0001856365-25-000006 | 10-K | XBRL Viewer

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SBA Servicing Asset, Net - Summary of SBA Servicing Asset Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of period	$ 4,231	$ 5,210
Additions to servicing asset	269	150
Amortization of servicing asset	(2,092)	(1,505)
Change in valuation allowance	865	376
Balance at end of period	3,273	4,231
SBA servicing asset, fair value	$ 3,273	$ 4,231

Derivatives and Hedging Activities - Offsetting Derivative Assets (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Assets	$ 509
Gross Amounts Offset in the Statement of Financial Position	0
Net Amounts of Assets presented in the Statement of Financial Position	509
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received	0
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount	$ 509

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2024	Mar. 20, 2025	Jun. 30, 2024
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
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			$ 110.7
Entity Common Stock, Shares Outstanding		13,216,440
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 2025 Annual Meeting of Shareholders, 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, 2024.
Entity Central Index Key	0001856365
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Amendment Flag	false

Fair Value of Financial Instruments - Quantitative Information for Level 3 Fair Value Measurements (Details) - Level 3 $ in Thousands	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 35,723	$ 27,127
Market comparable \| Discount to appraisal value for estimated selling costs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Range (Weighted Average)	0.1140	0.0757

Loans

12 Months Ended

Dec. 31, 2024

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans held-for-investment outstanding by general ledger classification as of December 31, 2024 and December 31, 2023, consisted of the following:


	December 31,		December 31,
	2024		2023
($ in thousands)
SBA(1)	$	255,056	$	239,922
Commercial leases	70,153		38,110
Commercial, non-real estate	3,691		2,457
Residential real estate	51,574		38,123
Strategic Program loans	20,122		19,408
Commercial real estate:
Owner occupied	41,046		20,798
Non-owner occupied	1,379		2,025
Consumer	22,212		11,372
Total loans held-for-investment, gross	$	465,233	$	372,215
Deferred loan fees, net	(4,245)		(767)
Allowance for credit losses	(13,176)		(12,888)
Loans held-for-investment, net	$	447,812	$	358,560

(1) Included in the SBA loans held-for-investment above are $158.7 million and $131.7 million of loans guaranteed by the SBA as of December 31, 2024 and December 31, 2023, respectively.

The Bank sells participation interests in some loans it originates and may acquire a participation interest in loans originated by others. All reported amounts reflect only the Bank’s ownership interest in the loans.

Strategic Program Loans – The Company originates loans with various third-party loan origination platforms that use technology and other innovative systems to streamline the origination of unsecured and secured consumer and business loans to a wide array of borrowers within certain approved credit profiles. Loans issued by the Company through these programs 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 provider or another investor. Interest income is earned by the Company while holding the loans. These loans are classified as held-for-sale on the balance sheet and measured at the lower of cost or market.

The Company may also hold loans or a portion of the loans or receivables and sell the remainder directly to the Strategic Program provider or other investors. The Company is generally the servicer of the loans it originates through Strategic Programs. The Company earns a servicing fee equal to a percentage of the outstanding balance of the loans generated under

Strategic Programs for servicing such loans. In turn, the Strategic Program service providers, subject to the Company’s approval and oversight, typically serve as sub-servicer and perform primary servicing duties including loan collections, modifications, charging-off, reporting and monitoring.

Each Strategic Program provider establishes a “reserve” deposit account with the Company to reasonably ensure the strategic programs will have sufficient funds available to purchase the loans. The agreements generally require that the reserve account deposit balance does not fall below an agreed upon dollar or percentage threshold related to the total loans currently outstanding as held-for-sale by the Company for the specific Strategic Program. If necessary, the Company has the right to withdraw amounts from the reserve account to fulfill loan purchaser obligations created under the program agreements. Total cash held in reserve by Strategic Program providers at the Company at December 31, 2024 and December 31, 2023, was $54.0 million and $29.8 million, respectively.

Strategic Program loans retained and held-for-sale as of December 31, 2024 and December 31, 2023, are summarized as follows:


	December 31,		December 31,
	2024		2023
($ in thousands)
Retained Strategic Program loans	$	20,122	$	19,408
Strategic Program loans held-for-sale	91,588		47,514
Total Strategic Program loans	$	111,710	$	66,922

Allowance for Credit Losses

In determining an appropriate amount for the allowance, the Bank segmented and aggregated the loan portfolio based on the FDIC Consolidated Reports of Condition and Income (“Call Report”) codes. These classifications, which in general are based upon the nature of the collateral and type of borrower, are different than the classifications adopted for other financial reporting purposes, which are based upon the proposed use of the loan proceeds. The following pool segments identified as of December 31, 2024 and 2023 are based on the CECL methodology:


	December 31,		December 31,
	2024		2023
($ in thousands)
Construction and land development	$	42,331	$	28,330
Residential real estate	61,316		51,428
Residential real estate multifamily	1,692		647
Commercial real estate:
Owner occupied	190,286		186,550
Non-owner occupied	12,849		15,354
Commercial and industrial	44,329		21,399
Consumer	22,155		10,989
Lease financing receivables	70,153		38,110
Retained Strategic Program loans	20,122		19,408
Total loans held-for-investment, gross	$	465,233	$	372,215

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


	Year Ended December 31, 2024
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	316	$	58	$	—	$	—	$	374
Residential real estate	956		64		(297)		65		788
Residential real estate multifamily	6		32		—		—		38
Commercial real estate:
Owner occupied	3,336		203		(1,039)		334		2,834
Non-owner occupied	282		52		(221)		—		113
Commercial and industrial	361		1,211		(889)		17		700
Consumer	211		555		(134)		6		638
Lease financing receivables	355		1,233		(293)		92		1,387
Retained Strategic Program loans	7,065		7,840		(9,796)		1,195		6,304
Total allowance for credit losses on financing receivables	$	12,888	$	11,248	$	(12,669)	$	1,709	$	13,176

Unfunded lending commitments	139		325		—		—		464
Total allowance for credit losses	$	13,027	$	11,573	$	(12,669)	$	1,709	$	13,640


	Year Ended December 31, 2023
($ in thousands)	Beginning Balance		Impact of ASU 2016-13 adoption		Provision for (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
Lease financing receivables	339		(105)		121		—		—		355
Retained Strategic Program loans	6,701		1,131		9,125		(10,946)		1,054		7,065
Total allowance for credit losses on financing receivables	$	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

Nonaccrual and past due loans are summarized below as of December 31, 2024 and December 31, 2023:


December 31, 2024
	Loans Past Due and Still Accruing
($ in thousands)	30-89 Days Past Due		90 Days and Greater		Total		Nonaccrual Loans with no ACL(1)		Nonaccrual Loans with ACL		Current Loans		Total Loans
Construction and land development	$	—	$	—	$	—	$	—	$	—	$	42,331	$	42,331
Residential real estate	—		—		—		7,141		101		54,074		61,316
Residential real estate multifamily	—		—				—		—		1,692		1,692
Commercial real estate:					—
Owner occupied	2,070		—		2,070		17,435		6,102		164,679		190,286
Non-owner occupied	—		—		—		2,796		—		10,053		12,849
Commercial and industrial	—		—		—		1,788		—		42,541		44,329
Consumer	286		13		299		—		—		21,856		22,155
Commercial leases	279		—		279		158		202		69,513		70,153
Retained Strategic Program loans	1,553		62		1,615		—		—		18,507		20,122
Total	$	4,188	$	75	$	4,263	$	29,318	$	6,405	$	425,246	$	465,233

(1) Included in the nonaccrual loan balances are $18.9 million of SBA 7(a) loan balances guaranteed by the SBA.


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

There was no interest income recognized for the years ended December 31, 2024 and 2023, while loans were classified as nonaccrual. The amount of accrued interest for the years ended December 31, 2024 and 2023, that was reversed against interest income on nonaccrual loans was approximately $0.5 million and $0.7 million, 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.

Doubtful - A doubtful asset has an existing weakness or weaknesses that make collection or liquidation in full, on the basis of currently existing facts and conditions, highly questionable and improbable.

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

Not Rated – For Strategic Program 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.

The following table presents the amortized cost of the Company's loan and lease portfolio by collateral type, risk rating and origination year as of December 31, 2024, in addition to the gross writeoff by collateral type for the year ended December 31, 2024. The loans are grouped based on how they are assessed under CECL.


	Loans and Leases Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		Prior		Revolving Loans		Total
($ in thousands)
Construction and land development
Pass	$	18,008	$	9,080	$	12,687	$	2,556	$	—	$	—	42,331
Watch	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Total	18,008		9,080		12,687		2,556		—		—		42,331
Current period gross writeoff	—		—		—		—		—		—		—

Residential real estate


Pass	4,025	1,172	575	1,332	1,655	—	8,759
Watch	14,268	18,766	4,134	1,103	1,333	—	39,604
Special Mention	—	3,719	1,758	—	80	—	5,557
Substandard	—	—	7,129	50	217	—	7,396
Total	18,293	23,657	13,596	2,485	3,285	—	61,316
Current period gross writeoff	—	—	—	(252)	(45)	—	(297)

Residential real estate multifamily
Pass	1,039	293	256	78	—	—	1,666
Watch	—	—	—	—	26	—	26
Special Mention	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—
Total	1,039	293	256	78	26	—	1,692
Current period gross writeoff	—	—	—	—	—	—	—

Commercial real estate-owner occupied
Pass	26,160	3,897	3,468	1,180	9,112	—	43,817
Watch	25,137	51,350	28,462	5,904	3,342	—	114,195
Special Mention	—	4,553	1,736	—	2,207	—	8,496
Substandard	—	16,150	5,142	1,414	1,072	—	23,778
Total	51,297	75,950	38,808	8,498	15,733	—	190,286
Current period gross writeoff	—	(364)	(369)	(109)	(197)	—	(1,039)

Commercial real estate-non-owner occupied
Pass	36	—	1,254	—	343	—	1,633
Watch	1,215	4,111	1,841	1,117	136	—	8,420
Special Mention	—	—	—	—	—	—	—
Substandard	—	—	2,796	—	—	—	2,796
Total	1,251	4,111	5,891	1,117	479	—	12,849
Current period gross writeoff	—	—	(221)	—	—	—	(221)

Commercial and industrial
Pass	3,588	336	529	322	463	—	5,238
Watch	23,559	9,134	2,945	442	606	—	36,686
Special Mention	—	—	217	—	32	—	249
Substandard	—	1,438	351	—	367	—	2,156
Total	27,147	10,908	4,042	764	1,468	—	44,329
Current period gross writeoff	—	(393)	(227)	(178)	(91)	—	(889)

Consumer
Pass	15,951	4,294	1,257	319	286	—	22,107
Watch	43	5	—	—	—	—	48
Special Mention	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—
Total	15,994	4,299	1,257	319	286	—	22,155


Current period gross writeoff	—		(65)		(31)		(19)		(19)		—		(134)

Lease financing receivables
Pass	43,279		22,456		4,338		—		80		—		70,153
Watch	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Total	43,279		22,456		4,338		—		80		—		70,153
Current period gross writeoff	—		(293)		—		—		—		—		(293)

Retained Strategic Program loans
Pass	—		—		—		—		—		—		—
Watch	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Not Rated	17,084		1,540		1,109		389		—		—		20,122
Total	17,084		1,540		1,109		389		—		—		20,122
Current period gross writeoff	(3,801)		(4,683)		(927)		(385)		—		—		(9,796)

Total portfolio loans receivable, gross	$	193,392	$	152,294	$	81,984	$	16,206	$	21,357	$	—	$	465,233
Total current period gross writeoff	$	(3,801)	$	(5,798)	$	(1,775)	$	(943)	$	(352)	$	—	$	(12,669)

The following table presents the amortized cost of the Company's loan and lease portfolio by collateral type, risk rating and origination year as of December 31, 2023, in addition to the gross writeoff by collateral type for the year ended December 31, 2023. The loans are grouped based on how they are assessed under CECL.


	Loans and Leases Amortized Cost Basis by Origination Year
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)

Lease financing receivables
Pass	31,313	6,559	—	238	—	38,110
Watch	—	—	—	—	—	—
Special Mention	—	—	—	—	—	—
Substandard	—	—	—	—	—	—
Total	31,313	6,559	—	238	—	38,110
Current period gross writeoff	—	—	—	—	—	—



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 writeoff	(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 writeoff	$	(4,181)	$	(6,415)	$	(1,289)	$	(540)	$	—	$	(12,425)

Modified Loans to Troubled Borrowers

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. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.

In the year ended December 31, 2024 there were three material loan modifications reportable under the new guidance. Subsequent to December 31, 2024, there was a payment default of $0.2 million on a loan to a borrower whose loan was modified due to financial difficulties within the previous twelve months and the loan was placed on nonaccrual status.


	As of December 31, 2024
($ in thousands)	Principal deferment (Months)	Outstanding Balance		% of Total Loan Type
Commercial real estate - owner occupied	11 months	$	241	0.13	%
Commercial and industrial	11 months	$	367	0.83	%
Residential real estate	11 months	$	153	0.25	%
Total		$	761

In the year ended December 31, 2023 there was one material loan modification reportable under the new guidance. This loan did not go into default during the twelve months following its modification.

As of December 31, 2023

($ in thousands)

Principal deferment (Months)

Outstanding Balance

% of Total Loan Type

Residential real estate

12 months

156

0.30

Modified Retained Strategic Program Loans

Retained Strategic Program loans of $20.1 million and $19.4 million as of December 31, 2024 and 2023, respectively, consist primarily of personal loans to individuals. A significant amount of the retained Strategic Program loans are made to subprime borrowers. The subprime borrowers’ ability to repay the loans according to the original loan terms can be compromised by both short-term financial challenges, such as unexpected car repairs or physical injury, and longer-term financial challenges, such as a job loss or more serious injury or illness.

In certain circumstances, some of our strategic programs will modify the original loan terms to optimize the recovery of principal and interest. The loan modifications typically include i) a delay in payment and extension of the loan term, or ii) accrued interest forgiveness and interest rate and payment reductions. As of December 31, 2024, the balance of outstanding modified loans to individuals in the retained portfolio was approximately $4.4 million. As of December 31, 2023, the

balance of outstanding modified loans to individuals in the retained portfolio was approximately $4.5 million. The Company does not have any obligation to fund additional amounts to the borrowers. If after modification, some or all of the loan is determined to be uncollectible, the full balance determined to be uncollectible is charged off. The amount charged off is included in the Company’s vintage analysis used to estimate the Company’s allowance for credit losses.

Collateral-Dependent Loans

A collateral-dependent loan is a nonaccrual loan for which the Bank 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 amortized cost basis of collateral-dependent loans by class of loans as of the periods indicated:


($ in thousands)			Collateral Type
As of December 31, 2024	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	—	$	—	$	—
Residential real estate	10		7,243		—		7,243
Commercial real estate:
Owner occupied	9		23,536		—		23,536
Non-owner occupied	—		2,796		—		2,796
Commercial and industrial	—		—		1,789		1,789
Commercial leases	36		—		359		359
Total	$	55	$	33,575	$	2,148	$	35,723

The amount of collateral-dependent loans as of December 31, 2024 include $18.9 million of SBA 7(a) loan balances that are guaranteed by the SBA.


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

Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

The components of income tax expense consist of the following:


	December 31,
($ in thousands)	2024		2023
Current tax expense
Federal	$	3,030	$	3,446
State	1,127		992
Deferred tax expense
Federal	425		1,614
State	(335)		301
Income tax expense	$	4,247	$	6,353

The components of net deferred income tax assets and liabilities on the balance sheet at December 31, 2024 and 2023, are as follows:


	December 31,
($ in thousands)	2024		2023
Deferred tax assets
Operating lease liabilities	$	1,302	$	1,560
Allowance for credit losses	2,274		689
Loan servicing rights	316		533
Nonqualified stock options	154		150
Restricted stock	386		240
Deferred loan fees, net	—		51
Unrealized losses on securities AFS	24		—
Other	438		61
Total deferred tax assets	4,894		3,284

Deferred tax liabilities
ROU asset	(875)		(1,063)
Deferred loan fees, net	(2,159)		—
Net book value of fixed assets	(2,020)		(2,199)
Loan trailing fees	(335)		(424)
Unrealized gains on cash flow hedges	(85)		—
Other	(319)		(346)
Total deferred tax liabilities	(5,793)		(4,032)
Deferred taxes, net	$	(899)	$	(748)

The income tax expense recorded differs from the expected income tax expense and the reconciliation of these differences is as follows at December 31, 2024 and 2023:


	December 31,
($ in thousands)	2024		2023
Federal income tax expense at statutory rates	$	3,568	$	5,001
Nondeductible compensation	84		323
State income tax expense, net	626		991
Other	(31)		38
Income tax expense	$	4,247	$	6,353

At December 31, 2024 and 2023, the Company had no material unrecognized tax benefits or accrued interest and penalties recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months.

The Company and its subsidiaries are subject to income tax within U.S. federal and various state jurisdictions. The Company remains subject to examination for income tax returns in all federal and state jurisdictions for the years ending on or after December 31, 2021.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: 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/1943274/2147477891/740-270-50-1

Reference 6: 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 7: 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 8: 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 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: 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 11: 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 12: 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 13: 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 14: 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

Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Instruments on the Consolidated Balance Sheet

The table below presents the notional amount, location, and fair value of the Company’s derivative financial instruments on the Consolidated Balance Sheet as of December 31, 2024:

Derivative Assets

As of December 31, 2024

($ in thousands)

Notional Amount

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate swaps

80,000

Other assets

509

Total

509

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income

The table below presents the pre-tax effect of cash flow hedge accounting on accumulated other comprehensive income as of December 31, 2024:


	Year Ended December 31, 2024
	Amount of Gain Recognized in OCI on Derivative		Location of Gain Recognized from Accumulated OCI into Income	Amount of Gain Reclassified from Accumulated OCI into Income
Derivatives in Cash Flow Hedging Relationships:
Interest rate swaps	$	509	Interest on deposits	$	164
Total	$	509		$	164

Schedule of Derivative Instruments on the Consolidated Statements of Income

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the year ended December 31, 2024:


	Location and Amount of Gain Recognized in Income on Cash Flow Hedging Relationships
	2024
Location of gain recognized in income	Interest on deposits
Total amount of expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded	$	164

The effects of cash flow hedging:
Interest rate swaps:
Amount of gain reclassified from accumulated OCI into income	$	164

Schedule of Offsetting Assets

The table below presents derivative instruments that are subject to enforceable master netting arrangements for the periods indicated. The Company has not made a policy election to offset its derivative positions. The net amounts of derivative assets can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets are presented on the consolidated balance sheet.


