FinWise Bancorp (FINW) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 14, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
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		12,850,357

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Cash and cash equivalents
Cash and due from banks	$ 410	$ 411
Interest-bearing deposits	92,053	85,343
Total cash and cash equivalents	92,463	85,754
Investment securities held-to-maturity, at cost	13,925	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	43,606	60,748
Loans receivable, net	200,485	198,102
Premises and equipment, net	6,830	3,285
Accrued interest receivable	1,672	1,548
Deferred taxes, net	2,164	1,823
SBA servicing asset, net	5,269	3,938
Operating lease right-of-use ("ROU") assets	6,691	0
Other assets	7,244	7,235
Total assets	385,569	380,214
Deposits
Noninterest-bearing	97,654	110,548
Interest-bearing	135,184	141,344
Total deposits	232,838	251,892
Accrued interest payable	30	48
Income taxes payable, net	1,066	233
PPP Liquidity Facility	345	1,050
Operating lease liabilities	7,249	0
Other liabilities	9,756	11,549
Total liabilities	251,284	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 September 30, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value, 40,000,000 shares authorized; 12,864,821 and 12,772,010 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively	13	13
Additional paid-in-capital	55,113	54,836
Retained earnings	79,159	60,593
Total shareholders' equity	134,285	115,442
Total liabilities and shareholders' equity	385,569	380,214
Business Funding Group, LLC [Member] | Other Controlled Companies [Member]
Cash and cash equivalents
Investment in affiliates	4,500	5,900
FinWise Investments, LLC [Member] | Investments in Wholly-owned Subsidiaries [Member]
Cash and cash equivalents
Investment in affiliates	$ 271	$ 80

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
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)	12,864,821	12,772,010
Common stock, shares outstanding (in shares)	12,864,821	12,772,010

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income
Interest and fees on loans	$ 12,481	$ 13,726	$ 38,501	$ 33,635
Interest on securities	52	7	135	19
Other interest income	290	16	423	36
Total interest income	12,823	13,749	39,059	33,690
Interest expense
Interest on deposits	303	271	808	859
Interest on PPP Liquidity Facility	1	8	2	125
Total interest expense	304	279	810	984
Net interest income	12,519	13,470	38,249	32,706
Provision for loan losses	4,457	3,367	10,317	5,536
Net interest income after provision for loan losses	8,062	10,103	27,932	27,170
Non-interest income
Strategic Program fees	5,136	4,982	17,980	11,877
Gain on sale of loans, net	1,923	2,876	9,387	7,876
SBA loan servicing fees	327	337	1,056	800
Change in fair value on investment in BFG	65	266	(908)	2,127
Other miscellaneous income	72	14	121	35
Total non-interest income	7,523	8,475	27,636	22,715
Non-interest expense
Salaries and employee benefits	5,137	5,930	18,684	16,313
Professional services	1,701	253	3,845	762
Occupancy and equipment expenses	640	205	1,361	602
(Recovery) impairment of SBA servicing asset	(127)	0	949	0
Other operating expenses	1,118	1,010	3,697	3,463
Total non-interest expense	8,469	7,398	28,536	21,140
Income before income tax expense	7,116	11,180	27,032	28,745
Provision for income taxes	3,462	2,738	8,462	7,273
Net income	$ 3,654	$ 8,442	$ 18,570	$ 21,472
Earnings per share, basic (in dollars per share)	$ 0.28	$ 0.97	$ 1.45	$ 2.47
Earnings per share, diluted (in dollars per share)	$ 0.27	$ 0.91	$ 1.37	$ 2.36
Weighted average shares outstanding, basic (in shares)	12,784,298	8,255,953	12,727,555	8,177,575
Weighted average shares outstanding, diluted (in shares)	13,324,059	8,810,829	13,404,564	8,545,501

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	1,485	0	1,485
Stock-based compensation expense (in shares)	0
Stock options exercised	$ 0	309	0	309
Stock options exercised (in shares)	85,776
Net income	$ 0	0	21,472	21,472
Ending balance at Sep. 30, 2021	$ 9	18,647	50,482	69,138
Ending balance (in shares) at Sep. 30, 2021	8,746,110
Beginning balance at Jun. 30, 2021	$ 9	18,274	42,040	60,323
Beginning balance (in shares) at Jun. 30, 2021	8,716,110
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	230	0	230
Stock-based compensation expense (in shares)	0
Stock options exercised	$ 0	143	0	143
Stock options exercised (in shares)	30,000
Net income	$ 0	0	8,442	8,442
Ending balance at Sep. 30, 2021	$ 9	18,647	50,482	69,138
Ending balance (in shares) at Sep. 30, 2021	8,746,110
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	447	0	447
Stock-based compensation expense (in shares)	96,011
Common stock repurchased	$ 0	(210)	(4)	$ (214)
Common stock repurchased (in shares)	(20,000)			(20,000)
Stock options exercised	$ 0	40	0	$ 40
Stock options exercised (in shares)	16,800
Net income	$ 0	0	18,570	18,570
Ending balance at Sep. 30, 2022	$ 13	55,113	79,159	134,285
Ending balance (in shares) at Sep. 30, 2022	12,864,821
Beginning balance at Jun. 30, 2022	$ 13	55,015	75,509	130,537
Beginning balance (in shares) at Jun. 30, 2022	12,884,821
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	308	0	308
Stock-based compensation expense (in shares)	0
Common stock repurchased	$ 0	(210)	(4)	(214)
Common stock repurchased (in shares)	(20,000)
Net income	$ 0	0	3,654	3,654
Ending balance at Sep. 30, 2022	$ 13	$ 55,113	$ 79,159	$ 134,285
Ending balance (in shares) at Sep. 30, 2022	12,864,821

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 18,570	$ 21,472
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization	1,345	750
Provision for loan losses	10,317	5,536
Amortization of operating lease ROU asset	689	0
Net amortization in securities discounts and premiums	26	19
Capitalized servicing assets	(3,164)	(2,474)
Gain on sale of SBA loans, net	(9,387)	(7,876)
Originations of Strategic Program loans held-for-sale	(5,863,965)	(4,064,999)
Proceeds on Strategic Program loans held-for-sale	5,881,107	4,023,245
Change in fair value of BFG	908	(2,127)
Impairment of SBA servicing asset	949	0
Stock-based compensation expense	447	1,485
Deferred income tax benefit	(341)	(1,145)
Net changes in:
Accrued interest receivable	(124)	332
Accrued interest payable	(18)	(152)
Other assets	(9)	(3,416)
Operating lease liabilities	(131)	0
Other liabilities	(960)	7,875
Net cash provided by (used in) operating activities	36,259	(21,475)
Cash flows from investing activities:
Net decrease in loans receivable	6,916	61,665
Purchase of loan pools	(10,267)	(6,000)
Investments in FinWise Investments, LLC	(191)	0
Distributions from BFG	492	656
Purchase of bank premises and equipment	(3,968)	(1,448)
Proceeds from maturities and paydowns of securities held-to-maturity	1,413	381
Purchases of securities held to maturity	(3,941)	(3,005)
Purchase of FHLB stock	(71)	(172)
Net cash (used in) provided by investing activities	(9,617)	52,077
Cash flows from financing activities:
Net increase (decrease) in deposits	(19,054)	88,560
Common stock repurchased	(214)	0
Proceeds from exercise of stock options	40	309
Proceeds from PPP Liquidity Facility	0	5,558
Repayment of PPP Liquidity Facility	(705)	(104,306)
Net cash used in financing activities	(19,933)	(9,879)
Net change in cash and cash equivalents	6,709	20,723
Cash and cash equivalents, beginning of the period	85,754	47,383
Cash and cash equivalents, end of the period	92,463	68,106
Cash paid during the period
Income taxes	7,957	6,240
Interest	828	1,136
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	9 Months Ended
	Sep. 30, 2022
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies Nature of business and organization – Bancorp is a Utah Corporation headquartered in Murray, Utah and operates all business activities through its wholly-owned banking subsidiary, FinWise Bank, f/k/a Utah Community Bank. FinWise Bank was incorporated in the state of Utah on May 7, 1999. FinWise Bancorp, f/k/a All West Bancorp, was incorporated in the state of Utah on October 22, 2002, after which, it acquired 100% of FinWise Bank. As of March 4, 2016, FinWise Bank’s articles of incorporation were amended to rename the entity FinWise Bank. As of March 15, 2021, FinWise Bancorp’s articles of incorporation were amended and restated to rename the entity FinWise Bancorp. References herein to “FinWise Bancorp,” “Bancorp” or the “holding company,” refer to FinWise Bancorp on a standalone basis. The word “Company” refers to FinWise Bancorp and FinWise Bank collectively and on a consolidated basis. References to the “Bank” refer to FinWise Bank on a standalone basis. 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 provides a full range of banking services to individual and commercial customers. The Bank’s primary source of revenue is from loans including consumer, Small Business Administration (SBA), commercial, commercial real estate, and residential real estate. 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 enabling remote working capability 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 September 30, 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 Stock Repurchase Program 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) In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Enactment of the Inflation Reduction Act of 2022 On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (IRA) which, among other changes, created a new corporate alternative minimum tax (AMT) based on adjusted financial statement income and imposes a 1% excise tax on corporate stock repurchases. The effective date of these provisions is January 1, 2023. The Company is currently evaluating the effects that the enactment of the IRA will have on its consolidated financial statements.

