0001140361-22-029649 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Aug. 15, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Document Transition Report	false
Entity File Number	001-40721
Entity Registrant Name	FINWISE BANCORP
Entity Central Index Key	0001856365
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	83-0356689
Entity Address, Address Line One	756 East Winchester, Suite 100
Entity Address, City or Town	Murray
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84107
City Area Code	801
Local Phone Number	501-7200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	FINW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,884,821

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Cash and cash equivalents
Cash and due from banks	$ 397	$ 411
Interest-bearing deposits	96,131	85,343
Total cash and cash equivalents	96,528	85,754
Investment securities held-to-maturity, at cost	12,463	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	31,599	60,748
Loans receivable, net	189,670	198,102
Premises and equipment, net	5,834	3,285
Accrued interest receivable	1,422	1,548
Deferred taxes, net	2,018	1,823
SBA servicing asset, net	4,586	3,938
Investment in Business Funding Group (BFG), at fair value	4,600	5,900
Investment in FinWise Investments, LLC	80	80
Operating lease right-of-use ("ROU") assets	6,935	0
Income tax receivable, net	1,843	0
Other assets	7,960	7,235
Total assets	365,987	380,214
Deposits
Noninterest-bearing	83,490	110,548
Interest-bearing	135,869	141,344
Total deposits	219,359	251,892
Accrued interest payable	34	48
Income taxes payable, net	0	233
PPP Liquidity Facility	376	1,050
Operating lease liabilities	7,393	0
Other liabilities	8,288	11,549
Total liabilities	235,450	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 June 30, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value, 40,000,000 shares authorized; 12,884,821 and 12,772,010 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	13	13
Additional paid-in-capital	55,015	54,836
Retained earnings	75,509	60,593
Total shareholders' equity	130,537	115,442
Total liabilities and shareholders' equity	$ 365,987	$ 380,214

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Shareholders' equity
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	12,884,821	12,772,010
Common stock, shares outstanding (in shares)	12,884,821	12,772,010

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest income
Interest and fees on loans	$ 12,864	$ 11,119	$ 26,020	$ 19,909
Interest on securities	44	6	83	12
Other interest income	105	10	133	20
Total interest income	13,013	11,135	26,236	19,941
Interest expense
Interest on deposits	244	291	505	588
Interest on PPP Liquidity Facility	0	42	1	117
Total interest expense	244	333	506	705
Net interest income	12,769	10,802	25,730	19,236
Provision for loan losses	2,913	1,536	5,860	2,169
Net interest income after provision for loan losses	9,856	9,266	19,870	17,067
Non-interest income
Strategic Program fees	6,221	3,942	12,844	6,895
Gain on sale of loans, net	2,412	2,397	7,464	5,000
SBA loan servicing fees	342	311	729	463
Change in fair value on investment in BFG	(575)	1,501	(973)	1,861
Other miscellaneous income	31	10	49	21
Total non-interest income	8,431	8,161	20,113	14,240
Non-interest expense
Salaries and employee benefits	7,182	5,488	14,274	10,383
Occupancy and equipment expenses	419	203	721	397
(Recovery) impairment of SBA servicing asset	1,135	0	1,076	0
Other operating expenses	2,283	1,388	3,996	2,962
Total non-interest expense	11,019	7,079	20,067	13,742
Income before income tax expense	7,268	10,348	19,916	17,565
Provision for income taxes	1,786	2,609	5,000	4,535
Net income	$ 5,482	$ 7,739	$ 14,916	$ 13,030
Earnings per share, basic (in dollars per share)	$ 0.43	$ 0.89	$ 1.17	$ 1.50
Earnings per share, diluted (in dollars per share)	$ 0.41	$ 0.84	$ 1.10	$ 1.45
Weighted average shares outstanding, basic (in shares)	12,716,010	8,183,774	12,698,714	8,137,736
Weighted average shares outstanding, diluted (in shares)	13,417,390	8,650,956	13,444,347	8,412,187

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Dec. 31, 2020	$ 9	$ 16,853	$ 29,010	$ 45,872
Beginning balance (in shares) at Dec. 31, 2020	8,660,334
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	1,255	0	1,255
Stock-based compensation expense (in shares)	0
Stock options exercised	$ 0	166	0	166
Stock options exercised (in shares)	55,776
Net income	$ 0	0	13,030	13,030
Ending balance at Jun. 30, 2021	$ 9	18,274	42,040	60,323
Ending balance (in shares) at Jun. 30, 2021	8,716,110
Beginning balance at Mar. 31, 2021	$ 9	18,000	34,301	52,310
Beginning balance (in shares) at Mar. 31, 2021	8,716,110
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	274	0	274
Stock-based compensation expense (in shares)	0
Net income	$ 0	0	7,739	7,739
Ending balance at Jun. 30, 2021	$ 9	18,274	42,040	60,323
Ending balance (in shares) at Jun. 30, 2021	8,716,110
Beginning balance at Dec. 31, 2021	$ 13	54,836	60,593	115,442
Beginning balance (in shares) at Dec. 31, 2021	12,772,010
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	139	0	139
Stock-based compensation expense (in shares)	96,011
Stock options exercised	$ 0	40	0	40
Stock options exercised (in shares)	16,800
Net income	$ 0	0	14,916	14,916
Ending balance at Jun. 30, 2022	$ 13	55,015	75,509	130,537
Ending balance (in shares) at Jun. 30, 2022	12,884,821
Beginning balance at Mar. 31, 2022	$ 13	54,915	70,027	124,955
Beginning balance (in shares) at Mar. 31, 2022	12,788,810
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 0	100	0	100
Stock-based compensation expense (in shares)	96,011
Net income	$ 0	0	5,482	5,482
Ending balance at Jun. 30, 2022	$ 13	$ 55,015	$ 75,509	$ 130,537
Ending balance (in shares) at Jun. 30, 2022	12,884,821

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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+ Details

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income	$ 14,916	$ 13,030
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization	754	596
Provision for loan losses	5,860	2,169
Amortization of operating lease ROU asset	445	0
Net amortization in securities discounts and premiums	18	14
Capitalized servicing assets	(2,243)	(1,760)
Gain on sale of SBA loans, net	(7,464)	(5,000)
Originations of Strategic Program loans held-for-sale	(4,436,343)	(2,317,739)
Proceeds on Strategic Program loans held-for-sale	4,465,492	2,279,911
Change in fair value of BFG	973	(1,861)
Impairment of SBA servicing asset	1,076	0
Stock-based compensation expense	139	1,255
Deferred income tax benefit	(195)	(556)
Net changes in:
Accrued interest receivable	126	417
Accrued interest payable	(14)	(111)
Other assets	(725)	(1,519)
Operating lease liabilities	13	0
Other liabilities	(5,337)	5,660
Net cash provided by (used in) operating activities	37,491	(25,494)
Cash flows from investing activities:
Net decrease in loans receivable	10,036	67,067
Distributions from BFG	327	431
Purchase of bank premises and equipment	(2,784)	(416)
Proceeds from maturities and paydowns of securities held-to-maturity	917	262
Purchases of securities held to maturity	(1,975)	0
Purchase of FHLB stock	(71)	(172)
Net cash provided by investing activities	6,450	67,172
Cash flows from financing activities:
Net increase (decrease) in deposits	(32,533)	34,120
Proceeds from exercise of stock options	40	166
Proceeds from PPP Liquidity Facility	0	5,558
Repayment of PPP Liquidity Facility	(674)	(89,039)
Net cash used in financing activities	(33,167)	(49,195)
Net change in cash and cash equivalents	10,774	(7,517)
Cash and cash equivalents, beginning of the period	85,754	47,383
Cash and cash equivalents, end of the period	96,528	39,866
Cash paid during the period
Income taxes	7,257	5,374
Interest	520	816
Supplemental disclosures of noncash operating activities:
Right-of-use assets obtained in exchange for operating lease liabilities (ASC 842 adoption effective January 1, 2022)	$ 7,380	$ 0

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2022
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies Nature of business and organization – FinWise Bancorp is a Utah Corporation headquartered in Murray, Utah and operates all business activities through its wholly-owned banking subsidiary, FinWise Bank, f/k/a Utah Community Bank. FinWise Bank was incorporated in the state of Utah on May 7, 1999. FinWise Bancorp, f/k/a All West Bancorp, was incorporated in the state of Utah on October 22, 2002, after which, it acquired 100% of FinWise Bank. As of March 4, 2016, FinWise Bank’s articles of incorporation were amended to rename the entity FinWise Bank. As of March 15, 2021, FinWise Bancorp’s articles of incorporation were amended and restated to rename the entity FinWise Bancorp. References herein to “FinWise Bancorp,” “Bancorp” or the “holding company,” refer to FinWise Bancorp on a standalone basis. The word “Company” refers to FinWise Bancorp and FinWise Bank collectively and on a consolidated basis. References to the “Bank” refer to FinWise Bank on a standalone basis. On July 15, 2021, the Company publicly filed a Registration Statement on Form S-1 with the SEC in connection with its Initial Public Offering (“IPO”) (the “Registration Statement”), which was subsequently amended on July 30, 2021, August 4, 2021, November 1, 2021, and November 16, 2021. The Registration Statement was declared effective by the SEC on November 18, 2021. In connection with the IPO, the Company issued 4,025,000 shares of common stock, par value of $0.001, which included 525,000 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $10.50 per share and began trading on the Nasdaq Stock Market LLC on November 19, 2021. On November 23, 2021, the closing date of the IPO, the Company received total net proceeds of $39.3 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $35.6 million. The Bank provides a full range of banking services to individual and commercial customers. The Bank’s primary source of revenue is from loans including consumer, Small Business Administration (SBA), commercial, commercial real estate, and residential real estate. The Bank also has established Strategic Programs with various third-party loan origination platforms that use technology to streamline the origination of unsecured consumer and secured or unsecured business loans to borrowers within certain approved credit profiles. The Bank earns monthly program fees based on the volume of loans originated in these Strategic Programs, as well as interest during the time the Bank holds the loans. The Company is subject to competition from other financial institutions and to the regulations of certain federal and state agencies and undergoes periodic examinations by those agencies. COVID-19 – On March 11, 2020, the World Health Organization declared COVID-19 to be a global pandemic. Local and national governments and regulatory authorities have systematically implemented remedial measures to try to slow and curb the spread of COVID-19, including business closures and operating restrictions, travel bans, shelter in place, stay home, and similar directives and orders. In response to the COVID-19 pandemic and in adherence with state and local guidelines, the Company has implemented the business continuity plan and other measures and activities to protect the Company’s employees and, at the same time, to assist the Company’s clients and the communities of which the Company is a part, including remote working for the majority of the Company’s employees, increased mobile banking and electronic transaction options for clients, payment deferral assistance to commercial and consumer borrowers, and participation in the SBA’s Paycheck Protection Program (“PPP”) for loans to qualifying small businesses. On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that in consultation with the Financial Accounting Standards Board (“FASB”) staff that the federal banking agencies concluded that short-term modifications (e.g., six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not troubled debt restructurings (“TDRs”). The Coronavirus Aid, Relief and Economic Security (“CARES”) Act was passed by Congress on March 27, 2020. The CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. The Bank has applied this guidance related to payment deferrals and other COVID-19 related loan modifications. The CARES Act also included a total allocation of $659 billion for loans to be issued by financial institutions through the Small Business Administration (“SBA”). This program is known as the Paycheck Protection Program (“PPP”). PPP loans are forgivable, in whole or in part, if the proceeds are used for eligible payroll costs and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00%. PPP loans originated prior to June 5, 2020 have a term of two years, while PPP loans originated on or after June 5, 2020 have a term of five years. Payments are deferred for at least the first six months of the loan and the loans are 100% guaranteed by the SBA. The SBA pays the originating bank a processing fee ranging from 1% to 5%, based on the size of the loan. At June 30, 2022, net deferred loan fees related to PPP loans was a de minimis amount, which will be recognized over the life of the loans. As of December 31, 2021, PPP borrowers had applied for and received forgiveness from the SBA for $125.2 million of PPP loan principal and had made $0.3 million of principal payments leaving $1.1 million of PPP loan principal outstanding as of December 31, 2021. During the six months ended June 30, 2022, PPP borrowers made $0.4 million of principal payments leaving $0.7 million of PPP loan principal outstanding as of June 30, 2022. The loan forgiveness resulted in the recognition of a de minimis amount of deferred loan fees for the six months ended June 30, 2022. Basis of Presentation – The consolidated financial statements are comprised of the accounts of FinWise Bancorp and its wholly-owned subsidiaries, FinWise Investments, LLC and FinWise Bank (collectively, the “Company”). All significant inter-company transactions have been eliminated in consolidation. In the opinion of management, all the adjustments (consisting of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for three and six months ended June 30, 2022 are not necessarily indicative of the results of operations that may be expected for subsequent periods or the full year results. Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC for the presentation of the Form 10-Q. The unaudited consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s December 31, 2021 Annual Report on Form 10-K. Out-of-period adjustment – During the first quarter of 2022, we recognized a $(0.8) million ($(0.6) million net of tax) reduction of interest and fees on loans and loans receivable, net as an out-of-period adjustment. The adjustment was not considered material to the interim consolidated financial statements for the three months ended March 31, 2022, six months ended June 30, 2022, or the financial statements of any previously filed interim or annual periods. Use of estimates – In preparing the consolidated financial statements in accordance with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the date of the consolidated balance sheets and certain revenues and expenses for the period. Actual results could differ, either positively or negatively, from those estimates. Recently adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by, among other provisions, recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous U.S. GAAP. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The guidance was initially effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. However, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, delaying the effective date to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. In transition, entities may also elect a package of practical expedients that must be applied in its entirety to all leases commencing before the adoption date, unless the lease is modified, and permits entities to not reassess (a) the existence of a lease, (b) lease classification or (c) determination of initial direct costs, as of the adoption date, which effectively allows entities to carryforward accounting conclusions under previous U.S. GAAP. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provides entities an optional transition method to apply the guidance under ASC Topic 842 as of the adoption date, rather than as of the earliest period presented. The Company adopted this guidance on January 1, 2022, which resulted in an increase in assets and liabilities by $7.4 million on the Company’s consolidated financial statements. Accounting pronouncements to be adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost, available-for-sale debt securities and applies to certain off-balance sheet credit exposures. This ASU was initially effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. However, the FASB issued an ASU to delay adoption to January 1, 2023 for smaller reporting companies with less than $250 million in public float as defined by the SEC’s rules. The Company is a smaller reporting company. The Company plans to apply the amendment’s provisions as a cumulative-effect adjustment to retained earnings at the beginning of the first period the amendment is effective. The Company has formed a team that is working on an implementation plan to adopt the amendment. The implementation plan is expected to include developing policies, procedures, and internal controls over the model. The Company is also working with a software vendor to measure expected losses required by the amendment. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements and expects that the portfolio composition and economic conditions at the time of adoption will influence the accounting adjustment made at the time the amendment is adopted. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. These amendments eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. This ASU is effective on January 1, 2023, the same effective date as ASU 2016-13. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements.

