0001856365-25-000027 | 10-Q | XBRL Viewer

Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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. 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 March 31, 2025, the Company estimates that an additional $0.1 million will be reclassified as a reduction to interest expense.

Fair Value of Derivative Instruments on the Consolidated Balance Sheets

The table below presents the notional amount, location, and fair value of the Company’s derivative financial instruments on the Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024:

Derivative Assets

As of March 31, 2025

($ in thousands)

Notional Amount

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate swaps

80,000

Other assets

Total

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 March 31, 2025 (in thousands):


	Three Months Ended March 31, 2025
	Amount of Gain (Loss) 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	$	(254)	Interest on deposits	$	113
Total	$	(254)		$	113

Effect of Cash Flow Hedge Accounting on the Statement of Income for the Three Months Ended March 31, 2025

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statement of Income for the three months ended March 31, 2025 (in thousands):


	Location and Amount of Gain Recognized in Income on Cash Flow Hedging Relationships
Location of gain recognized in income	Interest on deposits
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded	$	113

The effects of cash flow hedging:
Interest rate swaps
Amount of gain reclassified from accumulated OCI into income	$	113

Offsetting Derivative Assets

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2025 and December 31, 2024 (in thousands). 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 sheets.


As of March 31, 2025							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	$	81	$	—	$	81		$	—	$	—	$	81


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

Capital Requirements

3 Months Ended

Mar. 31, 2025

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 March 31, 2025 and December 31, 2024, that the Bank’s capital levels exceed the regulatory floors required to be classified as a well-capitalized bank.

As of March 31, 2025 and December 31, 2024, the most recent notification from the FDIC categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action (there are no conditions or events since that notification that management believes have changed the Bank’s category). The following table sets forth the actual capital amounts and ratios for the Bank and the minimum amount and ratio of capital required to be categorized as well-capitalized as of the dates indicated:


	Actual				Well-Capitalized Requirement
($ in thousands)	Amount		Ratio		Amount		Ratio
March 31, 2025
Leverage ratio (CBLR election)	$	138,667	18.8	%	$	66,374	9.0	%
December 31, 2024
Leverage ratio (CBLR election)	$	135,375	20.6	%	$	59,196	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 - Loans by Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Financing Receivable, Credit Quality Indicator [Line Items]
2025	$ 77,920		$ 193,392
2024	180,743		152,294
2023	126,835		81,984
2022	71,948		16,206
2021	14,330
Prior	20,447
Prior			21,357
Revolving Loans	0		0
Total	492,223		465,233
2025, Writeoff	(12)		(3,801)
2024, Writeoff	(2,055)		(5,798)
2023, Writeoff	(315)		(1,775)
2022, Writeoff	(127)		(943)
2021, Writeoff	(28)
Prior, Writeoff	(52)
Prior, Writeoff			(352)
Revolving Loans, Writeoff	0		0
Writeoff	(2,589)	$ (3,741)	(12,669)
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2025	6,227		18,008
2024	22,724		9,080
2023	6,512		12,687
2022	9,529		2,556
2021	2,437
Prior	0
Prior			0
Revolving Loans	0		0
Total	47,429		42,331
2025, Writeoff	0		0
2024, Writeoff	0		0
2023, Writeoff	0		0
2022, Writeoff	0		0
2021, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff			0
Revolving Loans, Writeoff	0		0
Writeoff	0	0	0
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2025	8,375		18,293
2024	14,494		23,657
2023	17,355		13,596
2022	13,507		2,485
2021	1,593
Prior	3,143
Prior			3,285
Revolving Loans	0		0
Total	58,467		61,316
2025, Writeoff	0		0
2024, Writeoff	0		0
2023, Writeoff	0		0
2022, Writeoff	0		(252)
2021, Writeoff	(7)
Prior, Writeoff	0
Prior, Writeoff			(45)
Revolving Loans, Writeoff	0		0
Writeoff	(7)	(64)	(297)
Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		1,039
2024	1,037		293
2023	292		256
2022	255		78
2021	78
Prior	26
Prior			26
Revolving Loans	0		0
Total	1,688		1,692
2025, Writeoff	0		0
2024, Writeoff	0		0
2023, Writeoff	0		0
2022, Writeoff	0		0
2021, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff			0
Revolving Loans, Writeoff	0		0
Writeoff	0	0	0
Commercial real estate - owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2025	36,397		51,297
2024	50,035		75,950
2023	57,789		38,808
2022	33,770		8,498
2022	24
2021	7,888
Prior	15,196
Prior			15,733
Revolving Loans	0		0
Total	201,075		190,286
2025, Writeoff	0		0
2024, Writeoff	0		(364)
2023, Writeoff	(71)		(369)
2022, Writeoff			(109)
2021, Writeoff	0
Prior, Writeoff	(21)
Prior, Writeoff			(197)
Revolving Loans, Writeoff	0		0
Writeoff	(68)	(525)	(1,039)
Commercial real estate - non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2025	563		1,251
2024	1,605		4,111
2023	3,752		5,891
2022	5,838		1,117
2021	1,087
Prior	460
Prior			479
Revolving Loans	0		0
Total	13,305		12,849
2025, Writeoff	0		0
2024, Writeoff	0		0
2023, Writeoff	0		(221)
2022, Writeoff	0		0
2021, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff			0
Revolving Loans, Writeoff	0		0
Writeoff	0	0	(221)
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2025	3,717		27,147
2024	25,085		10,908
2023	16,185		4,042
2022	3,753		764
2021	674
Prior	1,357
Prior			1,468
Revolving Loans	0		0
Total	50,771		44,329
2025, Writeoff	0		0
2024, Writeoff	0		(393)
2023, Writeoff	0		(227)
2022, Writeoff	(54)		(178)
2021, Writeoff	0
Prior, Writeoff	(29)
Prior, Writeoff			(91)
Revolving Loans, Writeoff	0		0
Writeoff	(83)	(54)	(889)
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2025	3,551		15,994
2024	14,026		4,299
2023	3,717		1,257
2022	949		319
2021	255
Prior	251
Prior			286
Revolving Loans	0		0
Total	22,749		22,155
2025, Writeoff	0		0
2024, Writeoff	0		(65)
2023, Writeoff	0		(31)
2022, Writeoff	(9)		(19)
2021, Writeoff	0
Prior, Writeoff	(2)
Prior, Writeoff			(19)
Revolving Loans, Writeoff	0		0
Writeoff	(11)	(41)	(134)
Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2025	12,030		43,279
2024	40,961		22,456
2023	20,296		4,338
2022	3,522		0
2021	0
Prior	14
Prior			80
Revolving Loans	0		0
Total	76,823		70,153
2025, Writeoff	0		0
2024, Writeoff	0		(293)
2023, Writeoff	(36)		0
2022, Writeoff	0		0
2021, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff			0
Revolving Loans, Writeoff	0		0
Writeoff	(36)	(111)	(293)
Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2025	7,060		17,084
2024	10,776		1,540
2023	937		1,109
2022	825		389
2021	318
Prior	0
Prior			0
Revolving Loans	0		0
Total	19,916		20,122
2025, Writeoff	(12)		(3,801)
2024, Writeoff	(2,055)		(4,683)
2023, Writeoff	(208)		(927)
2022, Writeoff	(88)		(385)
2021, Writeoff	(21)
Prior, Writeoff	0
Prior, Writeoff			0
Revolving Loans, Writeoff	0		0
Writeoff	(2,384)	$ (2,946)	(9,796)
Pass \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2025	6,227		18,008
2024	22,724		9,080
2023	6,512		12,687
2022	9,529		2,556
2021	2,437
Prior	0
Prior			0
Revolving Loans	0		0
Total	47,429		42,331
Pass \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2025	141		4,025
2024	2,805		1,172
2023	1,154		575
2022	586		1,332
2021	515
Prior	1,687
Prior			1,655
Revolving Loans	0		0
Total	6,888		8,759
Pass \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		1,039
2024	1,037		293
2023	292		256
2022	255		78
2021	78
Prior	0
Prior			0
Revolving Loans	0		0
Total	1,662		1,666
Pass \| Commercial real estate - owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2025	27,317		26,160
2024	25,267		3,897
2023	3,879		3,468
2022	3,458		1,180
2021	1,176
Prior	7,685
Prior			9,112
Revolving Loans	0		0
Total	68,782		43,817
Pass \| Commercial real estate - non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2025	563		36
2024	410		0
2023	0		1,254
2022	1,243		0
2021	0
Prior	331
Prior			343
Revolving Loans	0		0
Total	2,547		1,633
Pass \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2025	38		3,588
2024	2,715		336
2023	600		529
2022	497		322
2021	301
Prior	376
Prior			463
Revolving Loans	0		0
Total	4,527		5,238
Pass \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2025	3,551		15,951
2024	13,915		4,294
2023	3,712		1,257
2022	942		319
2021	255
Prior	251
Prior			286
Revolving Loans	0		0
Total	22,626		22,107
Pass \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2025	12,030		43,279
2024	40,961		22,456
2023	19,880		4,338
2022	3,522		0
2021	0
Prior	14
Prior			80
Revolving Loans	0		0
Total	76,407		70,153
Pass \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Watch \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Watch \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2025	8,234		14,268
2024	11,689		18,766
2023	12,482		4,134
2022	4,042		1,103
2021	1,034
Prior	1,268
Prior			1,333
Revolving Loans	0		0
Total	38,749		39,604
Watch \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	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]
2025	9,080		25,137
2024	24,597		51,350
2023	39,604		28,462
2022	20,072		5,904
2021	5,298
Prior	3,740
Prior			3,342
Revolving Loans	0		0
Total	102,391		114,195
Watch \| Commercial real estate - non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		1,215
2024	1,195		4,111
2023	3,752		1,841
2022	1,799		1,117
2021	1,087
Prior	129
Prior			136
Revolving Loans	0		0
Total	7,962		8,420
Watch \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2025	3,679		23,559
2024	22,370		9,134
2023	14,397		2,945
2022	2,866		442
2021	373
Prior	529
Prior			606
Revolving Loans	0		0
Total	44,214		36,686
Watch \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		43
2024	111		5
2023	5		0
2022	7		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	123		48
Watch \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Watch \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	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]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Special Mention \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		3,719
2023	3,719		1,758
2022	1,758		0
2021	0
Prior	39
Prior			80
Revolving Loans	0		0
Total	5,516		5,557
Special Mention \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	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]
2025	0		0
2024	0		4,553
2023	2,483		1,736
2022	7,872		0
2021	0
Prior	2,189
Prior			2,207
Revolving Loans	0		0
Total	12,544		8,496
Special Mention \| Commercial real estate - non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Special Mention \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		217
2022	0		0
2021	0
Prior	30
Prior			32
Revolving Loans	0		0
Total	30		249
Special Mention \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Special Mention \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	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]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Substandard \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Substandard \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		7,129
2022	7,121		50
2021	44
Prior	149
Prior			217
Revolving Loans	0		0
Total	7,314		7,396
Substandard \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	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]
2025	0		0
2024	171		16,150
2023	11,823		5,142
2022	2,368		1,414
2021	1,414
Prior	1,582
Prior			1,072
Revolving Loans	0		0
Total	17,358		23,778
Substandard \| Commercial real estate - non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		2,796
2022	2,796		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	2,796		2,796
Substandard \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		1,438
2023	1,188		351
2022	390		0
2021	0
Prior	422
Prior			367
Revolving Loans	0		0
Total	2,000		2,156
Substandard \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	0		0
Substandard \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	416		0
2022	0		0
2021	0
Prior	0
Prior			0
Revolving Loans	0		0
Total	416		0
Substandard \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
2025	0		0
2024	0		0
2023	0		0
2022	0		0
2021	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]
2025	7,060		17,084
2024	10,776		1,540
2023	937		1,109
2022	825		389
2021	318
Prior	0
Prior			0
Revolving Loans	0		0
Total	$ 19,916		$ 20,122

Derivatives and Hedging Activities - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Derivative [Line Items]
Fair Value	$ 81	$ 509
Derivatives designated as hedging instruments
Derivative [Line Items]
Fair Value	81	509
Interest rate swaps \| Derivatives designated as hedging instruments
Derivative [Line Items]
Notional Amount	80,000	80,000
Fair Value	$ 81	$ 509

Stock-Based Compensation

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock Option Plans

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

The 2019 Stock 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 stockholder 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 March 31, 2025, 445,547 shares under the 2019 Plan were available for future issuance.

The 2016 Stock 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 stockholder approval of an increase in the number of shares reserved for issuance under the 2016 Plan. At March 31, 2025, 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 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.

