FinWise Bancorp (FINW) 10-K 30 Mar 23 2022 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Mar. 27, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 97.3
Entity Common Stock, Shares Outstanding		12,824,572
Auditor Firm ID	173
Auditor Name	Moss Adams LLP
Auditor Location	Spokane, Washington

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Cash and cash equivalents
Cash and due from banks	$ 386	$ 411
Interest-bearing deposits	100,181	85,343
Total cash and cash equivalents	100,567	85,754
Investment securities held-to-maturity, at cost	14,292	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	23,589	60,748
Loans receivable, net	224,217	198,102
Premises and equipment, net	9,478	3,285
Accrued interest receivable	1,818	1,548
Deferred taxes, net	1,167	1,823
SBA servicing asset, net	5,210	3,938
Investment in Business Funding Group (BFG), at fair value	4,800	5,900
Operating lease right-of-use ("ROU") assets	5,041	0
Other assets	10,152	7,315
Total assets	400,780	380,214
Deposits
Noninterest bearing	78,817	110,548
Interest-bearing	164,181	141,344
Total deposits	242,998	251,892
Accrued interest payable	54	48
Income taxes payable	1,077	233
PPP Liquidity Facility	314	1,050
Operating lease liabilities	7,020	0
Other liabilities	8,858	11,549
Total liabilities	260,321	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 December 31, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value, 40,000,000 shares authorized; 12,831,345 and 12,772,010 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively	13	13
Additional paid-in-capital	54,614	54,836
Retained earnings	85,832	60,593
Total shareholders' equity	140,459	115,442
Total liabilities and shareholders' equity	$ 400,780	$ 380,214

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
LIABILITIES AND SHAREHOLDERS' EQUITY
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	12,831,345	12,772,010
Common stock, shares outstanding (in shares)	12,831,345	12,772,010

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Interest income
Interest and fees on loans	$ 50,941	$ 49,135
Interest on securities	208	47
Other interest income	1,180	61
Total interest income	52,329	49,243
Interest expense
Interest on deposits	1,432	1,138
Interest on PPP Liquidity Facility	2	127
Total interest expense	1,434	1,265
Net interest income	50,895	47,978
Provision for loan losses	13,519	8,039
Net interest income after provision for loan losses	37,376	39,939
Non-interest income
Strategic Program fees	22,467	17,959
Gain on sale of loans, net	13,550	9,689
SBA loan servicing fees	1,603	1,156
Change in fair value on investment in BFG	(478)	2,991
Other miscellaneous income	269	49
Total non-interest income	37,411	31,844
Non-interest expense
Salaries and employee benefits	24,489	21,744
Professional services	5,454	1,670
Occupancy and equipment expenses	2,204	882
Impairment of SBA servicing asset	1,728	800
Other operating expenses	4,881	4,415
Total non-interest expense	38,756	29,511
Income before income tax expense	36,031	42,272
Provision for income taxes	10,916	10,689
Net income	$ 25,115	$ 31,583
Earnings per share, basic (in dollars per share)	$ 1.96	$ 3.44
Earnings per share, diluted (in dollars per share)	$ 1.87	$ 3.27
Weighted average shares outstanding, basic (in shares)	12,729,898	8,669,724
Weighted average shares outstanding, diluted (in shares)	13,357,022	9,108,163

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - 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	2,100	0	2,100
Issuance of common stock	$ 4	35,572	0	35,576
Issuance of common stock (in shares)	4,025,000
Stock options exercised	$ 0	311	0	311
Stock options exercised (in shares)	86,676
Net income	$ 0	0	31,583	31,583
Ending balance at Dec. 31, 2021	$ 13	54,836	60,593	115,442
Ending balance (in shares) at Dec. 31, 2021	12,772,010
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	778	0	778
Stock-based compensation expense (in shares)	123,055
Stock options exercised	$ 0	260	0	260
Stock options exercised (in shares)	56,280
Repurchase of common stock	$ 0	(1,260)	124	$ (1,136)
Repurchase of common stock (in shares)	(120,000,000)			(120,000)
Net income	$ 0	0	25,115	$ 25,115
Ending balance at Dec. 31, 2022	$ 13	$ 54,614	$ 85,832	$ 140,459
Ending balance (in shares) at Dec. 31, 2022	12,831,345

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 25,115	$ 31,583
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization	2,107	1,038
Provision for loan losses	13,519	8,039
Noncash operating lease cost	2,339	0
Net amortization in securities discounts and premiums	28	25
Capitalized servicing assets	(4,087)	(3,048)
Capitalized loan trailing fee asset	(2,347)	0
Gain on sale of SBA loans, net	(13,550)	(9,689)
Originations of Strategic Program loans held-for-sale	(6,974,133)	(6,335,194)
Proceeds on Strategic Program loans held-for-sale	7,011,292	6,295,394
Change in fair value of BFG	478	(2,991)
Impairment of SBA servicing asset	1,728	800
Stock-based compensation expense	778	2,100
Deferred income tax benefit (expense)	656	(1,371)
Net changes in:
Accrued interest receivable	(270)	81
Accrued interest payable	6	(147)
Other assets	(299)	(1,669)
Operating lease liabilities	(360)	0
Other liabilities	(1,847)	5,817
Net cash provided by (used in) operating activities	61,153	(9,232)
Cash flows from investing activities:
Net increase (decrease) in loans receivable	(17,330)	41,622
Purchase of loan pools	(8,754)	(6,000)
Investments in FinWise Investments, LLC	(191)	(80)
Distributions from BFG	622	861
Purchase of bank premises and equipment	(7,213)	(2,334)
Proceeds from maturities and paydowns of securities held-to-maturity	1,954	678
Purchases of securities held to maturity	(4,851)	(10,317)
Purchase of FHLB stock	(71)	(173)
Net cash provided by (used in) investing activities	(35,834)	24,257
Cash flows from financing activities:
Net increase (decrease) in deposits	(8,894)	87,416
Proceeds from initial public offering, net	0	35,576
Common stock repurchased	(1,136)	0
Proceeds from exercise of stock options	260	311
Proceeds from PPP Liquidity Facility	0	5,558
Repayment of PPP Liquidity Facility	(736)	(105,515)
Net cash provided by (used in) financing activities	(10,506)	23,346
Net change in cash and cash equivalents	14,813	38,371
Cash and cash equivalents, beginning of the period	85,754	47,383
Cash and cash equivalents, end of the period	100,567	85,754
Cash paid during the period
Income taxes	9,360	10,473
Interest	1,428	1,412
Supplemental disclosures of noncash activities:
Operating cash flows from operating leases	1,928	0
Right-of-use assets obtained in exchange for operating lease liabilities	$ 7,380	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies Nature of business and organization – On July 15, 2021, the Company publicly filed a Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with its Initial Public Offering (“IPO”) (the “Registration Statement”), which was subsequently amended on July 30, 2021, August 4, 2021, November 1, 2021, and November 16, 2021. The Registration Statement was declared effective by the SEC on November 18, 2021. In connection with the IPO, the Company issued 4,025,000 shares of common stock, par value of $0.001, which included 525,000 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $10.50 per share and began trading on the Nasdaq Stock Market LLC on November 19, 2021. On November 23, 2021, the closing date of the IPO, the Company received total net proceeds of $39.3 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $35.6 million. The Bank is an independent bank that provides a full range of banking services to individual and corporate customers. The Bank’s primary source of revenue is from loans including Small Business Administration (SBA), commercial, commercial real estate, residential real estate, and consumer. The Bank also has established Strategic Programs with various third-party loan origination platforms that use technology to streamline the origination of unsecured consumer and secured or unsecured business loans to borrowers within certain approved credit profiles. The Bank earns monthly program fees based on the volume of loans originated in these Strategic Programs, as well as interest during the time the Bank holds the loans. The Company is subject to competition from other financial institutions and to the regulations of certain federal and state agencies and undergoes periodic examinations by those agencies. Stock split and changes in authorized shares – Significant concentrations of credit risk Ongoing analysis of the Company’s loan portfolio is performed to evaluate whether there is any significant exposure to an individual borrower or group(s) of borrowers as a result of any concentrations of credit risk. Such credit risks (whether on- or off-balance sheet) may occur when groups of borrowers or counterparties have similar economic characteristics and are similarly affected by changes in economic or other conditions. Credit risk also includes the loss that would be recognized subsequent to the reporting date if counterparties failed to perform as contracted. As of December 31, 2022 and 2021, the Company analyzed its exposure to credit risks and concluded that no significant exposure exists from such concentrations of credit risks. Paycheck Protection Program – de minimis Principles of consolidation Out-of-period adjustments During the third quarter of 2022, the Company identified an error in the calculation of the Company’s tax provision which understated income tax expense for previously reported financial statements. The error was related to an incorrect application of Section 162(m) of the Internal Revenue Code, which limits tax deductions relating to executive compensation of certain executives of publicly held companies. The Company recorded an out-of-period adjustment during the third quarter of 2022 to correct the previously understated income tax expense. The adjustment resulted in a decrease to after-tax income of $(0.9) million for the year ended December 31, 2022. The impact associated with this correction was not considered material to the interim unaudited consolidated financial statements for the three months ended September 30, 2022, year ended December 31, 2022, or the financial statements of any previously filed interim or annual periods. During the fourth quarter of 2022, the Company established a new loan trailing fee asset which is included in “Other assets” on the Consolidated Balance Sheets of approximately $2.3 million and recognized $2.1 million in gain on sale of loans ($1.5 million net of tax) as an out-of-period adjustment of which $1.2 million ($0.9 million net of tax) would have been recorded in the first three quarters of 2022 with the remaining $0.9 million ($0.6 million net of tax) associated with years prior to 2022. Before this correction, the loan trailing fees had been recognized in revenue during the month payment was owed by the Strategic Program rather than as a gain to be recognized upon sale of the loan receivables. The impact associated with this correction was not considered material to the interim unaudited consolidated financial statements for the three months ended December 31, 2022, year ended December 31, 2022, or the financial statements of any previously filed interim or annual periods. Use of estimates Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses (ALL), the determination of the fair value of certain financial instruments, deferred income tax assets and stock-based compensation. Management believes the ALL is adequate. While management uses currently available information to recognize losses on loans, future additions to the allowance may be necessary based on economic conditions and individual credit deterioration. Reclassifications Cash and cash equivalents The Company maintains its cash in deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Investments Investment securities When the estimated fair value of a security is lower than the book value, a security is considered temporarily impaired. On a quarterly basis, the Company evaluates any securities in a loss position to determine whether the impairment is other-than-temporary. If there is intent to sell the security, or if the Company will be required to sell the security, or if the Company believes it will not recover the entire cost basis of the security, the security is other-than-temporarily impaired (“OTTI”) and impairment is recognized. The amount of impairment resulting from credit loss is recognized in earnings and impairment related to all other factors, such as general market conditions, is recognized in AOCI in the case of securities classified as available for sale. Management considers a number of factors in its analysis of whether a decline in a security’s estimated fair value is OTTI. Certain factors considered include, but are not limited to: (a) the length of time and the extent to which the security has been in an unrealized loss position, (b) changes in the financial condition of the issuer, (c) the payment structure of debt securities, (d) adverse changes in ratings issued by rating agencies, (e) and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Purchased premiums and discounts on debt securities are amortized or accreted over the terms of the securities using the effective-yield method. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Equity method investments – Investment in Federal Home Loan Bank (“FHLB”) stock Loans held-for-sale Loans receivable The Company requires most loans to be substantially collateralized by real estate, equipment, vehicles, accounts receivable, inventories or other tangible or intangible assets. Real estate collateral is in the form of first and second mortgages on various types of property. The Company also originates unsecured loans to consumers and businesses. The Company may change intent from holding loans for investment and reclassify them as held-for-sale. Loans held-for-sale are carried at the lower of aggregate cost and fair value. Gains and losses are recorded in non-interest income based on the difference between sales proceeds and carrying value. Allowance for loan losses The ALL represents the Company’s estimate of probable and estimable losses inherent to the loan portfolio as of the balance sheet date. Losses are charged to the ALL when recognized. Generally, loans are charged off or charged down at the point at which they are determined to be uncollectible in whole or in part unless the loan is well secured and in the process of collection. The Company establishes the amount of the ALL by loan type, at least quarterly, and the Company adjusts the provision for loan losses so the ALL is at an appropriate level at the balance sheet date. The Company determines ALL as the best estimate within a range of estimated losses. The methodologies the Company uses to estimate the ALL depend upon the impairment status and risk category of the loan. After applying historic loss experience, as described above, the Company reviews the quantitatively derived level of ALL for each category using qualitative criteria. The Company tracks various risk factors that influence the judgment regarding the level of the ALL across the risk categories. Risk factors include changes in national, regional, and local economic conditions that affect the borrowers’ business, delinquency, and charge off trends, and data from peer groups, among others. The Company reviews changes in these factors to ensure that changes in the level of the ALL are directionally consistent with changes in these factors. Nonaccrual loans Impaired loans Troubled debt restructurings (TDR) The Company considers many factors in determining whether to agree to a loan modification involving concessions, and seeks a solution that will both minimize potential loss to the Company and attempt to help the borrower. The Company evaluates borrowers’ current and forecasted future cash flows, their ability and willingness to make current contractual or proposed modified payments, the value of the underlying collateral, the possibility of obtaining additional security or guarantees, and the potential costs related to a repossession or foreclosure and the subsequent sale of the collateral. TDRs may be classified as either accrual or nonaccrual loans. A loan on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower has proven the ability to perform under the modified structure for a minimum of six months, and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the restructuring, or significant events that coincide with the restructuring, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of restructuring or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. Premises and equipment, net Leases Leases (Topic 842) Income taxes Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial statements. Transfer of financial assets SBA servicing asset, net The SBA servicing asset is evaluated annually for impairment based on the fair value of the asset as compared to amortized cost. Capitalized servicing rights are stated separately on the consolidated balance sheet and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing fee income, which is reported in the consolidated statements of income in SBA loan servicing fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of servicing assets and changes in the valuation allowance are netted against loan servicing income. Revenue from contracts with customers Revenue from Contracts with Customers Stock-based compensation – The Company accounts for all stock-based awards to employees and non-employees, including grants of stock options and restricted stock awards, based on their respective grant date fair values. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model. Restricted stock awards are valued based on the fair value of the Company’s common stock on the date of grant. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. The Company expenses stock-based compensation related to stock options and restricted stock over the requisite service period. The Company accounts for forfeitures of stock–based awards as they occur. Stock-based compensation expense pertaining to employees is included in salaries and employee benefits on the income statement. Stock-based compensation expense related to directors and consultants is included in other operating expenses on the income statement. The table below summarizes the weighted average assumptions used in determining the Black-Scholes option pricing model for options granted during 2022 and 2021: ​ 2022 2021 Risk-free interest rate 3.10 % 0.4% - 1.3 % 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 - - Earnings per share (“EPS”) The two-class method is used to determine earnings per share based on participation rights of participating securities in any undistributed earnings. Each unvested restricted share granted by the Company to its employees that includes rights to participate in distributed earnings is considered a participating security and the Company uses the two-class method to calculate net income available to the Company’s common shareholders per common share – basic and diluted. Stock Repurchase Program – On August 18, 2022, the Company announced that its Board of Directors (the “Board”) has authorized, effective August 16, 2022, a common stock repurchase program to purchase up to 644,241 shares of the Company’s common stock in the aggregate. The repurchase program expires on August 31, 2024 but may be limited or terminated at any time without prior notice. The repurchase program authorizes the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or privately negotiated transactions. The authorization permits management to repurchase shares of the Company’s common stock from time to time at management’s discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The actual means and timing of any shares purchased under the program will depend on a variety of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares. The Company has repurchased 120,000 shares for approximately $1.1 million as of December 31, 2022 and retired them at cost. Off-balance sheet instruments Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral. Segment reporting Recent accounting pronouncements 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