Investments

6 Months Ended

Jun. 30, 2022

Investments [Abstract]

Investments

Note 2 – Investments

Investment securities held-to-maturity, at cost

The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at June 30, 2022 and December 31, 2021, are summarized as follows:

	June 30, 2022
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Mortgage-backed securities	$	12,463	$	—	$	(1,393	)	$	11,070

	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 fifteen securities in an unrealized loss position at June 30, 2022 and nine securities in an unrealized loss position at December 31, 2021, as summarized in the following tables:

	June 30, 2022
	Less than 12 months					12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	11,070	$	(1,393	)	$	—	$	—	$	11,070	$	(1,393	)

	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 June 30, 2022 and December 31, 2021, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2022				December 31, 2021
($ in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Securities held-to-maturity
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years		—		—		—		—
Due after five years through ten years		2,328		2,177		1,541		1,548
Due after ten years		10,135		8,893		9,882		9,784
Total Securities held-to-maturity	$	12,463	$	11,070	$	11,423	$	11,332

At June 30, 2022, all held-to-maturity securities were pledged as collateral for a credit line held by the Bank. There were no sales or transfers of investment securities and no realized gains or losses on these securities during the six months ended June 30, 2022 or 2021.

FHLB stock

The Bank is a member of the FHLB system. Members are required to own FHLB stock of at least the greater of 1% of FHLB membership asset value or 2.7% of outstanding FHLB advances. At June 30, 2022 and December 31, 2021, the Bank owned $0.4 million, respectively, of FHLB stock, which is carried at cost. The Company evaluated the carrying value of its FHLB stock investment at June 30, 2022 and determined that it was not impaired. This evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB, repurchase activity of excess stock by the FHLB at its carrying value, the return on the investment from recurring and special dividends, and the Company’s intent and ability to hold this investment for a period of time sufficient to recover our recorded investment.

Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2022

Loans and Allowance for Loan Losses [Abstract]

Loans and Allowance for Loan Losses

Note 3 – Loans and Allowance for Loan Losses

Loans are summarized as follows according to major risk category as of June 30, 2022 and December 31, 2021:

	June 30,			December 31,
	2022			2021
($ in thousands)
SBA	$	124,477		$	142,392
Commercial, non-real estate		7,847			3,428
Residential real estate		30,965			27,108
Strategic Program loans		59,066			85,850
Commercial real estate		4,722			2,436
Consumer		5,062			4,574
Total loans	$	232,139		$	265,788
Loans held-for-sale		(31,599	)		(60,748	)
Total loans held for investment	$	200,540		$	205,040
Deferred loan costs (fees), net		(268	)		2,917
Allowance for loan losses		(10,602	)		(9,855	)
Net loans	$	189,670		$	198,102

Strategic Program Loans – In 2016, the Company began originating loans with various third-party loan origination platforms that use technology and other innovative systems to streamline the origination of unsecured consumer and secured or unsecured business loans to a wide array of borrowers within certain approved credit profiles. Loans issued by the Company through these programs generally follow and are limited to specific predetermined underwriting criteria. The Company earns monthly minimum program fees from these third parties. Based on the volume of loans originated by the Company related to each Strategic Program, an additional fee equal to a percentage of the loans generated under the Strategic Program may be collected. The program fee is included within non-interest income on the Consolidated Statements of Income.

The Company generally retains the loans and/or receivables for a number of business days after origination before selling the loans and/or receivables to the Strategic Program platform or another investor. Interest income is recognized by the Company while holding the loans. These loans are classified as held-for-sale on the balance sheet.

The Company may also hold a portion of the loans or receivable and sell the remainder directly to the Strategic Programs or other investors. The Company generally services the loans originated through the Strategic Programs in consideration of servicing fees equal to a percentage of the loans generated under the Strategic Programs. In turn, the Strategic Program service providers, subject to the Company’s approval and oversight, serve as sub-servicer and perform typical primary servicing duties including loan collections, modifications, charging-off, reporting and monitoring.

Each Strategic Program establishes a “reserve” deposit account with the Company. The agreements generally require that the deposit reserve account balance does not fall below the dollar amount of the total loans outstanding currently held by the Company for the specific Strategic Program. If necessary, the Company has the right to withdraw amounts from the reserve account to fulfill loan purchaser obligations created under the program agreements. Total cash held in reserve by Strategic Programs at the Company at June 30, 2022 and December 31, 2021, was $24.4 million and $39.6 million, respectively.

Strategic Program loans retained and held-for-sale as of June 30, 2022 and December 31, 2021, are summarized as follows:

	June 30,		December 31,
	2022		2021
($ in thousands)
Retained Strategic Program loans	$	27,467	$	25,102
Strategic Program loans held-for-sale		31,599		60,748
Total Strategic Program loans	$	59,066	$	85,850

Changes in the ALL are summarized as follows:

Three Months Ended June 30, 2022
($ in thousands)	SBA			Commercial, Non-Real Estate		Residential Real Estate		Strategic Program Loans			Commercial Real Estate		Consumer		Total
Beginning balance	$	3,064		$	107	$	411	$	6,322		$	21	$	62	$	9,987
Charge-offs		(102	)		—		—		(2,560	)		—		—		(2,662	)
Recoveries		48			1		—		315			—		—		364
Provision for loan losses		374			166		4		2,365			1		3		2,913
Balance at end of period	$	3,384		$	274	$	415	$	6,442		$	22	$	65	$	10,602
Ending balance individually evaluated for impairment		—			—		—		—			—		—		—
Ending balance collectively evaluated for impairment	$	3,384		$	274	$	415	$	6,442		$	22	$	65	$	10,602
Loans receivable	$	124,477		$	7,847	$	30,965	$	27,467		$	4,722	$	5,062	$	200,540
Ending balance individually evaluated for impairment		728			—				—			—		—		728
Ending balance collectively evaluated for impairment	$	123,749		$	7,847	$	30,965	$	27,467		$	4,722	$	5,062	$	199,812

Six Months Ended June 30, 2022
($ in thousands)	SBA			Commercial, Non-Real Estate		Residential Real Estate		Strategic Program Loans			Commercial Real Estate		Consumer		Total
Beginning balance	$	2,739		$	132	$	352	$	6,549		$	21	$	62	$	9,855
Charge-offs		(133	)		—		—		(5,438	)		—		—		(5,571	)
Recoveries		48			2		—		408			—		—		458
Provision for loan losses		730			140		63		4,923			1		3		5,860
Balance at end of period	$	3,384		$	274	$	415	$	6,442		$	22	$	65	$	10,602
Ending balance individually evaluated for impairment		—			—		—		—			—		—		—
Ending balance collectively evaluated for impairment	$	3,384		$	274	$	415	$	6,442		$	22	$	65	$	10,602
Loans receivable	$	124,477		$	7,847	$	30,965	$	27,467		$	4,722	$	5,062	$	200,540
Ending balance individually evaluated for impairment		728			—				—			—		—		728
Ending balance collectively evaluated for impairment	$	123,749		$	7,847	$	30,965	$	27,467		$	4,722	$	5,062	$	199,812

Three Months Ended June 30, 2021
($ in thousands)	SBA			Commercial, Non-Real Estate			Residential Real Estate		Strategic Program Loans			Commercial Real Estate		Consumer			Total
Beginning balance	$	924		$	191		$	855	$	4,135		$	19	$	60		$	6,184
Charge-offs		(47	)		(22	)		—		(541	)		—		(1	)		(611	)
Recoveries		—			81			—		48			—		1			130
Provision for loan losses		100			—			—		1,436			—		—			1,536
Balance at end of period	$	977			250			855		5,078			19		60			7,239
Ending balance individually evaluated for impairment		—			—			—		—			—		—			—
Ending balance collectively evaluated for impairment	$	977		$	250		$	855	$	5,078		$	19	$	60		$	7,239
Loans receivable	$	128,841		$	3,627		$	22,410	$	12,459		$	2,316	$	4,624		$	174,277
Ending balance individually evaluated for impairment		887			—			—		—			—		—			887
Ending balance collectively evaluated for impairment	$	127,954		$	3,627		$	22,410	$	12,459		$	2,316	$	4,624		$	173,390

Six Months Ended June 30, 2021
($ in thousands)	SBA			Commercial, Non-Real Estate			Residential Real Estate		Strategic Program Loans			Commercial Real Estate		Consumer			Total
Beginning balance	$	920		$	232		$	855	$	4,111		$	19	$	62		$	6,199
Charge-offs		(54	)		(63	)		—		(1,199	)		—		(3	)		(1,319	)
Recoveries		11			81			—		97			—		1			190
Provision for loan losses		100			—			—		2,069			—		—			2,169
Balance at end of period	$	977		$	250		$	855	$	5,078		$	19	$	60		$	7,239
Ending balance individually evaluated for impairment		—			—			—		—			—		—			—
Ending balance collectively evaluated for impairment	$	977		$	250		$	855	$	5,078		$	19	$	60		$	7,239
Loans receivable	$	128,841		$	3,627		$	22,410	$	12,459		$	2,316	$	4,624		$	174,277
Ending balance individually evaluated for impairment		887			—			—		—			—		—			887
Ending balance collectively evaluated for impairment	$	127,954		$	3,627		$	22,410	$	12,459		$	2,316	$	4,624		$	173,390

The following tables summarize impaired loans as of June 30, 2022 and December 31, 2021:

June 30, 2022
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
($ in thousands)
With no related allowance recorded
SBA	$	728	$	728	$	—	$	850	$	43
Commercial, non-real estate		—		—		—		—		—
Residential real estate		—		—		—		—		—
Strategic Program loans		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Consumer		—		—		—		—		—
Total	$	728	$	728	$	—	$	850	$	43

December 31, 2021
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
($ in thousands)
With no related allowance recorded
SBA	$	972	$	972	$	—	$	945	$	47
Commercial, non-real estate		—		—		—		—		—
Residential real estate		—		—		—		189		—
Strategic Program loans		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Consumer		—		—		—		—		—
Total	$	972	$	972	$	—	$	1,134	$	47

Nonaccrual and past due loans are summarized below as of June 30, 2022 and December 31, 2021:

June 30, 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	$	123,844	$	—	$	—	$	—	$	—	$	633	$	124,477
Commercial, non-real estate		7,847		—		—		—		—		—		7,847
Residential real estate		30,965		—		—		—		—		—		30,965
Strategic Program loans		57,133		991		770		172		1,933		—		59,066
Commercial real estate		4,722		—		—		—		—		—		4,722
Consumer		5,059		—		—		3		3		—		5,062
Total	$	229,570	$	991	$	770	$	175	$	1,936	$	633	$	232,139

December 31, 2021
($ in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due & Still Accruing		Total Past Due		Non- Accrual		Total
SBA	$	141,488	$	247	$	—	$	—	$	247	$	657	$	142,392
Commercial, non-real estate		3,428		—		—		—		—		—		3,428
Residential real estate		27,108		—		—		—		—		—		27,108
Strategic Program loans		84,065		1,041		690		54		1,785		—		85,850
Commercial real estate		2,436		—		—		—		—		—		2,436
Consumer		4,554		20		—		—		20		—		4,574
Total	$	263,079	$	1,308	$	690	$	54	$	2,052	$	657	$	265,788

The amount of interest income for the three and six months ended June 30, 2022 and 2021, that was not recorded on nonaccrual loans was de minimis.

In addition to past due and nonaccrual status criteria, the Company also evaluates loans using a loan grading system. Internal loan grades are based on current financial information, historical payment experience, and credit documentation, among other factors. Performance-based grades are summarized below:

Pass (Loan Grades 1-4) – A Pass asset is higher quality and does not fit any of the other categories described below. The likelihood of loss is considered remote.

Special Mention (Loan Grade 5) – A Special Mention asset has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the Company is currently protected and loss is considered unlikely and not imminent.

Classified Substandard (Loan Grade 6) – A Substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have well defined weaknesses and are characterized by the distinct possibility that the Company may sustain some loss if deficiencies are not corrected.

Classified Doubtful (Loan Grade 7) – A Doubtful asset has all the weaknesses inherent in a Substandard asset with the added characteristics that the weaknesses make collection or liquidation in full highly questionable.

Classified Loss (Loan Grade 8) – A loss loan has an existing weakness or weaknesses that render the loan uncollectible and of such little value that continuing to carry as an asset on the Bank’s book is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical nor desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future.

The Company does not currently grade retained Strategic Program loans due to their small balances and homogenous nature. Credit quality for Strategic Program loans is highly correlated with delinquency levels. The Strategic Program loans are evaluated collectively for impairment.

Outstanding loan balances categorized by these credit quality indicators are summarized as follows at June 30, 2022 and December 31, 2021:

June 30, 2022
($ in thousands)	Pass Grade 1-4		Special Mention Grade 5		Classified/ Doubtful/Loss Grade 6-8		Total
SBA	$	122,338	$	1,411	$	728	$	124,477
Commercial, non-real estate		7,847		—		—		7,847
Residential real estate		30,965		—		—		30,965
Commercial real estate		4,722		—		—		4,722
Consumer		5,062		—		—		5,062
Not Risk Graded
Strategic Program loans								59,066
Total	$	170,934	$	1,411	$	728	$	232,139

December 31, 2021
($ in thousands)	Pass Grade 1-4		Special Mention Grade 5		Classified/ Doubtful/Loss Grade 6-8		Total
SBA	$	139,985	$	1,435	$	972	$	142,392
Commercial, non-real estate		3,382		46		—		3,428
Residential real estate		27,108		—		—		27,108
Commercial real estate		2,436		—		—		2,436
Consumer		4,574		—		—		4,574
Not Risk Graded
Strategic Program loans								85,850
Total	$	177,485	$	1,481	$	972	$	265,788

Loans modified and recorded as TDR’s at June 30, 2022 and December 31, 2021, consist of the following:

($ in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
June 30, 2022
SBA		1	$	95	$	95
Total at June 30, 2022		1	$	95	$	95

December 31, 2021
SBA		2	$	106	$	106
Total at December 31, 2021		2	$	106	$	106

Non-Accrual
SBA		1	$	25	$	25

At June 30, 2022 and December 31, 2021, there were no commitments to lend additional funds to debtors whose loan terms have been modified in a TDR. Loans modified and recorded as TDR’s included modifications to rate and term. There was one principal charge-off recorded related to TDRs during the six months ended June 30, 2022 for $0.01 million. There were no principal charge-offs recorded related to TDRs during the six months ended June 30, 2021. There was no principal charge-off recorded related to TDRs during the three months ended June 30, 2022. There were no principal charge-offs recorded related to TDRs during the three months ended June 30, 2021.