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.

The following summarizes stock option activity for the three months ended March 31, 2025 and 2024:


	Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2024	905,182	$	5.74	5.9	$	9,266,286

Options exercised	(5,717)	$	4.79		$	72,738
Options forfeited	(107)	$	13.04
Outstanding at March 31, 2025	899,358	$	5.75	5.6	$	10,578,008
Options vested and exercisable at March 31, 2025	780,205	$	5.21	5.3	$	9,599,927

During the three months ended March 31, 2025 and 2024, the Company received de minimis proceeds from the exercise of stock options.

Stock-based Compensation Expense

The following table presents stock-based compensation expense recognized:


	Three Months Ended March 31,
($ in thousands)	2025		2024
Stock options	$	48	$	55
Restricted shares	552		95
Total	$	600	$	150

During the three months ended March 31, 2025 and 2024, the Company recognized a $0.1 million and a de minimis income tax benefit, respectively, for stock-based compensation. As of March 31, 2025, the Company had unrecognized stock-based compensation expense related to stock options and restricted stock of approximately $0.1 million and $2.6 million, respectively, which is expected to be recognized over the remaining weighted average recognition period of 1.0 years and 2.2 years, respectively.

Stock-Based Compensation - Stock Option Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Stock Options
Outstanding, beginning of year (in shares)	905,182
Options exercised (in shares)	(5,717)
Options forfeited (in shares)	(107)
Outstanding, end of period (in shares)	899,358	905,182
Options vested and exercisable, end of period (in shares)	780,205
Weighted Average Exercise Price
Outstanding, beginning of year (in dollars per share)	$ 5.74
Options exercised (in dollars per share)	4.79
Options forfeited (in dollars per share)	13.04
Outstanding, end of period (in dollars per share)	5.75	$ 5.74
Options vested and exercisable, end of period (in dollars per share)	$ 5.21
Weighted Average Remaining Contractual Life (in years)
Outstanding	5 years 7 months 6 days	5 years 10 months 24 days
Options vested and exercisable	5 years 3 months 18 days
Aggregate Intrinsic Value
Outstanding, beginning of year	$ 9,266,286
Options exercised	72,738
Outstanding, end of period	10,578,008	$ 9,266,286
Options vested and exercisable	$ 9,599,927

Loans - Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Total allowance for credit losses on financing receivables
Beginning Balance	$ 13,176	$ 12,888	$ 12,888
Provision for (Reversal of) Credit Losses	3,307	3,145
Charge-Offs	(2,589)	(3,741)	(12,669)
Recoveries	341	340
Ending Balance	14,235	12,632	13,176
Unfunded lending commitments
Beginning Balance	464	139	139
Provision for (Reversal of) Credit Losses	29	9
Ending Balance	493	148	464
Total allowance for credit losses
Beginning Balance	13,640	13,027	13,027
Provision for (Reversal of) Credit Losses	3,336	3,154
Charge-Offs	(2,589)	(3,741)
Recoveries	341	340
Ending Balance	14,728	12,780	13,640
Construction and land development
Total allowance for credit losses on financing receivables
Beginning Balance	374	316	316
Provision for (Reversal of) Credit Losses	614	17
Charge-Offs	0	0	0
Recoveries	0	0
Ending Balance	988	333	374
Residential real estate
Total allowance for credit losses on financing receivables
Beginning Balance	788	956	956
Provision for (Reversal of) Credit Losses	(186)	54
Charge-Offs	(7)	(64)	(297)
Recoveries	3	53
Ending Balance	598	999	788
Residential real estate multifamily
Total allowance for credit losses on financing receivables
Beginning Balance	38	6	6
Provision for (Reversal of) Credit Losses	0	2
Charge-Offs	0	0	0
Recoveries	0	0
Ending Balance	38	8	38
Commercial real estate - owner occupied
Total allowance for credit losses on financing receivables
Beginning Balance	2,834	3,336	3,336
Provision for (Reversal of) Credit Losses	850	1,096
Charge-Offs	(68)	(525)	(1,039)
Recoveries	16	3
Ending Balance	3,632	3,910	2,834
Commercial real estate - non-owner occupied
Total allowance for credit losses on financing receivables
Beginning Balance	113	282	282
Provision for (Reversal of) Credit Losses	13	36
Charge-Offs	0	0	(221)
Recoveries	0	0
Ending Balance	126	318	113
Commercial and industrial
Total allowance for credit losses on financing receivables
Beginning Balance	700	361	361
Provision for (Reversal of) Credit Losses	(200)	175
Charge-Offs	(83)	(54)	(889)
Recoveries	14	0
Ending Balance	431	482	700
Consumer
Total allowance for credit losses on financing receivables
Beginning Balance	638	211	211
Provision for (Reversal of) Credit Losses	46	95
Charge-Offs	(11)	(41)	(134)
Recoveries	3	0
Ending Balance	676	265	638
Lease financing receivables
Total allowance for credit losses on financing receivables
Beginning Balance	1,387	355	355
Provision for (Reversal of) Credit Losses	269	312
Charge-Offs	(36)	(111)	(293)
Recoveries		0
Recoveries	(33)
Ending Balance	1,587	556	1,387
Retained Strategic Program loans
Total allowance for credit losses on financing receivables
Beginning Balance	6,304	7,065	7,065
Provision for (Reversal of) Credit Losses	1,901	1,358
Charge-Offs	(2,384)	(2,946)	(9,796)
Recoveries	338	284
Ending Balance	$ 6,159	$ 5,761	$ 6,304

Investments - FHLB Stock (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost	$ 440	$ 349

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis

The table below presents the Company's financial instruments valued on a recurring basis at the periods indicated:


		March 31, 2025		December 31, 2024
($ in thousands)	Level	Estimated Fair Value		Estimated Fair Value
Financial assets:
U.S. Treasury securities	1	$	30,138	$	29,930
Investment in BFG	3	$	8,100	$	7,700
Derivative asset	2	$	81	$	509

Schedule of Reconciliation of Investment in BFG

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


	Three Months Ended March 31,
($ in thousands)	2025		2024
Beginning balance	$	7,700	$	4,200
Purchase of BFG ownership interest	—		4,125
Change in fair value of BFG	400		(125)
Ending balance	$	8,100	$	8,200

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 at the periods indicated:


($ in thousands)			Fair Value Measurements Using
Description of Financial Instrument	Fair Value		Level 1		Level 2		Level 3
March 31, 2025
Nonrecurring assets:
Individually evaluated loans	$	29,370	$	—	$	—	$	29,370
December 31, 2024
Nonrecurring assets:
Individually evaluated loans	$	35,723	$	—	$	—	$	35,723

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 March 31, 2025 and December 31, 2024:

($ in thousands)

Fair Value

Valuation
Technique

Unobservable
Input

Range
(Weighted Average)

March 31, 2025

Individually evaluated loans

29,370

Market
comparable

Discount to appraisal value for estimated selling costs

11.40

December 31, 2024

Individually evaluated loans

35,723

Market
comparable

Discount to appraisal value for estimated selling costs

11.40

The range and weighted average of the significant unobservable inputs used to fair value the investment in BFG as of March 31, 2025 and as of December 31, 2024 are shown in the following table:


($ in thousands)	March 31, 2025 Range (Weighted Average)		December 31, 2024 Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate	15.3	%	15.3	%
Expense growth rate	14.9	%	14.9	%
Discount rate	25.0	%	27.5	%

Guideline Public Company
Multiples of enterprise value	3.3x to 4.8x		3.5x to 5.8x

Schedule of Estimated Fair Value and Carrying Value of Financial Instrument

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


	March 31, 2025
					Fair Value Measurements Using
($ in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	120,272	$	120,272	$	120,272	$	—	$	—
Investment securities available-for-sale	30,138		30,138		30,138		—		—
Investment securities held-to-maturity	12,008		10,753		—		10,753		—
Investment in FHLB stock	440		440		—		440		—
Loans held-for-investment, net	472,402		504,531		—		—		504,531
Strategic Program loans held-for-sale	118,769		118,769		—		118,769		—
Accrued interest receivable	2,708		2,708		—		2,708		—
SBA servicing asset, net	3,331		3,331		—		3,331		—
Investment in BFG	8,100		8,100		—		—		8,100
Derivative asset	81		81		—		81		—
Financial liabilities:
Total deposits	$	605,759	$	588,988	$	—	$	588,988	$	—
Accrued interest payable	2,750		2,750		—		2,750		—
PPPLF	32		32		—		32		—


	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		—

- 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

Accumulated Other Comprehensive Income (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 173,720
Ending balance	177,361
Accumulated Other Comprehensive Income, Net of Tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	187
Other comprehensive income (loss) before reclassifications and income tax	(51)
Amounts reclassified from accumulated other comprehensive income	(113)
Income tax (expense) benefit	(4)
Total other comprehensive income (loss)	(168)
Ending balance	19
Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(73)
Other comprehensive income (loss) before reclassifications and income tax	203
Amounts reclassified from accumulated other comprehensive income	0
Income tax (expense) benefit	(45)
Total other comprehensive income (loss)	158
Ending balance	85
Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	260
Other comprehensive income (loss) before reclassifications and income tax	(254)
Amounts reclassified from accumulated other comprehensive income	(113)
Income tax (expense) benefit	41
Total other comprehensive income (loss)	(326)
Ending balance	$ (66)

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

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Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2025

Capital Requirements [Abstract]

Schedule of Capital Amounts and Ratios

The following table sets forth the actual capital amounts and ratios for the Bank and the minimum amount and ratio of capital required to be categorized as well-capitalized as of the dates indicated:


	Actual				Well-Capitalized Requirement
($ in thousands)	Amount		Ratio		Amount		Ratio
March 31, 2025
Leverage ratio (CBLR election)	$	138,667	18.8	%	$	66,374	9.0	%
December 31, 2024
Leverage ratio (CBLR election)	$	135,375	20.6	%	$	59,196	9.0	%

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions				3 Months Ended
	Jun. 27, 2024	Jun. 20, 2019	Apr. 20, 2017	Mar. 31, 2025
2019 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period		10 years
Number of additional shares authorized (in shares)	500,000
Number of shares authorized (in shares)	1,780,000
Number of shares available for grant (in shares)				445,547
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 \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period				1 year
2019 Plan and 2016 Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period				10 years
Award vesting period				5 years
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Income tax benefit				$ 0.1
Unrecognized stock-based compensation expense				$ 0.1
Weighted average recognition period				1 year
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized stock-based compensation expense				$ 2.6
Weighted average recognition period				2 years 2 months 12 days

Investments - Narrative (Details) $ in Thousands	3 Months Ended
Investments - Narrative (Details) $ in Thousands	Mar. 31, 2025 USD ($) security	Mar. 31, 2024 USD ($)	Dec. 31, 2024 USD ($) security
Schedule of Held-to-Maturity Securities [Line Items]
Accrued interest receivable debt securities available for sale	$ 200		$ 500
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable		Accrued interest receivable
Debt securities, available-for-sale, allowance for credit loss	$ 0		$ 0
Allowance for credit losses related to HTM securities	$ 0		$ 0
Number of securities in unrealized loss position \| security	18		22
Debt securities, amortized cost	$ 12,008		$ 12,565
Sales or transfers of investment securities	0	$ 0
Realized gains or losses on investment securities	0	$ 0
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Allowance for credit losses related to HTM securities	$ 0		$ 0
Number of securities in unrealized loss position \| security	8		8
Debt securities, amortized cost	$ 6,325		$ 6,655
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Allowance for credit losses related to HTM securities	$ 0		$ 0
Number of securities in unrealized loss position \| security	10		10
Debt securities, amortized cost	$ 5,683		$ 5,910
US Treasury Securities
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost	30,032		$ 30,027
Number of securities in unrealized loss position \| security			4
Asset Pledged as Collateral
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost	30,000
Debt securities, amortized cost	$ 12,000

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Schedule of Financial Instruments with Off-Balance Sheet Risk

At March 31, 2025 and December 31, 2024, financial instruments with off-balance-sheet risk were as follows:


	March 31,		December 31,
($ in thousands)	2025		2024
Revolving, open-end lines of credit	$	2,409	$	2,365
Undisbursed commercial real estate loans	24,269		23,200
Other unused commitments	397		830
Total unfunded loan commitments	$	27,075	$	26,395