Investments

Investments	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021, are summarized as follows: ​ September 30, 2022 ($ in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Mortgage-backed securities $ 13,925 $ — $ (1,567 ) $ 12,358 ​ 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 seventeen securities in an unrealized loss position at September 30, 2022 and nine securities in an unrealized loss position at December 31, 2021, as summarized in the following tables: ​ September 30, 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 $ 12,358 $ (1,567 ) $ — $ — $ 12,358 $ (1,567 ) ​ 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 September 30, 2022 and December 31, 2021, 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. September 30, 2022 December 31, 2021 ($ in thousands) Amortized Cost Estimated Fair Value 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 3,205 3,038 1,541 1,548 Due after ten years 10,720 9,320 9,882 9,784 ​Total Securities held-to-maturity $ 13,925 $ 12,358 $ 11,423 $ 11,332 At September 30, 2022, all held-to-maturity securities were pledged as collateral for a credit line held by the Bank. There were no sales or transfers of investment securities and no realized gains or losses on these securities during the nine months ended September 30, 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 September 30, 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 September 30, 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	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021: ​ September 30, December 31, ​ 2022 2021 ($ in thousands) SBA $ 127,455 $ 142,392 Commercial, non-real estate 12,970 3,428 Residential real estate 34,501 27,108 Strategic Program loans 70,290 85,850 Commercial real estate 6,149 2,436 Consumer 5,455 4,574 Total loans $ 256,820 $ 265,788 Loans held-for-sale (43,606 ) (60,748 ) Total loans held for investment $ 213,214 $ 205,040 Deferred loan costs (fees), net (761 ) 2,917 Allowance for loan losses (11,968 ) (9,855 ) Net loans $ 200,485 $ 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, along with any other collateral, does not fall below the dollar amount of the total loans held-for-sale outstanding currently held by the Company for the specific Strategic Program. Collateral may include deposits held at the Bank, at another institution where the Bank has control of the account or a combination of deposits and other vehicles such as letters of credit. If necessary, the Company has the right to withdraw amounts from these sources to fulfill loan purchaser obligations created under the program agreements. Total cash held in reserve by Strategic Programs at the Company at September 30, 2022 and December 31, 2021, was $23.6 million and $39.6 million, respectively. Strategic Program loans retained and held-for-sale as of September 30, 2022 and December 31, 2021, are summarized as follows: ​ September 30, December 31, ​ 2022 2021 ($ in thousands) Retained Strategic Program loans $ 26,684 $ 25,102 Strategic Program loans held-for-sale 43,606 60,748 Total Strategic Program loans $ 70,290 $ 85,850 Changes in the ALL are summarized as follows: Three Months Ended September 30, 2022 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 3,384 $ 274 $ 415 $ 6,442 $ 22 $ 65 $ 10,602 Charge-offs (259 ) — — (3,070 ) — (4 ) (3,333 ) Recoveries 9 — — 233 — — 242 Provision for loan losses 675 190 38 3,542 7 5 4,457 Balance at end of period $ 3,809 $ 464 $ 453 $ 7,147 $ 29 $ 66 $ 11,968 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 3,809 $ 464 $ 453 $ 7,147 $ 29 $ 66 $ 11,968 Loans receivable $ 127,455 $ 12,970 $ 34,501 $ 26,684 $ 6,149 $ 5,455 $ 213,214 Ending balance individually evaluated for impairment 95 — — — — 95 Ending balance collectively evaluated for impairment $ 127,360 $ 12,970 $ 34,501 $ 26,684 $ 6,149 $ 5,455 $ 213,119 Nine Months Ended September 30, 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 (392 ) — — (8,508 ) — (4 ) (8,904 ) Recoveries 57 2 — 641 — — 700 Provision for loan losses 1,405 330 101 8,465 8 8 10,317 Balance at end of period $ 3,809 $ 464 $ 453 $ 7,147 $ 29 $ 66 $ 11,968 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 3,809 $ 464 $ 453 $ 7,147 $ 29 $ 66 $ 11,968 Loans receivable $ 127,455 $ 12,970 $ 34,501 $ 26,684 $ 6,149 $ 5,455 $ 213,214 Ending balance individually evaluated for impairment 95 — — — — 95 Ending balance collectively evaluated for impairment $ 127,360 $ 12,970 $ 34,501 $ 26,684 $ 6,149 $ 5,455 $ 213,119 Three Months Ended September 30, 2021 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 977 $ 250 $ 855 $ 5,078 $ 19 $ 60 $ 7,239 Charge-offs (1 ) — — (1,105 ) — — (1,106 ) Recoveries 30 11 — 99 — — 140 Provision for loan losses 149 — — 3,218 — — 3,367 Balance at end of period $ 1,155 $ 261 $ 855 $ 7,290 $ 19 $ 60 $ 9,640 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 1,155 $ 261 $ 855 $ 7,290 $ 19 $ 60 $ 9,640 Loans receivable $ 125,192 $ 3,955 $ 25,105 $ 25,174 $ 2,357 $ 4,729 $ 186,512 Ending balance individually evaluated for impairment 1,079 — — — — — 1,079 Ending balance collectively evaluated for impairment $ 124,113 $ 3,955 $ 25,105 $ 25,174 $ 2,357 $ 4,729 $ 185,433 Nine Months Ended September 30, 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 (55 ) (63 ) — (2,304 ) — (3 ) (2,425 ) Recoveries 41 92 — 196 — 1 330 Provision for loan losses 249 — — 5,287 — — 5,536 Balance at end of period $ 1,155 $ 261 $ 855 $ 7,290 $ 19 $ 60 $ 9,640 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 1,155 $ 261 $ 855 $ 7,290 $ 19 $ 60 $ 9,640 Loans receivable $ 125,192 $ 3,955 $ 25,105 $ 25,174 $ 2,357 $ 4,729 $ 186,512 Ending balance individually evaluated for impairment 1,079 — — — — — 1,079 Ending balance collectively evaluated for impairment $ 124,113 $ 3,955 $ 25,105 $ 25,174 $ 2,357 $ 4,729 $ 185,433 The following tables summarize impaired loans as of September 30, 2022 and December 31, 2021: September 30, 2022 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 95 $ 95 $ — $ 534 $ 27 Commercial, non-real estate — — — — — Residential real estate — — — — — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 95 $ 95 $ — $ 534 $ 27 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 are summarized below as of September 30, 2022 and December 31, 2021: September 30, 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 $ 127,455 $ — $ — $ — $ — $ — $ 127,455 Commercial, non-real estate 12,970 — — — — — 12,970 Residential real estate 34,178 323 — — 323 — 34,501 Strategic Program loans 67,940 1,281 815 254 2,350 — 70,290 Commercial real estate 6,149 — — — — — 6,149 Consumer 5,448 — 7 — 7 — 5,455 Total $ 254,140 $ 1,604 $ 822 $ 254 $ 2,680 $ — $ 256,820 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 and nine months ended September 30, 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 September 30, 2022 and December 31, 2021: September 30, 2022 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 125,611 $ 1,749 $ 95 $ 127,455 Commercial, non-real estate 12,970 — — 12,970 Residential real estate 34,501 — — 34,501 Commercial real estate 6,149 — — 6,149 Consumer 5,455 — — 5,455 Not Risk Graded Strategic Program loans 70,290 Total $ 184,686 $ 1,749 $ 95 $ 256,820 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 $ 177,485 $ 1,481 $ 972 $ 265,788 Loans modified and recorded as TDR’s at September 30, 2022 and December 31, 2021, consist of the following: ($ in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment September 30, 2022 SBA 1 $ 95 $ 95 Total at September 30, 2022 1 $ 95 $ 95 December 31, 2021 SBA 2 $ 106 $ 106 Total at December 31, 2021 2 $ 106 $ 106 Non-Accrual SBA 1 $ 25 $ 25 At September 30, 2022 and December 31, 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 included modifications to rate and term. There was one principal charge-off recorded related to TDRs during the nine months ended September 30, 2022 for $0.01 million. There were no principal charge-offs recorded related to TDRs during the nine months ended September 30, 2021. There was no principal charge-off recorded related to TDRs during the three months ended September 30, 2022. There were no principal charge-offs recorded related to TDRs during the three months ended September 30, 2021. During the three and nine months ended September 30, 2022 and 2021, there were no loan modifications to TDRs. Separately, one restructured loan incurred a default within 12 months of the restructure date during the nine months ended September 30, 2022. This same loan was paid in full with interest on June 2, 2022. One restructured loan incurred a default within 12 months of the restructure date during the nine months ended September 30, 2021. This same loan was paid in full with interest on May 28, 2021.

Premises and Equipment

Premises and Equipment	9 Months Ended
	Sep. 30, 2022
Premises and Equipment [Abstract]
Premises and Equipment	Note 4 – Premises and Equipment Premises and equipment at September 30, 2022 and December 31, 2021, consist of the following: September 30, December 31, ​ 2022 2021 ($ in thousands) Leasehold improvements $ 36 $ 80 Furniture, fixtures, and equipment 3,756 2,219 Construction in progress 4,808 2,333 Total premises and equipment $ 8,600 $ 4,632 Less accumulated depreciation (1,770 ) (1,347 ) Premises and equipment, net $ 6,830 $ 3,285 Depreciation expense was approximately $0.5 million and $0.2 million for the nine months ended September 30, 2022 and 2021, respectively. Lease Liabilities The Company leases its facilities under noncancelable operating leases. Rent expense for nine months ended September 30, 2022 and 2021 was $0.8 million and $0.4 million, respectively. Future minimum annual undiscounted rental payments for these operating leases are as follows ($ in thousands): Three Months Ended December 31, 2022 $ 263 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 Thereafter 3,355 Total 7,776 Less present value discount (527 ) Operating lease liabilities $ 7,249 The Company entered into one lease during the nine months ended September 30, 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. ​ Nine Months Ended ​ September 30, 2022 Weighted-average remaining lease term – operating leases (in years) 7.0 Weighted-average discount rate – operating leases 1.9 % Supplemental cash flow information related to leases were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, ​ 2022 2022 ($ in thousands) Operating cash flows from operating leases $ 178 $ 234 Right-of-use assets obtained in exchange for operating lease liabilities — 7,380 The components of lease expense were as follows (in thousands): ​ Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (in thousands) Operating leases Operating lease cost $ 278 $ 791 Variable lease cost 4 12 Operating lease expense 282 803 Short-term lease rent expense 9 38 Net rent expense $ 291 $ 841

Deposits

Deposits	9 Months Ended
	Sep. 30, 2022
Deposits [Abstract]
Deposits	Note 5 – Deposits Major classes of deposits at September 30, 2022 and December 31, 2021, are as follows: ​ September 30, December 31, ​ 2022 2021 ($ in thousands) Demand $ 152,806 $ 115,947 Savings 7,252 6,685 Money markets 12,281 31,076 Time certificates of deposit 60,499 98,184 Total deposits $ 232,838 $ 251,892 At September 30, 2022, the scheduled maturities of time deposits are as follows ($ in thousands): Year Ended December 31, 2022 $ 6,448 Year Ended December 31, 2023 18,749 Year Ended December 31, 2024 15,490 Year Ended December 31, 2025 10,047 Year Ended December 31, 2026 8,341 Thereafter 1,424 Total 60,499 Time deposits with balances equal or greater than $250,000 totaled $4.8 million and $3.7 million at September 30, 2022 and December 31, 2021, respectively.