During the three and six months ended June 30, 2022 and 2021, there were no loan modifications to TDRs. Separately, one restructured loan incurred a default within 12 months of the restructure date during the six months ended June 30, 2022. This same loan was paid in full with interest on June 2, 2022. One restructured loan incurred a default within 12 months of the restructure date during the six months ended June 30, 2021. This same loan was paid in full with interest on May 28, 2021.

Premises and Equipment

6 Months Ended

Jun. 30, 2022

Premises and Equipment [Abstract]

Premises and Equipment

Note 4 – Premises and Equipment

Premises and equipment at June 30, 2022 and December 31, 2021, consist of the following:

	June 30,			December 31,
	2022			2021
($ in thousands)
Leasehold improvements	$	80		$	80
Furniture, fixtures, and equipment		3,315			2,219
Construction in progress		4,021			2,333
Total premises and equipment	$	7,416		$	4,632
Less accumulated depreciation		(1,582	)		(1,347	)
Premises and equipment, net	$	5,834		$	3,285

Depreciation expense was approximately $0.2 million and $0.1 million for the six months ended June 30, 2022 and 2021, respectively.

Lease Liabilities

The Company leases its facilities under noncancelable operating leases. Rent expense for six months ended June 30, 2022 and 2021 was $0.6 million and $0.3 million, respectively. Future minimum annual rental payments for these operating leases are as follows ($ in thousands):

Six Months Ended December 31, 2022	$	441
Year Ended December 31, 2023		850
Year Ended December 31, 2024		1,104
Year Ended December 31, 2025		1,086
Year Ended December 31, 2026		1,118
Thereafter		3,355
Total		7,954
Less present value discount		(561	)
Operating lease liabilities	$	7,393

The Company entered into one lease during the six months ended June 30, 2022 to provide additional space while the Murray office construction is completed. ASC 842 does not apply due to the short-term period of this lease and immateriality. The tables below present information regarding the Company’s lease assets and liabilities. Comparative periods and disclosures are not presented here due to adoption of ASC 842 on January 1, 2022.

	Six Months Ended
	June 30, 2022

Weighted-average remaining lease term – operating leases (in years)		7.2
Weighted-average discount rate – operating leases		1.9	%

Supplemental cash flow information related to leases were as follows (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2022		2022
($ in thousands)
Operating cash flows from operating leases	$	28	$	56
Right-of-use assets obtained in exchange for operating lease liabilities		—		7,380

The components of lease expense were as follows (in thousands):

	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
(in thousands)
Operating leases
Operating lease cost	$	278	$	514
Variable lease cost		4		8
Operating lease expense		282		522
Short-term lease rent expense		28		28
Net rent expense	$	310	$	550

Deposits

6 Months Ended

Jun. 30, 2022

Deposits [Abstract]

Deposits

Note 5 – Deposits

Major classes of deposits at June 30, 2022 and December 31, 2021, are as follows:

	June 30,		December 31,
	2022		2021
($ in thousands)
Demand	$	94,850	$	115,947
Savings		7,462		6,685
Money markets		48,273		31,076
Time certificates of deposit		68,774		98,184
Total deposits	$	219,359	$	251,892

At June 30, 2022, the scheduled maturities of time deposits are as follows ($ in thousands):

Year Ended December 31, 2022	$	12,666
Year Ended December 31, 2023		21,269
Year Ended December 31, 2024		16,374
Year Ended December 31, 2025		9,243
Year Ended December 31, 2026		8,338
Thereafter		884
Total		68,774

Time deposits with balances equal or greater than $250,000 totaled $3.5 million and $3.7 million at June 30, 2022 and December 31, 2021, respectively.

SBA Servicing Asset

6 Months Ended

Jun. 30, 2022

SBA Servicing Asset [Abstract]

SBA Servicing Asset

Note 6 – SBA Servicing Asset

The Company periodically sells portions of SBA loans and retains rights to service the loans. Loans serviced for others are not included in the accompanying balance sheet. The unpaid principal balances of SBA loans serviced for others was $273.9 million and $210.2 million at June 30, 2022 and December 31, 2021, respectively.

The following table summarizes SBA servicing asset activity for the periods indicated:

	For the Six Months Ended June 30,
($ in thousands)	2022			2021
Beginning balance	$	3,938		$	2,415
Additions to servicing asset		2,243			1,760
Impairment of SBA servicing asset		(1,076	)		—
Amortization of servicing asset		(519	)		(450	)
Ending balance	$	4,586		$	3,725

The fair market value of the SBA servicing asset as of June 30, 2022 and December 31, 2021, was $4.6 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 Company assumed a weighted average prepayment rate of 14.12%, weighted average term of 4.30 years, and a weighted average discount rate of 15.78% at June 30, 2022.

The Company assumed a weighted average prepayment rate of 14.37%, weighted average term of 4.02 years, and a weighted average discount rate of 11.38% at December 31, 2021.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Capital Requirements

6 Months Ended

Jun. 30, 2022

Capital Requirements [Abstract]

Capital Requirements

Note 7 – Capital Requirements

The Bank is subject to various regulatory capital requirements administered by federal and State of Utah banking agencies (the regulators). Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off -balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk -weighting, and other factors. Prompt corrective action provisions are not applicable to the bank holding company.

Beginning January 1, 2020, the bank qualified and elected to use the community bank leverage ratio (CBLR) framework for quantitative measures which requires the Bank to maintain minimum amounts and ratios of Tier 1 capital to average total consolidated assets. Management believes, as of June 30, 2022 and December 31, 2021, that the Bank meets all capital adequacy requirements to which it is subject.

As of June 30, 2022 and December 31, 2021, the most recent notification from the FDIC categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action (there are no conditions or events since that notification that management believes have changed the Bank’s category). The following table sets forth the actual capital amounts and ratios for the Bank and the minimum ratio and amount of capital required to be categorized as well-capitalized and adequately capitalized as of the dates indicated.

The Bank’s actual capital amounts and ratios are presented in the following table:

	Actual					Well-Capitalized Requirement
($ in thousands)	Amount		Ratio			Amount			Ratio
June 30, 2022
Leverage ratio (CBLR election)	$	82,381		21.4	%	$	34,625	*		9.0	%
December 31, 2021
Leverage ratio (CBLR election)	$	65,503		17.7	%	$	31,442	*		8.5	%

* On March 27, 2020 the CARES Act became law. Section 4012 of the CARES Act directs the agencies to issue an interim final rule reducing the CBLR ratio requirement from 9% to 8% for the last two quarters of the year 2020, 8.5% for the calendar year 2021, and 9% thereafter.

Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits. The Bank had no reserve requirements as of June 30, 2022 and December 31, 2021.

The Federal Reserve’s policy statement and supervisory guidance on the payment of cash dividends by a Bank Holding Company (“BHC”), such as FinWise Bancorp, expresses the view that a BHC should generally pay cash dividends on common stock only to the extent that (1) the BHC’s net income available over the past year is sufficient to cover the cash dividend, (2) the rate of earnings retention is consistent with the organization’s expected future needs and financial condition, and (3) the minimum regulatory capital adequacy ratios are met. Should an insured depository institution controlled by a bank holding company be “significantly undercapitalized” under the applicable federal bank capital ratios, or if the bank subsidiary is “undercapitalized” and has failed to submit an acceptable capital restoration plan or has materially failed to implement such a plan, federal banking regulators (in the case of the Bank, the FDIC) may choose to require prior Federal Reserve approval for any capital distribution by the BHC.

In addition, since FinWise Bancorp is a legal entity separate and distinct from the Bank and does not conduct stand-alone operations, an ability to pay dividends depends on the ability of the Bank to pay dividends to FinWise Bancorp and the FDIC and the Utah Department of Financial Institutions (“UDFI”) may, under certain circumstances, prohibit the payment of dividends to FinWise Bancorp from the Bank. Utah corporate law also requires that dividends can only be paid out of funds legally available.

The Company has not paid any cash dividends on its common stock since inception and it currently has no plans to pay cash dividends in the foreseeable future. However, the Company’s Board of Directors may declare a cash or stock dividend out of retained earnings provided the regulatory minimum capital ratios are met. The Company plans to maintain capital ratios that meet the well-capitalized standards per the regulations and, therefore, would limit dividends to amounts that are appropriate to maintain those well-capitalized regulatory capital ratios.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Commitments and Contingent Liabilities

6 Months Ended

Jun. 30, 2022

Commitments and Contingent Liabilities [Abstract]

Commitments and Contingent Liabilities

Note 8 – Commitments and Contingent Liabilities

Federal Home Loan Bank Secured Line of Credit

As of June 30, 2022 and December 31, 2021, the Bank’s available line of credit with the FHLB to borrow in overnight funds was $3.2 million and $4.1 million, respectively. All borrowings are short-term and the interest rate is equal to the correspondent bank’s daily federal funds purchase rate. As of June 30, 2022 and December 31, 2021, no amounts were outstanding under the line of credit. Loans totaling $5.0 million and $5.4 million were pledged to secure the FHLB line of credit as of June 30, 2022 and December 31, 2021, respectively.

Line of Credit

At June 30, 2022 and December 31, 2021, we had the ability to access $10.0 million and $10.9 million from the Federal Reserve Bank’s Discount Window on a collateralized basis. Through Zions Bank, the Bank had an available unsecured line available of $1.0 million at June 30, 2022 and December 31, 2021. The Bank had an available line of credit with Bankers’ Bank of the West to borrow up to $1.05 million in overnight funds at June 30, 2022 and December 31, 2021. We had no outstanding balances on such unsecured or secured lines of credit as of June 30, 2022 and December 31, 2021.

Paycheck Protection Program Liquidity Facility

On April 20, 2020, the Bank was approved by the Federal Reserve to access its SBA Paycheck Protection Program Liquidity Facility (“PPPLF”) through the discount window. The PPPLF enables the Company to fund PPP loans without taking on additional liquidity or funding risks because the Company is able to pledge PPP loans as collateral to secure extensions of credit under the PPPLF on a non-recourse basis. Borrowings under the PPPLF have a fixed-rate of 0.35%, with a term that matches the underlying loans. The Bank pledged $0.4 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at June 30, 2022. The Bank pledged $1.0 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at December 31, 2021. The average outstanding borrowings were $0.8 million during the six months ended June 30, 2022 and $67.8 million during the six months ended June 30, 2021.

Commitments to Extend Credit

In the ordinary course of business, the Bank has entered into commitments to extend credit to customers which have not yet been exercised. These financial instruments include commitments to extend credit in the form of loans. Those instruments involve to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets.

At June 30, 2022 and December 31, 2021, financial instruments with off-balance-sheet risk were as follows:

	June 30,		December 31,
($ in thousands)	2022		2021
Revolving, open-end lines of credit	$	1,290	$	1,259
Commercial real estate		23,830		15,402
Other unused commitments		644		377
	$	25,764	$	17,038

Investment in Business Funding Group, LLC	6 Months Ended
Investment in Business Funding Group, LLC	Jun. 30, 2022
Investment in Business Funding Group, LLC [Abstract]
Investment in Business Funding Group, LLC	Note 9 – Investment in Business Funding Group, LLC On December 31, 2019, the Company purchased from certain members of BFG a 10% membership interest in exchange for an aggregate of 950,784 shares of par value $0.001 Common Stock of the Company. The exchange was accounted for at fair value based on the fair value of the Company’s shares of approximately $3.5 million. The Company’s 10% membership interests of BFG are comprised of Class A Voting Units representing 4.96% of the aggregate membership interests of BFG and Class B Non-Voting Units representing 5.04% of the aggregate membership interests of BFG. The other existing members of BFG jointly own the remaining 90% of the outstanding membership interests, on a fully-diluted basis – all of which membership interests are Class A Voting Units. Based on the Company’s accounting policy with respect to investments in limited liability companies, the Company concluded that its level of ownership was indicative of significant influence and, as a result, the investment would be accounted for using the equity method. However, the Company elected the fair value option for its investment due to cost-benefit considerations. The Company received distributions from BFG in the amounts of $0.3 million and $0.4 million for the six months ended June 30, 2022 and 2021, respectively. These distributions were recorded in the Consolidated Balance Sheets as decreases in the investment in BFG. On March 31, 2020, the Company entered into an agreement with BFG whereby the Company has the right of first refusal to purchase additional interests in BFG from any selling members. Additionally, the Company was granted an option to purchase all, but not less than all, of the interests in BFG from the remaining members for an earnings multiple between 10 times and 15 times net profit based on the fiscal year ended immediately prior to the exercise of the option. The option period begins on January 1, 2021 and expires on January 1, 2028. In consideration of granting the first right of refusal and the option, BFG members received 270,000 warrants in the aggregate. The warrants have an exercise price of $6.67 per share and the warrants expire on March 31, 2028. The warrants are free-standing equity instruments and, as a result, are classified within equity at the fair value on the issuance date. The fair value of the warrants was determined by our board of directors with input from management, relying in part upon valuation reports prepared by a third-party valuation firm using a Black-Scholes option pricing model adjusted for a lack of marketability since the Company’s stock is not publicly traded. The resulting fair value of the warrants was $0.19 per share. For further discussion on the Company’s investment in BFG, see Note 13 Related Parties.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 10 – Stock-Based Compensation

Stock option plans

The Company utilizes stock-based compensation plans, as well as discretionary grants, for employees, directors and consultants to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentives and to promote the success of the Company’s business.

The 2019 Stock Option Plan (“2019 Plan”) was adopted on June 20, 2019 following approval by the Company’s Board of Directors and shareholders. The 2019 Plan provides for the issuance of non-statutory stock options and restricted stock to employees, directors and consultants. The 2019 Plan also provides for the issuance of incentive stock options only to employees.