Investments

Investments	12 Months Ended
	Dec. 31, 2022
Investments [Abstract]
Investments	Note 2 – Investments Investment securities held-to-maturity, at cost The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at December 31, 2022 and 2021, are summarized as follows: ​ December 31, 2022 ($ in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Mortgage-backed securities $ 14,292 $ 5 $ (1,569 ) $ 12,728 ​ 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 December 31, 2022, nine in an unrealized loss at December 31, 2021. ​ December 31, 2022 Less than 12 months 12 Months or More Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 5,126 $ (286 ) $ 6,671 $ (1,283 ) $ 11,797 $ (1,569 ) 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 December 31, 2022 and 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. December 31, 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 3,388 3,202 1,541 1,548 Due after ten years 10,904 9,526 9,882 9,784 ​Total Securities held-to-maturity $ 14,292 $ 12,728 $ 11,423 $ 11,332 At December 31, 2022, held-to-maturity securities in the amount of $12.4 million were pledged to the Federal Reserve Bank of San Francisco 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 years ended December 31, 2022 or 2021. FHLB stock The Bank is a member of the FHLB system. Members are required to own FHLB stock of at least the greater of 1% of FHLB membership asset value or 4.0% of outstanding FHLB advances. At December 31, 2022 and 2021, the Bank owned $0.4 million and $0.4 million, respectively, of FHLB stock, which is carried at cost. The Company evaluated the carrying value of its FHLB stock investment at December 31, 2022 and determined that it was not impaired. This evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB, repurchase activity of excess stock by the FHLB at its carrying value, the return on the investment from recurring and special dividends, and the Company’s intent and ability to hold this investment for a period of time sufficient to recover our recorded investment.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2022
Loans and Allowance for Loan Losses [Abstract]
Loans and Allowance for Loan Losses	Note 3 – Loans and Allowance for Loan Losses Loans are summarized as follows according to major risk category as of December 31, 2022 and 2021: ​ December 31, ​ 2022 2021 ($ in thousands) SBA $ 145,172 $ 142,392 Commercial, non-real estate 11,484 3,428 Residential real estate 37,815 27,108 Strategic Program loans 47,848 85,850 Commercial real estate 12,063 2,436 Consumer 5,808 4,574 Total loans $ 260,190 $ 265,788 Loans held-for-sale (23,589 ) (60,748 ) Total loans held for investment $ 236,601 $ 205,040 Deferred loan costs (fees), net (399 ) 2,917 Allowance for loan losses (11,985 ) (9,855 ) Net loans $ 224,217 $ 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 reserve account deposit balance does not fall below an agreed upon dollar or percentage threshold related to the total loans currently outstanding as held for sale by the Company for the specific Strategic Program. If necessary, the Company has the right to withdraw amounts from the reserve account to fulfill loan purchaser obligations created under the program agreements. Total cash held in reserve by Strategic Programs at the Company at December 31, 2022 and 2021, was $16.6 million and $39.6 million, respectively. Strategic Program loans retained and held-for-sale as of December 31, 2022 and 2021, are summarized as follows: ​ December 31, ​ 2022 2021 ($ in thousands) Retained Strategic Program loans $ 24,259 $ 25,102 Strategic Program loans held-for-sale 23,589 60,748 Total Strategic Program loans $ 47,848 $ 85,850 Changes in the ALL are summarized as follows: December 31, 2022 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 2,739 $ 132 $ 352 $ 6,549 $ 21 $ 62 $ 9,855 Charge-offs (392 ) — — (11,948 ) — (66 ) (12,406 ) Recoveries 66 2 — 885 — 64 1,017 Provision for loan and lease losses 1,881 267 145 11,215 6 5 13,519 Balance at end of year $ 4,294 $ 401 $ 497 $ 6,701 $ 27 $ 65 $ 11,985 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 4,294 $ 401 $ 497 $ 6,701 $ 27 $ 65 $ 11,985 Loans receivable $ 145,172 $ 11,484 $ 37,815 $ 24,259 $ 12,063 $ 5,808 $ 236,601 Ending balance individually evaluated for impairment 450 — — — — — 450 Ending balance collectively evaluated for impairment $ 144,722 $ 11,484 $ 37,815 $ 24,259 $ 12,063 $ 5,808 $ 236,151 December 31, 2021 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 920 $ 232 $ 855 $ 4,111 $ 19 $ 62 $ 6,199 Charge-offs (154 ) (63 ) — (4,684 ) — (4 ) (4,905 ) Recoveries 46 103 — 372 — 1 522 Provision (recapture) for loan and lease losses 1,927 (140 ) (503 ) 6,750 2 3 8,039 Balance at end of year $ 2,739 $ 132 $ 352 $ 6,549 $ 21 $ 62 $ 9,855 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 2,739 $ 132 $ 352 $ 6,549 $ 21 $ 62 $ 9,855 Loans receivable $ 142,392 $ 3,428 $ 27,108 $ 25,102 $ 2,436 $ 4,574 $ 205,040 Ending balance individually evaluated for impairment 972 — — — — — 972 Ending balance collectively evaluated for impairment $ 141,420 $ 3,428 $ 27,108 $ 25,102 $ 2,436 $ 4,574 $ 204,068 The following tables summarize impaired loans as of December 31, 2022 and 2021: December 31, 2022 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 450 $ 450 $ — $ 711 $ 36 Commercial, non-real estate — — — — — Residential real estate — — — — — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 450 $ 450 $ — $ 711 $ 36 December 31, 2021 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 972 $ 972 $ — $ 945 $ 47 Commercial, non-real estate — — — — — Residential real estate — — — 189 — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 972 $ 972 $ — $ 1,134 $ 47 For the years ending December 31, 2022 and 2021, there were no impaired loans with an allowance recorded. Nonaccrual and past due loans are summarized below as of December 31, 2022 and 2021: December 31, 2022 ($ 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 $ 144,803 $ 369 $ — $ — $ 369 $ — $ 145,172 Commercial, non-real estate 11,484 — — — — — 11,484 Residential real estate 37,387 428 — — 428 — 37,815 Strategic Program loans 45,669 1,184 802 193 2,179 — 47,848 Commercial real estate 12,063 — — — — — 12,063 Consumer 5,776 32 — — 32 — 5,808 Total $ 257,182 $ 2,013 $ 802 $ 193 $ 3,008 $ — $ 260,190 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 years ended December 31, 2022 and 2021, that was not recorded on nonaccrual loans was approximately $0.1 million and $0.1 million, respectively. In addition to past due and nonaccrual status criteria, the Company also evaluates loans using a loan grading system. Internal loan grades are based on current financial information, historical payment experience, and credit documentation, among other factors. Performance-based grades are summarized below: Pass (Loan Grades 1-4) Special Mention Classified Substandard Classified Doubtful Classified Loss (Loan Grade 8) – The Company does not currently grade retained Strategic Program loans Outstanding loan balances categorized by these credit quality indicators are summarized as follows at December 31, 2022 and 2021: December 31, 2022 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 144,149 $ 573 $ 450 $ 145,172 Commercial, non-real estate 11,484 — — 11,484 Residential real estate 37,815 — — 37,815 Commercial real estate 12,063 — — 12,063 Consumer 5,808 — — 5,808 Not Risk Graded Strategic Program loans 47,848 Total at December 31, 2022 $ 211,319 $ 573 $ 450 $ 260,190 December 31, 2021 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 139,985 $ 1,435 $ 972 $ 142,392 Commercial, non-real estate 3,382 46 — 3,428 Residential real estate 27,108 — — 27,108 Commercial real estate 2,436 — — 2,436 Consumer 4,574 — — 4,574 Not Risk Graded Strategic Program loans 85,850 Total at December 31, 2021 $ 177,485 $ 1,481 $ 972 $ 265,788 There were no loans modified as TDRs during the years ended December 31, 2022, and 2021. Loans classified as TDRs, consist of the following at December 31, 2022 and 2021: ($ in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment December 31, 2022 SBA 1 $ 94 $ 94 December 31, 2021 SBA 2 $ 106 $ 106 Non-Accrual SBA 1 $ 25 $ 25 At December 31, 2022 and 2021, there were no commitments to lend additional funds to debtors whose loan terms have been modified in a TDR. There was one principal charge-off recorded related to TDRs during the year ended December 31, 2022 for $0.01 million. There were no principal charge-offs recorded related to TDRs during the year ended December 31, 2021. During 2022, one restructured loan incurred a default within twelve months of the restructure date and was paid in full including interest during 2022. During 2021, one restructured loan incurred a default within twelve months of the restructure date and was paid in full including interest during 2021. COVID-Related Loan Deferments As discussed in Note 1, the federal banking agencies issued guidance in March 2020 that short -term modifications (for example, six months) made to a borrower affected by the COVID -19 pandemic does not need to be identified as a TDR if the loan was current at the time of modification. This relief applies to loan modifications executed between March 1, 2020 and January 1, 2022. The CARES Act also addressed COVID-19 related modifications and specified that such modifications made on loans that were current as of December 31, 2019 are not TDRs. None of these modifications were on deferment status as of December 31, 2022 and 2021.

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2022
Premises and Equipment [Abstract]
Premises and Equipment	Note 4 – Premises and Equipment Premises and equipment at December 31, 2022 and 2021, consist of the following: ​ December 31, ​ 2022 2021 ($ in thousands) Leasehold improvements $ 3,720 $ 80 Furniture, fixtures, and equipment (1) 6,501 2,219 Construction in progress 1,514 2,333 Total premises and equipment $ 11,735 $ 4,632 Less accumulated depreciation (2,257 ) (1,347 ) Premises and equipment, net $ 9,478 $ 3,285 (1) The Furniture, fixtures, and equipment include commercial operating leases of $ 2.8 2.7 Depreciation expense was approximately $1.0 million and $0.3 million for the years ended December 31, 2022 and 2021, respectively. Rental income from operating leases for the years ended December 31, 2022 was $0.2 million. Lease Liabilities The Company leases its facilities under noncancelable operating leases. Rent expense for 2022 and 2021 was $1.1 million and $0.5 million, respectively. Future minimum annual undiscounted rental payments for these operating leases are as follows ($ in thousands): Year Ended December 31, 2023 $ 850 Year Ended December 31, 2024 1,104 Year Ended December 31, 2025 1,086 Year Ended December 31, 2026 1,118 Year Ended December 31, 2027 1,152 Thereafter 2,203 Total $ 7,513 Less present value discount (493 ) Operating lease liabilities $ 7,020 The Company entered into one lease during the year ended December 31, 2022 to provide additional space while the Murray office construction was completed. ASC 842 allows for a short-term lease exception which the Company has chosen to 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. ​ Year Ended ​ December 31, 2022 Weighted-average remaining lease term – operating leases (in years) 6.7 Weighted-average discount rate – operating leases 1.9 % The components of lease expense were as follows (in thousands): ​ Year Ended December 31, 2022 (in thousands) Operating leases Operating lease cost $ 1,044 Variable lease cost 16 Operating lease expense 1,060 Short-term lease rent expense 38 Net rent expense $ 1,098

Deposits

Deposits	12 Months Ended
	Dec. 31, 2022
Deposits [Abstract]
Deposits	Note 5 – Deposits Major classes of deposits at December 31, 2022 and 2021, are as follows: ​ December 31, ​ 2022 2021 ($ in thousands) Demand $ 129,563 $ 115,947 Savings 8,289 6,685 Money markets 10,882 31,076 Time certificates of deposit 94,264 98,184 Total deposits $ 242,998 $ 251,892 At December 31, 2022, the scheduled maturities of time deposits are as follows ($ in thousands): Year Ended December 31, 2023 $ 57,721 Year Ended December 31, 2024 17,514 Year Ended December 31, 2025 9,314 Year Ended December 31, 2026 8,160 Year Ended December 31, 2027 1,555 Thereafter — Total 94,264 Time deposits with balances equal or greater than $250,000 totaled $6.4 million and $3.7 million at December 31, 2022 and 2021, respectively.