As of December 31, 2024							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Received		Net Amount
Assets:
Interest rate swaps	$	509	$	—	$	509		$	—	$	—	$	509

Stock-Based Compensation and Employee Benefit Plans

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation and Employee Benefit Plans

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 will terminate as to future awards 10 years from the later of the effective date or the earlier of the most recent Board or shareholder approval of an increase in the number of shares reserved for issuance under the 2019 Plan. On June 27, 2024, the shareholders of the Company approved an amendment to the 2019 Plan increasing the number of shares of common stock reserved for issuance under the plan by an additional 500,000 shares to 1,780,000. At December 31, 2024, 445,440 shares under the 2019 Plan were 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 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

shareholder approval of an increase in the number of shares reserved for issuance under the 2016 Plan. At December 31, 2024, 2,189 shares under the 2016 Plan were available for future issuance.

The 2019 Plan and the 2016 Plan (collectively, the “Plans”) provide for the issuance of non-statutory stock options and restricted stock to employees, directors and consultants. The Plans also provide for the issuance of incentive stock options only to employees. The stock-based incentive awards for the Plans are granted at an exercise price not less than the fair market value of the Company’s common stock on the date of grant in the case of stock options. Restricted stock is valued based on the fair market value of the Company’s common stock on the grant date. Vesting of the stock 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. Restricted stock vests over periods ranging from approximately 1 to 5 years.

Under the 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, or 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 year ended December 31, 2024:


	Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2023	981,488	$	5.72	6.9	$	8,429,619

Options exercised	(45,420)	$	4.10
Options forfeited	(30,886)	$	7.47
Outstanding at December 31, 2024	905,182	$	5.74	5.9	$	9,266,286
Options vested and exercisable at December 31, 2024	766,442	$	5.23	5.6	$	8,241,070

The weighted average grant date fair value of options per share granted during the year ended December 31, 2023 was $4.11, respectively. The total intrinsic value of options exercised during the years ended December 31, 2024 and 2023 was $0.3 million and $0.1 million, respectively. During the years ended December 31, 2024, and 2023 the Company received de minimis proceeds from the exercise of stock options and recognized a de minimis tax benefit from the exercise of stock options for both years. Upon exercise of the stock options, the Company issued 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.

The following summarizes unvested restricted stock activity for the year ended December 31, 2024:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2023	199,208	$	10.05
Granted	419,299	$	10.18
Vested	(96,475)	$	10.39
Forfeited	(25,389)	$	10.12
Unvested as of December 31, 2024	496,643	$	10.09

The weighted average grant date fair value of restricted stock granted in the year ended December 31, 2023 was $8.63. The total fair value of restricted stock that vested during the years ended December 31, 2024 and 2023 was $1.2 million and $1.0 million, respectively.

Stock-based Compensation Expense

The following tables present stock-based compensation expense recognized:


	Years Ended December 31,
($ in thousands)	2024		2023
Stock options	$	237	$	493
Restricted stock	1,809		1,553
Total	$	2,046	$	2,046

As of December 31, 2024, the Company had unrecognized stock-based compensation expense related to stock options and restricted stock of approximately $0.1 million and $3.2 million, respectively, which is expected to be recognized over the remaining weighted average vesting period of 1.0 years and 2.4 years, respectively.

Defined Contribution Plan

The Company has established an employee directed 401(k) plan (“Plan”) for employees meeting certain eligibility requirements. The Plan requires the Company to contribute a safe harbor amount annually. 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 $1.1 million and $0.6 million for the years ended December 31, 2024 and 2023, respectively.

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

The table below presents the Company’s financial instruments valued on a recurring basis as of the periods indicated:


		December 31, 2024		December 31, 2023
($ in thousands)	Level	Estimated Fair Value		Estimated Fair Value
Financial assets:
U.S. Treasury securities	1	$	29,930	$	—
Investment in BFG	3	$	7,700	$	4,200
Derivative asset	2	$	509	$	—

Schedule of Carrying Amount and Fair Value of Financial Instruments

The table below presents a reconciliation of our investment in BFG classified as a Level 3 financial instrument and measured at fair value on a recurring basis for the periods indicated:


	Years Ended December 31,
($ in thousands)	2024		2023
Beginning balance	$	4,200	$	4,800
Purchase of BFG ownership interest	4,125		—
Change in fair value of BFG	(625)		(600)
Ending balance	$	7,700	$	4,200

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis

The table below presents the Company’s financial instruments valued on a nonrecurring basis as of the periods indicated:


($ in thousands)			Fair Value Measurements Using
Description of Financial Instrument	Fair Value		Level 1		Level 2		Level 3
December 31, 2024
Nonrecurring assets:
Individually evaluated loans	$	35,723	$	—	$	—	$	35,723
December 31, 2023
Nonrecurring assets:
Individually evaluated loans	$	27,127	$	—	$	—	$	27,127

Schedule of Quantitative Information for Level 3 Fair Value Measurements

The following table presents information about quantitative inputs and assumptions used to fair value Level 3 nonrecurring assets as of December 31, 2024 and 2023:

($ in thousands)

Fair Value

Valuation
Technique

Unobservable
Input

Range
(Weighted Average)

December 31, 2024

Individually evaluated loans

35,723

Market
comparable

Discount to appraisal value for estimated selling costs

11.40

December 31, 2023

Individually evaluated loans

27,127

Market
comparable

Discount to appraisal value for estimated selling costs

7.57

The range and weighted average of the significant unobservable inputs used to fair value the investment in BFG as of December 31, 2024 and as of December 31, 2023 are shown in the following table:


($ in thousands)	December 31, 2024 Range (Weighted Average)		December 31, 2023 Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate	15.3	%	11.0	%
Expense growth rate	14.9	%	13.4	%
Discount rate	27.5	%	20.0	%

Guideline Public Company
Multiples of enterprise value	3.5x to 5.8x		3.5x to 5.5x

Schedule of Carrying Amount and Fair Value of Financial Instruments

The tables below present the carrying amount and estimated fair value of the Company's financial instruments as of the periods indicated:


	December 31, 2024				Fair Value Measurements Using
($ in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	109,162	$	109,162	$	109,162	$	—	$	—
Investment securities available-for-sale	29,930		29,930		29,930		—		—
Investment securities held-to-maturity	12,565		11,057		—		11,057		—
Investment in FHLB stock	349		349		—		349		—
Loans held-for-investment, net	447,812		478,919		—		—		478,919
Strategic Program loans held-for-sale	91,588		91,588		—		91,588		—
Accrued interest receivable	3,566		3,566		—		3,566		—
SBA servicing asset, net	3,273		3,273		—		3,273		—
Investment in BFG	7,700		7,700		—		—		7,700
Derivative asset	509		509		—		509		—
Financial liabilities:
Total deposits	544,952		528,253		—		528,253		—
Accrued interest payable	1,494		1,494		—		1,494		—
PPPLF	64		64		—		64		—


	December 31, 2023				Fair Value Measurements Using
($ in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	116,975	$	116,975	$	116,975	$	—	$	—
Investment securities held-to-maturity	15,388		13,809		—		13,809		—
Investment in FHLB stock	238		238		—		238		—
Loans held-for-investment, net	358,560		360,032		—		—		360,032
Strategic Program loans held-for-sale	47,514		47,509		—		47,509		—
Accrued interest receivable	3,573		3,573		—		3,573		—
SBA servicing asset, net	4,231		4,231		—		4,231		—
Investment in BFG	4,200		4,200		—		—		4,200
Financial liabilities:
Total deposits	404,833		394,195		—		394,195		—
Accrued interest payable	619		619		—		619		—
PPPLF	190		190		—		190		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

Premises and Equipment and Leases (Tables)

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Schedule of Components of Premises and Equipment

Premises and equipment at December 31, 2024 and 2023, consist of the following:


	December 31,
	2024		2023
($ in thousands)
Leasehold improvements	$	3,700	$	3,700
Commercial operating lease equipment	12,874		9,300
Furniture, fixtures, and equipment	6,102		3,298
Construction in progress	605		2,153
Total premises and equipment	$	23,281	$	18,451
Less accumulated depreciation	(6,953)		(3,821)
Premises and equipment, net	$	16,328	$	14,630

Schedule of Lease Expenses

The Company leases its facilities under noncancelable operating leases. Rent expense was as follows:


	Years Ended December 31,
	2024		2023
($ in thousands)
Operating leases
Operating lease cost	$	840	$	876
Variable lease cost	85		35
Operating lease expense	925		911
Short-term lease rent expense	37		—
Total rent expense	$	962	$	911

The weighted-average lease term and discount rate used are as follows:


	As of
	December 31, 2024		December 31, 2023

Weighted-average remaining lease term – operating leases (in years)	4.8		5.8
Weighted-average discount rate – operating leases	1.9	%	1.9	%

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
	2024		2023
($ in thousands)
Cash paid for operating leases	$	1,142	$	850

Schedule of Future Minimum Annual Undiscounted Rental Payments for Operating Leases

Future minimum annual undiscounted rental payments for the Company’s operating leases are as follows as of December 31, 2024 ($ in thousands):


Year ended December 31, 2025	$	1,122
Year ended December 31, 2026	1,118
Year ended December 31, 2027	1,152
Year ended December 31, 2028	1,186
Year ended December 31, 2029	1,017
Thereafter	—
Total future minimum lease payments	5,595
Less present value discount	(293)
Total operating lease liabilities	$	5,302

Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2024

Capital Requirements [Abstract]

Schedule of Capital Amounts and Ratios

The following table presents the actual and required capital amounts and ratios for the Bank as of the periods indicated:


	Actual				Well-Capitalized Requirement
($ in thousands)	Amount		Ratio		Amount		Ratio
December 31, 2024
Leverage ratio (CBLR election)	$	135,375	20.6	%	$	59,196	9.0	%
December 31, 2023
Leverage ratio (CBLR election)	$	116,108	20.7	%	$	50,441	9.0	%

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2024
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

Condensed Financial Statements of Parent Company - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 109,162	$ 116,975
Investment in BFG, at fair value	7,700	4,200
Income taxes receivable	8,868	2,400
Other assets	11,160	14,219
Total assets	745,976	586,221
LIABILITIES AND SHAREHOLDERS’ EQUITY
Other liabilities	15,122	16,606
Shareholders’ equity	173,720	155,056	$ 140,459
Total liabilities and shareholders’ equity	745,976	586,221
Parent Company
Assets
Cash and cash equivalents	20,764	28,510
Investment in BFG, at fair value	7,700	4,200
Deferred taxes, net	32	188
Income taxes receivable	5,014	828
Other assets	133	41
Total assets	174,134	156,112
LIABILITIES AND SHAREHOLDERS’ EQUITY
Other liabilities	414	1,056
Shareholders’ equity	173,720	155,056
Total liabilities and shareholders’ equity	174,134	156,112
Parent Company \| FinWise Bank
Assets
Investments	140,203	122,055
Parent Company \| FinWise Investments, LLC
Assets
Investments	$ 290	$ 290

Deposits (Tables)

12 Months Ended

Dec. 31, 2024

Deposits [Abstract]

Schedule of Major Classes of Deposits

Major classes of deposits are as follows:


	December 31,
	2024		2023
($ in thousands)
Demand	$	198,185	$	145,544
Savings	9,287		8,633
Money markets	16,709		11,661
Time certificates of deposit	320,771		238,995
Total deposits	$	544,952	$	404,833

Schedule of Maturities of Time Deposits

At December 31, 2024, the scheduled maturities of time deposits are as follows ($ in thousands):


Year ended December 31, 2025	$	245,180
Year ended December 31, 2026	26,676
Year ended December 31, 2027	2,953
Year ended December 31, 2028	3,857
Year ended December 31, 2029	31,437
Thereafter	10,668
Total	$	320,771

- Definition

Tabular disclosure of type of deposit liability.

+ References

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+ Details

Investments - Held-to-Maturity Securities (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023	Jan. 01, 2023
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	$ 12,565,000	$ 15,388,000
Allowance for Credit Losses	0	0	$ 0
Unrealized Gain	8,000	4,000
Unrealized Loss	(1,516,000)	(1,583,000)
Estimated Fair Value	11,057,000	13,809,000
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	5,910,000	6,959,000
Allowance for Credit Losses	0	0
Unrealized Gain	0	0
Unrealized Loss	(746,000)	(817,000)
Estimated Fair Value	5,164,000	6,142,000
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	6,656,000	8,429,000
Allowance for Credit Losses	0	0
Unrealized Gain	8,000	4,000
Unrealized Loss	(770,000)	(766,000)
Estimated Fair Value	$ 5,893,000	$ 7,667,000

- 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.

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+ Details

Loans - Narrative (Details) $ in Millions	3 Months Ended	12 Months Ended
Loans - Narrative (Details) $ in Millions	Mar. 24, 2025 USD ($)	Dec. 31, 2024 USD ($) contract	Dec. 31, 2023 USD ($) contract
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Interest income on nonaccrual loans		$ 0.0	$ 0.0
Accrued interest that was reversed against interest income		$ 0.5	$ 0.7
Number of contracts \| contract		3	1
Subsequent Event
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Financing receivable, modified, subsequent default	$ 0.2
Retained Strategic Program loans
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Cash held in reserve by strategic programs		$ 54.0	$ 29.8
Total loans held-for-investment, gross		20.1	19.4
Modified loans		$ 4.4	$ 4.5

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2024
Accounting Policies [Abstract]
Significant concentrations of credit risk	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, residential real estate loans, and commercial leases. 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, 2024 and 2023, the Company analyzed its exposure to credit risks and concluded that no significant exposure exists from such concentrations of credit risk.
Principles of consolidation	Principles of consolidation – The consolidated financial statements include the accounts of FinWise Bancorp and its wholly-owned subsidiaries, FinWise Bank and FinWise Investment, LLC. All significant inter-company balances and transactions have been eliminated in consolidation.
Use of estimates	Use of estimates – In preparing the consolidated financial statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”), management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the date of the consolidated balance sheets and certain revenues and expenses for the period. Actual results could differ, either positively or negatively, from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses (“ACL”). 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.
Reclassifications and Immaterial Error Corrections	Reclassifications – Reclassifications have been made to prior year amounts to conform to the current year presentation. Certain of these reclassifications relate to the change in fair value of our SBA servicing asset, which was reclassified from non-interest expense to non-interest income to better align with the SBA servicing asset revenue and the associated costs. The effect of these reclassifications were not material to the previously reported consolidated financial statements.
Cash and cash equivalents	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, 2024.
Restricted cash	Restricted cash – The Company established a restricted cash balance required by the Company’s credit card merchant for payment processing and card management services.
Investments	Investments Investment securities available-for-sale – U.S. Treasury securities that the Company intends to hold for an indefinite period of time, but which may be sold in response to changes in liquidity needs, interest rates, or other similar factors, are classified as available-for-sale (“AFS”). Such securities are recorded in the Company’s consolidated balance sheets at their respective fair values and increases or decreases in those values, other than credit losses, are recorded as unrealized gains or losses, respectively, and are reported as other comprehensive income (loss) in the Company’s consolidated balance sheets, rather than included in or deducted from the Company’s earnings. The Company performs a quarterly analysis of its investment securities AFS to assess and record any expected credit losses through an allowance for credit losses, limited to the amount that fair value was less than the amortized cost basis. Interest on securities classified as AFS are recorded in interest on securities in the Company’s Consolidated Statements of Income. Investment securities held-to-maturity – Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity (“HTM”) and recorded at amortized cost. 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 is recognized through the provision for credit losses on the Company’s Consolidated Statements 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 6 - Investment in Business Funding Group, LLC, for a discussion about the Company’s investment in BFG.
Investment in Federal Home Loan Bank ("FHLB") stock	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 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.
Loans held for investment	Loans held-for-investment – Loans held-for-investment 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 commercial 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.
Allowance for credit losses and nonaccrual loans	Allowance for credit losses - On January 1, 2023, the Company adopted ASU 2016-13, Topic 326 which replaced the incurred loss methodology with a current expected credit losses (“CECL”) model 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 is reported as a reduction of the amortized cost basis of loans held-for-investment, 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. 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 credit and fraud losses assumed to be credit related 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. See Note 3 - Loans for more information about the Company’s Strategic Program loan portfolio. Certain agreements with our Strategic Program Service Providers provide for a credit enhancement, which protects the Bank by indemnifying or reimbursing incurred credit and fraud losses. The Company estimates and records a provision for expected losses for these Strategic Program loans. When the provision for the credit losses is recorded, a credit enhancement asset is also recorded on the balance sheet through non-interest income (credit enhancement income) equal to the provision for credit losses estimated for the credit enhanced loans. The credit enhancement asset is reduced when payments for the credit losses charged to the ACL are taken from the Strategic Program Service Provider’s cash reserve account created to absorb the credit losses incurred. The cash reserve account is replenished monthly from cash flows due to the Program Service provider related to the credit enhanced loans. 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, net – Premises and equipment are stated at cost less accumulated depreciation. Depreciation expense, which is included in occupancy and equipment expenses, 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.
Lessor accounting	Lessor accounting – The Company leases commercial operating equipment to a variety of customers. At lease inception the Company determines if an arrangement is a lease. The equipment underlying the operating lease is reported at cost as commercial operating lease equipment within premises and equipment, net in the Company’s Consolidated Balance Sheets and depreciated based on their useful lives on a straight-line basis to the residual value. These residual values are reviewed annually to ensure the recorded amount does not exceed the fair market value at the lease termination. Revenue consists of the contractual lease payments and is recognized on a straight-line basis over a specified lease term. The Company also has net investments in commercial operating equipment leased to customers, which are classified as sales-type leases or direct financing leases. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit on sales- type leases is recognized at lease commencement and recorded in other miscellaneous income. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term, yielding a constant periodic rate of return on the net investment in the lease. Sales from sales-type and operating leases are presented net of sales tax and other related taxes. Interest income is recognized over the lease term using the effective interest method.
Lessee accounting	Lessee accounting – 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	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	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. Loans held on the Company’s Consolidated Balance Sheets are classified as either held-for-investment or held-for-sale. Held-for-sale loan sales typically occur two to four days after the origination of the loans. When the Company determines that control over the transfer of financial assets has been surrendered, the transaction will be accounted for as a completed sale in which the underlying loans are derecognized and a resulting gain or loss, if any, is recorded.
SBA servicing asset, net	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.
Derivative instruments	Derivative instruments – In the normal course of business, the Company is exposed to interest rate fluctuations. Consistent with the Company’s strategy for financial risk management, the Company has established a program that utilizes interest rate swaps to offset the risks associated with the effects of this exposure. The Company utilizes cash flow hedge accounting treatment for interest rate swaps. Cash flow hedges are accounted for by recording the changes in the fair value of the derivative instrument in other comprehensive income (loss) and are recognized in the consolidated statements of income when the hedged item affects earnings. Derivative instruments are recognized on the consolidated balance sheet as other assets or other liabilities, at their respective fair values.
Stock repurchase program	Stock repurchase program – On March 7, 2024, the Company announced that its Board of Directors (the “Board”) had 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 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. 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 Share Repurchase Committee, designated by the Board of Directors, will determine the actual timing, number and value of any shares repurchased in its discretion depending on a variety of factors, including but not limited to, the market price and trading volume of the Company’s common stock, general market and economic conditions, the ongoing assessment of the Company’s capital needs, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares and may be limited or terminated at any time at the Company’s discretion without notice. Since the repurchase program’s inception, the Company has repurchased and subsequently retired a total of 44,608 shares for $0.5 million at an average price of $10.30 per share.
Revenue from contracts with customers	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. The majority of our revenue-generating transactions are not subject to ASC 606, including interest generated from loans. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. 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 are received monthly in connection with continuing program services provided for the Company’s Strategic Programs are recorded at the time services are provided.
Stock-based compensation	Stock-based compensation – The Company accounts for all stock-based awards to employees and non-employees, including grants of stock options and restricted stock awards, based on their respective grant date fair values. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model. The assumptions used in calculating the fair value of stock option grants represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment and include consideration of historical experience. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected volatility is based on the Company's data for the expected option term. The expected dividend yield was zero as the Company is not expected to pay dividends in the foreseeable future. Restricted stock awards are valued based on the fair value of the Company’s common stock on the date of grant. The Company expenses stock-based compensation related to stock options and restricted stock awards over the requisite service period (generally the vesting period of the equity grant) using the graded-vesting method. The Company accounts for forfeitures of stock–based awards as they occur. Stock-based compensation expense is included in salaries and employee benefits on the income statement.
Earnings per share ("EPS")	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 EPS based on participation rights of participating securities in any undistributed earnings. Each unvested share of restricted stock 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.
Comprehensive income (loss)	Comprehensive income (loss) – Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. However, certain changes in assets and liabilities, such as unrealized gains and losses on securities AFS and unrealized gains and losses on interest rate swaps designated as cash flow hedges, are reported as a separate component of equity in the accompanying consolidated balance sheets, net of income taxes, and such items, along with net income, are components of comprehensive income (loss). The Company’s policy is to release income tax effects from accumulated other comprehensive income at such time as the earnings or loss of the related activity are recognized in earnings
Off-balance sheet instruments	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	Segment reporting – 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 determined it has one reportable operating segment, the Bank. The Company’s Chief Executive Officer and its President, who are together considered to be its chief operating decision maker (“CODM”), review consolidated financial information to manage the Company’s operations. Since the Company operates and manages its business in one operating and one reportable segment, all required financial segment information can be found in the consolidated financial statements and the notes thereto.
Recently adopted accounting pronouncements and recent accounting pronouncements	Recently adopted accounting pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which requires disclosure, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. The ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in the update and existing segment disclosures in Topic 280. The Company adopted ASU 2023-07 on January 1, 2024 on a retrospective basis. The adoption modified disclosures but did not have an impact on the Company's consolidated financial statements. Recent accounting pronouncements In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. ASU 2023-09 improves the transparency of income tax disclosures by requiring entities to provide greater disaggregation of information on income taxes paid and on the rate reconciliation disclosures. This pronouncement also requires qualitative discussion of the primary state and local jurisdictions for income taxes and the type of reconciling categories. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its disclosures.
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). U.S. 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. There were no transfers between fair value levels for the years ended December 31, 2024 and 2023. The following methods were used to estimate the fair value of each class of financial instruments on a recurring basis: Investment securities available-for-sale: Investment securities AFS consist of U.S. Treasury securities and are carried at fair value. The Company estimates the fair value of investment securities AFS using current active market quotes, if available, which are considered Level 1 measurements. Level 1 measurements include securities issued by the U.S. Treasury. Investment in BFG: The Company’s valuation technique utilized the average of the discounted cash flow method and the Guideline Public Company method. A 20% lack of marketability discount was applied to the valuation as well as a 4.50% discount to non-voting shares to arrive at fair value as of December 31, 2024 and December 31, 2023. The calculation of fair value utilized significant unobservable inputs, including projected cash flows, growth rates, and discount rates. Individually evaluated loans – The loan amount above represents loans individually evaluated that have been adjusted to the lower of cost or 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, if any, represents charge-offs on loans when the fair value of the collateral is less than the carrying amount of the loan.

