0001856365-26-000006 | 10-K | XBRL Viewer

Commitments and Contingencies

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Federal Home Loan Bank Secured Line of Credit

As of December 31, 2025 and December 31, 2024, the Bank’s available line of credit with the FHLB to borrow funds was $20.5 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 December 31, 2025 and December 31, 2024, no amounts were outstanding under the line of credit. Loans totaling $34.2 million and $41.6 million were pledged to secure the FHLB line of credit as of December 31, 2025 and December 31, 2024, respectively.

Federal Reserve Bank Lines of Credit

At December 31, 2025 and December 31, 2024, the Bank had a maximum borrowing capacity of $193.8 million and $239.2 million, respectively, with the FRB, including the secured borrowing capacity through the Discount Window and the Borrower-in-Custody (“BIC”) program, to the extent of collateral pledged. Loans totaling $235.8 million and $240.8 million and securities of $37.4 million and $42.6 million were pledged to secure these lines of credit with the FRB as of December 31, 2025 and December 31, 2024, respectively. The Company had no advances outstanding under either program as of December 31, 2025 and 2024.

Other Lines of Credit

The Bank had an available unsecured line of credit with Pacific Coast Bankers’ Bank to borrow up to $10.0 million in overnight funds at December 31, 2025. Through Zions Bank, the Bank had an available unsecured line of credit of $5.0 million at December 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 December 31, 2025 and December 31, 2024. The Bank had no outstanding balances on such unsecured or secured lines of credit as of December 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 and credit card arrangements. Those instruments involve to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. For credit card customers, the Company reserves the right to modify or terminate the terms and conditions of credit card accounts at its discretion. It is important to note that a significant portion of the Company’s commitments and undrawn credit card lines are not fully utilized by customers, so the total amount of these commitments does not necessarily reflect the Company’s future cash obligations. The Company assesses each customer’s credit profile individually to determine creditworthiness. The Company’s commitments to extend credit as of the periods indicated are summarized below. Since commitments associated with commitments to extend credit may expire unused, the amounts shown in the table below do not necessarily reflect the actual future cash funding requirements.

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


	December 31,		December 31,
($ in thousands)	2025		2024
Revolving, open-end lines of credit	$	2,566	$	2,365
Credit card arrangements	$	305,313	$	—
Undisbursed commercial real estate loans	32,414		23,200
Other unused commitments	384		830
Total unfunded loan commitments	$	340,677	$	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 $0.6 million and $0.5 million as of December 31, 2025 and December 31, 2024, respectively.

Class Action Litigation

In July 2025, the Company notified approximately 600,000 individuals of an alleged data breach in which their personal data was exposed by a former employee following termination of their employment. Subsequently, several class action lawsuits were filed, all of which have been consolidated into a single class action lawsuit in Utah federal court. The Company has disputed the claims and is vigorously defending the lawsuit. The Company participated in a pre-discovery mediation with the plaintiffs’ attorneys on March 17, 2026; however, the parties were unable to reach an agreement at that time.

The Company maintains insurance coverage that management believes is sufficient to cover any potential losses or damages arising from the lawsuit. As of December 31, 2025, no accrual for loss has been recorded as management does not believe a loss is probable or, if probable, is not reasonably estimable.

Loans - Schedule of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Total allowance for loan losses
Beginning Balance	$ 13,176	$ 12,888
Provision for (Reversal of) Credit Losses	38,479	11,248
Charge-Offs	(16,413)	(12,669)
Recoveries	1,554	1,709
Ending Balance	36,796	13,176
Unfunded lending commitments
Beginning Balance	464	139
Provision for Credit Losses	94	325
Ending Balance	558	464
Total allowance for credit losses
Beginning Balance	13,640	13,027
Provision for credit losses	38,573	11,573
Charge-Offs	(16,413)	(12,669)
Recoveries	1,554	1,709
Ending Balance	37,354	13,640
Construction and land development
Total allowance for loan losses
Beginning Balance	374	316
Provision for (Reversal of) Credit Losses	596	58
Charge-Offs	0	0
Recoveries	0	0
Ending Balance	970	374
Residential real estate
Total allowance for loan losses
Beginning Balance	788	956
Provision for (Reversal of) Credit Losses	932	64
Charge-Offs	(954)	(297)
Recoveries	11	65
Ending Balance	777	788
Residential real estate multifamily
Total allowance for loan losses
Beginning Balance	38	6
Provision for (Reversal of) Credit Losses	24	32
Charge-Offs	0	0
Recoveries	0	0
Ending Balance	62	38
Owner occupied
Total allowance for loan losses
Beginning Balance	2,834	3,336
Provision for (Reversal of) Credit Losses	2,112	203
Charge-Offs	(1,832)	(1,039)
Recoveries	153	334
Ending Balance	3,267	2,834
Non-owner occupied
Total allowance for loan losses
Beginning Balance	113	282
Provision for (Reversal of) Credit Losses	(9)	52
Charge-Offs	0	(221)
Recoveries	0	0
Ending Balance	104	113
Commercial and industrial
Total allowance for loan losses
Beginning Balance	700	361
Provision for (Reversal of) Credit Losses	991	1,211
Charge-Offs	(933)	(889)
Recoveries	15	17
Ending Balance	773	700
Consumer
Total allowance for loan losses
Beginning Balance	638	211
Provision for (Reversal of) Credit Losses	582	555
Charge-Offs	(559)	(134)
Recoveries	18	6
Ending Balance	679	638
Lease financing receivables
Total allowance for loan losses
Beginning Balance	1,387	355
Provision for (Reversal of) Credit Losses	716	1,233
Charge-Offs	(294)	(293)
Recoveries	29	92
Ending Balance	1,838	1,387
Retained Strategic Program loans:
Total allowance for loan losses
Charge-Offs	(11,841)	(9,796)
Strategic Program loans - with credit enhancement
Total allowance for loan losses
Beginning Balance	111	0
Provision for (Reversal of) Credit Losses	23,924	111
Charge-Offs	(1,639)	0
Recoveries	0	0
Ending Balance	22,396	111
Strategic Program loans - without credit enhancement
Total allowance for loan losses
Beginning Balance	6,193	7,065
Provision for (Reversal of) Credit Losses	8,611	7,729
Charge-Offs	(10,202)	(9,796)
Recoveries	1,328	1,195
Ending Balance	$ 5,930	$ 6,193

Loans - Schedule of Loans by Origination Year (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	$ 310,444	$ 193,392
Year before current fiscal year	93,362	152,294
Two years before current fiscal year	93,700	81,984
Three years before current fiscal year	61,756	16,206
Four years before current fiscal year	10,433
Prior	15,814
Prior		21,357
Revolving Loans	0	0
Total	585,509	465,233
Current fiscal year, Writeoff	(6,614)	(3,801)
Year before current fiscal year, Writeoff	(5,513)	(5,798)
Two years before current fiscal year, Writeoff	(1,450)	(1,775)
Three years before current fiscal year, Writeoff	(1,652)	(943)
Four years before current fiscal year, Writeoff	(515)
Prior, Writeoff	(669)
Prior, Writeoff		(352)
Revolving Loans, Writeoff	0	0
Writeoff	(16,413)	(12,669)
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	27,443	18,008
Year before current fiscal year	12,288	9,080
Two years before current fiscal year	4,201	12,687
Three years before current fiscal year	4,385	2,556
Four years before current fiscal year	753
Prior	0
Prior		0
Revolving Loans	0	0
Total	49,070	42,331
Current fiscal year, Writeoff	0	0
Year before current fiscal year, Writeoff	0	0
Two years before current fiscal year, Writeoff	0	0
Three years before current fiscal year, Writeoff	0	0
Four years before current fiscal year, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	0	0
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	16,885	18,293
Year before current fiscal year	7,295	23,657
Two years before current fiscal year	16,979	13,596
Three years before current fiscal year	11,742	2,485
Four years before current fiscal year	1,613
Prior	1,927
Prior		3,285
Revolving Loans	0	0
Total	56,441	61,316
Current fiscal year, Writeoff	(100)	0
Year before current fiscal year, Writeoff	(162)	0
Two years before current fiscal year, Writeoff	(419)	0
Three years before current fiscal year, Writeoff	0	(252)
Four years before current fiscal year, Writeoff	(236)
Prior, Writeoff	(37)
Prior, Writeoff		(45)
Revolving Loans, Writeoff	0	0
Writeoff	(954)	(297)
Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	306	1,039
Year before current fiscal year	1,563	293
Two years before current fiscal year	906	256
Three years before current fiscal year	241	78
Four years before current fiscal year	134
Prior	25
Prior		26
Revolving Loans	0	0
Total	3,175	1,692
Current fiscal year, Writeoff	0	0
Year before current fiscal year, Writeoff	0	0
Two years before current fiscal year, Writeoff	0	0
Three years before current fiscal year, Writeoff	0	0
Four years before current fiscal year, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	0	0
Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	83,110	51,297
Year before current fiscal year	31,530	75,950
Two years before current fiscal year	45,224	38,808
Three years before current fiscal year	31,676	8,498
Four years before current fiscal year	6,287
Prior	12,729
Prior		15,733
Revolving Loans	0	0
Total	210,556	190,286
Current fiscal year, Writeoff	0	0
Year before current fiscal year, Writeoff	(18)	(364)
Two years before current fiscal year, Writeoff	(113)	(369)
Three years before current fiscal year, Writeoff	(1,111)	(109)
Four years before current fiscal year, Writeoff	(77)
Prior, Writeoff	(513)
Prior, Writeoff		(197)
Revolving Loans, Writeoff	0	0
Writeoff	(1,832)	(1,039)
Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	1,251
Year before current fiscal year	0	4,111
Two years before current fiscal year	3,151	5,891
Three years before current fiscal year	5,416	1,117
Four years before current fiscal year	898
Prior	116
Prior		479
Revolving Loans	0	0
Total	9,581	12,849
Current fiscal year, Writeoff	0	0
Year before current fiscal year, Writeoff	0	0
Two years before current fiscal year, Writeoff	0	(221)
Three years before current fiscal year, Writeoff	0	0
Four years before current fiscal year, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	0	(221)
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	7,230	27,147
Year before current fiscal year	5,345	10,908
Two years before current fiscal year	6,927	4,042
Three years before current fiscal year	5,345	764
Four years before current fiscal year	538
Prior	865
Prior		1,468
Revolving Loans	0	0
Total	26,250	44,329
Current fiscal year, Writeoff	(65)	0
Year before current fiscal year, Writeoff	(258)	(393)
Two years before current fiscal year, Writeoff	(231)	(227)
Three years before current fiscal year, Writeoff	(252)	(178)
Four years before current fiscal year, Writeoff	(24)
Prior, Writeoff	(103)
Prior, Writeoff		(91)
Revolving Loans, Writeoff	0	0
Writeoff	(933)	(889)
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	9,327	15,994
Year before current fiscal year	9,230	4,299
Two years before current fiscal year	2,602	1,257
Three years before current fiscal year	510	319
Four years before current fiscal year	105
Prior	152
Prior		286
Revolving Loans	0	0
Total	21,926	22,155
Current fiscal year, Writeoff	(251)	0
Year before current fiscal year, Writeoff	(175)	(65)
Two years before current fiscal year, Writeoff	(100)	(31)
Three years before current fiscal year, Writeoff	(20)	(19)
Four years before current fiscal year, Writeoff	(11)
Prior, Writeoff	(2)
Prior, Writeoff		(19)
Revolving Loans, Writeoff	0	0
Writeoff	(559)	(134)
Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	39,751	43,279
Year before current fiscal year	23,278	22,456
Two years before current fiscal year	13,604	4,338
Three years before current fiscal year	2,109	0
Four years before current fiscal year	0
Prior	0
Prior		80
Revolving Loans	0	0
Total	78,742	70,153
Current fiscal year, Writeoff	0	0
Year before current fiscal year, Writeoff	(125)	(293)
Two years before current fiscal year, Writeoff	(169)	0
Three years before current fiscal year, Writeoff	0	0
Four years before current fiscal year, Writeoff	0
Prior, Writeoff	0
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	(294)	(293)
Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	126,392	17,084
Year before current fiscal year	2,833	1,540
Two years before current fiscal year	106	1,109
Three years before current fiscal year	332	389
Four years before current fiscal year	105
Prior	0
Prior		0
Revolving Loans	0	0
Total	129,768	20,122
Current fiscal year, Writeoff	(6,198)	(3,801)
Year before current fiscal year, Writeoff	(4,775)	(4,683)
Two years before current fiscal year, Writeoff	(418)	(927)
Three years before current fiscal year, Writeoff	(269)	(385)
Four years before current fiscal year, Writeoff	(167)
Prior, Writeoff	(14)
Prior, Writeoff		0
Revolving Loans, Writeoff	0	0
Writeoff	(11,841)	(9,796)
Pass \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	27,443	18,008
Year before current fiscal year	12,288	9,080
Two years before current fiscal year	1,913	12,687
Three years before current fiscal year	4,385	2,556
Four years before current fiscal year	753
Prior	0
Prior		0
Revolving Loans	0	0
Total	46,782	42,331
Pass \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	4,814	4,025
Year before current fiscal year	1,817	1,172
Two years before current fiscal year	1,073	575
Three years before current fiscal year	890	1,332
Four years before current fiscal year	894
Prior	842
Prior		1,655
Revolving Loans	0	0
Total	10,330	8,759
Pass \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	306	1,039
Year before current fiscal year	1,563	293
Two years before current fiscal year	342	256
Three years before current fiscal year	241	78
Four years before current fiscal year	78
Prior	0
Prior		0
Revolving Loans	0	0
Total	2,530	1,666
Pass \| Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	52,951	26,160
Year before current fiscal year	23,095	3,897
Two years before current fiscal year	5,278	3,468
Three years before current fiscal year	3,506	1,180
Four years before current fiscal year	1,829
Prior	5,807
Prior		9,112
Revolving Loans	0	0
Total	92,466	43,817
Pass \| Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	36
Year before current fiscal year	0	0
Two years before current fiscal year	192	1,254
Three years before current fiscal year	1,213	0
Four years before current fiscal year	0
Prior	7
Prior		343
Revolving Loans	0	0
Total	1,412	1,633
Pass \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	1,978	3,588
Year before current fiscal year	1,449	336
Two years before current fiscal year	613	529
Three years before current fiscal year	1,449	322
Four years before current fiscal year	224
Prior	251
Prior		463
Revolving Loans	0	0
Total	5,964	5,238
Pass \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	9,316	15,951
Year before current fiscal year	9,181	4,294
Two years before current fiscal year	2,589	1,257
Three years before current fiscal year	489	319
Four years before current fiscal year	86
Prior	152
Prior		286
Revolving Loans	0	0
Total	21,813	22,107
Pass \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	39,381	43,279
Year before current fiscal year	23,133	22,456
Two years before current fiscal year	13,501	4,338
Three years before current fiscal year	2,109	0
Four years before current fiscal year	0
Prior	0
Prior		80
Revolving Loans	0	0
Total	78,124	70,153
Pass \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Watch \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Watch \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	8,353	14,268
Year before current fiscal year	5,478	18,766
Two years before current fiscal year	15,870	4,134
Three years before current fiscal year	4,033	1,103
Four years before current fiscal year	681
Prior	950
Prior		1,333
Revolving Loans	0	0
Total	35,365	39,604
Watch \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	564	0
Three years before current fiscal year	0	0
Four years before current fiscal year	56
Prior	25
Prior		26
Revolving Loans	0	0
Total	645	26
Watch \| Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	30,159	25,137
Year before current fiscal year	8,078	51,350
Two years before current fiscal year	31,510	28,462
Three years before current fiscal year	15,643	5,904
Four years before current fiscal year	4,254
Prior	3,666
Prior		3,342
Revolving Loans	0	0
Total	93,310	114,195
Watch \| Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	1,215
Year before current fiscal year	0	4,111
Two years before current fiscal year	2,959	1,841
Three years before current fiscal year	1,440	1,117
Four years before current fiscal year	898
Prior	109
Prior		136
Revolving Loans	0	0
Total	5,406	8,420
Watch \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	5,252	23,559
Year before current fiscal year	3,896	9,134
Two years before current fiscal year	6,314	2,945
Three years before current fiscal year	3,896	442
Four years before current fiscal year	314
Prior	242
Prior		606
Revolving Loans	0	0
Total	19,914	36,686
Watch \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	43
Year before current fiscal year	33	5
Two years before current fiscal year	10	0
Three years before current fiscal year	0	0
Four years before current fiscal year	18
Prior	0
Prior		0
Revolving Loans	0	0
Total	61	48
Watch \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Watch \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	24,869	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	24,869	0
Special Mention \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	3,719
Two years before current fiscal year	0	1,758
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		80
Revolving Loans	0	0
Total	0	5,557
Special Mention \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	4,553
Two years before current fiscal year	0	1,736
Three years before current fiscal year	579	0
Four years before current fiscal year	0
Prior	433
Prior		2,207
Revolving Loans	0	0
Total	1,012	8,496
Special Mention \| Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	217
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	11
Prior		32
Revolving Loans	0	0
Total	11	249
Special Mention \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Special Mention \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Substandard \| Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	2,288	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	2,288	0
Substandard \| Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	3,718	0
Year before current fiscal year	0	0
Two years before current fiscal year	36	7,129
Three years before current fiscal year	6,819	50
Four years before current fiscal year	38
Prior	135
Prior		217
Revolving Loans	0	0
Total	10,746	7,396
Substandard \| Residential real estate multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Substandard \| Commercial real estate-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	357	16,150
Two years before current fiscal year	8,436	5,142
Three years before current fiscal year	11,948	1,414
Four years before current fiscal year	204
Prior	2,823
Prior		1,072
Revolving Loans	0	0
Total	23,768	23,778
Substandard \| Commercial real estate-non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	2,796
Three years before current fiscal year	2,763	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	2,763	2,796
Substandard \| Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	1,438
Two years before current fiscal year	0	351
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	361
Prior		367
Revolving Loans	0	0
Total	361	2,156
Substandard \| Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	11	0
Year before current fiscal year	16	0
Two years before current fiscal year	3	0
Three years before current fiscal year	21	0
Four years before current fiscal year	1
Prior	0
Prior		0
Revolving Loans	0	0
Total	52	0
Substandard \| Lease financing receivables
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	370	0
Year before current fiscal year	145	0
Two years before current fiscal year	103	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	618	0
Substandard \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
Year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	0	0
Not Rated-without credit enhancement \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	18,769	16,193
Year before current fiscal year	2,325	1,540
Two years before current fiscal year	106	1,109
Three years before current fiscal year	332	389
Four years before current fiscal year	105
Prior	0
Prior		0
Revolving Loans	0	0
Total	21,637	19,231
Not Rated-with credit enhancement \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	82,754	891
Year before current fiscal year	508	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0
Prior	0
Prior		0
Revolving Loans	0	0
Total	83,262	$ 891
Current period gross writeoff-without credit enhancement \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year, Writeoff	(4,565)
Year before current fiscal year, Writeoff	(4,769)
Two years before current fiscal year, Writeoff	(418)
Three years before current fiscal year, Writeoff	(269)
Four years before current fiscal year, Writeoff	(167)
Prior, Writeoff	(14)
Revolving Loans, Writeoff	0
Writeoff	(10,202)
Current period gross writeoff-with credit enhancement \| Retained Strategic Program loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year, Writeoff	(1,633)
Year before current fiscal year, Writeoff	(6)
Two years before current fiscal year, Writeoff
Three years before current fiscal year, Writeoff
Four years before current fiscal year, Writeoff
Prior, Writeoff
Revolving Loans, Writeoff
Writeoff	$ (1,639)

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 173,720	$ 155,056
Other comprehensive income (loss) before reclassifications and income tax	174	412
Amounts reclassified from accumulated other comprehensive income	(387)	(164)
Income tax (expense) benefit	52	(61)
Ending balance	193,195	173,720
Accumulated OCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	187	0
Total other comprehensive income (loss), net of tax	(161)	187
Ending balance	26	187
Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(73)	0
Other comprehensive income (loss) before reclassifications and income tax	321	(97)
Amounts reclassified from accumulated other comprehensive income	0	0
Income tax (expense) benefit	(81)	24
Total other comprehensive income (loss), net of tax	240	(73)
Ending balance	167	(73)
Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	260	0
Other comprehensive income (loss) before reclassifications and income tax	(147)	509
Amounts reclassified from accumulated other comprehensive income	(387)	(164)
Income tax (expense) benefit	133	(85)
Total other comprehensive income (loss), net of tax	(401)	260
Ending balance	$ (141)	$ 260

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-28

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
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-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
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-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
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-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481372/852-10-55-10

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479168/946-830-55-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(19))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479170/946-210-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.6-05(4))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479170/946-210-S99-2

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(4)(b))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(6))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-3

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(7))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-3

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 323
-SubTopic 10
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-Paragraph 3
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-URI https://asc.fasb.org/1943274/2147481687/323-10-50-3

Reference 16: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 310
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480418/310-10-S99-2

+ Details

Fair Value of Financial Instruments - Narrative (Details)	Dec. 31, 2025	Dec. 31, 2024
Measurement Input, Discount to Non-Voting Shares
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment, measurement input (in percent)	0.0450	0.0450

Related Party Disclosures (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Related Party Transactions

The following table represents a summary of related party transactions with BFG for the periods indicated:


	Years Ended December 31,
($ in thousands)	2025		2024
SBA 7(a) loans sourced from BFG	$	84,727	$	70,275
Commission fees paid to BFG	$	3,389	$	2,811
Distributions received from BFG(1)	$	1,480	$	630

(1) Recorded in the consolidated statements of income in other miscellaneous income.

Related Party Transactions

12 Months Ended

Dec. 31, 2025

Related Party Transactions

In the ordinary course of business, the Bank may grant loans to certain executive officers and directors and the companies with which they are associated. The Company had no and de minimis loans outstanding to related parties as of December 31, 2025 and December 31, 2024. Total deposits from certain executive officers and directors and the companies with which they are associated were $1.2 million and $2.1 million as of December 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 6 - Investment in Business Funding Group, LLC, the Company has a 20% ownership in the outstanding membership units of BFG, as of December 31, 2025. 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.

