0001856365-24-000013 | 10-K | XBRL Viewer

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Investment in Business Funding Group, LLC (Details) $ / shares in Units, $ in Millions				12 Months Ended
	Feb. 05, 2024 $ / shares shares	Jul. 25, 2023 seller	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares	Feb. 04, 2024	Jul. 24, 2023	Mar. 31, 2020 $ / shares shares
Schedule of Equity Method Investments [Line Items]
Common stock, par value (in dollars per share)				$ 0.001	$ 0.001
Business Funding Group, LLC
Schedule of Equity Method Investments [Line Items]
Membership interest			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 Company's shares \| $			$ 3.5
Membership interests held by other existing members			90.00%
Distributions received \| $				$ 0.7	$ 0.5
Number of warrants (in shares) \| shares								270,000
Warrant exercise price (in dollars per share)								$ 6.67
Fair value of warrants issued per share (in dollars per share)								$ 0.19
Number of sellers \| seller		4
Additional ownership percentage		0.10
Expected equity method investment ownership percentage		0.20
Business Funding Group, LLC \| Subsequent Event
Schedule of Equity Method Investments [Line Items]
Additional interest acquired						0.10
Business Funding Group, LLC \| Private Placement \| Subsequent Event
Schedule of Equity Method Investments [Line Items]
Aggregate value of shares exchanged (in shares) \| shares	339,176
Common stock, par value (in dollars per share)	$ 0.001
Business Funding Group, LLC \| Minimum
Schedule of Equity Method Investments [Line Items]
Earnings multiplier								10
Business Funding Group, LLC \| Maximum
Schedule of Equity Method Investments [Line Items]
Earnings multiplier								15
Business Funding Group, LLC \| Class A Voting Units
Schedule of Equity Method Investments [Line Items]
Membership interest		4.70%	4.70%				4.70%
Business Funding Group, LLC \| Class B Non-Voting Units
Schedule of Equity Method Investments [Line Items]
Membership interest		15.30%	5.30%				5.30%

Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets
Operating lease liabilities	$ 1,568	$ 1,749
Allowance for loan losses	693	1,639
Accrued bonuses	0	61
Nonqualified stock options	151	124
Restricted stock	242	114
Other	226	290
Total deferred tax assets	2,880	3,977
Deferred tax liabilities
ROU asset	(1,069)	(1,256)
Intangibles	0	(3)
Net book value of fixed assets	(2,216)	(1,230)
Other	(343)	(321)
Total deferred tax liabilities	(3,628)	(2,810)
Deferred tax liabilities, net	$ (748)
Deferred tax assets, net		$ 1,167

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

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 each item is a reasonable estimate of their fair value as loans classified as held-for-sale are generally maintained on balance sheet for a period of a few days.

Loans receivable: 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. Because observable loan transactions are used to determine the risk spreads, the Company considers the measurement to be Level 2.

Investment in BFG: The Company’s valuation technique utilized the average of the discounted cash flow method and the Guideline Public Company method. The valuation was also adjusted using a Guideline Transaction method based on the potential transaction announced on July 25, 2023 and the share price on December 31, 2023. A 20% lack of marketability discount was applied to the valuation as well as a 4.50% discount to non-voting shares to arrive at fair value as of December 31, 2023 and December 31, 2022. 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 $4.2 million and $4.8 million as of December 31, 2023 and December 31, 2022, respectively. The following table summarizes investment in BFG activity for the periods indicated:


	For the Years Ended December 31,
($ in thousands)	2023		2022
Beginning balance	$	4,800	$	5,900
Distributions from BFG	—		(622)
Change in fair value of BFG	(600)		(478)
Ending balance	$	4,200	$	4,800

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.

The table below presents the carrying amount and fair value of the Company's financial instruments:


		December 31, 2023				December 31, 2022
($ in thousands)	Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	116,975	$	116,975	$	100,567	$	100,567
Investment securities held-to-maturity	2	15,388		13,809		14,292		12,728
Investment in FHLB stock	2	238		238		449		449
Loans held for investment	3	358,560		360,032		224,217		237,225
Loans held-for-sale	2	47,514		47,509		23,589		23,589
Accrued interest receivable	2	3,573		3,573		1,818		1,818
SBA servicing asset	2	4,231		4,231		5,210		5,210
Investment in BFG	3	4,200		4,200		4,800		4,800
Financial liabilities:
Total deposits	2	404,833		394,195		242,998		221,287
Accrued interest payable	2	619		619		54		54
PPP Liquidity Facility	2	190		190		314		314

Assets measured at fair value on a nonrecurring basis are summarized as follows:


($ in thousands)			Fair Value Measurements Using
Description of Financial Instrument	Fair Value		Level 1		Level 2		Level 3
December 31, 2023
Nonrecurring assets
Individually evaluated loans	$	27,127	$	—	$	—	$	27,127
December 31, 2022
Nonrecurring assets
Individually evaluated loans	$	450	$	—	$	—	$	450

Individually evaluated loans – The loan amount above represents loans individually evaluated that have been adjusted to fair value. When collateral dependent loans are individually evaluated, they are 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 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 December 31, 2023 and as of December 31, 2022, along with the valuation techniques used, are shown in the following table:

($ in thousands)

Fair Value

Valuation
Technique

Unobservable
Input

Range
(Weighted Average)

December 31, 2023

Individually evaluated loans

27,127

Market
comparable

Adjustment to
appraisal value

7.57

December 31, 2022

Individually evaluated loans

450

Market
comparable

Adjustment to
appraisal value

0.20

The range and weighted average of the significant unobservable inputs used to fair value the investment in BFG Level 3 recurring asset as of December 31, 2023 and as of December 31, 2022 are shown in the following table:


($ in thousands)	December 31, 2023 Range (Weighted Average)		December 31, 2022 Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate	11.0	%	10.8	%
Expense growth rate	13.4	%	11.5	%
Discount rate	20.0	%	30.0	%

Guideline Public Company
Multiples of enterprise value	3.5x to 5.5x		3.0x to 5.0x

As mentioned above, the valuation as of December 31, 2023 was also adjusted using a Guideline Transaction method based on the potential transaction announced on July 25, 2023 and the share price on December 31, 2023.

- 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

Loans Held for Investment and Allowance for Credit Losses - TDR's (Details) - SBA $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts \| contract	1
Pre- Modification Outstanding Recorded Investment	$ 377
Post- Modification Outstanding Recorded Investment	$ 377

Loans Held for Investment and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

Loans and Leases Receivable Disclosure [Abstract]

Loans Summarized to Major Risk Category

Loans held for investment outstanding by general ledger classification as of December 31, 2023 and December 31, 2022, consisted of the following:


	December 31,		December 31,
	2023		2022
($ in thousands)
SBA(1)	$	239,922	$	145,172
Commercial leases	38,110		9,252
Commercial, non-real estate	2,457		2,232
Residential real estate	38,123		37,815
Strategic Program loans	19,408		24,259
Commercial real estate:
Owner occupied	20,798		8,733
Non-owner occupied	2,025		3,330
Consumer	11,372		5,808
Total loans held for investment	$	372,215	$	236,601
Deferred loan fees, net	(767)		(399)
Allowance for credit losses(2)	(12,888)		(11,985)
Net loans	$	358,560	$	224,217

(1) Included in the SBA loans held for investment above are $131.7 million and $49.5 million of loans guaranteed by the SBA as of December 31, 2023 and December 31, 2022, respectively.
(2) The Company adopted ASU 2016-13 as of January 1, 2023. The 2022 amounts presented are calculated under the prior accounting standard.

The following pool segments identified as of December 31, 2023 are based on the CECL methodology:


($ in thousands)
Construction and land development	$	28,330
Residential real estate	51,428
Residential real estate multifamily	647
Commercial real estate:
Owner occupied	186,550
Non-owner occupied	15,354
Commercial and industrial	21,399
Consumer	10,989
Commercial leases	38,110
Retained Strategic Program loans	19,408
Total loans	$	372,215

The portfolio classes identified as of December 31, 2022 are based on the incurred loss methodology and are segmented by general ledger classification as detailed below.


($ in thousands)
SBA	$	145,172
Commercial leases	9,252
Commercial, non-real estate	2,232
Residential real estate	37,815
Retained Strategic Program loans	24,259
Commercial real estate	12,063
Consumer	5,808
Total loans	$	236,601

The following tables present the allowance for credit losses and the amortized cost basis of collateral-dependent loans by class of loans as of the dates indicated:


($ in thousands)			Collateral Type
As of December 31, 2023	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	615	$	—	$	615
Residential real estate	—		1,585		—		1,585
Commercial real estate:
Owner occupied	45		21,643		—		21,643
Non-owner occupied	—		2,362		—		2,362
Commercial and industrial	—		—		282		282
Total	$	45	$	26,205	$	282	$	26,487

The amount of collateral-dependent SBA loans as of December 31, 2023 include $15.0 million of SBA 7(a) loan balances that are guaranteed by the SBA.


($ in thousands)	Collateral Type
As of December 31, 2022	Real Estate		Personal Property		Total
Commercial real estate	$	1,426	$	—	$	1,426

Strategic Program Loans Retained and Held-for-sale

Strategic Program loans retained and held-for-sale as of December 31, 2023 and December 31, 2022, are summarized as follows:


	December 31,		December 31,
	2023		2022
($ in thousands)
Retained Strategic Program loans	$	19,408	$	24,259
Strategic Program loans held-for-sale	47,514		23,589
Total Strategic Program loans	$	66,922	$	47,848

Changes in Allowance for Credit Losses

Activity in the ACL by common characteristic loan pools based on the CECL methodology was as follows:


	Years Ended December 31, 2023
($ in thousands)	Beginning Balance		Impact of ASU 2016-13 adoption		Provision (Reversal) of Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	424	$	(67)	$	(41)	$	—	$	—	$	316
Residential real estate	876		(58)		273		(225)		90		956
Residential real estate multifamily	3		1		2		—		—		6
Commercial real estate:
Owner occupied	3,030		(532)		1,551		(714)		1		3,336
Non-owner occupied	208		(42)		(262)		—		378		282
Commercial and industrial	339		(85)		558		(472)		21		361
Consumer	65		14		198		(68)		2		211
Commercial leases	339		(105)		121		—		—		355
Retained Strategic Program loans	6,701		1,131		9,124		(10,946)		1,054		7,065
Total allowance for loan losses	$	11,985	$	257	$	11,525	$	(12,425)	$	1,546	$	12,888

Unfunded lending commitments	—		26		113		—		—		139
Total allowance for credit losses	$	11,985	$	283	$	11,638	$	(12,425)	$	1,546	$	13,027

Activity in the allowance for loan losses by general ledger classification based on the incurred loss methodology was as follows:


	Years Ended December 31, 2022
($ in thousands)	Beginning Balance		Provision of Loan Losses		Charge-Offs		Recoveries		Ending Balance
SBA	$	2,739	$	1,881	$	(392)	$	66	$	4,294
Commercial leases	56		289		—		—		345
Commercial, non-real estate	76		(22)		—		2		56
Residential real estate	352		145		—		—		497
Retained Strategic Program loans	6,549		11,215		(11,948)		885		6,701
Commercial real estate	21		6		—		—		27
Consumer	62		5		(66)		64		65
Total allowance for loan losses	$	9,855	$	13,519	$	(12,406)	$	1,017	$	11,985

The following table presents the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance as of December 31, 2022. For the year ended December 31, 2022, the allowance was calculated based on the incurred loss methodology.


	Allowance for Loan Losses						Portfolio Loan Balances
($ in thousands)	Individually Evaluated		Collectively Evaluated		Total		Individually Evaluated		Collectively Evaluated		Total
SBA	$	—	$	4,294	$	4,294	$	450	$	144,722	$	145,172
Commercial leases	—		345		345		—		9,252		9,252
Commercial, non-real estate	—		56		56		—		2,232		2,232
Residential real estate	—		497		497		—		37,815		37,815
Retained Strategic Program loans	—		6,701		6,701		—		24,259		24,259
Commercial real estate	—		27		27		—		12,063		12,063
Consumer	—		65		65		—		5,808		5,808
Total loans	$	—	$	11,985	$	11,985	$	450	$	236,151	$	236,601

Impaired Loans

The following table presents, under previously applicable GAAP, loans individually evaluated for impairment as of December 31, 2022:


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
($ in thousands)
With no related allowance recorded
SBA	$	450	$	450	$	—	$	711	$	36
Commercial leases	—		—		—		—		—
Commercial, non-real estate	—		—		—		—		—
Residential real estate	—		—		—		—		—
Retained Strategic Program loans	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Consumer	—		—		—		—		—
Total	$	450	$	450	$	—	$	711	$	36

Nonaccrual and Past Due Loans

Nonaccrual and past due loans are summarized below as of December 31, 2023 and December 31, 2022:


December 31, 2023
	Loans Past Due and Still Accruing
($ in thousands)	30-89 Days Past Due		90 Days and Greater		Total		Non- Accrual Loans with no ACL(1)		Non-Accrual Loans with ACL		Current Loans		Total Loans

Construction and land development	$	1,648	$	297	$	1,945	$	—	$	—	$	26,385	$	28,330
Residential real estate	23		—		23		1,585		—		49,820		51,428
Residential real estate multifamily	—		—		—		—		—		647		647
Commercial real estate:									—
Owner occupied	—		—		—		21,643		640		164,267		186,550
Non-owner occupied	—		—		—		2,362		—		12,992		15,354
Commercial and industrial	—		—		—		282		—		21,117		21,399
Consumer	81		47		128		—		—		10,860		10,989
Commercial leases	—		—		—		—		—		38,110		38,110
Retained Strategic Program loans	1,953		96		2,049		—		—		17,359		19,408
Total	$	3,705	$	440	$	4,145	$	25,872	$	640	$	341,558	$	372,215

(1) Included in the nonaccrual loan balances are $15.0 million of SBA 7(a) loan balances guaranteed by the SBA.


December 31, 2022
($ in thousands)	Current		30-59 Days Due Due		60-89 Days Due Due		90+ Days Past Due & Still Accruing		Total Past Due		Non- Accrual		Total
SBA	$	143,733	$	1,439	$	—	$	—	$	1,439	$	—	$	145,172
Commercial leases	9,252		—		—		—		—		—		9,252
Commercial, non-real estate	2,232		—		—		—		—		—		2,232
Residential real estate	37,387		428		—		—		428		—		37,815
Retained Strategic Program loans	22,080		1,184		802		193		2,179		—		24,259
Commercial real estate	12,063		—		—		—		—		—		12,063
Consumer	5,776		32		—		—		32		—		5,808
Total	$	232,523	$	3,083	$	802	$	193	$	4,078	$	—	$	236,601

Outstanding Loan Balances Categorized by Credit Quality Indicators

The following table presents the ending balances of the Company's loan and lease portfolio including non-performing loans by class of receivable and originating year and considering certain credit quality indicators as of the date indicated along with gross chargeoffs for the year ended December 31, 2023:


December 31, 2023	2023		2022		2021		Prior		Revolving Loans		Total
($ in thousands)

Construction and land development
Pass	$	12,919	$	10,345	$	4,354	$	97	$	—	$	27,715
Watch	—		—		—		—		—		—
Special Mention	—		—		—		—		—		—
Substandard	—		615		—		—		—		615
Total	12,919		10,960		4,354		97		—		28,330
Current period gross writeoff	—		—		—		—		—		—

Residential real estate
Pass	2,209		874		1,480		2,947		2,249		9,759
Watch	23,614		12,399		1,661		2,035		—		39,709
Special Mention	—		—		208		11		—		219
Substandard	—		1,585		—		156		—		1,741
Total	25,823		14,858		3,349		5,149		2,249		51,428
Current period gross writeoff	—		(121)		—		(104)		—		(225)

Residential real estate multifamily
Pass	278		263		80		—		—		621
Watch	—		—		—		26		—		26
Special Mention	—		—		—		—		—		—
Substandard	—		—		—		—		—		—


Total	278	263	80	26	—	647
Current period gross writeoff	—	—	—	—	—	—

Commercial real estate owner occupied
Pass	12,566	1,234	854	12,207	—	26,861
Watch	62,360	53,832	11,871	7,654	—	135,717
Special Mention	—	192	—	1,498	—	1,690
Substandard	16,466	3,712	1,066	1,038	—	22,282
Total	91,392	58,970	13,791	22,397	—	186,550
Current period gross writeoff	(318)	(21)	(97)	(278)	—	(714)

Commercial real estate non-owner occupied
Pass	2,805	1,294	—	419	—	4,518
Watch	4,382	2,635	1,223	234	—	8,474
Special Mention	—	—	—	—	—	—
Substandard	—	2,362	—	—	—	2,362
Total	7,187	6,291	1,223	653	—	15,354
Current period gross writeoff	—	—	—	—	—	—

Commercial and industrial
Pass	2,090	601	744	821	31	4,287
Watch	10,157	4,600	764	930	—	16,451
Special Mention	—	—	—	8	—	8
Substandard	260	—	—	393	—	653
Total	12,507	5,201	1,508	2,152	31	21,399
Current period gross writeoff	(87)	(114)	(122)	(149)	—	(472)

Consumer
Pass	7,792	1,975	637	558	2	10,964
Watch	24	—	—	1	—	25
Special Mention	—	—	—	—	—	—
Substandard	—	—	—	—	—	—
Total	7,816	1,975	637	559	2	10,989
Current period gross writeoff	(3)	(5)	(53)	(7)	—	(68)

Commercial leases
Pass	31,313	6,559	—	238	—	38,110
Watch	—	—	—	—	—	—
Special Mention	—	—	—	—	—	—
Substandard	—	—	—	—	—	—
Total	31,313	6,559	—	238	—	38,110
Current-period gross writeoffs	—	—	—	—	—	—

Retained Strategic Program loans
Pass	—	—	—	—	—	—
Watch	—	—	—	—	—	—


Special Mention	—	—	—	—	—	—
Substandard	—	—	—	—	—	—
Not Rated	14,506	3,609	1,292	1	—	19,408
Total	14,506	3,609	1,292	1	—	19,408
Current-period gross writeoffs	(3,773)	(6,154)	(1,017)	(2)	—	(10,946)

Total portfolio loans receivable, gross	203,741	108,686	26,234	31,272	2,282	372,215
Total current-period gross writeoffs	(4,181)	(6,415)	(1,289)	(540)	—	(12,425)

Commercial

The following table presents the ending balances of the Company's loan and lease portfolio including non-performing loans by class of receivable and considering certain credit quality indicators as of the date indicated:


December 31, 2022
($ in thousands)	Pass Grade 1-4		Special Mention Grade 5		Classified/ Doubtful/Loss Grade 6-8		Total
SBA	$	144,149	$	573	$	450	$	145,172
Commercial leases	9,252		—		—		9,252
Commercial, non-real estate	2,232		—		—		2,232
Residential real estate	37,815		—		—		37,815
Commercial real estate	12,063		—		—		12,063
Consumer	5,808		—		—		5,808
Not Risk Graded
Retained Strategic Program loans							24,259
Total	$	211,319	$	573	$	450	$	236,601

Loans Modified and Recorded as TDR's

In the year ended December 31, 2023 there was one material loan modification reportable under the new guidance. This loan was current as of December 31, 2023.