Earnings per Share

12 Months Ended

Dec. 31, 2024

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, 2024 and 2023 ($ in thousands, except per share amounts):


	Years Ended December 31,
	2024		2023
Numerator:
Net income	$	12,742	$	17,460
Amount allocated to participating common shareholders(1)	(390)		(288)
Net income allocated to common shareholders	$	12,352	$	17,172
Denominator:
Weighted average shares outstanding, basic	12,612,455		12,488,564
Weighted average effect of dilutive securities:
Stock options	491,036		343,642
Warrants	125,378		77,442
Weighted average shares outstanding, diluted	13,228,869		12,909,648
Earnings per share, basic	$	0.98	$	1.38
Earnings per share, diluted	$	0.93	$	1.33

Anti-dilutive stock options excluded from the calculation of diluted earnings per share	77,723		220,100

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

Premises and Equipment and Leases - Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Operating leases
Operating lease cost	$ 840	$ 876
Variable lease cost	85	35
Operating lease expense	925	911
Short-term lease rent expense	37	0
Total rent expense	$ 962	$ 911

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Cash and cash equivalents
Cash and due from banks	$ 9,600	$ 411
Interest-bearing deposits in other banks (restricted cash of $3.1 million and $0, respectively)	99,562	116,564
Total cash and cash equivalents	109,162	116,975
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $30.0 million)	29,930	0
Investment securities held-to-maturity, net of allowance for credit losses of $0, (fair value of $11.1 million and $13.8 million, respectively)	12,565	15,388
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost	349	238
Strategic Program loans held-for-sale, at lower of cost or fair value	91,588	47,514
Loans held-for-investment, net of allowance for credit losses of $13.2 million and $12.9 million, respectively	447,812	358,560
Credit enhancement asset	111	0
Premises and equipment, net	16,328	14,630
Accrued interest receivable	3,566	3,573
Small Business Administration (“SBA”) servicing asset, net	3,273	4,231
Investment in Business Funding Group (“BFG”), at fair value	7,700	4,200
Operating lease right-of-use (“ROU”) assets	3,564	4,293
Income taxes receivable, net	8,868	2,400
Other assets	11,160	14,219
Total assets	745,976	586,221
Deposits
Noninterest-bearing	126,782	95,486
Interest-bearing	418,170	309,347
Total deposits	544,952	404,833
Accrued interest payable	1,494	619
Income taxes payable, net	4,423	1,873
Deferred income taxes, net	899	748
Paycheck Protection Program Liquidity Facility	64	190
Operating lease liabilities	5,302	6,296
Other liabilities	15,122	16,606
Total liabilities	572,256	431,165
Commitments and contingencies (Note 9)
Shareholders’ equity
Preferred stock, $0.001 par value, 4,000,000 authorized; no shares issued and outstanding as of December 31, 2024 and December 31, 2023	0	0
Common stock, $0.001 par value, 40,000,000 shares authorized; 13,211,640 and 12,493,565 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively	13	12
Additional paid-in-capital	56,926	51,200
Retained earnings	116,594	103,844
Accumulated other comprehensive income, net of tax	187	0
Total shareholders’ equity	173,720	155,056
Total liabilities and shareholders’ equity	$ 745,976	$ 586,221

Fair Value of Financial Instruments - Narrative (Details)	Dec. 31, 2024	Dec. 31, 2023
Measurement Input, Discount for Lack of Marketability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment, measurement input	0.20	0.20
Measurement Input, Discount to Non-Voting Shares
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment, measurement input	0.0450	0.0450

SBA Servicing Asset, Net

12 Months Ended

Dec. 31, 2024

Transfers and Servicing [Abstract]

SBA Servicing Asset, Net

The Company periodically sells the guaranteed 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 $218.4 million and $275.2 million at December 31, 2024 and 2023, respectively.

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


	Years Ended December 31,
($ in thousands)	2024		2023
Balance at beginning of period	$	4,231	$	5,210
Additions to servicing asset	269		150
Amortization of servicing asset	(2,092)		(1,505)
Change in valuation allowance	865		376
Balance at end of period	$	3,273	$	4,231

SBA servicing asset, fair value	$	3,273	$	4,231

Activity in the valuation allowance for the SBA servicing asset was as follows for the periods indicated:


	Years Ended December 31,
($ in thousands)	2024		2023
Balance at beginning of period	$	(2,151)	$	(2,527)

Recovery	865		376
Balance at end of period	$	(1,286)	$	(2,151)

The fair market value of the SBA servicing asset as of December 31, 2024 and December 31, 2023, was $3.3 million and $4.2 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 these assumptions could result in a significant change in the SBA servicing asset carrying amount.

The Company assumed a weighted average prepayment rate of 21.1%, weighted average term of 3.30 years, and a weighted average discount rate of 12.1% at December 31, 2024.

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.

- 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 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(11))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479170/946-210-S99-1

Reference 2: 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

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-URI https://asc.fasb.org/1943274/2147481229/860-50-50-4

+ Details

SBA Servicing Asset, Net - Valuation Allowance SBA Servicing Asset Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Balance at beginning of period	$ (2,151)	$ (2,527)
Recovery	865	376
Balance at end of period	$ (1,286)	$ (2,151)

Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements of Parent Company

Financial information pertaining only to FinWise Bancorp, on a parent company-only basis, is as follows as of and for the years ended December 31, 2024 and 2023:

Condensed Balance Sheets


	December 31,
($ in thousands)	2024		2023
Assets
Cash and cash equivalents	$	20,764	$	28,510
Investment in FinWise Bank	140,203		122,055
Investment in BFG, at fair value	7,700		4,200
Investment in FinWise Investment, LLC	290		290
Deferred taxes, net	32		188
Income taxes receivable	5,014		828
Other assets	133		41
Total assets	$	174,134	$	156,112
Liabilities and shareholders' equity

Other liabilities	414		1,056
Shareholders’ equity	173,720		155,056
Total liabilities and shareholders’ equity	$	174,134	$	156,112

Condensed Statements of Income


	Years Ended December 31,
($ in thousands)	2024		2023
Non-interest income
Change in fair value on investment in BFG	$	(625)	$	(600)
Equity in undistributed earnings of subsidiary	17,960		21,992
Other miscellaneous income	630		685
Total non-interest income	17,965		22,077
Non-interest expense
Salaries and employee benefits	4,606		3,565
Professional services	1,273		1,765
Other operating expenses	943		860
Total non-interest expense	6,822		6,190
Income before income taxes	11,143		15,887
Income tax benefit	(1,599)		(1,574)
Net income	$	12,742	$	17,461

Condensed Statements of Cash Flows


	Years Ended December 31,
($ in thousands)	2024		2023
Cash flows from operating activities:
Net income	$	12,742	$	17,461
Adjustments to reconcile net income to net cash provided by operating activities
Change in fair value of BFG	625		600
Stock-based compensation expense	2,046		2,046
Deferred income tax expense	156		(61)
Net changes in:
Income tax payable (receivable)	(4,186)		(1,905)
Other assets	(91)		(4)
Other liabilities	(642)		760
Net cash provided by operating activities	10,650		18,897
Cash flows from investing activities:
Investment in subsidiary bank	(17,960)		(21,992)
Investment in FinWise Investment, LLC	—		(19)
Net cash used in investing activities	(17,960)		(22,011)
Cash flows from financing activities:
Proceeds from exercise of stock options	25		44
Common stock repurchased	(461)		(4,741)
Net cash used in financing activities	(436)		(4,697)
Net change in cash and cash equivalents	(7,746)		(7,811)
Cash and cash equivalents, beginning of year	28,510		36,321
Cash and cash equivalents, end of year	$	20,764	$	28,510

Investments - Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Estimated Fair Value	$ 29,930	$ 0
U.S. Treasury securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	30,027
Unrealized Gain	4
Unrealized Loss	(101)
Estimated Fair Value	$ 29,930

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

+ Details

- 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
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 2
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 2
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 3
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

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

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 12,742	$ 17,460
Other comprehensive income items, net of tax:
Unrealized loss on securities available-for-sale	(97)	0
Tax effect	24	0
Unrealized gain on interest rate swaps	509	0
Recognition of previously unrealized gain on interest rate swaps in net income	(164)	0
Tax effect	(85)	0
Other comprehensive income	187	0
Comprehensive income	$ 12,929	$ 17,460

Investment in Business Funding Group, LLC	12 Months Ended
Investment in Business Funding Group, LLC	Dec. 31, 2024
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 the Company’s common stock. The exchange was accounted for at fair value based on the fair value of the Company’s shares of approximately $3.5 million. On July 25, 2023, the Company entered into a definitive agreement, as amended, to purchase from certain members of BFG an additional 10% membership interest in exchange for shares of the Company’s common stock. On February 5, 2024, the transaction was consummated and the Company issued an aggregate 339,176 shares of the Company’s common stock in a private placement to the sellers in exchange for the additional membership interest in BFG. The second transaction increased the Company’s total ownership interest in BFG to 20%. The ownership interest consists of Class A Voting Units representing 4.7% of the aggregate membership interests of BFG and Class B Non-Voting Units representing 15.3% of the aggregate membership interests of BFG. The remaining 80% of the outstanding 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. On March 31, 2020, the Company entered into a right of first refusal and option agreement with the members of BFG whereby the Company has the right of first refusal to purchase additional interests in BFG from any selling members and the option to purchase all, but not less than all, of the interests in BFG from the remaining members. The purchase price for the remaining members’ interests is based on an earnings multiple between 10 times and 15 times BFG’s net profit for 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. The Company issued an aggregate 270,000 warrants to the BFG members as consideration for entering into the agreement. 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. For further information on the Company’s investment in BFG, see Note 14 - Related Party Transactions.

Derivatives and Hedging Activities - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2025 USD ($)
Forecast
Derivative Instruments, Gain (Loss) [Line Items]
Additional amount expected to be reclassified as a reduction to interest expense	$ 0.3

Fair Value of Financial Instruments - Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Financial assets:
Total securities AFS	$ 29,930	$ 0
Investment securities held-to-maturity	11,057	13,809
Accrued interest receivable	3,566	3,573
SBA servicing asset, net	3,273	4,231	$ 5,210
Investment in BFG, at fair value	7,700	4,200
Financial liabilities:
Accrued interest payable	1,494	619
Paycheck Protection Program Liquidity Facility	64	190
Carrying Amount
Financial assets:
Cash and cash equivalents	109,162	116,975
Total securities AFS	29,930
Investment securities held-to-maturity	12,565	15,388
Investment in FHLB stock	349	238
Loans held-for-investment, net	447,812	358,560
Strategic Program loans held-for-sale	91,588	47,514
Accrued interest receivable	3,566	3,573
SBA servicing asset, net	3,273	4,231
Investment in BFG, at fair value	7,700	4,200
Derivative asset	509
Financial liabilities:
Total deposits	544,952	404,833
Accrued interest payable	1,494	619
Paycheck Protection Program Liquidity Facility	64	190
Estimated Fair Value
Financial assets:
Cash and cash equivalents	109,162	116,975
Total securities AFS	29,930
Investment securities held-to-maturity	11,057	13,809
Investment in FHLB stock	349	238
Loans held-for-investment, net	478,919	360,032
Strategic Program loans held-for-sale	91,588	47,509
Accrued interest receivable	3,566	3,573
SBA servicing asset, net	3,273	4,231
Investment in BFG, at fair value	7,700	4,200
Derivative asset	509
Financial liabilities:
Total deposits	528,253	394,195
Accrued interest payable	1,494	619
Paycheck Protection Program Liquidity Facility	64	190
Estimated Fair Value \| Level 1
Financial assets:
Cash and cash equivalents	109,162	116,975
Total securities AFS	29,930
Investment securities held-to-maturity	0	0
Investment in FHLB stock	0	0
Loans held-for-investment, net	0	0
Strategic Program loans held-for-sale	0	0
Accrued interest receivable	0	0
SBA servicing asset, net	0	0
Investment in BFG, at fair value	0	0
Derivative asset	0
Financial liabilities:
Total deposits	0	0
Accrued interest payable	0	0
Paycheck Protection Program Liquidity Facility	0	0
Estimated Fair Value \| Level 2
Financial assets:
Cash and cash equivalents	0	0
Total securities AFS	0
Investment securities held-to-maturity	11,057	13,809
Investment in FHLB stock	349	238
Loans held-for-investment, net	0	0
Strategic Program loans held-for-sale	91,588	47,509
Accrued interest receivable	3,566	3,573
SBA servicing asset, net	3,273	4,231
Investment in BFG, at fair value	0	0
Derivative asset	509
Financial liabilities:
Total deposits	528,253	394,195
Accrued interest payable	1,494	619
Paycheck Protection Program Liquidity Facility	64	190
Estimated Fair Value \| Level 3
Financial assets:
Cash and cash equivalents	0	0
Total securities AFS	0
Investment securities held-to-maturity	0	0
Investment in FHLB stock	0	0
Loans held-for-investment, net	478,919	360,032
Strategic Program loans held-for-sale	0	0
Accrued interest receivable	0	0
SBA servicing asset, net	0	0
Investment in BFG, at fair value	7,700	4,200
Derivative asset	0
Financial liabilities:
Total deposits	0	0
Accrued interest payable	0	0
Paycheck Protection Program Liquidity Facility	$ 0	$ 0

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Financial Instruments with Off-Balance Sheet Risk

At December 31, 2024 and December 31, 2023, financial instruments with off-balance-sheet risk were as follows:


	December 31,		December 31,
($ in thousands)	2024		2023
Revolving, open-end lines of credit	$	2,365	$	1,630
Undisbursed commercial real estate loans	23,200		17,421
Other unused commitments	830		724
Total unfunded loan commitments	$	26,395	$	19,775

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, 2024	Dec. 31, 2023
Numerator:
Net income	$ 12,742	$ 17,460
Amount allocated to participating common shareholders	(390)	(288)
Net income allocate to common shareholders, basic	12,352	17,172
Net income allocate to common shareholders, diluted	$ 12,352	$ 17,172
Denominator:
Weighted average shares outstanding, basic (in shares)	12,612,455	12,488,564
Weighted average effect of dilutive securities:
Stock options (in shares)	491,036	343,642
Warrants (in shares)	125,378	77,442
Weighted average shares outstanding, diluted (in shares)	13,228,869	12,909,648
Earnings per share, basic (in dollars per share)	$ 0.98	$ 1.38
Earnings per share, diluted (in dollars per share)	$ 0.93	$ 1.33
Stock options
Weighted average effect of dilutive securities:
Antidilutive securities	77,723	220,100

Related Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Feb. 05, 2024	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Deposits	$ 2.1	$ 1.5
Loans Sourced From BFG \| Related Party
Schedule of Equity Method Investments [Line Items]
Related party transaction, amounts of transaction	70.3	128.9
Commissions Paid To BFG \| Related Party
Schedule of Equity Method Investments [Line Items]
Related party transaction, amounts of transaction	2.8	5.2
Distributions From BFG \| Related Party
Schedule of Equity Method Investments [Line Items]
Related party transaction, amounts of transaction	$ 0.6	$ 0.7
BFG
Schedule of Equity Method Investments [Line Items]
Membership interest	20.00%		20.00%	10.00%