The following table represents a summary of related party transactions with BFG for the periods indicated:


	Years Ended December 31,
($ in thousands)	2025		2024
SBA 7(a) loans sourced from BFG	$	84,727	$	70,275
Commission fees paid to BFG	$	3,389	$	2,811
Distributions received from BFG(1)	$	1,480	$	630

(1) Recorded in the consolidated statements of income in other miscellaneous income.

- Definition

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

+ References

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

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

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 20
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

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

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

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

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

+ Details

SBA Servicing Asset, Net - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Transfers and Servicing [Abstract]
SBA loans serviced for others	$ 275.8	$ 218.4
Weighted average prepayment rate	19.10%	21.10%
Weighted average term	3 years 5 months 15 days	3 years 3 months 18 days
Weighted average discount rate	12.30%	12.10%

Income Taxes

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

The components of income tax expense consist of the following:


	December 31,
($ in thousands)	2025		2024
Current tax expense
Federal	$	7,044	$	3,030
State	1,817		1,127
Total current tax expense	$	8,861	$	4,157
Deferred tax expense (benefit)
Federal	$	(2,533)	$	425
State	(659)		(335)
Total deferred tax expense (benefit)	$	(3,192)	$	90
Total income tax expense
Federal	$	4,511	$	3,455
State	1,158		792
Total income tax expense	$	5,669	$	4,247

The components of net deferred income tax assets and liabilities on the balance sheet at December 31, 2025 and 2024, are as follows:


	December 31,
($ in thousands)	2025		2024
Deferred tax assets
Operating lease liabilities	$	1,103	$	1,302
Allowance for credit losses	8,650		2,274
Accrued bonuses	1,733		—
Loan servicing rights	553		316
Accrued vacation	205		—
Nonqualified stock options	159		154
Restricted stock	815		386
Unrealized losses on cash flow hedges	65		—
Unrealized losses on securities AFS	—		24
Other	109		438
Total deferred tax assets	13,392		4,894

Deferred tax liabilities
ROU asset	(742)		(875)
Other reserves	(5,317)		—
Deferred loan fees, net	(1,588)		(2,159)
Net book value of fixed assets	(2,776)		(2,020)
Loan trailing fees	(189)		(335)
Unrealized gains on cash flow hedges	—		(85)
Unrealized gains on securities AFS	(74)		—
Other	(361)		(319)
Total deferred tax liabilities	(11,047)		(5,793)
Deferred tax assets (liabilities), net	$	2,345	$	(899)

The income tax expense recorded differs from the expected income tax expense and the reconciliation of these differences is as follows at December 31, 2025 and 2024:


	December 31,
	2025				2024
($ in thousands)	Amount		%		Amount		%
Tax provision at the U.S. federal statutory rate	$	4,570	21.0	%	$	3,568	21.0	%
State income taxes, net	915		4.2	%	607		3.6	%
Nontaxable or nondeductible items:
Nondeductible compensation	393		1.8	%	27		0.2	%
Other nontaxable or nondeductible items	13		0.1	%	12		—	%
Other adjustments:
Other	(222)		(1.0)	%	33		0.2	%
Income tax expense	$	5,669	26.1	%	$	4,247	25.0	%

Income taxes paid, net of refunds were as follows:


	December 31,
($ in thousands)	2025		2024
U.S. Federal	$	5,430	$	4,247
State and local taxes:
California	528		1,170
Georgia	*		904
Illinois	*		710
New Jersey	543		*
New York	379		*
Other states	183		1,026
Total income taxes paid, net of refunds	$	7,063	$	8,057
*The amount of income taxes paid during the years ended December 31, 2025 and 2024 does not meet the 5% disaggregation threshold.

Realization of deferred tax assets is based on the Company's ability to generate sufficient future taxable income of the appropriate character. Management has reviewed all the available evidence, both positive and negative, and determined that a valuation allowance is not necessary as of December 31, 2025.

At December 31, 2025 and 2024, the Company had no material unrecognized tax benefits or accrued interest and penalties recorded.

The Company and its subsidiaries are subject to income tax within U.S. federal and various state jurisdictions. The Company remains subject to examination for income tax returns in all federal and state jurisdictions for the years ending on or after December 31, 2022.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477617/942-740-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478822/944-740-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 5: http://www.xbrl.org/2003/role/exampleRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
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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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-URI https://asc.fasb.org/740/tableOfContent

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
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-Section 50
-Paragraph 17
-Subparagraph (b)
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Fair Value of Financial Instruments - Schedule of Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Level 3
Nonrecurring assets:
Individually evaluated loans	$ 43,217	$ 35,723
Fair Value
Nonrecurring assets:
Individually evaluated loans	43,217	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	$ 43,217	$ 35,723

Investments - Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Debt Securities, Available-for-Sale [Line Items]
Estimated Fair Value	$ 27,755	$ 29,930
U.S. Treasury securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	27,531	30,027
Unrealized Gain	224	4
Unrealized Loss	0	(101)
Estimated Fair Value	$ 27,755	$ 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

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)(i)
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
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-Section 50
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
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-Section 50
-Paragraph 2
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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-Section 45
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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/exampleRef
-Topic 825
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Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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Reference 11: http://www.xbrl.org/2003/role/exampleRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (b)
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479130/326-30-45-1

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

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

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
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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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-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2025

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Valued on Recurring Basis

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


		December 31, 2025		December 31, 2024
($ in thousands)	Level	Estimated Fair Value		Estimated Fair Value
Financial assets:
U.S. Treasury securities	1	$	27,755	$	29,930
Investment in BFG	3	$	9,000	$	7,700
Derivative asset	2	$	—	$	509
Financial liabilities:
Derivative liability	2	$	148	$	—

Schedule of Investment in BFG Activity

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:


	Years Ended December 31,
($ in thousands)	2025		2024
Beginning balance	$	7,700	$	4,200
Purchase of BFG ownership interest	—		4,125
Change in fair value of BFG	1,300		(625)
Ending balance	$	9,000	$	7,700

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis

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


($ in thousands)			Fair Value Measurements Using
Description of Financial Instrument	Fair Value		Level 1		Level 2		Level 3
December 31, 2025
Nonrecurring assets:
Individually evaluated loans	$	43,217	$	—	$	—	$	43,217
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 December 31, 2025 and 2024:

($ in thousands)

Fair Value

Valuation
Technique

Unobservable
Input

Range
(Weighted Average)

December 31, 2025

Individually evaluated loans

43,217

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 December 31, 2025 and as of December 31, 2024 are shown in the following table:


($ in thousands)	December 31, 2025 Range (Weighted Average)		December 31, 2024 Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate	12.9	%	15.3	%
Expense growth rate	14.8	%	14.9	%
Discount rate	25.0	%	27.5	%
Lack of marketability discount	20.0	%	20.0	%

Guideline Public Company
Multiples of enterprise value	3.5x to 5.3x		3.5x to 5.8x

Schedule of Carrying Amount and Fair Value of Financial Instruments

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


	December 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	$	163,400	$	163,400	$	163,400	$	—	$	—
Investment securities available-for-sale	27,755		27,755		27,755		—		—
Investment securities held-to-maturity	9,927		8,982		—		8,982		—
Investment in FHLB stock	440		440		—		440		—
Loans held-for-investment, net	541,551		576,270		—		—		576,270
Strategic Program loans held-for-sale	146,473		146,473		—		146,473		—
Accrued interest receivable	3,707		3,707		—		3,707		—
SBA servicing asset, net	3,547		3,547		—		3,547		—
Investment in BFG	9,000		9,000		—		—		9,000

Financial liabilities:
Total deposits	$	754,561	$	727,637	$	—	$	727,637	$	—
Accrued interest payable	2,632		2,632		—		2,632		—
Derivative liability	148		148		—		148		—


	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

Premises and Equipment and Leases - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 6,614	$ 7,091
Less accumulated depreciation	(4,074)	(3,543)
Commercial operating lease equipment, net	2,540	3,548
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total premises and equipment	3,699	3,700
Furniture, fixtures, and equipment
Property, Plant and Equipment [Line Items]
Total premises and equipment	2,665	2,786
Construction in progress
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 250	$ 605

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

Stock-Based Compensation and Employee Benefit Plans - Schedule of Restricted Stock Awards Activities (Details) - Restricted shares	12 Months Ended
	Dec. 31, 2025 $ / shares shares
Number of Shares
Unvested as of beginning of year (in shares) \| shares	496,643
Granted (in shares) \| shares	327,363
Vested (in shares) \| shares	(165,585)
Forfeited (in shares) \| shares	(7,200)
Unvested as of end of year (in shares) \| shares	651,221
Weighted Average Grant Date Fair Value
Unvested as of beginning of year (in dollars per share) \| $ / shares	$ 10.09
Granted (in dollars per shares) \| $ / shares	15.01
Vested (in dollars per share) \| $ / shares	10.84
Forfeited (in dollars per share) \| $ / shares	12.67
Unvested as of end of year (in dollars per share) \| $ / shares	$ 12.34

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Interest income
Interest and fees on loans	$ 87,087	$ 68,892
Interest on securities	1,489	897
Other interest income	3,902	4,563
Total interest income	92,478	74,352
Interest expense
Interest on deposits	20,295	15,440
Total interest expense	20,295	15,440
Net interest income	72,183	58,912
Provision for credit losses	38,573	11,573
Net interest income after provision for credit losses	33,610	47,339
Non-interest income
Strategic Program fees	22,024	17,762
Gain on sale of loans, net	6,373	2,036
SBA loan servicing fees, net	(156)	1,137
Change in fair value on investment in BFG	1,300	(625)
Credit enhancement income	23,924	111
Other miscellaneous income	5,018	2,064
Total non-interest income	58,483	22,485
Non-interest expense
Salaries and employee benefits	42,288	35,205
Professional services	3,630	4,736
Occupancy and equipment expenses	1,877	2,179
Credit enhancement servicing expense	1,222	1
Credit enhancement guarantee expense	8,533	8
Other operating expenses	12,783	10,706
Total non-interest expense	70,333	52,835
Income before income taxes	21,760	16,989
Provision for income taxes	5,669	4,247
Net income	$ 16,091	$ 12,742
Earnings per share, basic (in dollars per share)	$ 1.20	$ 0.98
Earnings per share, diluted (in dollars per share)	$ 1.13	$ 0.93
Weighted average shares outstanding, basic (in shares)	12,828,016	12,612,455
Weighted average number of shares outstanding, diluted (in shares)	13,565,336	13,228,869

Loans - Schedule of Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	$ 585,509	$ 465,233
Nonaccrual Loans with no ACL	38,386	29,318
Nonaccrual Loans with ACL	4,831	6,405
Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	536,975	425,247
Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	5,317	4,263
30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	5,188	4,188
90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	129	75
Construction and land development
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	49,070	42,331
Nonaccrual Loans with no ACL	2,288	0
Nonaccrual Loans with ACL	0	0
Construction and land development \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	46,782	42,331
Construction and land development \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Construction and land development \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Construction and land development \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Residential real estate
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	56,441	61,316
Nonaccrual Loans with no ACL	7,519	7,141
Nonaccrual Loans with ACL	3,718	101
Residential real estate \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	45,204	54,074
Residential real estate \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Residential real estate \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Residential real estate \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Residential real estate multifamily
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	3,175	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]
Loans held for investment, gross	3,175	1,692
Residential real estate multifamily \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross		0
Residential real estate multifamily \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Residential real estate multifamily \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Owner occupied
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	210,556	190,286
Nonaccrual Loans with no ACL	23,358	17,435
Nonaccrual Loans with ACL	410	6,102
Owner occupied \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	186,788	164,679
Owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	2,070
Owner occupied \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	2,070
Owner occupied \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Non-owner occupied
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	9,581	12,849
Nonaccrual Loans with no ACL	2,763	2,796
Nonaccrual Loans with ACL	0	0
Non-owner occupied \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	6,818	10,053
Non-owner occupied \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Non-owner occupied \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Non-owner occupied \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	26,250	44,329
Nonaccrual Loans with no ACL	2,250	1,788
Nonaccrual Loans with ACL	0	0
Commercial and industrial \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	24,000	42,541
Commercial and industrial \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Commercial and industrial \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Commercial and industrial \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Consumer
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	21,926	22,155
Nonaccrual Loans with no ACL	0	0
Nonaccrual Loans with ACL	52	0
Consumer \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	21,545	21,856
Consumer \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	329	299
Consumer \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	309	286
Consumer \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	20	13
Commercial leases
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	78,742	70,153
Nonaccrual Loans with no ACL	208	158
Nonaccrual Loans with ACL	651	202
Commercial leases \| Current Loans
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	77,867	69,514
Commercial leases \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	16	279
Commercial leases \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	16	279
Commercial leases \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	0	0
Retained Strategic Program loans:
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	129,768	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]
Loans held for investment, gross	124,796	18,507
Retained Strategic Program loans: \| Total
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	4,972	1,615
Retained Strategic Program loans: \| 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	4,863	1,553
Retained Strategic Program loans: \| 90 Days and Greater
Financing Receivable, Past Due [Line Items]
Loans held for investment, gross	109	62
SBA \| SBA
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans with no ACL	$ 23,900	$ 18,900

Condensed Financial Statements of Parent Company - Schedule of Statement of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Non-interest income
Change in fair value on investment in BFG	$ 1,300	$ (625)
Other miscellaneous income	5,018	2,064
Total non-interest income	58,483	22,485
Non-interest expense:
Salaries and employee benefits	42,288	35,205
Professional services	3,630	4,736
Other operating expenses	12,783	10,706
Total non-interest expense	70,333	52,835
Income before income taxes	21,760	16,989
Income tax benefit	5,669	4,247
Net income	16,091	12,742
Parent Company
Non-interest income
Change in fair value on investment in BFG	1,300	(625)
Equity in undistributed earnings of subsidiary	17,510	17,960
Other miscellaneous income	1,480	630
Total non-interest income	20,290	17,965
Non-interest expense:
Salaries and employee benefits	3,239	4,606
Professional services	651	1,273
Other operating expenses	821	943
Total non-interest expense	4,711	6,822
Income before income taxes	15,579	11,143
Income tax benefit	(512)	(1,599)
Net income	$ 16,091	$ 12,742

Loans

12 Months Ended

Dec. 31, 2025

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans held-for-investment, net – The Company’s loans held-for-investment outstanding by general ledger classification as of December 31, 2025 and December 31, 2024, consisted of the following:


	December 31,		December 31,
	2025		2024
($ in thousands)
SBA(1)	$	205,615	$	255,056
Commercial leases	78,743		70,153
Commercial, non-real estate	4,201		3,691
Residential real estate	59,602		51,574
Strategic Program loans:
Strategic Program loans - with credit enhancement	108,131		891
Strategic Program loans - without credit enhancement	21,637		19,231
Commercial real estate:
Owner occupied	84,016		41,046
Non-owner occupied	1,638		1,379
Consumer	21,926		22,212
Total loans held-for-investment, gross	$	585,509	$	465,233
Deferred loan fees and discounts, net	(7,162)		(4,245)
Allowance for credit losses	(36,796)		(13,176)
Loans held-for-investment, net	$	541,551	$	447,812

(1) Included in the SBA loans held-for-investment above are $102.7 million and $158.7 million of loans guaranteed by the SBA as of December 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 choose to retain all or part of the originated loans or receivables, rather than selling them in their entirety. The portion that remains with the Company is classified as held-for-investment on the balance sheet.

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 December 31, 2025 and December 31, 2024, was $53.4 million and $53.9 million, respectively.

Strategic Program providers that participate in the Company’s credit enhanced balance sheet program guarantee the credit and fraud losses by maintaining a reserve deposit account with the Bank. This reserve deposit account is intended to protect the Bank by ensuring that sufficient funds are available to cover any credit and fraud losses, and the Strategic Program provider must periodically replenish the account as needed to meet the required balance. Collateral reserve balances associated with the Company’s credit enhanced balance sheet program totaled $5.4 million and $0.1 million at December 31, 2025 and December 31, 2024, respectively.

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


	December 31,		December 31,
	2025		2024
($ in thousands)
Retained Strategic Program loans(1)	$	129,768	$	20,122
Strategic Program loans held-for-sale	146,473		91,588
Total Strategic Program loans	$	276,241	$	111,710

(1) Includes $108.1 million and $0.9 million of credit enhanced loans at December 31, 2025 and December 31, 2024, respectively.

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 were identified as of December 31, 2025 and 2024 for the purposes of estimating the ACL:


	December 31,		December 31,
	2025		2024
($ in thousands)
Construction and land development	$	49,070	$	42,331
Residential real estate	56,441		61,316
Residential real estate multifamily	3,175		1,692
Commercial real estate:
Owner occupied	210,556		190,286
Non-owner occupied	9,581		12,849
Commercial and industrial	26,250		44,329
Consumer	21,926		22,155
Lease financing receivables	78,742		70,153
Retained Strategic Program loans:
Strategic Program loans - with credit enhancement	108,131		891
Strategic Program loans - without credit enhancement	21,637		19,231
Total loans held-for-investment, gross	$	585,509	$	465,233

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


	Year Ended December 31, 2025
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	374	$	596	$	—	$	—	$	970
Residential real estate	788		932		(954)		11		777
Residential real estate multifamily	38		24		—		—		62
Commercial real estate:
Owner occupied	2,834		2,112		(1,832)		153		3,267
Non-owner occupied	113		(9)		—		—		104
Commercial and industrial	700		991		(933)		15		773
Consumer	638		582		(559)		18		679
Lease financing receivables	1,387		716		(294)		29		1,838
Retained Strategic Program loans
Strategic Program loans - with credit enhancement	111		23,924		(1,639)		—		22,396
Strategic Program loans - without credit enhancement	6,193		8,611		(10,202)		1,328		5,930
Total allowance for credit losses	$	13,176	$	38,479	$	(16,413)	$	1,554	$	36,796

Unfunded lending commitments	464		94		—		—		558
Total allowance for credit losses	$	13,640	$	38,573	$	(16,413)	$	1,554	$	37,354


	Year Ended December 31, 2024
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	316	$	58	$	—	$	—	$	374
Residential real estate	956		64		(297)		65		788
Residential real estate multifamily	6		32		—		—		38
Commercial real estate:
Owner occupied	3,336		203		(1,039)		334		2,834
Non-owner occupied	282		52		(221)		—		113
Commercial and industrial	361		1,211		(889)		17		700
Consumer	211		555		(134)		6		638
Lease financing receivables	355		1,233		(293)		92		1,387
Retained Strategic Program loans:
Strategic Program loans - with credit enhancement	—		111		—		—		111
Strategic Program loans - without credit enhancement	7,065		7,729		(9,796)		1,195		6,193
Total allowance for credit losses	$	12,888	$	11,248	$	(12,669)	$	1,709	$	13,176

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

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


December 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	$	—	$	—	$	—	$	2,288	$	—	$	46,782	$	49,070
Residential real estate	—		—		—		7,519		3,718		45,204		56,441
Residential real estate multifamily	—		—				—		—		3,175		3,175
Commercial real estate:					—
Owner occupied	—		—		—		23,358		410		186,788		210,556
Non-owner occupied	—		—		—		2,763		—		6,818		9,581
Commercial and industrial	—		—		—		2,250		—		24,000		26,250
Consumer	309		20		329		—		52		21,545		21,926
Commercial leases	16		—		16		208		651		77,867		78,742
Retained Strategic Program loans	4,863		109		4,972		—		—		124,796		129,768
Total	$	5,188	$	129	$	5,317	$	38,386	$	4,831	$	536,975	$	585,509

(1) Included in the nonaccrual loan balances are $23.9 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 years ended December 31, 2025 and 2024, while loans were classified as nonaccrual. The amount of accrued interest for the years ended December 31, 2025 and 2024, that was reversed against interest income on nonaccrual loans was approximately $0.9 million and $1.0 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.