As of December 31, 2023

($ in thousands)

Principal deferment (Months)

Outstanding Balance

Residential real estate

12 months

156

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


($ in thousands)	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
December 31, 2022
SBA	1	$	377	$	377
Total at December 31, 2022	1	$	377	$	377

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Auditor Information [Abstract]
Auditor Firm ID	173
Auditor Name	Moss Adams LLP
Auditor Location	Spokane, Washington

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Impact of ASU 2016-13 adoption	Common Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Impact of ASU 2016-13 adoption
Beginning balance (in shares) at Dec. 31, 2021			12,772,010
Beginning balance at Dec. 31, 2021	$ 115,442		$ 13	$ 54,836	$ 60,593
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense (in shares)			123,055
Stock-based compensation expense	778			778
Common stock repurchased (in shares)			(120,000)
Common stock repurchased	$ (1,136)			(1,260)	124
Stock options exercised (in shares)	56,280		56,280
Stock options exercised	$ 260			260
Net Income	25,115				25,115
Ending balance (in shares) at Dec. 31, 2022			12,831,345
Ending balance at Dec. 31, 2022	$ 140,459	$ (212)	$ 13	54,614	85,832	$ (212)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Stock-based compensation expense (in shares)			168,821
Stock-based compensation expense	$ 2,046			2,046
Common stock repurchased (in shares)			(524,241)
Common stock repurchased	$ (4,741)		$ (1)	(5,504)	764
Stock options exercised (in shares)	17,640		17,640
Stock options exercised	$ 44			44
Net Income	17,460				17,460
Ending balance (in shares) at Dec. 31, 2023			12,493,565
Ending balance at Dec. 31, 2023	$ 155,056		$ 12	$ 51,200	$ 103,844

Summary of Significant Accounting Policies - Stock Repurchase Program (Details) - USD ($) $ in Thousands	12 Months Ended		17 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Aug. 16, 2022
Stock Buyback [Abstract]
Common stock repurchase program, shares authorized to be purchases (in shares)		644,241		644,241
Common stock repurchased (in shares)			644,241
Common stock repurchased, value	$ 4,741	$ 1,136	$ 5,900

- Definition

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

- Definition

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

Fair Value of Financial Instruments - Investment in BFG Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Change in Fair Value of Investment [Roll Forward]
Beginning balance	$ 4,800	$ 5,900
Distributions from BFG	0	(622)
Change in fair value of BFG	(600)	(478)
Ending balance	$ 4,200	$ 4,800

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

The components of income tax expense consist of the following:


	For the Years Ended December 31,
($ in thousands)	2023		2022
Current tax expense
Federal	$	3,446	$	8,315
State	992		1,945
Deferred tax expense
Federal	1,614		553
State	301		103
Income tax expense	$	6,353	$	10,916

The components of net deferred income tax assets and liabilities on the balance sheet at December 31, 2023 and 2022, are as follows:


	December 31,
($ in thousands)	2023		2022
Deferred tax assets
Operating lease liabilities	$	1,568	$	1,749
Allowance for loan losses	693		1,639
Accrued bonuses	—		61
Nonqualified stock options	151		124
Restricted stock	242		114
Other	226		290
Total deferred tax assets	2,880		3,977

Deferred tax liabilities
ROU asset	(1,069)		(1,256)
Intangibles	—		(3)
Net book value of fixed assets	(2,216)		(1,230)
Other	(343)		(321)
Total deferred tax liabilities	(3,628)		(2,810)
Deferred taxes, net	$	(748)	$	1,167

The income tax expense recorded differs from the expected income tax expense and the reconciliation of these differences is as follows at December 31, 2023 and 2022:


	For the Years Ended December 31,
($ in thousands)	2023		2022
Federal income tax expense at statutory rates	$	5,001	$	7,567
Effect of permanent differences	323		811
State income tax expense, net	991		1,560
Other	38		978
Income tax expense	$	6,353	$	10,916

The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2023, and 2022, the Company recognized approximately $0.3 million and de minimis interest or penalties. The Company files a United States federal income tax return and state income tax returns in Utah, Florida, and New York. Open tax years that are potentially subject to examination related to the U.S. federal jurisdiction are 2020 and subsequent years.

The Company had no unrecognized tax benefits at December 31, 2023 and 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
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Capital Requirements - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Capital Requirements [Abstract]
Reserve requirements	$ 0	$ 0

Condensed Financial Statements of Parent - Statement of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Non-interest income
Change in fair value on investment in BFG	$ (600)	$ (478)
Other miscellaneous income	2,616	269
Total non-interest income	21,080	37,411
Non-interest expense
Salaries and employee benefits	25,751	24,489
Professional services	4,961	5,454
Other operating expenses	6,540	4,881
Total non-interest expense	40,188	38,756
Income before provision for income tax	23,813	36,031
Income tax benefit	6,353	10,916
Net income	17,460	25,115
Parent Company
Non-interest income
Change in fair value on investment in BFG	(600)	(1,100)
Equity in undistributed earnings of subsidiary	21,992	29,090
Other miscellaneous income	685	622
Total non-interest income	22,077	28,612
Non-interest expense
Salaries and employee benefits	3,565	2,316
Professional services	1,765	1,990
Other operating expenses	860	470
Total non-interest expense	6,190	4,776
Income before provision for income tax	15,887	23,836
Income tax benefit	(1,574)	(1,279)
Net income	$ 17,461	$ 25,115

Fair Value of Financial Instruments - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial assets:
Investment securities held-to-maturity	$ 13,809	$ 12,728
SBA servicing asset	4,200	5,200
Investment in BFG	4,200	4,800	$ 5,900
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	116,975	100,567
Level 1 \| Estimated Fair Value
Financial assets:
Cash and cash equivalents	116,975	100,567
Level 2 \| Carrying Amount
Financial assets:
Investment securities held-to-maturity	15,388	14,292
Investment in FHLB stock	238	449
Loans held-for-sale	47,514	23,589
Accrued interest receivable	3,573	1,818
SBA servicing asset	4,231	5,210
Financial liabilities:
Total deposits	404,833	242,998
Accrued interest payable	619	54
PPP Liquidity Facility	190	314
Level 2 \| Estimated Fair Value
Financial assets:
Investment securities held-to-maturity	13,809	12,728
Investment in FHLB stock	238	449
Loans held-for-sale	47,509	23,589
Accrued interest receivable	3,573	1,818
SBA servicing asset	4,231	5,210
Financial liabilities:
Total deposits	394,195	221,287
Accrued interest payable	619	54
PPP Liquidity Facility	190	314
Level 3 \| Carrying Amount
Financial assets:
Loans held for investment	358,560	224,217
Investment in BFG	4,200	4,800
Level 3 \| Estimated Fair Value
Financial assets:
Loans held for investment	360,032	237,225
Investment in BFG	$ 4,200	$ 4,800

Loans Held for Investment and Allowance for Credit Losses - Impaired Loans (Details) - Financing Receivable, Incurred Loss Methodology $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
With no related allowance recorded
Recorded Investment	$ 450
Unpaid Principal Balance	450
Related Allowance	0
Average Recorded Investment	711
Interest Income Recognized	36
SBA
With no related allowance recorded
Recorded Investment	450
Unpaid Principal Balance	450
Related Allowance	0
Average Recorded Investment	711
Interest Income Recognized	36
Commercial leases
With no related allowance recorded
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Commercial, non-real estate
With no related allowance recorded
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Residential real estate
With no related allowance recorded
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Strategic Program loans
With no related allowance recorded
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Commercial real estate
With no related allowance recorded
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	0
Consumer
With no related allowance recorded
Recorded Investment	0
Unpaid Principal Balance	0
Related Allowance	0
Average Recorded Investment	0
Interest Income Recognized	$ 0

Investments

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

Investment securities held-to-maturity, at cost

The Company's held-to-maturity ("HTM") investment portfolio consists of Agency mortgage-backed securities and Agency collateralized mortgage obligations. The Company reports HTM securities on the Company's Consolidated Balance Sheets at carrying value which is amortized cost. The amortized cost, allowance for credit losses, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at December 31, 2023 and December 31, 2022, are summarized as follows:


	December 31, 2023
($ in thousands)	Amortized Cost		Allowance for Credit Losses		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	6,959	$	—	$	—	$	(817)	$	6,142
Collateralized mortgage obligations	8,429		—		4		(766)		7,667
Total securities held-to-maturity	$	15,388	$	—	$	4	$	(1,583)	$	13,809


	December 31, 2022
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	8,087	$	5	$	(825)	$	7,267
Collateralized mortgage obligations	6,205		—		(744)		5,461
Total securities held-to-maturity	$	14,292	$	5	$	(1,569)	$	12,728

Credit Quality Indicators & Allowance for Credit Losses - HTM

On January 1, 2023, the Company adopted ASU 2016-13, which replaced the legacy GAAP other-than-temporary impairment ("OTTI") model with a credit loss model. ASU 2016-13 requires an allowance on lifetime expected credit losses on HTM debt securities but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. For HTM securities, the Company evaluates the credit risk of its securities on at least a quarterly basis. The Company estimates expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities is excluded from the estimate of credit losses. At December 31, 2023 and at adoption of CECL on January 1, 2023, there was no ACL related to HTM securities due to the composition of the portfolio which is generally considered to have minimal credit risk given the government guarantee associated with these agencies.

The Company had nineteen securities, consisting of nine collateralized mortgage obligations and ten mortgage-backed securities, in an unrealized loss position at December 31, 2023 and seventeen securities, consisting of eight collateralized mortgage obligations and nine mortgage-backed securities, in an unrealized loss position at December 31, 2022, as summarized in the following tables:


	December 31, 2023
	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	$	680	$	(16)	$	5,462	$	(802)	$	6,142	$	(817)
Collateralized mortgage obligations	934		(4)		4,812		(762)		5,746		(766)
Total securities held-to-maturity	$	1,614	$	(20)	$	10,274	$	(1,564)	$	11,888	$	(1,583)


	December 31, 2022
	Less than 12 months				12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	2,374	$	(190)	$	3,962	$	(635)	$	6,336	$	(825)
Collateralized mortgage obligations	2,752		(96)		2,709		(648)		5,461		(744)
Total securities held-to-maturity	$	5,126	$	(286)	$	6,671	$	(1,283)	$	11,797	$	(1,569)

The amortized cost and estimated market value of debt securities at December 31, 2023 and December 31, 2022, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	December 31, 2023				December 31, 2022
($ 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	2,745		2,577		3,388		3,202
Due after ten years	12,643		11,233		10,904		9,526
Total Securities held-to-maturity	$	15,388	$	13,809	$	14,292	$	12,728

At December 31, 2023, held-to-maturity securities in the amount of $13.8 million were pledged as collateral for credit lines held by the Bank at the Federal Reserve Bank of San Francisco. There were no sales or transfers of investment securities and no realized gains or losses on these securities during the years ended December 31, 2023 or 2022.

FHLB stock

The Bank is a member of the FHLB system. Members are required to own FHLB stock of at least the greater of 0.06% of FHLB membership asset value or 4.50% of outstanding FHLB advances. At December 31, 2023 and December 31, 2022, the Bank owned $0.2 million and $0.4 million, respectively, of FHLB stock, which is carried at cost. The Company evaluated the carrying value of its FHLB stock investment at December 31, 2023 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 its recorded investment.

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Shareholders' equity	$ 155,056	$ 140,459	$ 115,442
Total allowance for loan losses	12,888	11,985	9,855
Unfunded lending commitments	139	0
Total allowance for credit losses	13,027	11,985
Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Shareholders' equity		(212)
Total allowance for loan losses		257
Unfunded lending commitments		26
Total allowance for credit losses	300	283
After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		12,242
Unfunded lending commitments		26
Total allowance for credit losses		12,268
Construction and land development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	316	424
Construction and land development \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		(67)
Construction and land development \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		357
Residential real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	956	876	352
Residential real estate \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		(58)
Residential real estate \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		818
Residential real estate multifamily
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	6	3
Residential real estate multifamily \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		1
Residential real estate multifamily \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		4
Commercial real estate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses			21
Owner occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	3,336	3,030
Owner occupied \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		(532)
Owner occupied \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		2,498
Non-owner occupied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	282	208
Non-owner occupied \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		(42)
Non-owner occupied \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		166
Commercial and industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	361	339
Commercial and industrial \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		(85)
Commercial and industrial \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		254
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	211	65	62
Consumer \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		14
Consumer \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		79
Commercial leases
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	355	339	56
Commercial leases \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		(105)
Commercial leases \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		234
Strategic Program loans
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses	$ 7,065	6,701	$ 6,549
Strategic Program loans \| Impact of ASU 2016-13 adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		1,131
Strategic Program loans \| After ASU 2016-13 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total allowance for loan losses		$ 7,832

Investments - Amortized Cost and Estimated Market Value of Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Amortized Cost
Due in one year or less	$ 0	$ 0
Due after one year through five years	0	0
Due after five years through ten years	2,745	3,388
Due after ten years	12,643	10,904
Amortized cost	15,388	14,292
Estimated Fair Value
Due in one year or less	0	0
Due after one year through five years	0	0
Due after five years through ten years	2,577	3,202
Due after ten years	11,233	9,526
Estimated fair value	$ 13,809	$ 12,728

Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2023

Capital Requirements [Abstract]

Capital Amounts and Ratios

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


	Actual				Well-Capitalized Requirement
($ in thousands)	Amount		Ratio		Amount		Ratio
December 31, 2023
Leverage ratio (CBLR election)	$	116,108	20.7	%	$	50,441	9.0	%
December 31, 2022
Leverage ratio (CBLR election)	$	91,674	25.1	%	$	32,898	9.0	%

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
After-tax income	$ 17,460	$ 25,115

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Fair Value of Financial Instruments - Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Level 3
Nonrecurring assets
Individually evaluated loans	$ 27,127	$ 450
Fair Value
Nonrecurring assets
Individually evaluated loans	27,127	450
Fair Value \| Level 1
Nonrecurring assets
Individually evaluated loans	0	0
Fair Value \| Level 2
Nonrecurring assets
Individually evaluated loans	0	0
Fair Value \| Level 3
Nonrecurring assets
Individually evaluated loans	$ 27,127	$ 450

Condensed Financial Statements of Parent (Tables)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Balance Sheets


	December 31,
($ in thousands)	2023		2022
ASSETS
Cash and cash equivalents	$	28,510	$	36,321
Investment in subsidiary bank	122,055		100,276
Investment in Business Funding Group (BFG), at fair value	4,200		4,800
Investment in FinWise Investments, LLC	290		271
Deferred taxes, net	188		127
Income taxes receivable	828		—
Other assets	41		37
Total assets	$	156,112	$	141,832
LIABILITIES AND SHAREHOLDERS’ EQUITY
Income taxes payable	—		1,077
Other liabilities	1,056		296
Shareholders’ equity	155,056		140,459
Total liabilities and shareholders’ equity	$	156,112	$	141,832

Statement of Income


	For the Years Ended December 31,
($ in thousands)	2023		2022
Non-interest income
Change in fair value on investment in BFG	$	(600)	$	(1,100)
Equity in undistributed earnings of subsidiary	21,992		29,090
Other miscellaneous income	685		622
Total non-interest income	22,077		28,612
Non-interest expense
Salaries and employee benefits	3,565		2,316
Professional services	1,765		1,990
Other operating expenses	860		470
Total non-interest expense	6,190		4,776
Income before income tax expense	15,887		23,836
Income tax benefit	(1,574)		(1,279)
Net income	$	17,461	$	25,115

Statements of Cash Flows


	For the Years Ended December 31,
($ in thousands)	2023		2022
Cash flows from operating activities:
Net income	$	17,461	$	25,115
Adjustments to reconcile net income to net cash from operating activities
Change in fair value of BFG	600		1,100
Stock-based compensation expense	2,046		778
Deferred income tax expense	(61)		(45)
Net changes in:
Income tax payable (receivable)	(1,905)		844
Other assets	(4)		285
Other liabilities	760		(296)
Net cash provided by operating activities	18,897		27,781
Cash flows from investing activities:
Investment in subsidiary bank	(21,992)		(29,090)
Investment in FinWise Investments, LLC	(19)		(191)
Net cash used in investing activities	(22,011)		(29,281)
Cash flows from financing activities:
Proceeds from exercise of stock options	44		260
Common stock repurchased	(4,741)		(1,136)
Net cash used in financing activities	(4,697)		(876)
Net change in cash and cash equivalents	(7,811)		(2,376)
Cash and cash equivalents, beginning of year	36,321		38,697
Cash and cash equivalents, end of year	$	28,510	$	36,321

Condensed Financial Statements of Parent - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 116,975	$ 100,567
Investment in Business Funding Group (BFG), at fair value	4,200	4,800	$ 5,900
Deferred taxes, net	0	1,167
Income taxes receivable	2,400	0
Other assets	14,219	10,152
Total assets	586,221	400,780
LIABILITIES AND SHAREHOLDERS’ EQUITY
Income taxes payable, net	1,873	1,077
Other liabilities	16,606	8,858
Shareholders' equity	155,056	140,459	$ 115,442
Total liabilities and shareholders’ equity	586,221	400,780
Parent Company
ASSETS
Cash and cash equivalents	28,510	36,321
Investment in subsidiary bank	122,055	100,276
Investment in Business Funding Group (BFG), at fair value	4,200	4,800
Investment in FinWise Investments, LLC	290	271
Deferred taxes, net	188	127
Income taxes receivable	828	0
Other assets	41	37
Total assets	156,112	141,832
LIABILITIES AND SHAREHOLDERS’ EQUITY
Income taxes payable, net	0	1,077
Other liabilities	1,056	296
Shareholders' equity	155,056	140,459
Total liabilities and shareholders’ equity	$ 156,112	$ 141,832

Premises and Equipment - Lease Assets and Liabilities (Details)	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Weighted-average remaining lease term – operating leases (in years)	5 years 9 months 18 days	6 years 8 months 12 days
Weighted-average discount rate – operating leases	1.90%	1.90%

Fair Value of Financial Instruments - Investment in BFG Level 3 Recurring Asset (Details)	Dec. 31, 2023	Dec. 31, 2022
Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.0450	0.0450
Discounted Cash Flows \| Level 3 \| Revenue growth rate \| Fair Value, Recurring \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.110	0.108
Discounted Cash Flows \| Level 3 \| Expense growth rate \| Fair Value, Recurring \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.134	0.115
Discounted Cash Flows \| Level 3 \| Discount rate \| Fair Value, Recurring \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.200	0.300
Guideline Public Company \| Level 3 \| Multiples of enterprise value \| Fair Value, Recurring \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	3.5	3.0
Guideline Public Company \| Level 3 \| Multiples of enterprise value \| Fair Value, Recurring \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	5.5	5.0

Stock-Based Compensation - Narrative (Details) - USD ($)			8 Months Ended	12 Months Ended
	Jun. 20, 2019	Apr. 20, 2017	Dec. 31, 2017	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average grant-date fair value (in dollars per share)				$ 4.11	$ 6.26
Aggregate intrinsic value of options				$ 120,229	$ 393,534
Proceeds from exercise of stock options				$ 44,000	$ 260,000
2019 Plan \| Employee
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized (in shares)	1,280,000
Expiration period	10 years
Number of shares available for grant (in shares)				333,853
2016 Plan \| Employee
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized (in shares)		299,628
Expiration period		10 years
Number of shares available for grant (in shares)				2,189
Shares granted (in shares)			0
2019 Plan and 2016 Plan \| Employee \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period				1 year
2019 Plan and 2016 Plan \| Employee \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period				10 years
Award vesting period				5 years
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized stock-based compensation expense				$ 500,000
Unrecognized stock-based compensation expense remaining weighted average vesting period				1 year 6 months
Restricted shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized stock-based compensation expense				$ 1,000,000
Unrecognized stock-based compensation expense remaining weighted average vesting period				1 year 6 months

Revenue Recognition

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

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


	For the Years Ended December 31,
($ in thousands)	2023		2022
Interest income
Interest income, not-in-scope
Interest and fees on loans	$	58,445	$	50,941
Interest on securities	338		208
Other interest income	5,751		1,180
Total interest income	$	64,534	$	52,329

Non-interest income
Non-interest income, in-scope
Service charges on deposit accounts	$	26	$	31
Strategic Program set up fees	223		195

Non-interest income, not in-scope
Strategic Program fees	15,362		21,438
Gain on sale of loans	1,684		13,550
SBA loan servicing fees	1,466		1,603
Change in fair value on investment in BFG	(600)		(478)
Other miscellaneous income	2,590		239
Strategic Program service charges	329		834
Total non-interest income	$	21,080	$	37,411

- 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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

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-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Premises and Equipment - Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating leases
Operating lease cost	$ 876	$ 1,044
Variable lease cost	35	16
Operating lease expense	911	1,060
Short-term lease rent expense	0	38
Net rent expense	$ 911	$ 1,098

Loans Held for Investment and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Loans and Leases Receivable Disclosure [Abstract]

Loans Held for Investment and Allowance for Credit Losses

Loans held for investment outstanding by general ledger classification as of December 31, 2023 and December 31, 2022, consisted of the following:


	December 31,		December 31,
	2023		2022
($ in thousands)
SBA(1)	$	239,922	$	145,172
Commercial leases	38,110		9,252
Commercial, non-real estate	2,457		2,232
Residential real estate	38,123		37,815
Strategic Program loans	19,408		24,259
Commercial real estate:
Owner occupied	20,798		8,733
Non-owner occupied	2,025		3,330
Consumer	11,372		5,808
Total loans held for investment	$	372,215	$	236,601
Deferred loan fees, net	(767)		(399)
Allowance for credit losses(2)	(12,888)		(11,985)
Net loans	$	358,560	$	224,217

(1) Included in the SBA loans held for investment above are $131.7 million and $49.5 million of loans guaranteed by the SBA as of December 31, 2023 and December 31, 2022, respectively.
(2) The Company adopted ASU 2016-13 as of January 1, 2023. The 2022 amounts presented are calculated under the prior accounting standard.

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 reserve account deposit balance does not fall below an agreed upon dollar or percentage threshold related to the total loans currently outstanding as held for sale by the Company for the specific Strategic Program. If necessary, the Company has the right to withdraw amounts from the reserve account to fulfill loan purchaser obligations created under the program agreements. Total deposits held in reserve by Strategic Programs at the Company at December 31, 2023 and December 31, 2022, was $29.8 million and $16.6 million, respectively.