On April 19, 2022, the Company’s Board of Directors approved an amendment of the 2019 Plan to change its name from the All West Bancorporation 2019 Stock Option Plan to the FinWise Bancorp 2019 Stock Option Plan and to increase the number of shares of the Company’s common stock available for awards under the 2019 Plan by 500,000 shares to 1,280,000 shares, subject to shareholder approval. The Company’s shareholders approved the name change and increase in the number of shares at the Company’s 2022 Annual Meeting of Shareholders on June 9, 2022.

The 2019 Plan will terminate as to future awards 10 years from the later of the effective date or the earlier of the most recent Board or stockholder approval of an increase in the number of shares reserved for issuance under the 2019 Plan. At June 30, 2022, 645,178 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 June 30, 2022, 54 shares under 2016 Plan are available for future issuance.

The stock-based incentive awards for both the 2019 Plan and the 2016 Plan (collectively, the “Plans”) are granted at an exercise price not less than the fair market value of the shares on the date of grant, which is based on a Black-Scholes valuation model, in the case of options, or based on the fair value of the stock at the grant date, in the case of restricted stock. Vesting of the options vary by employee or director and can have a term no more than 10 years, with the options generally having vesting periods ranging from 1 to 5 years. No shares had been granted under the 2016 Plan prior to 2018.

Under both Plans, if an award expires or becomes un-exercisable without having been exercised in full, or is surrendered pursuant to an exchange program, the unpurchased shares that were subject thereto shall become available for future grant or sale under the Plans. However, shares that have actually been issued under the Plans, upon exercise of an award, shall not be returned to the Plans and shall not become available for future distribution under the Plans, except that if unvested shares of restricted stock are repurchased by the Company at their original purchase price, such shares shall become available for future grant under the Plans.

Other stock-based compensation

On June 9, 2022, the Board approved a restricted stock discretionary grant of 96,011 shares with an aggregate fair value of $1.3 million from the 2019 Plan to certain executives. Granted shares vest ratably over three years based on achievement of specific levels of the Company’s return on average assets (ROAA) and, subject to the terms and conditions of the grant agreements, will be fully vested on June 9, 2025.

On December 24, 2019, the Board approved a restricted stock discretionary grant of 1,072,746 shares to certain employees. Pursuant to the awards agreement, 351,852 shares vested on the grant date and were repurchased by the Company on December 31, 2019 to pay for employee withholding taxes. Pursuant to the awards agreement, 73,770 shares subsequently vested and were repurchased by the Company on April 6, 2020 to pay for employee income taxes. Granted shares vest based on the accelerated attribution method on a schedule where all shares would be fully vested on December 1, 2023. On November 18, 2021, pursuant to the awards agreement, the 424,458 remaining unvested shares became vested because the Company’s registration statement was declared effective.

Stock options

The grant date fair value is determined using the Black-Scholes option valuation model.

The assumptions for expected life reflected management’s judgment and include consideration of historical experience. Expected volatility is based on data from comparable public companies for the expected option term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected forfeitures are estimated based on the Company’s historical forfeiture experience. Management believes that the assumptions used in the option-pricing model are highly subjective and represent only one estimate of possible value, as there is no active market for the options granted. The table below summarizes the assumptions used:

	For the Six Months Ended June 30,
	2022			2021
Risk-free interest rate		3.10	%		0.4% – 0.7	%
Expected term in years		5.5 – 6.5			5.0 – 7.5
Expected volatility		45.8% – 46.7	%		45.7% – 47.6	%
Expected dividend yield		—			—

The following summarizes stock option activity for the three months and six months ended June 30, 2022:

	Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at March 31, 2022		839,028		$	4.46		8.0	$	10,645,951
Options granted		89,415			13.04		9.9		—
Options forfeited		(3,160	)		4.40		—		16,158
Outstanding at June 30, 2022		925,283		$	5.29		8.0	$	4,091,633
Options vested and exercisable at June 30, 2022		607,608		$	4.56		7.8	$	2,898,340

	Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2021		862,488		$	4.41		8.2	$	8,088,660
Options granted		89,415			13.04		9.9		—
Options exercised		(16,800	)		2.37		—		248,312
Options forfeited		(9,820	)		3.64		—		108,515
Outstanding at June 30, 2022		925,283		$	5.29		8.0	$	4,091,633
Options vested and exercisable at June 30, 2022		607,608		$	4.56		7.8	$	2,898,340

The weighted average grant-date fair value of options per share granted during the six months ended June 30, 2022 was $6.26 . The aggregate intrinsic value of options exercised during the six months ended June 30, 2022 was $0.2 million. During the six months ended June 30, 2022, the Company received de minimis proceeds 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.

The weighted average grant-date fair value of options per share granted during the six months ended June 30, 2021 was $1.48. The aggregate intrinsic value of options exercised during the six months ended June 30, 2021 was $0.3 million. During the six months ended June 30, 2021, the Company received $0.2 million in proceeds from the exercise of stock options and recognized a de minimis tax benefit from the exercise of stock options.

Stock-based compensation expense

The following tables present pre-tax and after-tax stock-based compensation expense recognized:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
($ in thousands)	2022		2021		2022		2021
Pre-tax
Stock options	$	54	$	75	$	93	$	822
Restricted shares		46		199		46		433
Total	$	100	$	274	$	139	$	1,255
After-tax
Stock options	$	53	$	32	$	91	$	713
Restricted shares		46		153		46		631
Total	$	99	$	185	$	137	$	1,344

As of June 30, 2022, the Company had unrecognized stock-based compensation expense related to stock options and restricted stock of approximately $0.7 million and $1.2 million, respectively, which is expected to be recognized over the remaining weighted average recognition period of 2.0 years.

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2022

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note 11 – Fair Value of Financial Instruments

The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy.

Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data.

Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs from nonbinding single dealer quotes not corroborated by observable market data. In developing Level 3 measurements, management incorporates whatever market data might be available and uses discounted cash flow models where appropriate. These calculations include projections of future cash flows, including appropriate default and loss assumptions, and market-based discount rates.

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: The carrying amount of these items is a reasonable estimate of their fair value.

Investment securities held-to-maturity: The estimated fair values of investment securities are priced using current active market quotes, if available, which are considered Level 1 measurements. For most of the portfolio, matrix pricing based on the securities’ relationship to other benchmark quoted prices is used to establish the fair value. These measurements are considered Level 2.

Investment in Federal Home Loan Bank stock: The fair value is based upon the redemption value of the stock, which equates to the carrying value.

Strategic Program loans held-for-sale: The carrying amount of these items is a reasonable estimate of their fair value.

Loans held for investment: The fair value is estimated by discounting the future cash flows and estimated prepayments using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term. Some loan types’ fair value approximated carrying value because of their floating rate or expected maturity characteristics.

SBA servicing asset: The fair value of servicing assets is based on, in part, third -party valuations that project estimated future cash inflows that include servicing fees and outflows that include market rates for costs of servicing. The present value of the future cash flows are calculated utilizing market-based discount rates. The market-based discount rates represent risk spreads based on secondary market transactions utilizing calculated prepayment curves. Due to the fact that observable loan transactions are used to determine the risk spreads, the Company considers the measurement to be Level 2.

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 June 30, 2022 and December 31, 2021. The calculation of fair value utilized significant unobservable inputs, including projected cash flows, growth rates, and discount rates. The fair value of the investment in BFG was $4.6 million and $5.9 million as of June 30, 2022 and December 31, 2021, respectively. The following table summarizes investment in BFG activity for the periods indicated:

	For the Six Months Ended June 30,
($ in thousands)	2022			2021
Beginning balance	$	5,900		$	3,770
Distributions from BFG		(327	)		(431	)
Change in fair value of BFG		(973	)		1,861
Ending balance	$	4,600		$	5,200

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: The fair value of accrued interest receivable and payable approximates their carrying amount.

PPP Liquidity Facility: The fair value of PPPLF is estimated using a discounted cash flow based on the remaining contractual term and current borrowing rates for similar terms.

			June 30, 2022				December 31, 2021
($ in thousands)	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents		1	$	96,528	$	96,528	$	85,754	$	85,754
Investment securities held-to-maturity		2		12,463		11,070		11,423		11,332
Investment in FHLB stock		2		449		449		378		378
Loans held for investment		3		189,670		196,654		198,102		197,412
Loans held-for-sale		2		31,599		31,594		60,748		60,743
Accrued interest receivable		2		1,422		1,422		1,548		1,548
SBA servicing asset		2		4,586		4,586		3,938		3,938
Investment in BFG		3		4,600		4,600		5,900		5,900
Financial liabilities:
Total deposits		2		219,359		204,221		251,892		249,488
Accrued interest payable		2		34		34		48		48
PPP Liquidity Facility		2		376		376		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
June 30, 2022
Nonrecurring assets
Impaired loans	$	728	$	—	$	—	$	728
December 31, 2021
Nonrecurring assets
Impaired loans	$	972	$	—	$	—	$	972

Impaired loans – The loan amount above represents loans impaired as of year-end that have been adjusted to fair value. When collateral dependent loans are identified as impaired, the impairment is measured using the current fair value of the collateral securing these loans, less selling costs. The fair value of real estate collateral is determined using collateral valuations or a discounted cash flow analysis using inputs such as discount rates, sale prices of similar assets, and term of expected disposition. Some appraised values are adjusted based on management’s review and analysis, which may include historical knowledge, changes in market conditions, estimated selling and other anticipated costs, and/or expertise and knowledge. The loss represents charge-offs or impairments on loans for adjustments made based on the fair value of the collateral.

Quantitative information for Level 3 fair value measurements – The range and weighted average of the significant unobservable inputs used to fair value Level 3 nonrecurring assets as of June 30, 2022 and as of December 31, 2021, along with the valuation techniques used, are shown in the following table:

($ in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
June 30, 2022
Impaired loans	$	728	Market comparable	Adjustment to appraisal value		0.38	%

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 June 30, 2022 and as of December 31, 2021 are shown in the following table:

	June 30, 2022			December 31, 2021
($ in thousands)	Range (Weighted Average)			Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate		14.6	%		16.6	%
Expense growth rate		14.3	%		16.3	%
Discount rate		30.0	%		25.0	%

Guideline Public Company
Multiples of enterprise value	3.0x to 5.0x			4.0x to 6.0x

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2022
Income Taxes [Abstract]
Income Taxes	Note 12 – Income Taxes The Company accounts for income taxes by recognizing deferred tax assets and liabilities based upon temporary differences between the amounts for financial reporting purposes and tax basis of its assets and liabilities. Deferred tax assets increased $0.2 million during the six months ended June 30, 2022 as a result of changes to temporary timing differences associated with accounting for bad debts. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management evaluates both positive and negative evidence, including the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. This analysis is updated quarterly and adjusted as necessary. Based on this analysis, management has determined that a valuation allowance for deferred tax assets was not required at June 30, 2022. For the six months ended June 30, 2022 and 2021, income tax expense was $5.0 million and $4.5 million, respectively, resulting in an effective income tax rate of 25.1% and 25.8%, respectively. The effective tax rate differs from the statutory rate of 24.9% during the six months ended June 30, 2022 and 2021 due primarily to state taxes and the tax effect of stock-based compensation. The Company had no unrecognized tax benefits at June 30, 2022.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SAB Topic 11.C)
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-Subparagraph (b)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Related Parties	6 Months Ended
Related Parties	Jun. 30, 2022
Related Parties [Abstract]
Related Parties	Note 13 – Related Parties In the ordinary course of business, the Company may grant loans to certain executive officers and directors and the companies with which they are associated. The Company had loans outstanding to related parties of $0.0 million as of June 30, 2022 and December 31, 2021. Total deposits from certain executive officers and directors and the companies with which they are associated were $0.8 million and $0.5 million as of June 30, 2022 and December 31, 2021, respectively. BFG is a small business loan broker, primarily under the SBA’s 7(a) loan program. As noted in Note 9 Investments above, the Company has a 10% ownership in the outstanding membership units of BFG. The Company underwrites loans sourced by BFG in its normal course of business. If approved and funded, the Company pays BFG a commission fee based on the amount funded. There is no guarantee or commitment made by the Company to BFG to approve or fund loans referred by BFG. The Company is able to use its sole discretion in deciding to approve and fund loans referred by BFG.

Earnings per Share

6 Months Ended

Jun. 30, 2022

Earnings per Share [Abstract]

Earnings per Share

Note 14 – Earnings per Share

The following table is a reconciliation of the components used to derive basic and diluted EPS for the three and six months ended June 30, 2022 and 2021 ($ in thousands, except share and per share amounts):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
($ in thousands)	2022			2021			2022			2021
Numerator:
Net income	$	5,482		$	7,739		$	14,916		$	13,030
Amount allocated to participating common shareholders⁽¹⁾		(41	)		(473	)		(112	)		(838	)
Net income allocate to common shareholders	$	5,441		$	7,266		$	14,804		$	12,192
Denominator:
Weighted average shares outstanding, basic		12,716,010			8,183,774		$	12,698,714			8,137,736
Weighted average effect of dilutive securities:
Stock options		558,855			408,841			589,091			245,280
Warrants		142,525			58,341			156,542			29,171
Weighted average shares outstanding, diluted		13,417,390			8,650,956			13,444,347			8,412,187
Earnings per share, basic	$	0.43		$	0.89		$	1.17		$	1.50
Earnings per share, diluted	$	0.41		$	0.84		$	1.10		$	1.45

(1) Represents earnings attributable to holders of unvested restricted stock issued outside of the 2016 Plan and 2019 Plan to the Company’s employees for the three or six months ended June 30, 2021.

There were 336,192 and 684,648 anti-dilutive options for the six months ended June 30, 2022 and 2021, respectively, reported in the table above. There were 113,458 shares and 240,829 anti-dilutive warrants for the six months ended June 30, 2022 and 2021, respectively, reported in the table above.

Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Revenue Recognition

Note 15 – Revenue Recognition

The following is a summary of the Company’s revenue disaggregated by contracts with customers and revenue outside the scope of ASC 606:

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
($ in thousands)	2022			2021		2022			2021
Interest income
Interest income, not-in-scope
Interest and fees on loans	$	12,864		$	11,119	$	26,020		$	19,909
Interest on securities		44			6		83			12
Other interest income		105			10		133			20
Total interest income	$	13,013		$	11,135	$	26,236		$	19,941

Non-interest income
Non-interest income, in-scope
Service charges on deposit accounts	$	7		$	7	$	15		$	13
Strategic Program set up fees		48			19		97			19

Non-interest income, not in-scope
Strategic Program fees		5,878			3,847		12,044			6,720
Gain on sale of loans		2,412			2,397		7,464			5,000
SBA loan servicing fees		342			311		729			463
Change in fair value on investment in BFG		(575	)		1,501		(973	)		1,861
Other miscellaneous income		24			3		34			8
Strategic Program service charges		295			76		703			156
Total non-interest income	$	8,431		$	8,161	$	20,113		$	14,240

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 16 – Subsequent Events Subsequent events are events or transactions that occur after the date of the most recent balance sheet but before the financial statements are available to be issued. The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing of the financial statements. The Company’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the date of the balance sheet and before the financial statements are available to be issued. The Company has evaluated subsequent events through August 15, 2022, which is the date the unaudited consolidated financial statements are available to be issued.

