	277,460	251,892
Accrued interest payable	39	48
PPP Liquidity Facility	952	1,050
Level 2 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Investment securities held-to-maturity	10,263	11,332
Investment in FHLB stock	449	378
Loans held-for-sale	73,800	60,743
Accrued interest receivable	1,347	1,548
SBA servicing asset	5,225	3,938
Financial liabilities [Abstract]
Total deposits	265,883	249,488
Accrued interest payable	39	48
PPP Liquidity Facility	952	1,050
Level 3 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Loans held for investment	189,549	198,102
Investment in BFG	5,400	5,900
Level 3 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Loans held for investment	192,172	197,412
Investment in BFG	$ 5,400	$ 5,900
Lack of Marketability Discount [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investment, measurement input			0.20
Discount to Non-Voting Shares [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investment, measurement input			0.0450

Fair Value of Financial Instr_4

Fair Value of Financial Instruments, Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Level 3 [Member]
Nonrecurring assets [Abstract]
Impaired loans	$ 1,151	$ 972
Nonrecurring Basis [Member]
Nonrecurring assets [Abstract]
Impaired loans	1,151	972
Nonrecurring Basis [Member] | Level 1 [Member]
Nonrecurring assets [Abstract]
Impaired loans	0	0
Nonrecurring Basis [Member] | Level 2 [Member]
Nonrecurring assets [Abstract]
Impaired loans	0	0
Nonrecurring Basis [Member] | Level 3 [Member]
Nonrecurring assets [Abstract]
Impaired loans	$ 1,151	$ 972

Fair Value of Financial Instr_5

Fair Value of Financial Instruments, Quantitative Information for Level 3 Fair Value Measurements (Details) - Level 3 [Member] $ in Thousands	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans	$ 1,151	$ 972
Market Comparable [Member] | Adjustment to Appraisal Value [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, measurement input	0.0061	0.0050

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Expense [Abstract]
Income tax expense	$ 3,214	$ 1,926
Effective income tax rate	25.40%	26.70%
Statutory rate	26.00%	26.00%
Unrecognized tax benefits	$ 0

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
Related Parties [Abstract]
Loans outstanding to related parties	$ 0	$ 0
Deposits	$ 0.9	$ 0.5
BFG [Member]
Equity Method Investments [Abstract]
Membership interest	10.00%		10.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Numerator [Abstract]
Net income		$ 9,434	$ 5,291
Amount allocated to participating common shareholders	[1]	0	(357)
Net income allocate to common shareholders		$ 9,434	$ 4,934
Denominator [Abstract]
Weighted average shares outstanding, basic (in shares)		12,777,237	8,091,186
Weighted average effect of dilutive securities [Abstract]
Stock options (in shares)		619,516	244,586
Warrants (in shares)		170,558	0
Weighted average shares outstanding, diluted (in shares)		13,567,311	8,335,772
Earnings per share, basic (in dollars per share)		$ 0.74	$ 0.61
Earnings per share, diluted (in dollars per share)		$ 0.70	$ 0.59
Options [Member]
Weighted average effect of dilutive securities [Abstract]
Anti-dilutive securities excluded from earnings per share (in shares)		219,512	698,302
Warrants [Member]
Weighted average effect of dilutive securities [Abstract]
Anti-dilutive securities excluded from earnings per share (in shares)		99,442	270,000
[1]	Represents earnings attributable to holders of unvested restricted stock issued outside of the Plan to the Company’s employees.

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest income, not-in-scope [Abstract]
Interest and fees on loans	$ 13,156	$ 8,790
Interest on securities	39	6
Other interest income	28	10
Total interest income	13,223	8,806
Non-interest income [Abstract]
Total non-interest income	11,682	6,079
Service Charges on Deposit Accounts [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	8	6
Strategic Program Set Up Fees [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	49	0
Strategic Program Fees [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	6,166	2,873
Gain on Sales of Loans, Net [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	5,052	2,603
SBA Loan Servicing Fees [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	387	152
Change in Fair Value on Investment in BFG [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	(398)	360
Other Miscellaneous Income [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	10	5
Strategic Program Service Charges [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	$ 408	$ 80