SBA Servicing Asset

SBA Servicing Asset	12 Months Ended
	Dec. 31, 2022
SBA Servicing Asset [Abstract]
SBA Servicing Asset	Note 6 – SBA Servicing Asset The Company periodically sells portions of SBA loans and retains rights to service the loans. Loans serviced for others are not included in the accompanying balance sheet. The unpaid principal balances of SBA loans serviced for others was $318.6 million and $210.2 million at December 31, 2022 and 2021, respectively. The following table summarizes SBA servicing asset activity for the periods indicated: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Beginning balance $ 3,938 $ 2,415 Additions to servicing asset 4,087 3,048 Impairment of SBA servicing asset (1,728 ) (800 ) Amortization of servicing asset (1,087 ) (725 ) Ending balance $ 5,210 $ 3,938 The SBA servicing asset is carried at the lower or amortized cost or fair market value. The fair market value of the SBA servicing asset as of December 31, 2022 and 2021, was $5.2 million and $3.9 million, respectively. Fair value adjustments to servicing rights are mainly due to market-based assumptions associated with discounted cash flows, loan prepayment speeds, and changes in interest rates. A significant change in prepayments of the loans in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of servicing rights. The SBA servicing asset recognized an impairment in the years ending December 31, 2022 and 2021. The Company assumed a weighted average prepayment rate of 14.24%, weighted average term of 4.45 years, and a weighted average discount rate of 18.79% at December 31, 2022. The Company assumed a weighted average prepayment rate of 14.37%, weighted average term of 4.02 years, and a weighted average discount rate of 11.38% at December 31, 2021.

Capital Requirements

Capital Requirements	12 Months Ended
	Dec. 31, 2022
Capital Requirements [Abstract]
Capital Requirements	Note 7 – Capital Requirements The Bank is subject to various regulatory capital requirements administered by federal and State of Utah banking agencies (the regulators). Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off -balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk -weighting, and other factors. Prompt corrective action provisions are not applicable to the bank holding company. Beginning January 1, 2020, the bank qualified and elected to use the community bank leverage ratio (CBLR) framework for quantitative measures which requires the Bank to maintain minimum amounts and ratios of Tier 1 capital to average total consolidated assets. Management believes, as of December 31, 2022 and December 31, 2021, that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2022 and 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 December 31, 2022 Leverage ratio (CBLR election) $ 91,674 25.1 % $ 32,898 * 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% 8.5% 9% 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	12 Months Ended
	Dec. 31, 2022
Commitments and Contingent Liabilities [Abstract]
Commitments and Contingent Liabilities	Note 8 – Commitments and Contingent Liabilities Federal Home Loan Bank Secured Line of Credit As of December 31, 2022 and 2021, the Bank’s available line of credit with the FHLB to borrow in overnight funds was $2.6 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 December 31, 2022, no amounts were outstanding under the line of credit. Loans totaling $4.0 million and $5.4 million were pledged to secure the FHLB line of credit as of December 31, 2022 and 2021, respectively. Lines of Credit At December 31, 2022, we had the ability to access $10.6 million from the Federal Reserve Bank’s Discount Window on a collateralized basis. Through Zions Bank, the Bank had an available unsecured line of $1.0 million. The Bank had an available line of credit with Bankers’ Bank of the West to borrow up to $1.05 million in overnight funds. We had no outstanding balances on the unsecured or secured lines of credit as of December 31, 2022. Paycheck Protection Program Liquidity Facility On April 20, 2020, the Bank was approved by the Federal Reserve to access its SBA Paycheck Protection Program Liquidity Facility (“PPPLF”) through the discount window. The PPPLF enables the Company to fund PPP loans without taking on additional liquidity or funding risks because the Company is able to pledge PPP loans as collateral to secure extensions of credit under the PPPLF on a non-recourse basis. Borrowings under the PPPLF have a fixed-rate of 0.35%, with a term that matches the underlying loans. The Bank pledged $1.0 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at December 31, 2021. The Bank pledged $0.3 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at December 31, 2022. The average outstanding borrowings were $36.4 million during the year ended December 31, 2021 and $0.6 million during the year ended December 31, 2022. Commitments to Extend Credit In the ordinary course of business, the Bank has entered into commitments to extend credit to customers which have not yet been exercised. These financial instruments include commitments to extend credit in the form of loans. Those instruments involve to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. At December 31, 2022 and 2021, financial instruments with off-balance-sheet risk were as follows: ​ December 31, ($ in thousands) 2022 2021 Revolving, open-end lines of credit $ 1,683 $ 1,259 Commercial real estate 17,886 15,402 Other unused commitments 253 377 ​ $ 19,822 $ 17,038

Investment in Business Funding

Investment in Business Funding Group, LLC	12 Months Ended
	Dec. 31, 2022
Investment in Business Funding Group, LLC [Abstract]
Investment in Business Funding Group, LLC	Note 9 – Investment in Business Funding Group, LLC On December 31, 2019, the Company purchased from certain members of BFG a 10% membership interest in exchange for an aggregate of 950,784 shares of par value $0.001 Common Stock of the Company. The exchange was accounted for at fair value based on the fair value of the Company’s shares of approximately $3.5 million. The Company’s 10% membership interests of BFG are comprised of Class A Voting Units representing 4.96% of the aggregate membership interests of BFG and Class B Non-Voting Units representing 5.04% of the aggregate membership interests of BFG. The other existing members of BFG jointly own the remaining 90% of the outstanding membership interests, on a fully-diluted basis – all of which membership interests are Class A Voting Units. Based on the Company’s accounting policy with respect to investments in limited liability companies, the Company concluded that its level of ownership was indicative of significant influence and, as a result, the investment would be accounted for using the equity method. However, the Company elected the fair value option for its investment due to cost-benefit considerations. The Company received distributions from BFG in the amounts of $0.6 million and $0.9 million for the years ended December 31, 2022 and 2021, respectively. These distributions were recorded in the Consolidated Balance Sheets as decreases in the investment in BFG. On March 31, 2020, the Company entered into an agreement with BFG whereby the Company has the right of first refusal to purchase additional interests in BFG from any selling members. Additionally, the Company was granted an option to purchase all, but not less than all, of the interests in BFG from the remaining members for an earnings multiple between 10 times and 15 times net profit based on the fiscal year ended immediately prior to the exercise of the option. The option period begins on January 1, 2021 and expires on January 1, 2028. In consideration of granting the first right of refusal and the option, BFG members received 270,000 warrants in the aggregate. The warrants have an exercise price of $6.67 per share and the warrants expire on March 31, 2028. The warrants are free-standing equity instruments and, as a result, are classified within equity at the fair value on the issuance date. The fair value of the warrants was determined by our board of directors with input from management, relying in part upon valuation reports prepared by a third-party valuation firm using a Black-Scholes option pricing model adjusted for a lack of marketability since the Company’s stock was 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 15 Related Parties.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2022
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 10 – Stock-Based Compensation Stock option plans The Company utilizes stock-based compensation plans, as well as discretionary grants, for employees, directors and consultants to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentives and to promote the success of the Company’s business. The 2019 Stock Option Plan (“2019 Plan”) was adopted on June 20, 2019 following approval by the Company’s Board of Directors and shareholders. The 2019 Plan provides for the issuance of non-statutory stock options and restricted stock to employees, directors and consultants as well as issuance of incentive stock options only to employees. The 2019 Plan originally authorized the issuance of 780,000 common shares but was later amended on April 19, 2022 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. This amendment along with an amendment to change its name from the All West Bancorporation 2019 Stock Option Plan to the FinWise Bancorp 2019 Stock Option Plan was approved by the Company’s shareholders 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 December 31, 2022, 621,472 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 December 31, 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. The following summarizes stock option activity for the years ended December 31, 2022 and 2021: ​ Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2020 638,664 $ 3.54 8.6 $ 653,991 Options granted 906,600 6.27 3.3 Options exercised (86,676 ) 3.6 511,339 Options forfeited (596,100 ) 6.42 1,460,581 Outstanding at December 31, 2021 862,488 $ 4.41 8.2 $ 8,088,660 Options granted 89,415 13.04 9.9 Options exercised (56,280 ) 4.62 393,534 Options forfeited (13,998 ) 4.40 124,874 Outstanding at December 31, 2022 881,625 $ 5.27 7.5 $ 3,871,667 Options vested and exercisable at December 31, 2022 600,396 $ 4.47 7.3 $ 2,878,478 The weighted average grant-date fair value of options per share granted was $6.26 and $1.55 during 2022 and 2021, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2022 and 2021 were $0.39 million and $0.51 million, respectively. During 2022, the Company received proceeds of approximately $0.3 million from the exercise of stock options and recognized a de minimis tax benefit from the exercise of stock options. Upon exercise of the stock options, the Company will issue new authorized shares. Restricted stock The Company from time-to-time grants shares of restricted stock to key employees or directors. These awards typically hold service requirements over various vesting periods. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards, ratably over the vesting period of the stock grants. All restricted stock agreements are conditioned upon continued employment. Termination of employment prior to a vesting date, as described below, would terminate any interest in non-vested shares. Nonvested restricted stock for the years ended December 31, 2022 and 2021 is summarized in the following table. ​ Number of Shares Weighted Average Grant Price Unvested as of December 31, 2020 621,666 $ 3.64 Vested (621,666 ) 3.64 Unvested as of December 31, 2021 — $ — Granted 123,055 $ 12.28 Unvested as of December 31, 2022 123,055 $ 12.28 The restricted stock vests as follows: 59,048 shares in 2023, 32,003 shares in 2024, and 32,004 shares in 2025. The aggregate fair value of restricted stock that vested was approximately $2.3 million for the year ended December 31, 2021, respectively. The aggregate fair value of restricted stock outstanding was approximately $5.4 million for the year ended December 31, 2022. Stock-based compensation expense The following tables present pre-tax and after-tax stock-based compensation expense recognized: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Pre-tax Stock options $ 320 $ 934 Restricted shares 458 1,166 Total $ 778 $ 2,100 After-tax Stock options $ 322 $ 778 Restricted shares 344 1,166 Total $ 666 $ 1,944 As of December 31, 2022, the Company had unrecognized stock-based compensation expense related to stock options and restricted stock of approximately $0.5 million and $1.1 million, respectively, which is expected to be recognized over the remaining weighted average recognition period of 1.8 and 1.4 years. Employee stock-based compensation expense is recorded within Salaries and employee benefits and was $0.8 million and $1.6 million for the years ending December 31, 2022 and 2021, respectively. Stock-based compensation for all others is recorded within Other operating expenses and was $0.0 million and $0.5 million for the years ending December 31, 2022 and 2021, respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2022
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 11 – Fair Value of Financial Instruments The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy. Level 1 Level 2 Level 3 The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. The following methods were used to estimate the fair value of each class of financial instruments: Cash and cash equivalents Investment securities held-to-maturity Investment in Federal Home Loan Bank stock Strategic Program loans held-for-sale Loans held for investment SBA servicing asset Investment in BFG : The Company purchased its ownership interest in BFG on December 31, 2019. The Company’s valuation technique utilized the average of the discounted cash flow method and the Guideline Public Company method. A 20% lack of marketability discount was applied to the valuation as well as a 4.50% discount to non-voting shares to arrive at fair value as of December 31, 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 $4.8 million and $5.9 million as of December 31, 2022 and December 31, 2021, respectively. The following table summarizes investment in BFG activity for the periods indicated: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Beginning balance $ 5,900 $ 3,770 Distributions from BFG (622 ) (861 ) Change in fair value of BFG (478 ) 2,991 Ending balance $ 4,800 $ 5,900 Deposits : The carrying amount of deposits with no stated maturity, such as savings and checking accounts, is a reasonable estimate of their fair value. The market value of certificates of deposit is based upon the discounted value of contractual cash flows. The discount rate is determined using the rates currently offered on comparable instruments. Accrued interest receivable and payable PPP Liquidity Facility The table below presents the carrying amount and fair value of the Company’s financial instruments: ​ December 31, 2022 December 31, 2021 ($ in thousands) Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents 1 $ 100,567 $ 100,567 $ 85,754 $ 85,754 Investment securities held-to-maturity 2 14,292 12,728 11,423 11,332 Investment in FHLB stock 2 449 449 378 378 Loans held for investment 3 224,217 237,225 198,102 197,412 Loans held-for-sale 2 23,589 23,586 60,748 60,743 Accrued interest receivable 2 1,818 1,818 1,548 1,548 SBA servicing asset 2 5,210 5,210 3,938 3,938 Investment in BFG 3 4,800 4,800 5,900 5,900 Financial liabilities: Total deposits 2 242,998 221,287 251,892 249,488 Accrued interest payable 2 54 54 48 48 PPP Liquidity Facility 2 314 314 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 December 31, 2022 Nonrecurring assets Impaired loans $ 450 $ — $ — $ 450 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 during the years ended December 31, 2022 and 2021, along with the valuation techniques used, are shown in the following table: ($ in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2022 Impaired loans $ 450 Market comparable Adjustment to appraisal value 0.20 % ​ 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 in BFG Level 3 recurring asset as of December 31, 2022 and as of December 31, 2021 are shown in the following table: December 31, 2022 December 31, 2021 ($ in thousands) Range (Weighted Average) Range (Weighted Average) Discounted Cash Flows Revenue growth rate 10.8 % 16.6 % Expense growth rate 11.5 % 16.3 % Discount rate 30.0 % 25.0 % Guideline Public Company Multiples of enterprise value 3.0x to 5.0x 4.0x to 6.0x

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Taxes [Abstract]
Income Taxes	Note 12 – Income Taxes The components of income tax expense consist of the following: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Current tax expense Federal $ 8,315 $ 9,589 State 1,945 2,471 Deferred tax expense (benefit) Federal 553 (1,156 ) State 103 (215 ) Income tax expense $ 10,916 $ 10,689 The components of net deferred income tax assets and liabilities on the balance sheet at December 31, 2022 and 2021, are as follows: ​ December 31, ($ in thousands) 2022 2021 Deferred tax assets Operating lease liabilities $ 1,749 $ — Allowance for loan losses 1,639 1,630 Accrued bonuses 61 72 Nonqualified stock options 124 156 Restricted stock 114 — Other 290 250 Total deferred tax assets 3,977 2,108 Deferred tax liabilities ROU asset (1,256 ) — Intangibles (3 ) (3 ) Net book value of fixed assets (1,230 ) (217 ) Other (321 ) (65 ) Total deferred tax liabilities (2,810 ) (285 ) Net deferred tax asset $ 1,167 $ 1,823 The income tax expense recorded differs from the expected income tax expense and the reconciliation of these differences is as follows at December 31, 2022 and 2021: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Federal income tax expense at statutory rates $ 7,567 $ 8,877 Effect of permanent differences 811 50 State income tax expense, net 1,560 1,662 Other 978 100 Income tax expense $ 10,916 $ 10,689 The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2022, and 2021, the Company recognized approximately $0 million of interest or penalties. The Company files a United States federal income tax return and state income tax returns in Utah, Florida, New York, Ohio, and Washington. Open tax years that are potentially subject to examination related to the U.S. federal jurisdiction are 2019 and subsequent years. The Company had no unrecognized tax benefits at December 31, 2022 and 2021.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2022
Shareholders' Equity [Abstract]
Shareholders' Equity	Note 13 – Shareholders’ Equity Stock Repurchases On August 18, 2022, the Company announced that its Board of Directors (the “Board”) has authorized, effective August 16, 2022, a common stock repurchase program to purchase up to 644,241 shares of the Company’s common stock in the aggregate. The repurchase program expires on August 31, 2024, but may be limited or terminated at any time without prior notice. The repurchase program authorizes the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or privately negotiated transactions. The authorization permits management to repurchase shares of the Company’s common stock from time to time at management’s discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The actual means and timing of any shares purchased under the program will depend on a variety of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares. The Company has repurchased 120,000 shares for approximately $1.1 million as of December 31, 2022 and retired them at cost.