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income, Net of Tax
Beginning balance (in shares) at Dec. 31, 2023		12,493,565
Beginning balance at Dec. 31, 2023	$ 155,056	$ 12	$ 51,200	$ 103,844
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense (in shares)		(25,389)
Stock-based compensation expense	150		150
Common stock repurchased and retired (in shares)		(17,697)
Common stock repurchased and retired	(180)		(186)	6
Stock options exercised, net (in shares)		3,900
Stock options exercised, net	16		16
BFG ownership purchase (in shares)		339,176
BFG ownership purchase	4,125	$ 1	4,124
Other comprehensive loss	0
Net income	3,315			3,315
Ending balance (in shares) at Mar. 31, 2024		12,793,555
Ending balance at Mar. 31, 2024	162,482	$ 13	55,304	107,165
Beginning balance (in shares) at Dec. 31, 2024		13,211,640
Beginning balance at Dec. 31, 2024	173,720	$ 13	56,926	116,594	$ 187
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 600		600
Stock options exercised, net (in shares)	5,717	5,263
Stock options exercised, net	$ 20		22	(2)
Other comprehensive loss	(168)				(168)
Net income	3,189			3,189
Ending balance (in shares) at Mar. 31, 2025		13,216,903
Ending balance at Mar. 31, 2025	$ 177,361	$ 13	$ 57,548	$ 119,781	$ 19

Derivatives and Hedging Activities - Offsetting Derivative Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Assets	$ 81	$ 509
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets presented in the Statement of Financial Position	81	509
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments	0	0
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received	0	0
Gross Amounts Not Offset in the Statement of Financial Position, Net Amount	$ 81	$ 509

Commitments and Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	$ 27,075	$ 26,395
Revolving, open-end lines of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	2,409	2,365
Undisbursed commercial real estate loans
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	24,269	23,200
Other unused commitments
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	$ 397	$ 830

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 600	$ 150
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	48	55
Restricted shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 552	$ 95

- 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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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Subparagraph (a)(2)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-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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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 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 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
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

+ Details

Investments - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Amortized Cost
Due in one year or less	$ 2,488	$ 2,478
Due after one year through five years	27,544	27,549
Total securities AFS	30,032	30,027
Estimated Fair Value
Due in one year or less	2,489	2,482
Due after one year through five years	27,649	27,448
Total securities AFS	$ 30,138	$ 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

Investments - Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Debt Securities, Available-for-Sale [Line Items]
Estimated Fair Value	$ 30,138	$ 29,930
US Treasury Securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	30,032	30,027
Unrealized loss on interest rate swaps	106	4
Unrealized Loss	0	(101)
Estimated Fair Value	$ 30,138	$ 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
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Reference 2: 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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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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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

Business, Basis of Presentation, and Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	13 Months Ended
	Mar. 31, 2024	Mar. 31, 2025	Mar. 06, 2024
Accounting Policies [Abstract]
Common stock repurchase program, shares authorized to be purchased (in shares)			641,832
Common stock repurchased and retired (in shares)		44,608
Common stock repurchased and retired	$ 180	$ 500
Shares acquired, average cost per share		$ 10.30

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024	Feb. 05, 2024	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Deposits	$ 2.5		$ 2.1
Related Party \| Loans Sourced From BFG
Schedule of Equity Method Investments [Line Items]
(Commissions paid to) distributions received from BFG	21.7	$ 13.3
Related Party \| Commissions Paid to BFG
Schedule of Equity Method Investments [Line Items]
(Commissions paid to) distributions received from BFG	0.9	0.5
Related Party \| Distributions From BFG
Schedule of Equity Method Investments [Line Items]
(Commissions paid to) distributions received from BFG	$ 0.5	$ 0.2
BFG
Schedule of Equity Method Investments [Line Items]
Membership interest	20.00%			20.00%	10.00%

Fair Value of Financial Instruments - Narrative (Details)	Mar. 31, 2025	Dec. 31, 2024
Measurement Input, Discount for Lack of Marketability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.20	0.20
Measurement Input, Discount to Non-Voting Shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.045	0.045

Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2025

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 earnings per share for the three months ended March 31, 2025 and 2024 (in thousands, except share and per share amounts):


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income	$	3,189	$	3,315
Amounts allocated to participating common shareholders(1)	(120)		(52)
Net income allocated to common shareholders	$	3,069	$	3,263
Denominator:
Weighted average shares outstanding, basic	12,716,155		12,502,448
Weighted average effect of dilutive securities:
Stock options	598,028		423,263
Warrants	169,464		115,894
Weighted average shares outstanding, diluted	13,483,647		13,041,605
Earnings per share, basic	$	0.24	$	0.26
Earnings per share, diluted	$	0.23	$	0.25

Anti-dilutive stock options excluded from the calculation of diluted earnings per share	658		120,379

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

Investments

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Investments

Investment Securities Available-for-Sale, at Fair Value

The Company’s available-for-sale (“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 March 31, 2025 and December 31, 2024, are summarized as follows:


	March 31, 2025
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
U.S. Treasury securities	$	30,032	$	106	$	—	$	30,138


	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 periods ended, by contractual maturity:


	March 31, 2025				December 31, 2024
($ in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,488	$	2,489	$	2,478	$	2,482
Due after one year through five years	27,544		27,649		27,549		27,448


Total securities AFS	$	30,032	$	30,138	$	30,027	$	29,930

At March 31, 2025, 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 $0.2 million and $0.5 million at March 31, 2025 and December 31, 2024, respectively, and was included in accrued interest receivable on the Consolidated Balance Sheets.

Investment Securities Held-to-Maturity, at Cost

The Company's held-to-maturity (“HTM”) investment portfolio consists of agency mortgage-backed securities and agency collateralized mortgage obligations. The Company reports 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 March 31, 2025 and December 31, 2024, are summarized as follows:


	March 31, 2025
($ in thousands)	Amortized Cost		Allowance for Credit Losses		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	5,683	$	—	$	—	$	(637)	$	5,046
Collateralized mortgage obligations	6,325		—		7		(625)		5,707
Total securities held-to-maturity	$	12,008	$	—	$	7	$	(1,262)	$	10,753


	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	6,655		—		8		(770)		5,893
Total securities held-to-maturity	$	12,565	$	—	$	8	$	(1,516)	$	11,057

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

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 March 31, 2025 and December 31, 2024, 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 eighteen securities, consisting of eight collateralized mortgage obligations and ten mortgage-backed securities, in an unrealized loss position at March 31, 2025 and 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. 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 March 31, 2025 and December 31, 2024:


	March 31, 2025
	Less than 12 months				12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses




Held-to-maturity:
Mortgage-backed securities	$	447	$	(10)	$	4,599	$	(627)	$	5,046	$	(637)
Collateralized mortgage obligations	624		(8)		3,606		(617)		4,230		(625)
Total	$	1,071	$	(18)	$	8,205	$	(1,244)	$	9,276	$	(1,262)


	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)

The amortized cost and estimated market value of debt securities HTM at March 31, 2025 and December 31, 2024, 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.


	March 31, 2025				December 31, 2024
($ 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	1,281		1,228		1,365		1,301
Due after five years through ten years	766		707		807		734
Due after ten years	9,961		8,818		10,393		9,022
Total securities held-to-maturity	$	12,008	$	10,753	$	12,565	$	11,057

At March 31, 2025, debt securities HTM in the amount of $12.0 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 three months ended March 31, 2025 or 2024.

FHLB Stock

The Bank is a member of the FHLB system. As a member, the Bank is required to maintain a minimum level of investment in FHLB stock based on a percentage of the Bank’s previous year-end assets and the Bank’s FHLB advances outstanding. At March 31, 2025 and December 31, 2024, the Bank owned $0.4 million and $0.3 million, respectively, of FHLB stock, which is carried at cost. The Company evaluated the carrying value of its FHLB stock investment at March 31, 2025 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.

Loans - Collateral-Dependent Financial Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Nonaccrual Loans with no ACL	$ 26,499	$ 29,318
Collateral Pledged
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	150	55
Individually evaluated loans	29,370	35,723
Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	27,319	33,575
Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	2,051	2,148
Construction and land development
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Nonaccrual Loans with no ACL	0	0
Construction and land development \| Collateral Pledged
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	0	0
Construction and land development \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
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 \| Collateral Pledged
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	10
Individually evaluated loans	7,165	7,243
Residential real estate \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	7,165	7,243
Residential real estate \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Commercial real estate - owner occupied
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Nonaccrual Loans with no ACL	14,592	17,435
Commercial real estate - owner occupied \| Collateral Pledged
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	56	9
Individually evaluated loans	17,358	23,536
Commercial real estate - owner occupied \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	17,358	23,536
Commercial real estate - owner occupied \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Commercial real estate - non-owner occupied
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Nonaccrual Loans with no ACL	2,796	2,796
Commercial real estate - non-owner occupied \| Collateral Pledged
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	2,796	2,796
Commercial real estate - non-owner occupied \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	2,796	2,796
Commercial real estate - non-owner occupied \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Commercial and industrial
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Nonaccrual Loans with no ACL	1,635	1,788
Commercial and industrial \| Collateral Pledged
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	1,635	1,789
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	1,635	1,789
Commercial leases
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Nonaccrual Loans with no ACL	311	158
Commercial leases \| Collateral Pledged
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	94	36
Individually evaluated loans	416	359
Commercial leases \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Commercial leases \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	$ 416	$ 359

SBA Servicing Asset, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Transfers and Servicing [Abstract]
SBA loans serviced for others	$ 223.7	$ 218.4
SBA servicing asset, net	$ 3.3	$ 3.3
Weighted average prepayment rate	21.00%	21.10%
Weighted average term (in years)	3 years 3 months 7 days	3 years 3 months 18 days
Weighted average discount rate	11.70%	12.10%

Loans - Strategic Program Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	$ 472,402	$ 447,812
Strategic Program loans held-for-sale	118,769	91,588
Retained Strategic Program loans
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Retained Strategic Program loans	19,916	20,122
Strategic Program loans held-for-sale	118,769	91,588
Total Strategic Program loans	$ 138,685	$ 111,710

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Cash flows from operating activities:
Net income	$ 3,189	$ 3,315
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	1,377	1,077
Provision for credit losses	3,336	3,154
Noncash operating lease cost	9	189
Net (accretion) amortization of securities (discounts) and premiums	(8)	(3)
Additions to servicing asset	(315)	0
Gain on sale of loans, net	(846)	(415)
Originations of Strategic Program loans held-for-sale	(1,180,397)	(1,072,251)
Proceeds from sale of Strategic Program loans held-for-sale	1,153,388	1,064,818
Change in fair value of BFG	(400)	334
Recovery of SBA servicing asset	(80)	(198)
Stock-based compensation expense	600	150
Deferred income taxes	(1,194)	(240)
Net changes in:
Accrued interest receivable	858	144
Other assets	4,321	3,696
Accrued interest payable	1,256	(31)
Operating lease liabilities	(76)	(250)
Other liabilities	(6,626)	(1,732)
Net cash (used in) provided by operating activities	(21,608)	1,757
Cash flows from investing activities:
Net increase in loans receivable	(17,099)	(10,603)
Purchase of lease pools	(10,124)	(10,677)
Purchase of equipment and lease equipment, net	(1,642)	(1,189)
Proceeds from sales of assets subject to operating leases	287	0
Proceeds from maturities and paydowns of securities held-to-maturity	560	571
Purchase of FHLB stock	(90)	(111)
Net cash used in investing activities	(28,108)	(22,009)
Cash flows from financing activities:
Net increase in deposits	60,806	19,263
Common stock repurchased	0	(180)
Proceeds from exercise of stock options	20	16
Repayment of PPP Liquidity Facility	0	(32)
Net cash provided by financing activities	60,826	19,067
Net change in cash and cash equivalents and restricted cash	11,110	(1,185)
Cash, cash equivalents and restricted cash, beginning of the period	109,162	116,975
Cash, cash equivalents and restricted cash, end of the period	120,272	115,790
Supplemental disclosures of cash flow information:
Cash paid for income taxes	412	98
Cash paid for interest	3,000	3,670
Supplemental disclosures of noncash investing and financing activities:
Increase in BFG investment in exchange for shares of the Company’s common stock	$ 0	$ 4,125

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2025
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended March 31, 2025 and 2024, income tax expense was $1.2 million and $1.2 million, respectively, resulting in an effective income tax rate of 28.1% and 26.5%, respectively. The effective tax rate differs from the statutory rate of 21.0% during the three months ended March 31, 2025 due primarily to estimated permanent differences related to officer compensation.