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


			Loans and Leases Amortized Cost Basis by Origination Year
December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
($ in thousands)
Construction and land development
Pass	$	27,443	$	12,288	$	1,913	$	4,385	$	753	$	—	$	—	$	46,782
Watch	—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		2,288		—		—		—		—		2,288
Total	27,443		12,288		4,201		4,385		753		—		—		49,070
Current period gross writeoff	—		—		—		—		—		—		—		—

Residential real estate
Pass	4,814		1,817		1,073		890		894		842		—		10,330
Watch	8,353		5,478		15,870		4,033		681		950		—		35,365
Special Mention	—		—		—		—		—		—		—		—
Substandard	3,718		—		36		6,819		38		135		—		10,746
Total	16,885		7,295		16,979		11,742		1,613		1,927		—		56,441
Current period gross writeoff	(100)		(162)		(419)		—		(236)		(37)		—		(954)

Residential real estate multifamily
Pass	306		1,563		342		241		78		—		—		2,530
Watch	—		—		564		—		56		25		—		645
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Total	306		1,563		906		241		134		25		—		3,175
Current period gross writeoff	—		—		—		—		—		—		—		—

Commercial real estate-owner occupied
Pass	52,951		23,095		5,278		3,506		1,829		5,807		—		92,466
Watch	30,159		8,078		31,510		15,643		4,254		3,666		—		93,310
Special Mention	—		—		—		579		—		433		—		1,012
Substandard	—		357		8,436		11,948		204		2,823		—		23,768
Total	83,110		31,530		45,224		31,676		6,287		12,729		—		210,556
Current period gross writeoff	—		(18)		(113)		(1,111)		(77)		(513)		—		(1,832)



Commercial real estate-non-owner occupied
Pass	—	—	192	1,213	—	7	—	1,412
Watch	—	—	2,959	1,440	898	109	—	5,406
Special Mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	2,763	—	—	—	2,763
Total	—	—	3,151	5,416	898	116	—	9,581
Current period gross writeoff	—	—	—	—	—	—	—	—

Commercial and industrial
Pass	1,978	1,449	613	1,449	224	251	—	5,964
Watch	5,252	3,896	6,314	3,896	314	242	—	19,914
Special Mention	—	—	—	—	—	11	—	11
Substandard	—	—	—	—	—	361	—	361
Total	7,230	5,345	6,927	5,345	538	865	—	26,250
Current period gross writeoff	(65)	(258)	(231)	(252)	(24)	(103)	—	(933)

Consumer
Pass	9,316	9,181	2,589	489	86	152	—	21,813
Watch	—	33	10	—	18	—	—	61
Special Mention	—	—	—	—	—	—	—	—
Substandard	11	16	3	21	1	—	—	52
Total	9,327	9,230	2,602	510	105	152	—	21,926
Current period gross writeoff	(251)	(175)	(100)	(20)	(11)	(2)	—	(559)

Lease financing receivables
Pass	39,381	23,133	13,501	2,109	—	—	—	78,124
Watch	—	—	—	—	—	—	—	—
Special Mention	—	—	—	—	—	—	—	—
Substandard	370	145	103	—	—	—	—	618
Total	39,751	23,278	13,604	2,109	—	—	—	78,742
Current period gross writeoff	—	(125)	(169)	—	—	—	—	(294)

Retained Strategic Program loans
Pass	—	—	—	—	—	—	—	—
Watch-with credit enhancement	24,869	—	—	—	—	—	—	24,869
Special Mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—	—
Not Rated-without credit enhancement	18,769	2,325	106	332	105	—	—	21,637
Not Rated-with credit enhancement	82,754	508	—	—	—	—	—	83,262
Total	126,392	2,833	106	332	105	—	—	129,768
Current period gross writeoff-without credit enhancement	(4,565)	(4,769)	(418)	(269)	(167)	(14)	—	(10,202)


Current period gross writeoff-with credit enhancement	(1,633)		(6)												(1,639)
Total current period gross writeoff	(6,198)		(4,775)		(418)		(269)		(167)		(14)		—		(11,841)

Total portfolio loans receivable, gross	$	310,444	$	93,362	$	93,700	$	61,756	$	10,433	$	15,814	$	—	$	585,509
Total current period gross writeoff	$	(6,614)	$	(5,513)	$	(1,450)	$	(1,652)	$	(515)	$	(669)	$	—	$	(16,413)

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-without credit enhancement	16,193		1,540		1,109		389		—		—		19,231
Not Rated-with credit enhancement	891		—		—		—		—		—		891
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)

Allowance for Credit Losses - Strategic Program Loans with Credit Enhancement

The Company partners with certain Strategic Program service providers who offer credit enhancement on loans, indemnifying or reimbursing the Bank for credit and fraud losses. In line with GAAP, we estimate and record expected loss provisions for these loans without factoring in the credit enhancement. When these provisions are recorded, a corresponding credit enhancement asset is recognized, reflecting anticipated recoveries under the service provider’s guarantee. Reimbursements are made through a deposit reserve account, which the provider replenishes periodically. The credit enhancement asset is reduced as payments or recoveries are received from the provider or its reserve account. The table below shows the activity in the credit enhancement asset for the periods indicated:


	Years Ended December 31,
($ in thousands)	2025		2024
Credit enhancement asset at beginning of period	$	111	$	—
Credit enhancement income	23,924		111
Credit losses settled with partner during period	(1,624)		—

Credit enhancement asset at end of period	$	22,411	$	111

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.

Modified Loans Held-for-Investment (Excluding Retained Strategic Program Loans)

During the year ended December 31, 2025, there were no new material loan modifications to loans held-for-investment, excluding Strategic Program loans which are discussed separately below. During the year ended December 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. Subsequent to December 31, 2025, there was a payment default of $0.2 million on a residential real estate 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 loan was current as of December 31, 2025.

There were no payment defaults during the year ended December 31, 2024 of modified loans that were modified during the previous twelve months. The following table presents the amortized cost basis as of December 31, 2024, the percentage of the loans modified to the total class of loans, and the financial effect of modified loans to troubled borrowers that were experiencing financial difficulty during the year ended December 31, 2024:


($ in thousands)	Principal Deferment (Months)	Amortized Cost at December 31, 2024		% of Total Loan Type
Commercial real estate:
Owner occupied	11 months	$	241	0.13	%
Non-owner occupied	11 months	367		0.83	%
Residential	11 months	153		0.25	%
Total		$	761

Modified Retained Strategic Program Loans

Retained Strategic Program loans of $129.8 million and $20.1 million as of December 31, 2025 and 2024, respectively, consist of personal loans to individuals and loans to businesses. 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 December 31, 2025 and 2024, the balance of outstanding modified loans to individuals in the retained portfolio was approximately $0.2 million and $4.4 million, respectively. The Company does not have any obligation to fund additional amounts to the borrowers. If after modification, some or all of the loan is determined to be uncollectible, the full balance determined to be uncollectible is charged off. The amount charged off is included in the Company’s vintage analysis used to estimate the Company’s allowance for credit losses.

Collateral-Dependent Loans

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

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


($ in thousands)			Collateral Type
As of December 31, 2025	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	2,288	$	—	$	2,288
Residential real estate	45		11,237		—		11,237
Commercial real estate:
Owner occupied	—		23,768		—		23,768
Non-owner occupied	—		2,763		—		2,763
Commercial and industrial	—		—		2,250		2,250
Consumer	52		—		52		52
Commercial leases	325		—		859		859
Total	$	422	$	40,056	$	3,161	$	43,217

The amount of collateral-dependent loans as of December 31, 2025 include $23.9 million of SBA 7(a) loan balances that are guaranteed by the SBA.


($ in thousands)			Collateral Type
As of December 31, 2024	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	—	$	—	$	—
Residential real estate	10		7,242		—		7,242
Commercial real estate:
Owner occupied	9		23,537		—		23,537
Non-owner occupied	—		2,796		—		2,796
Commercial and industrial	—		—		1,788		1,788
Commercial leases	36		—		360		360
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.

Derivatives and Hedging Activities - Schedule of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Derivative [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative	$ (147)	$ 509
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	387	164
Total amounts of income and expense line items presented in consolidated statements of income in which the effects of cash flow hedges are recorded	20,295	15,440
Interest rate swaps
Derivative [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative	(147)	509
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income	387	164
Interest rate swaps \| Cash Flow Hedging
Derivative [Line Items]
Total amounts of income and expense line items presented in consolidated statements of income in which the effects of cash flow hedges are recorded	$ 387	$ 164

Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2025

Equity [Abstract]

Accumulated Other Comprehensive Income

The following tables present changes to accumulated other comprehensive income by component for the periods indicated (in thousands):


	Available-for-Sale Securities		Cash Flow Hedges		Accumulated OCI
Balance at December 31, 2023	$	—	$	—	$	—
Other comprehensive income (loss) before reclassifications and income tax	(97)		509		412
Amounts reclassified from accumulated other comprehensive income	—		(164)		(164)
Income tax (expense) benefit	24		(85)		(61)
Total other comprehensive income (loss), net of tax	(73)		260		187
Balance at December 31, 2024	$	(73)	$	260	$	187


	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	321		(147)		174
Amounts reclassified from accumulated other comprehensive income	—		(387)		(387)
Income tax (expense) benefit	(81)		133		52
Total other comprehensive income (loss), net of tax	240		(401)		(161)
Balance at December 31, 2025	$	167	$	(141)	$	26

Capital Requirements

12 Months Ended

Dec. 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 December 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 December 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 presents the actual and required capital amounts and ratios for the Bank as of the dates indicated:


	Actual				Well-Capitalized Requirement
($ in thousands)	Amount		Ratio		Amount		Ratio
December 31, 2025
Leverage ratio (CBLR election)	$	153,219	16.9	%	$	81,608	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 and other regulatory 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 - Schedule of Strategic Program Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Strategic Program loans held-for-sale	$ 146,473	$ 91,588
Retained Strategic Program loans:
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Loans pledged	129,768	20,122
Strategic Program loans held-for-sale	146,473	91,588
Total Strategic Program loans	$ 276,241	$ 111,710

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 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

Loans - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Loans - Narrative (Details) - USD ($) $ in Thousands	Mar. 19, 2026	Dec. 31, 2025	Dec. 31, 2024
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Interest income on nonaccrual loans		$ 0	$ 0
Accrued interest that was reversed against interest income		900	1,000
Financing receivable, modified, subsequent default		200	0
Subsequent Event
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Financing receivable, modified, subsequent default	$ 200
Retained Strategic Program loans:
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Total loans held-for-investment, gross		129,768	20,122
Outstanding modified loans		200	4,400
Strategic Program loans - without credit enhancement
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Cash held in reserve by strategic programs		53,400	53,900
Strategic Program loans - with credit enhancement
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Cash held in reserve by strategic programs		$ 5,400	$ 100

Derivatives and Hedging Activities - Schedule of Fair Value of Derivative Instruments on the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Derivative [Line Items]
Fair Value	$ 148
Fair Value		$ 509
Designated as Hedging Instrument
Derivative [Line Items]
Fair Value	148
Fair Value		509
Interest rate swaps \| Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	80,000	80,000
Fair Value	$ 148
Fair Value		$ 509

- Definition

Fair value, after effect of master netting arrangement, of financial asset or other contract with one or more underlyings, notional amount or payment provision or both, and contract can be net settled by means outside contract or delivery of asset. Includes derivative subject to master netting arrangement not elected or qualified to offset. Excludes derivative not subject to master netting arrangement or similar agreement.

+ References + Details

- Definition

Fair value, after effect of master netting arrangement, of financial liability or contract with one or more underlyings, notional amount or payment provision or both, and contract can be net settled by means outside contract or delivery of asset. Includes derivative subject to master netting arrangement not elected or qualified to offset. Excludes derivative not subject to master netting arrangement or similar agreement.

+ References + Details

Investments (Tables)

12 Months Ended

Dec. 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 December 31, 2025 and 2024, are summarized as follows:


	December 31, 2025
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
U.S. Treasury securities	$	27,531	$	224	$	—	$	27,755


	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 at December 31, 2025, by contractual maturity:


	December 31, 2025
($ in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,501	$	2,512
Due after one year through five years	25,030		25,243


Total securities AFS	$	27,531	$	27,755

The amortized cost and estimated market value of debt securities HTM at December 31, 2025 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	December 31, 2025
($ in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	—	$	—
Due after one year through five years	1,049		1,026
Due after five years through ten years	1,277		1,177
Due after ten years	7,601		6,779
Total securities HTM	$	9,927	$	8,982

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

The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s debt securities HTM at December 31, 2025 and December 31, 2024, are summarized as follows:


	December 31, 2025
($ in thousands)	Amortized Cost		Allowance for Credit Losses		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	4,961	$	—	$	1	$	(456)	$	4,506
Collateralized mortgage obligations	4,966		—		5		(495)		4,476
Total securities held-to-maturity	$	9,927	$	—	$	6	$	(951)	$	8,982


	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 Continuous Unrealized Losses of Securities in Unrealized Loss Position

The following table presents the estimated fair value and gross unrealized losses of debt securities HTM and AFS, aggregated by category and length of time in a continuous unrealized loss position at December 31, 2025 and 2024:


	December 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	$	—	$	—	$	4,164	$	(456)	$	4,164	$	(456)
Collateralized mortgage obligations	39		—		3,372		(495)		3,411		(495)
Total	$	39	$	—	$	7,536	$	(951)	$	7,575	$	(951)


	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).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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-Section 50
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 16: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
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-Publisher FASB
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Reference 18: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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-Section 50
-Paragraph 5B
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

+ Details

Fair Value of Financial Instruments - Schedule of Investment in BFG Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Equity Method Investments [Roll Forward]
Fair Value, Recurring Basis, Unobservable Input Reconciliation Asset Gain (Loss), Statement Of Income Extensible List, Not Disclosed Flag	Consolidated Statements of Income	Consolidated Statements of Income
Fair Value, Recurring
Equity Method Investments [Roll Forward]
Beginning balance	$ 7,700	$ 4,200
Purchase of BFG ownership interest	0	4,125
Change in fair value of BFG	1,300	(625)
Ending balance	$ 9,000	$ 7,700

Investments - Schedule of Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Amortized Cost
Due in one year or less	$ 2,501
Due after one year through five years	25,030
Total securities AFS	27,531	$ 30,000
Estimated Fair Value
Due in one year or less	2,512
Due after one year through five years	25,243
Total securities AFS	$ 27,755	$ 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

Premises and Equipment and Leases - Schedule of Commercial Operating Equipment Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Commercial operating lease equipment	$ 17,290	$ 12,874
Less accumulated deprecation	(4,715)	(2,698)
Premises and equipment, net	$ 12,575	$ 10,176

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated OCI
Beginning balance (in shares) at Dec. 31, 2023		12,493,565
Beginning balance at Dec. 31, 2023	$ 155,056	$ 12	$ 51,200	$ 103,844	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense (in shares)		393,910
Stock-based compensation expense	2,046		2,046
Stock options exercised, net (in shares)		29,597
Stock options exercised, net	25		25
BFG ownership purchase (in shares)		339,176
BFG ownership purchase	4,125	$ 1	4,124
Common stock repurchased and retired (in shares)		(44,608)
Common stock repurchased and retired	(461)		(469)	8
Other comprehensive income (loss), net of tax	187				187
Net income	12,742			12,742
Ending balance (in shares) at Dec. 31, 2024		13,211,640
Ending balance at Dec. 31, 2024	173,720	$ 13	56,926	116,594	187
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense (in shares)		320,163
Stock-based compensation expense	$ 3,579	$ 1	3,578
Stock options exercised, net (in shares)	174,151	140,823
Stock options exercised, net	$ 209		628	(419)
Restricted stock surrendered for tax withholding upon vesting (in shares)		(16,665)
Restricted stock surrendered for tax withholding upon vesting	(243)		(174)	(69)
Other comprehensive income (loss), net of tax	(161)				(161)
Net income	16,091			16,091
Ending balance (in shares) at Dec. 31, 2025		13,655,961
Ending balance at Dec. 31, 2025	$ 193,195	$ 14	$ 60,958	$ 132,197	$ 26

Premises and Equipment and Leases (Tables)

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

Schedule of Components of Premises and Equipment

Premises and equipment, net consist of the following for the periods indicated:


	December 31,
($ in thousands)	2025		2024
Leasehold improvements	$	3,699	$	3,700
Furniture, fixtures, and equipment	2,665		2,786
Construction in progress	250		605
Total premises and equipment	$	6,614	$	7,091
Less accumulated depreciation	(4,074)		(3,543)
Premises and equipment, net	$	2,540	$	3,548

Schedule of Commercial Operating Equipment Leases

The cost and accumulated depreciation of commercial operating equipment the Company is leasing to third parties is as follows:


	December 31,
($ in thousands)	2025		2024
Commercial operating lease equipment	$	17,290	$	12,874
Less accumulated deprecation	(4,715)		(2,698)
Commercial operating lease equipment, net	$	12,575	$	10,176

Schedule of Lease Expenses

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


	Years Ended December 31,
($ in thousands)	2025		2024
Operating leases
Operating lease cost	$	883	$	840
Variable lease cost	61		85
Operating lease expense	944		925
Short-term lease rent expense	—		37
Total rent expense	$	944	$	962

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


	As of
	December 31, 2025		December 31, 2024

Weighted-average remaining lease term – operating leases (in years)	3.8		4.8
Weighted-average discount rate – operating leases	1.9	%	1.9	%

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
	2025		2024
($ in thousands)
Cash paid for operating leases	$	1,177	$	1,142

Schedule of Future Minimum Annual Undiscounted Rental Payments for Operating Leases

Future minimum annual undiscounted rental payments for the Company’s operating leases are as follows as of December 31, 2025 ($ in thousands):


Year ended December 31, 2026	$	1,212
Year ended December 31, 2027	1,160
Year ended December 31, 2028	1,186
Year ended December 31, 2029	1,017
Year ended December 31, 2030	—
Thereafter	—
Total future minimum lease payments	4,575
Less present value discount	(167)
Total operating lease liabilities	$	4,408

Condensed Financial Statements of Parent Company - Schedule of Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Cash flows from operating activities:
Net income	$ 16,091	$ 12,742
Adjustments to reconcile net income to net cash used in operating activities:
Change in fair value of BFG	(1,300)	625
Stock-based compensation expense	3,579	2,046
Deferred income tax expense	(3,192)	90
Net changes in:
Other assets	(6,009)	(1,659)
Other liabilities	2,102	1,066
Net cash used in operating activities	(28,424)	(14,991)
Cash flows from investing activities:
Net cash used in investing activities	(126,912)	(132,379)
Cash flows from financing activities:
Proceeds from exercise of stock options	481	25
Payment of taxes related to net share settlement of equity awards	(516)	0
Common stock repurchased	0	(461)
Net cash provided by financing activities	209,574	139,557
Cash, cash equivalents and restricted cash, beginning of the period	109,162	116,975
Cash, cash equivalents and restricted cash, end of the period	163,400	109,162
Parent Company
Cash flows from operating activities:
Net income	16,091	12,742
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed net income of subsidiaries	(17,510)	(17,960)
Change in fair value of BFG	(1,300)	625
Stock-based compensation expense	3,579	2,046
Deferred income tax expense	(222)	156
Net changes in:
Income tax payable (receivable)	4,507	(4,186)
Other assets	(7,313)	(91)
Other liabilities	678	(642)
Net cash used in operating activities	(1,491)	(7,310)
Cash flows from investing activities:
Payments to acquire other investments	(170)	0
Net cash used in investing activities	(170)	0
Cash flows from financing activities:
Proceeds from exercise of stock options	481	25
Payment of taxes related to net share settlement of equity awards	(516)	0
Common stock repurchased	0	(461)
Net cash provided by financing activities	(35)	(436)
Net change in cash and cash equivalents	(1,695)	(7,746)
Cash, cash equivalents and restricted cash, beginning of the period	20,764	28,510
Cash, cash equivalents and restricted cash, end of the period	$ 19,069	$ 20,764

Segments - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Segment Reporting Information [Line Items]
Interest income	$ 92,478	$ 74,352
Interest expense	20,295	15,440
Net interest income	72,183	58,912
Non-interest income	59,834
Non-interest expense:
Salaries and benefits	14,010
Other non-interest expense	20,075
Provision for credit losses	38,573	11,573
Income before other operating expense allocations	59,359
Other operating expense allocations	37,599
Income before income taxes	21,760	16,989
Income tax expense	5,669	4,247
Net income	16,091	12,742
Other segment disclosures:
Total assets	977,135	$ 745,976
Operating Segments \| Traditional Banking
Segment Reporting Information [Line Items]
Interest income	33,438
Interest expense	13,992
Net interest income	19,446
Non-interest income	12,448
Non-interest expense:
Salaries and benefits	4,241
Other non-interest expense	5,389
Provision for credit losses	5,917
Income before other operating expense allocations	16,347
Other operating expense allocations	12,450
Income before income taxes	3,897
Income tax expense	1,015
Net income	2,882
Other segment disclosures:
Total assets	439,518
Operating Segments \| BaaS
Segment Reporting Information [Line Items]
Interest income	53,673
Interest expense	2,957
Net interest income	50,716
Non-interest income	44,582
Non-interest expense:
Salaries and benefits	8,951
Other non-interest expense	14,340
Provision for credit losses	32,656
Income before other operating expense allocations	39,351
Other operating expense allocations	25,149
Income before income taxes	14,202
Income tax expense	3,700
Net income	10,502
Other segment disclosures:
Total assets	278,462
Operating Segments \| Treasury/Other
Segment Reporting Information [Line Items]
Interest income	18,611
Interest expense	16,590
Net interest income	2,021
Non-interest income	2,804
Non-interest expense:
Salaries and benefits	818
Other non-interest expense	346
Provision for credit losses	0
Income before other operating expense allocations	3,661
Other operating expense allocations	0
Income before income taxes	3,661
Income tax expense	954
Net income	2,707
Other segment disclosures:
Total assets	259,155
Intersegment Eliminations
Segment Reporting Information [Line Items]
Interest income	(13,244)
Interest expense	$ (13,244)

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Investments - Schedule of Held-to-Maturity Securities (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	$ 9,927,000	$ 12,565,000
Allowance for Credit Losses	0	0
Unrealized Gain	6,000	8,000
Unrealized Loss	(951,000)	(1,516,000)
Estimated Fair Value	8,982,000	11,057,000
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	4,961,000	5,910,000
Allowance for Credit Losses	0	0
Unrealized Gain	1,000	0
Unrealized Loss	(456,000)	(746,000)
Estimated Fair Value	4,506,000	5,164,000
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	4,966,000	6,655,000
Allowance for Credit Losses	0	0
Unrealized Gain	5,000	8,000
Unrealized Loss	(495,000)	(770,000)
Estimated Fair Value	$ 4,476,000	$ 5,893,000

- Definition

Fair value of investment in debt security measured at amortized cost (held-to-maturity).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (c)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-28

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-11

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-11

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://fasb.org/us-gaap/role/ref/otherTransitionRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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-Name Accounting Standards Codification
-Section S99
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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
-Topic 942
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-Paragraph 1
-Subparagraph (SX 210.9-03(6))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

+ 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
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-Publisher FASB
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5

+ Details

Fair Value of Financial Instruments - Schedule of Financial Instruments Valued on Recurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value	$ 27,755	$ 29,930
Investment in BFG, at fair value	$ 9,000	7,700
Derivative Asset, Statement Of Financial Position, Extensible Enumeration Not Disclosed Flag	Consolidated Balance Sheets
Derivative Liability, Statement Of Financial Position, Extensible Enumeration Not Disclosed Flag	Consolidated Balance Sheets
Level 1 \| Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated Fair Value	$ 27,755	29,930
Level 3 \| Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment in BFG, at fair value	9,000	7,700
Level 2 \| Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	509
Derivative liability	$ 148	$ 0

Loans - Schedule of Modified Loans (Details) - Payment Deferral $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost at December 31, 2024	$ 761
Owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Deferment (Months)	11 months
Amortized Cost at December 31, 2024	$ 241
% of Total Loan Type	0.13%
Non-owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Deferment (Months)	11 months
Amortized Cost at December 31, 2024	$ 367
% of Total Loan Type	0.83%
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Deferment (Months)	11 months
Amortized Cost at December 31, 2024	$ 153
% of Total Loan Type	0.25%