SBA Servicing Asset

SBA Servicing Asset	9 Months Ended
	Sep. 30, 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 $295.8 million and $210.2 million at September 30, 2022 and December 31, 2021, respectively. The following table summarizes SBA servicing asset activity for the periods indicated: ​ For the Three Months Ended September 30, For the Nine Months Ended September 30, ($ in thousands) 2022 2021 2022 2021 Beginning balance $ 4,586 $ 3,725 $ 3,938 $ 2,415 Additions to servicing asset 921 714 3,164 2,474 Recovery (Impairment) of SBA servicing asset 127 — (949 ) — Amortization of servicing asset (365 ) (71 ) (884 ) (521 ) Ending balance $ 5,269 $ 4,368 $ 5,269 $ 4,368 The fair market value of the SBA servicing asset as of September 30, 2022 and December 31, 2021, was $5.3 million and $3.9 million, respectively. Recovery or impairment 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 14.46%, weighted average term of 4.32 years, and a weighted average discount rate of 14.07% at September 30, 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	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021, that the Bank meets all capital adequacy requirements to which it is subject. As of September 30, 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 September 30, 2022 Leverage ratio (CBLR election) $ 85,744 24.9 % $ 31,049 * 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 no reserve requirements as of September 30, 2022 and December 31, 2021. 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	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021, the Bank’s available line of credit with the FHLB to borrow in overnight funds was $3.2 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 September 30, 2022 and December 31, 2021, no amounts were outstanding under the line of credit. Loans totaling $4.9 million and $5.4 million were pledged to secure the FHLB line of credit as of September 30, 2022 and December 31, 2021, respectively. Line of Credit At September 30, 2022 and December 31, 2021, we had the ability to access $10.1 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 September 30, 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 September 30, 2022 and December 31, 2021. We had no outstanding balances on such unsecured or secured lines of credit as of September 30, 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 $0.3 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at September 30, 2022. The Bank pledged $1.0 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at December 31, 2021. The average outstanding borrowings were $0.6 million during the nine months ended September 30, 2022 and $48.1 million during the nine months ended September 30, 2021. Commitments to Extend Credit In the ordinary course of business, the Bank has entered into commitments to extend credit to customers which have not yet been exercised. These financial instruments include commitments to extend credit in the form of loans. Those instruments involve to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. At September 30, 2022 and December 31, 2021, financial instruments with off-balance-sheet risk were as follows: ​ September 30, December 31, ($ in thousands) 2022 2021 Revolving, open-end lines of credit $ 1,747 $ 1,259 Commercial real estate 19,563 15,402 Other unused commitments 397 377 ​ $ 21,707 $ 17,038

Investment in Business Funding

Investment in Business Funding Group, LLC	9 Months Ended
	Sep. 30, 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 $0.5 million and $0.7 million for the nine months ended September 30, 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	9 Months Ended
	Sep. 30, 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. On April 19, 2022, the Company’s Board of Directors approved an amendment of the 2019 Plan to change its name from the All West Bancorporation 2019 Stock Option Plan to the FinWise Bancorp 2019 Stock Option Plan and to increase the number of shares of the Company’s common stock available for awards under the 2019 Plan by 500,000 shares to 1,280,000 shares, subject to shareholder approval. The Company’s shareholders approved the name change and increase in the number of shares at the Company’s 2022 Annual Meeting of Shareholders on June 9, 2022. 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 September 30, 2022, 648,197 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 September 30, 2022, 894 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 June 9, 2022, the Board approved a restricted stock discretionary grant of 96,011 shares with an aggregate fair value of $1.3 million from the 2019 Plan to certain executives. Granted shares vest ratably over three years based on achievement of specific levels of the Company’s return on average assets (ROAA) and, subject to the terms and conditions of the grant agreements, will be fully vested on June 9, 2025. 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. The assumptions for expected life reflected management’s judgment and include consideration of historical experience. Expected volatility is based on data from comparable public companies for the expected option term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected forfeitures are estimated based on the Company’s historical forfeiture experience. Management believes that the assumptions used in the option-pricing model are highly subjective and represent only one estimate of possible value, as there is no active market for the options granted. The table below summarizes the assumptions used: ​ For the Nine Months Ended September 30, 2022 2021 Risk-free interest rate 3.10 % 0.4% – 0.7 % Expected term in years 5.5 – 6.5 5.0 – 7.5 Expected volatility 45.8% – 46.7 % 45.7% – 47.6 % Expected dividend yield — — The following summarizes stock option activity for the three months and nine months ended September 30, 2022: ​ Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at June 30, 2022 925,283 $ 5.29 8.0 $ 4,091,633 Options forfeited (3,859 ) 5.62 — 16,359 Outstanding at September 30, 2022 921,424 $ 5.29 7.7 $ 3,828,066 Options vested and exercisable at September 30, 2022 621,378 $ 4.54 7.5 $ 2,789,615 ​ 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 granted 89,415 13.04 9.9 — Options exercised (16,800 ) 2.37 — 248,312 Options forfeited (13,679 ) 4.20 — 124,874 Outstanding at September 30 2022 921,424 $ 5.29 7.7 $ 3,828,066 Options vested and exercisable at September 30 2022 621,378 $ 4.54 7.5 $ 2,789,615 The weighted average grant-date fair value of options per share granted during the nine months ended September 30, 2022 was $6.26. The aggregate intrinsic value of options exercised during the nine months ended September 30, 2022 was $0.2 million. During the nine months ended September 30, 2022, the Company received de minimis de minimis The weighted average grant-date fair value of options per share granted during the nine months ended September 30, 2021 was $1.48. The aggregate intrinsic value of options exercised during the nine months ended September 30, 2021 was $0.5 million. During the nine months ended September 30, 2021, the Company received $0.3 million de minimis Stock-based compensation expense The following tables present pre-tax and after-tax stock-based compensation expense recognized: ​ For the Three Months Ended September 30, For the Nine Months Ended September 30, ($ in thousands) 2022 2021 2022 2021 Pre-tax Stock options $ 116 $ 61 $ 209 $ 883 Restricted shares 192 169 238 602 Total $ 308 $ 230 $ 447 $ 1,485 After-tax Stock options $ 116 $ 44 $ 204 $ 757 Restricted shares 192 169 238 800 Total $ 308 $ 213 $ 442 $ 1,557 As of September 30, 2022, the Company had unrecognized stock-based compensation expense related to stock options and restricted stock of approximately $0.6 million and $1.0 million, respectively, which is expected to be recognized over the remaining weighted average recognition period of 1.9 years and 1.8 years.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 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 discount to non-voting shares to arrive at fair value as of September 30, 2022 and December 31, 2021. The calculation of fair value utilized significant unobservable inputs, including projected cash flows, growth rates, and discount rates. The fair value of the investment in BFG was $4.5 million and $5.9 million as of September 30, 2022 and December 31, 2021, respectively. The following table summarizes investment in BFG activity for the periods indicated: ​ For the Nine Months Ended September 30, ($ in thousands) 2022 2021 Beginning balance $ 5,900 $ 3,770 Distributions from BFG (492 ) (656 ) Change in fair value of BFG (908 ) 2,127 Ending balance $ 4,500 $ 5,241 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. ​ September 30, 2022 December 31, 2021 ($ in thousands) Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents 1 $ 92,463 $ 92,463 $ 85,754 $ 85,754 Investment securities held-to-maturity 2 13,925 12,358 11,423 11,332 Investment in FHLB stock 2 449 449 378 378 Loans held for investment 3 200,485 220,055 198,102 197,412 Loans held-for-sale 2 43,606 43,601 60,748 60,743 Accrued interest receivable 2 1,672 1,672 1,548 1,548 SBA servicing asset 2 5,269 5,269 3,938 3,938 Investment in BFG 3 4,500 4,500 5,900 5,900 Financial liabilities: Total deposits 2 232,838 203,469 251,892 249,488 Accrued interest payable 2 30 30 48 48 PPP Liquidity Facility 2 345 345 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 September 30 2022 Nonrecurring assets Impaired loans $ 95 $ — $ — $ 95 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 September 30, 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) September 30 2022 Impaired loans $ 95 Market comparable Adjustment to appraisal value 0.05 % ​ December 31, 2021 Impaired loans $ 972 Market comparable Adjustment to appraisal value 0.50 % The range and weighted average of the significant unobservable inputs used to fair value the investment September 30, 2022 December 31, 2021 ($ in thousands) Range (Weighted Average) Range (Weighted Average) Discounted Cash Flows Revenue growth rate 14.6 % 16.6 % Expense growth rate 14.3 % 16.3 % Discount rate 30.0 % 25.0 % Guideline Public Company Multiples of enterprise value 3.0x to 4.0x 4.0x to 6.0x

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 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 increased $0.3 million during the nine months ended September 30, 2022 as a result of changes to temporary timing differences associated with accounting for bad debts. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary. Based on this analysis, management has determined that a valuation allowance for deferred tax assets was not required at September 30, 2022. For the nine months ended September 30, 2022 and 2021, income tax expense was $8.5 million and $7.3 million, respectively, resulting in an effective income tax rate of 31.3% and 25.3%, respectively. The effective tax rate differs from the statutory rate of 24.9% during the nine months ended September 30, 2022 due primarily to nondeductible wages, state taxes and the tax effect of stock-based compensation. The effective tax rate differs from the statutory rate of 24.9% during the nine months ended September 30, 2021 due primarily to the tax effect of stock-based compensation. The Company had no unrecognized tax benefits at September 30, 2022. Out-of-period adjustment