- 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

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Statement of Financial Position [Abstract]
Restricted cash	$ 3,200	$ 3,100
Debt securities, available-for-sale, allowance for credit loss	0	0
Amortized cost	30,032	30,027
Allowance for credit losses related to HTM securities	0	0
Estimated Fair Value	10,753	11,057
Allowance for Credit Losses	14,235	13,176
Accumulated depreciation	$ (3,200)	$ (2,700)
Preferred stock, par or stated value per share (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 or stated value per share (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)	13,216,903	13,211,640
Common stock, shares, outstanding (in shares)	13,216,903	13,211,640

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following summarizes stock option activity for the three months ended March 31, 2025 and 2024:


	Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2024	905,182	$	5.74	5.9	$	9,266,286

Options exercised	(5,717)	$	4.79		$	72,738
Options forfeited	(107)	$	13.04
Outstanding at March 31, 2025	899,358	$	5.75	5.6	$	10,578,008
Options vested and exercisable at March 31, 2025	780,205	$	5.21	5.3	$	9,599,927

Schedule of Stock-Based Compensation Expense

The following table presents stock-based compensation expense recognized:


	Three Months Ended March 31,
($ in thousands)	2025		2024
Stock options	$	48	$	55
Restricted shares	552		95
Total	$	600	$	150

Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2025
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation – The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. All significant inter-company transactions have been eliminated in consolidation. In the opinion of management, all the adjustments (consisting of normal and recurring adjustments) necessary for the fair statement of the consolidated financial condition and the consolidated results of operations for the periods presented have been included. The results of operations and other data presented for the three months ended March 31, 2025 are not necessarily indicative of the results of operations that may be expected for subsequent periods or the full year results. The consolidated balance sheet data as of December 31, 2024 was derived from audited financial statements; however, the accompanying notes to the unaudited consolidated financial statements do not include all of the annual disclosures required by GAAP and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Consolidation	Basis of Presentation – The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. All significant inter-company transactions have been eliminated in consolidation. In the opinion of management, all the adjustments (consisting of normal and recurring adjustments) necessary for the fair statement of the consolidated financial condition and the consolidated results of operations for the periods presented have been included. The results of operations and other data presented for the three months ended March 31, 2025 are not necessarily indicative of the results of operations that may be expected for subsequent periods or the full year results. The consolidated balance sheet data as of December 31, 2024 was derived from audited financial statements; however, the accompanying notes to the unaudited consolidated financial statements do not include all of the annual disclosures required by GAAP and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Reclassifications	Reclassifications – Reclassifications have been made to the interim consolidated financial statements to conform to the current year’s presentation. Certain of these reclassifications relate to the change in fair value of the 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 interim consolidated financial statements.
Use of Estimates	Use of Estimates – In preparing the interim consolidated financial statements in accordance with GAAP, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the date of the consolidated balance sheets and certain revenues and expenses for the period. Actual results could differ, either positively or negatively, from those estimates.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. ASU 2023-09 improves the transparency of annual 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. The Company adopted ASU 2023-09 effective January 1, 2025 and will include the incremental disclosures in its Annual Report on Form 10-K for the year ended December 31, 2025. 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.
Fair Value of Financial Instruments	The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy. Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation also includes observable inputs from nonbinding single dealer quotes not corroborated by observable market data. In developing Level 3 measurements, management incorporates whatever market data might be available and uses discounted cash flow models where appropriate. These calculations include projections of future cash flows, including appropriate default and loss assumptions, and market-based discount rates. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. There were no transfers between fair value levels for the three months ended March 31, 2025 and 2024. 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 available-for-sale consist of U.S. Treasury securities and are carried at fair value. The Company estimates the fair value of investment securities available-for-sale 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 4.5% discount to non-voting shares to arrive at fair value as of March 31, 2025 and December 31, 2024. The calculation of fair value utilized significant unobservable inputs, including projected cash flows, growth rates, and discount rates. 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. 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.

Fair Value of Financial Instruments - Investment in BFG Level 3 Recurring Asset (Details) - Level 3 - Fair Value, Recurring	Mar. 31, 2025	Dec. 31, 2024
Discounted Cash Flows \| Revenue growth rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.153	0.153
Discounted Cash Flows \| Expense growth rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.149	0.149
Discounted Cash Flows \| Discount rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	0.250	0.275
Guideline Public Company \| Multiples of enterprise value \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	3.3	3.5
Guideline Public Company \| Multiples of enterprise value \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input	4.8	5.8

Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2025

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income

The following table presents changes to accumulated other comprehensive income by component for the three months ended March 31, 2025 (in thousands):


	Available-for-Sale Securities		Cash Flow Hedges		Accumulated OCI
Balance at December 31, 2024	$	(73)	$	260	$	187
Other comprehensive income (loss) before reclassifications and income tax	203		(254)		(51)
Amounts reclassified from accumulated other comprehensive income	—		(113)		(113)
Income tax (expense) benefit	(45)		41		(4)
Total other comprehensive income (loss)	158		(326)		(168)
Balance at March 31, 2025	$	85	$	(66)	$	19

SBA Servicing Asset, Net (Tables)

3 Months Ended

Mar. 31, 2025

Transfers and Servicing [Abstract]

Schedule of SBA Servicing Asset Activity

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


	Three Months Ended March 31,
($ in thousands)	2025		2024
Balance at beginning of period	$	3,273	$	4,231
Additions to servicing asset	315		—
Amortization of servicing asset	(337)		(357)
Change in valuation allowance	80		198
Balance at end of period	$	3,331	$	4,072

SBA servicing asset, fair value	$	3,331	$	4,072

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:


	Three Months Ended March 31,
($ in thousands)	2025		2024
Balance at beginning of period	$	(1,286)	$	(2,151)

Recovery	80		198
Balance at end of period	$	(1,206)	$	(1,953)

SBA Servicing Asset, Net - Valuation Allowance SBA Servicing Asset Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Balance at beginning of period	$ (1,286)	$ (2,151)
Recovery	80	198
Balance at end of period	$ (1,206)	$ (1,953)

Derivatives and Hedging Activities - Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Derivative [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative	$ (254)	$ 0
Amount of Gain Reclassified from Accumulated OCI into Income	113	0
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded	4,256	$ 3,639
Interest rate swaps
Derivative [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative	(254)
Amount of Gain Reclassified from Accumulated OCI into Income	113
Interest rate swaps \| Cash Flow Hedging
Derivative [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded	$ 113

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Interest income
Interest and fees on loans	$ 17,155	$ 16,035
Interest on securities	390	101
Other interest income	991	1,509
Total interest income	18,536	17,645
Interest expense
Interest on deposits	4,256	3,639
Total interest expense	4,256	3,639
Net interest income	14,280	14,006
Provision for credit losses	3,336	3,154
Net interest income after provision for credit losses	10,944	10,852
Non-interest income
Strategic Program fees	4,962	3,965
Gain on sale of loans, net	846	415
SBA loan servicing fees, net	178	664
Change in fair value on investment in BFG	400	(124)
Credit enhancement income	85	0
Other miscellaneous income	1,339	742
Total non-interest income	7,810	5,662
Non-interest expense
Salaries and employee benefits	9,826	7,562
Professional services	907	1,567
Occupancy and equipment expenses	543	544
Credit enhancement expense	11	0
Other operating expenses	3,031	2,332
Total non-interest expense	14,318	12,005
Income before income taxes	4,436	4,509
Provision for income taxes	1,247	1,194
Net income	$ 3,189	$ 3,315
Earnings per share, basic (in dollars per share)	$ 0.24	$ 0.26
Earnings per share, diluted (in dollars per share)	$ 0.23	$ 0.25
Weighted average shares outstanding, basic (in shares)	12,716,155	12,502,448
Weighted average shares outstanding, diluted (in shares)	13,483,647	13,041,605

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2025
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

Investments (Tables)

3 Months Ended

Mar. 31, 2025

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 March 31, 2025 and December 31, 2024, are summarized as follows:


	March 31, 2025
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
U.S. Treasury securities	$	30,032	$	106	$	—	$	30,138


	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 periods ended, by contractual maturity:


	March 31, 2025				December 31, 2024
($ in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,488	$	2,489	$	2,478	$	2,482
Due after one year through five years	27,544		27,649		27,549		27,448


Total securities AFS	$	30,032	$	30,138	$	30,027	$	29,930


	March 31, 2025				December 31, 2024
($ 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	1,281		1,228		1,365		1,301
Due after five years through ten years	766		707		807		734
Due after ten years	9,961		8,818		10,393		9,022
Total securities held-to-maturity	$	12,008	$	10,753	$	12,565	$	11,057

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 March 31, 2025 and December 31, 2024, are summarized as follows:


	March 31, 2025
($ in thousands)	Amortized Cost		Allowance for Credit Losses		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	5,683	$	—	$	—	$	(637)	$	5,046
Collateralized mortgage obligations	6,325		—		7		(625)		5,707
Total securities held-to-maturity	$	12,008	$	—	$	7	$	(1,262)	$	10,753


	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	6,655		—		8		(770)		5,893
Total securities held-to-maturity	$	12,565	$	—	$	8	$	(1,516)	$	11,057

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 March 31, 2025 and December 31, 2024:


	March 31, 2025
	Less than 12 months				12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses




Held-to-maturity:
Mortgage-backed securities	$	447	$	(10)	$	4,599	$	(627)	$	5,046	$	(637)
Collateralized mortgage obligations	624		(8)		3,606		(617)		4,230		(625)
Total	$	1,071	$	(18)	$	8,205	$	(1,244)	$	9,276	$	(1,262)


	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)

- 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).

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+ Details

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Statement of Comprehensive Income [Abstract]
Net income	$ 3,189	$ 3,315
Other comprehensive income items, net of tax:
Unrealized gain on securities available-for-sale	203	0
Tax effect	(45)	0
Unrealized loss on interest rate swaps	(254)	0
Recognition of previously unrealized gain on interest rate swaps in net income	(113)	0
Tax effect	41	0
Other comprehensive loss, net of tax	(168)	0
Comprehensive income	$ 3,021	$ 3,315

Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2025

Equity [Abstract]

Accumulated Other Comprehensive Income

The following table presents changes to accumulated other comprehensive income by component for the three months ended March 31, 2025 (in thousands):


	Available-for-Sale Securities		Cash Flow Hedges		Accumulated OCI
Balance at December 31, 2024	$	(73)	$	260	$	187
Other comprehensive income (loss) before reclassifications and income tax	203		(254)		(51)
Amounts reclassified from accumulated other comprehensive income	—		(113)		(113)
Income tax (expense) benefit	(45)		41		(4)
Total other comprehensive income (loss)	158		(326)		(168)
Balance at March 31, 2025	$	85	$	(66)	$	19

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure
Net income	$ 3,189	$ 3,315

- Definition

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+ Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,247	$ 1,194
Effective income tax rate	28.10%	26.50%

- Definition

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

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+ Details

Loans - Modified Loans (Details) $ in Thousands	3 Months Ended
Loans - Modified Loans (Details) $ in Thousands	Mar. 31, 2025 USD ($) contract	Mar. 31, 2024 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts modified \| contract	0	2
Loan default on commercial real estate owner occupied	$ 200	$ 0
Payment Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost of loan modified in the period		$ 418
Owner occupied \| Payment Deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal deferment (Months)		11 months
Amortized cost of loan modified in the period		$ 418
Loan type (as a percent)		0.22%

Fair Value of Financial Instruments - Quantitative Information for Level 3 Fair Value Measurements (Details) - Level 3 $ in Thousands	Mar. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans	$ 29,370	$ 35,723
Market comparable \| Discount to appraisal value for estimated selling costs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Individually evaluated loans, measurement input	0.1140	0.1140

Investments - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Held-to-maturity:
Less than 12 months, fair value	$ 1,071	$ 633
Less than 12 months, unrealized losses	(18)	(17)
12 Months or more, fair value	8,205	8,752
12 Months or more, unrealized losses	(1,244)	(1,499)
Total, fair value	9,276	9,385
Total, unrealized losses	(1,262)	(1,516)
Available-for-sale:
Less than 12 months, fair value		27,448
Less than 12 months, unrealized losses		(101)
12 months or more, fair value		0
12 months or more, unrealized losses		0
Total, fair value		27,448
Total, unrealized losses		(101)
US Treasury Securities
Available-for-sale:
Less than 12 months, fair value		27,448
Less than 12 months, unrealized losses		(101)
12 months or more, fair value		0
12 months or more, unrealized losses		0
Total, fair value		27,448
Total, unrealized losses		(101)
Mortgage-backed securities
Held-to-maturity:
Less than 12 months, fair value	447	0
Less than 12 months, unrealized losses	(10)	0
12 Months or more, fair value	4,599	5,164
12 Months or more, unrealized losses	(627)	(746)
Total, fair value	5,046	5,164
Total, unrealized losses	(637)	(746)
Collateralized mortgage obligations
Held-to-maturity:
Less than 12 months, fair value	624	633
Less than 12 months, unrealized losses	(8)	(17)
12 Months or more, fair value	3,606	3,588
12 Months or more, unrealized losses	(617)	(753)
Total, fair value	4,230	4,221
Total, unrealized losses	$ (625)	$ (770)

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2025
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 de minimis loans outstanding to related parties as of March 31, 2025 and December 31, 2024. Total deposits from certain executive officers and directors and the companies with which they are associated were $2.5 million and $2.1 million as of March 31, 2025 and December 31, 2024, respectively. BFG is a small business loan broker, primarily under the SBA’s 7(a) loan program. As noted in Note 7 - Investment in Business Funding Group, the Company has a 20% ownership in the outstanding membership units of BFG. The Company underwrites loans sourced by BFG in its normal course of business. If approved and funded, the Company pays BFG a commission fee based on the amount funded. There is no guarantee or commitment made by the Company to BFG to approve or fund loans referred by BFG. The Company is able to use its sole discretion in deciding to approve and fund loans referred by BFG. SBA 7(a) loans sourced from BFG totaled $21.7 million and $13.3 million for the three months ended March 31, 2025 and 2024, respectively. The Company paid commission fees to BFG in the amounts of $0.9 million and $0.5 million for the three months ended March 31, 2025 and 2024, respectively. The Company received distributions from BFG in the amounts of $0.5 million and $0.2 million for the three months ended March 31, 2025 and 2024, 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.