Condensed Financial Statements of Parent Company - Schedule of Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Assets
Cash and cash equivalents	$ 163,400	$ 109,162
Investment in BFG, at fair value	9,000	7,700
Deferred taxes, net	2,345	0
Income taxes receivable	3,545	8,868
Other assets	24,956	13,764
Total assets	977,135	745,976
LIABILITIES AND SHAREHOLDERS’ EQUITY
Other liabilities	21,502	15,186
Shareholders’ equity	193,195	173,720	$ 155,056
Total liabilities and shareholders’ equity	977,135	745,976
Parent Company
Assets
Cash and cash equivalents	19,069	20,764
Investment in BFG, at fair value	9,000	7,700
Deferred taxes, net	254	32
Income taxes receivable	507	5,014
Other assets	7,446	133
Total assets	194,287	174,134
LIABILITIES AND SHAREHOLDERS’ EQUITY
Other liabilities	1,092	414
Shareholders’ equity	193,195	173,720
Total liabilities and shareholders’ equity	194,287	174,134
Parent Company \| FinWise Bank
Assets
Investments	157,551	140,203
Parent Company \| FinWise Investments, LLC
Assets
Investments	$ 460	$ 290

Fair Value of Financial Instruments - Schedule of Quantitative Information for Level 3 Fair Value Measurements (Details) - Level 3 $ in Thousands	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 43,217	$ 35,723
Market comparable \| Discount to appraisal value for estimated selling costs
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Range (Weighted Average)	0.1140	0.1140

Derivatives and Hedging Activities - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2025 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Additional amount expected to be reclassified as an increase to interest expense	$ 0.2

Business, Basis of Presentation and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 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 corporation headquartered in Murray, Utah. The Company operates all business activities through its wholly-owned subsidiaries: FinWise Bank and FinWise Investment, LLC. FinWise Bank was originally incorporated as Utah Community Bank in the state of Utah on May 7, 1999. On March 4, 2016, Utah Community Bank amended its articles of incorporation to change its name to FinWise Bank. FinWise Bancorp, formerly known as All West Bancorp, was incorporated in Utah on October 22, 2002. Following its incorporation, All West Bancorp acquired 100% of Utah Community Bank. On March 15, 2021, All West Bancorp amended and restated its articles of incorporation to change its name to FinWise Bancorp. FinWise Investment, LLC was established to hold and manage private investments made by the Company and the Bank. References herein to “FinWise Bancorp,” “Bancorp” or the “holding company,” refer to FinWise Bancorp on a standalone basis. The word “Company” refers to FinWise Bancorp, FinWise Investment, LLC, and FinWise Bank collectively and on a consolidated basis. References to the “Bank” refer to FinWise Bank on a standalone basis. The Bank provides a full range of banking services to individual and commercial customers. The Bank’s primary source of revenue is from loans including consumer, Small Business Administration (“SBA”), commercial, commercial real estate, and residential real estate. The Bank also has established Strategic Programs with various third-party loan origination platforms that use technology to streamline the origination of unsecured consumer and secured or unsecured business loans to borrowers within certain approved credit profiles. The Bank earns monthly program fees based on the volume of loans originated in these Strategic Programs, as well as interest during the time the Bank holds the loans. Principles of consolidation – The consolidated financial statements include the accounts of FinWise Bancorp and its wholly-owned subsidiaries, FinWise Bank and FinWise Investment, LLC. All significant inter-company balances and transactions have been eliminated in consolidation. Emerging Growth Company status – The Company is an emerging growth company as defined in the Jumpstart our Business Startups Act of 2012 (the “JOBS Act”). The JOBS Act permits the Company to extend the transition period for complying with new or revised accounting standards affecting public companies. The Company has elected to take advantage of this extended transition period, which means that the financial statements included in this annual report, as well as any financial statements that we file in the future, may not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as the Company remains an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period under the JOBS Act. Significant concentrations of credit risk – The Company's lending and leasing activities are conducted with customers located throughout the United States. The Company’s loan portfolio may, from time to time, have concentrations in significant balances in certain loan categories, such as SBA loans or Strategic Program loans. The relative significance and composition of the portfolio may change over time based on business strategy and market conditions. The collectibility of loans and leases is particularly susceptible to changes in market conditions, such as shifts in interest rates and economic downturns. Ongoing analysis of the Company's loan portfolio is performed to evaluate whether there is any significant exposure to an individual borrower or group(s) of borrowers as a result of any concentrations of credit risk. Such credit risks (whether on- or off-balance sheet) may occur when groups of borrowers or counterparties have similar economic characteristics and are similarly affected by changes in economic or other conditions. Credit risk also includes the loss that would be recognized subsequent to the reporting date if counterparties failed to perform as contracted. As of December 31, 2025 and 2024, the Company analyzed its exposure to credit risks and concluded that no significant exposure exists from such concentrations of credit risk. Use of estimates – In preparing the consolidated financial statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”), management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the date of the consolidated balance sheets and certain revenues and expenses for the period. Actual results could differ, either positively or negatively, from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses (“ACL”). While management uses currently available information to recognize credit losses on loans, future additions to the allowance may be necessary based on economic conditions and individual credit deterioration. Reclassifications – Reclassifications have been made to prior year amounts to conform to the current year presentation. The effect of these reclassifications were not material to the previously reported consolidated financial statements. Cash and cash equivalents – For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, other interest-bearing deposits, and federal funds sold. The Company maintains its cash in deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits; however, on March 15, 2020, the Federal Reserve announced that reserve requirement ratios would be reduced to zero percent effective March 26, 2020, due to economic conditions, which eliminated the reserve requirement for all depository institutions. The reserve requirement is still at zero percent as of December 31, 2025. Restricted cash – The Company has restricted cash balances required by the Company’s credit card merchant for payment processing and card management services as well as a restricted cash held as collateral against the Company’s derivatives. Investments Investment securities available-for-sale – U.S. Treasury securities that the Company intends to hold for an indefinite period of time, but which may be sold in response to changes in liquidity needs, interest rates, or other similar factors, are classified as available-for-sale (“AFS”). Such securities are recorded in the Company’s consolidated balance sheets at their respective fair values and increases or decreases in those values, other than credit losses, are recorded as unrealized gains or losses, respectively, and are reported as other comprehensive income (loss) in the Company’s consolidated balance sheets, rather than included in or deducted from the Company’s earnings. The Company performs a quarterly analysis of its investment securities AFS to assess and record any expected credit losses through an allowance for credit losses, limited to the amount that fair value was less than the amortized cost basis. Interest on securities classified as AFS are recorded in interest on securities in the Company’s Consolidated Statements of Income. Investment securities held-to-maturity – Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity (“HTM”) and recorded at amortized cost. Each quarter management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security's fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component is recognized through the provision for credit losses on the Company’s Consolidated Statements of Income. (See Note 2 - Investments.) Equity method investments – Ownership interests in entities for which the Company has significant influence that are not consolidated are accounted for as equity method investments. SEC Staff Announcement: Accounting for Limited Partnership Investments (codified in Accounting Standards Codification (“ASC”) 323-30-S99-1) guidance requires the use of the equity method unless the investor’s interest “is so minor that the limited partner may have virtually no influence over partnership operating and financial policies.” The SEC staff’s position is that investments in limited partnerships and limited liability companies of greater than 3% to 5% are considered more than minor and, therefore, should be accounted for using the equity method or fair value option and are not required to be consolidated. The Company concluded that, consistent with its accounting policy, the Company’s level of ownership in Business Funding Group, LLC (“BFG”) was indicative of significant influence and, as a result, the investment would be accounted for using the equity method. However, the Company elected the fair value option for its investment due to cost-benefit considerations. Pursuant to electing the fair value option, the Company measures its investment in BFG at fair value each reporting period and changes in fair value are recorded in the Consolidated Statements of Income within change in fair value on investment in BFG’ See Note 6 - Investment in Business Funding Group, LLC, for a discussion about the Company’s investment in BFG. Investment in Federal Home Loan Bank (“FHLB”) stock – FHLB stock investments are required based on the level of the Bank’s assets, capital and/or capital/surplus. FHLB stock is carried at cost and periodically evaluated for impairment. There is no readily determinable fair value for this stock as it has no quoted market value, it is a required investment and it is expected to be redeemed at par value. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs are jointly and severally liable for repayment of each other’s debt. Cash dividends are reported as a component of other miscellaneous income in the Consolidated Statements of Income. Loans held-for-sale – Loans held-for-sale are carried at the lower of aggregate cost or fair value. Gains and losses are recorded in non-interest income based on the difference between sales proceeds and carrying value. While the Company sells the vast majority of the loans funded in its Strategic Programs shortly after origination, the Company may choose to retain a portion of the funded loans and/or receivables. Loans held-for-investment – Loans held-for-investment are reported at their outstanding principal adjusted for any charge-offs, the allowance for credit losses, and deferred fees and costs. Loan origination fees, net of certain direct origination costs, if any, are deferred and recognized on an adjustment of the related loan yield using an effective-yield method over the contractual life of the loan. Interest income on loans is recognized on an accrual basis commencing in the month of origination using the interest method. Delinquency fees are recognized in income when chargeable and when collectability is reasonably assured. The Company requires most commercial loans and leases to be substantially collateralized by real estate, equipment, vehicles, accounts receivable, inventories or other tangible or intangible assets. Real estate collateral is generally in the form of first and second mortgages on various types of property. The Company also originates unsecured loans to consumers and businesses. The Company may change its intent from holding loans for investment and reclassify them as held-for-sale. Allowance for credit losses – The allowance for credit losses is calculated under the current expected credit loss (“CECL”) model for financial instruments measured at amortized cost and other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable economic forecasts of future events and circumstances. The allowance for credit losses is reported as a reduction of the amortized cost basis of loans held-for-investment, while the reserve for unfunded loan commitments is included within other liabilities on the Consolidated Balance Sheets. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates. Accrued interest receivable is excluded from the ACL calculation. The amortized cost basis of loans does not include accrued interest receivable. The provision for credit losses on the Consolidated Statements of Income is a combination of the provision for credit losses and the provision for unfunded loan commitments. ACL in accordance with CECL methodology With respect to the Bank's core portfolio which consists of SBA 7(a), local lending, retail point of sale, and equipment finance and leasing, the Bank pools similar loans that are collectively evaluated and determines an appropriate level of general allowance by portfolio segment using a non-discounted cash flow model taking into account probability of default, loss in the event of default, and prepayment speed estimates based on industry specific collected data. The model captures credit and fraud losses assumed to be credit related losses over the historical charge-off and prepayment cycle and applies those losses at a loan level over the remaining maturity of the loan. The model then calculates a historical loss rate using the average losses over the reporting period, which is then applied to each segment utilizing a standard reversion rate. With respect to the Bank's active retained Strategic Program loan portfolio, the Bank is using a methodology that compares the actual loan performance of a vintage to the worst performing loans within that vintage, known as the high-water mark. The Bank records the expected credit losses based on the high-water mark loss rate. With respect to the Bank's inactive retained Strategic Program loan portfolio, performance data at the summary level provided by the Strategic Programs is banded by credit profile and original loan term and compared to actual loan performance on a quarterly basis. The expected loss rate is supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, including but not limited to national unemployment rate forecasts. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. Also included in the ACL are qualitative factors based on the risks present for each portfolio segment. These qualitative factors include the following that are derived from the Interagency Policy Statement on Allowance for Credit Losses: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the loan portfolio; changes in the nature and volume of the loan portfolio and in the terms of loans; changes in the experience, ability, and depth of lending management and staff; changes in the volume and severity of past due loans, nonaccrual loans, and classified or graded loans; changes in the quality of the Bank's loan review system; changes in the value of underlying collateral for loans that are not collateral-dependent; changes in the level of concentration of credit; changes in the effect of competition, legal, and regulatory requirements on the level of estimated credit losses; and, if applicable, changes in the composition and volume of the loan portfolio due to mergers, acquisitions, and other significant transactions not considered elsewhere. The Bank also considers as an additional qualitative factor any lingering "ripple" effects of the Covid-19 pandemic, including lasting changes to consumer behavior, lending, and society at large. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. When management identifies loans that do not share common risk characteristics (i.e., are not similar to other loans within a pool) they are evaluated on an individual basis. These loans are not included in the collective evaluation. For loans identified as having a likelihood of foreclosure or that the borrower is experiencing financial difficulty, a collateral- dependent approach is used. These are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient method to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The CECL methodology requires a significant amount of management judgment in determining the appropriate allowance for credit losses. Several of the steps in the methodology involve judgment and are subjective in nature including, among other things: segmenting the loan portfolio; determining the amount of loss history to consider; selecting predictive econometric regression models that use appropriate macroeconomic variables; determining the methodology to forecast prepayments; selecting the most appropriate economic forecast scenario; determining the length of the reasonable and supportable forecast and reversion periods; estimating expected utilization rates on unfunded loan commitments; and assessing relevant and appropriate qualitative factors. In addition, the CECL methodology is dependent on economic forecasts, which are inherently imprecise and will change from period to period. Although the allowance for credit losses is considered appropriate, there can be no assurance that it will be sufficient to absorb future losses. In determining an appropriate amount for the allowance, the Bank segments and aggregates the loan portfolio based on common characteristics. The following segments have been identified: Commercial Real Estate. These loans are generally secured by owner-occupied nonfarm, nonresidential properties, or by other nonfarm, nonresidential properties. Owner-occupied commercial real estate loans are typically repaid first by the cash flows generated by the underlying business. Factors that may influence a business' cash flows include, but are not limited to, demand for its products or services, quality and depth of management, degree of competition, regulatory changes, and general economic conditions. Non-owner occupied commercial real estate loans are generally considered to have a higher degree of credit risk as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions. Commercial and Industrial. These loans are generally secured by business assets such as furniture, fixtures, equipment, accounts receivable, inventory, business vehicles, and other business personal property. Commercial and industrial loans are typically repaid first by the cash flows generated by the borrower's business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and resulting positive cash flows. Factors that may influence a business' profitability include, but are not limited to, demand for its products or services, quality and depth of management, degree of competition, regulatory changes, and general economic conditions. Commercial Leases. Equipment financing and leasing typically involve the use of equipment as collateral for the loan. If the borrower defaults on the loan, the Bank may need to repossess and sell the equipment to recover the outstanding debt. However, the value of the equipment may depreciate over time, or disappear, making it difficult for the Bank to recover the full amount of the lease. In equipment leasing, the residual value of the equipment is an important consideration. The residual value is the estimated value of the equipment at the end of the lease term. If the actual value of the equipment is lower than the residual value, the lessor may not be able to recover the full amount of the lease payments. Construction and Land Development. Risks common to construction loans are cost overruns, changes in market demand for property, supply chain interruption affecting construction materials, inadequate long-term financing arrangements and declines in real estate values. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Risks common to residential lot loans are those similar to other types of real estate construction loans, as many customers finance the purchase of improved lots in anticipation of constructing a 1 to 4 family residence. Accordingly, common risks are changes in market demand for property, supply chain interruption affecting construction materials, inadequate long-term financing arrangements and declines in real estate values. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values and higher interest rates. Consumer. These are loans to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. Residential Real Estate. These loans are generally secured by 1 to 4 family residential properties. The primary risk characteristics associated with residential mortgage loans typically involve: major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as for major medical issues or catastrophic events; and divorce or death. In addition, residential mortgage loans that have adjustable rates could expose the borrower to higher debt service requirements in a rising interest rate environment. Further, real estate values could drop significantly and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank. Residential Real Estate Multifamily. Risks common to multifamily loans are poor management, high vacancy rates and regulatory changes. The value of multi-family properties can be impacted by changes in the local real estate market. If property values decline, the Bank may not be able to recover the full amount of the loan if the property needs to be foreclosed. Strategic Program Loans Held-for-Investment. Unsecured consumer loans and secured or unsecured business loans issued by the Company through these programs generally follow and are limited to specific predetermined underwriting criteria. Strategic Program loans cover a wide range of borrower credit profiles, loan terms and interest rates. Strategic Program loans generally have higher interest rates and shorter terms similar to consumer loans and tend to have higher credit risk due to the type of collateral securing the loan or in most cases the absence of collateral. See Note 3 - Loans for more information about the Company’s Strategic Program loan portfolio. Certain agreements with our Strategic Program Service Providers provide for a credit enhancement, which protects the Bank by indemnifying or reimbursing incurred credit and fraud losses. The Company estimates and records a provision for expected losses for these Strategic Program loans. When the provision for the credit losses is recorded, a credit enhancement asset is also recorded on the balance sheet through non-interest income (credit enhancement income) equal to the provision for credit losses estimated for the credit enhanced loans. The credit enhancement asset is reduced when payments for the credit losses charged to the ACL are taken from the Strategic Program Service Provider’s cash reserve account created to absorb the credit losses incurred. The cash reserve account is replenished monthly from cash flows due to the Program Service provider related to the credit enhanced loans. Nonaccrual loans – The Company's policy is to place loans on a nonaccrual status when: 1) payment is in default for 90 days or more unless the loan is well secured and in the process of collection; or 2) full repayment of principal and interest is not foreseen. When a loan is placed on nonaccrual status, all accrued and uncollected interest on that loan is reversed. Past-due interest received on nonaccrual loans is not recognized in interest income but is applied as a reduction of the outstanding principal of the loan. A loan is relieved of its nonaccrual status when all principal and interest payments are brought current, the loan is well secured, and an analysis of the borrower's financial condition provides reasonable assurance that the borrower can repay the loan as scheduled. Premises and equipment, net – Premises and equipment are stated at cost less accumulated depreciation. Depreciation expense, which is included in occupancy and equipment expenses, is computed using the straight-line method over the estimated useful lives of the related assets. Expenditures for new premises and equipment and major improvements are capitalized. Normal costs of maintenance and repairs are charged to expense as incurred. Gains and losses on dispositions are included in non-interest expense. Lessor accounting - assets subject to operating leases, net – The Company leases commercial operating equipment to a variety of customers. At lease inception the Company determines if an arrangement is a lease. The equipment underlying the operating lease is reported at cost and depreciated based on their useful lives on a straight-line basis to the residual value. These residual values are reviewed annually to ensure the recorded amount does not exceed the fair market value at the lease termination. Revenue consists of the contractual lease payments and is recognized on a straight-line basis over a specified lease term. The Company also has net investments in commercial operating equipment leased to customers, which are classified as sales-type leases or direct financing leases. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit on sales-type leases is recognized at lease commencement and recorded in other miscellaneous income. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term, yielding a constant periodic rate of return on the net investment in the lease. Sales from sales-type and operating leases are presented net of sales tax and other related taxes. Interest income is recognized over the lease term using the effective interest method. Lessee accounting – The Company accounts for leases according to ASU 2016-02, Leases (Topic 842), and applies a right -of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. The Company elected to apply the package of practical expedients permitting entities to not reassess: 1) whether any expired or existing contracts are or contain leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. Additionally, as provided by ASU 2016-02, the Company elected to not apply the recognition requirements of ASC 842 to short-term leases, defined as leases with a term of twelve months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term. Income taxes – Deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial statements. Transfer of financial assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: 1) the assets have been isolated from the Company, 2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and 3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans held on the Company’s Consolidated Balance Sheets are classified as either held-for-investment or held-for-sale. Held-for-sale loan sales typically occur two to four days after the origination of the loans. When the Company determines that control over the transfer of financial assets has been surrendered, the transaction will be accounted for as a completed sale in which the underlying loans are derecognized and a resulting gain or loss, if any, is recorded. SBA servicing asset, net – Servicing assets are recognized as separate assets when servicing rights are acquired through sale of financial assets. For sales of SBA loans, or portions of SBA loans, with servicing retained, a portion of the cost of originating the loan is allocated to the servicing asset based on relative fair value. Fair value is based on a valuation model that calculates the present value of estimated future servicing income. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into non-interest income in proportion to, and over the period of, estimated future net servicing income of the underlying loans. The SBA servicing asset is carried at the lower of cost or market value. The SBA servicing asset is evaluated annually for impairment based on the fair value of the asset as compared to amortized cost. Capitalized servicing rights are stated separately on the consolidated balance sheet and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing fee income, which is reported in the consolidated statements of income in SBA loan servicing fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of servicing assets and changes in the valuation allowance are netted against loan servicing income. Derivative instruments – In the normal course of business, the Company is exposed to interest rate fluctuations. Consistent with the Company’s strategy for financial risk management, the Company has established a program that utilizes interest rate swaps to offset the risks associated with the effects of this exposure. The Company utilizes cash flow hedge accounting treatment for interest rate swaps. Cash flow hedges are accounted for by recording the changes in the fair value of the derivative instrument in other comprehensive income (loss) and are recognized in the consolidated statements of income when the hedged item affects earnings. Derivative instruments are recognized on the consolidated balance sheet as other assets or other liabilities, at their respective fair values. See Note 13 - Derivatives for additional information. Stock repurchase program – On March 7, 2024, the Company announced that its Board of Directors (the “Board”) had authorized, effective March 6, 2024, a common stock repurchase program to purchase up to 641,832 shares of the Company’s common stock in the aggregate. The repurchase program authorizes the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or privately negotiated transactions. Repurchases could also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The Share Repurchase Committee, designated by the Board of Directors, will determine the actual timing, number and value of any shares repurchased in its discretion depending on a variety of factors, including but not limited to, the market price and trading volume of the Company’s common stock, general market and economic conditions, the ongoing assessment of the Company’s capital needs, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares and may be limited or terminated at any time at the Company’s discretion without notice. Since the repurchase program’s inception, the Company has repurchased and subsequently retired a total of 44,608 shares for $0.5 million at an average price of $10.30 per share. The repurchase program will expire on March 31, 2026 unless extended by the Company’s Board of Directors. Revenue from contracts with customers – The Company applies the provisions of ASC 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of this standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The majority of our revenue-generating transactions are not subject to ASC 606, including interest generated from loans. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. Services that the Company reports as part of non-interest income are subject to ASC 606 and include fees from its deposit customers for transaction-based activities, account maintenance charges and overdraft services. Transaction-based fees, such as ACH and wire transfer fees, overdraft, return and stop payment charges, are recognized at the time such transactions are executed and the services have been fulfilled by the Company. The fees are typically withdrawn from the customer’s deposit account balance. The Company also receives fees from third-parties in its Strategic Programs for setting up systems and procedures to efficiently originate loans in a convenient, compliant and safe manner. Because the third-party simultaneously receives and benefits from the services, revenue is recognized evenly over the term of the loan program. Program fees are received monthly in connection with continuing program services provided for the Company’s Strategic Programs are recorded at the time services are provided. Stock-based compensation – The Company accounts for all stock-based awards to employees and non-employees, including grants of stock options and restricted stock awards, based on their respective grant date fair values. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model. The assumptions used in calculating the fair value of stock option grants represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment and include consideration of historical experience. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected volatility is based on the Company's data for the expected option term. The expected dividend yield was zero as the Company is not expected to pay dividends in the foreseeable future. Restricted stock awards are valued based on the fair value of the Company’s common stock on the date of grant. The Company expenses stock-based compensation related to stock options and restricted stock awards over the requisite service period (generally the vesting period of the equity grant) using the graded-vesting method. The Company accounts for forfeitures of stock–based awards as they occur. Stock-based compensation expense is included in salaries and employee benefits on the income statement. Earnings per share (“EPS”) – Basic EPS is computed by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding during the period adjusted for the effect of potentially dilutive securities. Potentially dilutive securities include incremental common shares issuable upon the exercise of stock options and unvested restricted shares, that are not considered participating securities, using the treasury stock method. The Company uses the two-class method to determine EPS when participating securities are present. Unvested restricted stock awards that contain nonforfeitable rights to dividends qualify as participating securities, unless the rights were waived by the employee. For these securities, net income is allocated between common shareholders and participating securities, and EPS is calculated for both basic and diluted shares. Comprehensive income (loss) – Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. However, certain changes in assets and liabilities, such as unrealized gains and losses on securities AFS and unrealized gains and losses on interest rate swaps designated as cash flow hedges, are reported as a separate component of equity in the accompanying consolidated balance sheets, net of income taxes, and such items, along with net income, are components of comprehensive income (loss). The Company’s policy is to release income tax effects from accumulated other comprehensive income at such time as the earnings or loss of the related activity are recognized in earnings Off-balance sheet instruments – In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the consolidated balance sheet. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral. The Company records a reserve on its unfunded loan commitments which is included within other liabilities on the Consolidated Balance Sheets. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates. Segment reporting – As further described in Note 17 - Segments, during the third quarter of 2025, the Company implemented segment reporting following the completion of a technology initiative to capture segment-specific financial data and develop reports used by the Company’s chief operating decision maker (“CODM”) to review the Company’s financial performance and determine how to allocate resources. The Company established three reportable segments: traditional banking, banking as a service (“BaaS”) and treasury and administration. For periods prior to July 1, 2025, the Company operated under one operating segment, consistent with the information that was presented to the Company’s CODM. 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 on a retrospective basis effective January 1, 2025 and included the incremental disclosures in Note 12 - Income Taxes. Recent accounting pronouncements In November 2025, the FASB issued ASU 2025-08, “Financial instruments – Credit Losses (Topic 326): Purchased Loans,” which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under ASU 2025-08, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (purchased seasoned loans) by recognizing them at their purchase price plus an allowance for expected credit losses (gross-up approach). Purchased seasoned loans are defined as either: (1) non-PCD loans that are obtained in a business combination, or (2) non-PCD loans that (a) are obtained in an asset acquisition or upon consolidation of a variable interest entity that is not a business and (b) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination. ASU 2025-08 also introduces an accounting policy election related to the subsequent measurement of expected credit losses for entities that use a method other than a discounted cash flow analysis to estimate credit losses on purchased seasoned loans. If this accounting policy is elected, entities can use the amortized cost basis of the asset to subsequently measure their credit loss allowance. ASU 2025-08 is effective for interim and annual reporting periods beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06 “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” ASU 2025-06 eliminates the consideration of project development stages in determining whether a cost is eligible for capitalization. Instead, cost capitalization will be based on a “probable to complete” threshold. This guidance will be effective for the Company on January 1, 2028. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. 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.