Retirement Plan

Retirement Plan	12 Months Ended
	Dec. 31, 2022
Retirement Plan [Abstract]
Retirement Plan	Note 14 – Retirement Plan The Company has established an employee directed 401(k) plan (Plan). The Plan requires the Company to annually contribute a “Safe Harbor” profit sharing contribution for all eligible participants. In addition, the Plan allows the Company, at its discretion, to make a matching contribution or additional profit sharing contribution based on each eligible employee’s compensation for the Plan year. The participants must be at least 21 years of age and have at least one year of service in order to be eligible for matching and profit-sharing contributions. The Company made profit-sharing contributions to the Plan of $0.5 million and $0.4 million for the years ended December 31, 2022 and 2021, respectively.

Related Parties

Related Parties	12 Months Ended
	Dec. 31, 2022
Related Parties [Abstract]
Related Parties	Note 15 – 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 did not have loans outstanding to any related party as of December 31, 2022 and 2021. Total deposits from certain executive officers and directors and the companies with which they are associated were $1.2 million and $0.5 million as of December 31, 2022 and 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	12 Months Ended
	Dec. 31, 2022
Earnings per Share [Abstract]
Earnings per Share	Note 16 – Earnings per Share The following table is a reconciliation of the components used to derive basic and diluted EPS for the years ended December 31, 2022 and 2021 ($ in thousands, except share and per share amounts): ​ For the Years Ended December 31, ​ 2022 2021 Numerator: Net income $ 25,115 $ 31,583 Amount allocated to participating common shareholders (1) (193 ) (1,780 ) Net income allocate to common shareholders $ 24,922 $ 29,803 Denominator: Weighted average shares outstanding, basic 12,729,898 8,669,724 Weighted average effect of dilutive securities: Stock options 508,056 371,240 Warrants 119,068 67,199 Weighted average shares outstanding, diluted 13,357,022 9,108,163 Earnings per share, basic $ 1.96 $ 3.44 Earnings per share, diluted $ 1.87 $ 3.27 (1) Represents earnings attributable to holders of unvested restricted stock issued outside of the Plan to the Company’s employees. There were no anti-dilutive options for the periods reported in the table above.

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2022
Revenue Recognition [Abstract]
Revenue Recognition	Note 17 – 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 Years Ended December 31, ($ in thousands) 2022 2021 Interest income Interest income, not-in-scope Interest and fees on loans $ 50,941 $ 49,135 Interest on securities 208 47 Other interest income 1,180 61 Total interest income $ 52,329 $ 49,243 Non-interest income Non-interest income, in-scope Service charges on deposit accounts $ 30 $ 31 Strategic Program set up fees 195 96 Strategic Program fees 21,438 17,119 Non-interest income, not in-scope Gain on sale of loans, net 13,550 9,689 SBA loan servicing fees 1,603 1,156 Unrealized gain on investment in BFG (478 ) 2,991 Other miscellaneous income 239 18 Strategic Program service charges 834 744 Total non-interest income $ 37,411 $ 31,844

Condensed Financial Statements

Condensed Financial Statements of Parent	12 Months Ended
	Dec. 31, 2022
Condensed Financial Statements of Parent [Abstract]
Condensed Financial Statements of Parent	Note 18 – Condensed Financial Statements of Parent Financial information pertaining only to FinWise Bancorp, on a parent-only basis, is as follows as of and for the years ended December 31, 2022 and 2021: Balance Sheets ​ December 31, ($ in thousands) 2022 2021 ASSETS Cash and cash equivalents $ 36,321 $ 38,697 Investment in subsidiary bank 100,276 71,186 Investment in Business Funding Group (BFG), at fair value 4,800 5,900 Investment in FinWise Investments, LLC 271 80 Deferred taxes, net 127 82 Other assets 37 322 Total assets $ 141,832 $ 116,267 LIABILITIES AND SHAREHOLDERS’ EQUITY Income taxes payable 1,077 233 Other liabilities 296 592 Shareholders’ equity 140,459 115,442 Total liabilities and shareholders’ equity $ 141,832 $ 116,267 Statement of Income ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Non-interest income Change in fair value on investment in BFG $ (478 ) $ 2,991 Equity in undistributed earnings of subsidiary 29,090 30,469 Total non-interest income 28,612 33,460 Non-interest expense Salaries and employee benefits 2,316 742 Professional services 1,990 320 Other operating expenses 470 360 Total non-interest expense 4,776 1,422 Income before income tax expense 23,836 32,038 Provision for income taxes (1,279 ) 455 Net income $ 25,115 $ 31,583 Statements of Cash Flows ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Cash flows from operating activities: Net income $ 25,115 $ 31,583 Adjustments to reconcile net income to net cash from operating activities Change in fair value of BFG 478 (2,991 ) Stock-based compensation expense 778 2,100 Deferred income tax expense 844 222 Net changes in: Income tax receivable (45 ) (128 ) Other assets 285 (217 ) Other liabilities (296 ) (288 ) Net cash provided by operating activities 27,159 30,281 Cash flows from investing activities: Investment in subsidiary bank (29,090 ) (30,469 ) Investment in FinWise Investments, LLC (191 ) (80 ) Distributions of BFG 622 861 Net cash used in investing activities (28,659 ) (29,688 ) Cash flows from financing activities: Proceeds from exercise of stock options 260 311 Proceeds from initial public offering, net — 35,576 Common stock repurchased (1,136 ) — Net cash provided by (used in) financing activities (876 ) 35,887 Net change in cash and cash equivalents (2,376 ) 36,480 Cash and cash equivalents, beginning of year 38,697 2,217 Cash and cash equivalents, end of year $ 36,321 $ 38,697

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 19 – 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 March 30, 2023, which is the date the consolidated financial statements are available to be issued.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Summary of Significant Accounting Policies [Abstract]
Nature of business and organization	Nature of business and organization – On July 15, 2021, the Company publicly filed a Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with its Initial Public Offering (“IPO”) (the “Registration Statement”), which was subsequently amended on July 30, 2021, August 4, 2021, November 1, 2021, and November 16, 2021. The Registration Statement was declared effective by the SEC on November 18, 2021. In connection with the IPO, the Company issued 4,025,000 shares of common stock, par value of $0.001, which included 525,000 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $10.50 per share and began trading on the Nasdaq Stock Market LLC on November 19, 2021. On November 23, 2021, the closing date of the IPO, the Company received total net proceeds of $39.3 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $35.6 million. The Bank is an independent bank that provides a full range of banking services to individual and corporate customers. The Bank’s primary source of revenue is from loans including Small Business Administration (SBA), commercial, commercial real estate, residential real estate, and consumer. The Bank also has established Strategic Programs with various third-party loan origination platforms that use technology to streamline the origination of unsecured consumer and secured or unsecured business loans to borrowers within certain approved credit profiles. The Bank earns monthly program fees based on the volume of loans originated in these Strategic Programs, as well as interest during the time the Bank holds the loans. The Company is subject to competition from other financial institutions and to the regulations of certain federal and state agencies and undergoes periodic examinations by those agencies.
Stock split and changes in authorized shares	Stock split and changes in authorized shares –
Significant concentrations of credit risk	Significant concentrations of credit risk Ongoing analysis of the Company’s loan portfolio is performed to evaluate whether there is any significant exposure to an individual borrower or group(s) of borrowers as a result of any concentrations of credit risk. Such credit risks (whether on- or off-balance sheet) may occur when groups of borrowers or counterparties have similar economic characteristics and are similarly affected by changes in economic or other conditions. Credit risk also includes the loss that would be recognized subsequent to the reporting date if counterparties failed to perform as contracted. As of December 31, 2022 and 2021, the Company analyzed its exposure to credit risks and concluded that no significant exposure exists from such concentrations of credit risks.
Paycheck Protection Program	Paycheck Protection Program – de minimis
Principles of consolidation	Principles of consolidation
Out-of-period adjustment	Out-of-period adjustments During the third quarter of 2022, the Company identified an error in the calculation of the Company’s tax provision which understated income tax expense for previously reported financial statements. The error was related to an incorrect application of Section 162(m) of the Internal Revenue Code, which limits tax deductions relating to executive compensation of certain executives of publicly held companies. The Company recorded an out-of-period adjustment during the third quarter of 2022 to correct the previously understated income tax expense. The adjustment resulted in a decrease to after-tax income of $(0.9) million for the year ended December 31, 2022. The impact associated with this correction was not considered material to the interim unaudited consolidated financial statements for the three months ended September 30, 2022, year ended December 31, 2022, or the financial statements of any previously filed interim or annual periods. During the fourth quarter of 2022, the Company established a new loan trailing fee asset which is included in “Other assets” on the Consolidated Balance Sheets of approximately $2.3 million and recognized $2.1 million in gain on sale of loans ($1.5 million net of tax) as an out-of-period adjustment of which $1.2 million ($0.9 million net of tax) would have been recorded in the first three quarters of 2022 with the remaining $0.9 million ($0.6 million net of tax) associated with years prior to 2022. Before this correction, the loan trailing fees had been recognized in revenue during the month payment was owed by the Strategic Program rather than as a gain to be recognized upon sale of the loan receivables. The impact associated with this correction was not considered material to the interim unaudited consolidated financial statements for the three months ended December 31, 2022, year ended December 31, 2022, or the financial statements of any previously filed interim or annual periods.
Use of estimates	Use of estimates Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses (ALL), the determination of the fair value of certain financial instruments, deferred income tax assets and stock-based compensation. Management believes the ALL is adequate. While management uses currently available information to recognize losses on loans, future additions to the allowance may be necessary based on economic conditions and individual credit deterioration.
Reclassifications	Reclassifications
Cash and cash equivalents	Cash and cash equivalents The Company maintains its cash in deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.
Investments	Investments Investment securities When the estimated fair value of a security is lower than the book value, a security is considered temporarily impaired. On a quarterly basis, the Company evaluates any securities in a loss position to determine whether the impairment is other-than-temporary. If there is intent to sell the security, or if the Company will be required to sell the security, or if the Company believes it will not recover the entire cost basis of the security, the security is other-than-temporarily impaired (“OTTI”) and impairment is recognized. The amount of impairment resulting from credit loss is recognized in earnings and impairment related to all other factors, such as general market conditions, is recognized in AOCI in the case of securities classified as available for sale. Management considers a number of factors in its analysis of whether a decline in a security’s estimated fair value is OTTI. Certain factors considered include, but are not limited to: (a) the length of time and the extent to which the security has been in an unrealized loss position, (b) changes in the financial condition of the issuer, (c) the payment structure of debt securities, (d) adverse changes in ratings issued by rating agencies, (e) and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Purchased premiums and discounts on debt securities are amortized or accreted over the terms of the securities using the effective-yield method. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Equity method investments –
Investment in Federal Home Loan Bank ("FHLB") stock	Investment in Federal Home Loan Bank (“FHLB”) stock
Loans held-for-sale	Loans held-for-sale
Loans receivable	Loans receivable The Company requires most loans to be substantially collateralized by real estate, equipment, vehicles, accounts receivable, inventories or other tangible or intangible assets. Real estate collateral is in the form of first and second mortgages on various types of property. The Company also originates unsecured loans to consumers and businesses. The Company may change intent from holding loans for investment and reclassify them as held-for-sale. Loans held-for-sale are carried at the lower of aggregate cost and fair value. Gains and losses are recorded in non-interest income based on the difference between sales proceeds and carrying value.
Allowance for loan losses	Allowance for loan losses The ALL represents the Company’s estimate of probable and estimable losses inherent to the loan portfolio as of the balance sheet date. Losses are charged to the ALL when recognized. Generally, loans are charged off or charged down at the point at which they are determined to be uncollectible in whole or in part unless the loan is well secured and in the process of collection. The Company establishes the amount of the ALL by loan type, at least quarterly, and the Company adjusts the provision for loan losses so the ALL is at an appropriate level at the balance sheet date. The Company determines ALL as the best estimate within a range of estimated losses. The methodologies the Company uses to estimate the ALL depend upon the impairment status and risk category of the loan. After applying historic loss experience, as described above, the Company reviews the quantitatively derived level of ALL for each category using qualitative criteria. The Company tracks various risk factors that influence the judgment regarding the level of the ALL across the risk categories. Risk factors include changes in national, regional, and local economic conditions that affect the borrowers’ business, delinquency, and charge off trends, and data from peer groups, among others. The Company reviews changes in these factors to ensure that changes in the level of the ALL are directionally consistent with changes in these factors.
Nonaccrual loans	Nonaccrual loans
Impaired loans	Impaired loans
Troubled debt restructurings (TDR)	Troubled debt restructurings (TDR) The Company considers many factors in determining whether to agree to a loan modification involving concessions, and seeks a solution that will both minimize potential loss to the Company and attempt to help the borrower. The Company evaluates borrowers’ current and forecasted future cash flows, their ability and willingness to make current contractual or proposed modified payments, the value of the underlying collateral, the possibility of obtaining additional security or guarantees, and the potential costs related to a repossession or foreclosure and the subsequent sale of the collateral. TDRs may be classified as either accrual or nonaccrual loans. A loan on nonaccrual status and restructured as a TDR will remain on nonaccrual status until the borrower has proven the ability to perform under the modified structure for a minimum of six months, and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the restructuring, or significant events that coincide with the restructuring, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of restructuring or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan.
Premises and equipment, net	Premises and equipment, net
Leases	Leases Leases (Topic 842)
Income taxes	Income taxes Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial statements.
Transfer of financial assets	Transfer of financial assets
SBA servicing asset, net	SBA servicing asset, net The SBA servicing asset is evaluated annually for impairment based on the fair value of the asset as compared to amortized cost. Capitalized servicing rights are stated separately on the consolidated balance sheet and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing fee income, which is reported in the consolidated statements of income in SBA loan servicing fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of servicing assets and changes in the valuation allowance are netted against loan servicing income.
Revenue from contracts with customers	Revenue from contracts with customers Revenue from Contracts with Customers
Stock-based compensation	Stock-based compensation – The Company accounts for all stock-based awards to employees and non-employees, including grants of stock options and restricted stock awards, based on their respective grant date fair values. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model. Restricted stock awards are valued based on the fair value of the Company’s common stock on the date of grant. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. The Company expenses stock-based compensation related to stock options and restricted stock over the requisite service period. The Company accounts for forfeitures of stock–based awards as they occur. Stock-based compensation expense pertaining to employees is included in salaries and employee benefits on the income statement. Stock-based compensation expense related to directors and consultants is included in other operating expenses on the income statement. The table below summarizes the weighted average assumptions used in determining the Black-Scholes option pricing model for options granted during 2022 and 2021: ​ 2022 2021 Risk-free interest rate 3.10 % 0.4% - 1.3 % 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 - -
Earnings per share ("EPS")	Earnings per share (“EPS”) The two-class method is used to determine earnings per share based on participation rights of participating securities in any undistributed earnings. Each unvested restricted share granted by the Company to its employees that includes rights to participate in distributed earnings is considered a participating security and the Company uses the two-class method to calculate net income available to the Company’s common shareholders per common share – basic and diluted.
Stock Repurchase Program	Stock Repurchase Program – On August 18, 2022, the Company announced that its Board of Directors (the “Board”) has authorized, effective August 16, 2022, a common stock repurchase program to purchase up to 644,241 shares of the Company’s common stock in the aggregate. The repurchase program expires on August 31, 2024 but may be limited or terminated at any time without prior notice. The repurchase program authorizes the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or privately negotiated transactions. The authorization permits management to repurchase shares of the Company’s common stock from time to time at management’s discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The actual means and timing of any shares purchased under the program will depend on a variety of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares. The Company has repurchased 120,000 shares for approximately $1.1 million as of December 31, 2022 and retired them at cost.
Off-balance sheet instruments	Off-balance sheet instruments Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.
Segment reporting	Segment reporting
Recent accounting pronouncements	Recent accounting pronouncements 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