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+ Details

Investment in Business Funding Group, LLC	3 Months Ended
Investment in Business Funding Group, LLC	Mar. 31, 2025
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 common stock of the Company. On February 5, 2024, the transaction was consummated and the Company issued in the aggregate 339,176 shares of common stock of the Company 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 the Company’s 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 discussion on the Company’s investment in BFG, see Note 9 - Fair Value of Financial Instruments and 12 - Related Party Transactions.

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2025	May 08, 2025
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2025
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,214,827
Entity Central Index Key	0001856365
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Cash and cash equivalents
Cash and due from banks	$ 8,155	$ 9,600
Interest-bearing deposits in other banks (restricted cash of $3.2 million and $3.1 million, respectively)	112,117	99,562
Total cash and cash equivalents	120,272	109,162
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $30.0 million and $30.0 million, respectively)	30,138	29,930
Investment securities held-to-maturity, net of allowance for credit losses of $0, (fair value of $10.8 million and $11.1 million, respectively)	12,008	12,565
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost	440	349
Strategic Program loans held-for-sale, at lower of cost or fair value	118,769	91,588
Loans held-for-investment, net of allowance for credit losses of $14.2 million and $13.2 million, respectively	472,402	447,812
Credit enhancement asset	195	111
Premises and equipment, net	3,123	3,548
Assets subject to operating leases, net of accumulated depreciation of $3.2 million and $2.7 million, respectively	10,767	10,176
Accrued interest receivable	2,708	3,566
Deferred income taxes, net	290	0
Small Business Administration (“SBA”) servicing asset, net	3,331	3,273
Investment in Business Funding Group (“BFG”), at fair value	8,100	7,700
Operating lease right-of-use (“ROU”) assets	3,555	3,564
Income taxes receivable, net	3,353	8,868
Other assets	14,678	13,764
Total assets	804,129	745,976
Deposits
Noninterest-bearing	123,322	126,782
Interest-bearing	482,437	418,170
Total deposits	605,759	544,952
Accrued interest payable	2,750	1,494
Income taxes payable, net	962	4,423
Deferred income taxes, net	0	899
Operating lease liabilities	5,226	5,302
Other liabilities	12,071	15,186
Total liabilities	626,768	572,256
Commitments and contingencies (Note 6)
Shareholders’ equity
Preferred stock, $0.001 par value, 4,000,000 authorized; no shares issued and outstanding as of March 31, 2025 and December 31, 2024	0	0
Common stock, $0.001 par value, 40,000,000 shares authorized; 13,216,903 and 13,211,640 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	13	13
Additional paid-in-capital	57,548	56,926
Retained earnings	119,781	116,594
Accumulated other comprehensive income, net of tax	19	187
Total shareholders’ equity	177,361	173,720
Total liabilities and shareholders’ equity	$ 804,129	$ 745,976

Loans - Allowance for Credit Loss by Loan Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	$ 492,223	$ 465,233
Construction and land development
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	47,429	42,331
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	58,467	61,316
Residential real estate multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	1,688	1,692
Commercial real estate - owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	201,075	190,286
Commercial real estate - non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	13,305	12,849
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	50,771	44,329
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	22,749	22,155
Lease financing receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	76,823	70,153
Retained Strategic Program loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	$ 19,916	$ 20,122

Commitments and Contingencies

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Federal Home Loan Bank Secured Line of Credit

As of March 31, 2025 and December 31, 2024, the Bank’s available line of credit with the FHLB to borrow funds was $25.7 million and $25.0 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 March 31, 2025 and December 31, 2024, no amounts were outstanding under the line of credit. Loans totaling $43.4 million and $41.6 million were pledged to secure the FHLB line of credit as of March 31, 2025 and December 31, 2024, respectively.

Other Lines of Credit

At March 31, 2025 and December 31, 2024, the Bank had the ability to borrow $246.3 million and $239.2 million, respectively, in total from the Federal Reserve Bank (“FRB”) on a collateralized basis through the Discount Window and/or the borrower-in-custody (“BIC”) program. Loans totaling $277.1 million and $240.8 million and securities of $42.0 million and $42.6 million were pledged to secure these lines of credit with the FRB as of March 31, 2025 and December 31, 2024, respectively. In 2024, the Bank was accepted into the FRB’s borrower-in-custody program, which allows financial institutions to pledge loans that are not pledged to the FHLB as collateral for FRB’s Discount Window advances while retaining possession or control of the collateral. The Bank can borrow a maximum of $206.1 million and $198.8 million as of March 31, 2025 and December 31, 2024, respectively, under the BIC program utilizing the loans pledged to the FRB while under the Discount Window the Bank can borrow a maximum of $246.3 million and $239.2 million, respectively, utilizing both the aforementioned loans as well as the securities pledged to the FRB. In no instance can the Bank exceed outstanding borrowings of $246.3 million and $239.2 million as of March 31, 2025 and December 31, 2024, respectively. The Company had no advances outstanding under either program as of March 31, 2025 and December 31, 2024.

Through Zions Bank, the Bank had an available unsecured line of credit of $5.0 million at March 31, 2025 and December 31, 2024. 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 March 31, 2025 and December 31, 2024. The Bank had no outstanding balances on such unsecured or secured lines of credit as of March 31, 2025 and 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 dates 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 March 31, 2025 and December 31, 2024, financial instruments with off-balance-sheet risk were as follows:


	March 31,		December 31,
($ in thousands)	2025		2024
Revolving, open-end lines of credit	$	2,409	$	2,365
Undisbursed commercial real estate loans	24,269		23,200
Other unused commitments	397		830
Total unfunded loan commitments	$	27,075	$	26,395

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 $0.5 million as of March 31, 2025 and December 31, 2024, respectively.

SBA Servicing Asset, Net - SBA Servicing Asset Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	$ 3,273	$ 4,231
Additions to servicing asset	315	0
Amortization of servicing asset	(337)	(357)
Change in valuation allowance	80	198
Balance at end of period	3,331	4,072
SBA servicing asset, fair value	$ 3,331	$ 4,072

Loans (Tables)

3 Months Ended

Mar. 31, 2025

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Loans Outstanding by General Ledger Classification

Loans held-for-investment outstanding by general ledger classification as of March 31, 2025 and December 31, 2024, consisted of the following:


	March 31,		December 31,
	2025		2024
($ in thousands)
SBA(1)	$	246,004	$	255,056
Commercial leases	76,823		70,153
Commercial, non-real estate	3,550		3,691
Residential real estate	55,814		51,574
Strategic Program loans	19,916		20,122
Commercial real estate:
Owner occupied	65,920		41,046
Non-owner occupied	1,390		1,379
Consumer	22,806		22,212
Total loans held-for-investment, gross	$	492,223	$	465,233
Deferred loan fees, net	(5,586)		(4,245)
Allowance for credit losses	(14,235)		(13,176)
Loans held-for-investment, net	$	472,402	$	447,812

(1) Included in the SBA loans held-for-investment above are $150.0 million and $158.7 million of loans guaranteed by the SBA as of March 31, 2025 and December 31, 2024, 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 March 31, 2025 and December 31, 2024 are based on the CECL methodology:


	March 31, 2025		December 31, 2024
($ in thousands)
Construction and land development	$	47,429	$	42,331
Residential real estate	58,467		61,316
Residential real estate multifamily	1,688		1,692
Commercial real estate:
Owner occupied	201,075		190,286
Non-owner occupied	13,305		12,849
Commercial and industrial	50,771		44,329
Consumer	22,749		22,155
Lease financing receivables	76,823		70,153
Retained Strategic Program loans	19,916		20,122
Total loans held-for-investment, gross	$	492,223	$	465,233

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


As of March 31, 2025			Collateral Type
($ in thousands)	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	—	$	—	$	—
Residential real estate	—		7,165		—		7,165
Commercial real estate:
Owner occupied	56		17,358		—		17,358
Non-owner occupied	—		2,796		—		2,796
Commercial and industrial	—		—		1,635		1,635
Commercial leases	94		—		416		416
Total	$	150	$	27,319	$	2,051	$	29,370

The amount of collateral-dependent loans as of March 31, 2025 include $14.9 million of SBA 7(a) loan balances that are guaranteed by the SBA.


As of December 31, 2024			Collateral Type
($ in thousands)	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.

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

Strategic Program loans retained and held-for-sale as of March 31, 2025 and December 31, 2024, are summarized as follows:


	March 31, 2025		December 31, 2024
($ in thousands)
Retained Strategic Program loans	$	19,916	$	20,122
Strategic Program loans held-for-sale	118,769		91,588
Total Strategic Program loans	$	138,685	$	111,710

Schedule of Changes in Allowance for Loan Losses

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


	Three Months Ended March 31, 2025
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	374	$	614	$	—	$	—	$	988
Residential real estate	788		(186)		(7)		3		598
Residential real estate multifamily	38		—		—		—		38
Commercial real estate:
Owner occupied	2,834		850		(68)		16		3,632
Non-owner occupied	113		13		—		—		126
Commercial and industrial	700		(200)		(83)		14		431
Consumer	638		46		(11)		3		676
Lease financing receivables	1,387		269		(36)		(33)		1,587
Retained Strategic Program loans	6,304		1,901		(2,384)		338		6,159
Total allowance for credit losses on financing receivables	$	13,176	$	3,307	$	(2,589)	$	341	$	14,235

Unfunded lending commitments	464		29		—		—		493
Total allowance for credit losses	$	13,640	$	3,336	$	(2,589)	$	341	$	14,728


	Three Months Ended March 31, 2024
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	316	$	17	$	—	$	—	$	333
Residential real estate	956		54		(64)		53		999
Residential real estate multifamily	6		2		—		—		8
Commercial real estate:
Owner occupied	3,336		1,096		(525)		3		3,910
Non-owner occupied	282		36		—		—		318
Commercial and industrial	361		175		(54)		—		482
Consumer	211		95		(41)		—		265
Lease financing receivables	355		312		(111)		—		556
Retained Strategic Program loans	7,065		1,358		(2,946)		284		5,761
Total allowance for credit losses on financing receivables	$	12,888	$	3,145	$	(3,741)	$	340	$	12,632

Unfunded lending commitments	139		9		—		—		148
Total allowance for credit losses	$	13,027	$	3,154	$	(3,741)	$	340	$	12,780

Schedule of Nonaccrual and Past Due Loans

Nonaccrual and past due loans are summarized below as of March 31, 2025 and December 31, 2024:


March 31, 2025
	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	$	1,246	$	—	$	1,246	$	—	$	—	$	46,183	$	47,429
Residential real estate	—		—		—		7,165		—		51,302		58,467
Residential real estate multifamily	—		—		—		—		—		1,688		1,688
Commercial real estate:
Owner occupied	3,180		—		3,180		14,592		2,766		180,537		201,075
Non-owner occupied	—		—		—		2,796		—		10,509		13,305
Commercial and industrial	—		—		—		1,635		—		49,136		50,771
Consumer	1,647		146		1,793		—		—		20,956		22,749
Commercial leases	493		—		493		311		105		75,914		76,823
Retained Strategic Program loans	1,862		—		1,862		—		—		18,054		19,916
Total	$	8,428	$	146	$	8,574	$	26,499	$	2,871	$	454,279	$	492,223

(1) Included in the nonaccrual loan balances are $14.9 million of SBA 7(a) loan balances guaranteed by the SBA.