Loans (Tables)

12 Months Ended

Dec. 31, 2025

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Loans Summarized to Major Risk Category

The Company’s loans held-for-investment outstanding by general ledger classification as of December 31, 2025 and December 31, 2024, consisted of the following:


	December 31,		December 31,
	2025		2024
($ in thousands)
SBA(1)	$	205,615	$	255,056
Commercial leases	78,743		70,153
Commercial, non-real estate	4,201		3,691
Residential real estate	59,602		51,574
Strategic Program loans:
Strategic Program loans - with credit enhancement	108,131		891
Strategic Program loans - without credit enhancement	21,637		19,231
Commercial real estate:
Owner occupied	84,016		41,046
Non-owner occupied	1,638		1,379
Consumer	21,926		22,212
Total loans held-for-investment, gross	$	585,509	$	465,233
Deferred loan fees and discounts, net	(7,162)		(4,245)
Allowance for credit losses	(36,796)		(13,176)
Loans held-for-investment, net	$	541,551	$	447,812

(1) Included in the SBA loans held-for-investment above are $102.7 million and $158.7 million of loans guaranteed by the SBA as of December 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


	December 31,		December 31,
	2025		2024
($ in thousands)
Construction and land development	$	49,070	$	42,331
Residential real estate	56,441		61,316
Residential real estate multifamily	3,175		1,692
Commercial real estate:
Owner occupied	210,556		190,286
Non-owner occupied	9,581		12,849
Commercial and industrial	26,250		44,329
Consumer	21,926		22,155
Lease financing receivables	78,742		70,153
Retained Strategic Program loans:
Strategic Program loans - with credit enhancement	108,131		891
Strategic Program loans - without credit enhancement	21,637		19,231
Total loans held-for-investment, gross	$	585,509	$	465,233

The table below shows the activity in the credit enhancement asset for the periods indicated:


	Years Ended December 31,
($ in thousands)	2025		2024
Credit enhancement asset at beginning of period	$	111	$	—
Credit enhancement income	23,924		111
Credit losses settled with partner during period	(1,624)		—

Credit enhancement asset at end of period	$	22,411	$	111

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


($ in thousands)			Collateral Type
As of December 31, 2025	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	2,288	$	—	$	2,288
Residential real estate	45		11,237		—		11,237
Commercial real estate:
Owner occupied	—		23,768		—		23,768
Non-owner occupied	—		2,763		—		2,763
Commercial and industrial	—		—		2,250		2,250
Consumer	52		—		52		52
Commercial leases	325		—		859		859
Total	$	422	$	40,056	$	3,161	$	43,217

The amount of collateral-dependent loans as of December 31, 2025 include $23.9 million of SBA 7(a) loan balances that are guaranteed by the SBA.


($ in thousands)			Collateral Type
As of December 31, 2024	Allowance for Credit Losses		Real Estate		Personal Property		Total
Construction and land development	$	—	$	—	$	—	$	—
Residential real estate	10		7,242		—		7,242
Commercial real estate:
Owner occupied	9		23,537		—		23,537
Non-owner occupied	—		2,796		—		2,796
Commercial and industrial	—		—		1,788		1,788
Commercial leases	36		—		360		360
Total	$	55	$	33,575	$	2,148	$	35,723

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

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


	December 31,		December 31,
	2025		2024
($ in thousands)
Retained Strategic Program loans(1)	$	129,768	$	20,122
Strategic Program loans held-for-sale	146,473		91,588
Total Strategic Program loans	$	276,241	$	111,710

(1) Includes $108.1 million and $0.9 million of credit enhanced loans at December 31, 2025 and December 31, 2024, respectively.

Schedule of Changes in Allowance for Credit Losses

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


	Year Ended December 31, 2025
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	374	$	596	$	—	$	—	$	970
Residential real estate	788		932		(954)		11		777
Residential real estate multifamily	38		24		—		—		62
Commercial real estate:
Owner occupied	2,834		2,112		(1,832)		153		3,267
Non-owner occupied	113		(9)		—		—		104
Commercial and industrial	700		991		(933)		15		773
Consumer	638		582		(559)		18		679
Lease financing receivables	1,387		716		(294)		29		1,838
Retained Strategic Program loans
Strategic Program loans - with credit enhancement	111		23,924		(1,639)		—		22,396
Strategic Program loans - without credit enhancement	6,193		8,611		(10,202)		1,328		5,930
Total allowance for credit losses	$	13,176	$	38,479	$	(16,413)	$	1,554	$	36,796

Unfunded lending commitments	464		94		—		—		558
Total allowance for credit losses	$	13,640	$	38,573	$	(16,413)	$	1,554	$	37,354


	Year Ended December 31, 2024
($ in thousands)	Beginning Balance		Provision for (Reversal of) Credit Losses		Charge-Offs		Recoveries		Ending Balance
Construction and land development	$	316	$	58	$	—	$	—	$	374
Residential real estate	956		64		(297)		65		788
Residential real estate multifamily	6		32		—		—		38
Commercial real estate:
Owner occupied	3,336		203		(1,039)		334		2,834
Non-owner occupied	282		52		(221)		—		113
Commercial and industrial	361		1,211		(889)		17		700
Consumer	211		555		(134)		6		638
Lease financing receivables	355		1,233		(293)		92		1,387
Retained Strategic Program loans:
Strategic Program loans - with credit enhancement	—		111		—		—		111
Strategic Program loans - without credit enhancement	7,065		7,729		(9,796)		1,195		6,193
Total allowance for credit losses	$	12,888	$	11,248	$	(12,669)	$	1,709	$	13,176

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

Schedule of Nonaccrual and Past Due Loans

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


December 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	$	—	$	—	$	—	$	2,288	$	—	$	46,782	$	49,070
Residential real estate	—		—		—		7,519		3,718		45,204		56,441
Residential real estate multifamily	—		—				—		—		3,175		3,175
Commercial real estate:					—
Owner occupied	—		—		—		23,358		410		186,788		210,556
Non-owner occupied	—		—		—		2,763		—		6,818		9,581
Commercial and industrial	—		—		—		2,250		—		24,000		26,250
Consumer	309		20		329		—		52		21,545		21,926
Commercial leases	16		—		16		208		651		77,867		78,742
Retained Strategic Program loans	4,863		109		4,972		—		—		124,796		129,768
Total	$	5,188	$	129	$	5,317	$	38,386	$	4,831	$	536,975	$	585,509

(1) Included in the nonaccrual loan balances are $23.9 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


			Loans and Leases Amortized Cost Basis by Origination Year
December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
($ in thousands)
Construction and land development
Pass	$	27,443	$	12,288	$	1,913	$	4,385	$	753	$	—	$	—	$	46,782
Watch	—		—		—		—		—		—		—		—
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		2,288		—		—		—		—		2,288
Total	27,443		12,288		4,201		4,385		753		—		—		49,070
Current period gross writeoff	—		—		—		—		—		—		—		—

Residential real estate
Pass	4,814		1,817		1,073		890		894		842		—		10,330
Watch	8,353		5,478		15,870		4,033		681		950		—		35,365
Special Mention	—		—		—		—		—		—		—		—
Substandard	3,718		—		36		6,819		38		135		—		10,746
Total	16,885		7,295		16,979		11,742		1,613		1,927		—		56,441
Current period gross writeoff	(100)		(162)		(419)		—		(236)		(37)		—		(954)

Residential real estate multifamily
Pass	306		1,563		342		241		78		—		—		2,530
Watch	—		—		564		—		56		25		—		645
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Total	306		1,563		906		241		134		25		—		3,175
Current period gross writeoff	—		—		—		—		—		—		—		—

Commercial real estate-owner occupied
Pass	52,951		23,095		5,278		3,506		1,829		5,807		—		92,466
Watch	30,159		8,078		31,510		15,643		4,254		3,666		—		93,310
Special Mention	—		—		—		579		—		433		—		1,012
Substandard	—		357		8,436		11,948		204		2,823		—		23,768
Total	83,110		31,530		45,224		31,676		6,287		12,729		—		210,556
Current period gross writeoff	—		(18)		(113)		(1,111)		(77)		(513)		—		(1,832)



Commercial real estate-non-owner occupied
Pass	—	—	192	1,213	—	7	—	1,412
Watch	—	—	2,959	1,440	898	109	—	5,406
Special Mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	2,763	—	—	—	2,763
Total	—	—	3,151	5,416	898	116	—	9,581
Current period gross writeoff	—	—	—	—	—	—	—	—

Commercial and industrial
Pass	1,978	1,449	613	1,449	224	251	—	5,964
Watch	5,252	3,896	6,314	3,896	314	242	—	19,914
Special Mention	—	—	—	—	—	11	—	11
Substandard	—	—	—	—	—	361	—	361
Total	7,230	5,345	6,927	5,345	538	865	—	26,250
Current period gross writeoff	(65)	(258)	(231)	(252)	(24)	(103)	—	(933)

Consumer
Pass	9,316	9,181	2,589	489	86	152	—	21,813
Watch	—	33	10	—	18	—	—	61
Special Mention	—	—	—	—	—	—	—	—
Substandard	11	16	3	21	1	—	—	52
Total	9,327	9,230	2,602	510	105	152	—	21,926
Current period gross writeoff	(251)	(175)	(100)	(20)	(11)	(2)	—	(559)

Lease financing receivables
Pass	39,381	23,133	13,501	2,109	—	—	—	78,124
Watch	—	—	—	—	—	—	—	—
Special Mention	—	—	—	—	—	—	—	—
Substandard	370	145	103	—	—	—	—	618
Total	39,751	23,278	13,604	2,109	—	—	—	78,742
Current period gross writeoff	—	(125)	(169)	—	—	—	—	(294)

Retained Strategic Program loans
Pass	—	—	—	—	—	—	—	—
Watch-with credit enhancement	24,869	—	—	—	—	—	—	24,869
Special Mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—	—
Not Rated-without credit enhancement	18,769	2,325	106	332	105	—	—	21,637
Not Rated-with credit enhancement	82,754	508	—	—	—	—	—	83,262
Total	126,392	2,833	106	332	105	—	—	129,768
Current period gross writeoff-without credit enhancement	(4,565)	(4,769)	(418)	(269)	(167)	(14)	—	(10,202)


Current period gross writeoff-with credit enhancement	(1,633)		(6)												(1,639)
Total current period gross writeoff	(6,198)		(4,775)		(418)		(269)		(167)		(14)		—		(11,841)

Total portfolio loans receivable, gross	$	310,444	$	93,362	$	93,700	$	61,756	$	10,433	$	15,814	$	—	$	585,509
Total current period gross writeoff	$	(6,614)	$	(5,513)	$	(1,450)	$	(1,652)	$	(515)	$	(669)	$	—	$	(16,413)


			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-without credit enhancement	16,193		1,540		1,109		389		—		—		19,231
Not Rated-with credit enhancement	891		—		—		—		—		—		891
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

The following table presents the amortized cost basis as of December 31, 2024, the percentage of the loans modified to the total class of loans, and the financial effect of modified loans to troubled borrowers that were experiencing financial difficulty during the year ended December 31, 2024:


($ in thousands)	Principal Deferment (Months)	Amortized Cost at December 31, 2024		% of Total Loan Type
Commercial real estate:
Owner occupied	11 months	$	241	0.13	%
Non-owner occupied	11 months	367		0.83	%
Residential	11 months	153		0.25	%
Total		$	761

Investments - Narrative (Details)	12 Months Ended
Investments - Narrative (Details)	Dec. 31, 2025 USD ($) security	Dec. 31, 2024 USD ($) security
Schedule of Held-to-Maturity Securities [Line Items]
Estimated Fair Value	$ 27,755,000	$ 29,930,000
Accrued interest receivable debt securities available for sale	$ 500,000	500,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest receivable
Held-to-maturity securities pledged as collateral	$ 9,927,000	12,565,000
Debt securities, available-for-sale, allowance for credit loss	$ 0	$ 0
Number of securities in unrealized loss position \| security	17	22
Sales or transfers of investment securities	$ 0	$ 0
Realized gains (losses) on sale or transfer of investment securities	0	0
Asset Pledged as Collateral
Schedule of Held-to-Maturity Securities [Line Items]
Estimated Fair Value	27,800,000
Held-to-maturity securities pledged as collateral	9,900,000
Collateralized mortgage obligations
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-maturity securities pledged as collateral	$ 4,966,000	$ 6,655,000
Number of securities in unrealized loss position \| security	8	8
Mortgage-backed securities
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-maturity securities pledged as collateral	$ 4,961,000	$ 5,910,000
Number of securities in unrealized loss position \| security	9	10
U.S. Treasury securities
Schedule of Held-to-Maturity Securities [Line Items]
Estimated Fair Value	$ 27,755,000	$ 29,930,000
Number of securities in unrealized loss position \| security		4

Earnings per Share - Schedule of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Numerator:
Net income	$ 16,091	$ 12,742
Amount allocated to participating common shareholders	(705)	(390)
Net income allocate to common shareholders, basic	15,386	12,352
Net income allocate to common shareholders, diluted	$ 15,386	$ 12,352
Denominator:
Weighted average shares outstanding, basic (in shares)	12,828,016	12,612,455
Weighted average effect of dilutive securities:
Stock options (in shares)	572,431	491,036
Warrants (in shares)	164,889	125,378
Weighted average shares outstanding, diluted (in shares)	13,565,336	13,228,869
Earnings per share, basic (in dollars per share)	$ 1.20	$ 0.98
Earnings per share, diluted (in dollars per share)	$ 1.13	$ 0.93
Stock options
Weighted average effect of dilutive securities:
Anti-dilutive stock options excluded from the calculation of diluted earnings per share	0	77,723

Loans - Schedule of Loans Summarized to Major Risk Category (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	$ (36,796)	$ (13,176)	$ (12,888)
Loans held-for-investment, net	541,551	447,812
Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	585,509	465,233
Deferred loan fees and discounts, net	(7,162)	(4,245)
Allowance for credit losses	(36,796)	(13,176)
Loans held-for-investment, net	541,551	447,812
SBA \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	205,615	255,056
SBA \| Loans Receivable \| SBA
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	102,700	158,700
Commercial leases
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(1,838)	(1,387)	(355)
Commercial leases \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	78,743	70,153
Commercial, non-real estate \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	4,201	3,691
Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(777)	(788)	(956)
Residential real estate \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	59,602	51,574
Strategic Program loans - with credit enhancement
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(22,396)	(111)	0
Loans held-for-investment, net	108,100	900
Strategic Program loans - with credit enhancement \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	108,131	891
Strategic Program loans - without credit enhancement
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(5,930)	(6,193)	(7,065)
Strategic Program loans - without credit enhancement \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	21,637	19,231
Retained Strategic Program loans:
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	129,768	20,122
Owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(3,267)	(2,834)	(3,336)
Owner occupied \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	84,016	41,046
Non-owner occupied
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(104)	(113)	(282)
Non-owner occupied \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	1,638	1,379
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Allowance for credit losses	(679)	(638)	$ (211)
Consumer \| Loans Receivable
Loans and Leases Receivable Disclosure [Line Items]
Total loans held-for-investment, gross	$ 21,926	$ 22,212

Related Party Transactions - Schedule of Related Party Transactions (Details) - Related Party - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
SBA 7(a) loans sourced from BFG
Schedule of Equity Method Investments [Line Items]
Related party transaction, amounts of transaction	$ 84,727	$ 70,275
Commission fees paid to BFG
Schedule of Equity Method Investments [Line Items]
Related party transaction, amounts of transaction	3,389	2,811
Distributions received from BFG
Schedule of Equity Method Investments [Line Items]
Related party transaction, amounts of transaction	$ 1,480	$ 630

- Definition

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

+ References + Details

Stock-Based Compensation and Employee Benefit Plans

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation and Employee Benefit Plans

Stock Option Plans

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

The 2019 Stock Plan (“2019 Plan”) was adopted on June 20, 2019 following approval by the Company’s Board of Directors and shareholders. The 2019 Plan will terminate as to future awards 10 years from the later of the effective date or the earlier of the most recent Board or shareholder approval of an increase in the number of shares reserved for issuance under the 2019 Plan. On June 27, 2024, the shareholders of the Company approved an amendment to the 2019 Plan increasing the number of shares of common stock reserved for issuance under the plan by an additional 500,000 shares to 1,780,000. At December 31, 2025, 122,617 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 shareholder approval of an increase in the number of shares reserved for issuance under the 2016 Plan. At December 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 stock options vary by employee or director and can have a term no more than 10 years, with the options generally having vesting periods ranging from 1 to 5 years. Restricted stock vests over periods ranging from approximately 1 to 5 years. Upon the exercise of stock options, the Company issues new authorized shares.

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

Stock Options

The following summarizes stock option activity for the year ended December 31, 2025:


	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	(174,151)	$	5.00		$	2,418,219
Options forfeited	(4,540)	$	8.61
Outstanding at December 31, 2025	726,491	$	5.90	4.9	$	8,744,727
Options vested and exercisable at December 31, 2025	675,962	$	5.76	4.8	$	8,236,036

Restricted Stock

The Company from time-to-time grants shares of restricted stock to key employees or directors. These awards typically hold service requirements over various vesting periods. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards,

ratably over the vesting period of the stock grants. All restricted stock agreements are conditioned upon continued employment. Termination of employment prior to a vesting date would terminate any interest in unvested shares.

The following summarizes unvested restricted stock activity for the year ended December 31, 2025:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2024	496,643	$	10.09
Granted	327,363	$	15.01
Vested	(165,585)	$	10.84
Forfeited	(7,200)	$	12.67
Unvested as of December 31, 2025	651,221	$	12.34

The total fair value of restricted stock that vested during the years ended December 31, 2025 and 2024 was $2.5 million and $1.2 million, respectively.

Stock-based Compensation Expense

The following table presents stock-based compensation expense recognized and income tax benefit for stock-based compensation related to restricted shares:


	Years Ended December 31,
($ in thousands)	2025		2024
Stock options	$	102	$	237
Restricted shares	3,477		1,809
Total	$	3,579	$	2,046

Income tax benefit related to restricted shares	$	860	$	439

As of December 31, 2025, the Company had unrecognized stock-based compensation expense related to stock options and restricted stock of approximately $18.9 thousand and $4.5 million, respectively, which is expected to be recognized over the remaining weighted average vesting period of 0.5 years and 1.8 years, respectively.