Strategic Program loans retained and held-for-sale as of December 31, 2023 and December 31, 2022, are summarized as follows:


	December 31,		December 31,
	2023		2022
($ in thousands)
Retained Strategic Program loans	$	19,408	$	24,259
Strategic Program loans held-for-sale	47,514		23,589
Total Strategic Program loans	$	66,922	$	47,848

Allowance for Credit Losses

In determining the estimate for the allowance, the Bank segmented and aggregated the loan portfolio based on the Federal Deposit Insurance Corporation ("FDIC") Consolidated Reports of Condition and Income ("Call Report") codes. The following pool segments identified as of December 31, 2023 are based on the CECL methodology:


($ in thousands)
Construction and land development	$	28,330
Residential real estate	51,428
Residential real estate multifamily	647
Commercial real estate:
Owner occupied	186,550
Non-owner occupied	15,354
Commercial and industrial	21,399
Consumer	10,989
Commercial leases	38,110
Retained Strategic Program loans	19,408
Total loans	$	372,215

The portfolio classes identified as of December 31, 2022 are based on the incurred loss methodology and are segmented by general ledger classification as detailed below.


($ in thousands)
SBA	$	145,172
Commercial leases	9,252
Commercial, non-real estate	2,232
Residential real estate	37,815
Retained Strategic Program loans	24,259
Commercial real estate	12,063
Consumer	5,808
Total loans	$	236,601

Activity in the ACL by common characteristic loan pools based on the CECL methodology was as follows:


	Years Ended December 31, 2023
($ in thousands)	Beginning Balance		Impact of ASU 2016-13 adoption		Provision (Reversal) of Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	424	$	(67)	$	(41)	$	—	$	—	$	316
Residential real estate	876		(58)		273		(225)		90		956
Residential real estate multifamily	3		1		2		—		—		6
Commercial real estate:
Owner occupied	3,030		(532)		1,551		(714)		1		3,336
Non-owner occupied	208		(42)		(262)		—		378		282
Commercial and industrial	339		(85)		558		(472)		21		361
Consumer	65		14		198		(68)		2		211
Commercial leases	339		(105)		121		—		—		355
Retained Strategic Program loans	6,701		1,131		9,124		(10,946)		1,054		7,065
Total allowance for loan losses	$	11,985	$	257	$	11,525	$	(12,425)	$	1,546	$	12,888

Unfunded lending commitments	—		26		113		—		—		139
Total allowance for credit losses	$	11,985	$	283	$	11,638	$	(12,425)	$	1,546	$	13,027

Activity in the allowance for loan losses by general ledger classification based on the incurred loss methodology was as follows:


	Years Ended December 31, 2022
($ in thousands)	Beginning Balance		Provision of Loan Losses		Charge-Offs		Recoveries		Ending Balance
SBA	$	2,739	$	1,881	$	(392)	$	66	$	4,294
Commercial leases	56		289		—		—		345
Commercial, non-real estate	76		(22)		—		2		56
Residential real estate	352		145		—		—		497
Retained Strategic Program loans	6,549		11,215		(11,948)		885		6,701
Commercial real estate	21		6		—		—		27
Consumer	62		5		(66)		64		65
Total allowance for loan losses	$	9,855	$	13,519	$	(12,406)	$	1,017	$	11,985


	Allowance for Loan Losses						Portfolio Loan Balances
($ in thousands)	Individually Evaluated		Collectively Evaluated		Total		Individually Evaluated		Collectively Evaluated		Total
SBA	$	—	$	4,294	$	4,294	$	450	$	144,722	$	145,172
Commercial leases	—		345		345		—		9,252		9,252
Commercial, non-real estate	—		56		56		—		2,232		2,232
Residential real estate	—		497		497		—		37,815		37,815
Retained Strategic Program loans	—		6,701		6,701		—		24,259		24,259
Commercial real estate	—		27		27		—		12,063		12,063
Consumer	—		65		65		—		5,808		5,808
Total loans	$	—	$	11,985	$	11,985	$	450	$	236,151	$	236,601

The following table presents, under previously applicable GAAP, loans individually evaluated for impairment as of December 31, 2022:


	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
($ in thousands)
With no related allowance recorded
SBA	$	450	$	450	$	—	$	711	$	36
Commercial leases	—		—		—		—		—
Commercial, non-real estate	—		—		—		—		—
Residential real estate	—		—		—		—		—
Retained Strategic Program loans	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Consumer	—		—		—		—		—
Total	$	450	$	450	$	—	$	711	$	36

Nonaccrual and past due loans are summarized below as of December 31, 2023 and December 31, 2022:


December 31, 2023
	Loans Past Due and Still Accruing
($ in thousands)	30-89 Days Past Due		90 Days and Greater		Total		Non- Accrual Loans with no ACL(1)		Non-Accrual Loans with ACL		Current Loans		Total Loans

Construction and land development	$	1,648	$	297	$	1,945	$	—	$	—	$	26,385	$	28,330
Residential real estate	23		—		23		1,585		—		49,820		51,428
Residential real estate multifamily	—		—		—		—		—		647		647
Commercial real estate:									—
Owner occupied	—		—		—		21,643		640		164,267		186,550
Non-owner occupied	—		—		—		2,362		—		12,992		15,354
Commercial and industrial	—		—		—		282		—		21,117		21,399
Consumer	81		47		128		—		—		10,860		10,989
Commercial leases	—		—		—		—		—		38,110		38,110
Retained Strategic Program loans	1,953		96		2,049		—		—		17,359		19,408
Total	$	3,705	$	440	$	4,145	$	25,872	$	640	$	341,558	$	372,215

(1) Included in the nonaccrual loan balances are $15.0 million of SBA 7(a) loan balances guaranteed by the SBA.


December 31, 2022
($ in thousands)	Current		30-59 Days Due Due		60-89 Days Due Due		90+ Days Past Due & Still Accruing		Total Past Due		Non- Accrual		Total
SBA	$	143,733	$	1,439	$	—	$	—	$	1,439	$	—	$	145,172
Commercial leases	9,252		—		—		—		—		—		9,252
Commercial, non-real estate	2,232		—		—		—		—		—		2,232
Residential real estate	37,387		428		—		—		428		—		37,815
Retained Strategic Program loans	22,080		1,184		802		193		2,179		—		24,259
Commercial real estate	12,063		—		—		—		—		—		12,063
Consumer	5,776		32		—		—		32		—		5,808
Total	$	232,523	$	3,083	$	802	$	193	$	4,078	$	—	$	236,601

There was no interest income for the years ended December 31, 2023 and 2022, recognized on nonaccrual loans. The amount of accrued interest for the years ended December 31, 2023 and 2022, that was reversed against interest income on nonaccrual loans was approximately $0.7 million and zero, respectively.

The allowance for credit losses represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Bank measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by Call Report code and then risk grade grouping.

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 – A Pass asset is higher quality and does not fit any of the other categories described below. The likelihood of loss is believed to be remote.

Watch – A Watch asset may be a larger loan or one that places a heavier reliance on collateral due to the relative financial strength of the borrower. The assets may be maintenance intensive requiring closer monitoring. The obligor is believed to have an adequate primary source of repayment.

Special Mention – 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 believes that it is currently protected against a default and loss is considered unlikely and not imminent.

Substandard – A Substandard asset is believed to be inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have identified weaknesses and are characterized by the possibility that the Company may sustain some loss if deficiencies are not corrected.

Not Rated – For certain Strategic Program and consumer loans, the Company does not evaluate and risk rate the loans in the same manner as other loans in the Company’s portfolio. The Not Rated loans are typically homogenous, smaller dollar balances approved using abridged underwriting methods that allow the Company to streamline the loan approval process and increase efficiency. Credit quality for Strategic Program loans is highly correlated with delinquency levels.


December 31, 2023	2023		2022		2021		Prior		Revolving Loans		Total
($ in thousands)

Construction and land development
Pass	$	12,919	$	10,345	$	4,354	$	97	$	—	$	27,715
Watch	—		—		—		—		—		—
Special Mention	—		—		—		—		—		—
Substandard	—		615		—		—		—		615
Total	12,919		10,960		4,354		97		—		28,330
Current period gross writeoff	—		—		—		—		—		—

Residential real estate
Pass	2,209		874		1,480		2,947		2,249		9,759
Watch	23,614		12,399		1,661		2,035		—		39,709
Special Mention	—		—		208		11		—		219
Substandard	—		1,585		—		156		—		1,741
Total	25,823		14,858		3,349		5,149		2,249		51,428
Current period gross writeoff	—		(121)		—		(104)		—		(225)

Residential real estate multifamily
Pass	278		263		80		—		—		621
Watch	—		—		—		26		—		26
Special Mention	—		—		—		—		—		—
Substandard	—		—		—		—		—		—


Total	278	263	80	26	—	647
Current period gross writeoff	—	—	—	—	—	—

Commercial real estate owner occupied
Pass	12,566	1,234	854	12,207	—	26,861
Watch	62,360	53,832	11,871	7,654	—	135,717
Special Mention	—	192	—	1,498	—	1,690
Substandard	16,466	3,712	1,066	1,038	—	22,282
Total	91,392	58,970	13,791	22,397	—	186,550
Current period gross writeoff	(318)	(21)	(97)	(278)	—	(714)

Commercial real estate non-owner occupied
Pass	2,805	1,294	—	419	—	4,518
Watch	4,382	2,635	1,223	234	—	8,474
Special Mention	—	—	—	—	—	—
Substandard	—	2,362	—	—	—	2,362
Total	7,187	6,291	1,223	653	—	15,354
Current period gross writeoff	—	—	—	—	—	—

Commercial and industrial
Pass	2,090	601	744	821	31	4,287
Watch	10,157	4,600	764	930	—	16,451
Special Mention	—	—	—	8	—	8
Substandard	260	—	—	393	—	653
Total	12,507	5,201	1,508	2,152	31	21,399
Current period gross writeoff	(87)	(114)	(122)	(149)	—	(472)

Consumer
Pass	7,792	1,975	637	558	2	10,964
Watch	24	—	—	1	—	25
Special Mention	—	—	—	—	—	—
Substandard	—	—	—	—	—	—
Total	7,816	1,975	637	559	2	10,989
Current period gross writeoff	(3)	(5)	(53)	(7)	—	(68)

Commercial leases
Pass	31,313	6,559	—	238	—	38,110
Watch	—	—	—	—	—	—
Special Mention	—	—	—	—	—	—
Substandard	—	—	—	—	—	—
Total	31,313	6,559	—	238	—	38,110
Current-period gross writeoffs	—	—	—	—	—	—

Retained Strategic Program loans
Pass	—	—	—	—	—	—
Watch	—	—	—	—	—	—


Special Mention	—	—	—	—	—	—
Substandard	—	—	—	—	—	—
Not Rated	14,506	3,609	1,292	1	—	19,408
Total	14,506	3,609	1,292	1	—	19,408
Current-period gross writeoffs	(3,773)	(6,154)	(1,017)	(2)	—	(10,946)

Total portfolio loans receivable, gross	203,741	108,686	26,234	31,272	2,282	372,215
Total current-period gross writeoffs	(4,181)	(6,415)	(1,289)	(540)	—	(12,425)

Commercial


December 31, 2022
($ in thousands)	Pass Grade 1-4		Special Mention Grade 5		Classified/ Doubtful/Loss Grade 6-8		Total
SBA	$	144,149	$	573	$	450	$	145,172
Commercial leases	9,252		—		—		9,252
Commercial, non-real estate	2,232		—		—		2,232
Residential real estate	37,815		—		—		37,815
Commercial real estate	12,063		—		—		12,063
Consumer	5,808		—		—		5,808
Not Risk Graded
Retained Strategic Program loans							24,259
Total	$	211,319	$	573	$	450	$	236,601

Effective January 1, 2023 loan modifications to borrowers experiencing financial difficulty are required to be disclosed by type of modification and by type of loan. Prior accounting guidance classified loans which were modified as troubled debt restructurings ("TDRs") only if the modification reflected a concession from the lender in the form of a below market interest rate or other concession in addition to borrower financial difficulty. Under the new guidance (ASU 2022-02), loans with modifications made after January 1, 2023, will be reported under the new loan modification guidance whether a concession is made or not. As of January 1, 2023, the Company has ceased to recognize or measure new TDRs but those existing at December 31, 2022 will remain until settled.

In the year ended December 31, 2023 there was one material loan modification reportable under the new guidance. This loan was current as of December 31, 2023.

As of December 31, 2023

($ in thousands)

Principal deferment (Months)

Outstanding Balance

Residential real estate

12 months

156

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


($ in thousands)	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
December 31, 2022
SBA	1	$	377	$	377
Total at December 31, 2022	1	$	377	$	377

The amount of SBA loans as of December 31, 2022 includes $0.3 million of SBA 7(a) loan balances that are guaranteed by the SBA.

At December 31, 2022, there were no commitments to lend additional funds to debtors whose loan terms have been modified in a TDR. There was one principal charge-off recorded related to TDRs during the year ended December 31, 2022 for a de minimis amount.

During the year ended December 31, 2022, there were no loan modifications to TDRs. Separately, one restructured loan incurred a default within 12 months of the restructure date during the year ended December 31, 2022. This same loan was paid in full with interest on June 2, 2022.

Collateral-Dependent Financial Loans

A collateral-dependent financial loan relies substantially on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers (1) character, overall financial condition and resources, and payment record of the borrower; (2) the prospects for support from any financially responsible guarantors; and (3) the nature and degree of protection provided by the cash flow and value of any underlying collateral. The loan may become collateral-dependent when foreclosure is probable or the borrower is experiencing financial difficulty and its sources of repayment become inadequate over time. At such time, the Company develops an expectation that repayment will be provided substantially through the operation or sale of the collateral.

The following tables present the allowance for credit losses and the amortized cost basis of collateral-dependent loans by class of loans as of the dates indicated:


($ in thousands)			Collateral Type
As of December 31, 2023	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	615	$	—	$	615
Residential real estate	—		1,585		—		1,585
Commercial real estate:
Owner occupied	45		21,643		—		21,643
Non-owner occupied	—		2,362		—		2,362
Commercial and industrial	—		—		282		282
Total	$	45	$	26,205	$	282	$	26,487

The amount of collateral-dependent SBA loans as of December 31, 2023 include $15.0 million of SBA 7(a) loan balances that are guaranteed by the SBA.


($ in thousands)	Collateral Type
As of December 31, 2022	Real Estate		Personal Property		Total
Commercial real estate	$	1,426	$	—	$	1,426

The amount of collateral-dependent SBA loans as of December 31, 2022 include $1.1 million of SBA 7(a) loan balances that are guaranteed by the SBA.

Premises and Equipment - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Operating cash flows from operating leases	$ 850	$ 1,928
Right-of-use assets obtained in exchange for operating lease liabilities	$ 0	$ 7,380

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components Income Tax Expense

The components of income tax expense consist of the following:


	For the Years Ended December 31,
($ in thousands)	2023		2022
Current tax expense
Federal	$	3,446	$	8,315
State	992		1,945
Deferred tax expense
Federal	1,614		553
State	301		103
Income tax expense	$	6,353	$	10,916

Components of Deferred Income Tax Assets and Liabilities

The components of net deferred income tax assets and liabilities on the balance sheet at December 31, 2023 and 2022, are as follows:


	December 31,
($ in thousands)	2023		2022
Deferred tax assets
Operating lease liabilities	$	1,568	$	1,749
Allowance for loan losses	693		1,639
Accrued bonuses	—		61
Nonqualified stock options	151		124
Restricted stock	242		114
Other	226		290
Total deferred tax assets	2,880		3,977

Deferred tax liabilities
ROU asset	(1,069)		(1,256)
Intangibles	—		(3)
Net book value of fixed assets	(2,216)		(1,230)
Other	(343)		(321)
Total deferred tax liabilities	(3,628)		(2,810)
Deferred taxes, net	$	(748)	$	1,167

Reconciliation of Income Tax Expense

The income tax expense recorded differs from the expected income tax expense and the reconciliation of these differences is as follows at December 31, 2023 and 2022:


	For the Years Ended December 31,
($ in thousands)	2023		2022
Federal income tax expense at statutory rates	$	5,001	$	7,567
Effect of permanent differences	323		811
State income tax expense, net	991		1,560
Other	38		978
Income tax expense	$	6,353	$	10,916

Fair Value of Financial Instruments - Narrative (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment in Business Funding Group (BFG), at fair value	$ 4,200	$ 4,800	$ 5,900
Measurement Input, Discount for Lack of Marketability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment, measurement input	0.20	0.20
Discount rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment, measurement input	0.0450	0.0450

Investments - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 Months, Fair Value	$ 1,614	$ 5,126
Less Than 12 Months, Unrealized Losses	(20)	(286)
12 Months or More, Fair Value	10,274	6,671
12 Months or More, Unrealized Losses	(1,564)	(1,283)
Total, Fair Value	11,888	11,797
Total, Unrealized Losses	(1,583)	(1,569)
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 Months, Fair Value	680	2,374
Less Than 12 Months, Unrealized Losses	(16)	(190)
12 Months or More, Fair Value	5,462	3,962
12 Months or More, Unrealized Losses	(802)	(635)
Total, Fair Value	6,142	6,336
Total, Unrealized Losses	(817)	(825)
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Less than 12 Months, Fair Value	934	2,752
Less Than 12 Months, Unrealized Losses	(4)	(96)
12 Months or More, Fair Value	4,812	2,709
12 Months or More, Unrealized Losses	(762)	(648)
Total, Fair Value	5,746	5,461
Total, Unrealized Losses	$ (766)	$ (744)

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5A
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 5A
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Paragraph 5B
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Paragraph 5B
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-Publisher FASB
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Section 50
-Paragraph 5B
-Subparagraph (d)
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

+ Details

Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Accrued interest receivable	$ 3,573	$ 1,818

Investments - Narrative (Details)	12 Months Ended
Investments - Narrative (Details)	Dec. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($) security	Jan. 01, 2023 USD ($)
Schedule of Held-to-Maturity Securities [Line Items]
Investment securities held-to-maturity, allowance for credit losses	$ 0	$ 0	$ 0
Number of securities in unrealized loss position \| security	19	17
Held-to-maturity securities pledged as collateral	$ 15,388,000	$ 14,292,000
Sales or transfers of investment securities	0	0
Realized gains (losses) on sale or transfer of investment securities	0	$ 0
Asset Pledged as Collateral \| Federal Reserve Bank Credit Lines
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-maturity securities pledged as collateral	13,800,000
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Investment securities held-to-maturity, allowance for credit losses	$ 0
Number of securities in unrealized loss position \| security	9	8
Held-to-maturity securities pledged as collateral		$ 6,205,000
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Investment securities held-to-maturity, allowance for credit losses	$ 0
Number of securities in unrealized loss position \| security	10	9
Held-to-maturity securities pledged as collateral		$ 8,087,000

Earnings per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings per Share

The following table is a reconciliation of the components used to derive basic and diluted EPS for the years ended December 31, 2023 and 2022 ($ in thousands, except share and per share amounts):


	For the Years Ended December 31,
($ in thousands)	2023		2022
Numerator:
Net income	$	17,460	$	25,115
Amount allocated to participating common shareholders(1)	(288)		(193)
Net income allocate to common shareholders	$	17,172	$	24,922
Denominator:
Weighted average shares outstanding, basic	12,488,564		12,729,898
Weighted average effect of dilutive securities:
Stock options	343,642		508,056
Warrants	77,442		119,068
Weighted average shares outstanding, diluted	12,909,648		13,357,022
Earnings per share, basic	$	1.38	$	1.96
Earnings per share, diluted	$	1.33	$	1.87

(1)Represents earnings attributable to holders of unvested restricted stock issued to the Company’s directors and employees.

There were 220,100 and 373,569 anti-dilutive options for the years ended December 31, 2023 and 2022, respectively, that were excluded from the computation in the table above. There were 192,558 shares and 150,932 anti-dilutive warrants for the years ended December 31, 2023 and 2022, respectively, also excluded from the table above.