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		69,514		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	$	425,247	$	465,233

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

Schedule of Outstanding Loan Balances Categorized by Credit Quality Indicators

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 March 31, 2025, in addition to the gross writeoff by collateral type for the three months ended March 31, 2025. The loans are grouped based on how they are assessed under CECL.


	Loans and Leases Amortized Cost Basis by Origination Year
March 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
($ in thousands)
Construction and land development
Pass	$	6,227	$	22,724	$	6,512	$	9,529	$	2,437	$	—	$	—	$	47,429
Watch	—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Total	6,227		22,724		6,512		9,529		2,437		—		—		47,429


Current period gross writeoff	—	—	—	—	—	—	—	—

Residential real estate
Pass	141	2,805	1,154	586	515	1,687	—	6,888
Watch	8,234	11,689	12,482	4,042	1,034	1,268	—	38,749
Special Mention	—	—	3,719	1,758	—	39	—	5,516
Substandard	—	—	—	7,121	44	149	—	7,314
Total	8,375	14,494	17,355	13,507	1,593	3,143	—	58,467
Current period gross writeoff	—	—	—	—	(7)	—	—	(7)

Residential real estate multifamily
Pass	—	1,037	292	255	78	—	—	1,662
Watch	—	—	—	—	—	26	—	26
Special Mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—	—
Total	—	1,037	292	255	78	26	—	1,688
Current period gross writeoff	—	—	—	—	—	—	—	—

Commercial real estate - owner occupied
Pass	27,317	25,267	3,879	3,458	1,176	7,685	—	68,782
Watch	9,080	24,597	39,604	20,072	5,298	3,740	—	102,391
Special Mention	—	—	2,483	7,872	—	2,189	—	12,544
Substandard	—	171	11,823	2,368	1,414	1,582	—	17,358
Total	36,397	50,035	57,789	33,770	7,888	15,196	—	201,075
Current period gross writeoff	—	—	(71)	24	—	(21)	—	(68)

Commercial real estate - non-owner occupied
Pass	563	410	—	1,243	—	331	—	2,547
Watch	—	1,195	3,752	1,799	1,087	129	—	7,962
Special Mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	2,796	—	—	—	2,796
Total	563	1,605	3,752	5,838	1,087	460	—	13,305
Current period gross writeoff	—	—	—	—	—	—	—	—

Commercial and industrial
Pass	38	2,715	600	497	301	376	—	4,527
Watch	3,679	22,370	14,397	2,866	373	529	—	44,214
Special Mention	—	—	—	—	—	30	—	30


Substandard	—		—		1,188		390		—		422		—		2,000
Total	3,717		25,085		16,185		3,753		674		1,357		—		50,771
Current period gross writeoff	—		—		—		(54)		—		(29)		—		(83)

Consumer
Pass	3,551		13,915		3,712		942		255		251		—		22,626
Watch	—		111		5		7		—		—		—		123
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—

Total	3,551		14,026		3,717		949		255		251		—		22,749
Current period gross writeoff	—		—		—		(9)		—		(2)		—		(11)

Lease financing receivables
Pass	12,030		40,961		19,880		3,522		—		14		—		76,407
Watch	—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		416		—		—		—		—		416
Total	12,030		40,961		20,296		3,522		—		14		—		76,823
Current period gross writeoff	—		—		(36)		—		—		—		—		(36)

Retained Strategic Program loans
Pass	—		—		—		—		—		—		—		—
Watch	—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Not Rated	7,060		10,776		937		825		318		—		—		19,916
Total	7,060		10,776		937		825		318		—		—		19,916
Current period gross writeoff	(12)		(2,055)		(208)		(88)		(21)		—		—		(2,384)

Total portfolio loans receivable, gross	$	77,920	$	180,743	$	126,835	$	71,948	$	14,330	$	20,447	$	—	$	492,223
Total current period gross writeoff	$	(12)	$	(2,055)	$	(315)	$	(127)	$	(28)	$	(52)	$	—	$	(2,589)

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)

Schedule of Loans Modified and Recorded as TDR's

During the three months ended March 31, 2025 there were no new material loan modifications. During the three months ended March 31, 2025, there was a payment default of $0.2 million on a commercial real estate owner occupied 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. The remaining modified loans were current as of March 31, 2025 and December 31, 2024.

During the three months ended March 31, 2024 there were two material loan modifications. There were no payment defaults during the three months ended March 31, 2024 of modified loans that were modified during the previous twelve months.


($ in thousands)	Principal deferment (Months)	Outstanding Balance		% of Total Loan Type
Commercial real estate:
Owner occupied	11 months	$	418	0.22	%
Total principal		$	418

Fair Value of Financial Instruments - Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024	Mar. 31, 2024	Dec. 31, 2023
Financial assets:
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $30.0 million and $30.0 million, respectively)	$ 30,138	$ 29,930
Investment securities held-to-maturity	10,753	11,057
Accrued interest receivable	2,708	3,566
SBA servicing asset, net	3,331	3,273	$ 4,072	$ 4,231
Investment in BFG	8,100	7,700
Financial liabilities:
Accrued interest payable	2,750	1,494
Carrying Amount
Financial assets:
Cash and cash equivalents	120,272	109,162
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $30.0 million and $30.0 million, respectively)	30,138	29,930
Investment securities held-to-maturity	12,008	12,565
Investment in FHLB stock	440	349
Loans held-for-investment, net	472,402	447,812
Strategic Program loans held-for-sale	118,769	91,588
Accrued interest receivable	2,708	3,566
SBA servicing asset, net	3,331	3,273
Investment in BFG	8,100	7,700
Derivative asset	81	509
Financial liabilities:
Total deposits	605,759	544,952
Accrued interest payable	2,750	1,494
PPPLF	32	64
Estimated Fair Value
Financial assets:
Cash and cash equivalents	120,272	109,162
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $30.0 million and $30.0 million, respectively)	30,138	29,930
Investment securities held-to-maturity	10,753	11,057
Investment in FHLB stock	440	349
Loans held-for-investment, net	504,531	478,919
Strategic Program loans held-for-sale	118,769	91,588
Accrued interest receivable	2,708	3,566
SBA servicing asset, net	3,331	3,273
Investment in BFG	8,100	7,700
Derivative asset	81	509
Financial liabilities:
Total deposits	588,988	528,253
Accrued interest payable	2,750	1,494
PPPLF	32	64
Estimated Fair Value \| Level 1
Financial assets:
Cash and cash equivalents	120,272	109,162
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $30.0 million and $30.0 million, respectively)	30,138	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	0	0
Derivative asset	0	0
Financial liabilities:
Total deposits	0	0
Accrued interest payable	0	0
PPPLF	0	0
Estimated Fair Value \| Level 2
Financial assets:
Cash and cash equivalents	0	0
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $30.0 million and $30.0 million, respectively)	0	0
Investment securities held-to-maturity	10,753	11,057
Investment in FHLB stock	440	349
Loans held-for-investment, net	0	0
Strategic Program loans held-for-sale	118,769	91,588
Accrued interest receivable	2,708	3,566
SBA servicing asset, net	3,331	3,273
Investment in BFG	0	0
Derivative asset	81	509
Financial liabilities:
Total deposits	588,988	528,253
Accrued interest payable	2,750	1,494
PPPLF	32	64
Estimated Fair Value \| Level 3
Financial assets:
Cash and cash equivalents	0	0
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $30.0 million and $30.0 million, respectively)	0	0
Investment securities held-to-maturity	0	0
Investment in FHLB stock	0	0
Loans held-for-investment, net	504,531	478,919
Strategic Program loans held-for-sale	0	0
Accrued interest receivable	0	0
SBA servicing asset, net	0	0
Investment in BFG	8,100	7,700
Derivative asset	0	0
Financial liabilities:
Total deposits	0	0
Accrued interest payable	0	0
PPPLF	$ 0	$ 0

Loans - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Loans - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Interest income	$ 0	$ 0
Accrued interest that was reversed against interest income	200	$ 100
Nonaccrual Loans with no ACL	26,499		$ 29,318
Strategic Program loans
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Cash held in reserve by strategic programs	36,400		54,000
Total loans held-for-investment, gross	19,900		20,100
Outstanding modified loans	1,100		4,400
Nonaccrual Loans with no ACL	$ 0		$ 0

Investment in Business Funding Group, LLC (Details) $ / shares in Units, $ in Thousands	Feb. 05, 2024 shares	Jul. 25, 2023	Dec. 31, 2019 USD ($) shares	Mar. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)	Mar. 31, 2020 $ / shares shares
Schedule of Equity Method Investments [Line Items]
Investment in BFG \| $				$ 8,100	$ 7,700
Business Funding Group, LLC
Schedule of Equity Method Investments [Line Items]
Membership interest	20.00%		10.00%	20.00%
BFG ownership purchase (in shares)			950,784
Investment in BFG \| $			$ 3,500
Additional ownership percentage		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
Fair value of warrants issued per share (in dollars per share) \| $ / shares						$ 0.19
Business Funding Group, LLC \| Private Placement
Schedule of Equity Method Investments [Line Items]
BFG ownership purchase (in shares)	339,176
Business Funding Group, LLC \| Minimum
Schedule of Equity Method Investments [Line Items]
Earnings multiplier used for purchase price						10
Business Funding Group, LLC \| Maximum
Schedule of Equity Method Investments [Line Items]
Earnings multiplier used for purchase price						15
Business Funding Group, LLC \| Class A Voting Units
Schedule of Equity Method Investments [Line Items]
Membership interest	4.70%
Business Funding Group, LLC \| Class B Non-Voting Units
Schedule of Equity Method Investments [Line Items]
Membership interest	15.30%

Loans

3 Months Ended

Mar. 31, 2025

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans held-for-investment outstanding by general ledger classification as of March 31, 2025 and December 31, 2024, consisted of the following:


	March 31,		December 31,
	2025		2024
($ in thousands)
SBA(1)	$	246,004	$	255,056
Commercial leases	76,823		70,153
Commercial, non-real estate	3,550		3,691
Residential real estate	55,814		51,574
Strategic Program loans	19,916		20,122
Commercial real estate:
Owner occupied	65,920		41,046
Non-owner occupied	1,390		1,379
Consumer	22,806		22,212
Total loans held-for-investment, gross	$	492,223	$	465,233
Deferred loan fees, net	(5,586)		(4,245)
Allowance for credit losses	(14,235)		(13,176)
Loans held-for-investment, net	$	472,402	$	447,812

(1) Included in the SBA loans held-for-investment above are $150.0 million and $158.7 million of loans guaranteed by the SBA as of March 31, 2025 and December 31, 2024, 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, for which the Company incurs a cost.

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 March 31, 2025 and December 31, 2024, was $36.4 million and $54.0 million, respectively.