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2022
Summary of Significant Accounting Policies [Abstract]
Weighted Average Assumptions used in Black-Scholes Option Pricing Model	The table below summarizes the weighted average assumptions used in determining the Black-Scholes option pricing model for options granted during 2022 and 2021: ​ 2022 2021 Risk-free interest rate 3.10 % 0.4% - 1.3 % 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 - -

Investments (Tables)

Investments (Tables)	12 Months Ended
	Dec. 31, 2022
Investments [Abstract]
Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Values of Held-to-Maturity Securities	The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at December 31, 2022 and 2021, are summarized as follows: ​ December 31, 2022 ($ in thousands) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Mortgage-backed securities $ 14,292 $ 5 $ (1,569 ) $ 12,728 ​ 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 December 31, 2022, nine in an unrealized loss at December 31, 2021. ​ December 31, 2022 Less than 12 months 12 Months or More Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 5,126 $ (286 ) $ 6,671 $ (1,283 ) $ 11,797 $ (1,569 ) 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 December 31, 2022 and 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. December 31, 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 3,388 3,202 1,541 1,548 Due after ten years 10,904 9,526 9,882 9,784 ​Total Securities held-to-maturity $ 14,292 $ 12,728 $ 11,423 $ 11,332

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2022
Loans and Allowance for Loan Losses [Abstract]
Loans Summarized to Major Risk Category	Loans are summarized as follows according to major risk category as of December 31, 2022 and 2021: ​ December 31, ​ 2022 2021 ($ in thousands) SBA $ 145,172 $ 142,392 Commercial, non-real estate 11,484 3,428 Residential real estate 37,815 27,108 Strategic Program loans 47,848 85,850 Commercial real estate 12,063 2,436 Consumer 5,808 4,574 Total loans $ 260,190 $ 265,788 Loans held-for-sale (23,589 ) (60,748 ) Total loans held for investment $ 236,601 $ 205,040 Deferred loan costs (fees), net (399 ) 2,917 Allowance for loan losses (11,985 ) (9,855 ) Net loans $ 224,217 $ 198,102
Strategic Program Loans Retained and Held-for-sale	Strategic Program loans retained and held-for-sale as of December 31, 2022 and 2021, are summarized as follows: ​ December 31, ​ 2022 2021 ($ in thousands) Retained Strategic Program loans $ 24,259 $ 25,102 Strategic Program loans held-for-sale 23,589 60,748 Total Strategic Program loans $ 47,848 $ 85,850
Changes in Allowance for Loan Losses	Changes in the ALL are summarized as follows: December 31, 2022 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 2,739 $ 132 $ 352 $ 6,549 $ 21 $ 62 $ 9,855 Charge-offs (392 ) — — (11,948 ) — (66 ) (12,406 ) Recoveries 66 2 — 885 — 64 1,017 Provision for loan and lease losses 1,881 267 145 11,215 6 5 13,519 Balance at end of year $ 4,294 $ 401 $ 497 $ 6,701 $ 27 $ 65 $ 11,985 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 4,294 $ 401 $ 497 $ 6,701 $ 27 $ 65 $ 11,985 Loans receivable $ 145,172 $ 11,484 $ 37,815 $ 24,259 $ 12,063 $ 5,808 $ 236,601 Ending balance individually evaluated for impairment 450 — — — — — 450 Ending balance collectively evaluated for impairment $ 144,722 $ 11,484 $ 37,815 $ 24,259 $ 12,063 $ 5,808 $ 236,151 December 31, 2021 ($ in thousands) SBA Commercial, Non-Real Estate Residential Real Estate Strategic Program Loans Commercial Real Estate Consumer Total Beginning balance $ 920 $ 232 $ 855 $ 4,111 $ 19 $ 62 $ 6,199 Charge-offs (154 ) (63 ) — (4,684 ) — (4 ) (4,905 ) Recoveries 46 103 — 372 — 1 522 Provision (recapture) for loan and lease losses 1,927 (140 ) (503 ) 6,750 2 3 8,039 Balance at end of year $ 2,739 $ 132 $ 352 $ 6,549 $ 21 $ 62 $ 9,855 Ending balance individually evaluated for impairment — — — — — — — Ending balance collectively evaluated for impairment $ 2,739 $ 132 $ 352 $ 6,549 $ 21 $ 62 $ 9,855 Loans receivable $ 142,392 $ 3,428 $ 27,108 $ 25,102 $ 2,436 $ 4,574 $ 205,040 Ending balance individually evaluated for impairment 972 — — — — — 972 Ending balance collectively evaluated for impairment $ 141,420 $ 3,428 $ 27,108 $ 25,102 $ 2,436 $ 4,574 $ 204,068
Impaired Loans	The following tables summarize impaired loans as of December 31, 2022 and 2021: December 31, 2022 ​ Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($ in thousands) With no related allowance recorded SBA $ 450 $ 450 $ — $ 711 $ 36 Commercial, non-real estate — — — — — Residential real estate — — — — — Strategic Program loans — — — — — Commercial real estate — — — — — Consumer — — — — — Total $ 450 $ 450 $ — $ 711 $ 36 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 December 31, 2022 and 2021: December 31, 2022 ($ 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 $ 144,803 $ 369 $ — $ — $ 369 $ — $ 145,172 Commercial, non-real estate 11,484 — — — — — 11,484 Residential real estate 37,387 428 — — 428 — 37,815 Strategic Program loans 45,669 1,184 802 193 2,179 — 47,848 Commercial real estate 12,063 — — — — — 12,063 Consumer 5,776 32 — — 32 — 5,808 Total $ 257,182 $ 2,013 $ 802 $ 193 $ 3,008 $ — $ 260,190 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 December 31, 2022 and 2021: December 31, 2022 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 144,149 $ 573 $ 450 $ 145,172 Commercial, non-real estate 11,484 — — 11,484 Residential real estate 37,815 — — 37,815 Commercial real estate 12,063 — — 12,063 Consumer 5,808 — — 5,808 Not Risk Graded Strategic Program loans 47,848 Total at December 31, 2022 $ 211,319 $ 573 $ 450 $ 260,190 December 31, 2021 ($ in thousands) Pass Grade 1-4 Special Mention Grade 5 Classified/ Doubtful/Loss Grade 6-8 Total SBA $ 139,985 $ 1,435 $ 972 $ 142,392 Commercial, non-real estate 3,382 46 — 3,428 Residential real estate 27,108 — — 27,108 Commercial real estate 2,436 — — 2,436 Consumer 4,574 — — 4,574 Not Risk Graded Strategic Program loans 85,850 Total at December 31, 2021 $ 177,485 $ 1,481 $ 972 $ 265,788
Loans Modified and Recorded as TDR's	There were no loans modified as TDRs during the years ended December 31, 2022, and 2021. Loans classified as TDRs, consist of the following at December 31, 2022 and 2021: ($ in thousands) Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment December 31, 2022 SBA 1 $ 94 $ 94 December 31, 2021 SBA 2 $ 106 $ 106 Non-Accrual SBA 1 $ 25 $ 25

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2022
Premises and Equipment [Abstract]
Components of Premises and Equipment	Premises and equipment at December 31, 2022 and 2021, consist of the following: ​ December 31, ​ 2022 2021 ($ in thousands) Leasehold improvements $ 3,720 $ 80 Furniture, fixtures, and equipment (1) 6,501 2,219 Construction in progress 1,514 2,333 Total premises and equipment $ 11,735 $ 4,632 Less accumulated depreciation (2,257 ) (1,347 ) Premises and equipment, net $ 9,478 $ 3,285 (1) The Furniture, fixtures, and equipment include commercial operating leases of $ 2.8 2.7
Future Minimum Annual Undiscounted Rental Payments for Operating Leases	Future minimum annual undiscounted rental payments for these operating leases are as follows ($ in thousands): Year Ended December 31, 2023 $ 850 Year Ended December 31, 2024 1,104 Year Ended December 31, 2025 1,086 Year Ended December 31, 2026 1,118 Year Ended December 31, 2027 1,152 Thereafter 2,203 Total $ 7,513 Less present value discount (493 ) Operating lease liabilities $ 7,020
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. ​ Year Ended ​ December 31, 2022 Weighted-average remaining lease term – operating leases (in years) 6.7 Weighted-average discount rate – operating leases 1.9 %
Components of Lease Expense	The components of lease expense were as follows (in thousands): ​ Year Ended December 31, 2022 (in thousands) Operating leases Operating lease cost $ 1,044 Variable lease cost 16 Operating lease expense 1,060 Short-term lease rent expense 38 Net rent expense $ 1,098

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2022
Deposits [Abstract]
Major Classes of Deposits	Major classes of deposits at December 31, 2022 and 2021, are as follows: ​ December 31, ​ 2022 2021 ($ in thousands) Demand $ 129,563 $ 115,947 Savings 8,289 6,685 Money markets 10,882 31,076 Time certificates of deposit 94,264 98,184 Total deposits $ 242,998 $ 251,892
Maturities of Time Deposits	At December 31, 2022, the scheduled maturities of time deposits are as follows ($ in thousands): Year Ended December 31, 2023 $ 57,721 Year Ended December 31, 2024 17,514 Year Ended December 31, 2025 9,314 Year Ended December 31, 2026 8,160 Year Ended December 31, 2027 1,555 Thereafter — Total 94,264

SBA Servicing Asset (Tables)

SBA Servicing Asset (Tables)	12 Months Ended
	Dec. 31, 2022
SBA Servicing Asset [Abstract]
SBA Servicing Asset Activity	The following table summarizes SBA servicing asset activity for the periods indicated: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Beginning balance $ 3,938 $ 2,415 Additions to servicing asset 4,087 3,048 Impairment of SBA servicing asset (1,728 ) (800 ) Amortization of servicing asset (1,087 ) (725 ) Ending balance $ 5,210 $ 3,938

Capital Requirements (Tables)

Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2022
Capital Requirements [Abstract]
Capital Amounts and Ratios	The Bank’s actual capital amounts and ratios are presented in the following table: ​ Actual Well-Capitalized Requirement ($ in thousands) Amount Ratio Amount Ratio December 31, 2022 Leverage ratio (CBLR election) $ 91,674 25.1 % $ 32,898 * 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% 8.5% 9%