Deposits - Major Classes of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deposits [Abstract]
Demand	$ 198,185	$ 145,544
Savings	9,287	8,633
Money markets	16,709	11,661
Time certificates of deposit	320,771	238,995
Total deposits	$ 544,952	$ 404,833

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Loans - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Total allowance for loan losses
Beginning Balance	$ 12,888	$ 11,985
Provision for (Reversal of) Credit Losses	11,248	11,525
Charge-Offs	(12,669)	(12,425)
Recoveries	1,709	1,546
Ending Balance	13,176	12,888
Unfunded lending commitments
Beginning Balance	139	0
Provision for Credit Losses	325	113
Ending Balance	464	139
Total allowance for credit losses
Beginning Balance	13,027	11,985
Provision for credit losses	11,573	11,638
Charge-Offs	(12,669)	(12,425)
Recoveries	1,709	1,546
Ending Balance	13,640	13,027
Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		257
Unfunded lending commitments
Beginning Balance		26
Total allowance for credit losses
Beginning Balance		283
Construction and land development
Total allowance for loan losses
Beginning Balance	316	424
Provision for (Reversal of) Credit Losses	58	(41)
Charge-Offs	0	0
Recoveries	0	0
Ending Balance	374	316
Construction and land development \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		(67)
Residential real estate
Total allowance for loan losses
Beginning Balance	956	876
Provision for (Reversal of) Credit Losses	64	273
Charge-Offs	(297)	(225)
Recoveries	65	90
Ending Balance	788	956
Residential real estate \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		(58)
Residential real estate multifamily
Total allowance for loan losses
Beginning Balance	6	3
Provision for (Reversal of) Credit Losses	32	2
Charge-Offs	0	0
Recoveries	0	0
Ending Balance	38	6
Residential real estate multifamily \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		1
Owner occupied
Total allowance for loan losses
Beginning Balance	3,336	3,030
Provision for (Reversal of) Credit Losses	203	1,551
Charge-Offs	(1,039)	(714)
Recoveries	334	1
Ending Balance	2,834	3,336
Owner occupied \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		(532)
Non-owner occupied
Total allowance for loan losses
Beginning Balance	282	208
Provision for (Reversal of) Credit Losses	52	(262)
Charge-Offs	(221)	0
Recoveries	0	378
Ending Balance	113	282
Non-owner occupied \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		(42)
Commercial and industrial
Total allowance for loan losses
Beginning Balance	361	339
Provision for (Reversal of) Credit Losses	1,211	558
Charge-Offs	(889)	(472)
Recoveries	17	21
Ending Balance	700	361
Commercial and industrial \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		(85)
Consumer
Total allowance for loan losses
Beginning Balance	211	65
Provision for (Reversal of) Credit Losses	555	198
Charge-Offs	(134)	(68)
Recoveries	6	2
Ending Balance	638	211
Consumer \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		14
Lease financing receivables
Total allowance for loan losses
Beginning Balance	355	339
Provision for (Reversal of) Credit Losses	1,233	121
Charge-Offs	(293)	0
Recoveries	92	0
Ending Balance	1,387	355
Lease financing receivables \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		(105)
Retained Strategic Program loans
Total allowance for loan losses
Beginning Balance	7,065	6,701
Provision for (Reversal of) Credit Losses	7,840	9,125
Charge-Offs	(9,796)	(10,946)
Recoveries	1,195	1,054
Ending Balance	$ 6,304	7,065
Retained Strategic Program loans \| Cumulative Effect, Period of Adoption, Adjustment
Total allowance for loan losses
Beginning Balance		$ 1,131

Stock-Based Compensation and Employee Benefit Plans - Restricted Stock Activity (Details) - Restricted stock - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Number of Shares
Unvested as of beginning of year (in shares)	199,208
Granted (in shares)	419,299
Vested (in shares)	(96,475)
Forfeited (in shares)	(25,389)
Unvested as of end of year (in shares)	496,643	199,208
Weighted Average Grant Date Fair Value
Unvested as of beginning of year (in dollars per share)	$ 10.05
Granted (in dollars per shares)	10.18	$ 8.63
Vested (in dollars per share)	10.39
Forfeited (in dollars per share)	10.12
Unvested as of end of year (in dollars per share)	$ 10.09	$ 10.05

Investment in Business Funding Group, LLC (Details) - Business Funding Group, LLC $ / shares in Units, $ in Millions	Feb. 05, 2024 shares	Jul. 25, 2023	Dec. 31, 2019 USD ($) shares	Dec. 31, 2024	Mar. 31, 2020 $ / shares shares
Schedule of Equity Method Investments [Line Items]
Membership interest	20.00%		10.00%	20.00%
BFG ownership purchase (in shares)			950,784
Fair value of Company's shares \| $			$ 3.5
Equity method investment, ownership percentage , additions		0.10
Membership interests held by other existing members			80.00%
Number of warrants (in shares)					270,000
Warrant exercise price (in dollars per share) \| $ / shares					$ 6.67
Warrants issued during period, fair value (in dollars per share) \| $ / shares					$ 0.19
Private Placement
Schedule of Equity Method Investments [Line Items]
BFG ownership purchase (in shares)	339,176
Minimum
Schedule of Equity Method Investments [Line Items]
Investment owned, purchase option, earnings multiplier used for purchase price					10
Maximum
Schedule of Equity Method Investments [Line Items]
Investment owned, purchase option, earnings multiplier used for purchase price					15
Class A Voting Units
Schedule of Equity Method Investments [Line Items]
Membership interest	4.70%
Class B Non-Voting Units
Schedule of Equity Method Investments [Line Items]
Membership interest	15.30%

Investments - Narrative (Details)	12 Months Ended
Investments - Narrative (Details)	Dec. 31, 2024 USD ($) security	Dec. 31, 2023 USD ($) security	Jan. 01, 2023 USD ($)
Schedule of Held-to-Maturity Securities [Line Items]
Accrued interest receivable debt securities available for sale	$ 500,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable
Debt securities, available-for-sale, allowance for credit loss	$ 0		$ 0
Investment securities held-to-maturity, allowance for credit losses	$ 0	$ 0	$ 0
Number of securities in unrealized loss position \| security	22	19
Held-to-maturity securities pledged as collateral	$ 12,565,000	$ 15,388,000
Sales or transfers of investment securities	0	0
Realized gains (losses) on sale or transfer of investment securities	0	0
Asset Pledged as Collateral
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost	30,000,000.0
Asset Pledged as Collateral \| Federal Reserve Bank Credit Lines
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-maturity securities pledged as collateral	12,600,000
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Investment securities held-to-maturity, allowance for credit losses	$ 0	$ 0
Number of securities in unrealized loss position \| security	8	9
Held-to-maturity securities pledged as collateral	$ 6,656,000	$ 8,429,000
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Investment securities held-to-maturity, allowance for credit losses	$ 0	$ 0
Number of securities in unrealized loss position \| security	10	10
Held-to-maturity securities pledged as collateral	$ 5,910,000	$ 6,959,000
U.S. Treasury securities
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost	$ 30,027,000
Number of securities in unrealized loss position \| security	4

Fair Value of Financial Instruments - Investment in BFG Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Equity Method Investments [Roll Forward]
Fair Value, Recurring Basis, Unobservable Input Reconciliation Asset Gain (Loss), Statement Of Income Extensible List, Not Disclosed Flag	Consolidated Statements of Income	Consolidated Statements of Income
Fair Value, Recurring
Equity Method Investments [Roll Forward]
Beginning balance	$ 4,200	$ 4,800
Purchase of BFG ownership interest	4,125	0
Change in fair value of BFG	(625)	(600)
Ending balance	$ 7,700	$ 4,200

Condensed Financial Statements of Parent Company (Tables)

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Schedule of Balance Sheets

Condensed Balance Sheets


	December 31,
($ in thousands)	2024		2023
Assets
Cash and cash equivalents	$	20,764	$	28,510
Investment in FinWise Bank	140,203		122,055
Investment in BFG, at fair value	7,700		4,200
Investment in FinWise Investment, LLC	290		290
Deferred taxes, net	32		188
Income taxes receivable	5,014		828
Other assets	133		41
Total assets	$	174,134	$	156,112
Liabilities and shareholders' equity

Other liabilities	414		1,056
Shareholders’ equity	173,720		155,056
Total liabilities and shareholders’ equity	$	174,134	$	156,112

Schedule of Statement of Income

Condensed Statements of Income


	Years Ended December 31,
($ in thousands)	2024		2023
Non-interest income
Change in fair value on investment in BFG	$	(625)	$	(600)
Equity in undistributed earnings of subsidiary	17,960		21,992
Other miscellaneous income	630		685
Total non-interest income	17,965		22,077
Non-interest expense
Salaries and employee benefits	4,606		3,565
Professional services	1,273		1,765
Other operating expenses	943		860
Total non-interest expense	6,822		6,190
Income before income taxes	11,143		15,887
Income tax benefit	(1,599)		(1,574)
Net income	$	12,742	$	17,461

Schedule of Statements of Cash Flows

Condensed Statements of Cash Flows


	Years Ended December 31,
($ in thousands)	2024		2023
Cash flows from operating activities:
Net income	$	12,742	$	17,461
Adjustments to reconcile net income to net cash provided by operating activities
Change in fair value of BFG	625		600
Stock-based compensation expense	2,046		2,046
Deferred income tax expense	156		(61)
Net changes in:
Income tax payable (receivable)	(4,186)		(1,905)
Other assets	(91)		(4)
Other liabilities	(642)		760
Net cash provided by operating activities	10,650		18,897
Cash flows from investing activities:
Investment in subsidiary bank	(17,960)		(21,992)
Investment in FinWise Investment, LLC	—		(19)
Net cash used in investing activities	(17,960)		(22,011)
Cash flows from financing activities:
Proceeds from exercise of stock options	25		44
Common stock repurchased	(461)		(4,741)
Net cash used in financing activities	(436)		(4,697)
Net change in cash and cash equivalents	(7,746)		(7,811)
Cash and cash equivalents, beginning of year	28,510		36,321
Cash and cash equivalents, end of year	$	20,764	$	28,510

Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Options granted (in shares)	0
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate		3.68%
Expected term in years		6 years
Expected volatility		44.20%
Expected dividend yield		0.00%

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 2
-Subparagraph (a)(2)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 2
-Subparagraph (a)(3)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

+ Details

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In the ordinary course of business, the Bank may grant loans to certain executive officers and directors and the companies with which they are associated. The Company had no and de minimis loans outstanding to related parties as of December 31, 2024 and December 31, 2023. Total deposits from certain executive officers and directors and the companies with which they are associated were $2.1 million and $1.5 million as of December 31, 2024 and December 31, 2023, respectively. BFG is a small business loan broker, primarily under the SBA’s 7(a) loan program. As noted in Note 6 - Investment in Business Funding Group, LLC, the Company has a 20% ownership in the outstanding membership units of BFG, as of December 31, 2024. 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. SBA 7(a) loans sourced from BFG totaled $70.3 million and $128.9 million for the years ended December 31, 2024 and 2023, respectively. The Company paid commission fees to BFG in the amounts of $2.8 million and $5.2 million for the years ended December 31, 2024 and 2023, respectively. The Company received distributions from BFG in the amounts of $0.6 million and $0.7 million for the years ended December 31, 2024 and 2023, respectively. These distributions were recorded in the Consolidated Statements of Income in other miscellaneous income.

- 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
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

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

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

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))
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-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

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

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
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-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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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

Premises and Equipment and Leases - Minimum Future Rental Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Year ended December 31, 2025	$ 1,122
Year ended December 31, 2026	1,118
Year ended December 31, 2027	1,152
Year ended December 31, 2028	1,186
Year ended December 31, 2029	1,017
Thereafter	0
Total future minimum lease payments	5,595
Less present value discount	(293)
Total operating lease liabilities	$ 5,302	$ 6,296

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net income	$ 12,742	$ 17,460

- 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
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
-SubTopic 60
-Name Accounting Standards Codification
-Section 65
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-URI https://asc.fasb.org/1943274/2147476176/805-60-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (g)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481687/323-10-50-3

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-28

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482765/220-10-50-6

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480175/815-40-65-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-11

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-11

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-4

Reference 17: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479168/946-830-55-10

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479105/946-220-45-7

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-3

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-60B

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483499/205-20-50-7

Reference 34: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482740/230-10-45-28

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1A

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1B

Reference 37: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

Derivatives and Hedging Activities - Derivative Financial Instruments (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Derivative [Line Items]
Fair Value	$ 509
Derivatives designated as hedging instruments:
Derivative [Line Items]
Fair Value	509
Interest rate swaps \| Derivatives designated as hedging instruments:
Derivative [Line Items]
Notional Amount	80,000
Fair Value	$ 509

Investments - FHLB Stock (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost	$ 349	$ 238

Capital Requirements - Actual Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Amount
Actual	$ 135,375	$ 116,108
Well-Capitalized Requirement	$ 59,196	$ 50,441
Ratio
Actual	0.206	0.207
Well-Capitalized Requirement	0.090	0.090

Loans - Loans by Origination Year (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	$ 193,392	$ 203,741
Fiscal year before current fiscal year	152,294	108,686
Two years before current fiscal year	81,984	26,234
Three years before current fiscal year	16,206
Prior	21,357
Prior		31,272
Revolving Loans	0	2,282
Total	465,233	372,215
Current year, Writeoff	(3,801)	(4,181)
Fiscal year before current fiscal year, Writeoff	(5,798)	(6,415)
Two years before current fiscal year, Writeoff	(1,775)	(1,289)
Three years before current fiscal year, Writeoff	(943)
Prior, Writeoff	(352)
Prior, Writeoff		(540)
Revolving Loans, Writeoff	0	0
Writeoff	(12,669)	(12,425)
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	18,008	12,919
Fiscal year before current fiscal year	9,080	10,960
Two years before current fiscal year	12,687	4,354
Three years before current fiscal year	2,556
Prior	0
Prior		97
Revolving Loans	0	0
Total	42,331	28,330
Current year, Writeoff	0	0
Fiscal year before current fiscal year, Writeoff	0	0
Two years before current fiscal year, Writeoff	0	0
Three years before current fiscal year, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	0	0
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	18,293	25,823
Fiscal year before current fiscal year	23,657	14,858
Two years before current fiscal year	13,596	3,349
Three years before current fiscal year	2,485
Prior	3,285
Prior		5,149
Revolving Loans	0	2,249
Total	61,316	51,428
Current year, Writeoff	0	0
Fiscal year before current fiscal year, Writeoff	0	(121)
Two years before current fiscal year, Writeoff	0	0
Three years before current fiscal year, Writeoff	(252)
Prior, Writeoff	(45)
Prior, Writeoff		(104)
Revolving Loans, Writeoff	0	0
Writeoff	(297)	(225)
Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,039	278
Fiscal year before current fiscal year	293	263
Two years before current fiscal year	256	80
Three years before current fiscal year	78
Prior	26
Prior		26
Revolving Loans	0	0
Total	1,692	647
Current year, Writeoff	0	0
Fiscal year before current fiscal year, Writeoff	0	0
Two years before current fiscal year, Writeoff	0	0
Three years before current fiscal year, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	0	0
Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	51,297	91,392
Fiscal year before current fiscal year	75,950	58,970
Two years before current fiscal year	38,808	13,791
Three years before current fiscal year	8,498
Prior	15,733
Prior		22,397
Revolving Loans	0	0
Total	190,286	186,550
Current year, Writeoff	0	(318)
Fiscal year before current fiscal year, Writeoff	(364)	(21)
Two years before current fiscal year, Writeoff	(369)	(97)
Three years before current fiscal year, Writeoff	(109)
Prior, Writeoff	(197)
Prior, Writeoff		(278)
Revolving Loans, Writeoff	0	0
Writeoff	(1,039)	(714)
Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,251	7,187
Fiscal year before current fiscal year	4,111	6,291
Two years before current fiscal year	5,891	1,223
Three years before current fiscal year	1,117
Prior	479
Prior		653
Revolving Loans	0	0
Total	12,849	15,354
Current year, Writeoff	0	0
Fiscal year before current fiscal year, Writeoff	0	0
Two years before current fiscal year, Writeoff	(221)	0
Three years before current fiscal year, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	(221)	0
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	27,147	12,507
Fiscal year before current fiscal year	10,908	5,201
Two years before current fiscal year	4,042	1,508
Three years before current fiscal year	764
Prior	1,468
Prior		2,152
Revolving Loans	0	31
Total	44,329	21,399
Current year, Writeoff	0	(87)
Fiscal year before current fiscal year, Writeoff	(393)	(114)
Two years before current fiscal year, Writeoff	(227)	(122)
Three years before current fiscal year, Writeoff	(178)
Prior, Writeoff	(91)
Prior, Writeoff		(149)
Revolving Loans, Writeoff	0	0
Writeoff	(889)	(472)
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	15,994	7,816
Fiscal year before current fiscal year	4,299	1,975
Two years before current fiscal year	1,257	637
Three years before current fiscal year	319
Prior	286
Prior		559
Revolving Loans	0	2
Total	22,155	10,989
Current year, Writeoff	0	(3)
Fiscal year before current fiscal year, Writeoff	(65)	(5)
Two years before current fiscal year, Writeoff	(31)	(53)
Three years before current fiscal year, Writeoff	(19)
Prior, Writeoff	(19)
Prior, Writeoff		(7)
Revolving Loans, Writeoff	0	0
Writeoff	(134)	(68)
Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	43,279	31,313
Fiscal year before current fiscal year	22,456	6,559
Two years before current fiscal year	4,338	0
Three years before current fiscal year	0
Prior	80
Prior		238
Revolving Loans	0	0
Total	70,153	38,110
Current year, Writeoff	0	0
Fiscal year before current fiscal year, Writeoff	(293)	0
Two years before current fiscal year, Writeoff	0	0
Three years before current fiscal year, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	(293)	0
Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	17,084	14,506
Fiscal year before current fiscal year	1,540	3,609
Two years before current fiscal year	1,109	1,292
Three years before current fiscal year	389
Prior	0
Prior		1
Revolving Loans	0	0
Total	20,122	19,408
Current year, Writeoff	(3,801)	(3,773)
Fiscal year before current fiscal year, Writeoff	(4,683)	(6,154)
Two years before current fiscal year, Writeoff	(927)	(1,017)
Three years before current fiscal year, Writeoff	(385)
Prior, Writeoff	0
Prior, Writeoff		(2)
Revolving Loans, Writeoff	0	0
Writeoff	(9,796)	(10,946)
Pass \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	18,008	12,919
Fiscal year before current fiscal year	9,080	10,345
Two years before current fiscal year	12,687	4,354
Three years before current fiscal year	2,556
Prior	0
Prior		97
Revolving Loans	0	0
Total	42,331	27,715
Pass \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	4,025	2,209
Fiscal year before current fiscal year	1,172	874
Two years before current fiscal year	575	1,480
Three years before current fiscal year	1,332
Prior	1,655
Prior		2,947
Revolving Loans	0	2,249
Total	8,759	9,759
Pass \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,039	278
Fiscal year before current fiscal year	293	263
Two years before current fiscal year	256	80
Three years before current fiscal year	78
Prior	0
Prior		0
Revolving Loans	0	0
Total	1,666	621
Pass \| Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	26,160	12,566
Fiscal year before current fiscal year	3,897	1,234
Two years before current fiscal year	3,468	854
Three years before current fiscal year	1,180
Prior	9,112
Prior		12,207
Revolving Loans	0	0
Total	43,817	26,861
Pass \| Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	36	2,805
Fiscal year before current fiscal year	0	1,294
Two years before current fiscal year	1,254	0
Three years before current fiscal year	0
Prior	343
Prior		419
Revolving Loans	0	0
Total	1,633	4,518
Pass \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	3,588	2,090
Fiscal year before current fiscal year	336	601
Two years before current fiscal year	529	744
Three years before current fiscal year	322
Prior	463
Prior		821
Revolving Loans	0	31
Total	5,238	4,287
Pass \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	15,951	7,792
Fiscal year before current fiscal year	4,294	1,975
Two years before current fiscal year	1,257	637
Three years before current fiscal year	319
Prior	286
Prior		558
Revolving Loans	0	2
Total	22,107	10,964
Pass \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	43,279	31,313
Fiscal year before current fiscal year	22,456	6,559
Two years before current fiscal year	4,338	0
Three years before current fiscal year	0
Prior	80
Prior		238
Revolving Loans	0	0
Total	70,153	38,110
Pass \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Watch \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Watch \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	14,268	23,614
Fiscal year before current fiscal year	18,766	12,399
Two years before current fiscal year	4,134	1,661
Three years before current fiscal year	1,103
Prior	1,333
Prior		2,035
Revolving Loans	0	0
Total	39,604	39,709
Watch \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	26
Prior		26
Revolving Loans	0	0
Total	26	26
Watch \| Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	25,137	62,360
Fiscal year before current fiscal year	51,350	53,832
Two years before current fiscal year	28,462	11,871
Three years before current fiscal year	5,904
Prior	3,342
Prior		7,654
Revolving Loans	0	0
Total	114,195	135,717
Watch \| Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,215	4,382
Fiscal year before current fiscal year	4,111	2,635
Two years before current fiscal year	1,841	1,223
Three years before current fiscal year	1,117
Prior	136
Prior		234
Revolving Loans	0	0
Total	8,420	8,474
Watch \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	23,559	10,157
Fiscal year before current fiscal year	9,134	4,600
Two years before current fiscal year	2,945	764
Three years before current fiscal year	442
Prior	606
Prior		930
Revolving Loans	0	0
Total	36,686	16,451
Watch \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	43	24
Fiscal year before current fiscal year	5	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		1
Revolving Loans	0	0
Total	48	25
Watch \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Watch \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	3,719	0
Two years before current fiscal year	1,758	208
Three years before current fiscal year	0
Prior	80
Prior		11
Revolving Loans	0	0
Total	5,557	219
Special Mention \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	4,553	192
Two years before current fiscal year	1,736	0
Three years before current fiscal year	0
Prior	2,207
Prior		1,498
Revolving Loans	0	0
Total	8,496	1,690
Special Mention \| Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	217	0
Three years before current fiscal year	0
Prior	32
Prior		8
Revolving Loans	0	0
Total	249	8
Special Mention \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Substandard \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	615
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	615
Substandard \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	1,585
Two years before current fiscal year	7,129	0
Three years before current fiscal year	50
Prior	217
Prior		156
Revolving Loans	0	0
Total	7,396	1,741
Substandard \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Substandard \| Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	16,466
Fiscal year before current fiscal year	16,150	3,712
Two years before current fiscal year	5,142	1,066
Three years before current fiscal year	1,414
Prior	1,072
Prior		1,038
Revolving Loans	0	0
Total	23,778	22,282
Substandard \| Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	2,362
Two years before current fiscal year	2,796	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	2,796	2,362
Substandard \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	260
Fiscal year before current fiscal year	1,438	0
Two years before current fiscal year	351	0
Three years before current fiscal year	0
Prior	367
Prior		393
Revolving Loans	0	0
Total	2,156	653
Substandard \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Substandard \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Substandard \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Not Rated \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	17,084	14,506
Fiscal year before current fiscal year	1,540	3,609
Two years before current fiscal year	1,109	1,292
Three years before current fiscal year	389
Prior	0
Prior		1
Revolving Loans	0	0
Total	$ 20,122	$ 19,408