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021. Total deposits from certain executive officers and directors and the companies with which they are associated were $1.0 million and $0.5 million as of September 30, 2022 and December 31, 2021, respectively. On October 21, 2022, Mr. Alan Weichselbaum, who was elected as a director of the Company on October 6, 2022, repaid in full the $0.1 million aggregate principal amount plus interest owed under a secured promissory note, dated as of June 1, 2022 (the “2022 Note”), between the Company and Mr. Weichselbaum in accordance with the terms of the 2022 Note. As such, the obligations of the parties under the 2022 Note and a related security agreement were discharged and the 2022 Note and the security agreement were terminated. 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	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2022 and 2021 ($ in thousands, except share and per share amounts): ​ For the Three Months Ended September 30, For the Nine Months Ended September 30, ($ in thousands) 2022 2021 2022 2021 Numerator: Net income $ 3,654 $ 8,442 $ 18,570 $ 21,472 Amount allocated to participating common shareholders (1) (27 ) (463 ) (139 ) (1,312 ) Net income allocate to common shareholders $ 3,627 $ 7,979 $ 18,431 $ 20,160 Denominator: Weighted average shares outstanding, basic 12,784,298 8,255,953 12,727,555 8,177,575 Weighted average effect of dilutive securities: Stock options 450,038 466,217 542,740 318,926 Warrants 89,723 88,659 134,269 49,000 Weighted average shares outstanding, diluted 13,324,059 8,810,829 13,404,564 8,545,501 Earnings per share, basic $ 0.28 $ 0.97 $ 1.45 $ 2.47 Earnings per share, diluted $ 0.27 $ 0.91 $ 1.37 $ 2.36 (1) Represents earnings attributable to holders of unvested restricted stock issued outside of the 2016 Plan and 2019 Plan to the Company’s employees for the three or nine months ended September 30, 2021. There were 378,684 and 563,062 anti-dilutive options for the nine months ended September September

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 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 September 30, For the Nine Months Ended September 30, ($ in thousands) 2022 2021 2022 2021 Interest income Interest income, not-in-scope Interest and fees on loans $ 12,481 $ 13,726 $ 38,501 $ 33,635 Interest on securities 52 7 135 19 Other interest income 290 16 423 36 Total interest income $ 12,823 $ 13,749 $ 39,059 $ 33,690 Non-interest income Non-interest income, in-scope Service charges on deposit accounts $ 8 $ 9 $ 23 $ 22 Strategic Program set up fees 49 28 146 47 Non-interest income, not in-scope Strategic Program fees 5,023 4,731 17,067 11,451 Gain on sale of loans 1,923 2,875 9,387 7,876 SBA loan servicing fees 327 337 1,056 800 Change in fair value on investment in BFG 65 266 (908 ) 2,127 Other miscellaneous income 64 6 98 13 Strategic Program service charges 64 223 767 379 Total non-interest income $ 7,523 $ 8,475 $ 27,636 $ 22,715

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 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 November 14, 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)	9 Months Ended
	Sep. 30, 2022
Summary of Significant Accounting Policies [Abstract]
Nature of business and organization	Nature of business and organization – Bancorp is a Utah Corporation headquartered in Murray, Utah and operates all business activities through its wholly-owned banking subsidiary, FinWise Bank, f/k/a Utah Community Bank. FinWise Bank was incorporated in the state of Utah on May 7, 1999. FinWise Bancorp, f/k/a All West Bancorp, was incorporated in the state of Utah on October 22, 2002, after which, it acquired 100% of FinWise Bank. As of March 4, 2016, FinWise Bank’s articles of incorporation were amended to rename the entity FinWise Bank. As of March 15, 2021, FinWise Bancorp’s articles of incorporation were amended and restated to rename the entity FinWise Bancorp. References herein to “FinWise Bancorp,” “Bancorp” or the “holding company,” refer to FinWise Bancorp on a standalone basis. The word “Company” refers to FinWise Bancorp and FinWise Bank collectively and on a consolidated basis. References to the “Bank” refer to FinWise Bank on a standalone basis. 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 provides a full range of banking services to individual and commercial customers. The Bank’s primary source of revenue is from loans including consumer, Small Business Administration (SBA), commercial, commercial real estate, and residential real estate. 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.
Out-of-period adjustment	Out-of-period adjustment
Use of estimates	Use of estimates
Stock Repurchase Program	Stock Repurchase Program
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) In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Enactment of the Inflation Reduction Act of 2022 On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (IRA) which, among other changes, created a new corporate alternative minimum tax (AMT) based on adjusted financial statement income and imposes a 1% excise tax on corporate stock repurchases. The effective date of these provisions is January 1, 2023. The Company is currently evaluating the effects that the enactment of the IRA will have on its consolidated financial statements.

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021, are summarized as follows: ​ September 30, 2022 ($ in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Mortgage-backed securities $ 13,925 $ — $ (1,567 ) $ 12,358 ​ 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 seventeen securities in an unrealized loss position at September 30, 2022 and nine securities in an unrealized loss position at December 31, 2021, as summarized in the following tables: ​ September 30, 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 $ 12,358 $ (1,567 ) $ — $ — $ 12,358 $ (1,567 ) ​ 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 September 30, 2022 and December 31, 2021, 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. September 30, 2022 December 31, 2021 ($ in thousands) Amortized Cost Estimated Fair Value 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 3,205 3,038 1,541 1,548 Due after ten years 10,720 9,320 9,882 9,784 ​Total Securities held-to-maturity $ 13,925 $ 12,358 $ 11,423 $ 11,332

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 and December 31, 2021: ​ September 30, December 31, ​ 2022 2021 ($ in thousands) SBA $ 127,455 $ 142,392 Commercial, non-real estate 12,970 3,428 Residential real estate 34,501 27,108 Strategic Program loans 70,290 85,850 Commercial real estate 6,149 2,436 Consumer 5,455 4,574 Total loans $ 256,820 $ 265,788 Loans held-for-sale (43,606 ) (60,748 ) Total loans held for investment $ 213,214 $ 205,040 Deferred loan costs (fees), net (761 ) 2,917 Allowance for loan losses (11,968 ) (9,855 ) Net loans $ 200,485 $ 198,102
Strategic Program Loans Retained and Held-for-sale	Strategic Program loans retained and held-for-sale as of September 30, 2022 and December 31, 2021, are summarized as follows: ​ September 30, December 31, ​ 2022 2021 ($ in thousands) Retained Strategic Program loans $ 26,684 $ 25,102 Strategic Program loans held-for-sale 43,606 60,748 Total Strategic Program loans $ 70,290 $ 85,850
Changes in Allowance for Loan Losses	Changes in the ALL are summarized as follows: Three Months Ended September 30, 2022 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 3,384 $ 274 $ 415 $ 6,442 $ 22 $ 65 $ 10,602 Charge-offs (259 ) — — (3,070 ) — (4 ) (3,333 ) Recoveries 9 — — 233 — — 242 Provision for loan losses 675 190 38 3,542 7 5 4,457 Balance at end of period $ 3,809 $ 464 $ 453 $ 7,147 $ 29 $ 66 $ 11,968 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 3,809 $ 464 $ 453 $ 7,147 $ 29 $ 66 $ 11,968 Loans receivable $ 127,455 $ 12,970 $ 34,501 $ 26,684 $ 6,149 $ 5,455 $ 213,214 Ending balance individually evaluated for impairment 95 — — — — 95 Ending balance collectively evaluated for impairment $ 127,360 $ 12,970 $ 34,501 $ 26,684 $ 6,149 $ 5,455 $ 213,119 Nine Months Ended September 30, 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 (392 ) — — (8,508 ) — (4 ) (8,904 ) Recoveries 57 2 — 641 — — 700 Provision for loan losses 1,405 330 101 8,465 8 8 10,317 Balance at end of period $ 3,809 $ 464 $ 453 $ 7,147 $ 29 $ 66 $ 11,968 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 3,809 $ 464 $ 453 $ 7,147 $ 29 $ 66 $ 11,968 Loans receivable $ 127,455 $ 12,970 $ 34,501 $ 26,684 $ 6,149 $ 5,455 $ 213,214 Ending balance individually evaluated for impairment 95 — — — — 95 Ending balance collectively evaluated for impairment $ 127,360 $ 12,970 $ 34,501 $ 26,684 $ 6,149 $ 5,455 $ 213,119 Three Months Ended September 30, 2021 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 977 $ 250 $ 855 $ 5,078 $ 19 $ 60 $ 7,239 Charge-offs (1 ) — — (1,105 ) — — (1,106 ) Recoveries 30 11 — 99 — — 140 Provision for loan losses 149 — — 3,218 — — 3,367 Balance at end of period $ 1,155 $ 261 $ 855 $ 7,290 $ 19 $ 60 $ 9,640 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 1,155 $ 261 $ 855 $ 7,290 $ 19 $ 60 $ 9,640 Loans receivable $ 125,192 $ 3,955 $ 25,105 $ 25,174 $ 2,357 $ 4,729 $ 186,512 Ending balance individually evaluated for impairment 1,079 — — — — — 1,079 Ending balance collectively evaluated for impairment $ 124,113 $ 3,955 $ 25,105 $ 25,174 $ 2,357 $ 4,729 $ 185,433 Nine Months Ended September 30, 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 (55 ) (63 ) — (2,304 ) — (3 ) (2,425 ) Recoveries 41 92 — 196 — 1 330 Provision for loan losses 249 — — 5,287 — — 5,536 Balance at end of period $ 1,155 $ 261 $ 855 $ 7,290 $ 19 $ 60 $ 9,640 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 1,155 $ 261 $ 855 $ 7,290 $ 19 $ 60 $ 9,640 Loans receivable $ 125,192 $ 3,955 $ 25,105 $ 25,174 $ 2,357 $ 4,729 $ 186,512 Ending balance individually evaluated for impairment 1,079 — — — — — 1,079 Ending balance collectively evaluated for impairment $ 124,113 $ 3,955 $ 25,105 $ 25,174 $ 2,357 $ 4,729 $ 185,433
Impaired Loans	The following tables summarize impaired loans as of September 30, 2022 and December 31, 2021: September 30, 2022 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 95 $ 95 $ — $ 534 $ 27 Commercial, non-real estate — — — — — Residential real estate — — — — — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 95 $ 95 $ — $ 534 $ 27 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 September 30, 2022 and December 31, 2021: September 30, 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 $ 127,455 $ — $ — $ — $ — $ — $ 127,455 Commercial, non-real estate 12,970 — — — — — 12,970 Residential real estate 34,178 323 — — 323 — 34,501 Strategic Program loans 67,940 1,281 815 254 2,350 — 70,290 Commercial real estate 6,149 — — — — — 6,149 Consumer 5,448 — 7 — 7 — 5,455 Total $ 254,140 $ 1,604 $ 822 $ 254 $ 2,680 $ — $ 256,820 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 September 30, 2022 and December 31, 2021: September 30, 2022 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 125,611 $ 1,749 $ 95 $ 127,455 Commercial, non-real estate 12,970 — — 12,970 Residential real estate 34,501 — — 34,501 Commercial real estate 6,149 — — 6,149 Consumer 5,455 — — 5,455 Not Risk Graded Strategic Program loans 70,290 Total $ 184,686 $ 1,749 $ 95 $ 256,820 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 $ 177,485 $ 1,481 $ 972 $ 265,788
Loans Modified and Recorded as TDR's	Loans modified and recorded as TDR’s at September 30, 2022 and December 31, 2021, consist of the following: ($ in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment September 30, 2022 SBA 1 $ 95 $ 95 Total at September 30, 2022 1 $ 95 $ 95 December 31, 2021 SBA 2 $ 106 $ 106 Total at December 31, 2021 2 $ 106 $ 106 Non-Accrual SBA 1 $ 25 $ 25