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingent Liabilities [Abstract]
Financial Instruments with Off-balance Sheet Risk	At December 31, 2022 and 2021, financial instruments with off-balance-sheet risk were as follows: ​ December 31, ($ in thousands) 2022 2021 Revolving, open-end lines of credit $ 1,683 $ 1,259 Commercial real estate 17,886 15,402 Other unused commitments 253 377 ​ $ 19,822 $ 17,038

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Stock-Based Compensation [Abstract]
Stock Option Activity	The following summarizes stock option activity for the years ended December 31, 2022 and 2021: ​ Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2020 638,664 $ 3.54 8.6 $ 653,991 Options granted 906,600 6.27 3.3 Options exercised (86,676 ) 3.6 511,339 Options forfeited (596,100 ) 6.42 1,460,581 Outstanding at December 31, 2021 862,488 $ 4.41 8.2 $ 8,088,660 Options granted 89,415 13.04 9.9 Options exercised (56,280 ) 4.62 393,534 Options forfeited (13,998 ) 4.40 124,874 Outstanding at December 31, 2022 881,625 $ 5.27 7.5 $ 3,871,667 Options vested and exercisable at December 31, 2022 600,396 $ 4.47 7.3 $ 2,878,478
Restricted Stock Awards Activities	Nonvested restricted stock for the years ended December 31, 2022 and 2021 is summarized in the following table. ​ Number of Shares Weighted Average Grant Price Unvested as of December 31, 2020 621,666 $ 3.64 Vested (621,666 ) 3.64 Unvested as of December 31, 2021 — $ — Granted 123,055 $ 12.28 Unvested as of December 31, 2022 123,055 $ 12.28
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 Years Ended December 31, ($ in thousands) 2022 2021 Pre-tax Stock options $ 320 $ 934 Restricted shares 458 1,166 Total $ 778 $ 2,100 After-tax Stock options $ 322 $ 778 Restricted shares 344 1,166 Total $ 666 $ 1,944

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 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 Years Ended December 31, ($ in thousands) 2022 2021 Beginning balance $ 5,900 $ 3,770 Distributions from BFG (622 ) (861 ) Change in fair value of BFG (478 ) 2,991 Ending balance $ 4,800 $ 5,900
Carrying Amount and Fair Value of Financial Instruments	The table below presents the carrying amount and fair value of the Company’s financial instruments: ​ December 31, 2022 December 31, 2021 ($ in thousands) Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents 1 $ 100,567 $ 100,567 $ 85,754 $ 85,754 Investment securities held-to-maturity 2 14,292 12,728 11,423 11,332 Investment in FHLB stock 2 449 449 378 378 Loans held for investment 3 224,217 237,225 198,102 197,412 Loans held-for-sale 2 23,589 23,586 60,748 60,743 Accrued interest receivable 2 1,818 1,818 1,548 1,548 SBA servicing asset 2 5,210 5,210 3,938 3,938 Investment in BFG 3 4,800 4,800 5,900 5,900 Financial liabilities: Total deposits 2 242,998 221,287 251,892 249,488 Accrued interest payable 2 54 54 48 48 PPP Liquidity Facility 2 314 314 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 December 31, 2022 Nonrecurring assets Impaired loans $ 450 $ — $ — $ 450 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 during the years ended December 31, 2022 and 2021, along with the valuation techniques used, are shown in the following table: ($ in thousands) Fair Value Valuation Technique Unobservable Input Range (Weighted Average) December 31, 2022 Impaired loans $ 450 Market comparable Adjustment to appraisal value 0.20 % ​ 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 in BFG Level 3 recurring asset as of December 31, 2022 and as of December 31, 2021 are shown in the following table: December 31, 2022 December 31, 2021 ($ in thousands) Range (Weighted Average) Range (Weighted Average) Discounted Cash Flows Revenue growth rate 10.8 % 16.6 % Expense growth rate 11.5 % 16.3 % Discount rate 30.0 % 25.0 % Guideline Public Company Multiples of enterprise value 3.0x to 5.0x 4.0x to 6.0x

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Taxes [Abstract]
Components Income Tax Expense	The components of income tax expense consist of the following: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Current tax expense Federal $ 8,315 $ 9,589 State 1,945 2,471 Deferred tax expense (benefit) Federal 553 (1,156 ) State 103 (215 ) Income tax expense $ 10,916 $ 10,689
Components of Deferred Income Tax Assets and Liabilities	The components of net deferred income tax assets and liabilities on the balance sheet at December 31, 2022 and 2021, are as follows: ​ December 31, ($ in thousands) 2022 2021 Deferred tax assets Operating lease liabilities $ 1,749 $ — Allowance for loan losses 1,639 1,630 Accrued bonuses 61 72 Nonqualified stock options 124 156 Restricted stock 114 — Other 290 250 Total deferred tax assets 3,977 2,108 Deferred tax liabilities ROU asset (1,256 ) — Intangibles (3 ) (3 ) Net book value of fixed assets (1,230 ) (217 ) Other (321 ) (65 ) Total deferred tax liabilities (2,810 ) (285 ) Net deferred tax asset $ 1,167 $ 1,823
Reconciliation of Income Tax Expense	The income tax expense recorded differs from the expected income tax expense and the reconciliation of these differences is as follows at December 31, 2022 and 2021: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Federal income tax expense at statutory rates $ 7,567 $ 8,877 Effect of permanent differences 811 50 State income tax expense, net 1,560 1,662 Other 978 100 Income tax expense $ 10,916 $ 10,689

Earnings per Share (Tables)

Earnings per Share (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings per Share [Abstract]
Basic and Diluted EPS	The following table is a reconciliation of the components used to derive basic and diluted EPS for the years ended December 31, 2022 and 2021 ($ in thousands, except share and per share amounts): ​ For the Years Ended December 31, ​ 2022 2021 Numerator: Net income $ 25,115 $ 31,583 Amount allocated to participating common shareholders (1) (193 ) (1,780 ) Net income allocate to common shareholders $ 24,922 $ 29,803 Denominator: Weighted average shares outstanding, basic 12,729,898 8,669,724 Weighted average effect of dilutive securities: Stock options 508,056 371,240 Warrants 119,068 67,199 Weighted average shares outstanding, diluted 13,357,022 9,108,163 Earnings per share, basic $ 1.96 $ 3.44 Earnings per share, diluted $ 1.87 $ 3.27 (1) Represents earnings attributable to holders of unvested restricted stock issued outside of the Plan to the Company’s employees.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue Recognition [Abstract]
Disaggregation of Revenue	The following is a summary of the Company’s revenue disaggregated by contracts with customers and revenue outside the scope of ASC 606: ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Interest income Interest income, not-in-scope Interest and fees on loans $ 50,941 $ 49,135 Interest on securities 208 47 Other interest income 1,180 61 Total interest income $ 52,329 $ 49,243 Non-interest income Non-interest income, in-scope Service charges on deposit accounts $ 30 $ 31 Strategic Program set up fees 195 96 Strategic Program fees 21,438 17,119 Non-interest income, not in-scope Gain on sale of loans, net 13,550 9,689 SBA loan servicing fees 1,603 1,156 Unrealized gain on investment in BFG (478 ) 2,991 Other miscellaneous income 239 18 Strategic Program service charges 834 744 Total non-interest income $ 37,411 $ 31,844

Condensed Financial Statement_2

Condensed Financial Statements of Parent (Tables)	12 Months Ended
	Dec. 31, 2022
Condensed Financial Statements of Parent [Abstract]
Balance Sheets	Balance Sheets ​ December 31, ($ in thousands) 2022 2021 ASSETS Cash and cash equivalents $ 36,321 $ 38,697 Investment in subsidiary bank 100,276 71,186 Investment in Business Funding Group (BFG), at fair value 4,800 5,900 Investment in FinWise Investments, LLC 271 80 Deferred taxes, net 127 82 Other assets 37 322 Total assets $ 141,832 $ 116,267 LIABILITIES AND SHAREHOLDERS’ EQUITY Income taxes payable 1,077 233 Other liabilities 296 592 Shareholders’ equity 140,459 115,442 Total liabilities and shareholders’ equity $ 141,832 $ 116,267
Statement of Income	Statement of Income ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Non-interest income Change in fair value on investment in BFG $ (478 ) $ 2,991 Equity in undistributed earnings of subsidiary 29,090 30,469 Total non-interest income 28,612 33,460 Non-interest expense Salaries and employee benefits 2,316 742 Professional services 1,990 320 Other operating expenses 470 360 Total non-interest expense 4,776 1,422 Income before income tax expense 23,836 32,038 Provision for income taxes (1,279 ) 455 Net income $ 25,115 $ 31,583
Statements of Cash Flows	Statements of Cash Flows ​ For the Years Ended December 31, ($ in thousands) 2022 2021 Cash flows from operating activities: Net income $ 25,115 $ 31,583 Adjustments to reconcile net income to net cash from operating activities Change in fair value of BFG 478 (2,991 ) Stock-based compensation expense 778 2,100 Deferred income tax expense 844 222 Net changes in: Income tax receivable (45 ) (128 ) Other assets 285 (217 ) Other liabilities (296 ) (288 ) Net cash provided by operating activities 27,159 30,281 Cash flows from investing activities: Investment in subsidiary bank (29,090 ) (30,469 ) Investment in FinWise Investments, LLC (191 ) (80 ) Distributions of BFG 622 861 Net cash used in investing activities (28,659 ) (29,688 ) Cash flows from financing activities: Proceeds from exercise of stock options 260 311 Proceeds from initial public offering, net — 35,576 Common stock repurchased (1,136 ) — Net cash provided by (used in) financing activities (876 ) 35,887 Net change in cash and cash equivalents (2,376 ) 36,480 Cash and cash equivalents, beginning of year 38,697 2,217 Cash and cash equivalents, end of year $ 36,321 $ 38,697

Summary of Significant Accoun_4

Summary of Significant Accounting Policies, Nature of Business and Organization (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Nov. 23, 2021	Jul. 15, 2021	Dec. 31, 2022	Dec. 31, 2021	Nov. 19, 2021	Jul. 28, 2021
Nature of Business and Organization [Abstract]
Common stock, shares issued (in shares)			12,831,345	12,772,010
Common stock, par value (in dollars per share)			$ 0.001	$ 0.001		$ 0.001
Net proceeds	$ 39,300		$ 0	$ 35,576
Other expenses	$ 35,600
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
Utah Community Bank [Member]
Nature of Business and Organization [Abstract]
Percentage of business acquired			100%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies, Stock Split and Changes in Authorized Shares (Details)	Jul. 26, 2021	Dec. 31, 2022 $ / shares shares	Dec. 31, 2021 $ / shares shares	Jul. 28, 2021 $ / shares shares
Stock Split and Changes in Authorized Shares [Abstract]
Stock split ratio	6
Capital stock, shares authorized (in shares)				44,000,000
Common stock, shares authorized (in shares)		40,000,000	40,000,000	40,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)		4,000,000	4,000,000	4,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001	$ 0.001

Summary of Significant Accoun_6

Summary of Significant Accounting Policies, Paycheck Protection Program (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Paycheck Protection Program [Abstract]
Amount of loans	$ 260,190	$ 265,788
Principal outstanding	$ 224,217	$ 198,102
PPP Loans [Member]
Paycheck Protection Program [Abstract]
Percentage of guaranteed payments by SBA	100%
Amount of loans	$ 126,600
Forgiveness of loan received from SBA	125,500
Amount of principal payments made	500
Principal outstanding	600
Acceleration of deferred loan fees	$ 1,500
PPP Loans [Member] | Minimum [Member]
Paycheck Protection Program [Abstract]
Percentage of loan processing fee	1%
PPP Loans [Member] | Maximum [Member]
Paycheck Protection Program [Abstract]
Percentage of loan processing fee	5%

Summary of Significant Accoun_7

Summary of Significant Accounting Policies, Out-of-Period Adjustment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2022	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Out-of-Period Adjustment [Abstract]
Interest and fee on loans and loans receivable, net				$ 50,941	$ 49,135
After-tax income				25,115	31,583
Gain on sale of loans	$ 2,100			13,550	9,689
Gain on sale of loans, net	1,500			13,550	9,689
Other Assets [Member]
Out-of-Period Adjustment [Abstract]
New loan trailing fee asset	$ 2,300			$ 2,300
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)
After-tax income			$ (900)
Gain on sale of loans			1,200		900
Gain on sale of loans, net			$ 900		$ 600

Summary of Significant Accoun_8

Summary of Significant Accounting Policies, Investments (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Investments [Abstract]
Available for sale securities	$ 0	$ 0

Summary of Significant Accoun_9

Summary of Significant Accounting Policies, Nonaccrual Loans (Details)	12 Months Ended
	Dec. 31, 2022
Nonaccrual Loans [Abstract]
Past due period after which loans are placed on nonaccrual status	90 days

Summary of Significant Accou_10

Summary of Significant Accounting Policies, Stock-Based Compensation (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Summary of Assumptions Used in Determining Black-Scholes Option Pricing Model for Options Granted [Abstract]
Risk-free interest rate	3.10%
Expected dividend yield	0%	0%
Minimum [Member]
Summary of Assumptions Used in Determining Black-Scholes Option Pricing Model for Options Granted [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 in Determining Black-Scholes Option Pricing Model for Options Granted [Abstract]
Risk-free interest rate		1.30%
Expected term in years	6 years 6 months	7 years 6 months
Expected volatility	46.70%	47.60%

Summary of Significant Accou_11

Summary of Significant Accounting Policies, Stock Repurchase Program (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 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)	120,000
Common stock repurchased, value	$ 1,136

Summary of Significant Accou_12

Summary of Significant Accounting Policies, Segment Reporting (Details)	12 Months Ended
	Dec. 31, 2022 Segment
Segment Reporting [Abstract]
Number of operating segment	1

Summary of Significant Accou_13

Summary of Significant Accounting Policies, Recent Accounting Pronouncements (Details) - Forecast [Member]	12 Months Ended
	Dec. 31, 2023
Minimum [Member]
Recent Accounting Pronouncements [Abstract]
Increase in Allowance for Credit Loss and Reserve for Unfunded Loan Commitments	2%
Maximum [Member]
Recent Accounting Pronouncements [Abstract]
Increase in Allowance for Credit Loss and Reserve for Unfunded Loan Commitments	5%