Strategic Program loans retained and held-for-sale as of March 31, 2025 and December 31, 2024, are summarized as follows:


	March 31, 2025		December 31, 2024
($ in thousands)
Retained Strategic Program loans	$	19,916	$	20,122
Strategic Program loans held-for-sale	118,769		91,588
Total Strategic Program loans	$	138,685	$	111,710

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 March 31, 2025 and December 31, 2024 are based on the CECL methodology:


	March 31, 2025		December 31, 2024
($ in thousands)
Construction and land development	$	47,429	$	42,331
Residential real estate	58,467		61,316
Residential real estate multifamily	1,688		1,692
Commercial real estate:
Owner occupied	201,075		190,286
Non-owner occupied	13,305		12,849
Commercial and industrial	50,771		44,329
Consumer	22,749		22,155
Lease financing receivables	76,823		70,153
Retained Strategic Program loans	19,916		20,122
Total loans held-for-investment, gross	$	492,223	$	465,233

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


	Three Months Ended March 31, 2025
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	374	$	614	$	—	$	—	$	988
Residential real estate	788		(186)		(7)		3		598
Residential real estate multifamily	38		—		—		—		38
Commercial real estate:
Owner occupied	2,834		850		(68)		16		3,632
Non-owner occupied	113		13		—		—		126
Commercial and industrial	700		(200)		(83)		14		431
Consumer	638		46		(11)		3		676
Lease financing receivables	1,387		269		(36)		(33)		1,587
Retained Strategic Program loans	6,304		1,901		(2,384)		338		6,159
Total allowance for credit losses on financing receivables	$	13,176	$	3,307	$	(2,589)	$	341	$	14,235

Unfunded lending commitments	464		29		—		—		493
Total allowance for credit losses	$	13,640	$	3,336	$	(2,589)	$	341	$	14,728


	Three Months Ended March 31, 2024
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	316	$	17	$	—	$	—	$	333
Residential real estate	956		54		(64)		53		999
Residential real estate multifamily	6		2		—		—		8
Commercial real estate:
Owner occupied	3,336		1,096		(525)		3		3,910
Non-owner occupied	282		36		—		—		318
Commercial and industrial	361		175		(54)		—		482
Consumer	211		95		(41)		—		265
Lease financing receivables	355		312		(111)		—		556
Retained Strategic Program loans	7,065		1,358		(2,946)		284		5,761
Total allowance for credit losses on financing receivables	$	12,888	$	3,145	$	(3,741)	$	340	$	12,632

Unfunded lending commitments	139		9		—		—		148
Total allowance for credit losses	$	13,027	$	3,154	$	(3,741)	$	340	$	12,780

Nonaccrual and past due loans are summarized below as of March 31, 2025 and December 31, 2024:


March 31, 2025
	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	$	1,246	$	—	$	1,246	$	—	$	—	$	46,183	$	47,429
Residential real estate	—		—		—		7,165		—		51,302		58,467
Residential real estate multifamily	—		—		—		—		—		1,688		1,688
Commercial real estate:
Owner occupied	3,180		—		3,180		14,592		2,766		180,537		201,075
Non-owner occupied	—		—		—		2,796		—		10,509		13,305
Commercial and industrial	—		—		—		1,635		—		49,136		50,771
Consumer	1,647		146		1,793		—		—		20,956		22,749
Commercial leases	493		—		493		311		105		75,914		76,823
Retained Strategic Program loans	1,862		—		1,862		—		—		18,054		19,916
Total	$	8,428	$	146	$	8,574	$	26,499	$	2,871	$	454,279	$	492,223

(1) Included in the nonaccrual loan balances are $14.9 million of SBA 7(a) loan balances guaranteed by the SBA.


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		69,514		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	$	425,247	$	465,233

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

There was no interest income recognized for the three months ended March 31, 2025 and 2024, while loans were classified as nonaccrual. The amount of accrued interest for the three months ended March 31, 2025 and 2024, that was reversed against interest income on nonaccrual loans was approximately $0.2 million and $0.1 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 the Company’s 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 effected 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.


	Loans and Leases Amortized Cost Basis by Origination Year
March 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
($ in thousands)
Construction and land development
Pass	$	6,227	$	22,724	$	6,512	$	9,529	$	2,437	$	—	$	—	$	47,429
Watch	—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Total	6,227		22,724		6,512		9,529		2,437		—		—		47,429


Current period gross writeoff	—	—	—	—	—	—	—	—

Residential real estate
Pass	141	2,805	1,154	586	515	1,687	—	6,888
Watch	8,234	11,689	12,482	4,042	1,034	1,268	—	38,749
Special Mention	—	—	3,719	1,758	—	39	—	5,516
Substandard	—	—	—	7,121	44	149	—	7,314
Total	8,375	14,494	17,355	13,507	1,593	3,143	—	58,467
Current period gross writeoff	—	—	—	—	(7)	—	—	(7)

Residential real estate multifamily
Pass	—	1,037	292	255	78	—	—	1,662
Watch	—	—	—	—	—	26	—	26
Special Mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—	—
Total	—	1,037	292	255	78	26	—	1,688
Current period gross writeoff	—	—	—	—	—	—	—	—

Commercial real estate - owner occupied
Pass	27,317	25,267	3,879	3,458	1,176	7,685	—	68,782
Watch	9,080	24,597	39,604	20,072	5,298	3,740	—	102,391
Special Mention	—	—	2,483	7,872	—	2,189	—	12,544
Substandard	—	171	11,823	2,368	1,414	1,582	—	17,358
Total	36,397	50,035	57,789	33,770	7,888	15,196	—	201,075
Current period gross writeoff	—	—	(71)	24	—	(21)	—	(68)

Commercial real estate - non-owner occupied
Pass	563	410	—	1,243	—	331	—	2,547
Watch	—	1,195	3,752	1,799	1,087	129	—	7,962
Special Mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	2,796	—	—	—	2,796
Total	563	1,605	3,752	5,838	1,087	460	—	13,305
Current period gross writeoff	—	—	—	—	—	—	—	—

Commercial and industrial
Pass	38	2,715	600	497	301	376	—	4,527
Watch	3,679	22,370	14,397	2,866	373	529	—	44,214
Special Mention	—	—	—	—	—	30	—	30


Substandard	—		—		1,188		390		—		422		—		2,000
Total	3,717		25,085		16,185		3,753		674		1,357		—		50,771
Current period gross writeoff	—		—		—		(54)		—		(29)		—		(83)

Consumer
Pass	3,551		13,915		3,712		942		255		251		—		22,626
Watch	—		111		5		7		—		—		—		123
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—

Total	3,551		14,026		3,717		949		255		251		—		22,749
Current period gross writeoff	—		—		—		(9)		—		(2)		—		(11)

Lease financing receivables
Pass	12,030		40,961		19,880		3,522		—		14		—		76,407
Watch	—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		416		—		—		—		—		416
Total	12,030		40,961		20,296		3,522		—		14		—		76,823
Current period gross writeoff	—		—		(36)		—		—		—		—		(36)

Retained Strategic Program loans
Pass	—		—		—		—		—		—		—		—
Watch	—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Not Rated	7,060		10,776		937		825		318		—		—		19,916
Total	7,060		10,776		937		825		318		—		—		19,916
Current period gross writeoff	(12)		(2,055)		(208)		(88)		(21)		—		—		(2,384)

Total portfolio loans receivable, gross	$	77,920	$	180,743	$	126,835	$	71,948	$	14,330	$	20,447	$	—	$	492,223
Total current period gross writeoff	$	(12)	$	(2,055)	$	(315)	$	(127)	$	(28)	$	(52)	$	—	$	(2,589)


	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)

Modified Loans to Troubled Borrowers

Modified loans to troubled borrowers arise from a modification made to a loan in order to alleviate temporary difficulties in the borrower’s financial condition or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. GAAP requires that certain types of modifications be reported, which consist of the following: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension, or any combination of the foregoing.


($ in thousands)	Principal deferment (Months)	Outstanding Balance		% of Total Loan Type
Commercial real estate:
Owner occupied	11 months	$	418	0.22	%
Total principal		$	418

Modified Retained Strategic Program Loans

Retained Strategic Program loans of $19.9 million and $20.1 million as of March 31, 2025 and December 31, 2024, 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 the Company’s strategic programs will modify the original loan terms to optimize the recovery of principal and interest. The loan modifications may 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 March 31, 2025, the balance of outstanding modified loans to individuals in the retained portfolio was approximately $1.1 million. As of December 31, 2024, the balance of outstanding modified loans to individuals in the retained portfolio was approximately $4.4 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:


As of March 31, 2025			Collateral Type
($ in thousands)	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	—	$	—	$	—
Residential real estate	—		7,165		—		7,165
Commercial real estate:
Owner occupied	56		17,358		—		17,358
Non-owner occupied	—		2,796		—		2,796
Commercial and industrial	—		—		1,635		1,635
Commercial leases	94		—		416		416
Total	$	150	$	27,319	$	2,051	$	29,370

The amount of collateral-dependent loans as of March 31, 2025 include $14.9 million of SBA 7(a) loan balances that are guaranteed by the SBA.


As of December 31, 2024			Collateral Type
($ in thousands)	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.

Capital Requirements (Details) $ in Thousands	Mar. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)
Amount
Actual	$ 138,667	$ 135,375
Well-Capitalized Requirement	$ 66,374	$ 59,196
Ratio
Actual	0.188	0.206
Well-Capitalized Requirement	0.090	0.090

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

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

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

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

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

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. There were no transfers between fair value levels for the three months ended March 31, 2025 and 2024.

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 available-for-sale consist of U.S. Treasury securities and are carried at fair value. The Company estimates the fair value of investment securities available-for-sale 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 4.5% discount to non-voting shares to arrive at fair value as of March 31, 2025 and December 31, 2024. The calculation of fair value utilized significant unobservable inputs, including projected cash flows, growth rates, and discount rates.

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 at the periods indicated:


		March 31, 2025		December 31, 2024
($ in thousands)	Level	Estimated Fair Value		Estimated Fair Value
Financial assets:
U.S. Treasury securities	1	$	30,138	$	29,930
Investment in BFG	3	$	8,100	$	7,700
Derivative asset	2	$	81	$	509

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


	Three Months Ended March 31,
($ in thousands)	2025		2024
Beginning balance	$	7,700	$	4,200
Purchase of BFG ownership interest	—		4,125
Change in fair value of BFG	400		(125)
Ending balance	$	8,100	$	8,200

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


($ in thousands)			Fair Value Measurements Using
Description of Financial Instrument	Fair Value		Level 1		Level 2		Level 3
March 31, 2025
Nonrecurring assets:
Individually evaluated loans	$	29,370	$	—	$	—	$	29,370
December 31, 2024
Nonrecurring assets:
Individually evaluated loans	$	35,723	$	—	$	—	$	35,723

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 March 31, 2025 and December 31, 2024:

($ in thousands)

Fair Value

Valuation
Technique

Unobservable
Input

Range
(Weighted Average)

March 31, 2025

Individually evaluated loans

29,370

Market
comparable

Discount to appraisal value for estimated selling costs

11.40

December 31, 2024

Individually evaluated loans

35,723

Market
comparable

Discount to appraisal value for estimated selling costs

11.40

The range and weighted average of the significant unobservable inputs used to fair value the investment in BFG as of March 31, 2025 and as of December 31, 2024 are shown in the following table:


($ in thousands)	March 31, 2025 Range (Weighted Average)		December 31, 2024 Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate	15.3	%	15.3	%
Expense growth rate	14.9	%	14.9	%
Discount rate	25.0	%	27.5	%

Guideline Public Company
Multiples of enterprise value	3.3x to 4.8x		3.5x to 5.8x

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


	March 31, 2025
					Fair Value Measurements Using
($ in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	120,272	$	120,272	$	120,272	$	—	$	—
Investment securities available-for-sale	30,138		30,138		30,138		—		—
Investment securities held-to-maturity	12,008		10,753		—		10,753		—
Investment in FHLB stock	440		440		—		440		—
Loans held-for-investment, net	472,402		504,531		—		—		504,531
Strategic Program loans held-for-sale	118,769		118,769		—		118,769		—
Accrued interest receivable	2,708		2,708		—		2,708		—
SBA servicing asset, net	3,331		3,331		—		3,331		—
Investment in BFG	8,100		8,100		—		—		8,100
Derivative asset	81		81		—		81		—
Financial liabilities:
Total deposits	$	605,759	$	588,988	$	—	$	588,988	$	—
Accrued interest payable	2,750		2,750		—		2,750		—
PPPLF	32		32		—		32		—


	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		—

- 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
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

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

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

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

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

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

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Investments - Amortized Cost and Estimated Market Value of Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Amortized Cost
Due in one year or less	$ 0	$ 0
Due after one year through five years	1,281	1,365
Due after five years through ten years	766	807
Due after ten years	9,961	10,393
Amortized Cost	12,008	12,565
Estimated Fair Value
Due in one year or less	0	0
Due after one year through five years	1,228	1,301
Due after five years through ten years	707	734
Due after ten years	8,818	9,022
Estimated fair value	$ 10,753	$ 11,057

Business, Basis of Presentation, and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2025
Accounting Policies [Abstract]
Business, Basis of Presentation, and Summary of Significant Accounting Policies	Business, Basis of Presentation, and Summary of Significant Accounting Policies Nature of Business and Organization – FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah and operates all business activities through its wholly-owned subsidiaries, FinWise Bank (“Bank”) and FinWise Investment, LLC. The Bank provides a full range of banking services to individual and commercial customers and provides banking and payments solutions to fintech brands. As a technology-focused bank, the Bank also has established Strategic Programs with various third-party platforms that use technology to streamline the origination of consumer and business loans and process payments. FinWise Investment, LLC’s purpose is to hold and manage private investments made by the Company and the Bank. References to “FinWise Bancorp,” “Bancorp” or the “holding company,” refer to FinWise Bancorp on a standalone basis. References to the “Company” refer to FinWise Bancorp, FinWise Bank, and FinWise Investment, LLC collectively and on a consolidated basis. Basis of Presentation – The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. All significant inter-company transactions have been eliminated in consolidation. In the opinion of management, all the adjustments (consisting of normal and recurring adjustments) necessary for the fair statement of the consolidated financial condition and the consolidated results of operations for the periods presented have been included. The results of operations and other data presented for the three months ended March 31, 2025 are not necessarily indicative of the results of operations that may be expected for subsequent periods or the full year results. The consolidated balance sheet data as of December 31, 2024 was derived from audited financial statements; however, the accompanying notes to the unaudited consolidated financial statements do not include all of the annual disclosures required by GAAP and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Reclassifications – Reclassifications have been made to the interim consolidated financial statements to conform to the current year’s presentation. Certain of these reclassifications relate to the change in fair value of the 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 interim consolidated financial statements. Use of Estimates – In preparing the interim consolidated financial statements in accordance with 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. 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. During the three months ended March 31, 2025, there were no open-market share repurchases. 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. Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. ASU 2023-09 improves the transparency of annual 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. The Company adopted ASU 2023-09 effective January 1, 2025 and will include the incremental disclosures in its Annual Report on Form 10-K for the year ended December 31, 2025. 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.

Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

Derivative Assets

As of March 31, 2025

($ in thousands)

Notional Amount

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate swaps

80,000

Other assets

Total

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 March 31, 2025 (in thousands):


	Three Months Ended March 31, 2025
	Amount of Gain (Loss) 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	$	(254)	Interest on deposits	$	113
Total	$	(254)		$	113

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 Statement of Income for the three months ended March 31, 2025 (in thousands):


	Location and Amount of Gain Recognized in Income on Cash Flow Hedging Relationships
Location of gain recognized in income	Interest on deposits
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded	$	113

The effects of cash flow hedging:
Interest rate swaps
Amount of gain reclassified from accumulated OCI into income	$	113

Schedule of Offsetting Assets


As of March 31, 2025							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	$	81	$	—	$	81		$	—	$	—	$	81


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

Derivatives and Hedging Activities - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2025 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Additional amount expected to be reclassified as a reduction to interest expense	$ 0.1

Earnings per Share

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Earnings per Share


	Three Months Ended March 31,
	2025		2024
Numerator:
Net income	$	3,189	$	3,315
Amounts allocated to participating common shareholders(1)	(120)		(52)
Net income allocated to common shareholders	$	3,069	$	3,263
Denominator:
Weighted average shares outstanding, basic	12,716,155		12,502,448
Weighted average effect of dilutive securities:
Stock options	598,028		423,263
Warrants	169,464		115,894
Weighted average shares outstanding, diluted	13,483,647		13,041,605
Earnings per share, basic	$	0.24	$	0.26
Earnings per share, diluted	$	0.23	$	0.25

Anti-dilutive stock options excluded from the calculation of diluted earnings per share	658		120,379

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

Commitments and Contingencies - Narrative (Details) - USD ($)	Mar. 31, 2025	Dec. 31, 2024	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Allowance for credit losses on unfunded commitments	$ 493,000	$ 464,000	$ 148,000	$ 139,000
Borrower In Custody Program
Line of Credit Facility [Line Items]
Maximum borrowing capacity	206,100,000	198,800,000
Loans \| Asset Pledged as Collateral \| Federal Reserve Bank Advances
Line of Credit Facility [Line Items]
Total loans held-for-investment, gross	277,100,000	240,800,000
Other unused commitments \| Asset Pledged as Collateral \| Federal Reserve Bank Advances
Line of Credit Facility [Line Items]
Total loans held-for-investment, gross	42,000,000.0	42,600,000
Line of Credit
Line of Credit Facility [Line Items]
Long-term line of credit	0	0
Line of Credit \| Federal Home Loan Bank Secured Line of Credit
Line of Credit Facility [Line Items]
Available line of credit with the FHLB	25,700,000	25,000,000.0
Amounts outstanding under the FHLB line of credit	0	0
Loans pledged to secure FHLB line of credit	43,400,000	41,600,000
Line of Credit \| Federal Reserve Bank, Discount Window
Line of Credit Facility [Line Items]
Maximum borrowing capacity	246,300,000	239,200,000
Line of Credit \| Zions Bank
Line of Credit Facility [Line Items]
Maximum borrowing capacity	5,000,000.0	5,000,000.0
Line of Credit \| Bank of the West
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,100,000	$ 1,100,000

SBA Servicing Asset, Net

3 Months Ended

Mar. 31, 2025

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 $223.7 million and $218.4 million at March 31, 2025 and December 31, 2024, respectively.

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


	Three Months Ended March 31,
($ in thousands)	2025		2024
Balance at beginning of period	$	3,273	$	4,231
Additions to servicing asset	315		—
Amortization of servicing asset	(337)		(357)
Change in valuation allowance	80		198
Balance at end of period	$	3,331	$	4,072

SBA servicing asset, fair value	$	3,331	$	4,072

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


	Three Months Ended March 31,
($ in thousands)	2025		2024
Balance at beginning of period	$	(1,286)	$	(2,151)

Recovery	80		198
Balance at end of period	$	(1,206)	$	(1,953)

The fair market value of the SBA servicing asset as of March 31, 2025 and December 31, 2024, was $3.3 million and $3.3 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 21.0%, weighted average term of 3.27 years, and a weighted average discount rate of 11.7% at March 31, 2025.

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.

- 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.

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+ Details

Fair Value of Financial Instruments - Financial Instruments Valued on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Financial assets:
U.S. Treasury securities	$ 30,138	$ 29,930
Investment in BFG	8,100	7,700
Level 1 \| Fair Value, Recurring
Financial assets:
U.S. Treasury securities	30,138	29,930
Level 3 \| Fair Value, Recurring
Financial assets:
Investment in BFG	8,100	7,700
Level 2 \| Fair Value, Recurring
Financial assets:
Derivative asset	$ 81	$ 509

- 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.

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-URI https://asc.fasb.org/1943274/2147477271/946-320-S99-5A

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5B
-Subparagraph (SX 210.12-13B(Column E))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477271/946-320-S99-5B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5B
-Subparagraph (SX 210.12-13B(Column E)(Footnote 4))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477271/946-320-S99-5B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483466/210-20-50-3

Reference 30: http://www.xbrl.org/2003/role/exampleRef
-Topic 210
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483444/210-20-55-22

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483444/210-20-55-10

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-10

+ Details

Fair Value of Financial Instruments - Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Level 3
Nonrecurring assets:
Individually evaluated loans	$ 29,370	$ 35,723
Fair Value
Nonrecurring assets:
Individually evaluated loans	29,370	35,723
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	$ 29,370	$ 35,723

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Numerator:
Net income	$ 3,189	$ 3,315
Amounts allocated to participating common shareholders	(120)	(52)
Net income allocated to common shareholders	3,069	3,263
Net income allocated to common shareholders	$ 3,069	$ 3,263
Denominator:
Weighted average shares outstanding, basic (in shares)	12,716,155	12,502,448
Weighted average effect of dilutive securities:
Stock options (in shares)	598,028	423,263
Warrants (in shares)	169,464	115,894
Weighted average shares outstanding, diluted (in shares)	13,483,647	13,041,605
Earnings per share, basic (in dollars per share)	$ 0.24	$ 0.26
Earnings per share, diluted (in dollars per share)	$ 0.23	$ 0.25
Stock options
Weighted average effect of dilutive securities:
Anti-dilutive stock options excluded from the calculation of diluted earnings per share	658	120,379

Investments - Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	$ 12,008	$ 12,565
Allowance for Credit Losses	0	0
Unrealized Gain	7	8
Unrealized Loss	(1,262)	(1,516)
Estimated Fair Value	10,753	11,057
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	5,683	5,910
Allowance for Credit Losses	0	0
Unrealized Gain	0	0
Unrealized Loss	(637)	(746)
Estimated Fair Value	5,046	5,164
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	6,325	6,655
Allowance for Credit Losses	0	0
Unrealized Gain	7	8
Unrealized Loss	(625)	(770)
Estimated Fair Value	$ 5,707	$ 5,893

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

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

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

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

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

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

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

+ Details

Fair Value of Financial Instruments - Investment in BFG Activity (Details) - Fair Value, Recurring - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Equity Method Investments [Roll Forward]
Beginning balance	$ 7,700	$ 4,200
Purchase of BFG ownership interest	0	4,125
Change in fair value of BFG	400	(125)
Ending balance	$ 8,100	$ 8,200

Loans - Loans Summarized to Major Risk Category (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024	Mar. 31, 2024	Dec. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	$ (14,235)	$ (13,176)	$ (12,632)	$ (12,888)
Loans held-for-investment, net	472,402	447,812
Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	492,223	465,233
Deferred loan fees, net	(5,586)	(4,245)
Allowance for credit losses	(14,235)	(13,176)
Loans held-for-investment, net	472,402	447,812
SBA \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	246,004	255,056
SBA \| Loans Receivable \| SBA
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	150,000	158,700
Commercial leases
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(1,587)	(1,387)	(556)	(355)
Commercial leases \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	76,823	70,153
Commercial, non-real estate \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	3,550	3,691
Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(598)	(788)	(999)	(956)
Residential real estate \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	55,814	51,574
Strategic Program loans
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	19,900	20,100
Allowance for credit losses	(6,159)	(6,304)	(5,761)	(7,065)
Loans held-for-investment, net	19,916	20,122
Strategic Program loans \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	19,916	20,122
Commercial real estate - owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(3,632)	(2,834)	(3,910)	(3,336)
Commercial real estate - owner occupied \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	65,920	41,046
Commercial real estate - non-owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(126)	(113)	(318)	(282)
Commercial real estate - non-owner occupied \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	1,390	1,379
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(676)	(638)	$ (265)	$ (211)
Consumer \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	$ 22,806	$ 22,212

Loans - Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	$ 492,223	$ 465,233
Nonaccrual loans with no ACL	26,499	29,318
Nonaccrual Loans with ACL	2,871	6,405
Current Loans
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	454,279	425,247
Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	8,574	4,263
30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	8,428	4,188
90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	146	75
Construction and land development
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	47,429	42,331
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]
Total loans held-for-investment, gross	46,183	42,331
Construction and land development \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	1,246	0
Construction and land development \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	1,246	0
Construction and land development \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Residential real estate
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	58,467	61,316
Nonaccrual loans with no ACL	7,165	7,141
Nonaccrual Loans with ACL	0	101
Residential real estate \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	51,302	54,074
Residential real estate \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Residential real estate \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Residential real estate \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Residential real estate multifamily
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	1,688	1,692
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]
Total loans held-for-investment, gross	1,688	1,692
Residential real estate multifamily \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Residential real estate multifamily \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Residential real estate multifamily \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Commercial real estate - owner occupied
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	201,075	190,286
Nonaccrual loans with no ACL	14,592	17,435
Nonaccrual Loans with ACL	2,766	6,102
Commercial real estate - owner occupied \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	180,537	164,679
Commercial real estate - owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	3,180	2,070
Commercial real estate - owner occupied \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	3,180	2,070
Commercial real estate - owner occupied \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Commercial real estate - non-owner occupied
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	13,305	12,849
Nonaccrual loans with no ACL	2,796	2,796
Nonaccrual Loans with ACL	0	0
Commercial real estate - non-owner occupied \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	10,509	10,053
Commercial real estate - non-owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Commercial real estate - non-owner occupied \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Commercial real estate - non-owner occupied \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	50,771	44,329
Nonaccrual loans with no ACL	1,635	1,788
Nonaccrual Loans with ACL	0	0
Commercial and industrial \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	49,136	42,541
Commercial and industrial \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Commercial and industrial \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Commercial and industrial \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Consumer
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	22,749	22,155
Nonaccrual loans with no ACL	0	0
Nonaccrual Loans with ACL	0	0
Consumer \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	20,956	21,856
Consumer \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	1,793	299
Consumer \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	1,647	286
Consumer \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	146	13
Commercial leases
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	76,823	70,153
Nonaccrual loans with no ACL	311	158
Nonaccrual Loans with ACL	105	202
Commercial leases \| Current Loans
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	75,914	69,514
Commercial leases \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	493	279
Commercial leases \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	493	279
Commercial leases \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	0
Retained Strategic Program loans
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	19,916	20,122
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]
Total loans held-for-investment, gross	18,054	18,507
Retained Strategic Program loans \| Total
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	1,862	1,615
Retained Strategic Program loans \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	1,862	1,553
Retained Strategic Program loans \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Total loans held-for-investment, gross	0	62
SBA \| SBA
Financing Receivable, Past Due [Line Items]
Nonaccrual loans with no ACL	$ 14,900	$ 18,900