Defined Contribution Plan

The Company has established an employee directed 401(k) plan (“Plan”) for employees meeting certain eligibility requirements. The Plan requires the Company to provide a guaranteed safe harbor matching contribution equal to 100% of the first 4% of compensation that employees contribute to their account and this amount is immediately vested. The Company may also, at its discretion, make matching and profit-sharing contributions based on each eligible employee’s compensation for the Plan year. Prior to January 1, 2026, employees were eligible for safe harbor contributions with no service requirement and eligible for employer matching and profit-sharing contributions after three months of service. After January 1, 2026, employees are eligible for safe harbor contributions after three months of service and eligible for employer matching and profit-sharing contributions after one year of service. Matching and profit-sharing contributions vest according to the Plan’s vesting schedule. The Company contributed $1.3 million and $1.1 million to the Plan for the years ended December 31, 2025 and 2024, respectively.

Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Deposits [Abstract]
Year ended December 31, 2026	$ 364,063
Year ended December 31, 2027	71,775
Year ended December 31, 2028	5,332
Year ended December 31, 2029	26,471
Year ended December 31, 2030	4
Thereafter	10,623
Total	$ 478,268	$ 320,771

Commitments and Contingencies - Narrative (Details) individual in Thousands	Dec. 31, 2025 USD ($)	Jul. 31, 2025 individual	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Line of Credit Facility [Line Items]
Allowance for credit losses on unfunded commitments	$ 558,000		$ 464,000	$ 139,000
Number of individuals affected by alleged data breach \| individual		600
Loss contingency accrual	0
Asset Pledged as Collateral \| Federal Reserve Bank Credit Lines
Line of Credit Facility [Line Items]
Securities pledged	37,400,000		42,600,000
Asset Pledged as Collateral \| Federal Reserve Bank Credit Lines \| Loans
Line of Credit Facility [Line Items]
Loans pledged	235,800,000		240,800,000
Line of Credit
Line of Credit Facility [Line Items]
Long-term line of credit	0		0
Federal Home Loan Bank Secured Line of Credit \| Line of Credit
Line of Credit Facility [Line Items]
Available line of credit with the FHLB	20,500,000		25,000,000.0
Amounts outstanding under the FHLB line of credit	0		0
Loans pledged to secure FHLB line of credit	34,200,000		41,600,000
Federal Reserve Bank, Discount Window \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	193,800,000		239,200,000
Pacific Coast Bankers \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	10,000,000.0
Zion Bank \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	5,000,000.0		5,000,000.0
Bank of the West \| Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,100,000		$ 1,100,000

Premises and Equipment and Leases - Schedule of Minimum Future Rental Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Year ended December 31, 2026	$ 1,212
Year ended December 31, 2027	1,160
Year ended December 31, 2028	1,186
Year ended December 31, 2029	1,017
Year ended December 31, 2030	0
Thereafter	0
Total future minimum lease payments	4,575
Less present value discount	(167)
Total operating lease liabilities	$ 4,408	$ 5,302

Deposits

12 Months Ended

Dec. 31, 2025

Deposits [Abstract]

Deposits

Major classes of deposits are as follows:


	December 31,
	2025		2024
($ in thousands)
Demand	$	243,259	$	198,185
Savings	11,017		9,287
Money markets	22,017		16,709
Time certificates of deposit	478,268		320,771
Total deposits	$	754,561	$	544,952

Time certificates of deposit with balances of $250,000 or more at December 31, 2025 and 2024 totaled approximately $13.6 million and $10.9 million, respectively. The Bank’s deposits are insurable to applicable limits by the FDIC.

At December 31, 2025, the scheduled maturities of time deposits are as follows ($ in thousands):


Year ended December 31, 2026	$	364,063
Year ended December 31, 2027	71,775
Year ended December 31, 2028	5,332
Year ended December 31, 2029	26,471
Year ended December 31, 2030	4
Thereafter	10,623
Total	$	478,268

Business, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended		22 Months Ended
	Jun. 30, 2025 segment	Dec. 31, 2025 segment	Dec. 31, 2024 USD ($)	Dec. 31, 2025 USD ($) $ / shares shares	Mar. 06, 2024 shares
Variable Interest Entity [Line Items]
Common stock repurchase program, shares authorized to be purchases (in shares) \| shares					641,832
Common stock repurchased and retired (in shares) \| shares				44,608
Common stock repurchased, value \| $			$ 461	$ 500
Shares acquired, average cost per share (in dollars per share) \| $ / shares				$ 10.30
Number of reporting segments \| segment		3
Number of operating segments \| segment	1	3
FinWise Bank
Variable Interest Entity [Line Items]
Percentage of business acquired		100.00%		100.00%

- Definition

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

+ References + Details

Stock-Based Compensation and Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following summarizes stock option activity for the year ended December 31, 2025:


	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	(174,151)	$	5.00		$	2,418,219
Options forfeited	(4,540)	$	8.61
Outstanding at December 31, 2025	726,491	$	5.90	4.9	$	8,744,727
Options vested and exercisable at December 31, 2025	675,962	$	5.76	4.8	$	8,236,036

Schedule of Restricted Stock Awards Activities

The following summarizes unvested restricted stock activity for the year ended December 31, 2025:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2024	496,643	$	10.09
Granted	327,363	$	15.01
Vested	(165,585)	$	10.84
Forfeited	(7,200)	$	12.67
Unvested as of December 31, 2025	651,221	$	12.34

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

The following table presents stock-based compensation expense recognized and income tax benefit for stock-based compensation related to restricted shares:


	Years Ended December 31,
($ in thousands)	2025		2024
Stock options	$	102	$	237
Restricted shares	3,477		1,809
Total	$	3,579	$	2,046

Income tax benefit related to restricted shares	$	860	$	439

Fair Value of Financial Instruments - Schedule of Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Financial assets:
Investment securities available-for-sale	$ 27,755	$ 29,930
Investment securities held-to-maturity	8,982	11,057
Accrued interest receivable	3,707	3,566
SBA servicing asset, net	3,547	3,273	$ 4,231
Investment in BFG, at fair value	9,000	7,700
Financial liabilities:
Accrued interest payable	2,632	1,494
Carrying Amount
Financial assets:
Cash and cash equivalents	163,400	109,162
Investment securities available-for-sale	27,755	29,930
Investment securities held-to-maturity	9,927	12,565
Investment in FHLB stock	440	349
Loans held-for-investment, net	541,551	447,812
Strategic Program loans held-for-sale	146,473	91,588
Accrued interest receivable	3,707	3,566
SBA servicing asset, net	3,547	3,273
Investment in BFG, at fair value	9,000	7,700
Derivative asset		509
Financial liabilities:
Total deposits	754,561	544,952
Accrued interest payable	2,632	1,494
Derivative liability	148
PPPLF		64
Estimated Fair Value
Financial assets:
Cash and cash equivalents	163,400	109,162
Investment securities available-for-sale	27,755	29,930
Investment securities held-to-maturity	8,982	11,057
Investment in FHLB stock	440	349
Loans held-for-investment, net	576,270	478,919
Strategic Program loans held-for-sale	146,473	91,588
Accrued interest receivable	3,707	3,566
SBA servicing asset, net	3,547	3,273
Investment in BFG, at fair value	9,000	7,700
Derivative asset		509
Financial liabilities:
Total deposits	727,637	528,253
Accrued interest payable	2,632	1,494
Derivative liability	148
PPPLF		64
Estimated Fair Value \| Level 1
Financial assets:
Cash and cash equivalents	163,400	109,162
Investment securities available-for-sale	27,755	29,930
Investment securities held-to-maturity	0	0
Investment in FHLB stock	0	0
Loans held-for-investment, net	0	0
Strategic Program loans held-for-sale	0	0
Accrued interest receivable	0	0
SBA servicing asset, net	0	0
Investment in BFG, at fair value	0	0
Derivative asset		0
Financial liabilities:
Total deposits	0	0
Accrued interest payable	0	0
Derivative liability	0
PPPLF		0
Estimated Fair Value \| Level 2
Financial assets:
Cash and cash equivalents	0	0
Investment securities available-for-sale	0	0
Investment securities held-to-maturity	8,982	11,057
Investment in FHLB stock	440	349
Loans held-for-investment, net	0	0
Strategic Program loans held-for-sale	146,473	91,588
Accrued interest receivable	3,707	3,566
SBA servicing asset, net	3,547	3,273
Investment in BFG, at fair value	0	0
Derivative asset		509
Financial liabilities:
Total deposits	727,637	528,253
Accrued interest payable	2,632	1,494
Derivative liability	148
PPPLF		64
Estimated Fair Value \| Level 3
Financial assets:
Cash and cash equivalents	0	0
Investment securities available-for-sale	0	0
Investment securities held-to-maturity	0	0
Investment in FHLB stock	0	0
Loans held-for-investment, net	576,270	478,919
Strategic Program loans held-for-sale	0	0
Accrued interest receivable	0	0
SBA servicing asset, net	0	0
Investment in BFG, at fair value	9,000	7,700
Derivative asset		0
Financial liabilities:
Total deposits	0	0
Accrued interest payable	0	0
Derivative liability	$ 0
PPPLF		$ 0

Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The tables below present the notional amount, location, and fair value of the Company’s derivative financial instruments on the Consolidated Balance Sheets as of the periods indicated:

Derivative Liabilities

As of December 31, 2025

($ in thousands)

Notional Amount

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate swaps

80,000

Other liabilities

148

Total

148

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 tables below present the pre-tax effect of cash flow hedge accounting on accumulated other comprehensive income for the periods indicated:


	Year Ended December 31, 2025
($ in thousands)	Amount of Gain (Loss) Recognized in OCI on Derivative		Location of Gain (Loss) Recognized from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
Derivatives in Cash Flow Hedging Relationships:
Interest rate swaps	$	(147)	Interest on deposits	$	387
Total	$	(147)		$	387


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

Schedule of Derivative Instruments on the Consolidated Statements of Income

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the periods indicated:


	Location and Amount of Gain Recognized in Income on Cash Flow Hedging Relationships		Location and Amount of Gain Recognized in Income on Cash Flow Hedging Relationships
($ in thousands)	2025		2024
Location of gain recognized in income	Interest on deposits		Interest on deposits
Total amounts of income and expense line items presented in consolidated statements of income in which the effects of cash flow hedges are recorded	$	387	$	164

The effects of cash flow hedging:
Interest rate swaps:
Amount of gain reclassified from accumulated OCI into income	$	387	$	164

Schedule of Offsetting Assets

The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of the periods indicated. The net amounts of derivative assets and liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets.


As of December 31, 2025							Gross Amounts Not Offset in the Statement of Financial Position
($ in thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Pledged		Net Amount
Liabilities:
Interest rate swaps	$	148	$	—	$	148		$	—	$	—	$	148


As of December 31, 2024							Gross Amounts Not Offset in the Statement of Financial Position
($ in thousands)	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

Earnings per Share (Tables)

12 Months Ended

Dec. 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 EPS for the years ended December 31, 2025 and 2024 ($ in thousands, except per share amounts):


	Years Ended December 31,
	2025		2024
Numerator:
Net income	$	16,091	$	12,742
Amounts allocated to participating common shareholders(1)	(705)		(390)
Net income allocated to common shareholders	$	15,386	$	12,352
Denominator:
Weighted average shares outstanding, basic	12,828,016		12,612,455
Weighted average effect of dilutive securities:
Stock options	572,431		491,036
Warrants	164,889		125,378
Weighted average shares outstanding, diluted	13,565,336		13,228,869
Earnings per share, basic	$	1.20	$	0.98
Earnings per share, diluted	$	1.13	$	0.93

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

(1)Represents earnings attributable to holders of unvested restricted stock issued to the Company’s directors and employees. On December 31, 2025, executive management elected to waive the dividend rights on their unvested restricted stock awards. As a result, beginning on December 31, 2025, the unvested shares related to executive management will no longer be treated as participating securities and are excluded from the two-class method calculation of EPS. This change was effective beginning with the quarter ending December 31, 2025 and had a de minimus impact on basic and diluted earnings per share. The change does not affect previously reported periods.

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
Cybersecurity Risk Management and Strategy Disclosure	Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	The Company is exposed to cybersecurity threats and incidents that can range from uncoordinated individual attempts to gain unauthorized access to information systems to sophisticated and targeted measures known as advanced persistent threats, directed at the Company or its third party service providers. Our customers, strategic relationships and regulators expect us to maintain a suitable cybersecurity posture to identify, protect, detect, respond and recover from incidents that may impact the confidentiality, integrity and availability of sensitive information we possess. We evaluate the risks of data theft (including theft of sensitive, proprietary and other data categories, in addition to personal data), harm to customer or third party relationships and litigation or regulatory investigation or actions that could materially adversely affect our financial condition, results of operations and reputation. Cybersecurity risk is assessed and managed primarily through our technology, risk management, and audit teams and is overseen by our Board of Directors. The Bank’s Information Security Officer (“ISO”), who reports to our Chief Compliance & Risk Officer, is directly responsible for assessing and managing cybersecurity risks pursuant to the Company’s Information Security Program, which is approved by our Board of Directors periodically. The current ISO has more than 5 years of cybersecurity experience and holds multiple industry certifications.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	The Company is exposed to cybersecurity threats and incidents that can range from uncoordinated individual attempts to gain unauthorized access to information systems to sophisticated and targeted measures known as advanced persistent threats, directed at the Company or its third party service providers. Our customers, strategic relationships and regulators expect us to maintain a suitable cybersecurity posture to identify, protect, detect, respond and recover from incidents that may impact the confidentiality, integrity and availability of sensitive information we possess. We evaluate the risks of data theft (including theft of sensitive, proprietary and other data categories, in addition to personal data), harm to customer or third party relationships and litigation or regulatory investigation or actions that could materially adversely affect our financial condition, results of operations and reputation. Cybersecurity risk is assessed and managed primarily through our technology, risk management, and audit teams and is overseen by our Board of Directors.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	The ISO provides our Board of Directors with periodic reports regarding the Company’s cybersecurity condition, key activities and recommendations for improvement of the Information Security Program. The ISO coordinates any incident responses with members of the Company’s executive management, regulators and third parties. The ISO also reports any matter relating to cybersecurity incident responses and control deficiencies to our Board of Directors and its Audit Committee, respectively.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	The Bank’s IT Steering Committee, comprising the ISO and members of the Company’s executive management and IT department, generally meets on a monthly basis to review developments regarding the Company’s cybersecurity risks, defenses and remediation activities. Minutes of the meetings of the IT Steering Committee are regularly reviewed by our Board of Directors.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	The ISO provides our Board of Directors with periodic reports regarding the Company’s cybersecurity condition, key activities and recommendations for improvement of the Information Security Program. The ISO coordinates any incident responses with members of the Company’s executive management, regulators and third parties. The ISO also reports any matter relating to cybersecurity incident responses and control deficiencies to our Board of Directors and its Audit Committee, respectively.
Cybersecurity Risk Role of Management [Text Block]	The cybersecurity department of the Bank’s Information Technology (“IT”) department is responsible for the day-to-day operations of our cybersecurity controls and defenses. The department is managed by the Bank’s IT Security Manager, who reports to the Bank’s Chief Technology Officer. The current IT Security Manager has more than 14 years of technology and cybersecurity experience. Our Chief Technology Officer periodically reports information about the Company’s cybersecurity risks and operational developments to our Board of Directors. The IT department provides the ISO with access to its operations and alerts regarding cybersecurity events. Events that could become cybersecurity incidents are reviewed and evaluated by the ISO in consultation with the IT department. Documented escalation procedures are tested regularly as part of tabletop exercises and other activities and include notification to executive management during qualifying cybersecurity incidents. The IT department shares responsibility with the ISO for identifying and prioritizing improvements to the Company’s cybersecurity capabilities and resources. The Bank’s IT Steering Committee, comprising the ISO and members of the Company’s executive management and IT department, generally meets on a monthly basis to review developments regarding the Company’s cybersecurity risks, defenses and remediation activities. Minutes of the meetings of the IT Steering Committee are regularly reviewed by our Board of Directors. We perform periodic risk assessments of the Company’s information systems based on regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”) and state and federal regulators, including the FDIC and the UDFI. We use multiple real-time and interval-based monitoring and reporting mechanisms to detect and respond to cybersecurity incidents. We also engage multiple independent third parties or cyber experts to detect and defend against cybersecurity threats and to assess information security programs and practices including penetration testing. Additionally, we participate in various cybersecurity industry forums and have access to law enforcement analyses regarding current threats. The ISO, along with the Bank’s Third-Party Oversight Committee, evaluates cybersecurity risks and information systems of third parties whose information systems support important Company operations or with whom the Company has significant business relationships at onboarding, on an ongoing basis and upon termination of the business relationship. Such evaluations may include reviews of reports or performing assessments of a third party’s information systems pursuant to established cybersecurity frameworks such as International Organization for Standardization (“ISO”) ISO 27001 or Cybersecurity Framework (“CSF”) published by the US National Institute of Standards and Technology, as well as reviews of reports issued by a third party’s auditors developed under the attestation standards issued by the American Institute of Certified Public Accountants (“AICPA”). When appropriate, the Company may include additional risk mitigation measures in its onboarding requirements for third parties to address any identified risk factors, such as minimum required information security performance agreements to enable cybersecurity threats and incidents to be managed within applicable industry or regulatory standards, disclosure obligations requiring reporting to the Company of the occurrence and mitigation of cybersecurity threats and incidents, and requirements to maintain adequate levels of cybersecurity insurance coverage. When a cybersecurity incident occurs, whether detected internally or from a third party, we evaluate the incident for criticality and potential materiality and disclosure. We consider various factors in assessing the materiality of a cybersecurity incident, including the potential for misappropriation, destruction, corruption or unavailability of critical data and confidential or proprietary information (our own or that of third parties) and business operation disruption, and may consult with external advisors, experts or legal counsel in connection with our assessment. We have escalation procedures to notify members of our executive management, Board of Directors and regulators in a timely manner based on the criticality and materiality of any cybersecurity incident.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	The Bank’s Information Security Officer (“ISO”), who reports to our Chief Compliance & Risk Officer, is directly responsible for assessing and managing cybersecurity risks pursuant to the Company’s Information Security Program, which is approved by our Board of Directors periodically.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	The current ISO has more than 5 years of cybersecurity experience and holds multiple industry certifications.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	The ISO provides our Board of Directors with periodic reports regarding the Company’s cybersecurity condition, key activities and recommendations for improvement of the Information Security Program. The ISO coordinates any incident responses with members of the Company’s executive management, regulators and third parties. The ISO also reports any matter relating to cybersecurity incident responses and control deficiencies to our Board of Directors and its Audit Committee, respectively.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

Income Taxes - Schedule of Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Deferred tax assets
Operating lease liabilities	$ 1,103	$ 1,302
Allowance for credit losses	8,650	2,274
Accrued bonuses	1,733	0
Loan servicing rights	553	316
Accrued vacation	205	0
Nonqualified stock options	159	154
Restricted stock	815	386
Unrealized losses on cash flow hedges	65	0
Unrealized losses on securities AFS	0	24
Other	109	438
Total deferred tax assets	13,392	4,894
Deferred tax liabilities
ROU asset	(742)	(875)
Other reserves	(5,317)	0
Deferred loan fees, net	(1,588)	(2,159)
Net book value of fixed assets	(2,776)	(2,020)
Loan trailing fees	(189)	(335)
Unrealized gains on cash flow hedges	0	(85)
Unrealized gains on securities AFS	(74)	0
Other	(361)	(319)
Total deferred tax liabilities	(11,047)	(5,793)
Deferred tax assets, net	$ 2,345
Deferred tax liabilities, net		$ (899)

Deposits - Schedule of Major Classes of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Deposits [Abstract]
Demand	$ 243,259	$ 198,185
Savings	11,017	9,287
Money markets	22,017	16,709
Time certificates of deposit	478,268	320,771
Total deposits	$ 754,561	$ 544,952

Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Current tax expense
Federal	$ 7,044	$ 3,030
State	1,817	1,127
Total current tax expense	8,861	4,157
Deferred tax expense (benefit)
Federal	(2,533)	425
State	(659)	(335)
Total deferred tax expense (benefit)	(3,192)	90
Total income tax expense
Federal	4,511	3,455
State	1,158	792
Total income tax expense	$ 5,669	$ 4,247

Earnings per Share

12 Months Ended

Dec. 31, 2025

Earnings Per Share [Abstract]

Earnings per Share

The following table is a reconciliation of the components used to derive basic and diluted EPS for the years ended December 31, 2025 and 2024 ($ in thousands, except per share amounts):


	Years Ended December 31,
	2025		2024
Numerator:
Net income	$	16,091	$	12,742
Amounts allocated to participating common shareholders(1)	(705)		(390)
Net income allocated to common shareholders	$	15,386	$	12,352
Denominator:
Weighted average shares outstanding, basic	12,828,016		12,612,455
Weighted average effect of dilutive securities:
Stock options	572,431		491,036
Warrants	164,889		125,378
Weighted average shares outstanding, diluted	13,565,336		13,228,869
Earnings per share, basic	$	1.20	$	0.98
Earnings per share, diluted	$	1.13	$	0.93

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

Income Taxes - Schedule of Income Tax Paid (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Income Tax Paid, by Individual Jurisdiction [Line Items]
U.S. Federal	$ 5,430	$ 4,247
Total income taxes paid, net of refunds	7,063	8,057
California
Income Tax Paid, by Individual Jurisdiction [Line Items]
State and local taxes	528	1,170
Georgia
Income Tax Paid, by Individual Jurisdiction [Line Items]
State and local taxes		904
Illinois
Income Tax Paid, by Individual Jurisdiction [Line Items]
State and local taxes		710
New Jersey
Income Tax Paid, by Individual Jurisdiction [Line Items]
State and local taxes	543
New York
Income Tax Paid, by Individual Jurisdiction [Line Items]
State and local taxes	379
Other states
Income Tax Paid, by Individual Jurisdiction [Line Items]
State and local taxes	$ 183	$ 1,026