Capital Requirements - Actual Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Amount
Actual	$ 116,108	$ 91,674
Well-Capitalized Requirement	$ 50,441	$ 32,898
Ratio
Actual	0.207	0.251
Well-Capitalized Requirement	0.090	0.090

Loans Held for Investment and Allowance for Credit Losses - Allowance for Loan Losses on Impaired Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Allowance for Loan Losses
Total	$ 12,888	$ 11,985	$ 9,855
Portfolio Loan Balances
Total	372,215	236,601
Financing Receivable, Incurred Loss Methodology
Allowance for Loan Losses
Individually Evaluated		0
Collectively Evaluated		11,985
Total	12,888	11,985
Portfolio Loan Balances
Individually Evaluated		450
Collectively Evaluated		236,151
Total		236,601
SBA
Allowance for Loan Losses
Total			2,739
Portfolio Loan Balances
Total		145,172
SBA \| Financing Receivable, Incurred Loss Methodology
Allowance for Loan Losses
Individually Evaluated		0
Collectively Evaluated		4,294
Total		4,294
Portfolio Loan Balances
Individually Evaluated		450
Collectively Evaluated		144,722
Total		145,172
Commercial leases
Allowance for Loan Losses
Total	355	339	56
Portfolio Loan Balances
Total	38,110	9,252
Commercial leases \| Financing Receivable, Incurred Loss Methodology
Allowance for Loan Losses
Individually Evaluated		0
Collectively Evaluated		345
Total		345
Portfolio Loan Balances
Individually Evaluated		0
Collectively Evaluated		9,252
Total		9,252
Commercial, non-real estate
Allowance for Loan Losses
Total			76
Portfolio Loan Balances
Total		2,232
Commercial, non-real estate \| Financing Receivable, Incurred Loss Methodology
Allowance for Loan Losses
Individually Evaluated		0
Collectively Evaluated		56
Total		56
Portfolio Loan Balances
Individually Evaluated		0
Collectively Evaluated		2,232
Total		2,232
Residential real estate
Allowance for Loan Losses
Total	956	876	352
Portfolio Loan Balances
Total	51,428	37,815
Residential real estate \| Financing Receivable, Incurred Loss Methodology
Allowance for Loan Losses
Individually Evaluated		0
Collectively Evaluated		497
Total		497
Portfolio Loan Balances
Individually Evaluated		0
Collectively Evaluated		37,815
Total		37,815
Strategic Program loans
Allowance for Loan Losses
Total	7,065	6,701	6,549
Portfolio Loan Balances
Total	19,408	24,259
Strategic Program loans \| Financing Receivable, Incurred Loss Methodology
Allowance for Loan Losses
Individually Evaluated		0
Collectively Evaluated		6,701
Total		6,701
Portfolio Loan Balances
Individually Evaluated		0
Collectively Evaluated		24,259
Total		24,259
Commercial real estate
Allowance for Loan Losses
Total			21
Portfolio Loan Balances
Total		12,063
Commercial real estate \| Financing Receivable, Incurred Loss Methodology
Allowance for Loan Losses
Individually Evaluated		0
Collectively Evaluated		27
Total		27
Portfolio Loan Balances
Individually Evaluated		0
Collectively Evaluated		12,063
Total		12,063
Consumer
Allowance for Loan Losses
Total	211	65	$ 62
Portfolio Loan Balances
Total	$ 10,989	5,808
Consumer \| Financing Receivable, Incurred Loss Methodology
Allowance for Loan Losses
Individually Evaluated		0
Collectively Evaluated		65
Total		65
Portfolio Loan Balances
Individually Evaluated		0
Collectively Evaluated		5,808
Total		$ 5,808

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net Income	$ 17,460	$ 25,115
Adjustments to reconcile net income to net cash from operating activities
Depreciation and amortization	3,811	2,107
Provision for credit losses	11,638	13,519
Noncash operating lease cost	748	2,339
Net amortization in securities discounts and premiums	1	28
Capitalized servicing assets	(150)	(4,087)
Capitalized Loan Trailing Fee Asset	0	(2,347)
Gain on sale of loans, net	(1,684)	(13,550)
Originations of Strategic Program loans held-for-sale	(4,077,855)	(6,974,133)
Proceeds on Strategic Program loans held-for-sale	4,053,929	7,011,292
Change in fair value of BFG	600	478
(Recovery) impairment of SBA servicing asset	(376)	1,728
Stock-based compensation expense	2,046	778
Deferred income tax benefit	1,915	656
Net changes in:
Accrued interest receivable	(1,755)	(270)
Accrued interest payable	565	6
Other assets	(6,448)	(299)
Operating lease liabilities	(724)	(360)
Other liabilities	8,544	(1,847)
Net cash provided by operating activities	12,265	61,153
Cash flows from investing activities:
Net increase in loans receivable	(114,902)	(17,330)
Purchase of lease pools	(29,606)	(8,754)
Investment in equity investment	(18)	(191)
Distributions from BFG	0	622
Purchase of bank premises and equipment, net	(7,458)	(7,213)
Proceeds from maturities and paydowns of securities held-to-maturity	1,843	1,954
Purchases of securities held to maturity	(2,939)	(4,851)
Purchase of FHLB stock	210	(71)
Net cash used in investing activities	(152,870)	(35,834)
Cash flows from financing activities:
Net increase (decrease) in deposits	161,835	(8,894)
Common stock repurchased	(4,741)	(1,136)
Proceeds from exercise of stock options	44	260
Repayment of PPP Liquidity Facility	(125)	(736)
Net cash provided by (used in) financing activities	157,013	(10,506)
Net change in cash and cash equivalents	16,408	14,813
Cash and cash equivalents, beginning of the period	100,567	85,754
Cash and cash equivalents, end of the period	116,975	100,567
Cash paid during the period
Income taxes	6,626	9,360
Interest	9,410	1,428
Supplemental disclosures of noncash operating activities:
Right-of-use assets obtained in exchange for operating lease liabilities (ASC 842 adoption effective January 1, 2022)	0	7,380
Impact of current expected credit loss model (ASU 2016-13 adoption effective January 1, 2023)	$ 283	$ 0

Earnings per Share - Reconciliation of Components Used to Derive Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net Income	$ 17,460	$ 25,115
Amount allocated to participating common shareholders	(288)	(193)
Net income allocate to common shareholders, basic	17,172	24,922
Net income allocate to common shareholders, diluted	$ 17,172	$ 24,922
Denominator:
Weighted average shares outstanding, basic (in shares)	12,488,564	12,729,898
Weighted average effect of dilutive securities:
Stock options (in shares)	343,642	508,056
Warrants (in shares)	77,442	119,068
Weighted average shares outstanding, diluted (in shares)	12,909,648	13,357,022
Earnings per share, basic (in dollars per share)	$ 1.38	$ 1.96
Earnings per share, diluted (in dollars per share)	$ 1.33	$ 1.87

Summary of Significant Accounting Policies - Out-of-Period Adjustment (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Out-of-Period Adjustment [Abstract]
Interest and fees on loans			$ 58,445	$ 50,941
After-tax income			17,460	25,115
Gain on sale of loans	$ 2,100		1,684	13,550
Gain on sale of loans, net	1,500		$ 1,684	13,550
Other Assets
Out-of-Period Adjustment [Abstract]
New loan trailing fee asset	2,300			2,300
Revision of Prior Period, Adjustment
Out-of-Period Adjustment [Abstract]
Interest and fees on loans		$ (800)
Interest and fees, net of tax, on loans and loans receivable, net		$ (600)
After-tax income				$ (900)
Gain on sale of loans	1,200				$ 900
Gain on sale of loans, net	$ 900				$ 600

- Definition

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

+ References

+ Details

SBA Servicing Asset - Summary of SBA Servicing Asset Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning balance	$ 5,210	$ 3,938
Additions to servicing asset	150	4,087
Recovery (impairment) of SBA servicing asset	376	(1,728)
Amortization of servicing asset	(1,505)	(1,087)
Ending balance	$ 4,231	$ 5,210

Loans Held for Investment and Allowance for Credit Losses - Narrative (Details)	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) loan
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Amount of loans guaranteed by SBA	$ 372,215,000	$ 236,601,000
Commitments to lend additional funds		$ 0
Number of principal charge-offs related to TDRs \| loan		1
Number of new loans modification \| loan		0
Number of restructured loans \| loan		1
Interest income on nonaccrual loans	0	$ 0
Accrued interest that was reversed against interest income	700,000	0
Strategic Program loans
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Deposits held in reserve by strategic programs	29,800,000	16,600,000
Amount of loans guaranteed by SBA	$ 19,408,000	24,259,000
SBA
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Amount of loans guaranteed by SBA		145,172,000
SBA \| SBA
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Amount of loans guaranteed by SBA		$ 300,000

Deposits - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
Time deposits equal or greater than FDIC insurance limits	$ 2.0	$ 1.7

Investments - FHLB Stock (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Investments, Debt and Equity Securities [Abstract]
FHLB stock to be held as percentage of membership asset value	0.0006
FHLB stock to be held as percentage of FHLB advances outstanding	4.50%
Investment in Federal Home Loan Bank (FHLB) stock, at cost	$ 238	$ 449

Premises and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and equipment at December 31, 2023 and 2022, consist of the following:


	December 31,
	2023		2022
($ in thousands)
Leasehold improvements	$	3,700	$	3,720
Commercial operating lease equipment	9,300		2,803
Furniture, fixtures, and equipment	3,298		3,698
Construction in progress	2,153		1,514
Total premises and equipment	$	18,451	$	11,735
Less accumulated depreciation	(3,821)		(2,257)
Premises and equipment, net	$	14,630	$	9,478

Commercial Operating Leases

Net book value of the operating leases as of December 31, 2023 and December 31, 2022 was $8.2 million and $2.7 million. Rental income from operating leases for the years ended December 31, 2023 and 2022 was $1.3 million and $0.2 million, respectively. Depreciation expense for the related premises and equipment was $1.0 million and $0.2 million for the years ended December 31, 2023 and 2022, respectively.

Lease Liabilities

The Company leases its facilities under noncancelable operating leases. Rent expense for the years ended December 31, 2023 and 2022 was $0.9 million and $1.1 million, respectively. Future minimum annual undiscounted rental payments for these operating leases are as follows ($ in thousands):


Year Ended December 31, 2024	$	1,104
Year Ended December 31, 2025	1,086
Year Ended December 31, 2026	1,118
Year Ended December 31, 2027	1,152
Year Ended December 31, 2028	1,186
Thereafter	1,017
Total	6,663
Less present value discount	(367)
Operating lease liabilities	$	6,296

The Company entered into one lease during the year ended December 31, 2022 to provide additional space while the Murray office construction was completed. ASC 842 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.


	Years Ended December 31,
	2023		2022

Weighted-average remaining lease term – operating leases (in years)	5.8		6.7
Weighted-average discount rate – operating leases	1.9	%	1.9	%

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


	For the Years Ended December 31,
	2023		2022
($ in thousands)
Operating cash flows from operating leases	$	850	$	1,928
Right-of-use assets obtained in exchange for operating lease liabilities	—		7,380

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


	For the Years Ended December 31,
	2023		2022
(in thousands)
Operating leases
Operating lease cost	$	876	$	1,044
Variable lease cost	35		16
Operating lease expense	911		1,060
Short-term lease rent expense	—		38
Net rent expense	$	911	$	1,098

Deposits (Tables)

12 Months Ended

Dec. 31, 2023

Deposits [Abstract]

Major Classes of Deposits

Major classes of deposits are as follows:


	December 31,
	2023		2022
($ in thousands)
Demand	$	145,544	$	129,563
Savings	8,633		8,289
Money markets	11,661		10,882
Time certificates of deposit	238,995		94,264
Total deposits	$	404,833	$	242,998

Maturities of Time Deposits

At December 31, 2023, the scheduled maturities of time deposits are as follows ($ in thousands):


Year Ended December 31, 2024	$	76,322
Year Ended December 31, 2025	11,434
Year Ended December 31, 2026	81,060
Year Ended December 31, 2027	3,049
Year Ended December 31, 2028	66,591
Thereafter	539
Total	$	238,995

- Definition

Tabular disclosure of type of deposit liability.

+ References

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

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)
-Publisher SEC

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)
-Publisher SEC

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)
-Publisher SEC

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)
-Publisher SEC

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)
-Publisher SEC

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)
-Publisher SEC

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)
-Publisher SEC

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)
-Publisher SEC

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)
-Publisher SEC

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)
-Publisher SEC

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)
-Publisher SEC

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)
-Publisher SEC

+ Details

Investments (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

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

The amortized cost, allowance for credit losses, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at December 31, 2023 and December 31, 2022, are summarized as follows:


	December 31, 2023
($ in thousands)	Amortized Cost		Allowance for Credit Losses		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	6,959	$	—	$	—	$	(817)	$	6,142
Collateralized mortgage obligations	8,429		—		4		(766)		7,667
Total securities held-to-maturity	$	15,388	$	—	$	4	$	(1,583)	$	13,809


	December 31, 2022
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	8,087	$	5	$	(825)	$	7,267
Collateralized mortgage obligations	6,205		—		(744)		5,461
Total securities held-to-maturity	$	14,292	$	5	$	(1,569)	$	12,728

Fair Value and Unrealized Losses of Securities in Unrealized Loss Position


	December 31, 2023
	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	$	680	$	(16)	$	5,462	$	(802)	$	6,142	$	(817)
Collateralized mortgage obligations	934		(4)		4,812		(762)		5,746		(766)
Total securities held-to-maturity	$	1,614	$	(20)	$	10,274	$	(1,564)	$	11,888	$	(1,583)


	December 31, 2022
	Less than 12 months				12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	2,374	$	(190)	$	3,962	$	(635)	$	6,336	$	(825)
Collateralized mortgage obligations	2,752		(96)		2,709		(648)		5,461		(744)
Total securities held-to-maturity	$	5,126	$	(286)	$	6,671	$	(1,283)	$	11,797	$	(1,569)

Amortized Cost and Estimated Market Value of Debt Securities


	December 31, 2023				December 31, 2022
($ 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	2,745		2,577		3,388		3,202
Due after ten years	12,643		11,233		10,904		9,526
Total Securities held-to-maturity	$	15,388	$	13,809	$	14,292	$	12,728

- Definition

Tabular disclosure of information about investment in debt security measured at amortized cost (held-to-maturity).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5A
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5A
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5A

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 16: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

Reference 18: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-5B

+ Details

Earnings per Share - Narrative (Details) - shares	12 Months Ended
Earnings per Share - Narrative (Details) - shares	Dec. 31, 2023	Dec. 31, 2022
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	220,100	373,569
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities	192,558	150,932

Summary of Significant Accounting Policies - Nonaccrual Loans (Details)	12 Months Ended
	Dec. 31, 2023
Nonaccrual Loans [Abstract]
Past due period after which loans are placed on nonaccrual status	90 days

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Components of Premises and Equipment

Premises and equipment at December 31, 2023 and 2022, consist of the following:


	December 31,
	2023		2022
($ in thousands)
Leasehold improvements	$	3,700	$	3,720
Commercial operating lease equipment	9,300		2,803
Furniture, fixtures, and equipment	3,298		3,698
Construction in progress	2,153		1,514
Total premises and equipment	$	18,451	$	11,735
Less accumulated depreciation	(3,821)		(2,257)
Premises and equipment, net	$	14,630	$	9,478

Future Minimum Annual Undiscounted Rental Payments for Operating Leases

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


Year Ended December 31, 2024	$	1,104
Year Ended December 31, 2025	1,086
Year Ended December 31, 2026	1,118
Year Ended December 31, 2027	1,152
Year Ended December 31, 2028	1,186
Thereafter	1,017
Total	6,663
Less present value discount	(367)
Operating lease liabilities	$	6,296

Information Regarding Lease Assets and Liabilities

The tables below present information regarding the Company’s lease assets and liabilities.


	Years Ended December 31,
	2023		2022

Weighted-average remaining lease term – operating leases (in years)	5.8		6.7
Weighted-average discount rate – operating leases	1.9	%	1.9	%

Supplemental Cash Flow Information and Components of Lease Expense

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


	For the Years Ended December 31,
	2023		2022
($ in thousands)
Operating cash flows from operating leases	$	850	$	1,928
Right-of-use assets obtained in exchange for operating lease liabilities	—		7,380

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


	For the Years Ended December 31,
	2023		2022
(in thousands)
Operating leases
Operating lease cost	$	876	$	1,044
Variable lease cost	35		16
Operating lease expense	911		1,060
Short-term lease rent expense	—		38
Net rent expense	$	911	$	1,098

Stock-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock option plans

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

The 2019 Stock Option Plan (“2019 Plan”) was adopted on June 20, 2019 following approval by the Company’s Board of Directors and shareholders. The 2019 Plan provides for the issuance of non-statutory stock options and restricted stock to employees, directors and consultants. The 2019 Plan also provides for the issuance of incentive stock options only to employees. The 2019 Plan, as amended, authorizes the issuance of 1,280,000 common shares. The 2019 Plan will terminate as to future awards 10 years from the later of the effective date or the earlier of the most recent Board or stockholder approval of an increase in the number of shares reserved for issuance under the 2019 Plan. At December 31, 2023, 333,853 shares are available for future issuance.

The 2016 Stock Option Plan (“2016 Plan”) was adopted on April 20, 2017 following approval by the Company’s Board of Directors and shareholders. The 2016 Plan provides for the issuance of non-statutory stock options and restricted stock to employees, directors and consultants. The 2016 Plan also provides for the issuance of incentive stock options only to employees. The 2016 Plan authorizes the issuance of 299,628 common shares. The 2016 Plan will terminate as to future awards 10 years from the later of the effective date or the earlier of the most recent Board or stockholder approval of an increase in the number of shares reserved for issuance under the 2016 Plan. At December 31, 2023, 2,189 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 in the case of options or based on the fair market 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.

Stock options

The following summarizes stock option activity for the years ended December 31, 2023 and 2022:


	Stock Options	Weighted Average Exercise Price		Weighted Average 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	(56,280)	4.62		—	393,534
Options forfeited	(13,998)	4.40		0	124,874
Outstanding at December 31, 2022	881,625	$	5.27	7.5	$	3,871,667
Options granted	126,406	8.64		9.9	—
Options exercised	(17,640)	2.45		—	120,229
Options forfeited	(8,903)	9.52		—	12,089
Outstanding at December 31, 2023	981,488	$	5.72	6.9	$	8,429,619
Options vested and exercisable at December 31, 2023	716,175	$	4.75	6.4	$	6,847,964

The weighted average grant-date fair value of options per share granted during the years ended December 31, 2023 and 2022 was $4.11 and $6.26, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2023 and 2022 was $0.1 million and $0.4 million, respectively. During the years ended December 31, 2023, and 2022 the Company received de minimis and $0.3 million, respectively, in proceeds from the exercise of stock options and recognized a de minimis tax benefit from the exercise of stock options for both years. Upon exercise of the stock options, the Company will issue new authorized shares.

Restricted Stock

The Company from time-to-time grants shares of restricted stock to key employees or directors. These awards typically hold service requirements over various vesting periods. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards, ratably over the vesting period of the stock grants. All restricted stock agreements are conditioned upon continued employment. Termination of employment prior to a vesting date, as described below, would terminate any interest in non-vested shares.

Non-vested restricted stock for the years ended December 31, 2023, and 2022 is summarized in the following table:


	Number of Shares	Weighted Average Grant Price
Unvested as of December 31, 2021	—	$	—
Granted	123,055	12.28
Unvested as of December 31, 2022	123,055	$	12.28
Granted	168,821	8.63
Vested	(92,668)	10.43
Unvested as of December 31, 2023	199,208	$	10.05

Stock-based compensation expense

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


	For the Years Ended December 31,
($ in thousands)	2023		2022
Pre-tax
Stock options	$	493	$	320
Restricted shares	1,553		458
Total	$	2,046	$	778
After-tax
Stock options	$	477	$	312
Restricted shares	1,166		344
Total	$	1,644	$	656

As of December 31, 2023, the Company had unrecognized stock-based compensation expense related to stock options and restricted stock of approximately $0.5 million and $1.0 million, respectively, which is expected to be recognized over the remaining weighted average vesting period of 1.5 years and 1.5 years, respectively.