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2022
Summary of Significant Accounting Policies [Abstract]
Nature of business and organization	Nature of business and organization – FinWise Bancorp is a Utah Corporation headquartered in Murray, Utah and operates all business activities through its wholly-owned banking subsidiary, FinWise Bank, f/k/a Utah Community Bank. FinWise Bank was incorporated in the state of Utah on May 7, 1999. FinWise Bancorp, f/k/a All West Bancorp, was incorporated in the state of Utah on October 22, 2002, after which, it acquired 100% of FinWise Bank. As of March 4, 2016, FinWise Bank’s articles of incorporation were amended to rename the entity FinWise Bank. As of March 15, 2021, FinWise Bancorp’s articles of incorporation were amended and restated to rename the entity FinWise Bancorp. References herein to “FinWise Bancorp,” “Bancorp” or the “holding company,” refer to FinWise Bancorp on a standalone basis. The word “Company” refers to FinWise Bancorp and FinWise Bank collectively and on a consolidated basis. References to the “Bank” refer to FinWise Bank on a standalone basis. On July 15, 2021, the Company publicly filed a Registration Statement on Form S-1 with the SEC in connection with its Initial Public Offering (“IPO”) (the “Registration Statement”), which was subsequently amended on July 30, 2021, August 4, 2021, November 1, 2021, and November 16, 2021. The Registration Statement was declared effective by the SEC on November 18, 2021. In connection with the IPO, the Company issued 4,025,000 shares of common stock, par value of $0.001, which included 525,000 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $10.50 per share and began trading on the Nasdaq Stock Market LLC on November 19, 2021. On November 23, 2021, the closing date of the IPO, the Company received total net proceeds of $39.3 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $35.6 million. The Bank provides a full range of banking services to individual and commercial customers. The Bank’s primary source of revenue is from loans including consumer, Small Business Administration (SBA), commercial, commercial real estate, and residential real estate. The Bank also has established Strategic Programs with various third-party loan origination platforms that use technology to streamline the origination of unsecured consumer and secured or unsecured business loans to borrowers within certain approved credit profiles. The Bank earns monthly program fees based on the volume of loans originated in these Strategic Programs, as well as interest during the time the Bank holds the loans. The Company is subject to competition from other financial institutions and to the regulations of certain federal and state agencies and undergoes periodic examinations by those agencies.
Basis of Presentation	Basis of Presentation – The consolidated financial statements are comprised of the accounts of FinWise Bancorp and its wholly-owned subsidiaries, FinWise Investments, LLC and FinWise Bank (collectively, the “Company”). All significant inter-company transactions have been eliminated in consolidation. In the opinion of management, all the adjustments (consisting of normal and recurring adjustments) necessary for the fair presentation of the consolidated financial condition and the consolidated results of operations for the unaudited periods presented have been included. The results of operations and other data presented for three and six months ended June 30, 2022 are not necessarily indicative of the results of operations that may be expected for subsequent periods or the full year results. Certain information and note disclosures usually included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC for the presentation of the Form 10-Q. The unaudited consolidated financial statements presented should be read in conjunction with the Company’s audited consolidated financial statements and notes to the audited consolidated financial statements included in the Company’s December 31, 2021 Annual Report on Form 10-K.
Use of estimates	Use of estimates – In preparing the consolidated financial statements in accordance with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the date of the consolidated balance sheets and certain revenues and expenses for the period. Actual results could differ, either positively or negatively, from those estimates.
Out-of-period adjustment	Out-of-period adjustment – During the first quarter of 2022, we recognized a $(0.8) million ($(0.6) million net of tax) reduction of interest and fees on loans and loans receivable, net as an out-of-period adjustment. The adjustment was not considered material to the interim consolidated financial statements for the three months ended March 31, 2022, six months ended June 30, 2022, or the financial statements of any previously filed interim or annual periods.
Recently adopted and to be adopted accounting pronouncements	Recently adopted accounting pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by, among other provisions, recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous U.S. GAAP. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The guidance was initially effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. However, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, delaying the effective date to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. In transition, entities may also elect a package of practical expedients that must be applied in its entirety to all leases commencing before the adoption date, unless the lease is modified, and permits entities to not reassess (a) the existence of a lease, (b) lease classification or (c) determination of initial direct costs, as of the adoption date, which effectively allows entities to carryforward accounting conclusions under previous U.S. GAAP. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provides entities an optional transition method to apply the guidance under ASC Topic 842 as of the adoption date, rather than as of the earliest period presented. The Company adopted this guidance on January 1, 2022, which resulted in an increase in assets and liabilities by $7.4 million on the Company’s consolidated financial statements. Accounting pronouncements to be adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost, available-for-sale debt securities and applies to certain off-balance sheet credit exposures. This ASU was initially effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. However, the FASB issued an ASU to delay adoption to January 1, 2023 for smaller reporting companies with less than $250 million in public float as defined by the SEC’s rules. The Company is a smaller reporting company. The Company plans to apply the amendment’s provisions as a cumulative-effect adjustment to retained earnings at the beginning of the first period the amendment is effective. The Company has formed a team that is working on an implementation plan to adopt the amendment. The implementation plan is expected to include developing policies, procedures, and internal controls over the model. The Company is also working with a software vendor to measure expected losses required by the amendment. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements and expects that the portfolio composition and economic conditions at the time of adoption will influence the accounting adjustment made at the time the amendment is adopted. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. These amendments eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. This ASU is effective on January 1, 2023, the same effective date as ASU 2016-13. The Company is currently evaluating the effects that the adoption of this amendment will have on its consolidated financial statements.

Investments (Tables)

6 Months Ended

Jun. 30, 2022

Investments [Abstract]

Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Values of Held-to-Maturity Securities

The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at June 30, 2022 and December 31, 2021, are summarized as follows:

	June 30, 2022
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Mortgage-backed securities	$	12,463	$	—	$	(1,393	)	$	11,070

	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 fifteen securities in an unrealized loss position at June 30, 2022 and nine securities in an unrealized loss position at December 31, 2021, as summarized in the following tables:

	June 30, 2022
	Less than 12 months					12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	11,070	$	(1,393	)	$	—	$	—	$	11,070	$	(1,393	)

	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

	June 30, 2022				December 31, 2021
($ in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Securities held-to-maturity
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years		—		—		—		—
Due after five years through ten years		2,328		2,177		1,541		1,548
Due after ten years		10,135		8,893		9,882		9,784
Total Securities held-to-maturity	$	12,463	$	11,070	$	11,423	$	11,332

Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2022

Loans and Allowance for Loan Losses [Abstract]

Loans Summarized to Major Risk Category

Loans are summarized as follows according to major risk category as of June 30, 2022 and December 31, 2021:

	June 30,			December 31,
	2022			2021
($ in thousands)
SBA	$	124,477		$	142,392
Commercial, non-real estate		7,847			3,428
Residential real estate		30,965			27,108
Strategic Program loans		59,066			85,850
Commercial real estate		4,722			2,436
Consumer		5,062			4,574
Total loans	$	232,139		$	265,788
Loans held-for-sale		(31,599	)		(60,748	)
Total loans held for investment	$	200,540		$	205,040
Deferred loan costs (fees), net		(268	)		2,917
Allowance for loan losses		(10,602	)		(9,855	)
Net loans	$	189,670		$	198,102

Strategic Program Loans Retained and Held-for-sale

Strategic Program loans retained and held-for-sale as of June 30, 2022 and December 31, 2021, are summarized as follows:

	June 30,		December 31,
	2022		2021
($ in thousands)
Retained Strategic Program loans	$	27,467	$	25,102
Strategic Program loans held-for-sale		31,599		60,748
Total Strategic Program loans	$	59,066	$	85,850

Changes in Allowance for Loan Losses

Changes in the ALL are summarized as follows:

Three Months Ended June 30, 2022
($ in thousands)	SBA			Commercial, Non-Real Estate		Residential Real Estate		Strategic Program Loans			Commercial Real Estate		Consumer		Total
Beginning balance	$	3,064		$	107	$	411	$	6,322		$	21	$	62	$	9,987
Charge-offs		(102	)		—		—		(2,560	)		—		—		(2,662	)
Recoveries		48			1		—		315			—		—		364
Provision for loan losses		374			166		4		2,365			1		3		2,913
Balance at end of period	$	3,384		$	274	$	415	$	6,442		$	22	$	65	$	10,602
Ending balance individually evaluated for impairment		—			—		—		—			—		—		—
Ending balance collectively evaluated for impairment	$	3,384		$	274	$	415	$	6,442		$	22	$	65	$	10,602
Loans receivable	$	124,477		$	7,847	$	30,965	$	27,467		$	4,722	$	5,062	$	200,540
Ending balance individually evaluated for impairment		728			—				—			—		—		728
Ending balance collectively evaluated for impairment	$	123,749		$	7,847	$	30,965	$	27,467		$	4,722	$	5,062	$	199,812

Six Months Ended June 30, 2022
($ in thousands)	SBA			Commercial, Non-Real Estate		Residential Real Estate		Strategic Program Loans			Commercial Real Estate		Consumer		Total
Beginning balance	$	2,739		$	132	$	352	$	6,549		$	21	$	62	$	9,855
Charge-offs		(133	)		—		—		(5,438	)		—		—		(5,571	)
Recoveries		48			2		—		408			—		—		458
Provision for loan losses		730			140		63		4,923			1		3		5,860
Balance at end of period	$	3,384		$	274	$	415	$	6,442		$	22	$	65	$	10,602
Ending balance individually evaluated for impairment		—			—		—		—			—		—		—
Ending balance collectively evaluated for impairment	$	3,384		$	274	$	415	$	6,442		$	22	$	65	$	10,602
Loans receivable	$	124,477		$	7,847	$	30,965	$	27,467		$	4,722	$	5,062	$	200,540
Ending balance individually evaluated for impairment		728			—				—			—		—		728
Ending balance collectively evaluated for impairment	$	123,749		$	7,847	$	30,965	$	27,467		$	4,722	$	5,062	$	199,812

Three Months Ended June 30, 2021
($ in thousands)	SBA			Commercial, Non-Real Estate			Residential Real Estate		Strategic Program Loans			Commercial Real Estate		Consumer			Total
Beginning balance	$	924		$	191		$	855	$	4,135		$	19	$	60		$	6,184
Charge-offs		(47	)		(22	)		—		(541	)		—		(1	)		(611	)
Recoveries		—			81			—		48			—		1			130
Provision for loan losses		100			—			—		1,436			—		—			1,536
Balance at end of period	$	977			250			855		5,078			19		60			7,239
Ending balance individually evaluated for impairment		—			—			—		—			—		—			—
Ending balance collectively evaluated for impairment	$	977		$	250		$	855	$	5,078		$	19	$	60		$	7,239
Loans receivable	$	128,841		$	3,627		$	22,410	$	12,459		$	2,316	$	4,624		$	174,277
Ending balance individually evaluated for impairment		887			—			—		—			—		—			887
Ending balance collectively evaluated for impairment	$	127,954		$	3,627		$	22,410	$	12,459		$	2,316	$	4,624		$	173,390

Six Months Ended June 30, 2021
($ in thousands)	SBA			Commercial, Non-Real Estate			Residential Real Estate		Strategic Program Loans			Commercial Real Estate		Consumer			Total
Beginning balance	$	920		$	232		$	855	$	4,111		$	19	$	62		$	6,199
Charge-offs		(54	)		(63	)		—		(1,199	)		—		(3	)		(1,319	)
Recoveries		11			81			—		97			—		1			190
Provision for loan losses		100			—			—		2,069			—		—			2,169
Balance at end of period	$	977		$	250		$	855	$	5,078		$	19	$	60		$	7,239
Ending balance individually evaluated for impairment		—			—			—		—			—		—			—
Ending balance collectively evaluated for impairment	$	977		$	250		$	855	$	5,078		$	19	$	60		$	7,239
Loans receivable	$	128,841		$	3,627		$	22,410	$	12,459		$	2,316	$	4,624		$	174,277
Ending balance individually evaluated for impairment		887			—			—		—			—		—			887
Ending balance collectively evaluated for impairment	$	127,954		$	3,627		$	22,410	$	12,459		$	2,316	$	4,624		$	173,390

Impaired Loans

The following tables summarize impaired loans as of June 30, 2022 and December 31, 2021:

June 30, 2022
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
($ in thousands)
With no related allowance recorded
SBA	$	728	$	728	$	—	$	850	$	43
Commercial, non-real estate		—		—		—		—		—
Residential real estate		—		—		—		—		—
Strategic Program loans		—		—		—		—		—
Commercial real estate		—		—		—		—		—
Consumer		—		—		—		—		—
Total	$	728	$	728	$	—	$	850	$	43

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 June 30, 2022 and December 31, 2021:

June 30, 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	$	123,844	$	—	$	—	$	—	$	—	$	633	$	124,477
Commercial, non-real estate		7,847		—		—		—		—		—		7,847
Residential real estate		30,965		—		—		—		—		—		30,965
Strategic Program loans		57,133		991		770		172		1,933		—		59,066
Commercial real estate		4,722		—		—		—		—		—		4,722
Consumer		5,059		—		—		3		3		—		5,062
Total	$	229,570	$	991	$	770	$	175	$	1,936	$	633	$	232,139

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 June 30, 2022 and December 31, 2021:

June 30, 2022
($ in thousands)	Pass Grade 1-4		Special Mention Grade 5		Classified/ Doubtful/Loss Grade 6-8		Total
SBA	$	122,338	$	1,411	$	728	$	124,477
Commercial, non-real estate		7,847		—		—		7,847
Residential real estate		30,965		—		—		30,965
Commercial real estate		4,722		—		—		4,722
Consumer		5,062		—		—		5,062
Not Risk Graded
Strategic Program loans								59,066
Total	$	170,934	$	1,411	$	728	$	232,139

December 31, 2021
($ in thousands)	Pass Grade 1-4		Special Mention Grade 5		Classified/ Doubtful/Loss Grade 6-8		Total
SBA	$	139,985	$	1,435	$	972	$	142,392
Commercial, non-real estate		3,382		46		—		3,428
Residential real estate		27,108		—		—		27,108
Commercial real estate		2,436		—		—		2,436
Consumer		4,574		—		—		4,574
Not Risk Graded
Strategic Program loans								85,850
Total	$	177,485	$	1,481	$	972	$	265,788

Loans Modified and Recorded as TDR's

Loans modified and recorded as TDR’s at June 30, 2022 and December 31, 2021, consist of the following:

($ in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
June 30, 2022
SBA		1	$	95	$	95
Total at June 30, 2022		1	$	95	$	95

December 31, 2021
SBA		2	$	106	$	106
Total at December 31, 2021		2	$	106	$	106

Non-Accrual
SBA		1	$	25	$	25

Premises and Equipment (Tables)

6 Months Ended

Jun. 30, 2022

Premises and Equipment [Abstract]

Components of Premises and Equipment

Premises and equipment at June 30, 2022 and December 31, 2021, consist of the following:

	June 30,			December 31,
	2022			2021
($ in thousands)
Leasehold improvements	$	80		$	80
Furniture, fixtures, and equipment		3,315			2,219
Construction in progress		4,021			2,333
Total premises and equipment	$	7,416		$	4,632
Less accumulated depreciation		(1,582	)		(1,347	)
Premises and equipment, net	$	5,834		$	3,285

Future Minimum Annual Rental Payments for Operating Leases

Future minimum annual rental payments for these operating leases are as follows ($ in thousands):

Six Months Ended December 31, 2022	$	441
Year Ended December 31, 2023		850
Year Ended December 31, 2024		1,104
Year Ended December 31, 2025		1,086
Year Ended December 31, 2026		1,118
Thereafter		3,355
Total		7,954
Less present value discount		(561	)
Operating lease liabilities	$	7,393

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.