Stock-Based Compensation and Employee Benefit Plans - Schedule of Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Stock Options
Outstanding, beginning of year (in shares)	905,182
Options exercised (in shares)	(174,151)
Options forfeited (in shares)	(4,540)
Outstanding, end of period (in shares)	726,491	905,182
Options vested and exercisable, end of year (in shares)	675,962
Weighted Average Exercise Price
Outstanding, beginning of year (in dollars per share)	$ 5.74
Options exercised (in dollars per share)	5.00
Options forfeited (in dollars per share)	8.61
Outstanding, end of period (in dollars per share)	5.90	$ 5.74
Options vested and exercisable, end of period (in dollars per share)	$ 5.76
Weighted Average Remaining Contractual Life (in years)
Outstanding	4 years 10 months 24 days	5 years 10 months 24 days
Options vested and exercisable	4 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding, beginning of year	$ 9,266,286
Options exercised	2,418,219
Outstanding, end of year	8,744,727	$ 9,266,286
Options vested and exercisable	$ 8,236,036

Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2025

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income

The following tables present changes to accumulated other comprehensive income by component for the periods indicated (in thousands):


	Available-for-Sale Securities		Cash Flow Hedges		Accumulated OCI
Balance at December 31, 2023	$	—	$	—	$	—
Other comprehensive income (loss) before reclassifications and income tax	(97)		509		412
Amounts reclassified from accumulated other comprehensive income	—		(164)		(164)
Income tax (expense) benefit	24		(85)		(61)
Total other comprehensive income (loss), net of tax	(73)		260		187
Balance at December 31, 2024	$	(73)	$	260	$	187


	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	321		(147)		174
Amounts reclassified from accumulated other comprehensive income	—		(387)		(387)
Income tax (expense) benefit	(81)		133		52
Total other comprehensive income (loss), net of tax	240		(401)		(161)
Balance at December 31, 2025	$	167	$	(141)	$	26

SBA Servicing Asset, Net - Schedule of SBA Servicing Asset Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of period	$ 3,273	$ 4,231
Additions to servicing asset	2,292	269
Amortization of servicing asset	(1,094)	(2,092)
Change in valuation allowance	(924)	865
Balance at end of period	3,547	3,273
SBA servicing asset, fair value	$ 3,547	$ 3,273

Loans - Schedule of Allowance for Credit Loss by Loan Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	$ 585,509	$ 465,233
Construction and land development
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	49,070	42,331
Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	56,441	61,316
Residential real estate multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	3,175	1,692
Owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	210,556	190,286
Non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	9,581	12,849
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	26,250	44,329
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	21,926	22,155
Lease financing receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	78,742	70,153
Retained Strategic Program loans:
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	129,768	20,122
Strategic Program loans - with credit enhancement
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	108,131	891
Strategic Program loans - without credit enhancement
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans held-for-investment, gross	$ 21,637	$ 19,231

Related Party Transactions (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024	Feb. 05, 2024	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Deposits	$ 1.2	$ 2.1
BFG
Schedule of Equity Method Investments [Line Items]
Membership interest (in percent)	20.00%		20.00%	10.00%

- Definition

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

+ References + Details

Investment in Business Funding Group, LLC	12 Months Ended
Investment in Business Funding Group, LLC	Dec. 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 the Company’s common stock. On February 5, 2024, the transaction was consummated and the Company issued an aggregate 339,176 shares of the Company’s common stock in a private placement to the sellers in exchange for the additional membership interest in BFG. The second transaction increased the Company’s total ownership interest in BFG to 20%. The ownership interest consists of Class A Voting Units representing 4.7% of the aggregate membership interests of BFG and Class B Non-Voting Units representing 15.3% of the aggregate membership interests of BFG. The remaining 80% of the outstanding membership interests are Class A Voting Units. Based on the Company’s accounting policy with respect to investments in limited liability companies, the Company concluded that its level of ownership was indicative of significant influence and, as a result, the investment would be accounted for using the equity method. However, the Company elected the fair value option for its investment due to cost-benefit considerations. On March 31, 2020, the Company entered into a right of first refusal and option agreement with the members of BFG whereby the Company has the right of first refusal to purchase additional interests in BFG from any selling members and the option to purchase all, but not less than all, of the interests in BFG from the remaining members. The purchase price for the remaining members’ interests is based on an earnings multiple between 10 times and 15 times BFG’s net profit for the fiscal year ended immediately prior to the exercise of the option. The option period begins on January 1, 2021 and expires on January 1, 2028. The Company issued an aggregate 270,000 warrants to the BFG members as consideration for entering into the agreement. The warrants have an exercise price of $6.67 per share and the warrants expire on March 31, 2028. The warrants are free-standing equity instruments and, as a result, are classified within equity at the fair value on the issuance date. The fair value of the warrants was determined by 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 information on the Company’s investment in BFG, see Note 14 - Related Party Transactions.

Premises and Equipment and Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Cash paid for operating leases	$ 1,177	$ 1,142

Deposits (Tables)

12 Months Ended

Dec. 31, 2025

Deposits [Abstract]

Schedule of Major Classes of Deposits

Major classes of deposits are as follows:


	December 31,
	2025		2024
($ in thousands)
Demand	$	243,259	$	198,185
Savings	11,017		9,287
Money markets	22,017		16,709
Time certificates of deposit	478,268		320,771
Total deposits	$	754,561	$	544,952

Schedule of Maturities of Time Deposits

At December 31, 2025, the scheduled maturities of time deposits are as follows ($ in thousands):


Year ended December 31, 2026	$	364,063
Year ended December 31, 2027	71,775
Year ended December 31, 2028	5,332
Year ended December 31, 2029	26,471
Year ended December 31, 2030	4
Thereafter	10,623
Total	$	478,268

- Definition

Tabular disclosure of type of deposit liability.

+ References

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

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

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

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

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

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (3)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (2)
-Publisher SEC

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (1)
-Publisher SEC

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

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

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

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

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

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

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

+ Details

Stock-Based Compensation and Employee Benefit Plans - Narrative (Details) - USD ($)					12 Months Ended
	Jan. 01, 2026	Jun. 27, 2024	Jun. 20, 2019	Apr. 20, 2017	Dec. 31, 2025	Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Proceeds from exercise of stock options					$ 481,000	$ 25,000
Safe harbor matching contribution, percent					100.00%
Employee's contribution percentage					4.00%
Minimum required service period to participate in plan					3 months
Profit sharing contributions					$ 1,300,000	1,100,000
Subsequent Event
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Minimum required service period to participate in plan	1 year
Restricted shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Fair value of restricted stock					2,500,000	$ 1,200,000
Unrecognized stock-based compensation expense					$ 4,500,000
Unrecognized stock-based compensation expense remaining weighted average vesting period					1 year 9 months 18 days
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized stock-based compensation expense					$ 18,900
Unrecognized stock-based compensation expense remaining weighted average vesting period					6 months
2019 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period (in years)			10 years
Additional shares authorized (in shares)		500,000
Number of shares authorized (in shares)		1,780,000
Number of shares available for grant (in shares)					122,617
2016 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period (in years)				10 years
Number of shares authorized (in shares)				299,628
Number of shares available for grant (in shares)					2,189
2019 Plan and 2016 Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expiration period (in years)					10 years
2019 Plan and 2016 Plan \| Restricted shares \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period (in years)					1 year
2019 Plan and 2016 Plan \| Restricted shares \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period (in years)					5 years
2019 Plan and 2016 Plan \| Stock options \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period (in years)					1 year
2019 Plan and 2016 Plan \| Stock options \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period (in years)					5 years

Premises and Equipment and Leases

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

Premises and Equipment and Leases

Premises and equipment, net consist of the following for the periods indicated:


	December 31,
($ in thousands)	2025		2024
Leasehold improvements	$	3,699	$	3,700
Furniture, fixtures, and equipment	2,665		2,786
Construction in progress	250		605
Total premises and equipment	$	6,614	$	7,091
Less accumulated depreciation	(4,074)		(3,543)
Premises and equipment, net	$	2,540	$	3,548

Depreciation and amortization expense for premises and equipment, included in occupancy and equipment expenses, was $0.9 million and $1.1 million for the years ended December 31, 2025 and 2024, respectively.

Leasing as a Lessor

The cost and accumulated depreciation of commercial operating equipment the Company is leasing to third parties is as follows:


	December 31,
($ in thousands)	2025		2024
Commercial operating lease equipment	$	17,290	$	12,874
Less accumulated deprecation	(4,715)		(2,698)
Commercial operating lease equipment, net	$	12,575	$	10,176

Depreciation expense for assets leased and available for lease was $2.4 million and $1.6 million for the years ended December 31, 2025 and 2024, respectively, and is included in other operating expenses. Rental income from commercial operating leases for the years ended December 31, 2025 and 2024 was $3.2 million and $2.2 million, respectively.

Leasing as a Lessee

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


	Years Ended December 31,
($ in thousands)	2025		2024
Operating leases
Operating lease cost	$	883	$	840
Variable lease cost	61		85
Operating lease expense	944		925
Short-term lease rent expense	—		37
Total rent expense	$	944	$	962

Future minimum annual undiscounted rental payments for the Company’s operating leases are as follows as of December 31, 2025 ($ in thousands):


Year ended December 31, 2026	$	1,212
Year ended December 31, 2027	1,160
Year ended December 31, 2028	1,186
Year ended December 31, 2029	1,017
Year ended December 31, 2030	—
Thereafter	—
Total future minimum lease payments	4,575
Less present value discount	(167)
Total operating lease liabilities	$	4,408

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


	As of
	December 31, 2025		December 31, 2024

Weighted-average remaining lease term – operating leases (in years)	3.8		4.8
Weighted-average discount rate – operating leases	1.9	%	1.9	%

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
	2025		2024
($ in thousands)
Cash paid for operating leases	$	1,177	$	1,142

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Statement of Comprehensive Income [Abstract]
Net income	$ 16,091	$ 12,742
Other comprehensive income (loss) items:
Unrealized gain (loss) on securities available-for-sale	321	(97)
Tax effect	(81)	24
Unrealized gain (loss) on interest rate swaps	(147)	509
Recognition of previously unrealized gain on interest rate swaps in net income	(387)	(164)
Tax effect	133	(85)
Other comprehensive income (loss), net of tax	(161)	187
Comprehensive income	$ 15,930	$ 12,929

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Statement of Financial Position [Abstract]
Restricted cash	$ 4,100,000	$ 3,200,000
Debt securities, available-for-sale, allowance for credit loss	0	0
Debt securities, available-for-sale, amortized cost	27,531,000	30,000,000.0
Investment securities held-to-maturity, allowance for credit losses	0	0
Investment securities held-to-maturity, fair value	8,982,000	11,057,000
Allowance for credit losses	36,796,000	13,176,000
Accumulated depreciation	$ 4,715,000	$ 2,698,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares, issued (in shares)	13,655,961	13,211,640
Common stock, shares outstanding (in shares)	13,655,961	13,211,640

SBA Servicing Asset, Net (Tables)

12 Months Ended

Dec. 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:


	Years Ended December 31,
($ in thousands)	2025		2024
Balance at beginning of period	$	3,273	$	4,231
Additions to servicing asset	2,292		269
Amortization of servicing asset	(1,094)		(2,092)
Change in valuation allowance	(924)		865
Balance at end of period	$	3,547	$	3,273

SBA servicing asset, fair value	$	3,547	$	3,273

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets

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


	Years Ended December 31,
($ in thousands)	2025		2024
Balance at beginning of period	$	(1,286)	$	(2,151)
Impairment	(1,004)		—
Recovery	80		865
Balance at end of period	$	(2,210)	$	(1,286)

Deposits - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Deposits [Abstract]
Time deposits equal or greater than FDIC insurance limits	$ 13.6	$ 10.9

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Schedule of Financial Instruments with Off-Balance Sheet Risk

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


	December 31,		December 31,
($ in thousands)	2025		2024
Revolving, open-end lines of credit	$	2,566	$	2,365
Credit card arrangements	$	305,313	$	—
Undisbursed commercial real estate loans	32,414		23,200
Other unused commitments	384		830
Total unfunded loan commitments	$	340,677	$	26,395

Segments (Tables)

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table provides segment information for the periods indicated ($ in thousands):


	At and for the Year Ended December 31, 2025
	Traditional Banking		BaaS		Treasury/Other		Intersegment Eliminations(1)		Total
Interest income	$	33,438	$	53,673	$	18,611	$	(13,244)	$	92,478
Interest expense	13,992		2,957		16,590		(13,244)		20,295
Net interest income	19,446		50,716		2,021		—		72,183
Non-interest income	12,448		44,582		2,804		—		59,834
Non-interest expense:
Salaries and benefits	4,241		8,951		818		—		14,010
Other non-interest expense	5,389		14,340		346		—		20,075
Provision for credit losses	5,917		32,656		—		—		38,573
Income before other operating expense allocations	16,347		39,351		3,661		—		59,359
Other operating expense allocations	12,450		25,149		—		—		37,599
Income before taxes	3,897		14,202		3,661		—		21,760
Income tax expense	1,015		3,700		954		—		5,669
Net income	$	2,882	$	10,502	$	2,707	$	—	$	16,091

December 31, 2025
Other segment disclosures:
Total assets	$	439,518	$	278,462	$	259,155	$	—	$	977,135

(1) Interest income and expense are allocated to segments based on their respective funding requirements using an internal transfer pricing methodology. The treasury and administration segment earns interest income from providing funds to the traditional banking and BaaS segments, which in turn incur corresponding interest expense. These internal interest flows are eliminated at the consolidated level through the intersegment/eliminations column.

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Cash and cash equivalents
Cash and due from banks	$ 12,082	$ 9,600
Interest-bearing deposits in other banks (restricted cash of $4.1 million and $3.2 million, respectively)	151,318	99,562
Total cash and cash equivalents	163,400	109,162
Investment securities available-for-sale, at fair value, net of allowance for credit losses of $0, (amortized cost of $27.5 million and $30.0 million, respectively)	27,755	29,930
Investment securities held-to-maturity, net of allowance for credit losses of $0, (fair value of $9.0 million and $11.1 million, respectively)	9,927	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	146,473	91,588
Loans held-for-investment, net of allowance for credit losses of $36.8 million and $13.2 million, respectively	541,551	447,812
Credit enhancement asset	22,411	111
Premises and equipment, net	2,540	3,548
Assets subject to operating leases, net of accumulated depreciation of $4.7 million and $2.7 million, respectively	12,575	10,176
Accrued interest receivable	3,707	3,566
Deferred income taxes, net	2,345	0
Small Business Administration (“SBA”) servicing asset, net	3,547	3,273
Investment in Business Funding Group (“BFG”), at fair value	9,000	7,700
Operating lease right-of-use (“ROU”) assets	2,963	3,564
Income taxes receivable, net	3,545	8,868
Other assets	24,956	13,764
Total assets	977,135	745,976
Deposits
Noninterest-bearing	168,442	126,782
Interest-bearing	586,119	418,170
Total deposits	754,561	544,952
Accrued interest payable	2,632	1,494
Income taxes payable, net	837	4,423
Deferred income taxes, net	0	899
Operating lease liabilities	4,408	5,302
Other liabilities	21,502	15,186
Total liabilities	783,940	572,256
Commitments and contingencies (Note 9)
Shareholders’ equity
Preferred stock, $0.001 par value, 4,000,000 authorized; no shares issued and outstanding as of December 31, 2025 and December 31, 2024	0	0
Common stock, $0.001 par value, 40,000,000 shares authorized; 13,655,961 and 13,211,640 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively	14	13
Additional paid-in-capital	60,958	56,926
Retained earnings	132,197	116,594
Accumulated other comprehensive income, net of tax	26	187
Total shareholders’ equity	193,195	173,720
Total liabilities and shareholders’ equity	$ 977,135	$ 745,976

Investment in Business Funding Group, LLC (Details) - Business Funding Group, LLC $ / shares in Units, $ in Millions	Feb. 05, 2024 shares	Jul. 25, 2023	Dec. 31, 2019 USD ($) shares	Dec. 31, 2025	Mar. 31, 2020 $ / shares shares
Schedule of Equity Method Investments [Line Items]
Membership interest (in percent)	20.00%		10.00%	20.00%
BFG ownership purchase (in shares)			950,784
Fair value of Company's shares \| $			$ 3.5
Equity method investment, ownership percentage , additions		0.10
Membership interests held by other existing members			80.00%
Number of warrants (in shares)					270,000
Warrant exercise price (in dollars per share) \| $ / shares					$ 6.67
Warrants issued during period, fair value (in dollars per share) \| $ / shares					$ 0.19
Minimum
Schedule of Equity Method Investments [Line Items]
Investment owned, purchase option, earnings multiplier used for purchase price					10
Maximum
Schedule of Equity Method Investments [Line Items]
Investment owned, purchase option, earnings multiplier used for purchase price					15
Class A Voting Units
Schedule of Equity Method Investments [Line Items]
Membership interest (in percent)	4.70%
Class B Non-Voting Units
Schedule of Equity Method Investments [Line Items]
Membership interest (in percent)	15.30%
Private Placement
Schedule of Equity Method Investments [Line Items]
BFG ownership purchase (in shares)	339,176

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2025	Mar. 16, 2026	Jun. 30, 2025
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2025
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-40721
Entity Registrant Name	FINWISE BANCORP
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	83-0356689
Entity Address, Address Line One	756 East Winchester, Suite 100
Entity Address, City or Town	Murray
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84107
City Area Code	(801)
Local Phone Number	501-7200
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	FINW
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 162.9
Entity Common Stock, Shares Outstanding		13,676,859
Documents Incorporated by Reference	Portions of the registrant’s proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2026 Annual Meeting of Shareholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the registrant’s fiscal year ended December 31, 2025.
Entity Central Index Key	0001856365
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	FY
Amendment Flag	false

Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

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

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (“OCI”) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated OCI related to derivatives will be reclassified to interest on deposits as interest payments are made on the Company’s variable-rate deposits. During the twelve months following December 31, 2025, the Company estimates that an additional $0.2 million will be reclassified as an increase to interest expense.

Fair Value of Derivative Instruments on the Consolidated Balance Sheets

The tables below present the notional amount, location, and fair value of the Company’s derivative financial instruments on the Consolidated Balance Sheets as of the periods indicated:

Derivative Liabilities

As of December 31, 2025

($ in thousands)

Notional Amount

Balance Sheet Location

Fair Value

Derivatives designated as hedging instruments:

Interest rate swaps

80,000

Other liabilities

148

Total

148

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 tables below present the pre-tax effect of cash flow hedge accounting on accumulated other comprehensive income for the periods indicated:


	Year Ended December 31, 2025
($ in thousands)	Amount of Gain (Loss) Recognized in OCI on Derivative		Location of Gain (Loss) Recognized from Accumulated OCI into Income	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
Derivatives in Cash Flow Hedging Relationships:
Interest rate swaps	$	(147)	Interest on deposits	$	387
Total	$	(147)		$	387


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

Effect of Cash Flow Hedge Accounting on the Statements of Income

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the periods indicated:


	Location and Amount of Gain Recognized in Income on Cash Flow Hedging Relationships		Location and Amount of Gain Recognized in Income on Cash Flow Hedging Relationships
($ in thousands)	2025		2024
Location of gain recognized in income	Interest on deposits		Interest on deposits
Total amounts of income and expense line items presented in consolidated statements of income in which the effects of cash flow hedges are recorded	$	387	$	164

The effects of cash flow hedging:
Interest rate swaps:
Amount of gain reclassified from accumulated OCI into income	$	387	$	164

Offsetting Derivative Assets and Liabilities


As of December 31, 2025							Gross Amounts Not Offset in the Statement of Financial Position
($ in thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Pledged		Net Amount
Liabilities:
Interest rate swaps	$	148	$	—	$	148		$	—	$	—	$	148


As of December 31, 2024							Gross Amounts Not Offset in the Statement of Financial Position
($ in thousands)	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

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
-Section 55
-Paragraph 182
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-URI https://asc.fasb.org/1943274/2147480401/815-10-55-182

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-URI https://asc.fasb.org/1943274/2147480434/815-10-50-4F

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)(ii)
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-5

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C

+ Details

Income Taxes - Schedule of Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Amount
Tax provision at the U.S. federal statutory rate	$ 4,570	$ 3,568
State income taxes, net	915	607
Nontaxable or nondeductible items:
Nondeductible compensation	393	27
Other nontaxable or nondeductible items	13	12
Other	(222)	33
Total income tax expense	$ 5,669	$ 4,247
%
Tax provision at the U.S. federal statutory rate	21.00%	21.00%
State income taxes, net	4.20%	3.60%
Nontaxable or nondeductible items:
Nondeductible compensation	0.018	0.002
Other nontaxable or nondeductible items	0.10%	0.00%
Other	(1.00%)	0.20%
Income tax expense	26.10%	25.00%

Investments - Schedule of Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
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)
Held-to-maturity:
Less than 12 months, Fair Value	$ 39	633
Less than 12 months, Unrealized Losses	0	(17)
12 Months or More, Fair Value	7,536	8,752
12 Months or More, Unrealized Losses	(951)	(1,499)
Total, Fair Value	7,575	9,385
Total, Unrealized Losses	(951)	(1,516)
U.S. 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	0	0
Less than 12 months, Unrealized Losses	0	0
12 Months or More, Fair Value	4,164	5,164
12 Months or More, Unrealized Losses	(456)	(746)
Total, Fair Value	4,164	5,164
Total, Unrealized Losses	(456)	(746)
Collateralized mortgage obligations
Held-to-maturity:
Less than 12 months, Fair Value	39	633
Less than 12 months, Unrealized Losses	0	(17)
12 Months or More, Fair Value	3,372	3,588
12 Months or More, Unrealized Losses	(495)	(753)
Total, Fair Value	3,411	4,221
Total, Unrealized Losses	$ (495)	$ (770)

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2025
Auditor Information [Abstract]
Auditor Firm ID	173
Auditor Name	Baker Tilly US, LLP
Auditor Location	Everett, Washington

Fair Value of Financial Instruments - Schedule of Investment in BFG Level 3 Recurring Asset (Details) - Level 3 - Fair Value, Recurring	Dec. 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 (in percent)	0.129	0.153
Discounted Cash Flows \| Expense growth rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input (in percent)	0.148	0.149
Discounted Cash Flows \| Discount rate \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input (in percent)	0.250	0.275
Discounted Cash Flows \| Lack of marketability discount \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input (in percent)	0.200	0.200
Guideline Public Company \| Multiples of enterprise value \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input (in percent)	3.5	3.5
Guideline Public Company \| Multiples of enterprise value \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment, measurement input (in percent)	5.3	5.8

Premises and Equipment and Leases - Schedule of Weighted-Average Lease Term and Discount Rate (Details)	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Weighted-average remaining lease term – operating leases (in years)	3 years 9 months 18 days	4 years 9 months 18 days
Weighted-average discount rate – operating leases	1.90%	1.90%

Fair Value of Financial Instruments

12 Months Ended

Dec. 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). U.S. GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy.