Loans Held for Investment and Allowance for Credit Losses - Allowance for Credit Loss by Loan Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	$ 372,215	$ 236,601
Construction and land development
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	28,330
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	51,428	37,815
Residential real estate multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	647
Owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	186,550
Non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	15,354
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	21,399
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	10,989	5,808
Commercial leases
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	38,110	9,252
Strategic Program loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Strategic Program loans	$ 19,408	$ 24,259

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Interest income
Interest and fees on loans	$ 58,445	$ 50,941
Interest on securities	338	208
Other interest income	5,751	1,180
Total interest income	64,534	52,329
Interest expense
Interest on deposits	9,974	1,432
Interest on PPP Liquidity Facility	1	2
Total interest expense	9,975	1,434
Net interest income	54,559	50,895
Provision for credit losses	11,638	13,519
Net interest income after provision for loan losses	42,921	37,376
Non-interest income
Strategic Program fees	15,914	22,467
Gain on sale of loans, net	1,684	13,550
SBA loan servicing fees	1,466	1,603
Change in fair value on investment in BFG	(600)	(478)
Other miscellaneous income	2,616	269
Total non-interest income	21,080	37,411
Non-interest expense
Salaries and employee benefits	25,751	24,489
Professional services	4,961	5,454
Occupancy and equipment expenses	3,312	2,204
(Recovery) impairment of SBA servicing asset	(376)	1,728
Other operating expenses	6,540	4,881
Total non-interest expense	40,188	38,756
Income before provision for income tax	23,813	36,031
Provision for income taxes	6,353	10,916
Net income	$ 17,460	$ 25,115
Earnings per share, basic (in dollars per share)	$ 1.38	$ 1.96
Earnings per share, diluted (in dollars per share)	$ 1.33	$ 1.87
Weighted average shares outstanding, basic (in shares)	12,488,564	12,729,898
Weighted average number of shares outstanding, diluted (in shares)	12,909,648	13,357,022

Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Interest income, not-in-scope
Interest and fees on loans	$ 58,445	$ 50,941
Interest on securities	338	208
Other interest income	5,751	1,180
Total interest income	64,534	52,329
Non-interest income
Total non-interest income	21,080	37,411
Service charges on deposit accounts
Non-interest income
Non-interest income, in-scope	26	31
Strategic Program set up fees
Non-interest income
Non-interest income, in-scope	223	195
Strategic Program fees
Non-interest income
Non-interest income, not in-scope	15,362	21,438
Gain on sale of loans
Non-interest income
Non-interest income, not in-scope	1,684	13,550
SBA loan servicing fees
Non-interest income
Non-interest income, not in-scope	1,466	1,603
Change in fair value on investment in BFG
Non-interest income
Non-interest income, not in-scope	(600)	(478)
Other miscellaneous income
Non-interest income
Non-interest income, not in-scope	2,590	239
Strategic Program service charges
Non-interest income
Non-interest income, not in-scope	$ 329	$ 834

Loans Held for Investment and Allowance for Credit Losses - Strategic Program Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	$ 372,215	$ 236,601
Strategic Program loans
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	19,408	24,259
Strategic Program loans held-for-sale	47,514	23,589
Total Strategic Program loans	$ 66,922	$ 47,848

Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted shares - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Number of Shares
Unvested as of beginning of year (in shares)	123,055	0
Granted (in shares)	168,821	123,055
Vested (in shares)	(92,668)
Unvested as of end of year (in shares)	199,208	123,055
Weighted Average Grant Price
Unvested as of beginning of year (in dollars per share)	$ 12.28	$ 0
Granted (in dollars per shares)	8.63	12.28
Vested (in dollars per share)	10.43
Unvested as of end of year (in dollars per share)	$ 10.05	$ 12.28

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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


	For the Years Ended December 31,
($ in thousands)	2023		2022
Interest income
Interest income, not-in-scope
Interest and fees on loans	$	58,445	$	50,941
Interest on securities	338		208
Other interest income	5,751		1,180
Total interest income	$	64,534	$	52,329

Non-interest income
Non-interest income, in-scope
Service charges on deposit accounts	$	26	$	31
Strategic Program set up fees	223		195

Non-interest income, not in-scope
Strategic Program fees	15,362		21,438
Gain on sale of loans	1,684		13,550
SBA loan servicing fees	1,466		1,603
Change in fair value on investment in BFG	(600)		(478)
Other miscellaneous income	2,590		239
Strategic Program service charges	329		834
Total non-interest income	$	21,080	$	37,411

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Weighted Average Assumptions used in Black-Scholes Option Pricing Model

The table below summarizes the weighted average assumptions used in determining the Black-Scholes option pricing model for options granted during 2023 and 2022:


	2023		2022
Risk-free interest rate	3.68	%	3.10	%
Expected term in years	6		5.5 - 6.5
Expected volatility	44.2	%	45.8% - 46.7%
Expected dividend yield	—		—

Schedule of the Adoption of ASC 326

The Company finalized the adoption of ASC 326 as of January 1, 2023 as detailed in the following table:


	12/31/2023				1/1/2024
($ in thousands)	Pre-ASU 2016-13 adoption		Impact of ASU 2016-13 adoption		After ASU 2016-13 Adoption
Construction and land development	$	424	$	(67)	$	357
Residential real estate	876		(58)		818
Residential real estate multifamily	3		1		4
Commercial real estate
Owner occupied	3,030		(532)		2,498
Non-owner occupied	208		(42)		166
Commercial and industrial	339		(85)		254
Consumer	65		14		79
Commercial leases	339		(105)		234
Strategic Program loans	6,701		1,131		7,832
Total allowance for loan losses	$	11,985	$	257	$	12,242

Unfunded lending commitments	—		26		26
Total allowance for credit losses	$	11,985	$	283	$	12,268

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

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 subsidiaries FinWise Bank, f/k/a Utah Community Bank and FinWise Investment, LLC. 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, FinWise Investment, LLC, and FinWise Bank collectively and on a consolidated basis. References to the “Bank” refer to FinWise Bank on a standalone basis.

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.

Significant concentrations of credit risk – All of the Company's activities are with customers located throughout the United States. The Company has concentrations in SBA loans, Strategic Program loans, and residential real estate loans. Accordingly, their ultimate collectability is particularly susceptible to changes in market conditions.

Ongoing analysis of the Company's loan portfolio is performed to evaluate whether there is any significant exposure to an individual borrower or group(s) of borrowers as a result of any concentrations of credit risk. Such credit risks (whether on- or off-balance sheet) may occur when groups of borrowers or counterparties have similar economic characteristics and are similarly affected by changes in economic or other conditions. Credit risk also includes the loss that would be recognized subsequent to the reporting date if counterparties failed to perform as contracted. As of December 31, 2023 and 2022, the Company analyzed its exposure to credit risks and concluded that no significant exposure exists from such concentrations of credit risk.

Principles of consolidation – The consolidated financial statements include the account of FinWise Bancorp and its wholly-owned subsidiaries, FinWise Investment, LLC and FinWise Bank. All significant inter-company balances and transactions have been eliminated in consolidation.

Out-of-period adjustments – During the first quarter of 2022, the Company 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 impact associated with this correction was not considered material to the interim unaudited consolidated financial statements for the year ended December 31, 2022, or the financial statements of any previously filed interim or annual periods.

During the third quarter of 2022, the Company identified an error in the calculation of the Company’s tax provision which understated income tax expense for previously reported financial statements. The error was related to an incorrect application of Section 162(m) of the Internal Revenue Code, which limits tax deductions relating to executive compensation of certain executives of publicly held companies. The Company recorded an out-of-period adjustment during the third quarter of 2022 to correct the previously understated income tax expense. The adjustment resulted in a decrease to after-tax income of $(0.9) million for the year ended December 31, 2022. The impact associated with this correction was not considered material to the interim unaudited consolidated financial statements for the three months ended September 30, 2022, year ended December 31, 2022, or the financial statements of any previously filed interim or annual periods.

During the fourth quarter of 2022, the Company established a new loan trailing fee asset which is included in “Other assets” on the Consolidated Balance Sheets of approximately $2.3 million and recognized $2.1 million in gain on sale of loans ($1.5 million net of tax) as an out-of-period adjustment of which $1.2 million ($0.9 million net of tax) would have been recorded in the first three quarters of 2022 with the remaining $0.9 million ($0.6 million net of tax) associated with years prior to 2022. Before this correction, the loan trailing fees had been recognized in revenue during the month payment

was owed by the Strategic Program rather than as a gain to be recognized upon sale of the loan receivables. The impact associated with this correction was not considered material to the interim unaudited consolidated financial statements for the year ended December 31, 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 Generally Accepted Accounting Principles (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.

Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses (ACL), the determination of the fair value of certain financial instruments, deferred income tax assets and stock-based compensation.

Management believes the ACL is adequate. While management uses currently available information to recognize credit losses on loans, future additions to the allowance may be necessary based on economic conditions and individual credit deterioration.

Cash and Cash Equivalents – For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, other interest-bearing deposits, and federal funds sold.

The Company maintains its cash in deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits; however, on March 15, 2020, the Federal Reserve announced that reserve requirement ratios would be reduced to zero percent effective March 26, 2020, due to economic conditions, which eliminated the reserve requirement for all depository institutions. The reserve requirement is still at zero percent as of December 31, 2023.

Investments

Investment securities – Debt securities that management has the positive intent and ability to hold to maturity are classified as "held-to-maturity" and recorded at amortized cost. Securities not classified as held-to-maturity are classified as "available for sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. The Company did not hold any available for sale securities at December 31, 2023 or 2022.

Management no longer evaluates securities for other-than-temporary impairment after the adoption of ASU 2016-13, Topic 326 which changed the accounting for recognizing impairment on available for sale and held to maturity debt securities. Each quarter management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security's fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component recognized through the Provision for Credit Losses on the Consolidate Statement of Income. (See Note 2 - Investments.)

Equity method investments – Ownership interests in entities for which the Company has significant influence that are not consolidated are accounted for as equity method investments. SEC Staff Announcement: Accounting for Limited Partnership Investments (codified in Accounting Standards Codification (“ASC”) 323-30-S99-1) guidance requires the use of the equity method unless the investor’s interest “is so minor that the limited partner may have virtually no influence over partnership operating and financial policies.” The SEC staff’s position is that investments in limited partnerships and limited liability companies of greater than 3% to 5% are considered more than minor and, therefore, should be accounted for using the equity method or fair value option and are not required to be consolidated. The Company concluded that, consistent with its accounting policy, the Company’s level of ownership in Business Funding Group, LLC (“BFG”) 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. Pursuant to electing the fair value option, the Company measures its investment in BFG at fair value each reporting period and changes in fair value are recorded in the Consolidated Statements of Income within ‘Change in fair value on investment in BFG.’ See Note 9, Investment in Business Funding Group, LLC, for a discussion about the Company’s investment in BFG.

Investment in Federal Home Loan Bank ("FHLB") stock – FHLB stock investments are required based on the level of the Bank’s assets, capital and/or capital/surplus. FHLB stock is carried at cost and periodically evaluated for impairment. There is no readily determinable fair value for this stock as it has no quoted market value, it is a required investment and it is expected to be redeemed at par value. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs are jointly and severally liable for repayment of each other’s debt. Cash dividends are reported as a component of Other miscellaneous income in the Consolidated Statements of Income.

Loans Receivable – Loans receivable are reported at their outstanding principal adjusted for any charge-offs, the allowance for credit losses, and deferred fees and costs. Loan origination fees, net of certain direct origination costs, if any, are deferred and recognized on an adjustment of the related loan yield using an effective-yield method over the contractual life of the loan. Interest income on loans is recognized on an accrual basis commencing in the month of origination using the interest method. Delinquency fees are recognized in income when chargeable and when collectability is reasonably assured.

The Company requires most loans and leases to be substantially collateralized by real estate, equipment, vehicles, accounts receivable, inventories or other tangible or intangible assets. Real estate collateral is generally in the form of first and second mortgages on various types of property. The Company also originates unsecured loans to consumers and businesses.

The Company may change its intent from holding loans for investment and reclassify them as held-for-sale.

Loans Held For Sale - Loans held-for-sale are carried at the lower of aggregate cost or fair value. Gains and losses are recorded in non-interest income based on the difference between sales proceeds and carrying value. While the Company sells the vast majority of the loans funded in its Strategic Programs shortly after origination, the Company may choose to retain a portion of the funded loans and/or receivables.

Allowance for Credit Losses - On January 1, 2023, the Company adopted ASU 2016-13, Topic 326 which replaced the incurred loss methodology with CECL for financial instruments measured at amortized cost and other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable economic forecasts of future events and circumstances.

The allowance for credit losses (“ACL”) on loans held for investment is the combination of the allowance for loan losses and the reserve for unfunded loan commitments. The allowance for loan losses is reported as a reduction of the amortized cost basis of loans, while the reserve for unfunded loan commitments is included within "other liabilities" on the Consolidated Balance Sheets. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates. Accrued interest receivable is excluded from the ACL calculation. The amortized cost basis of loans does not include accrued interest receivable, which is included in "accrued interest receivable" on the Consolidated Balance Sheets. As of December 31, 2023 and 2022 the Company had balances of accrued interest receivable of $3.6 million and $1.8 million, respectively. The amount related to investments held-to-maturity was de minimis as of December 31, 2023 and 2022. The "Provision for credit losses" on the Consolidated Statements of Income is a combination of the provision for credit losses and the provision for unfunded loan commitments.

ACL in accordance with CECL methodology

With respect to the Bank's core portfolio which consists of SBA 7(a), local lending, retail point of sale, and equipment finance and leasing, the Bank pools similar loans that are collectively evaluated and determines an appropriate level of general allowance by portfolio segment using a non-discounted cash flow model taking into account probability of default, loss in the event of default, and prepayment speed estimates based on industry specific collected data. The model captures losses over the historical charge-off and prepayment cycle and applies those losses at a loan level over the remaining maturity of the loan. The model then calculates a historical loss rate using the average losses over the reporting period, which is then applied to each segment utilizing a standard reversion rate. With respect to the Bank's active retained Strategic Program loan portfolio, the Bank is using a methodology that compares the actual loan performance of a vintage to the worst performing loans within that vintage, known as the high-water mark. The Bank records the expected credit losses based on the high-water mark loss rate. With respect to the Bank's inactive retained Strategic Program loan portfolio, performance data at the summary level provided by the Strategic Programs is banded by credit profile and original loan term and compared to actual loan performance on a quarterly basis. The expected loss rate is supplemented with

adjustments for reasonable and supportable forecasts of relevant economic indicators, including but not limited to national unemployment rate forecasts. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. Also included in the ACL are qualitative factors based on the risks present for each portfolio segment. These qualitative factors include the following that are derived from the Interagency Policy Statement on Allowance for Credit Losses: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the loan portfolio; changes in the nature and volume of the loan portfolio and in the terms of loans; changes in the experience, ability, and depth of lending management and staff; changes in the volume and severity of past due loans, nonaccrual loans, and classified or graded loans; changes in the quality of the Bank's loan review system; changes in the value of underlying collateral for loans that are not collateral-dependent; changes in the level of concentration of credit; changes in the effect of competition, legal, and regulatory requirements on the level of estimated credit losses; and, if applicable, changes in the composition and volume of the loan portfolio due to mergers, acquisitions, and other significant transactions not considered elsewhere. The Bank also considers as an additional qualitative factor any lingering "ripple" effects of the Covid-19 pandemic, including lasting changes to consumer behavior, lending, and society at large. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant.

When management identifies loans that do not share common risk characteristics (i.e., are not similar to other loans within a pool) they are evaluated on an individual basis. These loans are not included in the collective evaluation. For loans identified as having a likelihood of foreclosure or that the borrower is experiencing financial difficulty, a collateral dependent approach is used. These are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral. Under CECL, for collateral dependent loans, the Company has adopted the practical expedient method to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required.

The CECL methodology requires a significant amount of management judgment in determining the appropriate allowance for credit losses. Several of the steps in the methodology involve judgment and are subjective in nature including, among other things: segmenting the loan portfolio; determining the amount of loss history to consider; selecting predictive econometric regression models that use appropriate macroeconomic variables; determining the methodology to forecast prepayments; selecting the most appropriate economic forecast scenario; determining the length of the reasonable and supportable forecast and reversion periods; estimating expected utilization rates on unfunded loan commitments; and assessing relevant and appropriate qualitative factors. In addition, the CECL methodology is dependent on economic forecasts, which are inherently imprecise and will change from period to period. Although the allowance for credit losses is considered appropriate, there can be no assurance that it will be sufficient to absorb future losses.

In determining an appropriate amount for the allowance, the Bank segments and aggregates the loan portfolio based on common characteristics. The following segments have been identified:

Commercial Real Estate. These loans are generally secured by owner-occupied nonfarm, nonresidential properties, or by other nonfarm, nonresidential properties. Owner-occupied commercial real estate loans are typically repaid first by the cash flows generated by the underlying business. Factors that may influence a business' cash flows include, but are not limited to, demand for its products or services, quality and depth of management, degree of competition, regulatory changes, and general economic conditions. Non-owner occupied commercial real estate loans are generally considered to have a higher degree of credit risk as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions.

Commercial and Industrial. These loans are generally secured by business assets such as furniture, fixtures, equipment, accounts receivable, inventory, business vehicles, and other business personal property. Commercial and industrial loans are typically repaid first by the cash flows generated by the borrower's business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and resulting positive cash flows. Factors that may influence a business' profitability include, but are not limited to, demand for its products or services, quality and depth of management, degree of competition, regulatory changes, and general economic conditions.

Commercial Leases. Equipment financing and leasing typically involve the use of equipment as collateral for the loan. If the borrower defaults on the loan, the Bank may need to repossess and sell the equipment to recover the

outstanding debt. However, the value of the equipment may depreciate over time, or disappear, making it difficult for the Bank to recover the full amount of the lease. In equipment leasing, the residual value of the equipment is an important consideration. The residual value is the estimated value of the equipment at the end of the lease term. If the actual value of the equipment is lower than the residual value, the lessor may not be able to recover the full amount of the lease payments.

Construction and Land Development. Risks common to construction loans are cost overruns, changes in market demand for property, supply chain interruption affecting construction materials, inadequate long-term financing arrangements and declines in real estate values. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Risks common to residential lot loans are those similar to other types of real estate construction loans, as many customers finance the purchase of improved lots in anticipation of constructing a 1 to 4 family residence. Accordingly, common risks are changes in market demand for property, supply chain interruption affecting construction materials, inadequate long-term financing arrangements and declines in real estate values. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values and higher interest rates.

Consumer. These are loans to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral.

Residential Real Estate. These loans are generally secured by 1 to 4 family residential properties. The primary risk characteristics associated with residential mortgage loans typically involve: major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as for major medical issues or catastrophic events; and divorce or death. In addition, residential mortgage loans that have adjustable rates could expose the borrower to higher debt service requirements in a rising interest rate environment. Further, real estate values could drop significantly and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank.

Residential Real Estate Multifamily. Risks common to multifamily loans are poor management, high vacancy rates and regulatory changes. The value of multi-family properties can be impacted by changes in the local real estate market. If property values decline, the Bank may not be able to recover the full amount of the loan if the property needs to be foreclosed.

Strategic Program Loans Held for Investment. Unsecured consumer loans and secured or unsecured business loans issued by the Company through these programs generally follow and are limited to specific predetermined underwriting criteria. Strategic Program loans cover a wide range of borrower credit profiles, loan terms and interest rates. Strategic Program loans generally have higher interest rates and shorter terms similar to consumer loans and tend to have higher credit risk due to the type of collateral securing the loan or in most cases the absence of collateral.

Nonaccrual Loans – The Company's policy is to place loans on a nonaccrual status when: 1) payment is in default for 90 days or more unless the loan is well secured and in the process of collection; or 2) full repayment of principal and interest is not foreseen. When a loan is placed on nonaccrual status, all accrued and uncollected interest on that loan is reversed. Past-due interest received on nonaccrual loans is not recognized in interest income but is applied as a reduction of the outstanding principal of the loan. A loan is relieved of its nonaccrual status when all principal and interest payments are brought current, the loan is well secured, and an analysis of the borrower's financial condition provides reasonable assurance that the borrower can repay the loan as scheduled.

Premises and equipment, net – Premises and equipment are stated at cost less accumulated depreciation. Depreciation included in the operating expense is computed using the straight-line method over the estimated useful lives of the related assets. Expenditures for new premises and equipment and major improvements are capitalized. Normal costs of maintenance and repairs are charged to expense as incurred. Gains and losses on dispositions are included in non-interest expense.

Leases – The Company accounts for leases according to ASU 2016-02, Leases (Topic 842), and applies a right -of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. The Company elected to apply the package of practical expedients permitting entities to not reassess: 1) whether any expired or existing contracts are or contain leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. Additionally, as provided by ASU 2016-02, the Company elected to not apply the recognition requirements of ASC 842 to

short-term leases, defined as leases with a term of twelve months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term.

Income taxes – Deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority.

Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial statements.

Transfer of financial assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: 1) the assets have been isolated from the Company, 2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and 3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

SBA servicing asset, net – Servicing assets are recognized as separate assets when servicing rights are acquired through sale of financial assets. For sales of SBA loans, or portions of SBA loans, with servicing retained, a portion of the cost of originating the loan is allocated to the servicing asset based on relative fair value. Fair value is based on a valuation model that calculates the present value of estimated future servicing income. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into non-interest income in proportion to, and over the period of, estimated future net servicing income of the underlying loans. The SBA servicing asset is carried at the lower of cost or market value.

The SBA servicing asset is evaluated annually for impairment based on the fair value of the asset as compared to amortized cost. Capitalized servicing rights are stated separately on the consolidated balance sheet and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets.

Servicing fee income, which is reported in the consolidated statements of income in SBA loan servicing fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of servicing assets and changes in the valuation allowance are netted against loan servicing income.

Stock Repurchase Program – On August 18, 2022, the Company announced that its Board of Directors (the “Board”) had authorized, effective August 16, 2022, a common stock repurchase program to purchase up to 644,241 shares of the Company’s common stock in the aggregate. The repurchase program authorized the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or privately negotiated transactions. The authorization permitted management to repurchase shares of the Company’s common stock from time to time at management’s discretion. Repurchases could also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The actual means and timing of any shares purchased under the program depended on a variety of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal and regulatory requirements. The repurchase program did not obligate the Company to purchase any particular number of shares. As of December 31, 2023, the Company has repurchased a total of 644,241 shares for $5.9 million and retired them at cost thereby completing the Company's share repurchase program.