Premises and Equipment (Tables)

Premises and Equipment (Tables)	9 Months Ended
	Sep. 30, 2022
Premises and Equipment [Abstract]
Components of Premises and Equipment	Premises and equipment at September 30, 2022 and December 31, 2021, consist of the following: September 30, December 31, ​ 2022 2021 ($ in thousands) Leasehold improvements $ 36 $ 80 Furniture, fixtures, and equipment 3,756 2,219 Construction in progress 4,808 2,333 Total premises and equipment $ 8,600 $ 4,632 Less accumulated depreciation (1,770 ) (1,347 ) Premises and equipment, net $ 6,830 $ 3,285
Future Minimum Annual Undiscounted Rental Payments for Operating Leases	Future minimum annual undiscounted rental payments for these operating leases are as follows ($ in thousands): Three Months Ended December 31, 2022 $ 263 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 Thereafter 3,355 Total 7,776 Less present value discount (527 ) Operating lease liabilities $ 7,249
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. ​ Nine Months Ended ​ September 30, 2022 Weighted-average remaining lease term – operating leases (in years) 7.0 Weighted-average discount rate – operating leases 1.9 %
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, ​ 2022 2022 ($ in thousands) Operating cash flows from operating leases $ 178 $ 234 Right-of-use assets obtained in exchange for operating lease liabilities — 7,380
Components of Lease Expense	The components of lease expense were as follows (in thousands): ​ Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (in thousands) Operating leases Operating lease cost $ 278 $ 791 Variable lease cost 4 12 Operating lease expense 282 803 Short-term lease rent expense 9 38 Net rent expense $ 291 $ 841

Deposits (Tables)

Deposits (Tables)	9 Months Ended
	Sep. 30, 2022
Deposits [Abstract]
Major Classes of Deposits	Major classes of deposits at September 30, 2022 and December 31, 2021, are as follows: ​ September 30, December 31, ​ 2022 2021 ($ in thousands) Demand $ 152,806 $ 115,947 Savings 7,252 6,685 Money markets 12,281 31,076 Time certificates of deposit 60,499 98,184 Total deposits $ 232,838 $ 251,892
Maturities of Time Deposits	At September 30, 2022, the scheduled maturities of time deposits are as follows ($ in thousands): Year Ended December 31, 2022 $ 6,448 Year Ended December 31, 2023 18,749 Year Ended December 31, 2024 15,490 Year Ended December 31, 2025 10,047 Year Ended December 31, 2026 8,341 Thereafter 1,424 Total 60,499

SBA Servicing Asset (Tables)

SBA Servicing Asset (Tables)	9 Months Ended
	Sep. 30, 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 September 30, For the Nine Months Ended September 30, ($ in thousands) 2022 2021 2022 2021 Beginning balance $ 4,586 $ 3,725 $ 3,938 $ 2,415 Additions to servicing asset 921 714 3,164 2,474 Recovery (Impairment) of SBA servicing asset 127 — (949 ) — Amortization of servicing asset (365 ) (71 ) (884 ) (521 ) Ending balance $ 5,269 $ 4,368 $ 5,269 $ 4,368

Capital Requirements (Tables)

Capital Requirements (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2022 Leverage ratio (CBLR election) $ 85,744 24.9 % $ 31,049 * 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)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingent Liabilities [Abstract]
Financial Instruments with Off-balance Sheet Risk	At September 30, 2022 and December 31, 2021, financial instruments with off-balance-sheet risk were as follows: ​ September 30, December 31, ($ in thousands) 2022 2021 Revolving, open-end lines of credit $ 1,747 $ 1,259 Commercial real estate 19,563 15,402 Other unused commitments 397 377 ​ $ 21,707 $ 17,038

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Stock-Based Compensation [Abstract]
Summary of Assumptions Used	The table below summarizes the assumptions used: ​ For the Nine Months Ended September 30, 2022 2021 Risk-free interest rate 3.10 % 0.4% – 0.7 % Expected term in years 5.5 – 6.5 5.0 – 7.5 Expected volatility 45.8% – 46.7 % 45.7% – 47.6 % Expected dividend yield — —
Stock Option Activity	The following summarizes stock option activity for the three months and nine months ended September 30, 2022: ​ Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at June 30, 2022 925,283 $ 5.29 8.0 $ 4,091,633 Options forfeited (3,859 ) 5.62 — 16,359 Outstanding at September 30, 2022 921,424 $ 5.29 7.7 $ 3,828,066 Options vested and exercisable at September 30, 2022 621,378 $ 4.54 7.5 $ 2,789,615 ​ 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 granted 89,415 13.04 9.9 — Options exercised (16,800 ) 2.37 — 248,312 Options forfeited (13,679 ) 4.20 — 124,874 Outstanding at September 30 2022 921,424 $ 5.29 7.7 $ 3,828,066 Options vested and exercisable at September 30 2022 621,378 $ 4.54 7.5 $ 2,789,615
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 September 30, For the Nine Months Ended September 30, ($ in thousands) 2022 2021 2022 2021 Pre-tax Stock options $ 116 $ 61 $ 209 $ 883 Restricted shares 192 169 238 602 Total $ 308 $ 230 $ 447 $ 1,485 After-tax Stock options $ 116 $ 44 $ 204 $ 757 Restricted shares 192 169 238 800 Total $ 308 $ 213 $ 442 $ 1,557

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value of Financial Instruments [Abstract]
Investment in BFG Activity	The following table summarizes investment in BFG activity for the periods indicated: ​ For the Nine Months Ended September 30, ($ in thousands) 2022 2021 Beginning balance $ 5,900 $ 3,770 Distributions from BFG (492 ) (656 ) Change in fair value of BFG (908 ) 2,127 Ending balance $ 4,500 $ 5,241
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. ​ September 30, 2022 December 31, 2021 ($ in thousands) Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents 1 $ 92,463 $ 92,463 $ 85,754 $ 85,754 Investment securities held-to-maturity 2 13,925 12,358 11,423 11,332 Investment in FHLB stock 2 449 449 378 378 Loans held for investment 3 200,485 220,055 198,102 197,412 Loans held-for-sale 2 43,606 43,601 60,748 60,743 Accrued interest receivable 2 1,672 1,672 1,548 1,548 SBA servicing asset 2 5,269 5,269 3,938 3,938 Investment in BFG 3 4,500 4,500 5,900 5,900 Financial liabilities: Total deposits 2 232,838 203,469 251,892 249,488 Accrued interest payable 2 30 30 48 48 PPP Liquidity Facility 2 345 345 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 September 30 2022 Nonrecurring assets Impaired loans $ 95 $ — $ — $ 95 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 September 30, 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) September 30 2022 Impaired loans $ 95 Market comparable Adjustment to appraisal value 0.05 % ​ December 31, 2021 Impaired loans $ 972 Market comparable Adjustment to appraisal value 0.50 %
Significant Unobservable Inputs Used to Fair Value Investment in BFG on Recurring Asset	The range and weighted average of the significant unobservable inputs used to fair value the investment September 30, 2022 December 31, 2021 ($ in thousands) Range (Weighted Average) Range (Weighted Average) Discounted Cash Flows Revenue growth rate 14.6 % 16.6 % Expense growth rate 14.3 % 16.3 % Discount rate 30.0 % 25.0 % Guideline Public Company Multiples of enterprise value 3.0x to 4.0x 4.0x to 6.0x