Fair Value of Financial Instruments - Schedule of Financial Instruments Valued on Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value	$ 29,930	$ 0
Investment in BFG, at fair value	$ 7,700	4,200
Derivative Asset, Statement Of Financial Position, Extensible Enumeration Not Disclosed Flag	Consolidated Balance Sheets
Level 1 \| Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value	$ 29,930	0
Level 2 \| Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	509	0
Level 3 \| Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment in BFG, at fair value	$ 7,700	$ 4,200

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

+ Details

- Definition

Fair value, after the effects of master netting arrangements, of a financial asset or other contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References

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+ Details

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2024

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, 2024 and 2023 ($ in thousands, except per share amounts):


	Years Ended December 31,
	2024		2023
Numerator:
Net income	$	12,742	$	17,460
Amount allocated to participating common shareholders(1)	(390)		(288)
Net income allocated to common shareholders	$	12,352	$	17,172
Denominator:
Weighted average shares outstanding, basic	12,612,455		12,488,564
Weighted average effect of dilutive securities:
Stock options	491,036		343,642
Warrants	125,378		77,442
Weighted average shares outstanding, diluted	13,228,869		12,909,648
Earnings per share, basic	$	0.98	$	1.38
Earnings per share, diluted	$	0.93	$	1.33

Anti-dilutive stock options excluded from the calculation of diluted earnings per share	77,723		220,100

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

Investments - Amortized Cost and Estimated Market Value of Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 0	$ 0
Due after one year through five years	1,365	0
Due after five years through ten years	807	2,745
Due after ten years	10,393	12,643
Amortized Cost	12,565	15,388
Estimated Fair Value
Due in one year or less	0	0
Due after one year through five years	1,301	0
Due after five years through ten years	734	2,577
Due after ten years	9,022	11,232
Estimated Fair Value	$ 11,057	$ 13,809

SBA Servicing Asset, Net - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Transfers and Servicing [Abstract]
SBA loans serviced for others	$ 218.4	$ 275.2
SBA servicing asset, net	$ 3.3	$ 4.2
Weighted average prepayment rate	21.10%	18.20%
Weighted average term	3 years 3 months 18 days	3 years 8 months 19 days
Weighted average discount rate	12.10%	15.40%

Premises and Equipment and Leases

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Premises and Equipment and Leases

Premises and equipment at December 31, 2024 and 2023, consist of the following:


	December 31,
	2024		2023
($ in thousands)
Leasehold improvements	$	3,700	$	3,700
Commercial operating lease equipment	12,874		9,300
Furniture, fixtures, and equipment	6,102		3,298
Construction in progress	605		2,153
Total premises and equipment	$	23,281	$	18,451
Less accumulated depreciation	(6,953)		(3,821)
Premises and equipment, net	$	16,328	$	14,630

Total depreciation and amortization expense, included in occupancy and equipment expenses, was $3.2 million and $2.3 million for the years ended December 31, 2024 and 2023, respectively, which included depreciation expense on assets leased and available for lease of $1.6 million and $1.0 million for the years ended December 31, 2024 and 2023, respectively.

Leasing as a Lessor - Commercial Operating Lease Equipment

The Company includes commercial operating leases within premises and equipment. The net book value of the commercial operating leases as of December 31, 2024 and December 31, 2023 was $10.4 million and $8.2 million. Rental income from commercial operating leases for the years ended December 31, 2024 and 2023 was $2.2 million and $1.3 million, respectively.

Leasing as a Lessee

The Company leases its facilities under noncancelable operating leases. Rent expense was as follows:


	Years Ended December 31,
	2024		2023
($ in thousands)
Operating leases
Operating lease cost	$	840	$	876
Variable lease cost	85		35
Operating lease expense	925		911
Short-term lease rent expense	37		—
Total rent expense	$	962	$	911

Future minimum annual undiscounted rental payments for the Company’s operating leases are as follows as of December 31, 2024 ($ in thousands):


Year ended December 31, 2025	$	1,122
Year ended December 31, 2026	1,118
Year ended December 31, 2027	1,152
Year ended December 31, 2028	1,186
Year ended December 31, 2029	1,017
Thereafter	—
Total future minimum lease payments	5,595
Less present value discount	(293)
Total operating lease liabilities	$	5,302

The weighted-average lease term and discount rate used are as follows:


	As of
	December 31, 2024		December 31, 2023

Weighted-average remaining lease term – operating leases (in years)	4.8		5.8
Weighted-average discount rate – operating leases	1.9	%	1.9	%

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
	2024		2023
($ in thousands)
Cash paid for operating leases	$	1,142	$	850

Fair Value of Financial Instruments - Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Level 3
Nonrecurring assets:
Individually evaluated loans	$ 35,723	$ 27,127
Fair Value
Nonrecurring assets:
Individually evaluated loans	35,723	27,127
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	$ 35,723	$ 27,127

Loans - Strategic Program Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	$ 447,812	$ 358,560
Strategic Program loans held-for-sale	91,588	47,514
Retained Strategic Program loans
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	20,122	19,408
Strategic Program loans held-for-sale	91,588	47,514
Total Strategic Program loans	$ 111,710	$ 66,922

Stock-Based Compensation and Employee Benefit Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions				12 Months Ended
	Jun. 27, 2024	Jun. 20, 2019	Apr. 20, 2017	Dec. 31, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average grant-date fair value (in dollars per share)					$ 4.11
Aggregate intrinsic value of options				$ 0.3	$ 0.1
2019 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period		10 years
Additional shares authorized (in shares)	500,000
Number of shares authorized (in shares)	1,780,000
Number of shares available for grant (in shares)				445,440
2016 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period			10 years
Number of shares authorized (in shares)			299,628
Number of shares available for grant (in shares)				2,189
2019 Plan and 2016 Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period				10 years
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized stock-based compensation expense				$ 0.1
Unrecognized stock-based compensation expense remaining weighted average vesting period				1 year
Stock options \| 2019 Plan and 2016 Plan \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period				1 year
Stock options \| 2019 Plan and 2016 Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period				5 years
Restricted stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted (in dollars per shares)				$ 10.18	$ 8.63
Fair value of restricted stock				$ 1.2	$ 1.0
Unrecognized stock-based compensation expense				$ 3.2
Unrecognized stock-based compensation expense remaining weighted average vesting period				2 years 4 months 24 days
Restricted stock \| 2019 Plan and 2016 Plan \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period				1 year
Restricted stock \| 2019 Plan and 2016 Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period				5 years

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Interest income
Interest and fees on loans	$ 68,892	$ 58,445
Interest on securities	897	338
Other interest income	4,563	5,751
Total interest income	74,352	64,534
Interest expense
Interest on deposits	15,440	9,974
Other interest expense	0	1
Total interest expense	15,440	9,975
Net interest income	58,912	54,559
Provision for credit losses	11,573	11,638
Net interest income after provision for credit losses	47,339	42,921
Non-interest income
Strategic Program fees	17,762	15,914
Gain on sale of loans, net	2,036	1,684
SBA loan servicing fees, net	1,137	1,842
Change in fair value on investment in BFG	(625)	(600)
Credit enhancement income	111	0
Other miscellaneous income	2,064	2,616
Total non-interest income	22,485	21,456
Non-interest expense
Salaries and employee benefits	35,205	25,751
Professional services	4,736	4,961
Occupancy and equipment expenses	4,240	3,312
Credit enhancement expense	8	0
Other operating expenses	8,646	6,540
Total non-interest expense	52,835	40,564
Income before income taxes	16,989	23,813
Provision for income taxes	4,247	6,353
Net income	$ 12,742	$ 17,460
Earnings per share, basic (in dollars per share)	$ 0.98	$ 1.38
Earnings per share, diluted (in dollars per share)	$ 0.93	$ 1.33
Weighted average shares outstanding, basic (in shares)	12,612,455	12,488,564
Weighted average number of shares outstanding, diluted (in shares)	13,228,869	12,909,648

Investments - Unrealized Loss Position (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023
Available-for-sale:
Less than 12 months, Fair Value	$ 27,448,000
Less than 12 months, Unrealized Losses	(101,000)
12 Months or More, Fair Value	0
12 Months or More, Unrealized Losses	0
Total, Fair Value	27,448,000
Total, Unrealized Losses	(101,000)
Held-to-maturity:
Less than 12 months, Fair Value	633,000	$ 1,614,000
Less than 12 months, Unrealized Losses	(17,000)	(20,000)
12 Months or More, Fair Value	8,752,000	10,274,000
12 Months or More, Unrealized Losses	(1,499,000)	(1,564,000)
Total, Fair Value	9,385,000	11,888,000
Total, Unrealized Losses	(1,516,000)	(1,583,000)
U.S. Treasury securities
Available-for-sale:
Less than 12 months, Fair Value	27,448,000
Less than 12 months, Unrealized Losses	(101,000)
12 Months or More, Fair Value	0
12 Months or More, Unrealized Losses	0
Total, Fair Value	27,448,000
Total, Unrealized Losses	(101,000)
Mortgage-backed securities
Held-to-maturity:
Less than 12 months, Fair Value	0	680,000
Less than 12 months, Unrealized Losses	0	(16,000)
12 Months or More, Fair Value	5,164,000	5,462,000
12 Months or More, Unrealized Losses	(746,000)	(802,000)
Total, Fair Value	5,164,000	6,142,000
Total, Unrealized Losses	(746,000)	(817,000)
Collateralized mortgage obligations
Held-to-maturity:
Less than 12 months, Fair Value	633,000	934,000
Less than 12 months, Unrealized Losses	(17,000)	(4,000)
12 Months or More, Fair Value	3,588,000	4,812,000
12 Months or More, Unrealized Losses	(753,000)	(762,000)
Total, Fair Value	4,221,000	5,746,000
Total, Unrealized Losses	$ (770,000)	$ (766,000)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

The components of income tax expense consist of the following:


	December 31,
($ in thousands)	2024		2023
Current tax expense
Federal	$	3,030	$	3,446
State	1,127		992
Deferred tax expense
Federal	425		1,614
State	(335)		301
Income tax expense	$	4,247	$	6,353

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, 2024 and 2023, are as follows:


	December 31,
($ in thousands)	2024		2023
Deferred tax assets
Operating lease liabilities	$	1,302	$	1,560
Allowance for credit losses	2,274		689
Loan servicing rights	316		533
Nonqualified stock options	154		150
Restricted stock	386		240
Deferred loan fees, net	—		51
Unrealized losses on securities AFS	24		—
Other	438		61
Total deferred tax assets	4,894		3,284

Deferred tax liabilities
ROU asset	(875)		(1,063)
Deferred loan fees, net	(2,159)		—
Net book value of fixed assets	(2,020)		(2,199)
Loan trailing fees	(335)		(424)
Unrealized gains on cash flow hedges	(85)		—
Other	(319)		(346)
Total deferred tax liabilities	(5,793)		(4,032)
Deferred taxes, net	$	(899)	$	(748)

Schedule of 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, 2024 and 2023:


	December 31,
($ in thousands)	2024		2023
Federal income tax expense at statutory rates	$	3,568	$	5,001
Nondeductible compensation	84		323
State income tax expense, net	626		991
Other	(31)		38
Income tax expense	$	4,247	$	6,353

Loans - Loans Summarized to Major Risk Category (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	$ (13,176)	$ (12,888)	$ (11,985)
Loans held-for-investment, net	447,812	358,560
Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	465,233	372,215
Deferred loan fees, net	(4,245)	(767)
Allowance for credit losses	(13,176)	(12,888)
Loans held-for-investment, net	447,812	358,560
Small Business Administration Portfolio Segment \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	255,056	239,922
Small Business Administration Portfolio Segment \| Financing Receivable, Incurred Loss Methodology \| SBA
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	158,700	131,700
Commercial leases \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	70,153	38,110
Commercial, non-real estate \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	3,691	2,457
Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(788)	(956)	(876)
Residential real estate \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	51,574	38,123
Retained Strategic Program loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	20,100	19,400
Allowance for credit losses	(6,304)	(7,065)	(6,701)
Loans held-for-investment, net	20,122	19,408
Retained Strategic Program loans \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	20,122	19,408
Owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(2,834)	(3,336)	(3,030)
Owner occupied \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	41,046	20,798
Non-owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(113)	(282)	(208)
Non-owner occupied \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	1,379	2,025
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(638)	(211)	$ (65)
Consumer \| Financing Receivable, Incurred Loss Methodology
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	$ 22,212	$ 11,372

Loans - Collateral-Dependent Financial Loans (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023
Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	$ 55,000	$ 45,000
Individually evaluated loans	35,723,000	26,487,000
Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	33,575,000	26,205,000
Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	2,148,000	282,000
Construction and land development \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	0	615,000
Construction and land development \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	615,000
Construction and land development \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Residential real estate \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	10,000	0
Individually evaluated loans	7,243,000	1,585,000
Residential real estate \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	7,243,000	1,585,000
Residential real estate \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Owner occupied \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	9,000	45,000
Individually evaluated loans	23,536,000	21,643,000
Owner occupied \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	23,536,000	21,643,000
Owner occupied \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Non-owner occupied \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	2,796,000	2,362,000
Non-owner occupied \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	2,796,000	2,362,000
Non-owner occupied \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Commercial and industrial \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	1,789,000	282,000
Commercial and industrial \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Commercial and industrial \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	1,789,000	$ 282,000
Commercial leases \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	36,000
Individually evaluated loans	359,000
Commercial leases \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0
Commercial leases \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	$ 359,000

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Long-term line of credit	$ 64	$ 190
Allowance for credit losses on unfunded commitments	464	139	$ 0
Asset Pledged as Collateral \| Federal Reserve Bank Credit Lines \| Loans
Line of Credit Facility [Line Items]
Pledged amounts	240,800	0
Asset Pledged as Collateral \| Federal Reserve Bank Credit Lines \| Securities
Line of Credit Facility [Line Items]
Pledged amounts	42,600	13,000
Borrower In Custody Program
Line of Credit Facility [Line Items]
Long-term line of credit	0
Unused borrowing capacity	198,800
Line of Credit
Line of Credit Facility [Line Items]
Long-term line of credit	0	0
Federal Home Loan Bank Secured Line of Credit \| Line of Credit
Line of Credit Facility [Line Items]
Available line of credit with the FHLB	25,000	30,500
Amounts outstanding under the FHLB line of credit	0	0
Loans pledged to secure FHLB line of credit	41,600	46,900
Federal Reserve Bank, Discount Window \| Line of Credit
Line of Credit Facility [Line Items]
Current borrowing capacity	239,200	11,400
Federal Reserve Bank, Term Funding Program \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity		800
Zion Bank \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	5,000	5,000
Bank of the West \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,100	$ 1,100