Revenue from Contracts with Customers – The Company applies the provisions of ASC 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of this standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Services that the Company reports as part of non-interest income are subject to ASC 606 and include fees from its deposit customers for transaction-based activities, account maintenance charges and overdraft services. Transaction-based fees, such as ACH and wire transfer fees, overdraft, return

and stop payment charges, are recognized at the time such transactions are executed and the services have been fulfilled by the Company. The fees are typically withdrawn from the customer’s deposit account balance. The Company also receives fees from third-parties in its Strategic Programs for setting up systems and procedures to efficiently originate loans in a convenient, compliant and safe manner. Because the third-party simultaneously receives and benefits from the services, revenue is recognized evenly over the term of the loan program. Program Fees received in connection with the Company’s Strategic Programs are recorded at the time services are provided.

Stock-based compensation – The Company accounts for all stock-based awards to employees and non-employees, including grants of stock options and restricted stock awards, based on their respective grant date fair values. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model. Restricted stock awards are valued based on the fair value of the Company’s common stock on the date of grant. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment and include consideration of historical experience. Expected volatility is based on the Company's data 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. The Company expenses stock-based compensation related to stock options and restricted stock over the requisite service period. The Company accounts for forfeitures of stock–based awards as they occur. Stock-based compensation expense pertaining to employees is included in salaries and employee benefits on the income statement. Stock-based compensation expense related to directors and consultants is included in other operating expenses on the income statement.

The table below summarizes the weighted average assumptions used in determining the Black-Scholes option pricing model for options granted during 2023 and 2022:


	2023		2022
Risk-free interest rate	3.68	%	3.10	%
Expected term in years	6		5.5 - 6.5
Expected volatility	44.2	%	45.8% - 46.7%
Expected dividend yield	—		—

Earnings per share (“EPS”) – Basic EPS is computed by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted EPS is computed by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares include incremental common shares issuable upon exercise of outstanding stock options and non-vested restricted common shares, that are not considered participating securities, using the treasury stock method.

The two-class method is used to determine earnings per share based on participation rights of participating securities in any undistributed earnings. Each unvested restricted share granted by the Company to its employees that includes rights to participate in distributed earnings is considered a participating security and the Company uses the two-class method to calculate net income available to the Company’s common shareholders per common share – basic and diluted.

Off-balance sheet instruments – In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the consolidated balance sheet. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default.

Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on

management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

The Company records a reserve on its unfunded loan commitments which is included within "other liabilities" on the Consolidated Balance Sheets. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates.

Segment Reporting – Operating segments are components of a business where separate financial information is available and evaluated regularly by the chief operating decision makers ("CODMs") in deciding how to allocate resources and in assessing performance. ASC Topic 280, Segment Reporting, requires information to be reported about a company's operating segments using a "management approach", meaning it is based on the way management organizes segments internally to make operating decisions and assess performance. Based on this guidance, the Company has one reportable operating segment, the Bank.

Recently adopted accounting pronouncements

On January 1, 2023, the Company adopted ASU 2016-13, Topic 326 which replaced the incurred loss methodology with CECL for financial instruments measured at amortized cost and other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable economic forecasts of future events and circumstances.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposure. Results for the reporting periods beginning after January 1, 2023 are presented under ASC 326. The adoption resulted in an increase in our allowance for credit losses on loans of $0.3 million, a de minimis increase to our allowance for unfunded commitments, and a net-of-tax cumulative effect adjustment of $0.2 million to decrease the beginning balance of retained earnings.

The Company finalized the adoption of ASC 326 as of January 1, 2023 as detailed in the following table:


	12/31/2023				1/1/2024
($ in thousands)	Pre-ASU 2016-13 adoption		Impact of ASU 2016-13 adoption		After ASU 2016-13 Adoption
Construction and land development	$	424	$	(67)	$	357
Residential real estate	876		(58)		818
Residential real estate multifamily	3		1		4
Commercial real estate
Owner occupied	3,030		(532)		2,498
Non-owner occupied	208		(42)		166
Commercial and industrial	339		(85)		254
Consumer	65		14		79
Commercial leases	339		(105)		234
Strategic Program loans	6,701		1,131		7,832
Total allowance for loan losses	$	11,985	$	257	$	12,242

Unfunded lending commitments	—		26		26
Total allowance for credit losses	$	11,985	$	283	$	12,268

On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures which eliminated the accounting guidance for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments in the ASU also require an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic

326-20. The Company applied the amendments in this ASU prospectively. The adoption of ASU 2022-02 did not have a material impact on the consolidated financial statements.

Recent accounting pronouncements

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments are intended to address investors’ requests for income tax disclosures that provide more information to help them better understand an entity’s exposure to potential changes in tax laws and the ensuing risks and opportunities and to assess income tax information that affects cash flow forecasts and capital allocation decisions. The guidance also eliminates certain existing requirements related to uncertain tax positions and unrecognized deferred tax. The guidance is effective for annual periods beginning after December 15, 2024. The Company is evaluating the effect that ASU 2023-09 will have on its consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance” and assess “potential future cash flows. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280. The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the effect that ASU 2023-06 will have on its consolidated financial statements and related disclosures.

On October 9, 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification of Initiative.” ASU 2023-06 amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were “redundant, duplicative, overlapping, outdated, or superseded.” The new guidance is intended to align U.S. GAAP requirements with those of the SEC and to facilitate the application of U.S. GAAP for all entities. ASU 2023-06 applies to all reporting entities within the scope of the amended subtopics. Note that some of the amendments introduced by the ASU are technical corrections or clarifications of the FASB’s current disclosure or presentation requirements. The effective date for each amendment of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company will apply the amendments in ASU 2023-06 prospectively after the effective dates. The Company is evaluating the effect that ASU 2023-06 will have on its consolidated financial statements and related disclosures.

Loans Held for Investment and Allowance for Credit Losses - Portfolio Classes by Incurred Loss Methodology (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA	$ 372,215	$ 236,601
Financing Receivable, Incurred Loss Methodology
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		236,601
SBA
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		145,172
SBA \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		145,172
Commercial leases
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA	38,110	9,252
Commercial leases \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		9,252
Commercial, non-real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		2,232
Commercial, non-real estate \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		2,232
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA	51,428	37,815
Residential real estate \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		37,815
Strategic Program loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA	19,408	24,259
Strategic Program loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		24,259
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		12,063
Commercial real estate \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		12,063
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA	$ 10,989	5,808
Consumer \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Allowance for Credit Loss [Line Items]
Amount of loans guaranteed by SBA		$ 5,808

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Nature of business and organization

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.

Significant concentrations of credit risk

Principles of consolidation

Out-of-period adjustments

Use of estimates

Cash and cash equivalents

Investments

Investment in Federal Home Loan Bank ("FHLB") stock

Loans receivable

The Company may change its intent from holding loans for investment and reclassify them as held-for-sale.

Loans held for sale

Allowance for credit losses and nonaccrual loans

ACL in accordance with CECL methodology

In determining an appropriate amount for the allowance, the Bank segments and aggregates the loan portfolio based on common characteristics. The following segments have been identified:

Premises and equipment, net

Leases

short-term leases, defined as leases with a term of twelve months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term.

Income taxes

Transfer of financial assets

SBA servicing asset, net

Stock repurchase program

Revenue from contracts with customers

Stock-based compensation

The table below summarizes the weighted average assumptions used in determining the Black-Scholes option pricing model for options granted during 2023 and 2022:


	2023		2022
Risk-free interest rate	3.68	%	3.10	%
Expected term in years	6		5.5 - 6.5
Expected volatility	44.2	%	45.8% - 46.7%
Expected dividend yield	—		—

Earnings per share ("EPS")

Off-balance sheet instruments

management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

Segment reporting

Recent accounting pronouncements

Recently adopted accounting pronouncements

The Company finalized the adoption of ASC 326 as of January 1, 2023 as detailed in the following table:


	12/31/2023				1/1/2024
($ in thousands)	Pre-ASU 2016-13 adoption		Impact of ASU 2016-13 adoption		After ASU 2016-13 Adoption
Construction and land development	$	424	$	(67)	$	357
Residential real estate	876		(58)		818
Residential real estate multifamily	3		1		4
Commercial real estate
Owner occupied	3,030		(532)		2,498
Non-owner occupied	208		(42)		166
Commercial and industrial	339		(85)		254
Consumer	65		14		79
Commercial leases	339		(105)		234
Strategic Program loans	6,701		1,131		7,832
Total allowance for loan losses	$	11,985	$	257	$	12,242

Unfunded lending commitments	—		26		26
Total allowance for credit losses	$	11,985	$	283	$	12,268

326-20. The Company applied the amendments in this ASU prospectively. The adoption of ASU 2022-02 did not have a material impact on the consolidated financial statements.

Recent accounting pronouncements

Stock-Based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Stock Options
Outstanding, beginning of year (in shares)	881,625	862,488
Options granted (in shares)	126,406	89,415
Options exercised (in shares)	(17,640)	(56,280)
Options forfeited (in shares)	(8,903)	(13,998)
Outstanding, end of period (in shares)	981,488	881,625	862,488
Options vested and exercisable, end of year (in shares)	716,175
Weighted Average Exercise Price
Outstanding, beginning of year (in dollars per share)	$ 5.27	$ 4.41
Options granted (in dollars per share)	8.64	13.04
Options exercised (in dollars per share)	2.45	4.62
Options forfeited (in dollars per share)	9.52	4.40
Outstanding, end of period (in dollars per share)	5.72	$ 5.27	$ 4.41
Options vested and exercisable, end of period (in dollars per share)	$ 4.75
Weighted Average Contractual Life (in years)
Outstanding	6 years 10 months 24 days	7 years 6 months	8 years 2 months 12 days
Options granted	9 years 10 months 24 days	9 years 10 months 24 days
Options vested and exercisable	6 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding, beginning of year	$ 3,871,667	$ 8,088,660
Options granted	0	0
Options exercised	120,229	393,534
Options forfeited	12,089	124,874
Outstanding, end of year	8,429,619	$ 3,871,667	$ 8,088,660
Options vested and exercisable	$ 6,847,964

Retirement Plan	12 Months Ended
Retirement Plan	Dec. 31, 2023
Retirement Benefits [Abstract]
Retirement Plan	Retirement Plan The Company has established an employee directed 401(k) plan (Plan). The Plan requires the Company to annually contribute a “Safe Harbor” profit sharing contribution for all eligible participants. In addition, the Plan allows the Company, at its discretion, to make a matching contribution or additional profit sharing contribution based on each eligible employee’s compensation for the Plan year. The participants must be at least 21 years of age and have at least one year of service in order to be eligible for matching and profit-sharing contributions. The Company made profit-sharing contributions to the Plan of $0.6 million and $0.5 million for the years ended December 31, 2023 and 2022, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
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+ Details

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Dec. 31, 2023
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity Stock Repurchases On August 18, 2022, the Company announced that its Board of Directors (the “Board”) has authorized, effective August 16, 2022, a common stock repurchase program to purchase up to 644,241 shares of the Company’s common stock in the aggregate. The repurchase program expires on August 31, 2024, but may be limited or terminated at any time without prior notice. The repurchase program authorizes the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or privately negotiated transactions. The authorization permits management to repurchase shares of the Company’s common stock from time to time at management’s discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The actual means and timing of any shares purchased under the program will depend on a variety of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares. The Company has repurchased 644,241 shares for approximately $5.9 million and retired them at cost thereby completing the Company's share repurchase program during the third quarter of 2023.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Pre-tax stock-based compensation expense	$ 2,046	$ 778
After-tax stock-based compensation expense	1,644	656
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Pre-tax stock-based compensation expense	493	320
After-tax stock-based compensation expense	477	312
Restricted shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Pre-tax stock-based compensation expense	1,553	458
After-tax stock-based compensation expense	$ 1,166	$ 344

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Premises and Equipment - Narrative (Details) $ in Thousands	12 Months Ended
Premises and Equipment - Narrative (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) Lease
Property, Plant and Equipment [Line Items]
Premises and equipment, net	$ 14,630	$ 9,478
Rental income	1,300	200
Depreciation expense	1,000	200
Operating lease expense	911	$ 1,098
Number of leases entered into during period \| Lease		1
Commercial operating lease equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, net	$ 8,200	$ 2,700

Deposits - Major Classes of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposits, by Type [Abstract]
Demand	$ 145,544	$ 129,563
Savings	8,633	8,289
Money markets	11,661	10,882
Time certificates of deposit	238,995	94,264
Total deposits	$ 404,833	$ 242,998

Loans Held for Investment and Allowance for Credit Losses - Modified Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) contract	Dec. 31, 2022 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts modified \| contract	1
Residential real estate \| Payment Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal deferment (Months)	12 months
Outstanding Balance	$ 156
SBA
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts \| contract		1
Pre- Modification Outstanding Recorded Investment		$ 377
Post- Modification Outstanding Recorded Investment		$ 377

Fair Value of Financial Instruments - Quantitative Information for Level 3 Fair Value Measurements (Details) - Level 3 $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans	$ 27,127	$ 450
Market comparable \| Adjustment to appraisal value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input	0.0757	0.0020

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2023	Mar. 20, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-40721
Entity Registrant Name	FINWISE BANCORP
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	83-0356689
Entity Address, Address Line One	756 East Winchester, Suite 100
Entity Address, City or Town	Murray
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84107
City Area Code	801
Local Phone Number	501-7200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	FINW
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 93.0
Entity Common Stock, Shares Outstanding		12,818,944
Documents Incorporated by Reference	Portions of the registrant’s proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2024 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the registrant’s fiscal year ended December 31, 2023.
Entity Central Index Key	0001856365
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Investment in BFG Activity

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


	For the Years Ended December 31,
($ in thousands)	2023		2022
Beginning balance	$	4,800	$	5,900
Distributions from BFG	—		(622)
Change in fair value of BFG	(600)		(478)
Ending balance	$	4,200	$	4,800

Carrying Amount and Fair Value of Financial Instruments

The table below presents the carrying amount and fair value of the Company's financial instruments:


		December 31, 2023				December 31, 2022
($ in thousands)	Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	116,975	$	116,975	$	100,567	$	100,567
Investment securities held-to-maturity	2	15,388		13,809		14,292		12,728
Investment in FHLB stock	2	238		238		449		449
Loans held for investment	3	358,560		360,032		224,217		237,225
Loans held-for-sale	2	47,514		47,509		23,589		23,589
Accrued interest receivable	2	3,573		3,573		1,818		1,818
SBA servicing asset	2	4,231		4,231		5,210		5,210
Investment in BFG	3	4,200		4,200		4,800		4,800
Financial liabilities:
Total deposits	2	404,833		394,195		242,998		221,287
Accrued interest payable	2	619		619		54		54
PPP Liquidity Facility	2	190		190		314		314

Assets Measured at Fair Value on a Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis are summarized as follows:


($ in thousands)			Fair Value Measurements Using
Description of Financial Instrument	Fair Value		Level 1		Level 2		Level 3
December 31, 2023
Nonrecurring assets
Individually evaluated loans	$	27,127	$	—	$	—	$	27,127
December 31, 2022
Nonrecurring assets
Individually evaluated loans	$	450	$	—	$	—	$	450

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 December 31, 2023 and as of December 31, 2022, along with the valuation techniques used, are shown in the following table:

($ in thousands)

Fair Value

Valuation
Technique

Unobservable
Input

Range
(Weighted Average)

December 31, 2023

Individually evaluated loans

27,127

Market
comparable

Adjustment to
appraisal value

7.57

December 31, 2022

Individually evaluated loans

450

Market
comparable

Adjustment to
appraisal value

0.20

Significant Unobservable Inputs Used to Fair Value Investment in BFG on Recurring Asset


($ in thousands)	December 31, 2023 Range (Weighted Average)		December 31, 2022 Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate	11.0	%	10.8	%
Expense growth rate	13.4	%	11.5	%
Discount rate	20.0	%	30.0	%

Guideline Public Company
Multiples of enterprise value	3.5x to 5.5x		3.0x to 5.0x

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Cash and cash equivalents
Cash and due from banks	$ 411	$ 386
Interest-bearing deposits	116,564	100,181
Total cash and cash equivalents	116,975	100,567
Investment securities held-to-maturity,net of allowance for credit losses of none, (fair value of $13.8 million and $12.7 million, respectively)	15,388	14,292
Investment in Federal Home Loan Bank (FHLB) stock, at cost	238	449
Strategic Program loans held-for-sale, at lower of cost or fair value	47,514	23,589
Loans receivable, net of allowance for credit losses of $12.9 million and $12.0 million, respectively	358,560	224,217
Premises and equipment, net	14,630	9,478
Accrued interest receivable	3,573	1,818
Deferred taxes, net	0	1,167
Small Business Administration servicing asset, net	4,231	5,210
Investment in Business Funding Group (BFG), at fair value	4,200	4,800
Operating lease right-of-use (“ROU”) assets	4,293	5,041
Income taxes receivable, net	2,400	0
Other assets	14,219	10,152
Total assets	586,221	400,780
Deposits
Noninterest-bearing	95,486	78,817
Interest-bearing	309,347	164,181
Total deposits	404,833	242,998
Accrued interest payable	619	54
Income taxes payable, net	1,873	1,077
Deferred taxes, net	748	0
Paycheck Protection Program Liquidity Facility	190	314
Operating lease liabilities	6,296	7,020
Other liabilities	16,606	8,858
Total liabilities	431,165	260,321
Commitments and contingencies (Note 8)
Shareholders’ equity
Preferred stock, $0.001 par value, 4,000,000 authorized; no shares issued and outstanding as of December 31, 2023 and December 31, 2022	0	0
Common stock, $0.001 par value, 40,000,000 shares authorized; 12,493,565 and 12,831,345 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively	12	13
Additional paid-in-capital	51,200	54,614
Retained earnings	103,844	85,832
Total shareholders’ equity	155,056	140,459
Total liabilities and shareholders’ equity	$ 586,221	$ 400,780

Summary of Significant Accounting Policies - Nature of Business and Organization (Details)	Dec. 31, 2023
FinWise Bank
Variable Interest Entity [Line Items]
Percentage of business acquired	100.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
LIABILITIES AND SHAREHOLDERS’ EQUITY
Investment securities held-to-maturity, allowance for credit losses	$ 0	$ 0
Investment securities held-to-maturity, fair value	13,809,000	12,728,000
Loans receivable, allowance for credit losses	$ (12,888,000)	$ (11,985,000)
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)	12,493,565	12,831,345
Common stock, shares outstanding (in shares)	12,493,565	12,831,345

Related Parties (Details) - USD ($) $ in Millions	Oct. 21, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Deposits		$ 1.5	$ 1.2
Mr. Alan Weichselbaum
Schedule of Equity Method Investments [Line Items]
Proceeds from collection of promissory note to related party	$ 0.1
BFG
Schedule of Equity Method Investments [Line Items]
Membership interest				10.00%
BFG \| Related Party
Schedule of Equity Method Investments [Line Items]
Membership interest		10.00%

Premises and Equipment - Minimum Future Rental Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Year Ended December 31, 2024	$ 1,104
Year Ended December 31, 2025	1,086
Year Ended December 31, 2026	1,118
Year Ended December 31, 2027	1,152
Year Ended December 31, 2028	1,186
Thereafter	1,017
Total	6,663
Less present value discount	(367)
Operating lease liabilities	$ 6,296	$ 7,020

Commitments and Contingent Liabilities - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Apr. 20, 2020
Line of Credit Facility [Line Items]
Paycheck Protection Program Liquidity Facility	$ 190	$ 314
Allowance for credit losses on unfunded commitments	139	0
Paycheck Protection Program Liquidity Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	200	300
Fixed rate			0.35%
Average outstanding borrowings	300	600
Line of Credit
Line of Credit Facility [Line Items]
Paycheck Protection Program Liquidity Facility	0	0
Federal Reserve Bank borrowings on collateral	11,400	10,600
Term Funding Program
Line of Credit Facility [Line Items]
Federal Reserve Bank borrowings on collateral	800
Zion Bank \| Line of Credit
Line of Credit Facility [Line Items]
Unsecured line available	5,000	1,000
Bank of the West \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	1,100	1,100
Federal Home Loan Bank Secured Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	30,500	2,600
Paycheck Protection Program Liquidity Facility	0	0
Loans	$ 46,900	$ 4,000

Summary of Significant Accounting Policies - Segment Reporting (Details)	12 Months Ended
	Dec. 31, 2023 segment
Accounting Policies [Abstract]
Number of reportable segments	1
Number of operating segments	1

Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Premises and equipment [Abstract]
Total premises and equipment	$ 18,451	$ 11,735
Less accumulated depreciation	(3,821)	(2,257)
Premises and equipment, net	14,630	9,478
Leasehold improvements
Premises and equipment [Abstract]
Total premises and equipment	3,700	3,720
Commercial operating lease equipment
Premises and equipment [Abstract]
Total premises and equipment	9,300	2,803
Premises and equipment, net	8,200	2,700
Furniture, fixtures, and equipment
Premises and equipment [Abstract]
Total premises and equipment	3,298	3,698
Construction in progress
Premises and equipment [Abstract]
Total premises and equipment	$ 2,153	$ 1,514

Deposits

12 Months Ended

Dec. 31, 2023

Deposits [Abstract]

Deposits

Major classes of deposits are as follows:


	December 31,
	2023		2022
($ in thousands)
Demand	$	145,544	$	129,563
Savings	8,633		8,289
Money markets	11,661		10,882
Time certificates of deposit	238,995		94,264
Total deposits	$	404,833	$	242,998

The aggregate amount that exceed the $250 thousand insurance limit of time deposits at December 31, 2023 and 2022 were $2.0 million and $1.7 million, respectively.