Investments, Held-to-Maturity S

Investments, Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Securities held-to-maturity [Abstract]
Amortized cost	$ 14,292	$ 11,423
Estimated fair value	12,728	11,332
Mortgage-Backed Securities [Member]
Securities held-to-maturity [Abstract]
Amortized cost	14,292	11,423
Unrealized gain	5	23
Unrealized loss	(1,569)	(114)
Estimated fair value	$ 12,728	$ 11,332

Investments, Unrealized Loss Po

Investments, Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 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	$ 5,126	$ 8,961
Less Than 12 Months, Unrealized Losses	(286)	(114)
12 Months or More, Fair Value	6,671	0
12 Months or More, Unrealized Losses	(1,283)	0
Total, Fair Value	11,797	8,961
Total, Unrealized Losses	$ (1,569)	$ (114)

Investments, Amortized Cost and

Investments, Amortized Cost and Estimated Market Value of Debt Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	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	3,388	1,541
Due after ten years	10,904	9,882
Amortized cost	14,292	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	3,202	1,548
Due after ten years	9,526	9,784
Estimated fair value	12,728	11,332
Sale of investment securities	0	0
Transfer of investment securities	0	0
Realized gains or losses	0	$ 0
Asset Pledged as Collateral [Member] | Federal Reserve Bank Credit Lines [Member]
Securities Held-to-Maturity, Amortized Cost [Abstract]
Amortized cost	$ 12,400

Investments, FHLB Stock (Detail

Investments, FHLB Stock (Details) - USD ($) $ in Thousands	Dec. 31, 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	4%
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	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Loans to Major Risk Category [Abstract]
Total loans	$ 260,190	$ 265,788
Loans held-for-sale	(23,589)	(60,748)
Total loans held for investment	236,601	205,040
Deferred loan costs (fees), net	(399)	2,917
Allowance for loan losses	(11,985)	(9,855)	$ (6,199)
Net loans	224,217	198,102
Commercial, Non-Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	11,484	3,428
Total loans held for investment	11,484	3,428
Allowance for loan losses	(401)	(132)	(232)
Residential Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	37,815	27,108
Total loans held for investment	37,815	27,108
Allowance for loan losses	(497)	(352)	(855)
Strategic Program Loans [Member]
Loans to Major Risk Category [Abstract]
Total loans	47,848	85,850
Loans held-for-sale	(23,589)	(60,748)
Total loans held for investment	24,259	25,102
Allowance for loan losses	(6,701)	(6,549)	(4,111)
Commercial Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	12,063	2,436
Total loans held for investment	12,063	2,436
Allowance for loan losses	(27)	(21)	(19)
Consumer [Member]
Loans to Major Risk Category [Abstract]
Total loans	5,808	4,574
Total loans held for investment	5,808	4,574
Allowance for loan losses	(65)	(62)	(62)
SBA [Member]
Loans to Major Risk Category [Abstract]
Total loans	145,172	142,392
Total loans held for investment	145,172	142,392
Allowance for loan losses	$ (4,294)	$ (2,739)	$ (920)

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses, Strategic Program Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Strategic Program Loans retained and Held-for-sale [Abstract]
Retained loans	$ 236,601	$ 205,040
Loans held-for-sale	23,589	60,748
Total loans	260,190	265,788
Strategic Program Loans [Member]
Strategic Program Loans [Abstract]
Cash held in reserve by strategic programs	16,600	39,600
Strategic Program Loans retained and Held-for-sale [Abstract]
Retained loans	24,259	25,102
Loans held-for-sale	23,589	60,748
Total loans	$ 47,848	$ 85,850

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses, Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 9,855	$ 6,199
Charge-offs	(12,406)	(4,905)
Recoveries	1,017	522
Provision (recapture) for loan and lease losses	13,519	8,039
Ending balance	11,985	9,855
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	11,985	9,855
Total loans	236,601	205,040
Ending balance individually evaluated for impairment	450	972
Ending balance collectively evaluated for impairment	236,151	204,068
Commercial, Non-Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	132	232
Charge-offs	0	(63)
Recoveries	2	103
Provision (recapture) for loan and lease losses	267	(140)
Ending balance	401	132
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	401	132
Total loans	11,484	3,428
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	11,484	3,428
Residential Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	352	855
Charge-offs	0	0
Recoveries	0	0
Provision (recapture) for loan and lease losses	145	(503)
Ending balance	497	352
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	497	352
Total loans	37,815	27,108
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	37,815	27,108
Strategic Program Loans [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	6,549	4,111
Charge-offs	(11,948)	(4,684)
Recoveries	885	372
Provision (recapture) for loan and lease losses	11,215	6,750
Ending balance	6,701	6,549
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	6,701	6,549
Total loans	24,259	25,102
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	24,259	25,102
Commercial Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	21	19
Charge-offs	0	0
Recoveries	0	0
Provision (recapture) for loan and lease losses	6	2
Ending balance	27	21
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	27	21
Total loans	12,063	2,436
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	12,063	2,436
Consumer [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	62	62
Charge-offs	(66)	(4)
Recoveries	64	1
Provision (recapture) for loan and lease losses	5	3
Ending balance	65	62
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	65	62
Total loans	5,808	4,574
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	5,808	4,574
SBA [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	2,739	920
Charge-offs	(392)	(154)
Recoveries	66	46
Provision (recapture) for loan and lease losses	1,881	1,927
Ending balance	4,294	2,739
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	4,294	2,739
Total loans	145,172	142,392
Ending balance individually evaluated for impairment	450	972
Ending balance collectively evaluated for impairment	$ 144,722	$ 141,420

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	$ 450	$ 972
Unpaid Principal Balance	450	972
Related Allowance	0	0
Average Recorded Investment	711	1,134
Interest Income Recognized	36	47
Impaired loans with an allowance recorded	0	0
Commercial, Non-Real Estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Residential Real Estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	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	450	972
Unpaid Principal Balance	450	972
Related Allowance	0	0
Average Recorded Investment	711	945
Interest Income Recognized	$ 36	$ 47

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses, Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Non-accrual and Past Due Loans [Abstract]
Non-accrual	$ 0	$ 657
Total loans	260,190	265,788
Loans in non-accrual without an allowance	100	100
Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	257,182	263,079
30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	2,013	1,308
60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	802	690
90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	193	54
Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	3,008	2,052
Commercial, Non-Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	11,484	3,428
Commercial, Non-Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	11,484	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	37,815	27,108
Residential Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	37,387	27,108
Residential Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	428	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	428	0
Strategic Program Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	47,848	85,850
Strategic Program Loans [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	45,669	84,065
Strategic Program Loans [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	1,184	1,041
Strategic Program Loans [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	802	690
Strategic Program Loans [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	193	54
Strategic Program Loans [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	2,179	1,785
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	12,063	2,436
Commercial Real Estate [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	12,063	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	5,808	4,574
Consumer [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	5,776	4,554
Consumer [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	32	20
Consumer [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Consumer [Member] | 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Consumer [Member] | Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	32	20
SBA [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	657
Total loans	145,172	142,392
SBA [Member] | Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	144,803	141,488
SBA [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	369	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	$ 369	$ 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	Dec. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	$ 260,190	$ 265,788
Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	211,319	177,485
Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	573	1,481
Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	450	972
Commercial, Non-Real Estate [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	11,484	3,428
Commercial, Non-Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	11,484	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	37,815	27,108
Residential Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	37,815	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	12,063	2,436
Commercial Real Estate [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	12,063	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	5,808	4,574
Consumer [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	5,808	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	47,848	85,850
SBA [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	145,172	142,392
SBA [Member] | Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	144,149	139,985
SBA [Member] | Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	573	1,435
SBA [Member] | Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	$ 450	$ 972

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses, TDR's (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) Contract Loan	Dec. 31, 2021 USD ($) Contract Loan
Modified Troubled Debt Restructuring [Abstract]
Number of new loans modification | Loan	0	0
Commitments to lend additional funds to debtors	$ 0	$ 0
Number of principal charge-offs related to TDRs | Loan	1
TDR loans	$ 10
Charge-offs related to TDRs		$ 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	$ 94	$ 106
Post-modification outstanding recorded investment	$ 94	$ 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		12 Months Ended
		Dec. 31, 2022 USD ($) Lease	Dec. 31, 2021 USD ($)
Premises and equipment [Abstract]
Total premises and equipment		$ 11,735	$ 4,632
Less accumulated depreciation		(2,257)	(1,347)
Premises and equipment, net		9,478	3,285
Depreciation expense		1,000	300
Rental income from operating leases		200
Future Minimum Annual Undiscounted Rental Payments for Operating Leases [Abstract]
Year Ended December 31, 2023		850
Year Ended December 31, 2024		1,104
Year Ended December 31, 2025		1,086
Year Ended December 31, 2026		1,118
Year Ended December 31, 2027		1,152
Thereafter		2,203
Total		7,513
Less present value discount		(493)
Operating lease liabilities		$ 7,020	0
Number of leases entered into during period | Lease		1
Information Regarding Lease Assets and Liabilities [Abstract]
Weighted-average remaining lease term - operating leases (in years)		6 years 8 months 12 days
Weighted-average discount rate - operating leases		1.90%
Components of Lease Expense [Abstract]
Operating leases, operating lease cost		$ 1,044
Operating leases, variable lease cost		16
Operating lease expense		1,060
Short-term lease rent expense		38
Net rent expense		1,098	500
Leasehold Improvements [Member]
Premises and equipment [Abstract]
Total premises and equipment		3,720	80
Furniture, Fixtures and Equipment [Member]
Premises and equipment [Abstract]
Total premises and equipment	[1]	6,501	2,219
Commercial Operating Leases [Member]
Premises and equipment [Abstract]
Total premises and equipment		2,800
Premises and equipment, net		2,700
Construction in Progress [Member]
Premises and equipment [Abstract]
Total premises and equipment		$ 1,514	$ 2,333
[1]The Furniture, fixtures, and equipment include commercial operating leases of $ 2.8 2.7

Deposits (Details)

Deposits (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Major classes of deposits [Abstract]
Demand	$ 129,563,000	$ 115,947,000
Savings	8,289,000	6,685,000
Money markets	10,882,000	31,076,000
Time certificates of deposit	94,264,000	98,184,000
Total deposits	242,998,000	251,892,000
Maturities of time deposits [Abstract]
Year Ended December 31, 2023	57,721,000
Year Ended December 31, 2024	17,514,000
Year Ended December 31, 2025	9,314,000
Year Ended December 31, 2026	8,160,000
Year Ended December 31, 2027	1,555,000
Thereafter	0
Total	94,264,000	98,184,000
FDIC insurance limit on deposit accounts	250,000	250,000
Time deposits equal or greater than FDIC insurance limits	$ 6,400,000	$ 3,700,000

SBA Servicing Asset (Details)

SBA Servicing Asset (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
SBA Servicing Asset [Abstract]
SBA loans serviced for others	$ 318,600	$ 210,200
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning balance	3,938	2,415
Additions to servicing asset	4,087	3,048
Recovery (Impairment) of SBA servicing asset	(1,728)	(800)
Amortization of servicing asset	(1,087)	(725)
Ending balance	5,210	3,938
Fair market value of SBA servicing asset	$ 5,200	$ 3,900
Weighted average prepayment rate	14.24%	14.37%
Weighted average term	4 years 5 months 12 days	4 years 7 days
Weighted average discount rate	18.79%	11.38%

Capital Requirements, Actual Ca

Capital Requirements, Actual Capital Amounts and Ratios (Details) $ in Thousands		Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Leverage Ratio (CBLR Election), Amount [Abstract]
Actual Amount		$ 91,674	$ 65,503
Well-Capitalized Requirement Amount	[1]	$ 32,898	$ 31,442
Leverage Ratio (CBLR Election), Ratio [Abstract]
Actual Ratio		0.251	0.177
Well Capitalized Requirement Ratio		0.09	0.085
[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% 8.5% 9%

Commitments and Contingent Li_3

Commitments and Contingent Liabilities, Federal Home Loan Bank Secured Line of Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Apr. 20, 2020
Federal Home Loan Bank Secured Line of Credit [Abstract]
Outstanding line of credit	$ 314	$ 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	36,400
Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Outstanding line of credit	0
Federal Reserve Bank borrowings on collateral	10,600
Zion Bank [Member] | Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Unsecured line	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
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	2,600	4,100
Outstanding line of credit	0
Loans pledged to secure line of credit	$ 4,000	$ 5,400

Commitments and Contingent Li_4

Commitments and Contingent Liabilities, Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	$ 19,822	$ 17,038
Commercial Real Estate [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	17,886	15,402
Revolving, Open-End Lines of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	1,683	1,259
Other Unused Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	$ 253	$ 377

Investment in Business Fundin_2

Investment in Business Funding Group, LLC (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2019 USD ($) $ / shares shares	Jul. 28, 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		$ 0.001
Business Funding Group, LLC [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest			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 | $	$ 0.6	$ 0.9
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) - Employee [Member] - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2018	Apr. 19, 2022	Jun. 20, 2019	Apr. 20, 2017
2019 Plan [Member]
Stock-Based Compensation [Abstract]
Number of shares authorized for issuance (in shares)	1,280,000		500,000	780,000
Future awards life	10 years
Number of shares available for grant (in shares)	621,472
2016 Plan [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] | Minimum [Member]
Stock-Based Compensation [Abstract]
Vesting period	1 year
2019 Plan and 2016 Plan [Member] | Maximum [Member]
Stock-Based Compensation [Abstract]
Future awards life	10 years
Vesting period	5 years