Stock-Based Compensation and Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following summarizes stock option activity for the year ended December 31, 2024:


	Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2023	981,488	$	5.72	6.9	$	8,429,619

Options exercised	(45,420)	$	4.10
Options forfeited	(30,886)	$	7.47
Outstanding at December 31, 2024	905,182	$	5.74	5.9	$	9,266,286
Options vested and exercisable at December 31, 2024	766,442	$	5.23	5.6	$	8,241,070

Schedule of Restricted Stock Awards Activities

The following summarizes unvested restricted stock activity for the year ended December 31, 2024:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2023	199,208	$	10.05
Granted	419,299	$	10.18
Vested	(96,475)	$	10.39
Forfeited	(25,389)	$	10.12
Unvested as of December 31, 2024	496,643	$	10.09

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

The following tables present stock-based compensation expense recognized:


	Years Ended December 31,
($ in thousands)	2024		2023
Stock options	$	237	$	493
Restricted stock	1,809		1,553
Total	$	2,046	$	2,046

Deposits - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Deposits [Abstract]
Time deposits equal or greater than FDIC insurance limits	$ 3.2	$ 2.0

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2024
Auditor Information [Abstract]
Auditor Firm ID	173
Auditor Name	Moss Adams LLP
Auditor Location	Everett, Washington

Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Federal income tax expense at statutory rates	$ 3,568	$ 5,001
Nondeductible compensation	84	323
State income tax expense, net	626	991
Other	(31)	38
Income tax expense	$ 4,247	$ 6,353

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Subparagraph (a)
-SubTopic 20
-Topic 740
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482659/740-20-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h))
-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deferred tax assets
Operating lease liabilities	$ 1,302	$ 1,560
Allowance for credit losses	2,274	689
Loan servicing rights	316	533
Nonqualified stock options	154	150
Restricted stock	386	240
Deferred loan fees, net	0	51
Unrealized losses on securities AFS	24	0
Other	438	61
Total deferred tax assets	4,894	3,284
Deferred tax liabilities
ROU asset	(875)	(1,063)
Deferred loan fees, net	(2,159)	0
Net book value of fixed assets	(2,020)	(2,199)
Loan trailing fees	(335)	(424)
Unrealized gains on cash flow hedges	(85)	0
Other	(319)	(346)
Total deferred tax liabilities	(5,793)	(4,032)
Deferred taxes, net	$ (899)	$ (748)

Stock-Based Compensation and Employee Benefit Plans - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Stock Options
Outstanding, beginning of year (in shares)	981,488
Options exercised (in shares)	(45,420)
Options forfeited (in shares)	(30,886)
Outstanding, end of period (in shares)	905,182	981,488
Options vested and exercisable, end of year (in shares)	766,442
Weighted Average Exercise Price
Outstanding, beginning of year (in dollars per share)	$ 5.72
Options exercised (in dollars per share)	4.10
Options forfeited (in dollars per share)	7.47
Outstanding, end of period (in dollars per share)	5.74	$ 5.72
Options vested and exercisable, end of period (in dollars per share)	$ 5.23
Weighted Average Remaining Contractual Life (in years)
Outstanding	5 years 10 months 24 days	6 years 10 months 24 days
Options vested and exercisable	5 years 7 months 6 days
Aggregate Intrinsic Value
Outstanding, beginning of year	$ 8,429,619
Outstanding, end of year	9,266,286	$ 8,429,619
Options vested and exercisable	$ 8,241,070

Stock-Based Compensation and Employee Benefit Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total	$ 2,046	$ 2,046
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total	237	493
Restricted stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total	$ 1,809	$ 1,553

- 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, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Restricted cash	$ 3,100,000	$ 0
Debt securities, available-for-sale, allowance for credit loss	0
Debt securities, available-for-sale, amortized cost	30,027,000
Investment securities held-to-maturity, allowance for credit losses	0	0
Investment securities held-to-maturity, fair value	11,057,000	13,809,000
Allowance for credit losses	$ 13,176,000	$ 12,888,000
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)	13,211,640	12,493,565
Common stock, shares outstanding (in shares)	13,211,640	12,493,565

Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands	10 Months Ended	12 Months Ended
	Dec. 31, 2024 USD ($) $ / shares shares	Dec. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($)	Mar. 06, 2024 shares
Variable Interest Entity [Line Items]
Common stock repurchase program, shares authorized to be purchases (in shares) \| shares				641,832
Common stock repurchased and retired (in shares) \| shares	44,608
Common stock repurchased, value \| $	$ 500	$ 461	$ 4,741
Shares acquired, average cost per share (in dollars per share) \| $ / shares	$ 10.30
Number of reporting segments \| segment		1
Number of operating segments \| segment		1
FinWise Bank
Variable Interest Entity [Line Items]
Percentage of business acquired	100.00%	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

SBA Servicing Asset, Net (Tables)

12 Months Ended

Dec. 31, 2024

Transfers and Servicing [Abstract]

Schedule of SBA Servicing Asset Activity

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


	Years Ended December 31,
($ in thousands)	2024		2023
Balance at beginning of period	$	4,231	$	5,210
Additions to servicing asset	269		150
Amortization of servicing asset	(2,092)		(1,505)
Change in valuation allowance	865		376
Balance at end of period	$	3,273	$	4,231

SBA servicing asset, fair value	$	3,273	$	4,231

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets

Activity in the valuation allowance for the SBA servicing asset was as follows for the periods indicated:


	Years Ended December 31,
($ in thousands)	2024		2023
Balance at beginning of period	$	(2,151)	$	(2,527)

Recovery	865		376
Balance at end of period	$	(1,286)	$	(2,151)

Investments

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investments

Investment Securities Available-for-Sale, at Fair Value

The Company’s AFS investment portfolio consists of U.S. Treasury securities. The Company reports debt securities AFS on the Company’s Consolidated Balance Sheets at fair value. The amortized cost, gross unrealized gains and losses, and estimated fair value of investment securities AFS as of December 31, 2024, are summarized as follows:


	December 31, 2024
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
U.S. Treasury securities	$	30,027	$	4	$	(101)	$	29,930

The following table presents the amortized cost and estimated fair value of investment securities AFS as of the period ended, by contractual maturity:


	December 31, 2024
($ in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,478	$	2,482
Due after one year through five years	27,549		27,448


Total securities AFS	$	30,027	$	29,930

At December 31, 2024, debt securities AFS in the amount of $30.0 million were pledged as collateral for a credit line held by the Bank.

Accrued interest receivable on debt securities AFS totaled $0.5 million at December 31, 2024 and was included in accrued interest receivable on the Consolidated Balance Sheet.

Investment Securities Held-to-Maturity, at Cost

The Company's HTM investment portfolio consists of agency mortgage-backed securities and agency collateralized mortgage obligations. The Company reports debt securities HTM on the Company's Consolidated Balance Sheets at carrying value which is amortized cost. The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s debt securities HTM at December 31, 2024 and December 31, 2023, are summarized as follows:


	December 31, 2024
($ in thousands)	Amortized Cost		Allowance for Credit Losses		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	5,910	$	—	$	—	$	(746)	$	5,164
Collateralized mortgage obligations	6,656		—		8		(770)		5,893
Total securities held-to-maturity	$	12,565	$	—	$	8	$	(1,516)	$	11,057


	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

Credit Quality Indicators & Allowance for Credit Losses - HTM and AFS

On January 1, 2023, the Company adopted ASU 2016-13, which replaced the legacy U.S. GAAP other-than-temporary impairment (“OTTI”) model with an expected credit loss model (“CECL”). ASU 2016-13 requires an allowance on lifetime expected credit losses on debt securities HTM and AFS but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. For debt securities HTM and AFS, the Company evaluates the credit risk of its securities on at least a quarterly basis. The Company estimates expected credit losses on debt securities HTM and AFS on a collective basis by major security type. Accrued interest receivable on debt securities HTM and AFS is excluded from the estimate of credit losses. At December 31, 2024 and at adoption of CECL on January 1, 2023, there was no ACL related to debt securities HTM or AFS due to the composition of the portfolio which is generally considered not to have credit risk given the United States government issuance or guarantee associated with these agency securities.

The Company had twenty-two securities, consisting of eight collateralized mortgage obligations, ten mortgage-backed securities and four U.S. Treasury securities, in an unrealized loss position at December 31, 2024 and nineteen securities, consisting of nine collateralized mortgage obligations and ten mortgage-backed securities, in an unrealized loss position at December 31, 2023. The following table presents the estimated fair value and gross unrealized losses of debt securities

HTM and AFS, aggregated by category and length of time in a continuous unrealized loss position at December 31, 2024 and 2023:


	December 31, 2024
	Less than 12 months				12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale:
U.S. Treasury securities	$	27,448	$	(101)	$	—	$	—	$	27,448	$	(101)
Total	$	27,448	$	(101)	$	—	$	—	$	27,448	$	(101)

Held-to-maturity:
Mortgage-backed securities	$	—	$	—	$	5,164	$	(746)	$	5,164	$	(746)
Collateralized mortgage obligations	633		(17)		3,588		(753)		4,221		(770)
Total	$	633	$	(17)	$	8,752	$	(1,499)	$	9,385	$	(1,516)


	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	$	1,614	$	(20)	$	10,274	$	(1,564)	$	11,888	$	(1,583)

The amortized cost and estimated market value of debt securities HTM at December 31, 2024 and December 31, 2023, 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, 2024				December 31, 2023
($ 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	1,365		1,301		—		—
Due after five years through ten years	807		734		2,745		2,577
Due after ten years	10,393		9,022		12,643		11,232
Total securities held-to-maturity	$	12,565	$	11,057	$	15,388	$	13,809

At December 31, 2024, debt securities HTM in the amount of $12.6 million were pledged as collateral for a credit line held by the Bank. There were no sales or transfers of investment securities and no realized gains or losses on these securities during the years ended December 31, 2024 or 2023.

FHLB Stock

The Bank is a member of the FHLB system. As a member, we are required to maintain a minimum level of investment in FHLB stock based on a percentage of our previous year-end assets and our FHLB advances outstanding. At December 31, 2024 and December 31, 2023, the Bank owned $0.3 million and $0.2 million, respectively, of FHLB stock, which is carried at cost. The Company evaluated the carrying value of its FHLB stock investment at December 31, 2024 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

12 Months Ended

Dec. 31, 2024

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, formerly known as Utah Community Bank, and FinWise Investment, LLC. FinWise Bank was incorporated in the state of Utah on May 7, 1999. FinWise Bancorp, formerly known as 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, residential real estate loans, and commercial leases. 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, 2024 and 2023, 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 accounts of FinWise Bancorp and its wholly-owned subsidiaries, FinWise Bank and FinWise Investment, LLC. All significant inter-company balances and transactions have been eliminated in consolidation.

Use of estimates – In preparing the consolidated financial statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”), management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the date of the consolidated balance sheets and certain revenues and expenses for the period. Actual results could differ, either positively or negatively, from those estimates.

Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses (“ACL”). 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.

Reclassifications – Reclassifications have been made to prior year amounts to conform to the current year presentation. Certain of these reclassifications relate to the change in fair value of our SBA servicing asset, which was reclassified from non-interest expense to non-interest income to better align with the SBA servicing asset revenue and the associated costs. The effect of these reclassifications were not material to the previously reported consolidated financial statements.

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, 2024.

Restricted cash – The Company established a restricted cash balance required by the Company’s credit card merchant for payment processing and card management services.

Investments

Investment securities available-for-sale – U.S. Treasury securities that the Company intends to hold for an indefinite period of time, but which may be sold in response to changes in liquidity needs, interest rates, or other similar factors, are classified as available-for-sale (“AFS”). Such securities are recorded in the Company’s consolidated balance sheets at their respective fair values and increases or decreases in those values, other than credit losses, are recorded as unrealized gains or losses, respectively, and are reported as other comprehensive income (loss) in the Company’s consolidated balance sheets, rather than included in or deducted from the Company’s earnings. The Company performs a quarterly analysis of its investment securities AFS to assess and record any expected credit losses through an allowance for credit losses, limited to the amount that fair value was less than the amortized cost basis. Interest on securities classified as AFS are recorded in interest on securities in the Company’s Consolidated Statements of Income.

Investment securities held-to-maturity – Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity (“HTM”) and recorded at amortized cost.

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 is recognized through the provision for credit losses on the Company’s Consolidated Statements 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 6 - 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 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.

Loans held-for-investment – Loans held-for-investment 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 commercial 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.

Allowance for credit losses - On January 1, 2023, the Company adopted ASU 2016-13, Topic 326 which replaced the incurred loss methodology with a current expected credit losses (“CECL”) model 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 is reported as a reduction of the amortized cost basis of loans held-for-investment, 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. 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 credit and fraud losses assumed to be credit related 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. See Note 3 - Loans for more information about the Company’s Strategic Program loan portfolio.

Certain agreements with our Strategic Program Service Providers provide for a credit enhancement, which protects the Bank by indemnifying or reimbursing incurred credit and fraud losses. The Company estimates and records a provision for expected losses for these Strategic Program loans. When the provision for the credit losses is recorded, a credit enhancement asset is also recorded on the balance sheet through non-interest income (credit enhancement income) equal to the provision for credit losses estimated for the credit enhanced loans. The credit enhancement asset is reduced when payments for the credit losses charged to the ACL are taken from the Strategic Program Service Provider’s cash reserve account created to absorb the credit losses incurred. The cash reserve account is replenished monthly from cash flows due to the Program Service provider related to the credit enhanced loans.

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 expense, which is included in occupancy and equipment expenses, 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.

Lessor accounting – The Company leases commercial operating equipment to a variety of customers. At lease inception the Company determines if an arrangement is a lease. The equipment underlying the operating lease is reported at cost as commercial operating lease equipment within premises and equipment, net in the Company’s Consolidated Balance Sheets and depreciated based on their useful lives on a straight-line basis to the residual value. These residual values are reviewed annually to ensure the recorded amount does not exceed the fair market value at the lease termination. Revenue consists of the contractual lease payments and is recognized on a straight-line basis over a specified lease term. The Company also has net investments in commercial operating equipment leased to customers, which are classified as sales-type leases or direct financing leases. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit on sales-

type leases is recognized at lease commencement and recorded in other miscellaneous income. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term, yielding a constant periodic rate of return on the net investment in the lease. Sales from sales-type and operating leases are presented net of sales tax and other related taxes. Interest income is recognized over the lease term using the effective interest method.

Lessee accounting – 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.

Loans held on the Company’s Consolidated Balance Sheets are classified as either held-for-investment or held-for-sale. Held-for-sale loan sales typically occur two to four days after the origination of the loans. When the Company determines that control over the transfer of financial assets has been surrendered, the transaction will be accounted for as a completed sale in which the underlying loans are derecognized and a resulting gain or loss, if any, is recorded.

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.

Derivative instruments – In the normal course of business, the Company is exposed to interest rate fluctuations. Consistent with the Company’s strategy for financial risk management, the Company has established a program that utilizes interest rate swaps to offset the risks associated with the effects of this exposure. The Company utilizes cash flow hedge accounting treatment for interest rate swaps. Cash flow hedges are accounted for by recording the changes in the fair

value of the derivative instrument in other comprehensive income (loss) and are recognized in the consolidated statements of income when the hedged item affects earnings. Derivative instruments are recognized on the consolidated balance sheet as other assets or other liabilities, at their respective fair values. See Note 13 - Derivatives for additional information.

Stock repurchase program – On March 7, 2024, the Company announced that its Board of Directors (the “Board”) had 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 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. 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 Share Repurchase Committee, designated by the Board of Directors, will determine the actual timing, number and value of any shares repurchased in its discretion depending on a variety of factors, including but not limited to, the market price and trading volume of the Company’s common stock, general market and economic conditions, the ongoing assessment of the Company’s capital needs, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares and may be limited or terminated at any time at the Company’s discretion without notice. Since the repurchase program’s inception, the Company has repurchased and subsequently retired a total of 44,608 shares for $0.5 million at an average price of $10.30 per share.

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. The majority of our revenue-generating transactions are not subject to ASC 606, including interest generated from loans. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. 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 are received monthly in connection with continuing program services provided for 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. The assumptions used in calculating the fair value of stock option grants represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment and include consideration of historical experience. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected volatility is based on the Company's data for the expected option term. The expected dividend yield was zero as the Company is not expected to pay dividends in the foreseeable future. Restricted stock awards are valued based on the fair value of the Company’s common stock on the date of grant. The Company expenses stock-based compensation related to stock options and restricted stock awards over the requisite service period (generally the vesting period of the equity grant) using the graded-vesting method. The Company accounts for forfeitures of stock–based awards as they occur. Stock-based compensation expense is included in salaries and employee benefits on the income statement.

The table below summarizes the weighted-average assumptions used in the Black-Scholes option pricing model at the grant date for stock options granted during 2023. No stock options were granted during the year ended December 31, 2024.


	2023
Risk-free interest rate	3.68	%
Expected term in years	6
Expected volatility	44.2	%
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 EPS based on participation rights of participating securities in any undistributed earnings. Each unvested share of restricted stock 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.

Comprehensive income (loss) – Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. However, certain changes in assets and liabilities, such as unrealized gains and losses on securities AFS and unrealized gains and losses on interest rate swaps designated as cash flow hedges, are reported as a separate component of equity in the accompanying consolidated balance sheets, net of income taxes, and such items, along with net income, are components of comprehensive income (loss). The Company’s policy is to release income tax effects from accumulated other comprehensive income at such time as the earnings or loss of the related activity are recognized in earnings

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 – 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 determined it has one reportable operating segment, the Bank. The Company’s Chief Executive Officer and its President, who are together considered to be its chief operating decision maker (“CODM”), review consolidated financial information to manage the

Company’s operations. Since the Company operates and manages its business in one operating and one reportable segment, all required financial segment information can be found in the consolidated financial statements and the notes thereto.

Recently adopted accounting pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which requires disclosure, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. The ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in the update and existing segment disclosures in Topic 280. The Company adopted ASU 2023-07 on January 1, 2024 on a retrospective basis. The adoption modified disclosures but did not have an impact on the Company's consolidated financial statements.

Recent accounting pronouncements

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. ASU 2023-09 improves the transparency of income tax disclosures by requiring entities to provide greater disaggregation of information on income taxes paid and on the rate reconciliation disclosures. This pronouncement also requires qualitative discussion of the primary state and local jurisdictions for income taxes and the type of reconciling categories. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its disclosures.