At December 31, 2023, the scheduled maturities of time deposits are as follows ($ in thousands):


Year Ended December 31, 2024	$	76,322
Year Ended December 31, 2025	11,434
Year Ended December 31, 2026	81,060
Year Ended December 31, 2027	3,049
Year Ended December 31, 2028	66,591
Thereafter	539
Total	$	238,995

Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Federal income tax expense at statutory rates	$ 5,001	$ 7,567
Effect of permanent differences	323	811
State income tax expense, net	991	1,560
Other	38	978
Income tax expense	$ 6,353	$ 10,916

- Definition

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

+ References + Details

Investments - Held-to-Maturity Securities (Details) - USD ($)	Dec. 31, 2023	Jan. 01, 2023	Dec. 31, 2022
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	$ 15,388,000
Amortized cost	15,388,000		$ 14,292,000
Allowance for Credit Losses	0	$ 0	0
Unrealized Gain	4,000		5,000
Unrealized Loss	(1,583,000)		(1,569,000)
Estimated Fair Value	13,809,000		12,728,000
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	6,959,000
Amortized cost			8,087,000
Allowance for Credit Losses	0
Unrealized Gain	0		5,000
Unrealized Loss	(817,000)		(825,000)
Estimated Fair Value	6,142,000		7,267,000
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	8,429,000
Amortized cost			6,205,000
Allowance for Credit Losses	0
Unrealized Gain	4,000		0
Unrealized Loss	(766,000)		(744,000)
Estimated Fair Value	$ 7,667,000		$ 5,461,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Loans Held for Investment and Allowance for Credit Losses - Loans by Origination Year (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 203,741
2022	108,686
2021	26,234
Prior	31,272
Revolving Loans	2,282
Total	372,215	$ 236,601
2023, Writeoff	(4,181)
2022, Writeoff	(6,415)
2021, Writeoff	(1,289)
Prior, Writeoff	(540)
Revolving Loans, Writeoff	0
Writeoff	(12,425)	(12,406)
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	12,919
2022	10,960
2021	4,354
Prior	97
Revolving Loans	0
Total	28,330
2023, Writeoff	0
2022, Writeoff	0
2021, Writeoff	0
Prior, Writeoff	0
Revolving Loans, Writeoff	0
Writeoff	0
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023	25,823
2022	14,858
2021	3,349
Prior	5,149
Revolving Loans	2,249
Total	51,428	37,815
2023, Writeoff	0
2022, Writeoff	(121)
2021, Writeoff	0
Prior, Writeoff	(104)
Revolving Loans, Writeoff	0
Writeoff	(225)	0
Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	278
2022	263
2021	80
Prior	26
Revolving Loans	0
Total	647
2023, Writeoff	0
2022, Writeoff	0
2021, Writeoff	0
Prior, Writeoff	0
Revolving Loans, Writeoff	0
Writeoff	0
Commercial real estate owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	91,392
2022	58,970
2021	13,791
Prior	22,397
Revolving Loans	0
Total	186,550
2023, Writeoff	(318)
2022, Writeoff	(21)
2021, Writeoff	(97)
Prior, Writeoff	(278)
Revolving Loans, Writeoff	0
Writeoff	(714)
Commercial real estate non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	7,187
2022	6,291
2021	1,223
Prior	653
Revolving Loans	0
Total	15,354
2023, Writeoff	0
2022, Writeoff	0
2021, Writeoff	0
Prior, Writeoff	0
Revolving Loans, Writeoff	0
Writeoff	0
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	12,507
2022	5,201
2021	1,508
Prior	2,152
Revolving Loans	31
Total	21,399
2023, Writeoff	(87)
2022, Writeoff	(114)
2021, Writeoff	(122)
Prior, Writeoff	(149)
Revolving Loans, Writeoff	0
Writeoff	(472)
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023	7,816
2022	1,975
2021	637
Prior	559
Revolving Loans	2
Total	10,989	5,808
2023, Writeoff	(3)
2022, Writeoff	(5)
2021, Writeoff	(53)
Prior, Writeoff	(7)
Revolving Loans, Writeoff	0
Writeoff	(68)	(66)
Commercial leases
Financing Receivable, Credit Quality Indicator [Line Items]
2023	31,313
2022	6,559
2021	0
Prior	238
Revolving Loans	0
Total	38,110	9,252
2023, Writeoff	0
2022, Writeoff	0
2021, Writeoff	0
Prior, Writeoff	0
Revolving Loans, Writeoff	0
Writeoff	0	0
Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2023	14,506
2022	3,609
2021	1,292
Prior	1
Revolving Loans	0
Total	19,408	24,259
2023, Writeoff	(3,773)
2022, Writeoff	(6,154)
2021, Writeoff	(1,017)
Prior, Writeoff	(2)
Revolving Loans, Writeoff	0
Writeoff	(10,946)	(11,948)
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total		211,319
Pass \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	12,919
2022	10,345
2021	4,354
Prior	97
Revolving Loans	0
Total	27,715
Pass \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023	2,209
2022	874
2021	1,480
Prior	2,947
Revolving Loans	2,249
Total	9,759	37,815
Pass \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	278
2022	263
2021	80
Prior	0
Revolving Loans	0
Total	621
Pass \| Commercial real estate owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	12,566
2022	1,234
2021	854
Prior	12,207
Revolving Loans	0
Total	26,861
Pass \| Commercial real estate non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	2,805
2022	1,294
2021	0
Prior	419
Revolving Loans	0
Total	4,518
Pass \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	2,090
2022	601
2021	744
Prior	821
Revolving Loans	31
Total	4,287
Pass \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023	7,792
2022	1,975
2021	637
Prior	558
Revolving Loans	2
Total	10,964	5,808
Pass \| Commercial leases
Financing Receivable, Credit Quality Indicator [Line Items]
2023	31,313
2022	6,559
2021	0
Prior	238
Revolving Loans	0
Total	38,110	9,252
Pass \| Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Watch \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Watch \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023	23,614
2022	12,399
2021	1,661
Prior	2,035
Revolving Loans	0
Total	39,709
Watch \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	26
Revolving Loans	0
Total	26
Watch \| Commercial real estate owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	62,360
2022	53,832
2021	11,871
Prior	7,654
Revolving Loans	0
Total	135,717
Watch \| Commercial real estate non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	4,382
2022	2,635
2021	1,223
Prior	234
Revolving Loans	0
Total	8,474
Watch \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	10,157
2022	4,600
2021	764
Prior	930
Revolving Loans	0
Total	16,451
Watch \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023	24
2022	0
2021	0
Prior	1
Revolving Loans	0
Total	25
Watch \| Commercial leases
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Watch \| Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total		573
Special Mention \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Special Mention \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	208
Prior	11
Revolving Loans	0
Total	219	0
Special Mention \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Special Mention \| Commercial real estate owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	192
2021	0
Prior	1,498
Revolving Loans	0
Total	1,690
Special Mention \| Commercial real estate non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Special Mention \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	8
Revolving Loans	0
Total	8
Special Mention \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0	0
Special Mention \| Commercial leases
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0	$ 0
Special Mention \| Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Substandard \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	615
2021	0
Prior	0
Revolving Loans	0
Total	615
Substandard \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	1,585
2021	0
Prior	156
Revolving Loans	0
Total	1,741
Substandard \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Substandard \| Commercial real estate owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	16,466
2022	3,712
2021	1,066
Prior	1,038
Revolving Loans	0
Total	22,282
Substandard \| Commercial real estate non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	2,362
2021	0
Prior	0
Revolving Loans	0
Total	2,362
Substandard \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	260
2022	0
2021	0
Prior	393
Revolving Loans	0
Total	653
Substandard \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Substandard \| Commercial leases
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Substandard \| Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0
2022	0
2021	0
Prior	0
Revolving Loans	0
Total	0
Not Rated \| Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2023	14,506
2022	3,609
2021	1,292
Prior	1
Revolving Loans	0
Total	$ 19,408

Commitments and Contingent Liabilities - Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	$ 19,775	$ 19,822
Commercial real estate
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	17,421	17,886
Revolving, open-end lines of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	1,630	1,683
Other unused commitments
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	$ 724	$ 253

Condensed Financial Statements of Parent - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net Income	$ 17,460	$ 25,115
Adjustments to reconcile net income to net cash from operating activities
Change in fair value of BFG	600	478
Stock-based compensation expense	2,046	778
Deferred income tax expense	1,915	656
Net changes in:
Other assets	(6,448)	(299)
Other liabilities	8,544	(1,847)
Net cash provided by operating activities	12,265	61,153
Cash flows from investing activities:
Net cash used in investing activities	(152,870)	(35,834)
Cash flows from financing activities:
Proceeds from exercise of stock options	44	260
Common stock repurchased	(4,741)	(1,136)
Net cash provided by (used in) financing activities	157,013	(10,506)
Net change in cash and cash equivalents	16,408	14,813
Cash and cash equivalents, beginning of the period	100,567	85,754
Cash and cash equivalents, end of the period	116,975	100,567
Parent Company
Cash flows from operating activities:
Net Income	17,461	25,115
Adjustments to reconcile net income to net cash from operating activities
Change in fair value of BFG	600	1,100
Stock-based compensation expense	2,046	778
Deferred income tax expense	(61)	(45)
Net changes in:
Income tax payable (receivable)	(1,905)	844
Other assets	(4)	285
Other liabilities	760	(296)
Net cash provided by operating activities	18,897	27,781
Cash flows from investing activities:
Investment in subsidiary bank	(21,992)	(29,090)
Investment in FinWise Investments, LLC	(19)	(191)
Net cash used in investing activities	(22,011)	(29,281)
Cash flows from financing activities:
Proceeds from exercise of stock options	44	260
Common stock repurchased	(4,741)	1,136
Net cash provided by (used in) financing activities	(4,697)	(876)
Net change in cash and cash equivalents	(7,811)	(2,376)
Cash and cash equivalents, beginning of the period	36,321	38,697
Cash and cash equivalents, end of the period	$ 28,510	$ 36,321

Investment in Business Funding Group, LLC	12 Months Ended
Investment in Business Funding Group, LLC	Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Investment in Business Funding Group, LLC	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 4.7% of the aggregate membership interests of BFG and Class B Non-Voting Units representing 5.3% 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 $0.7 million and $0.5 million for the year ended December 31, 2023 and 2022, respectively. These distributions were recorded in the Consolidated Income Statement as non-interest income. On March 31, 2020, the Company entered into an agreement with BFG whereby the Company has the right of first refusal to purchase additional interests in BFG from any selling members. Additionally, the Company was granted an option to purchase all, but not less than all, of the interests in BFG from the remaining members for an earnings multiple between 10 times and 15 times net profit based on the fiscal year ended immediately prior to the exercise of the option. The option period begins on January 1, 2021 and expires on January 1, 2028. In consideration of granting the first right of refusal and the option, BFG members received 270,000 warrants in the aggregate. The warrants have an exercise price of $6.67 per share and the warrants expire on March 31, 2028. The warrants are free-standing equity instruments and, as a result, are classified within equity at the fair value on the issuance date. The fair value of the warrants was determined by our board of directors with input from management, relying in part upon valuation reports prepared by a third-party valuation firm using a Black-Scholes option pricing model adjusted for a lack of marketability since the Company’s stock was not publicly traded at that time. The resulting fair value of the warrants was $0.19 per share. On July 25, 2023, the Company entered into a Membership Purchase Agreement, as amended (the "Purchase Agreement") with BFG and four members of BFG ("Sellers"). Pursuant to the Purchase Agreement, the Company acquired an additional 10% non-voting ownership interest in BFG (the "Transaction"). On February 5, 2024, the Transaction was consummated and the Company issued in the aggregate 339,176 shares of Common Stock of the Company, par value $0.001 per share, in a private placement to the Sellers in exchange for their 10% aggregate non-voting ownership interest in BFG. When combined with the Company’s existing 5.3% non-voting ownership interest in BFG and, the Company's existing 4.7% voting ownership interest, the Company has a 20% ownership interest in BFG, comprising a 4.7% voting ownership interest and a 15.3% non-voting ownership interest. For further discussion on the Company’s investment in BFG, see Note 13 Related Parties and Note 19 Subsequent Events.

Loans Held for Investment and Allowance for Credit Losses - Loans Summarized to Major Risk Category (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	$ (12,888)	$ (11,985)	$ (9,855)
Net loans	358,560	224,217
Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	372,215	236,601
Deferred loan fees, net	(767)	(399)
Allowance for credit losses	(12,888)	(11,985)
Net loans	358,560	224,217
SBA
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses			(2,739)
SBA \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	239,922	145,172
Allowance for credit losses		(4,294)
SBA \| Financing Receivable, Incurred Loss Methodology \| SBA
Loans and Leases Receivable Disclosure [Line Items]
Total loans	131,700	49,500
Commercial leases
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(355)	(339)	(56)
Commercial leases \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	38,110	9,252
Allowance for credit losses		(345)
Commercial, non-real estate
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses			(76)
Commercial, non-real estate \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	2,457	2,232
Allowance for credit losses		(56)
Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(956)	(876)	(352)
Residential real estate \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	38,123	37,815
Allowance for credit losses		(497)
Strategic Program loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans	66,922	47,848
Allowance for credit losses	(7,065)	(6,701)	(6,549)
Strategic Program loans \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	19,408	24,259
Allowance for credit losses		(6,701)
Owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(3,336)	(3,030)
Owner occupied \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	20,798	8,733
Non-owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(282)	(208)
Non-owner occupied \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	2,025	3,330
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(211)	(65)	$ (62)
Consumer \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 11,372	5,808
Allowance for credit losses		$ (65)

Loans Held for Investment and Allowance for Credit Losses - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Total allowance for loan losses
Beginning Balance	$ 11,985	$ 9,855
Provision (Reversal) of Credit Losses	11,525	13,519
Charge-Offs	(12,425)	(12,406)
Recoveries	1,546	1,017
Ending Balance	12,888	11,985
Unfunded lending commitments
Beginning Balance	0
Provision for Credit Losses	113
Charge-Offs	0
Recoveries	0
Ending Balance	139	0
Total allowance for credit losses
Beginning Balance	11,985
Provision for Credit Losses	11,638
Charge-Offs	(12,425)
Recoveries	1,546
Ending Balance	13,027	11,985
Previously Reported
Total allowance for loan losses
Beginning Balance	11,985
Ending Balance		11,985
Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	257
Ending Balance		257
Unfunded lending commitments
Beginning Balance	26
Ending Balance		26
Total allowance for credit losses
Beginning Balance	283
Ending Balance	300	283
SBA
Total allowance for loan losses
Beginning Balance		2,739
Provision (Reversal) of Credit Losses		1,881
Charge-Offs		(392)
Recoveries		66
SBA \| Previously Reported
Total allowance for loan losses
Beginning Balance	4,294
Ending Balance		4,294
Commercial leases
Total allowance for loan losses
Beginning Balance	339	56
Provision (Reversal) of Credit Losses	121	289
Charge-Offs	0	0
Recoveries	0	0
Ending Balance	355	339
Commercial leases \| Previously Reported
Total allowance for loan losses
Beginning Balance	345
Ending Balance		345
Commercial leases \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	(105)
Ending Balance		(105)
Construction and land development
Total allowance for loan losses
Beginning Balance	424
Provision (Reversal) of Credit Losses	(41)
Charge-Offs	0
Recoveries	0
Ending Balance	316	424
Construction and land development \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	(67)
Ending Balance		(67)
Commercial, non-real estate
Total allowance for loan losses
Beginning Balance		76
Provision (Reversal) of Credit Losses		(22)
Charge-Offs		0
Recoveries		2
Commercial, non-real estate \| Previously Reported
Total allowance for loan losses
Beginning Balance	56
Ending Balance		56
Residential real estate
Total allowance for loan losses
Beginning Balance	876	352
Provision (Reversal) of Credit Losses	273	145
Charge-Offs	(225)	0
Recoveries	90	0
Ending Balance	956	876
Residential real estate \| Previously Reported
Total allowance for loan losses
Beginning Balance	497
Ending Balance		497
Residential real estate \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	(58)
Ending Balance		(58)
Residential real estate multifamily
Total allowance for loan losses
Beginning Balance	3
Provision (Reversal) of Credit Losses	2
Charge-Offs	0
Recoveries	0
Ending Balance	6	3
Residential real estate multifamily \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	1
Ending Balance		1
Owner occupied
Total allowance for loan losses
Beginning Balance	3,030
Provision (Reversal) of Credit Losses	1,551
Charge-Offs	(714)
Recoveries	1
Ending Balance	3,336	3,030
Owner occupied \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	(532)
Ending Balance		(532)
Non-owner occupied
Total allowance for loan losses
Beginning Balance	208
Provision (Reversal) of Credit Losses	(262)
Charge-Offs	0
Recoveries	378
Ending Balance	282	208
Non-owner occupied \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	(42)
Ending Balance		(42)
Commercial real estate
Total allowance for loan losses
Beginning Balance		21
Provision (Reversal) of Credit Losses		6
Charge-Offs		0
Recoveries		0
Commercial real estate \| Previously Reported
Total allowance for loan losses
Beginning Balance	27
Ending Balance		27
Commercial and industrial
Total allowance for loan losses
Beginning Balance	339
Provision (Reversal) of Credit Losses	558
Charge-Offs	(472)
Recoveries	21
Ending Balance	361	339
Commercial and industrial \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	(85)
Ending Balance		(85)
Consumer
Total allowance for loan losses
Beginning Balance	65	62
Provision (Reversal) of Credit Losses	198	5
Charge-Offs	(68)	(66)
Recoveries	2	64
Ending Balance	211	65
Consumer \| Previously Reported
Total allowance for loan losses
Beginning Balance	65
Ending Balance		65
Consumer \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	14
Ending Balance		14
Strategic Program loans
Total allowance for loan losses
Beginning Balance	6,701	6,549
Provision (Reversal) of Credit Losses	9,124	11,215
Charge-Offs	(10,946)	(11,948)
Recoveries	1,054	885
Ending Balance	7,065	6,701
Strategic Program loans \| Previously Reported
Total allowance for loan losses
Beginning Balance	6,701
Ending Balance		6,701
Strategic Program loans \| Impact of ASU 2016-13 adoption
Total allowance for loan losses
Beginning Balance	$ 1,131
Ending Balance		$ 1,131

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Subsequent events are events or transactions that occur after the date of the most recent balance sheet but before the financial statements are available to be issued. The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing of the financial statements. The Company’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the date of the balance sheet and before the financial statements are available to be issued. The Company has evaluated subsequent events through March 25, 2024, which is the date the consolidated financial statements are available to be issued. On February 5, 2024, the Transaction was consummated and the Company issued in the aggregate 339,176 shares of Common Stock of the Company, par value $0.001 per share, in a private placement to the Sellers in exchange for their 10% aggregate non-voting ownership interest in BFG. On March 7, 2024, the Company announced that its Board of Directors (the “Board”) has authorized, effective March 6, 2024, a common stock repurchase program to purchase up to 641,832 shares of the Company’s common stock in the aggregate. The repurchase program expires on March 31, 2026, but may be limited or terminated at any time without prior notice. The repurchase program authorizes the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or privately negotiated transactions. The authorization permits management to repurchase shares of the Company’s common stock from time to time at management’s discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The actual means and timing of any shares purchased under the program will depend on a variety of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares.