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2022 and 2021 ($ in thousands, except share and per share amounts): ​ For the Three Months Ended September 30, For the Nine Months Ended September 30, ($ in thousands) 2022 2021 2022 2021 Numerator: Net income $ 3,654 $ 8,442 $ 18,570 $ 21,472 Amount allocated to participating common shareholders (1) (27 ) (463 ) (139 ) (1,312 ) Net income allocate to common shareholders $ 3,627 $ 7,979 $ 18,431 $ 20,160 Denominator: Weighted average shares outstanding, basic 12,784,298 8,255,953 12,727,555 8,177,575 Weighted average effect of dilutive securities: Stock options 450,038 466,217 542,740 318,926 Warrants 89,723 88,659 134,269 49,000 Weighted average shares outstanding, diluted 13,324,059 8,810,829 13,404,564 8,545,501 Earnings per share, basic $ 0.28 $ 0.97 $ 1.45 $ 2.47 Earnings per share, diluted $ 0.27 $ 0.91 $ 1.37 $ 2.36 (1) Represents earnings attributable to holders of unvested restricted stock issued outside of the 2016 Plan and 2019 Plan to the Company’s employees for the three or nine months ended September 30, 2021.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 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 September 30, For the Nine Months Ended September 30, ($ in thousands) 2022 2021 2022 2021 Interest income Interest income, not-in-scope Interest and fees on loans $ 12,481 $ 13,726 $ 38,501 $ 33,635 Interest on securities 52 7 135 19 Other interest income 290 16 423 36 Total interest income $ 12,823 $ 13,749 $ 39,059 $ 33,690 Non-interest income Non-interest income, in-scope Service charges on deposit accounts $ 8 $ 9 $ 23 $ 22 Strategic Program set up fees 49 28 146 47 Non-interest income, not in-scope Strategic Program fees 5,023 4,731 17,067 11,451 Gain on sale of loans 1,923 2,875 9,387 7,876 SBA loan servicing fees 327 337 1,056 800 Change in fair value on investment in BFG 65 266 (908 ) 2,127 Other miscellaneous income 64 6 98 13 Strategic Program service charges 64 223 767 379 Total non-interest income $ 7,523 $ 8,475 $ 27,636 $ 22,715

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	Sep. 30, 2022	Dec. 31, 2021	Nov. 19, 2021
Nature of Business and Organization [Abstract]
Common stock, shares issued (in shares)			12,864,821	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)					$ 10.5
FinWise Bank [Member]
Nature of Business and Organization [Abstract]
Percentage of business acquired			100%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies, COVID-19 (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
COVID-19 [Abstract]
Principal outstanding	$ 200,485	$ 198,102
PPP Loans [Member]
COVID-19 [Abstract]
Percentage of guaranteed payments by SBA		100%
Forgiveness of loan received from SBA		$ 125,200
Amount of principal payments made	400	300
Principal outstanding	$ 700	$ 1,100
PPP Loans [Member] | Minimum [Member]
COVID-19 [Abstract]
Percentage of loan processing fee	1%
PPP Loans [Member] | Maximum [Member]
COVID-19 [Abstract]
Percentage of loan processing fee	5%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies, Out-of-Period Adjustment (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Out-of-Period Adjustment [Abstract]
Interest and fee on loans and loans receivable, net	$ 12,481		$ 13,726	$ 38,501	$ 33,635
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, Stock Buyback (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Aug. 16, 2022
Stock Buyback [Abstract]
Common stock repurchase program, shares authorized to be purchases (in shares)			644,241
Common stock repurchased (in shares)		20,000
Common stock repurchased, value	$ 214	$ 214

Summary of Significant Accoun_7

Summary of Significant Accounting Policies, Recently adopted accounting pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Recently Adopted Accounting Pronouncements [Abstract]
Assets	$ 385,569	$ 380,214
Liabilities	251,284	$ 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	Sep. 30, 2022	Dec. 31, 2021
Securities held-to-maturity [Abstract]
Amortized cost	$ 13,925	$ 11,423
Estimated fair value	12,358	11,332
Mortgage-Backed Securities [Member]
Securities held-to-maturity [Abstract]
Amortized cost	13,925	11,423
Unrealized gain	0	23
Unrealized loss	(1,567)	(114)
Estimated fair value	$ 12,358	$ 11,332

Investments, Unrealized Loss Po

Investments, Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2022 USD ($) Securities	Dec. 31, 2021 USD ($) Securities
Securities in Unrealized Loss Position [Abstract]
Number of securities in unrealized loss position | Securities	17	9
Mortgage-Backed Securities [Member]
Securities in Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	$ 12,358	$ 8,961
Less Than 12 Months, Unrealized Losses	(1,567)	(114)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	12,358	8,961
Total, Unrealized Losses	$ (1,567)	$ (114)

Investments, Amortized Cost and

Investments, Amortized Cost and Estimated Market Value of Debt Securities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Securities Held-to-Maturity, Amortized Cost [Abstract]
Due in one year or less	$ 0		$ 0
Due after one year through five years	0		0
Due after five years through ten years	3,205		1,541
Due after ten years	10,720		9,882
Amortized cost	13,925		11,423
Securities Held-to-Maturity, Estimated Fair Value [Abstract]
Due in one year or less	0		0
Due after one year through five years	0		0
Due after five years through ten years	3,038		1,548
Due after ten years	9,320		9,784
Estimated fair value	12,358		$ 11,332
Sale of investment securities	0	$ 0
Realized gains or losses	$ 0	$ 0

Investments, FHLB Stock (Detail

Investments, FHLB Stock (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Investments [Abstract]
FHLB stock to be held as percentage of membership asset value	1%
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	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Loans to Major Risk Category [Abstract]
Total loans	$ 256,820		$ 265,788
Loans held-for-sale	(43,606)		(60,748)
Total loans held for investment	213,214		205,040	$ 186,512
Deferred loan costs (fees), net	(761)		2,917
Allowance for loan losses	(11,968)	$ (10,602)	(9,855)	(9,640)	$ (7,239)	$ (6,199)
Net loans	200,485		198,102
Commercial, Non-Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	12,970		3,428
Total loans held for investment	12,970			3,955
Allowance for loan losses	(464)	(274)	(132)	(261)	(250)	(232)
Residential Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	34,501		27,108
Total loans held for investment	34,501			25,105
Allowance for loan losses	(453)	(415)	(352)	(855)	(855)	(855)
Strategic Program Loans [Member]
Loans to Major Risk Category [Abstract]
Total loans	70,290		85,850
Loans held-for-sale	(43,606)		(60,748)
Total loans held for investment	26,684		25,102	25,174
Allowance for loan losses	(7,147)	(6,442)	(6,549)	(7,290)	(5,078)	(4,111)
Commercial Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	6,149		2,436
Total loans held for investment	6,149			2,357
Allowance for loan losses	(29)	(22)	(21)	(19)	(19)	(19)
Consumer [Member]
Loans to Major Risk Category [Abstract]
Total loans	5,455		4,574
Total loans held for investment	5,455			4,729
Allowance for loan losses	(66)	(65)	(62)	(60)	(60)	(62)
SBA [Member]
Loans to Major Risk Category [Abstract]
Total loans	127,455		142,392
Total loans held for investment	127,455			125,192
Allowance for loan losses	$ (3,809)	$ (3,384)	$ (2,739)	$ (1,155)	$ (977)	$ (920)

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses, Strategic Program Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Strategic Program loans retained and held-for-sale [Abstract]
Retained loans	$ 213,214	$ 205,040	$ 186,512
Loans held-for-sale	43,606	60,748
Total loans	256,820	265,788
Strategic Program Loans [Member]
Strategic Program Loans [Abstract]
Cash held in reserve by strategic programs	23,600	39,600
Strategic Program loans retained and held-for-sale [Abstract]
Retained loans	26,684	25,102	$ 25,174
Loans held-for-sale	43,606	60,748
Total loans	$ 70,290	$ 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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 10,602	$ 7,239	$ 9,855	$ 6,199
Charge-offs	(3,333)	(1,106)	(8,904)	(2,425)
Recoveries	242	140	700	330
Provision for loan losses	4,457	3,367	10,317	5,536
Ending balance	11,968	9,640	11,968	9,640
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	11,968	9,640	11,968	9,640
Total loans	213,214	186,512	213,214	186,512	$ 205,040
Ending balance individually evaluated for impairment	95	1,079	95	1,079
Ending balance collectively evaluated for impairment	213,119	185,433	213,119	185,433
Commercial, Non-Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	274	250	132	232
Charge-offs	0	0	0	(63)
Recoveries	0	11	2	92
Provision for loan losses	190	0	330	0
Ending balance	464	261	464	261
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	464	261	464	261
Total loans	12,970	3,955	12,970	3,955
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	12,970	3,955	12,970	3,955
Residential Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	415	855	352	855
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for loan losses	38	0	101	0
Ending balance	453	855	453	855
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	453	855	453	855
Total loans	34,501	25,105	34,501	25,105
Ending balance individually evaluated for impairment		0		0
Ending balance collectively evaluated for impairment	34,501	25,105	34,501	25,105
Strategic Program Loans [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	6,442	5,078	6,549	4,111
Charge-offs	(3,070)	(1,105)	(8,508)	(2,304)
Recoveries	233	99	641	196
Provision for loan losses	3,542	3,218	8,465	5,287
Ending balance	7,147	7,290	7,147	7,290
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	7,147	7,290	7,147	7,290
Total loans	26,684	25,174	26,684	25,174	$ 25,102
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	26,684	25,174	26,684	25,174
Commercial Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	22	19	21	19
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for loan losses	7	0	8	0
Ending balance	29	19	29	19
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	29	19	29	19
Total loans	6,149	2,357	6,149	2,357
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	6,149	2,357	6,149	2,357
Consumer [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	65	60	62	62
Charge-offs	(4)	0	(4)	(3)
Recoveries	0	0	0	1
Provision for loan losses	5	0	8	0
Ending balance	66	60	66	60
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	66	60	66	60
Total loans	5,455	4,729	5,455	4,729
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	5,455	4,729	5,455	4,729
SBA [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	3,384	977	2,739	920
Charge-offs	(259)	(1)	(392)	(55)
Recoveries	9	30	57	41
Provision for loan losses	675	149	1,405	249
Ending balance	3,809	1,155	3,809	1,155
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	3,809	1,155	3,809	1,155
Total loans	127,455	125,192	127,455	125,192
Ending balance individually evaluated for impairment	95	1,079	95	1,079
Ending balance collectively evaluated for impairment	$ 127,360	$ 124,113	$ 127,360	$ 124,113