Premises and Equipment and Leases - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 23,281	$ 18,451
Commercial operating lease equipment	12,874	9,300
Less accumulated depreciation	(6,953)	(3,821)
Premises and equipment, net	16,328	14,630
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total premises and equipment	3,700	3,700
Furniture, fixtures, and equipment
Property, Plant and Equipment [Line Items]
Total premises and equipment	6,102	3,298
Construction in progress
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 605	$ 2,153

Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Federal Home Loan Bank Secured Line of Credit

As of December 31, 2024 and December 31, 2023, the Bank’s available line of credit with the FHLB to borrow funds was $25.0 million and $30.5 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, 2024 and December 31, 2023, no amounts were outstanding under the line of credit. Loans totaling $41.6 million and $46.9 million were pledged to secure the FHLB line of credit as of December 31, 2024 and December 31, 2023, respectively.

Other Lines of Credit

At December 31, 2024 and December 31, 2023, the Bank had the ability to borrow $239.2 million and $11.4 million, respectively, from the FRB’s Discount Window on a collateralized basis. Loans totaling $240.8 million and $0.0 million and securities of $42.6 million and $13.0 million were pledged to secure the line of credit with the FRB’s Discount Window as of December 31, 2024 and December 31, 2023, respectively. The FRB’s Bank Term Funding Program was officially closed in March 2024. At December 31, 2023, the Bank had the ability to access $0.8 million from the FRB’s Bank Term Funding Program on a collateralized basis. Through Zions Bank, the Bank had an available unsecured line of credit of $5.0 million at December 31, 2024 and December 31, 2023. 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, 2024 and December 31, 2023. The Bank had no outstanding balances on such unsecured or secured lines of credit as of December 31, 2024 and December 31, 2023.

Borrower-In-Custody (“BIC”)

During 2024, the Bank was accepted into the FRB’s borrower-in-custody program, which allows financial institutions to pledge loans as collateral for FRB’s Discount Window advances, that are not pledged to the FHLB, while retaining possession or control of the collateral. As of December 31, 2024, the Bank had secured unused borrowing capacity of $198.8 million and had $240.8 million in loans that were pledged as collateral under the BIC program (the $198.8 million unused borrowing capacity is included in the $239.2 million of funds available to borrow from the FRB’s Discount Window in the preceding paragraph). The Company had no advances outstanding under the BIC program as of December 31, 2024.

Financial Instruments with Off-Balance Sheet Risk

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. The Company’s commitments to extend credit as of the periods indicated are summarized below. Since commitments associated with commitments to extend credit may expire unused, the amounts shown in the table below do not necessarily reflect the actual future cash funding requirements.

At December 31, 2024 and December 31, 2023, financial instruments with off-balance-sheet risk were as follows:


	December 31,		December 31,
($ in thousands)	2024		2023
Revolving, open-end lines of credit	$	2,365	$	1,630
Undisbursed commercial real estate loans	23,200		17,421
Other unused commitments	830		724
Total unfunded loan commitments	$	26,395	$	19,775

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 $0.5 million and $0.1 million as of December 31, 2024 and December 31, 2023, respectively.

Commitments and Contingencies - Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	$ 26,395	$ 19,775
Revolving, open-end lines of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	2,365	1,630
Undisbursed commercial real estate loans
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	23,200	17,421
Other unused commitments
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	$ 830	$ 724

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2024

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). U.S. 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. There were no transfers between fair value levels for the years ended December 31, 2024 and 2023.

The following methods were used to estimate the fair value of each class of financial instruments on a recurring basis:

Investment securities available-for-sale: Investment securities AFS consist of U.S. Treasury securities and are carried at fair value. The Company estimates the fair value of investment securities AFS using current active market quotes, if available, which are considered Level 1 measurements. Level 1 measurements include securities issued by the U.S. Treasury.

Investment in BFG: The Company’s valuation technique utilized the average of the discounted cash flow method and the Guideline Public Company method. A 20% lack of marketability discount was applied to the valuation as well as a 4.50% discount to non-voting shares to arrive at fair value as of December 31, 2024 and December 31, 2023. The calculation of fair value utilized significant unobservable inputs, including projected cash flows, growth rates, and discount rates. See Note 6 - Investment in Business Funding Group, LLC and Note 14 - Related Party Transactions for more information.

Derivative instruments: The Company’s derivative instruments consist of interest rate swaps accounted for as cash flow hedges. The Company’s derivative instruments are carried at fair value and considered Level 2 measurements. The Company measures fair value of interest rate swaps utilizing market observable inputs, such as forecasted yield curves.

The table below presents the Company’s financial instruments valued on a recurring basis as of the periods indicated:


		December 31, 2024		December 31, 2023
($ in thousands)	Level	Estimated Fair Value		Estimated Fair Value
Financial assets:
U.S. Treasury securities	1	$	29,930	$	—
Investment in BFG	3	$	7,700	$	4,200
Derivative asset	2	$	509	$	—

The table below presents a reconciliation of our investment in BFG classified as a Level 3 financial instrument and measured at fair value on a recurring basis for the periods indicated:


	Years Ended December 31,
($ in thousands)	2024		2023
Beginning balance	$	4,200	$	4,800
Purchase of BFG ownership interest	4,125		—
Change in fair value of BFG	(625)		(600)
Ending balance	$	7,700	$	4,200

The table below presents the Company’s financial instruments valued on a nonrecurring basis as of the periods indicated:


($ in thousands)			Fair Value Measurements Using
Description of Financial Instrument	Fair Value		Level 1		Level 2		Level 3
December 31, 2024
Nonrecurring assets:
Individually evaluated loans	$	35,723	$	—	$	—	$	35,723
December 31, 2023
Nonrecurring assets:
Individually evaluated loans	$	27,127	$	—	$	—	$	27,127

Individually evaluated loans – The loan amount above represents loans individually evaluated that have been adjusted to the lower of cost or 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, if any, represents charge-offs on loans when the fair value of the collateral is less than the carrying amount of the loan.

Quantitative information for Level 3 fair value measurements – The following table presents information about quantitative inputs and assumptions used to fair value Level 3 nonrecurring assets as of December 31, 2024 and 2023:

($ in thousands)

Fair Value

Valuation
Technique

Unobservable
Input

Range
(Weighted Average)

December 31, 2024

Individually evaluated loans

35,723

Market
comparable

Discount to appraisal value for estimated selling costs

11.40

December 31, 2023

Individually evaluated loans

27,127

Market
comparable

Discount to appraisal value for estimated selling costs

7.57

The range and weighted average of the significant unobservable inputs used to fair value the investment in BFG as of December 31, 2024 and as of December 31, 2023 are shown in the following table:


($ in thousands)	December 31, 2024 Range (Weighted Average)		December 31, 2023 Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate	15.3	%	11.0	%
Expense growth rate	14.9	%	13.4	%
Discount rate	27.5	%	20.0	%

Guideline Public Company
Multiples of enterprise value	3.5x to 5.8x		3.5x to 5.5x

The tables below present the carrying amount and estimated fair value of the Company's financial instruments as of the periods indicated:


	December 31, 2024				Fair Value Measurements Using
($ in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	109,162	$	109,162	$	109,162	$	—	$	—
Investment securities available-for-sale	29,930		29,930		29,930		—		—
Investment securities held-to-maturity	12,565		11,057		—		11,057		—
Investment in FHLB stock	349		349		—		349		—
Loans held-for-investment, net	447,812		478,919		—		—		478,919
Strategic Program loans held-for-sale	91,588		91,588		—		91,588		—
Accrued interest receivable	3,566		3,566		—		3,566		—
SBA servicing asset, net	3,273		3,273		—		3,273		—
Investment in BFG	7,700		7,700		—		—		7,700
Derivative asset	509		509		—		509		—
Financial liabilities:
Total deposits	544,952		528,253		—		528,253		—
Accrued interest payable	1,494		1,494		—		1,494		—
PPPLF	64		64		—		64		—


	December 31, 2023				Fair Value Measurements Using
($ in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	116,975	$	116,975	$	116,975	$	—	$	—
Investment securities held-to-maturity	15,388		13,809		—		13,809		—
Investment in FHLB stock	238		238		—		238		—
Loans held-for-investment, net	358,560		360,032		—		—		360,032
Strategic Program loans held-for-sale	47,514		47,509		—		47,509		—
Accrued interest receivable	3,573		3,573		—		3,573		—
SBA servicing asset, net	4,231		4,231		—		4,231		—
Investment in BFG	4,200		4,200		—		—		4,200
Financial liabilities:
Total deposits	404,833		394,195		—		394,195		—
Accrued interest payable	619		619		—		619		—
PPPLF	190		190		—		190		—

- 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

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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-Name Accounting Standards Codification
-Section 55
-Paragraph 100
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-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 2E
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Section 50
-Paragraph 6A
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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+ Details

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical)	12 Months Ended
	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Accounting Standards Update Flag	Accounting Standards Update 2016-13 [Member]

- Definition

Indicates amendment to accounting standards.

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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476166/350-60-65-1

Reference 80: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-1

+ Details

Loans - Modified Loans (Details) - Payment Deferral - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Outstanding Balance	$ 761
Owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal deferment (Months)	11 months
Outstanding Balance	$ 241
% of Total Loan Type	0.13%
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal deferment (Months)	11 months
Outstanding Balance	$ 367
% of Total Loan Type	0.83%
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal deferment (Months)	11 months	12 months
Outstanding Balance	$ 153	$ 156
% of Total Loan Type	0.25%	0.30%

Condensed Financial Statements of Parent Company - Statement of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Non-interest income
Change in fair value on investment in BFG	$ (625)	$ (600)
Other miscellaneous income	2,064	2,616
Total non-interest income	22,485	21,456
Non-interest expense
Salaries and employee benefits	35,205	25,751
Professional services	4,736	4,961
Other operating expenses	8,646	6,540
Total non-interest expense	52,835	40,564
Income before income taxes	16,989	23,813
Income tax benefit	4,247	6,353
Net income	12,742	17,460
Parent Company
Non-interest income
Change in fair value on investment in BFG	(625)	(600)
Equity in undistributed earnings of subsidiary	17,960	21,992
Other miscellaneous income	630	685
Total non-interest income	17,965	22,077
Non-interest expense
Salaries and employee benefits	4,606	3,565
Professional services	1,273	1,765
Other operating expenses	943	860
Total non-interest expense	6,822	6,190
Income before income taxes	11,143	15,887
Income tax benefit	(1,599)	(1,574)
Net income	$ 12,742	$ 17,461

Income Taxes - Components Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Current tax expense
Federal	$ 3,030	$ 3,446
State	1,127	992
Deferred tax expense
Federal	425	1,614
State	(335)	301
Income tax expense	$ 4,247	$ 6,353

- Definition

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

+ References

+ Details

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	AOCI Attributable to Parent
Beginning balance (in shares) at Dec. 31, 2022			12,831,345
Beginning balance at Dec. 31, 2022	$ 140,459	$ (212)	$ 13	$ 54,614	$ 85,832	$ (212)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense (in shares)			168,821
Stock-based compensation expense	2,046			2,046
Stock options exercised, net (in shares)			17,640
Stock options exercised, net	44			44
Common stock repurchased and retired (in shares)			(524,241)
Common stock repurchased and retired	(4,741)		$ (1)	(5,504)	764
Other comprehensive income	0
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		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense (in shares)			393,910
Stock-based compensation expense	$ 2,046			2,046
Stock options exercised, net (in shares)	45,420		29,597
Stock options exercised, net	$ 25			25
Common stock repurchased and retired (in shares)			(44,608)
Common stock repurchased and retired	(461)		$ 0	(469)	8
BFG ownership purchase (in shares)			339,176
BFG ownership purchase	4,125		$ 1	4,124
Other comprehensive income	187						187
Net income	12,742				12,742
Ending balance (in shares) at Dec. 31, 2024			13,211,640
Ending balance at Dec. 31, 2024	$ 173,720		$ 13	$ 56,926	$ 116,594		$ 187

Premises and Equipment and Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Cash paid for operating leases	$ 1,142	$ 850

Loans (Tables)

12 Months Ended

Dec. 31, 2024

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Loans Summarized to Major Risk Category

Loans held-for-investment outstanding by general ledger classification as of December 31, 2024 and December 31, 2023, consisted of the following:


	December 31,		December 31,
	2024		2023
($ in thousands)
SBA(1)	$	255,056	$	239,922
Commercial leases	70,153		38,110
Commercial, non-real estate	3,691		2,457
Residential real estate	51,574		38,123
Strategic Program loans	20,122		19,408
Commercial real estate:
Owner occupied	41,046		20,798
Non-owner occupied	1,379		2,025
Consumer	22,212		11,372
Total loans held-for-investment, gross	$	465,233	$	372,215
Deferred loan fees, net	(4,245)		(767)
Allowance for credit losses	(13,176)		(12,888)
Loans held-for-investment, net	$	447,812	$	358,560

(1) Included in the SBA loans held-for-investment above are $158.7 million and $131.7 million of loans guaranteed by the SBA as of December 31, 2024 and December 31, 2023, respectively.

These classifications, which in general are based upon the nature of the collateral and type of borrower, are different than the classifications adopted for other financial reporting purposes, which are based upon the proposed use of the loan proceeds. The following pool segments identified as of December 31, 2024 and 2023 are based on the CECL methodology:


	December 31,		December 31,
	2024		2023
($ in thousands)
Construction and land development	$	42,331	$	28,330
Residential real estate	61,316		51,428
Residential real estate multifamily	1,692		647
Commercial real estate:
Owner occupied	190,286		186,550
Non-owner occupied	12,849		15,354
Commercial and industrial	44,329		21,399
Consumer	22,155		10,989
Lease financing receivables	70,153		38,110
Retained Strategic Program loans	20,122		19,408
Total loans held-for-investment, gross	$	465,233	$	372,215

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of the periods indicated:


($ in thousands)			Collateral Type
As of December 31, 2024	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	—	$	—	$	—
Residential real estate	10		7,243		—		7,243
Commercial real estate:
Owner occupied	9		23,536		—		23,536
Non-owner occupied	—		2,796		—		2,796
Commercial and industrial	—		—		1,789		1,789
Commercial leases	36		—		359		359
Total	$	55	$	33,575	$	2,148	$	35,723

The amount of collateral-dependent loans as of December 31, 2024 include $18.9 million of SBA 7(a) loan balances that are guaranteed by the SBA.


($ 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

Schedule of Strategic Program Loans Retained and Held-for-sale

Strategic Program loans retained and held-for-sale as of December 31, 2024 and December 31, 2023, are summarized as follows:


	December 31,		December 31,
	2024		2023
($ in thousands)
Retained Strategic Program loans	$	20,122	$	19,408
Strategic Program loans held-for-sale	91,588		47,514
Total Strategic Program loans	$	111,710	$	66,922

Schedule of Changes in Allowance for Credit Losses

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


	Year Ended December 31, 2024
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	316	$	58	$	—	$	—	$	374
Residential real estate	956		64		(297)		65		788
Residential real estate multifamily	6		32		—		—		38
Commercial real estate:
Owner occupied	3,336		203		(1,039)		334		2,834
Non-owner occupied	282		52		(221)		—		113
Commercial and industrial	361		1,211		(889)		17		700
Consumer	211		555		(134)		6		638
Lease financing receivables	355		1,233		(293)		92		1,387
Retained Strategic Program loans	7,065		7,840		(9,796)		1,195		6,304
Total allowance for credit losses on financing receivables	$	12,888	$	11,248	$	(12,669)	$	1,709	$	13,176

Unfunded lending commitments	139		325		—		—		464
Total allowance for credit losses	$	13,027	$	11,573	$	(12,669)	$	1,709	$	13,640


	Year Ended December 31, 2023
($ in thousands)	Beginning Balance		Impact of ASU 2016-13 adoption		Provision for (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
Lease financing receivables	339		(105)		121		—		—		355
Retained Strategic Program loans	6,701		1,131		9,125		(10,946)		1,054		7,065
Total allowance for credit losses on financing receivables	$	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

Schedule of Nonaccrual and Past Due Loans

Nonaccrual and past due loans are summarized below as of December 31, 2024 and December 31, 2023:


December 31, 2024
	Loans Past Due and Still Accruing
($ in thousands)	30-89 Days Past Due		90 Days and Greater		Total		Nonaccrual Loans with no ACL(1)		Nonaccrual Loans with ACL		Current Loans		Total Loans
Construction and land development	$	—	$	—	$	—	$	—	$	—	$	42,331	$	42,331
Residential real estate	—		—		—		7,141		101		54,074		61,316
Residential real estate multifamily	—		—				—		—		1,692		1,692
Commercial real estate:					—
Owner occupied	2,070		—		2,070		17,435		6,102		164,679		190,286
Non-owner occupied	—		—		—		2,796		—		10,053		12,849
Commercial and industrial	—		—		—		1,788		—		42,541		44,329
Consumer	286		13		299		—		—		21,856		22,155
Commercial leases	279		—		279		158		202		69,513		70,153
Retained Strategic Program loans	1,553		62		1,615		—		—		18,507		20,122
Total	$	4,188	$	75	$	4,263	$	29,318	$	6,405	$	425,246	$	465,233

(1) Included in the nonaccrual loan balances are $18.9 million of SBA 7(a) loan balances guaranteed by the SBA.