Stock-Based Compensation, Assum

Stock-Based Compensation, Assumptions Used (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Option-pricing model assumptions [Abstract]
Risk-free interest rate	3.10%
Expected dividend yield	0%	0%
Minimum [Member]
Option-pricing model assumptions [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]
Option-pricing model assumptions [Abstract]
Risk-free interest rate		1.30%
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 ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Aggregate Intrinsic Value [Abstract]
Weighted average grant-date fair value of options granted (in dollars per share)	$ 6.26	$ 1.55
Proceeds from exercise of stock options	$ 260,000	$ 311,000
Stock Options [Member]
Stock Options [Roll Forward]
Outstanding, beginning of year (in shares)	862,488	638,664
Option granted (in shares)	89,415	906,600
Options exercised (in shares)	(56,280)	(86,676)
Options forfeited (in shares)	(13,998)	(596,100)
Outstanding, end of period (in shares)	881,625	862,488	638,664
Options vested and exercisable, end of year (in shares)	600,396
Weighted Average Exercise Price [Abstract]
Outstanding, beginning of year (in dollars per share)	$ 4.41	$ 3.54
Options granted (in dollars per share)	13.04	6.27
Options exercised (in dollars per share)	4.62	3.6
Options forfeited (in dollars per share)	4.4	6.42
Outstanding, end of period (in dollars per share)	5.27	$ 4.41	$ 3.54
Options vested and exercisable, end of period (in dollars per share)	$ 4.47
Weighted Average Remaining Contractual Life [Abstract]
Outstanding	7 years 6 months	8 years 2 months 12 days	8 years 7 months 6 days
Options granted	9 years 10 months 24 days	3 years 3 months 18 days
Options vested and exercisable	7 years 3 months 18 days
Aggregate Intrinsic Value [Abstract]
Outstanding, beginning of year	$ 8,088,660	$ 653,991
Options exercised	393,534	511,339
Options forfeited	124,874	1,460,581
Outstanding, end of year	3,871,667	$ 8,088,660	$ 653,991
Options vested and exercisable	$ 2,878,478

Stock-Based Compensation, Restr

Stock-Based Compensation, Restricted Stock (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of Shares [Roll Forward]
Unvested as of beginning of year (in shares)	0	621,666
Vested (in shares)		(621,666)
Granted (in shares)	123,055
Unvested as of end of year (in shares)	123,055	0
Weighted Average Grant Price [Abstract]
Unvested as of beginning of year (in dollars per share)	$ 0	$ 3.64
Vested (in dollars per share)		3.64
Granted (in dollars per share)	12.28
Unvested as of end of year (in dollars per share)	$ 12.28	$ 0
Fair value of stock vested	$ 5.4	$ 2.3
Vesting in 2023 [Member]
Number of Shares [Roll Forward]
Unvested as of end of year (in shares)	59,048
Vesting in 2024 [Member]
Number of Shares [Roll Forward]
Unvested as of end of year (in shares)	32,003
Vesting in 2025 [Member]
Number of Shares [Roll Forward]
Unvested as of end of year (in shares)	32,004

Stock-Based Compensation, Sto_2

Stock-Based Compensation, Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	$ 778	$ 2,100
After-tax stock-based compensation expense	666	1,944
Salaries and Employee Benefits [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	800	1,600
Other Operating Expenses [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	0	500
Stock Options [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	320	934
After-tax stock-based compensation expense	322	778
Unrecognized stock-based compensation expense	$ 500
Remaining weighted average recognition period	1 year 9 months 18 days
Restricted Stock [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	$ 458	1,166
After-tax stock-based compensation expense	344	$ 1,166
Unrecognized stock-based compensation expense	$ 1,100
Remaining weighted average recognition period	1 year 4 months 24 days

Fair Value of Financial Instr_3

Fair Value of Financial Instruments, Investment in BFG Activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2019
Investment in BFG Activity [Abstract]
Beginning balance	$ 5,900	$ 3,770
Distributions from BFG	(622)	(861)
Change in fair value of BFG	(478)	2,991
Beginning balance	$ 4,800	$ 5,900
Lack of Marketability Discount [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investment, measurement input			0.20
Discount to Non-Voting Shares [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investment, measurement input			0.045

Fair Value of Financial Instr_4

Fair Value of Financial Instruments, Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financial assets [Abstract]
Investment securities held-to-maturity	$ 12,728	$ 11,332
SBA servicing asset	5,200	3,900
Investment in BFG	4,800	5,900	$ 3,770
Level 1 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash and cash equivalents	100,567	85,754
Level 1 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	100,567	85,754
Level 2 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Investment securities held-to-maturity	14,292	11,423
Investment in FHLB stock	449	378
Loans held-for-sale	23,589	60,748
Accrued interest receivable	1,818	1,548
SBA servicing asset	5,210	3,938
Financial liabilities [Abstract]
Total deposits	242,998	251,892
Accrued interest payable	54	48
PPP Liquidity Facility	314	1,050
Level 2 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Investment securities held-to-maturity	12,728	11,332
Investment in FHLB stock	449	378
Loans held-for-sale	23,586	60,743
Accrued interest receivable	1,818	1,548
SBA servicing asset	5,210	3,938
Financial liabilities [Abstract]
Total deposits	221,287	249,488
Accrued interest payable	54	48
PPP Liquidity Facility	314	1,050
Level 3 [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Loans held for investment	224,217	198,102
Investment in BFG	4,800	5,900
Level 3 [Member] | Estimated Fair Value [Member]
Financial assets [Abstract]
Loans held for investment	237,225	197,412
Investment in BFG	$ 4,800	$ 5,900

Fair Value of Financial Instr_5

Fair Value of Financial Instruments, Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Level 3 [Member]
Nonrecurring assets [Abstract]
Impaired loans	$ 450	$ 972
Nonrecurring Basis [Member]
Nonrecurring assets [Abstract]
Impaired loans	450	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	$ 450	$ 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	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans	$ 450	$ 972
Market Comparable [Member] | Adjustment to Appraisal Value [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, measurement input	0.002	0.005

Fair Value of Financial Instr_7

Fair Value of Financial Instruments, Investment in BFG Level 3 Recurring Asset (Details)	Dec. 31, 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	0.108	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	0.115	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	5	6

Income Taxes, Components Income

Income Taxes, Components Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current tax expense [Abstract]
Federal	$ 8,315	$ 9,589
State	1,945	2,471
Deferred tax expense (benefit) [Abstract]
Federal	553	(1,156)
State	103	(215)
Income tax expense	$ 10,916	$ 10,689

Income Taxes, Components of Def

Income Taxes, Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets [Abstract]
Operating lease liabilities	$ 1,749	$ 0
Allowance for loan losses	1,639	1,630
Accrued bonuses	61	72
Nonqualified stock options	124	156
Restricted stock	114	0
Other	290	250
Total deferred tax assets	3,977	2,108
Deferred tax liabilities [Abstract]
ROU asset	(1,256)	0
Intangibles	(3)	(3)
Net book value of fixed assets	(1,230)	(217)
Other	(321)	(65)
Total deferred tax liabilities	(2,810)	(285)
Net deferred tax asset	$ 1,167	$ 1,823

Income Taxes, Reconciliation of

Income Taxes, Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Expense [Abstract]
Federal income tax expense at statutory rates	$ 7,567	$ 8,877
Effect of permanent differences	811	50
State income tax expense, net	1,560	1,662
Other	978	100
Income tax expense	10,916	10,689
Interest or penalties	0	0
Unrecognized tax benefits	$ 0	$ 0

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Aug. 16, 2022
Stock Repurchases [Abstract]
Common stock repurchase program, shares authorized to be purchases (in shares)		644,241
Common stock repurchased (in shares)	120,000
Common stock repurchased, value	$ 1,136

Retirement Plan (Details)

Retirement Plan (Details) - 401(K) Plan [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Defined Contribution Plan [Abstract]
Minimum age of employees to participate in plan	21 years
Minimum required service period to participate in plan	1 year
Profit sharing contributions	$ 0.5	$ 0.4

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Millions	Oct. 21, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
Related Parties [Abstract]
Loans outstanding to related parties		$ 0	$ 0
Deposits		$ 1.2	$ 0.5
Mr. Alan Weichselbaum [Member]
Related Parties [Abstract]
Proceeds from collection of promissory note to related party	$ 0.1
BFG [Member]
Equity Method Investments [Abstract]
Membership interest				10%

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021
Numerator [Abstract]
Net income		$ 25,115	$ 31,583
Amount allocated to participating common shareholders	[1]	(193)	(1,780)
Net income allocate to common shareholders		$ 24,922	$ 29,803
Denominator [Abstract]
Weighted average shares outstanding, basic (in shares)		12,729,898	8,669,724
Weighted average effect of dilutive securities [Abstract]
Stock options (in shares)		508,056	371,240
Warrants (in shares)		119,068	67,199
Weighted average shares outstanding, diluted (in shares)		13,357,022	9,108,163
Earnings per share, basic (in dollars per share)		$ 1.96	$ 3.44
Earnings per share, diluted (in dollars per share)		$ 1.87	$ 3.27
Anti-dilutive securities excluded from earnings per share (in shares)		0	0
[1]Represents earnings attributable to holders of unvested restricted stock issued outside of the Plan to the Company’s employees.

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Interest income, not-in-scope [Abstract]
Interest and fees on loans	$ 50,941	$ 49,135
Interest on securities	208	47
Other interest income	1,180	61
Total interest income	52,329	49,243
Non-interest income [Abstract]
Total non-interest income	37,411	31,844
Service Charges on Deposit Accounts [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	30	31
Strategic Program Set Up Fees [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	195	96
Strategic Program Fees [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	21,438	17,119
Gain on Sale of Loans, Net [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	13,550	9,689
SBA Loan Servicing Fees [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	1,603	1,156
Unrealized Gain on Investment in BFG [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	(478)	2,991
Other Miscellaneous Income [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	239	18
Strategic Program Service Charges [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	$ 834	$ 744

Condensed Financial Statement_3

Condensed Financial Statements of Parent, Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
ASSETS [Abstract]
Cash and cash equivalents	$ 100,567	$ 85,754
Investment in Business Funding Group (BFG), at fair value	4,800	5,900
Deferred taxes, net	1,167	1,823
Other assets	10,152	7,315
Total assets	400,780	380,214
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Income taxes payable	1,077	233
Other liabilities	8,858	11,549
Shareholders' equity	140,459	115,442	$ 45,872
Total liabilities and shareholders' equity	400,780	380,214
Parent Company [Member]
ASSETS [Abstract]
Cash and cash equivalents	36,321	38,697
Investment in subsidiary bank	100,276	71,186
Investment in Business Funding Group (BFG), at fair value	4,800	5,900
Investment in FinWise Investments, LLC	271	80
Deferred taxes, net	127	82
Other assets	37	322
Total assets	141,832	116,267
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Income taxes payable	1,077	233
Other liabilities	296	592
Shareholders' equity	140,459	115,442
Total liabilities and shareholders' equity	$ 141,832	$ 116,267

Condensed Financial Statement_4

Condensed Financial Statements of Parent, Statement of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Non-interest income [Abstract]
Change in fair value on investment in BFG	$ (478)	$ 2,991
Total non-interest income	37,411	31,844
Non-interest expense [Abstract]
Salaries and employee benefits	24,489	21,744
Professional services	5,454	1,670
Other operating expenses	4,881	4,415
Total non-interest expense	38,756	29,511
Income before income tax expense	36,031	42,272
Provision for income taxes	10,916	10,689
Net income	25,115	31,583
Parent Company [Member]
Non-interest income [Abstract]
Change in fair value on investment in BFG	(478)	2,991
Equity in undistributed earnings of subsidiary	29,090	30,469
Total non-interest income	28,612	33,460
Non-interest expense [Abstract]
Salaries and employee benefits	2,316	742
Professional services	1,990	320
Other operating expenses	470	360
Total non-interest expense	4,776	1,422
Income before income tax expense	23,836	32,038
Provision for income taxes	(1,279)	455
Net income	$ 25,115	$ 31,583

Condensed Financial Statement_5

Condensed Financial Statements of Parent, Statements of Cash Flows (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 23, 2021	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities [Abstract]
Net income		$ 25,115	$ 31,583
Adjustments to reconcile net income to net cash from operating activities [Abstract]
Change in fair value of BFG		478	(2,991)
Stock-based compensation expense		778	2,100
Deferred income tax expense		656	(1,371)
Net changes in [Abstract]
Other assets		(299)	(1,669)
Other liabilities		(1,847)	5,817
Net cash provided by (used in) operating activities		61,153	(9,232)
Cash flows from investing activities [Abstract]
Investment in FinWise Investments, LLC		(191)	(80)
Distributions of BFG		622	861
Net cash provided by (used in) investing activities		(35,834)	24,257
Cash flows from financing activities [Abstract]
Proceeds from exercise of stock options		260	311
Proceeds from initial public offering, net	$ 39,300	0	35,576
Common stock repurchased		(1,136)	0
Net cash provided by (used in) financing activities		(10,506)	23,346
Net change in cash and cash equivalents		14,813	38,371
Cash and cash equivalents, beginning of the period		85,754	47,383
Cash and cash equivalents, end of the period		100,567	85,754
Parent Company [Member]
Cash flows from operating activities [Abstract]
Net income		25,115	31,583
Adjustments to reconcile net income to net cash from operating activities [Abstract]
Change in fair value of BFG		478	(2,991)
Stock-based compensation expense		778	2,100
Deferred income tax expense		844	222
Net changes in [Abstract]
Income tax receivable		(45)	(128)
Other assets		285	(217)
Other liabilities		(296)	(288)
Net cash provided by (used in) operating activities		27,159	30,281
Cash flows from investing activities [Abstract]
Investment in subsidiary bank		(29,090)	(30,469)
Investment in FinWise Investments, LLC		(191)	(80)
Distributions of BFG		622	861
Net cash provided by (used in) investing activities		(28,659)	(29,688)
Cash flows from financing activities [Abstract]
Proceeds from exercise of stock options		260	311
Proceeds from initial public offering, net		0	35,576
Common stock repurchased		(1,136)	0
Net cash provided by (used in) financing activities		(876)	35,887
Net change in cash and cash equivalents		(2,376)	36,480
Cash and cash equivalents, beginning of the period		38,697	2,217
Cash and cash equivalents, end of the period		$ 36,321	$ 38,697