	Six Months Ended
	June 30, 2022

Weighted-average remaining lease term – operating leases (in years)		7.2
Weighted-average discount rate – operating leases		1.9	%

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases were as follows (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2022		2022
($ in thousands)
Operating cash flows from operating leases	$	28	$	56
Right-of-use assets obtained in exchange for operating lease liabilities		—		7,380

Components of Lease Expense

The components of lease expense were as follows (in thousands):

	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
(in thousands)
Operating leases
Operating lease cost	$	278	$	514
Variable lease cost		4		8
Operating lease expense		282		522
Short-term lease rent expense		28		28
Net rent expense	$	310	$	550

Deposits (Tables)

6 Months Ended

Jun. 30, 2022

Deposits [Abstract]

Major Classes of Deposits

Major classes of deposits at June 30, 2022 and December 31, 2021, are as follows:

	June 30,		December 31,
	2022		2021
($ in thousands)
Demand	$	94,850	$	115,947
Savings		7,462		6,685
Money markets		48,273		31,076
Time certificates of deposit		68,774		98,184
Total deposits	$	219,359	$	251,892

Maturities of Time Deposits

At June 30, 2022, the scheduled maturities of time deposits are as follows ($ in thousands):

Year Ended December 31, 2022	$	12,666
Year Ended December 31, 2023		21,269
Year Ended December 31, 2024		16,374
Year Ended December 31, 2025		9,243
Year Ended December 31, 2026		8,338
Thereafter		884
Total		68,774

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)

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-Name Regulation S-K (SK)
-Number 229
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

SBA Servicing Asset (Tables)

6 Months Ended

Jun. 30, 2022

SBA Servicing Asset [Abstract]

SBA Servicing Asset Activity

The following table summarizes SBA servicing asset activity for the periods indicated:

	For the Six Months Ended June 30,
($ in thousands)	2022			2021
Beginning balance	$	3,938		$	2,415
Additions to servicing asset		2,243			1,760
Impairment of SBA servicing asset		(1,076	)		—
Amortization of servicing asset		(519	)		(450	)
Ending balance	$	4,586		$	3,725

Capital Requirements (Tables)

6 Months Ended

Jun. 30, 2022

Capital Requirements [Abstract]

Capital Amounts and Ratios

The Bank’s actual capital amounts and ratios are presented in the following table:

	Actual					Well-Capitalized Requirement
($ in thousands)	Amount		Ratio			Amount			Ratio
June 30, 2022
Leverage ratio (CBLR election)	$	82,381		21.4	%	$	34,625	*		9.0	%
December 31, 2021
Leverage ratio (CBLR election)	$	65,503		17.7	%	$	31,442	*		8.5	%

Commitments and Contingent Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingent Liabilities [Abstract]

Financial Instruments with Off-balance Sheet Risk

At June 30, 2022 and December 31, 2021, financial instruments with off-balance-sheet risk were as follows:

	June 30,		December 31,
($ in thousands)	2022		2021
Revolving, open-end lines of credit	$	1,290	$	1,259
Commercial real estate		23,830		15,402
Other unused commitments		644		377
	$	25,764	$	17,038

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Stock-Based Compensation [Abstract]

Summary of Assumptions Used

The table below summarizes the assumptions used:

	For the Six Months Ended June 30,
	2022			2021
Risk-free interest rate		3.10	%		0.4% – 0.7	%
Expected term in years		5.5 – 6.5			5.0 – 7.5
Expected volatility		45.8% – 46.7	%		45.7% – 47.6	%
Expected dividend yield		—			—

Stock Option Activity

The following summarizes stock option activity for the three months and six months ended June 30, 2022:

	Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at March 31, 2022		839,028		$	4.46		8.0	$	10,645,951
Options granted		89,415			13.04		9.9		—
Options forfeited		(3,160	)		4.40		—		16,158
Outstanding at June 30, 2022		925,283		$	5.29		8.0	$	4,091,633
Options vested and exercisable at June 30, 2022		607,608		$	4.56		7.8	$	2,898,340

	Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2021		862,488		$	4.41		8.2	$	8,088,660
Options granted		89,415			13.04		9.9		—
Options exercised		(16,800	)		2.37		—		248,312
Options forfeited		(9,820	)		3.64		—		108,515
Outstanding at June 30, 2022		925,283		$	5.29		8.0	$	4,091,633
Options vested and exercisable at June 30, 2022		607,608		$	4.56		7.8	$	2,898,340

Pre-Tax and After-Tax Stock-Based Compensation Expense

The following tables present pre-tax and after-tax stock-based compensation expense recognized:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
($ in thousands)	2022		2021		2022		2021
Pre-tax
Stock options	$	54	$	75	$	93	$	822
Restricted shares		46		199		46		433
Total	$	100	$	274	$	139	$	1,255
After-tax
Stock options	$	53	$	32	$	91	$	713
Restricted shares		46		153		46		631
Total	$	99	$	185	$	137	$	1,344

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value of Financial Instruments [Abstract]

Investment in BFG Activity

The following table summarizes investment in BFG activity for the periods indicated:

	For the Six Months Ended June 30,
($ in thousands)	2022			2021
Beginning balance	$	5,900		$	3,770
Distributions from BFG		(327	)		(431	)
Change in fair value of BFG		(973	)		1,861
Ending balance	$	4,600		$	5,200

Estimated Fair Value and Carrying Value of Financial Instrument

The fair value of PPPLF is estimated using a discounted cash flow based on the remaining contractual term and current borrowing rates for similar terms.

			June 30, 2022				December 31, 2021
($ in thousands)	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents		1	$	96,528	$	96,528	$	85,754	$	85,754
Investment securities held-to-maturity		2		12,463		11,070		11,423		11,332
Investment in FHLB stock		2		449		449		378		378
Loans held for investment		3		189,670		196,654		198,102		197,412
Loans held-for-sale		2		31,599		31,594		60,748		60,743
Accrued interest receivable		2		1,422		1,422		1,548		1,548
SBA servicing asset		2		4,586		4,586		3,938		3,938
Investment in BFG		3		4,600		4,600		5,900		5,900
Financial liabilities:
Total deposits		2		219,359		204,221		251,892		249,488
Accrued interest payable		2		34		34		48		48
PPP Liquidity Facility		2		376		376		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
June 30, 2022
Nonrecurring assets
Impaired loans	$	728	$	—	$	—	$	728
December 31, 2021
Nonrecurring assets
Impaired loans	$	972	$	—	$	—	$	972

Quantitative Information for Level 3 Fair Value Measurements

The range and weighted average of the significant unobservable inputs used to fair value Level 3 nonrecurring assets as of June 30, 2022 and as of December 31, 2021, along with the valuation techniques used, are shown in the following table:

($ in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
June 30, 2022
Impaired loans	$	728	Market comparable	Adjustment to appraisal value		0.38	%

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

	June 30, 2022			December 31, 2021
($ in thousands)	Range (Weighted Average)			Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate		14.6	%		16.6	%
Expense growth rate		14.3	%		16.3	%
Discount rate		30.0	%		25.0	%

Guideline Public Company
Multiples of enterprise value	3.0x to 5.0x			4.0x to 6.0x

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings per Share [Abstract]

Basic and Diluted EPS

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
($ in thousands)	2022			2021			2022			2021
Numerator:
Net income	$	5,482		$	7,739		$	14,916		$	13,030
Amount allocated to participating common shareholders⁽¹⁾		(41	)		(473	)		(112	)		(838	)
Net income allocate to common shareholders	$	5,441		$	7,266		$	14,804		$	12,192
Denominator:
Weighted average shares outstanding, basic		12,716,010			8,183,774		$	12,698,714			8,137,736
Weighted average effect of dilutive securities:
Stock options		558,855			408,841			589,091			245,280
Warrants		142,525			58,341			156,542			29,171
Weighted average shares outstanding, diluted		13,417,390			8,650,956			13,444,347			8,412,187
Earnings per share, basic	$	0.43		$	0.89		$	1.17		$	1.50
Earnings per share, diluted	$	0.41		$	0.84		$	1.10		$	1.45

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Disaggregation of Revenue

The following is a summary of the Company’s revenue disaggregated by contracts with customers and revenue outside the scope of ASC 606:

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
($ in thousands)	2022			2021		2022			2021
Interest income
Interest income, not-in-scope
Interest and fees on loans	$	12,864		$	11,119	$	26,020		$	19,909
Interest on securities		44			6		83			12
Other interest income		105			10		133			20
Total interest income	$	13,013		$	11,135	$	26,236		$	19,941

Non-interest income
Non-interest income, in-scope
Service charges on deposit accounts	$	7		$	7	$	15		$	13
Strategic Program set up fees		48			19		97			19

Non-interest income, not in-scope
Strategic Program fees		5,878			3,847		12,044			6,720
Gain on sale of loans		2,412			2,397		7,464			5,000
SBA loan servicing fees		342			311		729			463
Change in fair value on investment in BFG		(575	)		1,501		(973	)		1,861
Other miscellaneous income		24			3		34			8
Strategic Program service charges		295			76		703			156
Total non-interest income	$	8,431		$	8,161	$	20,113		$	14,240

Summary of Significant Accounting Policies, Nature of Business and Organization (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 23, 2021	Jul. 15, 2021	Jun. 30, 2022	Dec. 31, 2021	Nov. 19, 2021
Nature of Business and Organization [Abstract]
Common stock, shares issued (in shares)			12,884,821	12,772,010
Common stock, par value (in dollars per share)			$ 0.001	$ 0.001
Net proceeds	$ 39.3
Other expenses	$ 35.6
Initial Public Offering [Member]
Nature of Business and Organization [Abstract]
Common stock, shares issued (in shares)		4,025,000
Common stock, par value (in dollars per share)		$ 0.001
Number of shares sold pursuant to the underwriters (in shares)		525,000
Sale of stock, share price (in dollars per share)					$ 10.50
FinWise Bank [Member]
Nature of Business and Organization [Abstract]
Percentage of business acquired			100.00%

Summary of Significant Accounting Policies, COVID-19 (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
COVID-19 [Abstract]
Principal outstanding	$ 189,670	$ 198,102
PPP Loans [Member]
COVID-19 [Abstract]
Percentage of guaranteed payments by SBA		100.00%
Forgiveness of loan received from SBA		$ 125,200
Amount of principal payments made	400	300
Principal outstanding	$ 700	$ 1,100
PPP Loans [Member] \| Minimum [Member]
COVID-19 [Abstract]
Percentage of loan processing fee	1.00%
PPP Loans [Member] \| Maximum [Member]
COVID-19 [Abstract]
Percentage of loan processing fee	5.00%

Summary of Significant Accounting Policies, Out-of-Period Adjustment (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Out-of-Period Adjustment [Abstract]
Interest and fee on loans and loans receivable, net	$ 12,864		$ 11,119	$ 26,020	$ 19,909
Adjustment [Member]
Out-of-Period Adjustment [Abstract]
Interest and fee on loans and loans receivable, net		$ (800)
Interest and fees, net of tax, on loans and loans receivable, net		$ (600)

Summary of Significant Accounting Policies, Recently adopted accounting pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Recently Adopted Accounting Pronouncements [Abstract]
Assets	$ 365,987	$ 380,214
Liabilities	235,450	$ 264,772
ASU 2018-11 [Member] \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Recently Adopted Accounting Pronouncements [Abstract]
Assets	7,400
Liabilities	$ 7,400

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

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+ Details

Investments, Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Securities held-to-maturity [Abstract]
Amortized cost	$ 12,463	$ 11,423
Estimated fair value	11,070	11,332
Mortgage-Backed Securities [Member]
Securities held-to-maturity [Abstract]
Amortized cost	12,463	11,423
Unrealized gain	0	23
Unrealized loss	(1,393)	(114)
Estimated fair value	$ 11,070	$ 11,332

Investments, Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2022 USD ($) Securities	Dec. 31, 2021 USD ($) Securities
Securities in Unrealized Loss Position [Abstract]
Number of securities in unrealized loss position \| Securities	15	9
Mortgage-Backed Securities [Member]
Securities in Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	$ 11,070	$ 8,961
Less Than 12 Months, Unrealized Losses	(1,393)	(114)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	11,070	8,961
Total, Unrealized Losses	$ (1,393)	$ (114)

Investments, Amortized Cost and Estimated Market Value of Debt Securities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Securities Held-to-Maturity, Amortized Cost [Abstract]
Due in one year or less	$ 0		$ 0
Due after one year through five years	0		0
Due after five years through ten years	2,328		1,541
Due after ten years	10,135		9,882
Amortized cost	12,463		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	2,177		1,548
Due after ten years	8,893		9,784
Estimated fair value	11,070		$ 11,332
Sale of investment securities	0	$ 0
Realized gains or losses	$ 0	$ 0