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

Schedule of Outstanding Loan Balances Categorized by Credit Quality Indicators


	Loans and Leases Amortized Cost Basis by Origination Year
December 31, 2024	2024		2023		2022		2021		Prior		Revolving Loans		Total
($ in thousands)
Construction and land development
Pass	$	18,008	$	9,080	$	12,687	$	2,556	$	—	$	—	42,331
Watch	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Total	18,008		9,080		12,687		2,556		—		—		42,331
Current period gross writeoff	—		—		—		—		—		—		—

Residential real estate


Pass	4,025	1,172	575	1,332	1,655	—	8,759
Watch	14,268	18,766	4,134	1,103	1,333	—	39,604
Special Mention	—	3,719	1,758	—	80	—	5,557
Substandard	—	—	7,129	50	217	—	7,396
Total	18,293	23,657	13,596	2,485	3,285	—	61,316
Current period gross writeoff	—	—	—	(252)	(45)	—	(297)

Residential real estate multifamily
Pass	1,039	293	256	78	—	—	1,666
Watch	—	—	—	—	26	—	26
Special Mention	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—
Total	1,039	293	256	78	26	—	1,692
Current period gross writeoff	—	—	—	—	—	—	—

Commercial real estate-owner occupied
Pass	26,160	3,897	3,468	1,180	9,112	—	43,817
Watch	25,137	51,350	28,462	5,904	3,342	—	114,195
Special Mention	—	4,553	1,736	—	2,207	—	8,496
Substandard	—	16,150	5,142	1,414	1,072	—	23,778
Total	51,297	75,950	38,808	8,498	15,733	—	190,286
Current period gross writeoff	—	(364)	(369)	(109)	(197)	—	(1,039)

Commercial real estate-non-owner occupied
Pass	36	—	1,254	—	343	—	1,633
Watch	1,215	4,111	1,841	1,117	136	—	8,420
Special Mention	—	—	—	—	—	—	—
Substandard	—	—	2,796	—	—	—	2,796
Total	1,251	4,111	5,891	1,117	479	—	12,849
Current period gross writeoff	—	—	(221)	—	—	—	(221)

Commercial and industrial
Pass	3,588	336	529	322	463	—	5,238
Watch	23,559	9,134	2,945	442	606	—	36,686
Special Mention	—	—	217	—	32	—	249
Substandard	—	1,438	351	—	367	—	2,156
Total	27,147	10,908	4,042	764	1,468	—	44,329
Current period gross writeoff	—	(393)	(227)	(178)	(91)	—	(889)

Consumer
Pass	15,951	4,294	1,257	319	286	—	22,107
Watch	43	5	—	—	—	—	48
Special Mention	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—
Total	15,994	4,299	1,257	319	286	—	22,155


Current period gross writeoff	—		(65)		(31)		(19)		(19)		—		(134)

Lease financing receivables
Pass	43,279		22,456		4,338		—		80		—		70,153
Watch	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Total	43,279		22,456		4,338		—		80		—		70,153
Current period gross writeoff	—		(293)		—		—		—		—		(293)

Retained Strategic Program loans
Pass	—		—		—		—		—		—		—
Watch	—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—
Not Rated	17,084		1,540		1,109		389		—		—		20,122
Total	17,084		1,540		1,109		389		—		—		20,122
Current period gross writeoff	(3,801)		(4,683)		(927)		(385)		—		—		(9,796)

Total portfolio loans receivable, gross	$	193,392	$	152,294	$	81,984	$	16,206	$	21,357	$	—	$	465,233
Total current period gross writeoff	$	(3,801)	$	(5,798)	$	(1,775)	$	(943)	$	(352)	$	—	$	(12,669)


	Loans and Leases Amortized Cost Basis by Origination Year
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)

Lease financing receivables
Pass	31,313	6,559	—	238	—	38,110
Watch	—	—	—	—	—	—
Special Mention	—	—	—	—	—	—
Substandard	—	—	—	—	—	—
Total	31,313	6,559	—	238	—	38,110
Current period gross writeoff	—	—	—	—	—	—



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 writeoff	(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 writeoff	$	(4,181)	$	(6,415)	$	(1,289)	$	(540)	$	—	$	(12,425)

Schedule of Loans Modified and Recorded as TDR's


	As of December 31, 2024
($ in thousands)	Principal deferment (Months)	Outstanding Balance		% of Total Loan Type
Commercial real estate - owner occupied	11 months	$	241	0.13	%
Commercial and industrial	11 months	$	367	0.83	%
Residential real estate	11 months	$	153	0.25	%
Total		$	761

In the year ended December 31, 2023 there was one material loan modification reportable under the new guidance. This loan did not go into default during the twelve months following its modification.

As of December 31, 2023

($ in thousands)

Principal deferment (Months)

Outstanding Balance

% of Total Loan Type

Residential real estate

12 months

156

0.30

Investments (Tables)

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Debt Securities, Available-for-Sale

The amortized cost, gross unrealized gains and losses, and estimated fair value of investment securities AFS as of December 31, 2024, are summarized as follows:


	December 31, 2024
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
U.S. Treasury securities	$	30,027	$	4	$	(101)	$	29,930

Schedule of Amortized Cost and Estimated Market Value of Debt Securities

The following table presents the amortized cost and estimated fair value of investment securities AFS as of the period ended, by contractual maturity:


	December 31, 2024
($ in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,478	$	2,482
Due after one year through five years	27,549		27,448


Total securities AFS	$	30,027	$	29,930


	December 31, 2024				December 31, 2023
($ 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	1,365		1,301		—		—
Due after five years through ten years	807		734		2,745		2,577
Due after ten years	10,393		9,022		12,643		11,232
Total securities held-to-maturity	$	12,565	$	11,057	$	15,388	$	13,809

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

The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s debt securities HTM at December 31, 2024 and December 31, 2023, are summarized as follows:


	December 31, 2024
($ in thousands)	Amortized Cost		Allowance for Credit Losses		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	5,910	$	—	$	—	$	(746)	$	5,164
Collateralized mortgage obligations	6,656		—		8		(770)		5,893
Total securities held-to-maturity	$	12,565	$	—	$	8	$	(1,516)	$	11,057


	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

Schedule of Fair Value and Unrealized Losses of Securities in Unrealized Loss Position

The following table presents the estimated fair value and gross unrealized losses of debt securities

HTM and AFS, aggregated by category and length of time in a continuous unrealized loss position at December 31, 2024 and 2023:


	December 31, 2024
	Less than 12 months				12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale:
U.S. Treasury securities	$	27,448	$	(101)	$	—	$	—	$	27,448	$	(101)
Total	$	27,448	$	(101)	$	—	$	—	$	27,448	$	(101)

Held-to-maturity:
Mortgage-backed securities	$	—	$	—	$	5,164	$	(746)	$	5,164	$	(746)
Collateralized mortgage obligations	633		(17)		3,588		(753)		4,221		(770)
Total	$	633	$	(17)	$	8,752	$	(1,499)	$	9,385	$	(1,516)


	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	$	1,614	$	(20)	$	10,274	$	(1,564)	$	11,888	$	(1,583)

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

- 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
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Capital Requirements

12 Months Ended

Dec. 31, 2024

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, 2024 and December 31, 2023, that the Bank’s capital levels exceed the regulatory floors required to be classified as a well-capitalized bank.

As of December 31, 2024 and December 31, 2023, 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 presents the actual and required capital amounts and ratios for the Bank as of the periods indicated:


	Actual				Well-Capitalized Requirement
($ in thousands)	Amount		Ratio		Amount		Ratio
December 31, 2024
Leverage ratio (CBLR election)	$	135,375	20.6	%	$	59,196	9.0	%
December 31, 2023
Leverage ratio (CBLR election)	$	116,108	20.7	%	$	50,441	9.0	%

Bank Dividends

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 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. 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 does not intend 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 capital ratio requirements are met. The Company plans to maintain capital ratios that meet or exceed 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

Loans - Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	$ 465,233	$ 372,215
Nonaccrual Loans with no ACL	29,318	25,872
Nonaccrual Loans with ACL	6,405	640
Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	425,246	341,558
Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	4,263	4,145
30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	4,188	3,705
90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	75	440
Construction and land development
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	42,331	28,330
Nonaccrual Loans with no ACL	0	0
Nonaccrual Loans with ACL	0	0
Construction and land development \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	42,331	26,385
Construction and land development \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	1,945
Construction and land development \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	1,648
Construction and land development \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	297
Residential real estate
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	61,316	51,428
Nonaccrual Loans with no ACL	7,141	1,585
Nonaccrual Loans with ACL	101	0
Residential real estate \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	54,074	49,820
Residential real estate \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	23
Residential real estate \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	23
Residential real estate \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Residential real estate multifamily
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	1,692	647
Nonaccrual Loans with no ACL	0	0
Nonaccrual Loans with ACL	0	0
Residential real estate multifamily \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	1,692	647
Residential real estate multifamily \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross		0
Residential real estate multifamily \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Residential real estate multifamily \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Owner occupied
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	190,286	186,550
Nonaccrual Loans with no ACL	17,435	21,643
Nonaccrual Loans with ACL	6,102	640
Owner occupied \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	164,679	164,267
Owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	2,070	0
Owner occupied \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	2,070	0
Owner occupied \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Non-owner occupied
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	12,849	15,354
Nonaccrual Loans with no ACL	2,796	2,362
Nonaccrual Loans with ACL	0	0
Non-owner occupied \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	10,053	12,992
Non-owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Non-owner occupied \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Non-owner occupied \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	44,329	21,399
Nonaccrual Loans with no ACL	1,788	282
Nonaccrual Loans with ACL	0	0
Commercial and industrial \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	42,541	21,117
Commercial and industrial \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Commercial and industrial \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Commercial and industrial \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Consumer
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	22,155	10,989
Nonaccrual Loans with no ACL	0	0
Nonaccrual Loans with ACL	0	0
Consumer \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	21,856	10,860
Consumer \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	299	128
Consumer \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	286	81
Consumer \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	13	47
Commercial leases
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	70,153	38,110
Nonaccrual Loans with no ACL	158	0
Nonaccrual Loans with ACL	202	0
Commercial leases \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	69,513	38,110
Commercial leases \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	279	0
Commercial leases \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	279	0
Commercial leases \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Retained Strategic Program loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	20,122	19,408
Nonaccrual Loans with no ACL	0	0
Nonaccrual Loans with ACL	0	0
Retained Strategic Program loans \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	18,507	17,359
Retained Strategic Program loans \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	1,615	2,049
Retained Strategic Program loans \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	1,553	1,953
Retained Strategic Program loans \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	62	96
Small Business Administration Portfolio Segment \| SBA
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans with no ACL	$ 18,900	$ 15,000

Derivatives and Hedging Activities - Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Amount of Gain Recognized in OCI on Derivative	$ 509	$ 0
Amount of Gain Reclassified from Accumulated OCI into Income	164	0
Total amount of expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded	15,440	$ 9,974
Interest rate swaps
Derivative [Line Items]
Amount of Gain Recognized in OCI on Derivative	509
Amount of Gain Reclassified from Accumulated OCI into Income	164
Interest rate swaps \| Cash Flow Hedging
Derivative [Line Items]
Total amount of expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded	$ 164

Loans - Allowance for Credit Loss by Loan Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	$ 465,233	$ 372,215
Construction and land development
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	42,331	28,330
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	61,316	51,428
Residential real estate multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	1,692	647
Owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	190,286	186,550
Non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	12,849	15,354
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	44,329	21,399
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	22,155	10,989
Lease financing receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	70,153	38,110
Retained Strategic Program loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	$ 20,122	$ 19,408

Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2024, such derivatives were used to hedge the variable cash flows associated with existing variable-rate deposits.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (“OCI”) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated OCI related to derivatives will be reclassified to interest on deposits as interest payments are made on the Company’s variable-rate deposits. During the twelve months following December 31, 2024, the Company estimates that an additional $0.3 million will be reclassified as a reduction to interest expense.

Fair Value of Derivative Instruments on the Consolidated Balance Sheet

The table below presents the notional amount, location, and fair value of the Company’s derivative financial instruments on the Consolidated Balance Sheet as of December 31, 2024:

Derivative Assets

As of December 31, 2024

($ in thousands)

Notional Amount

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate swaps

80,000

Other assets

509

Total

509

Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income

The table below presents the pre-tax effect of cash flow hedge accounting on accumulated other comprehensive income as of December 31, 2024:


	Year Ended December 31, 2024
	Amount of Gain Recognized in OCI on Derivative		Location of Gain Recognized from Accumulated OCI into Income	Amount of Gain Reclassified from Accumulated OCI into Income
Derivatives in Cash Flow Hedging Relationships:
Interest rate swaps	$	509	Interest on deposits	$	164
Total	$	509		$	164

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the year ended December 31, 2024:


	Location and Amount of Gain Recognized in Income on Cash Flow Hedging Relationships
	2024
Location of gain recognized in income	Interest on deposits
Total amount of expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded	$	164

The effects of cash flow hedging:
Interest rate swaps:
Amount of gain reclassified from accumulated OCI into income	$	164

Offsetting Derivative Assets


As of December 31, 2024							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Received		Net Amount
Assets:
Interest rate swaps	$	509	$	—	$	509		$	—	$	—	$	509

Investments - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 2,478
Due after one year through five years	27,549
Total securities AFS	30,027
Estimated Fair Value
Due in one year or less	2,482
Due after one year through five years	27,448
Total securities AFS	$ 29,930	$ 0

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

+ Details

Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deposits [Abstract]
Year ended December 31, 2025	$ 245,180
Year ended December 31, 2026	26,676
Year ended December 31, 2027	2,953
Year ended December 31, 2028	3,857
Year ended December 31, 2029	31,437
Thereafter	10,668
Total	$ 320,771	$ 238,995

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net income	$ 12,742	$ 17,460
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Depreciation and amortization	5,289	3,811
Provision for credit losses	11,573	11,638
Noncash operating lease cost	729	748
Net (accretion) amortization in securities discounts and premiums	(25)	1
Additions to servicing asset	(269)	(150)
Gain on sale of loans, net	(2,036)	(1,684)
Originations of Strategic Program loans held-for-sale	(4,829,497)	(4,077,855)
Proceeds from sale of Strategic Program loans held-for-sale	4,785,423	4,053,929
Change in fair value of BFG	625	600
Recovery of SBA servicing asset	(865)	(376)
Stock-based compensation expense	2,046	2,046
Deferred income taxes	90	1,915
Net changes in:
Accrued interest receivable	7	(1,755)
Other assets	(1,770)	(6,448)
Accrued interest payable	875	565
Operating lease liabilities	(994)	(724)
Other liabilities	1,066	8,544
Net cash (used in) provided by operating activities	(14,991)	12,265
Cash flows from investing activities:
Net increase in loans receivable	(64,995)	(114,902)
Purchase of lease pools	(35,831)	(29,606)
Proceeds from sale of loans and leases	632	0
Investment in equity securities	0	(18)
Purchase of investment securities available-for-sale	(30,018)	0
Purchase of bank premises and equipment, net	(4,895)	(7,458)
Proceeds from maturities and paydowns of securities held-to-maturity	2,839	1,843
Purchases of securities held-to-maturity	0	(2,939)
(Purchase) redemption of FHLB stock	(111)	210
Net cash used in investing activities	(132,379)	(152,870)
Cash flows from financing activities:
Net increase in deposits	140,119	161,835
Common stock repurchased	(461)	(4,741)
Proceeds from exercise of stock options	25	44
Repayment of PPP Liquidity Facility	(126)	(125)
Net cash provided by financing activities	139,557	157,013
Net change in cash, cash equivalents and restricted cash	(7,813)	16,408
Cash, cash equivalents and restricted cash, beginning of the period	116,975	100,567
Cash, cash equivalents and restricted cash, end of the period	109,162	116,975
Supplemental disclosures of cash flow information:
Cash paid for income taxes	8,057	6,626
Cash paid for interest	14,565	9,410
Supplemental disclosures of noncash investing and financing activities:
Increase in BFG investment in exchange for shares of the Company's common stock	$ 4,125	$ 0

Deposits

12 Months Ended

Dec. 31, 2024

Deposits [Abstract]

Deposits

Major classes of deposits are as follows:


	December 31,
	2024		2023
($ in thousands)
Demand	$	198,185	$	145,544
Savings	9,287		8,633
Money markets	16,709		11,661
Time certificates of deposit	320,771		238,995
Total deposits	$	544,952	$	404,833

The aggregate amount that exceed the $250 thousand insurance limit of time deposits at December 31, 2024 and 2023 were $3.2 million and $2.0 million, respectively.

At December 31, 2024, the scheduled maturities of time deposits are as follows ($ in thousands):


Year ended December 31, 2025	$	245,180
Year ended December 31, 2026	26,676
Year ended December 31, 2027	2,953
Year ended December 31, 2028	3,857
Year ended December 31, 2029	31,437
Thereafter	10,668
Total	$	320,771

Premises and Equipment and Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 3,200	$ 2,300
Depreciation expense	1,600	1,000
Premises and equipment, net	16,328	14,630
Rental income	2,200	1,300
Operating lease expense	962	911
Commercial operating lease equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, net	$ 10,400	$ 8,200

Stock-Based Compensation and Employee Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Minimum age of employees to participate in plan	21 years
Minimum required service period to participate in plan	1 year
Profit sharing contributions	$ 1.1	$ 0.6

Fair Value of Financial Instruments - Investment in BFG Level 3 Recurring Asset (Details) - Level 3 - Fair Value, Recurring	Dec. 31, 2024	Dec. 31, 2023
Discounted Cash Flows \| Revenue growth rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.153	0.110
Discounted Cash Flows \| Expense growth rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.149	0.134
Discounted Cash Flows \| Discount rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.275	0.200
Guideline Public Company \| Multiples of enterprise value \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	3.5	3.5
Guideline Public Company \| Multiples of enterprise value \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	5.8	5.5

Premises and Equipment and Leases - Weighted-Average Lease Term and Discount Rate (Details)	Dec. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Weighted-average remaining lease term – operating leases (in years)	4 years 9 months 18 days	5 years 9 months 18 days
Weighted-average discount rate – operating leases	1.90%	1.90%

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

Schedule of Weighted Average Assumptions used in Black-Scholes Option Pricing Model


	2023
Risk-free interest rate	3.68	%
Expected term in years	6
Expected volatility	44.2	%
Expected dividend yield	—

Condensed Financial Statements of Parent Company - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net income	$ 12,742	$ 17,460
Adjustments to reconcile net income to net cash provided by operating activities
Change in fair value of BFG	625	600
Stock-based compensation expense	2,046	2,046
Deferred income tax expense	90	1,915
Net changes in:
Other assets	(1,770)	(6,448)
Other liabilities	1,066	8,544
Net cash (used in) provided by operating activities	(14,991)	12,265
Cash flows from investing activities:
Net cash used in investing activities	(132,379)	(152,870)
Cash flows from financing activities:
Proceeds from exercise of stock options	25	44
Common stock repurchased	(461)	(4,741)
Net cash provided by financing activities	139,557	157,013
Cash, cash equivalents and restricted cash, beginning of the period	116,975	100,567
Cash, cash equivalents and restricted cash, end of the period	109,162	116,975
Parent Company
Cash flows from operating activities:
Net income	12,742	17,461
Adjustments to reconcile net income to net cash provided by operating activities
Change in fair value of BFG	625	600
Stock-based compensation expense	2,046	2,046
Deferred income tax expense	156	(61)
Net changes in:
Income tax payable (receivable)	(4,186)	(1,905)
Other assets	(91)	(4)
Other liabilities	(642)	760
Net cash (used in) provided by operating activities	10,650	18,897
Cash flows from investing activities:
Investment in subsidiary bank	(17,960)	(21,992)
Investment in FinWise Investment, LLC	0	(19)
Net cash used in investing activities	(17,960)	(22,011)
Cash flows from financing activities:
Proceeds from exercise of stock options	25	44
Common stock repurchased	(461)	(4,741)
Net cash provided by financing activities	(436)	(4,697)
Net change in cash and cash equivalents	(7,746)	(7,811)
Cash, cash equivalents and restricted cash, beginning of the period	28,510	36,321
Cash, cash equivalents and restricted cash, end of the period	$ 20,764	$ 28,510