SBA Servicing Asset - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Transfers and Servicing [Abstract]
SBA loans serviced for others	$ 253.2	$ 318.6
SBA servicing asset	$ 4.2	$ 5.2
Weighted average prepayment rate	18.20%	14.20%
Weighted average term	3 years 8 months 19 days	4 years 5 months 12 days
Weighted average discount rate	15.40%	18.80%

Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Financial Instruments with Off-Balance Sheet Risk

At December 31, 2023 and December 31, 2022, financial instruments with off-balance-sheet risk were as follows:


	December 31,		December 31,
($ in thousands)	2023		2022
Revolving, open-end lines of credit	$	1,630	$	1,683
Commercial real estate	17,421		17,886
Other unused commitments	724		253
	$	19,775	$	19,822

Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
Year Ended December 31, 2024	$ 76,322
Year Ended December 31, 2025	11,434
Year Ended December 31, 2026	81,060
Year Ended December 31, 2027	3,049
Year Ended December 31, 2028	66,591
Thereafter	539
Time certificates of deposit	$ 238,995	$ 94,264

SBA Servicing Asset

12 Months Ended

Dec. 31, 2023

Transfers and Servicing [Abstract]

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 $253.2 million and $318.6 million at December 31, 2023 and 2022, respectively.

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


	For the Years Ended December 31,
($ in thousands)	2023		2022
Beginning balance	$	5,210	$	3,938
Additions to servicing asset	150		4,087
Recovery (impairment) of SBA servicing asset	376		(1,728)
Amortization of servicing asset	(1,505)		(1,087)
Ending balance	$	4,231	$	5,210

The fair market value of the SBA servicing asset as of December 31, 2023 and December 31, 2022, was $4.2 million and $5.2 million, respectively. Recovery or impairment adjustments to servicing rights are mainly due to market-based assumptions associated with discounted cash flows, loan prepayment speeds, and changes in interest rates. A significant change in prepayments of the loans in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of servicing rights.

The Company assumed a weighted average prepayment rate of 18.2%, weighted average term of 3.72 years, and a weighted average discount rate of 15.4% at December 31, 2023.

The Company assumed a weighted average prepayment rate of 14.2%, weighted average term of 4.45 years, and a weighted average discount rate of 18.8% at December 31, 2022.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(7)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
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-Paragraph 3
-Subparagraph (a)(4)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(5)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 3
-Subparagraph (cc)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 4
-Subparagraph (a)(5)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
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-Publisher FASB
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
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-Publisher FASB
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Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
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-Publisher FASB
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Section 50
-Paragraph 4
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

+ Details

Capital Requirements

12 Months Ended

Dec. 31, 2023

Capital Requirements [Abstract]

Capital Requirements

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

Beginning January 1, 2020, the Bank qualified and elected to use the community bank leverage ratio (CBLR) framework for quantitative measures which requires the Bank to maintain minimum amounts and ratios of Tier 1 capital to average total consolidated assets. Management believes, as of December 31, 2023 and December 31, 2022, that the Bank meets all capital adequacy requirements to which it is subject.

As of December 31, 2023 and December 31, 2022, the most recent notification from the FDIC categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action (there are no conditions or events since that notification that management believes have changed the Bank’s category). The following table sets forth the actual capital amounts and ratios for the Bank and the minimum ratio and amount of capital required to be categorized as well-capitalized and adequately capitalized as of the dates indicated.

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


	Actual				Well-Capitalized Requirement
($ in thousands)	Amount		Ratio		Amount		Ratio
December 31, 2023
Leverage ratio (CBLR election)	$	116,108	20.7	%	$	50,441	9.0	%
December 31, 2022
Leverage ratio (CBLR election)	$	91,674	25.1	%	$	32,898	9.0	%

Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits. The Bank had no reserve requirements as of December 31, 2023 and December 31, 2022.

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

Shareholders' Equity (Details) - USD ($) $ in Thousands	12 Months Ended		17 Months Ended
Shareholders' Equity (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Aug. 16, 2022
Equity [Abstract]
Common stock repurchase program, shares authorized to be purchases (in shares)		644,241		644,241
Common stock repurchased (in shares)			644,241
Common stock repurchased, value	$ 4,741	$ 1,136	$ 5,900

- Definition

+ References + Details

- Definition

+ References + Details

Retirement Plan (Details) - 401(K) Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Defined Contribution Plan Disclosure [Line Items]
Minimum age of employees to participate in plan	21 years
Minimum required service period to participate in plan	1 year
Profit sharing contributions	$ 0.6	$ 0.5

Related Parties	12 Months Ended
Related Parties	Dec. 31, 2023
Related Party Transactions [Abstract]
Related Parties	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 de minimis loans outstanding to related parties as of December 31, 2023 and December 31, 2022. Total deposits from certain executive officers and directors and the companies with which they are associated were $1.5 million and $1.2 million as of December 31, 2023 and December 31, 2022, respectively. On October 21, 2022, Mr. Alan Weichselbaum, who was elected as a director of the Company on October 6, 2022, repaid in full the $0.1 million aggregate principal amount plus interest owed under a secured promissory note, dated as of June 1, 2022 (the “2022 Note”), between the Company and Mr. Weichselbaum in accordance with the terms of the 2022 Note. As such, the obligations of the parties under the 2022 Note and a related security agreement were discharged and the 2022 Note and the security agreement were terminated. BFG is a small business loan broker, primarily under the SBA’s 7(a) loan program. As noted in Note 8 Investments above, the Company has a 10% ownership in the outstanding membership units of BFG, as of December 31, 2023. 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.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - Stock options	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	3.68%	3.10%
Expected term in years	6 years
Expected volatility	44.20%
Expected dividend yield	0.00%	0.00%
Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years		5 years 6 months
Expected volatility		45.80%
Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected term in years		6 years 6 months
Expected volatility		46.70%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Subsequent Events (Details)	Feb. 05, 2024 $ / shares shares	Dec. 31, 2019 $ / shares shares	Mar. 07, 2024 shares	Feb. 04, 2024	Dec. 31, 2023 $ / shares	Dec. 31, 2022 $ / shares shares	Aug. 16, 2022 shares
Subsequent Event [Line Items]
Common stock, par value (in dollars per share) \| $ / shares					$ 0.001	$ 0.001
Common stock repurchase program, shares authorized to be purchases (in shares)						644,241	644,241
Subsequent Event
Subsequent Event [Line Items]
Common stock repurchase program, shares authorized to be purchases (in shares)			641,832
Business Funding Group, LLC
Subsequent Event [Line Items]
Aggregate value of shares exchanged (in shares)		950,784
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001
Business Funding Group, LLC \| Subsequent Event
Subsequent Event [Line Items]
Additional interest acquired				0.10
Business Funding Group, LLC \| Subsequent Event \| Private Placement
Subsequent Event [Line Items]
Aggregate value of shares exchanged (in shares)	339,176
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001

Income Taxes - Components Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Current tax expense
Federal	$ 3,446	$ 8,315
State	992	1,945
Deferred tax expense
Federal	1,614	553
State	301	103
Income tax expense	$ 6,353	$ 10,916

- Definition

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

+ References + Details

Condensed Financial Statements of Parent

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements of Parent

Financial information pertaining only to FinWise Bancorp, on a parent-only basis, is as follows as of and for the years ended December 31, 2023 and 2022:

Balance Sheets


	December 31,
($ in thousands)	2023		2022
ASSETS
Cash and cash equivalents	$	28,510	$	36,321
Investment in subsidiary bank	122,055		100,276
Investment in Business Funding Group (BFG), at fair value	4,200		4,800
Investment in FinWise Investments, LLC	290		271
Deferred taxes, net	188		127
Income taxes receivable	828		—
Other assets	41		37
Total assets	$	156,112	$	141,832
LIABILITIES AND SHAREHOLDERS’ EQUITY
Income taxes payable	—		1,077
Other liabilities	1,056		296
Shareholders’ equity	155,056		140,459
Total liabilities and shareholders’ equity	$	156,112	$	141,832

Statement of Income


	For the Years Ended December 31,
($ in thousands)	2023		2022
Non-interest income
Change in fair value on investment in BFG	$	(600)	$	(1,100)
Equity in undistributed earnings of subsidiary	21,992		29,090
Other miscellaneous income	685		622
Total non-interest income	22,077		28,612
Non-interest expense
Salaries and employee benefits	3,565		2,316
Professional services	1,765		1,990
Other operating expenses	860		470
Total non-interest expense	6,190		4,776
Income before income tax expense	15,887		23,836
Income tax benefit	(1,574)		(1,279)
Net income	$	17,461	$	25,115

Statements of Cash Flows


	For the Years Ended December 31,
($ in thousands)	2023		2022
Cash flows from operating activities:
Net income	$	17,461	$	25,115
Adjustments to reconcile net income to net cash from operating activities
Change in fair value of BFG	600		1,100
Stock-based compensation expense	2,046		778
Deferred income tax expense	(61)		(45)
Net changes in:
Income tax payable (receivable)	(1,905)		844
Other assets	(4)		285
Other liabilities	760		(296)
Net cash provided by operating activities	18,897		27,781
Cash flows from investing activities:
Investment in subsidiary bank	(21,992)		(29,090)
Investment in FinWise Investments, LLC	(19)		(191)
Net cash used in investing activities	(22,011)		(29,281)
Cash flows from financing activities:
Proceeds from exercise of stock options	44		260
Common stock repurchased	(4,741)		(1,136)
Net cash used in financing activities	(4,697)		(876)
Net change in cash and cash equivalents	(7,811)		(2,376)
Cash and cash equivalents, beginning of year	36,321		38,697
Cash and cash equivalents, end of year	$	28,510	$	36,321

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted EPS

The following table is a reconciliation of the components used to derive basic and diluted EPS for the years ended December 31, 2023 and 2022 ($ in thousands, except share and per share amounts):


	For the Years Ended December 31,
($ in thousands)	2023		2022
Numerator:
Net income	$	17,460	$	25,115
Amount allocated to participating common shareholders(1)	(288)		(193)
Net income allocate to common shareholders	$	17,172	$	24,922
Denominator:
Weighted average shares outstanding, basic	12,488,564		12,729,898
Weighted average effect of dilutive securities:
Stock options	343,642		508,056
Warrants	77,442		119,068
Weighted average shares outstanding, diluted	12,909,648		13,357,022
Earnings per share, basic	$	1.38	$	1.96
Earnings per share, diluted	$	1.33	$	1.87

SBA Servicing Asset (Tables)

12 Months Ended

Dec. 31, 2023

Transfers and Servicing [Abstract]

SBA Servicing Asset Activity

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


	For the Years Ended December 31,
($ in thousands)	2023		2022
Beginning balance	$	5,210	$	3,938
Additions to servicing asset	150		4,087
Recovery (impairment) of SBA servicing asset	376		(1,728)
Amortization of servicing asset	(1,505)		(1,087)
Ending balance	$	4,231	$	5,210

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Option Activity

The following summarizes stock option activity for the years ended December 31, 2023 and 2022:


	Stock Options	Weighted Average Exercise Price		Weighted Average 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	(56,280)	4.62		—	393,534
Options forfeited	(13,998)	4.40		0	124,874
Outstanding at December 31, 2022	881,625	$	5.27	7.5	$	3,871,667
Options granted	126,406	8.64		9.9	—
Options exercised	(17,640)	2.45		—	120,229
Options forfeited	(8,903)	9.52		—	12,089
Outstanding at December 31, 2023	981,488	$	5.72	6.9	$	8,429,619
Options vested and exercisable at December 31, 2023	716,175	$	4.75	6.4	$	6,847,964

Restricted Stock Awards Activities

Non-vested restricted stock for the years ended December 31, 2023, and 2022 is summarized in the following table:


	Number of Shares	Weighted Average Grant Price
Unvested as of December 31, 2021	—	$	—
Granted	123,055	12.28
Unvested as of December 31, 2022	123,055	$	12.28
Granted	168,821	8.63
Vested	(92,668)	10.43
Unvested as of December 31, 2023	199,208	$	10.05

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

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


	For the Years Ended December 31,
($ in thousands)	2023		2022
Pre-tax
Stock options	$	493	$	320
Restricted shares	1,553		458
Total	$	2,046	$	778
After-tax
Stock options	$	477	$	312
Restricted shares	1,166		344
Total	$	1,644	$	656

Income Taxes - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Interest or penalties	$ 0.3
Unrecognized tax benefits	$ 0.0	$ 0.0

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Federal Home Loan Bank Secured Line of Credit

As of December 31, 2023 and December 31, 2022, the Bank’s available line of credit with the FHLB to borrow in overnight funds was $30.5 million and $2.6 million, respectively. All borrowings are short-term and the interest rate is equal to the correspondent bank’s daily federal funds purchase rate. As of December 31, 2023 and December 31, 2022, no amounts were outstanding under the line of credit. Loans totaling $46.9 million and $4.0 million were pledged to secure the FHLB line of credit as of December 31, 2023 and December 31, 2022, respectively.

Lines of Credit

At December 31, 2023 and December 31, 2022, the Bank had the ability to access $11.4 million and $10.6 million from the Federal Reserve Bank’s Discount Window on a collateralized basis. At December 31, 2023, the Bank had the ability to access $0.8 million from the Federal Reserve Bank’s Bank Term Funding Program on a collateralized basis. Through Zions Bank, the Bank had an available unsecured line available of $5.0 million and $1.0 million at December 31, 2023 and December 31, 2022. The Bank had an available line of credit with Bankers’ Bank of the West to borrow up to $1.1 million in overnight funds at December 31, 2023 and December 31, 2022. The Bank had no outstanding balances on such unsecured or secured lines of credit as of December 31, 2023 and December 31, 2022.

Paycheck Protection Program Liquidity Facility

On April 20, 2020, the Bank was approved by the Federal Reserve to access its SBA Paycheck Protection Program Liquidity Facility (“PPPLF”) through the discount window. The PPPLF enables the Company to fund Paycheck Protection Program ("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 $0.2 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at December 31, 2023. The Bank pledged $0.3 million of PPP loans as eligible collateral under the PPPLF borrowing arrangement at December 31, 2022. The average outstanding borrowings were $0.3 million during the year ended December 31, 2023 and $0.6 million during the year ended December 31, 2022.

Commitments to Extend Credit

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

At December 31, 2023 and December 31, 2022, financial instruments with off-balance-sheet risk were as follows:


	December 31,		December 31,
($ in thousands)	2023		2022
Revolving, open-end lines of credit	$	1,630	$	1,683
Commercial real estate	17,421		17,886
Other unused commitments	724		253
	$	19,775	$	19,822

Allowance for Credit Losses on Unfunded Commitments

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $0.1 million as of December 31, 2023.

Loans Held for Investment and Allowance for Credit Losses - Collateral-Dependent Financial Loans (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	$ 12,888,000	$ 11,985,000	$ 9,855,000
Retained Strategic Program loans	372,215,000	236,601,000
Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	45,000
Retained Strategic Program loans	26,487,000
Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	26,205,000
Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	282,000
Construction and land development
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	316,000	424,000
Retained Strategic Program loans	28,330,000
Construction and land development \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0
Retained Strategic Program loans	615,000
Construction and land development \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	615,000
Construction and land development \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	0
Residential real estate \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0
Retained Strategic Program loans	1,585,000
Residential real estate \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	1,585,000
Residential real estate \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	0
Commercial real estate \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans		1,426,000
Commercial real estate \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans		1,426,000
Commercial real estate \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans		0
Owner occupied
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	3,336,000	3,030,000
Retained Strategic Program loans	186,550,000
Owner occupied \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	45,000
Retained Strategic Program loans	21,643,000
Owner occupied \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	21,643,000
Owner occupied \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	0
Non-owner occupied
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	282,000	208,000
Retained Strategic Program loans	15,354,000
Non-owner occupied \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0
Retained Strategic Program loans	2,362,000
Non-owner occupied \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	2,362,000
Non-owner occupied \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	0
Commercial and industrial
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	361,000	339,000
Retained Strategic Program loans	21,399,000
Commercial and industrial \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0
Retained Strategic Program loans	282,000
Commercial and industrial \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	0
Commercial and industrial \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	282,000
SBA
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses			$ 2,739,000
Retained Strategic Program loans		145,172,000
SBA \| SBA
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans		300,000
SBA \| Total \| SBA
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	$ 15,000,000	$ 1,100,000

Loans Held for Investment and Allowance for Credit Losses - Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	$ 372,215	$ 236,601
Non-Accrual Loans with no ACL	25,872
Non-Accrual Loans with ACL	640
Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	26,487
Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		236,601
Non-Accrual Loans with ACL		0
Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	341,558
Current Loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		232,523
Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	4,145
Total \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		4,078
30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	3,705
30-89 Days Past Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		3,083
60-89 Days Due Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		802
90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	440
90 Days and Greater \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		193
Construction and land development
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	28,330
Non-Accrual Loans with no ACL	0
Non-Accrual Loans with ACL	0
Construction and land development \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	615
Construction and land development \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	26,385
Construction and land development \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	1,945
Construction and land development \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	1,648
Construction and land development \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	297
Residential real estate
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	51,428	37,815
Non-Accrual Loans with no ACL	1,585
Non-Accrual Loans with ACL	0
Residential real estate \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		37,815
Non-Accrual Loans with ACL		0
Residential real estate \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	49,820
Residential real estate \| Current Loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		37,387
Residential real estate \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	23
Residential real estate \| Total \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		428
Residential real estate \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	23
Residential real estate \| 30-89 Days Past Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		428
Residential real estate \| 60-89 Days Due Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Residential real estate \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Residential real estate \| 90 Days and Greater \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Residential real estate multifamily
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	647
Non-Accrual Loans with no ACL	0
Non-Accrual Loans with ACL	0
Residential real estate multifamily \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	647
Residential real estate multifamily \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Residential real estate multifamily \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Residential real estate multifamily \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Owner occupied
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	186,550
Non-Accrual Loans with no ACL	21,643
Non-Accrual Loans with ACL	640
Owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	21,643
Owner occupied \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	164,267
Owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Owner occupied \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Owner occupied \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Non-owner occupied
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	15,354
Non-Accrual Loans with no ACL	2,362
Non-Accrual Loans with ACL	0
Non-owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	2,362
Non-owner occupied \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	12,992
Non-owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Non-owner occupied \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Non-owner occupied \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Commercial real estate
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		12,063
Commercial real estate \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		12,063
Non-Accrual Loans with ACL		0
Commercial real estate \| Current Loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		12,063
Commercial real estate \| Total \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial real estate \| 30-89 Days Past Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial real estate \| 60-89 Days Due Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial real estate \| 90 Days and Greater \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	21,399
Non-Accrual Loans with no ACL	282
Non-Accrual Loans with ACL	0
Commercial and industrial \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	282
Commercial and industrial \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	21,117
Commercial and industrial \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Commercial and industrial \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Commercial and industrial \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Consumer
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	10,989	5,808
Non-Accrual Loans with no ACL	0
Non-Accrual Loans with ACL	0
Consumer \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		5,808
Non-Accrual Loans with ACL		0
Consumer \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	10,860
Consumer \| Current Loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		5,776
Consumer \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	128
Consumer \| Total \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		32
Consumer \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	81
Consumer \| 30-89 Days Past Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		32
Consumer \| 60-89 Days Due Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Consumer \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	47
Consumer \| 90 Days and Greater \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial leases
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	38,110
Non-Accrual Loans with no ACL	0
Non-Accrual Loans with ACL	0
Commercial leases \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	38,110
Commercial leases \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Commercial leases \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Commercial leases \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	0
Strategic Program loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	19,408	24,259
Non-Accrual Loans with no ACL	0
Non-Accrual Loans with ACL	0
Strategic Program loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		24,259
Non-Accrual Loans with ACL		0
Strategic Program loans \| Current Loans
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	17,359
Strategic Program loans \| Current Loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		22,080
Strategic Program loans \| Total
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	2,049
Strategic Program loans \| Total \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		2,179
Strategic Program loans \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	1,953
Strategic Program loans \| 30-89 Days Past Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		1,184
Strategic Program loans \| 60-89 Days Due Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		802
Strategic Program loans \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	96
Strategic Program loans \| 90 Days and Greater \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		193
SBA
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		145,172
SBA \| SBA
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		300
SBA \| Total \| SBA
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	15,000	1,100
SBA \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		145,172
Non-Accrual Loans with ACL		0
SBA \| Current Loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		143,733
SBA \| Total \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		1,439
SBA \| 30-89 Days Past Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		1,439
SBA \| 60-89 Days Due Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
SBA \| 90 Days and Greater \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial leases
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA	$ 38,110	9,252
Commercial leases \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		9,252
Non-Accrual Loans with ACL		0
Commercial leases \| Current Loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		9,252
Commercial leases \| Total \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial leases \| 30-89 Days Past Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial leases \| 60-89 Days Due Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial leases \| 90 Days and Greater \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial, non-real estate
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		2,232
Commercial, non-real estate \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		2,232
Non-Accrual Loans with ACL		0
Commercial, non-real estate \| Current Loans \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		2,232
Commercial, non-real estate \| Total \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial, non-real estate \| 30-89 Days Past Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial, non-real estate \| 60-89 Days Due Due \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		0
Commercial, non-real estate \| 90 Days and Greater \| Financing Receivable, Incurred Loss Methodology
Financing Receivable, Past Due [Line Items]
Amount of loans guaranteed by SBA		$ 0