Investments, FHLB Stock (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Investments [Abstract]
FHLB stock to be held as percentage of membership asset value	1.00%
FHLB stock to be held as percentage of FHLB advances outstanding	2.70%
Investment in Federal Home Loan Bank (FHLB) stock, at cost	$ 449	$ 378

Loans and Allowance for Loan Losses, Loans Summarized to Major Risk Category (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Loans to Major Risk Category [Abstract]
Total loans	$ 232,139		$ 265,788
Loans held-for-sale	(31,599)		(60,748)
Total loans held for investment	200,540		205,040	$ 174,277
Deferred loan costs (fees), net	(268)		2,917
Allowance for loan losses	(10,602)	$ (9,987)	(9,855)	(7,239)	$ (6,184)	$ (6,199)
Net loans	189,670		198,102
Commercial, Non-Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	7,847		3,428
Total loans held for investment	7,847			3,627
Allowance for loan losses	(274)	(107)	(132)	(250)	(191)	(232)
Residential Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	30,965		27,108
Total loans held for investment	30,965			22,410
Allowance for loan losses	(415)	(411)	(352)	(855)	(855)	(855)
Strategic Program Loans [Member]
Loans to Major Risk Category [Abstract]
Total loans	59,066		85,850
Loans held-for-sale	(31,599)		(60,748)
Total loans held for investment	27,467			12,459
Allowance for loan losses	(6,442)	(6,322)	(6,549)	(5,078)	(4,135)	(4,111)
Commercial Real Estate [Member]
Loans to Major Risk Category [Abstract]
Total loans	4,722		2,436
Total loans held for investment	4,722			2,316
Allowance for loan losses	(22)	(21)	(21)	(19)	(19)	(19)
Consumer [Member]
Loans to Major Risk Category [Abstract]
Total loans	5,062		4,574
Total loans held for investment	5,062			4,624
Allowance for loan losses	(65)	(62)	(62)	(60)	(60)	(62)
SBA [Member]
Loans to Major Risk Category [Abstract]
Total loans	124,477		142,392
Total loans held for investment	124,477			128,841
Allowance for loan losses	$ (3,384)	$ (3,064)	$ (2,739)	$ (977)	$ (924)	$ (920)

Loans and Allowance for Loan Losses, Strategic Program Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Strategic Program Loans retained and Held-for-sale [Abstract]
Loans held-for-sale	$ 31,599	$ 60,748
Strategic Program Loans [Member]
Strategic Program Loans retained and Held-for-sale [Abstract]
Cash held in reserve by strategic programs	24,400	39,600
Retained loans	27,467	25,102
Loans held-for-sale	31,599	60,748
Total loans	$ 59,066	$ 85,850

Loans and Allowance for Loan Losses, Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 9,987	$ 6,184	$ 9,855	$ 6,199
Charge-offs	(2,662)	(611)	(5,571)	(1,319)
Recoveries	364	130	458	190
Provision for loan losses	2,913	1,536	5,860	2,169
Ending balance	10,602	7,239	10,602	7,239
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	10,602	7,239	10,602	7,239
Total loans	200,540	174,277	200,540	174,277	$ 205,040
Ending balance individually evaluated for impairment	728	887	728	887
Ending balance collectively evaluated for impairment	199,812	173,390	199,812	173,390
Commercial, Non-Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	107	191	132	232
Charge-offs	0	(22)	0	(63)
Recoveries	1	81	2	81
Provision for loan losses	166	0	140	0
Ending balance	274	250	274	250
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	274	250	274	250
Total loans	7,847	3,627	7,847	3,627
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	7,847	3,627	7,847	3,627
Residential Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	411	855	352	855
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for loan losses	4	0	63	0
Ending balance	415	855	415	855
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	415	855	415	855
Total loans	30,965	22,410	30,965	22,410
Ending balance individually evaluated for impairment		0		0
Ending balance collectively evaluated for impairment	30,965	22,410	30,965	22,410
Strategic Program Loans [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	6,322	4,135	6,549	4,111
Charge-offs	(2,560)	(541)	(5,438)	(1,199)
Recoveries	315	48	408	97
Provision for loan losses	2,365	1,436	4,923	2,069
Ending balance	6,442	5,078	6,442	5,078
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	6,442	5,078	6,442	5,078
Total loans	27,467	12,459	27,467	12,459
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	27,467	12,459	27,467	12,459
Commercial Real Estate [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	21	19	21	19
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for loan losses	1	0	1	0
Ending balance	22	19	22	19
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	22	19	22	19
Total loans	4,722	2,316	4,722	2,316
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	4,722	2,316	4,722	2,316
Consumer [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	62	60	62	62
Charge-offs	0	(1)	0	(3)
Recoveries	0	1	0	1
Provision for loan losses	3	0	3	0
Ending balance	65	60	65	60
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	65	60	65	60
Total loans	5,062	4,624	5,062	4,624
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	5,062	4,624	5,062	4,624
SBA [Member]
Allowance for Credit Loss [Roll Forward]
Beginning balance	3,064	924	2,739	920
Charge-offs	(102)	(47)	(133)	(54)
Recoveries	48	0	48	11
Provision for loan losses	374	100	730	100
Ending balance	3,384	977	3,384	977
Ending balance individually evaluated for impairment	0	0	0	0
Ending balance collectively evaluated for impairment	3,384	977	3,384	977
Total loans	124,477	128,841	124,477	128,841
Ending balance individually evaluated for impairment	728	887	728	887
Ending balance collectively evaluated for impairment	$ 123,749	$ 127,954	$ 123,749	$ 127,954

Loans and Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	$ 728	$ 972
Unpaid Principal Balance	728	972
Related Allowance	0	0
Average Recorded Investment	850	1,134
Interest Income Recognized	43	47
Commercial, Non-Real Estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Residential Real Estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	189
Interest Income Recognized	0	0
Strategic Program Loans [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Commercial Real Estate [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Consumer [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
SBA [Member]
Impaired Financing Receivable, Recorded Investment [Abstract]
Recorded Investment	728	972
Unpaid Principal Balance	728	972
Related Allowance	0	0
Average Recorded Investment	850	945
Interest Income Recognized	$ 43	$ 47

Loans and Allowance for Loan Losses, Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Non-accrual and Past Due Loans [Abstract]
Non-accrual	$ 633	$ 657
Total loans	232,139	265,788
Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	229,570	263,079
30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	991	1,308
60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	770	690
90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	175	54
Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	1,936	2,052
Commercial, Non-Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	7,847	3,428
Commercial, Non-Real Estate [Member] \| Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	7,847	3,428
Commercial, Non-Real Estate [Member] \| 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial, Non-Real Estate [Member] \| 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial, Non-Real Estate [Member] \| 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Commercial, Non-Real Estate [Member] \| Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Residential Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	30,965	27,108
Residential Real Estate [Member] \| Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	30,965	27,108
Residential Real Estate [Member] \| 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Residential Real Estate [Member] \| 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Residential Real Estate [Member] \| 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Residential Real Estate [Member] \| Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Strategic Program Loans [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	59,066	85,850
Strategic Program Loans [Member] \| Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	57,133	84,065
Strategic Program Loans [Member] \| 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	991	1,041
Strategic Program Loans [Member] \| 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	770	690
Strategic Program Loans [Member] \| 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	172	54
Strategic Program Loans [Member] \| Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	1,933	1,785
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	0	0
Total loans	4,722	2,436
Commercial Real Estate [Member] \| Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	4,722	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	5,062	4,574
Consumer [Member] \| Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	5,059	4,554
Consumer [Member] \| 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	20
Consumer [Member] \| 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
Consumer [Member] \| 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	3	0
Consumer [Member] \| Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	3	20
SBA [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual	633	657
Total loans	124,477	142,392
SBA [Member] \| Current [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	123,844	141,488
SBA [Member] \| 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	247
SBA [Member] \| 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
SBA [Member] \| 90+ Days Past Due & Still Accruing [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	0	0
SBA [Member] \| Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total loans	$ 0	$ 247

Loans and Allowance for Loan Losses, Outstanding Loan Balances Categorized by Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	$ 232,139	$ 265,788
Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	170,934	177,485
Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	1,411	1,481
Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	728	972
Commercial, Non-Real Estate [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	7,847	3,428
Commercial, Non-Real Estate [Member] \| Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	7,847	3,382
Commercial, Non-Real Estate [Member] \| Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	46
Commercial, Non-Real Estate [Member] \| Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	0	0
Residential Real Estate [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	30,965	27,108
Residential Real Estate [Member] \| Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	30,965	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	4,722	2,436
Commercial Real Estate [Member] \| Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	4,722	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	5,062	4,574
Consumer [Member] \| Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	5,062	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	59,066	85,850
SBA [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	124,477	142,392
SBA [Member] \| Pass Grade 1-4 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	122,338	139,985
SBA [Member] \| Special Mention Grade 5 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	1,411	1,435
SBA [Member] \| Classified/Doubtful/Loss Grade 6-8 [Member]
Loans and Leases Receivable, Net of Deferred Income [Abstract]
Total loans	$ 728	$ 972

Loans and Allowance for Loan Losses, TDR's (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($) Loan	Jun. 30, 2021 USD ($) Loan	Jun. 30, 2022 USD ($) Contract Loan	Jun. 30, 2021 USD ($) Loan	Dec. 31, 2021 USD ($) Contract
Loans Modified and Recorded as TDR [Abstract]
Number of contracts \| Contract			1		2
Pre-modification outstanding recorded investment			$ 95		$ 106
Post-modification outstanding recorded investment			95		106
Modified Troubled Debt Restructuring [Abstract]
Commitments to lend additional funds to debtors	$ 0		$ 0		$ 0
Number of principal charge-offs related to TDRs \| Loan			1
Charge-offs related to TDRs	$ 0	$ 0	$ 10	$ 0
Number of new loans modification \| Loan	0	0	0	0
Number of restructured loans \| Loan			1	1
SBA [Member]
Loans Modified and Recorded as TDR [Abstract]
Number of contracts \| Contract			1		2
Pre-modification outstanding recorded investment			$ 95		$ 106
Post-modification outstanding recorded investment			$ 95		$ 106
Non-Accrual of Troubled Debt Restructuring [Abstract]
Number of contracts \| Contract					1
Pre-modification outstanding recorded investment					$ 25
Post-modification outstanding recorded investment					$ 25

Premises and Equipment (Details) $ in Thousands	3 Months Ended	6 Months Ended
Premises and Equipment (Details) $ in Thousands	Jun. 30, 2022 USD ($) Lease	Jun. 30, 2022 USD ($) Lease	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Premises and Equipment [Abstract]
Total premises and equipment	$ 7,416	$ 7,416		$ 4,632
Less accumulated depreciation	(1,582)	(1,582)		(1,347)
Premises and equipment, net	5,834	5,834		3,285
Depreciation expense		200	$ 100
Future Minimum Annual Rental Payments for Operating Leases [Abstract]
Six Months Ended December 31, 2022	441	441
Year Ended December 31, 2023	850	850
Year Ended December 31, 2024	1,104	1,104
Year Ended December 31, 2025	1,086	1,086
Year Ended December 31, 2026	1,118	1,118
Thereafter	3,355	3,355
Total	7,954	7,954
Less present value discount	(561)	(561)
Operating lease liabilities	$ 7,393	$ 7,393		0
Number of leases entered into during period \| Lease	1	1
Information Regarding Lease Assets and Liabilities [Abstract]
Weighted-average remaining lease term - operating leases (in years)	7 years 2 months 12 days	7 years 2 months 12 days
Weighted-average discount rate - operating leases	1.90%	1.90%
Supplemental Cash Flow Information Related to Leases [Abstract]
Operating cash flows from operating leases	$ 28	$ 56
Right-of-use assets obtained in exchange for operating lease liabilities	0	7,380	0
Components of Lease Expense [Abstract]
Operating leases, operating lease cost	278	514
Operating leases, variable lease cost	4	8
Operating lease expense	282	522
Short-term lease rent expense	28	28
Net rent expense	310	550	$ 300
Leasehold Improvements [Member]
Premises and Equipment [Abstract]
Total premises and equipment	80	80		80
Furniture, Fixtures and Equipment [Member]
Premises and Equipment [Abstract]
Total premises and equipment	3,315	3,315		2,219
Construction in Progress [Member]
Premises and Equipment [Abstract]
Total premises and equipment	$ 4,021	$ 4,021		$ 2,333

Deposits (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Major classes of deposits [Abstract]
Demand	$ 94,850,000	$ 115,947,000
Savings	7,462,000	6,685,000
Money markets	48,273,000	31,076,000
Time certificates of deposit	68,774,000	98,184,000
Total deposits	219,359,000	251,892,000
Maturities of time deposits [Abstract]
Year Ended December 31, 2022	12,666,000
Year Ended December 31, 2023	21,269,000
Year Ended December 31, 2024	16,374,000
Year Ended December 31, 2025	9,243,000
Year Ended December 31, 2026	8,338,000
Thereafter	884,000
Total	68,774,000	98,184,000
FDIC insurance limit on deposit accounts	250,000	250,000
Time deposits equal or greater than FDIC insurance limits	$ 3,500,000	$ 3,700,000

SBA Servicing Asset (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
SBA Servicing Asset (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
SBA Servicing Asset [Abstract]
SBA loans serviced for others	$ 273,900		$ 210,200
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning balance	3,938	$ 2,415	2,415
Additions to servicing asset	2,243	1,760
Impairment of SBA servicing asset	(1,076)	0
Amortization of servicing asset	(519)	(450)
Ending balance	4,586	$ 3,725	3,938
Fair market value of SBA servicing asset	$ 4,600		$ 3,900
Weighted average prepayment rate	14.12%		14.37%
Weighted average term	4 years 3 months 18 days		4 years 7 days
Weighted average discount rate	15.78%		11.38%

Capital Requirements, Actual Capital Amounts and Ratios (Details)
$ in Thousands

Jun. 30, 2022

USD ($)

Dec. 31, 2021

USD ($)

Leverage Ratio (CBLR Election), Amount [Abstract]

Actual Amount

$ 82,381

$ 65,503

Well-Capitalized Requirement Amount

^[1]

$ 34,625

$ 31,442

Leverage Ratio (CBLR Election), Ratio [Abstract]

Actual Ratio

0.214

0.177

Well Capitalized Requirement Ratio

0.090

0.085

Minimum bank reserve balance

$ 0

[1]	On March 27, 2020 the CARES Act became law. Section 4012 of the CARES Act directs the agencies to issue an interim final rule reducing the CBLR ratio requirement from 9% to 8% for the last two quarters of the year 2020, 8.5% for the calendar year 2021, and 9% thereafter.