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	$ 95	$ 972
Unpaid Principal Balance	95	972
Related Allowance	0	0
Average Recorded Investment	534	1,134
Interest Income Recognized	27	47
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	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	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	95	972
Unpaid Principal Balance	95	972
Related Allowance	0	0
Average Recorded Investment	534	945
Interest Income Recognized	$ 27	$ 47

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses, Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Non-accrual and Past Due Loans [Abstract]
Non-accrual	$ 0	$ 657
Total loans	256,820	265,788
Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	254,140	263,079
30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	1,604	1,308
60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	822	690
90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	254	54
Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	2,680	2,052
Commercial, Non-Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	12,970	3,428
Commercial, Non-Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	12,970	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	34,501	27,108
Residential Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	34,178	27,108
Residential Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	323	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	0	0
Residential Real Estate [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	323	0
Strategic Program Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	70,290	85,850
Strategic Program Loans [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	67,940	84,065
Strategic Program Loans [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	1,281	1,041
Strategic Program Loans [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	815	690
Strategic Program Loans [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	254	54
Strategic Program Loans [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	2,350	1,785
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	6,149	2,436
Commercial Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	6,149	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	5,455	4,574
Consumer [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	5,448	4,554
Consumer [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	20
Consumer [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	7	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	7	20
SBA [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	657
Total loans	127,455	142,392
SBA [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	127,455	141,488
SBA [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	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	$ 0	$ 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	Sep. 30, 2022	Dec. 31, 2021
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	$ 256,820	$ 265,788
Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	184,686	177,485
Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	1,749	1,481
Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	95	972
Commercial, Non-Real Estate [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	12,970	3,428
Commercial, Non-Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	12,970	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	34,501	27,108
Residential Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	34,501	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	0	0
Commercial Real Estate [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	6,149	2,436
Commercial Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	6,149	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	5,455	4,574
Consumer [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	5,455	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	70,290	85,850
SBA [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	127,455	142,392
SBA [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	125,611	139,985
SBA [Member] | Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	1,749	1,435
SBA [Member] | Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	$ 95	$ 972

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses, TDR's (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) Loan	Sep. 30, 2021 USD ($) Loan	Sep. 30, 2022 USD ($) Loan Contract	Sep. 30, 2021 USD ($) Loan	Dec. 31, 2021 USD ($) Contract
Loans Modified and Recorded as TDR [Abstract]
Number of contracts | Contract			1		2
Pre-modification outstanding recorded investment			$ 95		$ 106
Post-modification outstanding recorded investment			95		106
Modified Troubled Debt Restructuring [Abstract]
Commitments to lend additional funds to debtors	$ 0		$ 0		$ 0
Number of principal charge-offs related to TDRs | Loan			1
Charge-offs related to TDRs	$ 0	$ 0	$ 10	$ 0
Number of new loans modification | Loan	0	0	0	0
Number of restructured loans | Loan			1	1
SBA [Member]
Loans Modified and Recorded as TDR [Abstract]
Number of contracts | Contract			1		2
Pre-modification outstanding recorded investment			$ 95		$ 106
Post-modification outstanding recorded investment			$ 95		$ 106
Non-Accrual of Troubled Debt Restructuring [Abstract]
Number of contracts | Contract					1
Pre-modification outstanding recorded investment					$ 25
Post-modification outstanding recorded investment					$ 25

Premises and Equipment (Details

Premises and Equipment (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($) Lease	Sep. 30, 2022 USD ($) Lease	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Premises and Equipment [Abstract]
Total premises and equipment	$ 8,600	$ 8,600		$ 4,632
Less accumulated depreciation	(1,770)	(1,770)		(1,347)
Premises and equipment, net	6,830	6,830		3,285
Depreciation expense		500	$ 200
Future Minimum Annual Undiscounted Rental Payments for Operating Leases [Abstract]
Three Months Ended December 31, 2022	263	263
Year Ended December 31, 2023	850	850
Year Ended December 31, 2024	1,104	1,104
Year Ended December 31, 2025	1,086	1,086
Year Ended December 31, 2026	1,118	1,118
Thereafter	3,355	3,355
Total	7,776	7,776
Less present value discount	(527)	(527)
Operating lease liabilities	$ 7,249	$ 7,249		0
Number of leases entered into during period | Lease	1	1
Information Regarding Lease Assets and Liabilities [Abstract]
Weighted-average remaining lease term - operating leases (in years)	7 years	7 years
Weighted-average discount rate - operating leases	1.90%	1.90%
Supplemental Cash Flow Information Related to Leases [Abstract]
Operating cash flows from operating leases	$ 178	$ 234
Right-of-use assets obtained in exchange for operating lease liabilities	0	7,380	0
Components of Lease Expense [Abstract]
Operating leases, operating lease cost	278	791
Operating leases, variable lease cost	4	12
Operating lease expense	282	803
Short-term lease rent expense	9	38
Net rent expense	291	841	$ 400
Leasehold Improvements [Member]
Premises and Equipment [Abstract]
Total premises and equipment	36	36		80
Furniture, Fixtures and Equipment [Member]
Premises and Equipment [Abstract]
Total premises and equipment	3,756	3,756		2,219
Construction in Progress [Member]
Premises and Equipment [Abstract]
Total premises and equipment	$ 4,808	$ 4,808		$ 2,333

Deposits (Details)

Deposits (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Major classes of deposits [Abstract]
Demand	$ 152,806,000	$ 115,947,000
Savings	7,252,000	6,685,000
Money markets	12,281,000	31,076,000
Time certificates of deposit	60,499,000	98,184,000
Total deposits	232,838,000	251,892,000
Maturities of time deposits [Abstract]
Year Ended December 31, 2022	6,448,000
Year Ended December 31, 2023	18,749,000
Year Ended December 31, 2024	15,490,000
Year Ended December 31, 2025	10,047,000
Year Ended December 31, 2026	8,341,000
Thereafter	1,424,000
Total	60,499,000	98,184,000
FDIC insurance limit on deposit accounts	250,000	250,000
Time deposits equal or greater than FDIC insurance limits	$ 4,800,000	$ 3,700,000

SBA Servicing Asset (Details)

SBA Servicing Asset (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
SBA Servicing Asset [Abstract]
SBA loans serviced for others	$ 295,800		$ 295,800		$ 210,200
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning balance	4,586	$ 3,725	3,938	$ 2,415	2,415
Additions to servicing asset	921	714	3,164	2,474
Recovery (Impairment) of SBA servicing asset	127	0	(949)	0
Amortization of servicing asset	(365)	(71)	(884)	(521)
Ending balance	5,269	$ 4,368	5,269	$ 4,368	3,938
Fair market value of SBA servicing asset	$ 5,300		$ 5,300		$ 3,900
Weighted average prepayment rate			14.46%		14.37%
Weighted average term			4 years 3 months 25 days		4 years 7 days
Weighted average discount rate			14.07%		11.38%

Capital Requirements, Actual Ca

Capital Requirements, Actual Capital Amounts and Ratios (Details) $ in Thousands		Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Leverage Ratio (CBLR Election), Amount [Abstract]
Actual Amount		$ 85,744	$ 65,503
Well-Capitalized Requirement Amount	[1]	$ 31,049	$ 31,442
Leverage Ratio (CBLR Election), Ratio [Abstract]
Actual Ratio		0.249	0.177
Well Capitalized Requirement Ratio		0.09	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	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Apr. 20, 2020
Federal Home Loan Bank Secured Line of Credit [Abstract]
Outstanding line of credit	$ 345		$ 1,050
Paycheck Protection Program Liquidity Facility [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Line of credit to borrow in overnight funds	300		1,000
Borrowings Fixed-rate of interest				0.35%
Average outstanding borrowings	600	$ 48,100
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	10,100		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	3,200		4,100
Outstanding line of credit	0		0
Loans pledged to secure line of credit	$ 4,900		$ 5,400

Commitments and Contingent Li_4

Commitments and Contingent Liabilities, Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	$ 21,707	$ 17,038
Commercial Real Estate [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	19,563	15,402
Revolving, Open-End Lines of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	1,747	1,259
Other Unused Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	$ 397	$ 377

Investment in Business Fundin_2

Investment in Business Funding Group, LLC (Details) $ / shares in Units, $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2021 USD ($)	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2021 $ / shares	Mar. 31, 2020 $ / shares shares
Investment in Business Funding Group, LLC [Abstract]
Common stock, par value (in dollars per share)	$ 0.001			$ 0.001
Business Funding Group, LLC [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest	10%		10%
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%
Distributions received | $	$ 0.5	$ 0.7
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
Business Funding Group, LLC [Member] | Minimum [Member]
Investment in Business Funding Group, LLC [Abstract]
Earnings multiplier					10
Business Funding Group, LLC [Member] | Maximum [Member]
Investment in Business Funding Group, LLC [Abstract]
Earnings multiplier					15
Business Funding Group, LLC [Member] | Class A Voting Units [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest			4.96%
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) - USD ($) $ in Millions					9 Months Ended	12 Months Ended
	Jun. 09, 2022	Nov. 18, 2021	Apr. 06, 2020	Dec. 24, 2019	Sep. 30, 2022	Dec. 31, 2019	Dec. 31, 2018	Apr. 19, 2022
Other Stock-Based Compensation [Abstract]
Stock repurchases (in shares)					20,000
2019 Plan [Member] | Employee [Member]
Stock-Based Compensation [Abstract]
Number of shares authorized for issuance (in shares)					1,280,000			500,000
Future awards life					10 years
Number of shares available for grant (in shares)					648,197
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)					894
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]
Stock-Based Compensation [Abstract]
Vesting period					3 years
Other Stock-Based Compensation [Abstract]
Number of restricted shares granted (in shares)	96,011			1,072,746
Aggregate fair value	$ 1.3
Awards vested (in shares)		424,458	73,770			351,852