Commitments and Contingent Liabilities, Federal Home Loan Bank Secured Line of Credit (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Apr. 20, 2020
Paycheck Protection Program Liquidity Facility [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Line of credit to borrow in overnight funds	$ 400		$ 1,000
Borrowings Fixed-rate of interest				0.35%
Average outstanding borrowings	800	$ 67,800
Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Outstanding line of credit	0		0
Federal Reserve Bank borrowings on collateral	10,000		10,900
Zion Bank [Member] \| Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Unsecured line	1,000		1,000
Bank of the West [Member] \| Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Line of credit to borrow in overnight funds	1,050		1,050
Federal Home Loan Bank Secured Line of Credit [Member]
Federal Home Loan Bank Secured Line of Credit [Abstract]
Line of credit to borrow in overnight funds	3,200		4,100
Outstanding line of credit	0		0
Loans pledged to secure line of credit	$ 5,000		$ 5,400

Commitments and Contingent Liabilities, Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	$ 25,764	$ 17,038
Commercial Real Estate [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	23,830	15,402
Revolving, Open-End Lines of Credit [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	1,290	1,259
Other Unused Commitments [Member]
Financial Instruments with Off-Balance Sheet Risk [Abstract]
Financial instruments with off-balance-sheet risk	$ 644	$ 377

Investment in Business Funding Group, LLC (Details) $ / shares in Units, $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($) $ / shares	Jun. 30, 2021 USD ($)	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2021 $ / shares	Mar. 31, 2020 $ / shares shares
Investment in Business Funding Group, LLC [Abstract]
Common stock, par value (in dollars per share)	$ 0.001			$ 0.001
Investment Business Funding Group, LLC [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest	10.00%		10.00%
Aggregate value of shares exchanged (in shares) \| shares			950,784
Common stock, par value (in dollars per share)			$ 0.001
Fair value of shares exchanged \| $			$ 3.5
Membership interests held by other existing members			90.00%
Distributions received \| $	$ 0.3	$ 0.4
Warrants issued (in shares) \| shares					270,000
Warrants exercise price (in dollars per share)					$ 6.67
Fair value of warrants issued per share (in dollars per share)					$ 0.19
Investment Business Funding Group, LLC [Member] \| Minimum [Member]
Investment in Business Funding Group, LLC [Abstract]
Earnings multiplier					10
Investment Business Funding Group, LLC [Member] \| Maximum [Member]
Investment in Business Funding Group, LLC [Abstract]
Earnings multiplier					15
Investment Business Funding Group, LLC [Member] \| Class A Voting Units [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest			4.96%
Investment Business Funding Group, LLC [Member] \| Class B Non-Voting Units [Member]
Investment in Business Funding Group, LLC [Abstract]
Membership interest			5.04%

Stock-Based Compensation, Summary (Details) - USD ($) $ in Millions					6 Months Ended	12 Months Ended
	Jun. 09, 2022	Nov. 18, 2021	Apr. 06, 2020	Dec. 24, 2019	Jun. 30, 2022	Dec. 31, 2019	Dec. 31, 2018	Apr. 19, 2022
2019 Plan [Member] \| Employee [Member]
Stock-Based Compensation [Abstract]
Number of shares authorized for issuance (in shares)					1,280,000			500,000
Future awards life					10 years
Number of shares available for grant (in shares)					645,178
2016 Plan [Member] \| Employee [Member]
Stock-Based Compensation [Abstract]
Number of shares authorized for issuance (in shares)					299,628
Future awards life					10 years
Number of shares available for grant (in shares)					54
Shares granted (in shares)							0
2019 Plan and 2016 Plan [Member] \| Employee [Member] \| Minimum [Member]
Stock-Based Compensation [Abstract]
Vesting period					1 year
2019 Plan and 2016 Plan [Member] \| Employee [Member] \| Maximum [Member]
Stock-Based Compensation [Abstract]
Future awards life					10 years
Vesting period					5 years
Restricted Stock [Member]
Other Stock-Based Compensation [Abstract]
Stock repurchases (in shares)			73,770			351,852
Restricted Stock [Member] \| Employee [Member]
Stock-Based Compensation [Abstract]
Vesting period					3 years
Other Stock-Based Compensation [Abstract]
Number of restricted shares granted (in shares)	96,011			1,072,746
Aggregate fair value	$ 1.3
Awards vested (in shares)		424,458	73,770			351,852

Stock-Based Compensation, Assumptions Used in Option-pricing Model for Stock Options (Details) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Summary of Assumptions Used [Abstract]
Risk-free interest rate	3.10%
Expected dividend yield	0.00%	0.00%
Minimum [Member]
Summary of Assumptions Used [Abstract]
Risk-free interest rate		0.40%
Expected term in years	5 years 6 months	5 years
Expected volatility	45.80%	45.70%
Maximum [Member]
Summary of Assumptions Used [Abstract]
Risk-free interest rate		0.70%
Expected term in years	6 years 6 months	7 years 6 months
Expected volatility	46.70%	47.60%

Stock-Based Compensation, Stock Option Activity (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Aggregate Intrinsic Value [Abstract]
Proceeds from exercise of stock options			$ 40,000	$ 166,000
Stock Option [Member]
Stock Options [Roll Forward]
Outstanding, beginning of year (in shares)	839,028	862,488	862,488
Option granted (in shares)	89,415		89,415
Options exercised (in shares)			(16,800)
Options forfeited (in shares)	(3,160)		(9,820)
Outstanding, end of period (in shares)	925,283	839,028	925,283		862,488
Options vested and exercisable, end of period (in shares)	607,608		607,608
Weighted Average Exercise Price [Abstract]
Outstanding, beginning of year (in dollars per share)	$ 4.46	$ 4.41	$ 4.41
Options granted (in dollars per share)	13.04		13.04
Options exercised (in dollars per share)			2.37
Options forfeited (in dollars per share)	4.40		3.64
Outstanding, end of period (in dollars per share)	5.29	$ 4.46	5.29		$ 4.41
Options vested and exercisable, end of period (in dollars per share)	$ 4.56		$ 4.56
Weighted Average Remaining Contractual Life [Abstract]
Outstanding	8 years	8 years	8 years		8 years 2 months 12 days
Options granted	9 years 10 months 24 days		9 years 10 months 24 days
Options vested and exercisable	7 years 9 months 18 days		7 years 9 months 18 days
Aggregate Intrinsic Value [Abstract]
Outstanding, beginning of year	$ 10,645,951	$ 8,088,660	$ 8,088,660
Options granted	0		0
Options exercised			248,312	$ 300,000
Options forfeited	16,158		108,515
Outstanding, end of period	4,091,633	$ 10,645,951	4,091,633		$ 8,088,660
Options vested and exercisable	$ 2,898,340		$ 2,898,340
Weighted average grant-date fair value of options granted (in dollars per share)			$ 6.26	$ 1.48
Proceeds from exercise of stock options				$ 200,000

Stock-Based Compensation, Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	$ 100	$ 274	$ 139	$ 1,255
After-tax stock-based compensation expense	99	185	$ 137	1,344
Remaining weighted average recognition period			2 years
Stock Option [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	54	75	$ 93	822
After-tax stock-based compensation expense	53	32	91	713
Unrecognized stock-based compensation expense	700		700
Restricted Stock [Member]
Stock-Based Compensation Expense [Abstract]
Pre-tax stock-based compensation expense	46	199	46	433
After-tax stock-based compensation expense	46	$ 153	46	$ 631
Unrecognized stock-based compensation expense	$ 1,200		$ 1,200

Fair Value of Financial Instruments, Investment in BFG Activity (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2019
Investment in BFG Activity [Abstract]
Beginning balance			$ 5,900	$ 3,770
Distributions from BFG			(327)	(431)
Change in fair value of BFG	$ (575)	$ 1,501	(973)	1,861
Beginning balance	$ 4,600	$ 5,200	$ 4,600	$ 5,200
Lack of Marketability Discount [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investment, measurement input					0.20
Discount to Non-Voting Shares [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Investment, measurement input					0.0450

Fair Value of Financial Instruments, Estimated Fair Value and Carrying Value of Financial Instrument (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Financial assets [Abstract]
Investment securities held-to-maturity	$ 11,070	$ 11,332
SBA servicing asset	4,600	3,900
Investment in BFG	4,600	5,900	$ 5,200	$ 3,770
Level 1 [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
Cash and cash equivalents	96,528	85,754
Level 1 [Member] \| Estimated Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	96,528	85,754
Level 2 [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
Investment securities held-to-maturity	12,463	11,423
Investment in FHLB stock	449	378
Loans held-for-sale	31,599	60,748
Accrued interest receivable	1,422	1,548
SBA servicing asset	4,586	3,938
Financial liabilities [Abstract]
Total deposits	219,359	251,892
Accrued interest payable	34	48
PPP Liquidity Facility	376	1,050
Level 2 [Member] \| Estimated Fair Value [Member]
Financial assets [Abstract]
Investment securities held-to-maturity	11,070	11,332
Investment in FHLB stock	449	378
Loans held-for-sale	31,594	60,743
Accrued interest receivable	1,422	1,548
SBA servicing asset	4,586	3,938
Financial liabilities [Abstract]
Total deposits	204,221	249,488
Accrued interest payable	34	48
PPP Liquidity Facility	376	1,050
Level 3 [Member] \| Carrying Amount [Member]
Financial assets [Abstract]
Loans held for investment	189,670	198,102
Investment in BFG	4,600	5,900
Level 3 [Member] \| Estimated Fair Value [Member]
Financial assets [Abstract]
Loans held for investment	196,654	197,412
Investment in BFG	$ 4,600	$ 5,900

Fair Value of Financial Instruments, Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Level 3 [Member]
Nonrecurring assets [Abstract]
Impaired loans	$ 728	$ 972
Nonrecurring Basis [Member]
Nonrecurring assets [Abstract]
Impaired loans	728	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	$ 728	$ 972

Fair Value of Financial Instruments, Quantitative Information for Level 3 Fair Value Measurements (Details) - Level 3 [Member] $ in Thousands	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans	$ 728	$ 972
Market Comparable [Member] \| Adjustment to Appraisal Value [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, measurement input	0.0038	0.0050

Fair Value of Financial Instruments, Investment in BFG Level 3 Recurring Asset (Details)	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2019
Discount Rate [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input			0.0450
Discounted Cash Flow [Member] \| Level 3 [Member] \| Revenue Growth Rate [Member] \| Recurring [Member] \| Weighted Average [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input	0.146	0.166
Discounted Cash Flow [Member] \| Level 3 [Member] \| Expense Growth Rate [Member] \| Recurring [Member] \| Weighted Average [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input	0.143	0.163
Discounted Cash Flow [Member] \| Level 3 [Member] \| Discount Rate [Member] \| Recurring [Member] \| Weighted Average [Member]
Fair Value Investment in BFG [Abstract]
Investment, measurement input	0.300	0.250
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	3.0	4.0
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	5.0	6.0

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Expense [Abstract]
Increase in deferred tax assets			$ 195	$ 556
Income tax expense	$ 1,786	$ 2,609	$ 5,000	$ 4,535
Effective income tax rate			25.10%	25.80%
Statutory rate			24.90%	24.90%
Unrecognized tax benefits	$ 0		$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Related Parties (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2019
Related Parties [Abstract]
Loans outstanding to related parties	$ 0.0	$ 0.0
Deposits	$ 0.8	$ 0.5
BFG [Member]
Equity Method Investments [Abstract]
Membership interest	10.00%		10.00%

- Definition

Carrying amount as of the balance sheet date of obligations due all related parties.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.17)
-URI https://asc.fasb.org/extlink&oid=126734703&loc=d3e572229-122910

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.15(3),(4))
-URI https://asc.fasb.org/extlink&oid=126897435&loc=d3e534808-122878

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

+ Details

Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Numerator [Abstract]

Net income

$ 5,482

$ 7,739

$ 14,916

$ 13,030

Amount allocated to participating common shareholders

^[1]

(41)

(473)

(112)

(838)

Net income allocate to common shareholders

$ 5,441

$ 7,266

$ 14,804

$ 12,192

Denominator [Abstract]

Weighted average shares outstanding, basic (in shares)

12,716,010

8,183,774

12,698,714

8,137,736

Weighted average effect of dilutive securities [Abstract]

Stock options (in shares)

558,855

408,841

589,091

245,280

Warrants (in shares)

142,525

58,341

156,542

29,171

Weighted average shares outstanding, diluted (in shares)

13,417,390

8,650,956

13,444,347

8,412,187

Earnings per share, basic (in dollars per share)

$ 0.43

$ 0.89

$ 1.17

$ 1.50

Earnings per share, diluted (in dollars per share)

$ 0.41

$ 0.84

$ 1.10

$ 1.45

Options [Member]

Weighted average effect of dilutive securities [Abstract]

Anti-dilutive securities excluded from earnings per share (in shares)

336,192

684,648

Warrants [Member]

Weighted average effect of dilutive securities [Abstract]

Anti-dilutive securities excluded from earnings per share (in shares)

113,458

240,829

[1]	Represents earnings attributable to holders of unvested restricted stock issued outside of the 2016 Plan and 2019 Plan to the Company’s employees for the three or six months ended June 30, 2021.

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest income, not-in-scope [Abstract]
Interest and fees on loans	$ 12,864	$ 11,119	$ 26,020	$ 19,909
Interest on securities	44	6	83	12
Other interest income	105	10	133	20
Total interest income	13,013	11,135	26,236	19,941
Non-interest income [Abstract]
Total non-interest income	8,431	8,161	20,113	14,240
Service Charges on Deposit Accounts [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	7	7	15	13
Strategic Program Set Up Fees [Member]
Non-interest income [Abstract]
Non-interest income, in-scope	48	19	97	19
Strategic Program Fees [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	5,878	3,847	12,044	6,720
Gain on Sale of Loans [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	2,412	2,397	7,464	5,000
SBA Loan Servicing Fees [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	342	311	729	463
Change in Fair Value on Investment in BFG [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	(575)	1,501	(973)	1,861
Other Miscellaneous Income [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	24	3	34	8
Strategic Program Service Charges [Member]
Non-interest income [Abstract]
Non-interest income, not in-scope	$ 295	$ 76	$ 703	$ 156