Stock-Based Compensation, Assum

Stock-Based Compensation, Assumptions Used in Option-pricing Model for Stock Options (Details) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Summary of Assumptions Used [Abstract]
Risk-free interest rate	3.10%
Expected dividend yield	0%	0%
Minimum [Member]
Summary of Assumptions Used [Abstract]
Risk-free interest rate		0.40%
Expected term in years	5 years 6 months	5 years
Expected volatility	45.80%	45.70%
Maximum [Member]
Summary of Assumptions Used [Abstract]
Risk-free interest rate		0.70%
Expected term in years	6 years 6 months	7 years 6 months
Expected volatility	46.70%	47.60%

Stock-Based Compensation, Stock

Stock-Based Compensation, Stock Option Activity (Details) - USD ($)	3 Months Ended	6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Aggregate Intrinsic Value [Abstract]
Proceeds from exercise of stock options			$ 40,000	$ 309,000
Stock Options [Member]
Stock Options [Roll Forward]
Outstanding, beginning of year (in shares)	925,283	862,488	862,488
Option granted (in shares)			89,415
Options exercised (in shares)			(16,800)
Options forfeited (in shares)	(3,859)		(13,679)
Outstanding, end of period (in shares)	921,424	925,283	921,424		862,488
Options vested and exercisable, end of period (in shares)	621,378		621,378
Weighted Average Exercise Price [Abstract]
Outstanding, beginning of year (in dollars per share)	$ 5.29	$ 4.41	$ 4.41
Options granted (in dollars per share)			13.04
Options exercised (in dollars per share)			2.37
Options forfeited (in dollars per share)	5.62		4.2
Outstanding, end of period (in dollars per share)	5.29	$ 5.29	5.29		$ 4.41
Options vested and exercisable, end of period (in dollars per share)	$ 4.54		$ 4.54
Weighted Average Remaining Contractual Life [Abstract]
Outstanding	7 years 8 months 12 days	8 years	7 years 8 months 12 days		8 years 2 months 12 days
Options granted			9 years 10 months 24 days
Options vested and exercisable	7 years 6 months		7 years 6 months
Aggregate Intrinsic Value [Abstract]
Outstanding, beginning of year	$ 4,091,633	$ 8,088,660	$ 8,088,660
Options granted			0
Options exercised			248,312	$ 500,000
Options forfeited	16,359		124,874
Outstanding, end of period	3,828,066	$ 4,091,633	3,828,066		$ 8,088,660
Options vested and exercisable	$ 2,789,615		$ 2,789,615
Weighted average grant-date fair value of options granted (in dollars per share)			$ 6.26	$ 1.48
Proceeds from exercise of stock options				$ 300,000

Stock-Based Compensation, Sto_2

Stock-Based Compensation, Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	$ 308	$ 230	$ 447	$ 1,485
After-tax stock-based compensation expense	308	213	$ 442	1,557
Remaining weighted average recognition period			1 year 10 months 24 days
Stock Options [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	116	61	$ 209	883
After-tax stock-based compensation expense	116	44	204	757
Unrecognized stock-based compensation expense	600		600
Restricted Shares [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	192	169	238	602
After-tax stock-based compensation expense	192	$ 169	238	$ 800
Unrecognized stock-based compensation expense	$ 1,000		$ 1,000
Remaining weighted average recognition period			1 year 9 months 18 days

Fair Value of Financial Instr_3

Fair Value of Financial Instruments, Investment in BFG Activity (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2019
Investment in BFG Activity [Abstract]
Beginning balance			$ 5,900	$ 3,770
Distributions from BFG			(492)	(656)
Change in fair value of BFG	$ 65	$ 266	(908)	2,127
Beginning balance	$ 4,500	$ 5,241	$ 4,500	$ 5,241
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					0.045

Fair Value of Financial Instr_4

Fair Value of Financial Instruments, Estimated Fair Value and Carrying Value of Financial Instrument (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Financial assets [Abstract]
Investment securities held-to-maturity	$ 12,358	$ 11,332
SBA servicing asset	5,300	3,900
Investment in BFG	4,500	5,900	$ 5,241	$ 3,770
Level 1 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash and cash equivalents	92,463	85,754
Level 1 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	92,463	85,754
Level 2 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Investment securities held-to-maturity	13,925	11,423
Investment in FHLB stock	449	378
Loans held-for-sale	43,606	60,748
Accrued interest receivable	1,672	1,548
SBA servicing asset	5,269	3,938
Financial liabilities [Abstract]
Total deposits	232,838	251,892
Accrued interest payable	30	48
PPP Liquidity Facility	345	1,050
Level 2 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Investment securities held-to-maturity	12,358	11,332
Investment in FHLB stock	449	378
Loans held-for-sale	43,601	60,743
Accrued interest receivable	1,672	1,548
SBA servicing asset	5,269	3,938
Financial liabilities [Abstract]
Total deposits	203,469	249,488
Accrued interest payable	30	48
PPP Liquidity Facility	345	1,050
Level 3 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Loans held for investment	200,485	198,102
Investment in BFG	4,500	5,900
Level 3 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Loans held for investment	220,055	197,412
Investment in BFG	$ 4,500	$ 5,900

Fair Value of Financial Instr_5

Fair Value of Financial Instruments, Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Level 3 [Member]
Nonrecurring assets [Abstract]
Impaired loans	$ 95	$ 972
Nonrecurring Basis [Member]
Nonrecurring assets [Abstract]
Impaired loans	95	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	$ 95	$ 972

Fair Value of Financial Instr_6

Fair Value of Financial Instruments, Quantitative Information for Level 3 Fair Value Measurements (Details) - Level 3 [Member] $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans	$ 95	$ 972
Market Comparable [Member] | Adjustment to Appraisal Value [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, measurement input	0.0005	0.005

Fair Value of Financial Instr_7

Fair Value of Financial Instruments, Investment in BFG Level 3 Recurring Asset (Details)	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2019
Discount Rate [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input			0.045
Discounted Cash Flow [Member] | Level 3 [Member] | Revenue Growth Rate [Member] | Recurring [Member] | Weighted Average [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input	0.146	0.166
Discounted Cash Flow [Member] | Level 3 [Member] | Expense Growth Rate [Member] | Recurring [Member] | Weighted Average [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input	0.143	0.163
Discounted Cash Flow [Member] | Level 3 [Member] | Discount Rate [Member] | Recurring [Member] | Weighted Average [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input	0.30	0.25
Guideline Public Company [Member] | Level 3 [Member] | Multiples of Enterprise Value [Member] | Recurring [Member] | Minimum [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input	3	4
Guideline Public Company [Member] | Level 3 [Member] | Multiples of Enterprise Value [Member] | Recurring [Member] | Maximum [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input	4	6

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Taxes [Abstract]
Increase in deferred tax assets			$ 341	$ 1,145
Income tax expense	$ 3,462	$ 2,738	$ 8,462	$ 7,273
Effective income tax rate			31.30%	25.30%
Statutory rate			24.90%	24.90%
Unrecognized tax benefits	0		$ 0
After-tax income	3,654	$ 8,442	18,570	$ 21,472
Out-of-Period Adjustment [Member]
Income Taxes [Abstract]
After-tax income	$ (1,400)		$ (900)

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Millions	Oct. 21, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2019
Related Parties [Abstract]
Loans outstanding to related parties		$ 0	$ 0
Deposits		$ 1	$ 0.5
BFG [Member]
Equity Method Investments [Abstract]
Membership interest		10%		10%
Subsequent Event [Member] | Mr. Alan Weichselbaum [Member]
Related Parties [Abstract]
Proceeds from collection of promissory note to related party	$ 0.1

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator [Abstract]
Net income		$ 3,654	$ 8,442	$ 18,570	$ 21,472
Amount allocated to participating common shareholders	[1]	(27)	(463)	(139)	(1,312)
Net income allocate to common shareholders		$ 3,627	$ 7,979	$ 18,431	$ 20,160
Denominator [Abstract]
Weighted average shares outstanding, basic (in shares)		12,784,298	8,255,953	12,727,555	8,177,575
Weighted average effect of dilutive securities [Abstract]
Stock options (in shares)		450,038	466,217	542,740	318,926
Warrants (in shares)		89,723	88,659	134,269	49,000
Weighted average shares outstanding, diluted (in shares)		13,324,059	8,810,829	13,404,564	8,545,501
Earnings per share, basic (in dollars per share)		$ 0.28	$ 0.97	$ 1.45	$ 2.47
Earnings per share, diluted (in dollars per share)		$ 0.27	$ 0.91	$ 1.37	$ 2.36
Options [Member]
Weighted average effect of dilutive securities [Abstract]
Anti-dilutive securities excluded from earnings per share (in shares)				378,684	563,062
Warrants [Member]
Weighted average effect of dilutive securities [Abstract]
Anti-dilutive securities excluded from earnings per share (in shares)				135,731	221,000
[1]Represents earnings attributable to holders of unvested restricted stock issued outside of the 2016 Plan and 2019 Plan to the Company’s employees for the three or nine months ended September 30, 2021.

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income, not-in-scope [Abstract]
Interest and fees on loans	$ 12,481	$ 13,726	$ 38,501	$ 33,635
Interest on securities	52	7	135	19
Other interest income	290	16	423	36
Total interest income	12,823	13,749	39,059	33,690
Non-interest income [Abstract]
Total non-interest income	7,523	8,475	27,636	22,715
Service Charges on Deposit Accounts [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	8	9	23	22
Strategic Program Set Up Fees [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	49	28	146	47
Strategic Program Fees [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	5,023	4,731	17,067	11,451
Gain on Sale of Loans [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	1,923	2,875	9,387	7,876
SBA Loan Servicing Fees [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	327	337	1,056	800
Change in Fair Value on Investment in BFG [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	65	266	(908)	2,127
Other Miscellaneous Income [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	64	6	98	13
Strategic Program Service Charges [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	$ 64	$ 223	$ 767	$ 379