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

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

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

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. There were no transfers between fair value levels for the years ended December 31, 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 AFS consist of U.S. Treasury securities and are carried at fair value. The Company estimates the fair value of investment securities AFS using current active market quotes, if available, which are considered Level 1 measurements. Level 1 measurements include securities issued by the U.S. Treasury.

Investment in BFG: The Company’s valuation technique utilized the average of the discounted cash flow method and the Guideline Public Company method. A 4.50% discount for non-voting shares was applied to the valuation to arrive at fair value as of December 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 as of the periods indicated:


		December 31, 2025		December 31, 2024
($ in thousands)	Level	Estimated Fair Value		Estimated Fair Value
Financial assets:
U.S. Treasury securities	1	$	27,755	$	29,930
Investment in BFG	3	$	9,000	$	7,700
Derivative asset	2	$	—	$	509
Financial liabilities:
Derivative liability	2	$	148	$	—

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:


	Years Ended December 31,
($ in thousands)	2025		2024
Beginning balance	$	7,700	$	4,200
Purchase of BFG ownership interest	—		4,125
Change in fair value of BFG	1,300		(625)
Ending balance	$	9,000	$	7,700

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


($ in thousands)			Fair Value Measurements Using
Description of Financial Instrument	Fair Value		Level 1		Level 2		Level 3
December 31, 2025
Nonrecurring assets:
Individually evaluated loans	$	43,217	$	—	$	—	$	43,217
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 December 31, 2025 and 2024:

($ in thousands)

Fair Value

Valuation
Technique

Unobservable
Input

Range
(Weighted Average)

December 31, 2025

Individually evaluated loans

43,217

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 December 31, 2025 and as of December 31, 2024 are shown in the following table:


($ in thousands)	December 31, 2025 Range (Weighted Average)		December 31, 2024 Range (Weighted Average)
Discounted Cash Flows
Revenue growth rate	12.9	%	15.3	%
Expense growth rate	14.8	%	14.9	%
Discount rate	25.0	%	27.5	%
Lack of marketability discount	20.0	%	20.0	%

Guideline Public Company
Multiples of enterprise value	3.5x to 5.3x		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:


	December 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	$	163,400	$	163,400	$	163,400	$	—	$	—
Investment securities available-for-sale	27,755		27,755		27,755		—		—
Investment securities held-to-maturity	9,927		8,982		—		8,982		—
Investment in FHLB stock	440		440		—		440		—
Loans held-for-investment, net	541,551		576,270		—		—		576,270
Strategic Program loans held-for-sale	146,473		146,473		—		146,473		—
Accrued interest receivable	3,707		3,707		—		3,707		—
SBA servicing asset, net	3,547		3,547		—		3,547		—
Investment in BFG	9,000		9,000		—		—		9,000

Financial liabilities:
Total deposits	$	754,561	$	727,637	$	—	$	727,637	$	—
Accrued interest payable	2,632		2,632		—		2,632		—
Derivative liability	148		148		—		148		—


	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/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 13: 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 - Schedule of Amortized Cost and Estimated Market Value of Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Amortized Cost
Due in one year or less	$ 0
Due after one year through five years	1,049
Due after five years through ten years	1,277
Due after ten years	7,601
Amortized Cost	9,927	$ 12,565
Estimated Fair Value
Due in one year or less	0
Due after one year through five years	1,026
Due after five years through ten years	1,177
Due after ten years	6,779
Estimated Fair Value	$ 8,982	$ 11,057

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Cash flows from operating activities:
Net income	$ 16,091	$ 12,742
Adjustments to reconcile net income to net cash used in operating activities
Depreciation and amortization	4,864	5,289
Provision for credit losses	38,573	11,573
Noncash operating lease cost	601	729
Net (accretion) amortization in securities (discounts) and premiums	(18)	(25)
Other	(2,015)	(269)
Gain on sale of loans, net	(6,373)	(2,036)
Originations of Strategic Program loans held-for-sale	(5,719,396)	(4,829,497)
Proceeds from sale of Strategic Program loans held-for-sale	5,665,342	4,785,423
Change in fair value of BFG	(1,300)	625
Impairment (recovery) of SBA servicing asset	924	(865)
Stock-based compensation expense	3,579	2,046
Noncash change in credit enhancement asset	(22,300)	(111)
Deferred income taxes	(3,192)	90
Net changes in:
Accrued interest receivable	(141)	7
Other assets	(6,009)	(1,659)
Accrued interest payable	1,138	875
Operating lease liabilities	(894)	(994)
Other liabilities	2,102	1,066
Net cash used in operating activities	(28,424)	(14,991)
Cash flows from investing activities:
Net increase in loans receivable	(188,176)	(64,995)
Purchase of lease pools	(44,362)	(35,831)
Proceeds from sales of loans held-for-investment	105,863	529
Proceeds from sales of assets subject to operating leases	468	103
Purchase of investment securities available-for-sale	0	(30,018)
Purchase of bank premises and equipment, net	(219)	(1,076)
Purchase of assets subject to operating leases	(5,548)	(3,819)
Proceeds from maturities of securities available-for-sale	2,500	0
Proceeds from maturities and paydowns of securities held-to-maturity	2,653	2,839
(Purchase) redemption of FHLB stock	(91)	(111)
Net cash used in investing activities	(126,912)	(132,379)
Cash flows from financing activities:
Net increase in deposits	209,609	140,119
Common stock repurchased	0	(461)
Proceeds from exercise of stock options	481	25
Payment of taxes related to net share settlement of equity awards	(516)	0
Repayment of PPP Liquidity Facility	0	(126)
Net cash provided by financing activities	209,574	139,557
Net change in cash, cash equivalents and restricted cash	54,238	(7,813)
Cash, cash equivalents and restricted cash, beginning of the period	109,162	116,975
Cash, cash equivalents and restricted cash, end of the period	163,400	109,162
Supplemental disclosures of cash flow information:
Cash paid for interest	19,157	14,565
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

Investments

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Investments

Investment Securities Available-for-Sale, at Fair Value

The Company’s AFS investment portfolio consists of U.S. Treasury securities. The Company reports debt securities AFS on the Company’s Consolidated Balance Sheets at fair value. The amortized cost, gross unrealized gains and losses, and estimated fair value of investment securities AFS as of December 31, 2025 and 2024, are summarized as follows:


	December 31, 2025
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
U.S. Treasury securities	$	27,531	$	224	$	—	$	27,755


	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 at December 31, 2025, by contractual maturity:


	December 31, 2025
($ in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,501	$	2,512
Due after one year through five years	25,030		25,243


Total securities AFS	$	27,531	$	27,755

At December 31, 2025, debt securities AFS with a fair value of $27.8 million were pledged as collateral for a credit line held by the Bank. Accrued interest receivable on debt securities AFS totaled $0.5 million and $0.5 million at December 31, 2025 and 2024, respectively, and was included in accrued interest receivable on the Consolidated Balance Sheets.

Investment Securities Held-to-Maturity, at Cost

The Company's HTM investment portfolio consists of agency mortgage-backed securities and agency collateralized mortgage obligations. The Company reports debt securities HTM on the Company's Consolidated Balance Sheets at carrying value which is amortized cost. The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s debt securities HTM at December 31, 2025 and December 31, 2024, are summarized as follows:


	December 31, 2025
($ in thousands)	Amortized Cost		Allowance for Credit Losses		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Mortgage-backed securities	$	4,961	$	—	$	1	$	(456)	$	4,506
Collateralized mortgage obligations	4,966		—		5		(495)		4,476
Total securities held-to-maturity	$	9,927	$	—	$	6	$	(951)	$	8,982


	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


	December 31, 2025
($ in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	—	$	—
Due after one year through five years	1,049		1,026
Due after five years through ten years	1,277		1,177
Due after ten years	7,601		6,779
Total securities HTM	$	9,927	$	8,982

At December 31, 2025, debt securities HTM in the amount of $9.9 million were pledged as collateral for a credit line held by the Bank.

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 December 31, 2025 and 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 seventeen securities, consisting of eight collateralized mortgage obligations and nine mortgage-backed securities in an unrealized loss position at December 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 December 31, 2025 and 2024:


	December 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	$	—	$	—	$	4,164	$	(456)	$	4,164	$	(456)
Collateralized mortgage obligations	39		—		3,372		(495)		3,411		(495)
Total	$	39	$	—	$	7,536	$	(951)	$	7,575	$	(951)


	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)

There were no sales or transfers of investment securities and no realized gains or losses on these securities during the year ended December 31, 2025 or 2024.

FHLB Stock

The Bank is a member of the FHLB system. As a member, we are required to maintain a minimum level of investment in FHLB stock based on a percentage of our previous year-end assets and our FHLB advances outstanding. At December 31, 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 December 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.

SBA Servicing Asset, Net

12 Months Ended

Dec. 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 sheets. The unpaid principal balances of SBA loans serviced for others was $275.8 million and $218.4 million at December 31, 2025 and 2024, respectively.

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


	Years Ended December 31,
($ in thousands)	2025		2024
Balance at beginning of period	$	3,273	$	4,231
Additions to servicing asset	2,292		269
Amortization of servicing asset	(1,094)		(2,092)
Change in valuation allowance	(924)		865
Balance at end of period	$	3,547	$	3,273

SBA servicing asset, fair value	$	3,547	$	3,273

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


	Years Ended December 31,
($ in thousands)	2025		2024
Balance at beginning of period	$	(1,286)	$	(2,151)
Impairment	(1,004)		—
Recovery	80		865
Balance at end of period	$	(2,210)	$	(1,286)

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 19.1%, weighted average term of 3.46 years, and a weighted average discount rate of 12.3% at December 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480591/815-20-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481420/860-30-50-1A

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(11))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479170/946-210-S99-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
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-URI https://asc.fasb.org/1943274/2147481420/860-30-50-1A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481229/860-50-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-3

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-3

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-4

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

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(4)(ii)
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-URI https://asc.fasb.org/1943274/2147481229/860-50-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
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-Paragraph 3
-Subparagraph (a)(5)
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-URI https://asc.fasb.org/1943274/2147481229/860-50-50-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481229/860-50-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/860/tableOfContent

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
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-URI https://asc.fasb.org/1943274/2147481326/860-20-50-3

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481326/860-20-50-4

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 4D
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-4D

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
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Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Premises and Equipment and Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Abstract]
Depreciation depletion and amortization	$ 900	$ 1,100
Depreciation expense	2,400	1,600
Commercial operating lease equipment, net	2,540	3,548
Rental income	$ 3,200	$ 2,200

- Definition

The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets to periods that benefit from use of the assets.

+ References + Details

Loans - Schedule of Collateral-Dependent Financial Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	$ 422	$ 55
Individually evaluated loans	43,217	35,723
Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	40,056	33,575
Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	3,161	2,148
Construction and land development \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	2,288	0
Construction and land development \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	2,288	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 \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	45	10
Individually evaluated loans	11,237	7,242
Residential real estate \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	11,237	7,242
Residential real estate \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Owner occupied \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	9
Individually evaluated loans	23,768	23,537
Owner occupied \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	23,768	23,537
Owner occupied \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Non-owner occupied \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	2,763	2,796
Non-owner occupied \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	2,763	2,796
Non-owner occupied \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0	0
Commercial and industrial \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	0	0
Individually evaluated loans	2,250	1,788
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	2,250	1,788
Consumer \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	52
Individually evaluated loans	52
Consumer \| Real Estate
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	0
Consumer \| Personal Property
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Individually evaluated loans	52
Commercial leases \| Total
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Allowance for Credit Losses	325	36
Individually evaluated loans	859	360
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	$ 859	$ 360

Condensed Financial Statements of Parent Company (Tables)

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Abstract]

Schedule of Balance Sheets

Condensed Balance Sheets


	December 31,
($ in thousands)	2025		2024
Assets
Cash and cash equivalents	$	19,069	$	20,764
Investment in FinWise Bank	157,551		140,203
Investment in BFG, at fair value	9,000		7,700
Investment in FinWise Investment, LLC	460		290
Deferred taxes, net	254		32
Income taxes receivable	507		5,014
Other assets	7,446		133
Total assets	$	194,287	$	174,134
Liabilities and shareholders' equity

Other liabilities	$	1,092	$	414
Shareholders’ equity	193,195		173,720
Total liabilities and shareholders’ equity	$	194,287	$	174,134

Schedule of Statement of Income

Condensed Statements of Income


	Years Ended December 31,
($ in thousands)	2025		2024
Non-interest income
Change in fair value on investment in BFG	$	1,300	$	(625)
Equity in undistributed earnings of subsidiary	17,510		17,960
Other miscellaneous income	1,480		630
Total non-interest income	20,290		17,965
Non-interest expense
Salaries and employee benefits	3,239		4,606
Professional services	651		1,273
Other operating expenses	821		943
Total non-interest expense	4,711		6,822
Income before income taxes	15,579		11,143
Income tax benefit	(512)		(1,599)
Net income	$	16,091	$	12,742

Schedule of Statements of Cash Flows

Condensed Statements of Cash Flows


	Years Ended December 31,
($ in thousands)	2025		2024
Cash flows from operating activities:
Net income	$	16,091	$	12,742
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed net income of subsidiaries	(17,510)		(17,960)
Change in fair value of BFG	(1,300)		625
Stock-based compensation expense	3,579		2,046
Deferred income tax expense	(222)		156
Net changes in:
Income tax payable (receivable)	4,507		(4,186)
Other assets	(7,313)		(91)
Other liabilities	678		(642)
Net cash used in operating activities	(1,491)		(7,310)
Cash flows from investing activities:
Payments to acquire other investments	(170)		—
Cash used in investing activities	(170)		—
Cash flows from financing activities:
Proceeds from exercise of stock options	481		25
Payment of taxes related to net share settlement of equity awards	(516)		—
Common stock repurchased	—		(461)
Net cash used in financing activities	(35)		(436)
Net change in cash and cash equivalents	(1,695)		(7,746)
Cash and cash equivalents, beginning of year	20,764		28,510
Cash and cash equivalents, end of year	$	19,069	$	20,764

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

The components of income tax expense consist of the following:


	December 31,
($ in thousands)	2025		2024
Current tax expense
Federal	$	7,044	$	3,030
State	1,817		1,127
Total current tax expense	$	8,861	$	4,157
Deferred tax expense (benefit)
Federal	$	(2,533)	$	425
State	(659)		(335)
Total deferred tax expense (benefit)	$	(3,192)	$	90
Total income tax expense
Federal	$	4,511	$	3,455
State	1,158		792
Total income tax expense	$	5,669	$	4,247

Schedule of Components of Deferred Income Tax Assets and Liabilities

The components of net deferred income tax assets and liabilities on the balance sheet at December 31, 2025 and 2024, are as follows:


	December 31,
($ in thousands)	2025		2024
Deferred tax assets
Operating lease liabilities	$	1,103	$	1,302
Allowance for credit losses	8,650		2,274
Accrued bonuses	1,733		—
Loan servicing rights	553		316
Accrued vacation	205		—
Nonqualified stock options	159		154
Restricted stock	815		386
Unrealized losses on cash flow hedges	65		—
Unrealized losses on securities AFS	—		24
Other	109		438
Total deferred tax assets	13,392		4,894

Deferred tax liabilities
ROU asset	(742)		(875)
Other reserves	(5,317)		—
Deferred loan fees, net	(1,588)		(2,159)
Net book value of fixed assets	(2,776)		(2,020)
Loan trailing fees	(189)		(335)
Unrealized gains on cash flow hedges	—		(85)
Unrealized gains on securities AFS	(74)		—
Other	(361)		(319)
Total deferred tax liabilities	(11,047)		(5,793)
Deferred tax assets (liabilities), net	$	2,345	$	(899)

Schedule of Reconciliation of Income Tax Expense

The income tax expense recorded differs from the expected income tax expense and the reconciliation of these differences is as follows at December 31, 2025 and 2024:


	December 31,
	2025				2024
($ in thousands)	Amount		%		Amount		%
Tax provision at the U.S. federal statutory rate	$	4,570	21.0	%	$	3,568	21.0	%
State income taxes, net	915		4.2	%	607		3.6	%
Nontaxable or nondeductible items:
Nondeductible compensation	393		1.8	%	27		0.2	%
Other nontaxable or nondeductible items	13		0.1	%	12		—	%
Other adjustments:
Other	(222)		(1.0)	%	33		0.2	%
Income tax expense	$	5,669	26.1	%	$	4,247	25.0	%

Schedule of Income Tax Paid

Income taxes paid, net of refunds were as follows:


	December 31,
($ in thousands)	2025		2024
U.S. Federal	$	5,430	$	4,247
State and local taxes:
California	528		1,170
Georgia	*		904
Illinois	*		710
New Jersey	543		*
New York	379		*
Other states	183		1,026
Total income taxes paid, net of refunds	$	7,063	$	8,057
*The amount of income taxes paid during the years ended December 31, 2025 and 2024 does not meet the 5% disaggregation threshold.

Loans - Schedule of Allowance for Credit Enhancement Asset (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Change in Credit Enhancement Asset [Roll Forward]
Beginning Balance	$ 111	$ 0
Credit enhancement income	23,924	111
Credit losses settled with partner during period	(1,624)	0
Ending Balance	$ 22,411	$ 111

Segments

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Segments

As the Company experienced significant growth in size and complexity, management reassessed its approach to analyzing revenues, financial performance, and business activities. To align with the internal financial reporting with the organizational structure and how the CODM manages the business, evaluates performance, and allocates resources, the Company completed a technology project to capture financial information by segment. The CODM currently reviews the revenues and financial results for three operating and reportable segments: traditional banking, banking as a service (“BaaS”), and treasury and administration. Considering management’s needs due to the increased volume and complexity of its business, management implemented new processes and utilized system capabilities to capture accounting information by cost centers. The cost centers are subsequently mapped to the established business segments and reports reflecting the new structure and processes were finalized and provided to the CODM during the third quarter of 2025. Due to the fact that financial data was not previously recorded by cost center, it is not practicable to present segment financial information for comparative prior periods.

The Company’s traditional banking segment provides loan and deposit products and services to consumers and businesses nationally and in and around the Salt Lake City, Utah MSA. The Company’s BaaS segment provides lending, card and payments solutions nationally to fintech brands. The treasury and administration segment consists of investments, deposits sourced nationally to support the business segments, interest charged to the traditional banking and BaaS segments on funding provided to those businesses, and other items not specific to the traditional banking or BaaS segments.

The accounting policies applicable to our segments are consistent with those applied to the preparation of the accompanying consolidated financial statements. Intersegment interest and expense transactions are recorded at the Company’s cost; there is no intercompany profit or loss on intersegment transactions. The Company has implemented a transfer pricing process that credits or charges the traditional banking and BaaS segments with intrabank interest income or expense, with the treasury and administration segment as the offset for those entries.

The CODM evaluates performance and allocates resources for each of the Company’s reportable segments based on segment income or loss before other allocated operating expenses and net income. The CODM uses income or loss before

other allocated operating expenses to allocate resources for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis using the income before other allocated operating expenses when making decisions about allocating capital and personnel to the segments.

The Company’s CODM is the chief executive officer and its president.

In the segment reporting below, a non-GAAP subtotal is shown captioned “Income before other operating expense allocation”. That subtotal presents an income subtotal before consideration of allocated corporate expenses which might be fixed, semi-fixed or otherwise resist changes without regard to a particular line of business. The following table provides segment information for the periods indicated ($ in thousands):


	At and for the Year Ended December 31, 2025
	Traditional Banking		BaaS		Treasury/Other		Intersegment Eliminations(1)		Total
Interest income	$	33,438	$	53,673	$	18,611	$	(13,244)	$	92,478
Interest expense	13,992		2,957		16,590		(13,244)		20,295
Net interest income	19,446		50,716		2,021		—		72,183
Non-interest income	12,448		44,582		2,804		—		59,834
Non-interest expense:
Salaries and benefits	4,241		8,951		818		—		14,010
Other non-interest expense	5,389		14,340		346		—		20,075
Provision for credit losses	5,917		32,656		—		—		38,573
Income before other operating expense allocations	16,347		39,351		3,661		—		59,359
Other operating expense allocations	12,450		25,149		—		—		37,599
Income before taxes	3,897		14,202		3,661		—		21,760
Income tax expense	1,015		3,700		954		—		5,669
Net income	$	2,882	$	10,502	$	2,707	$	—	$	16,091

December 31, 2025
Other segment disclosures:
Total assets	$	439,518	$	278,462	$	259,155	$	—	$	977,135

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Commitments and Contingencies - Schedule of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	$ 340,677	$ 26,395
Revolving, open-end lines of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	2,566	2,365
Credit card arrangements
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	305,313	0
Undisbursed commercial real estate loans
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	32,414	23,200
Other unused commitments
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Total unfunded loan commitments	$ 384	$ 830

Segments - Narrative (Details) - segment	6 Months Ended	12 Months Ended
Segments - Narrative (Details) - segment	Jun. 30, 2025	Dec. 31, 2025
Segment Reporting [Abstract]
Number of operating segments	1	3
Number of reporting segments		3

SBA Servicing Asset, Net - Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Balance at beginning of period	$ (1,286)	$ (2,151)
Impairment	(1,004)	0
Recovery	80	865
Balance at end of period	$ (2,210)	$ (1,286)

Stock-Based Compensation and Employee Benefit Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total	$ 3,579	$ 2,046
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total	102	237
Restricted shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total	3,477	1,809
Income tax benefit related to restricted shares	$ 860	$ 439

- 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

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+ Details

Derivatives and Hedging Activities - Offsetting Derivative Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Liabilities:
Gross Amounts of Recognized Liabilities	$ 148
Gross Amounts Offset in the Statement of Financial Position	0
Net Amounts of Liabilities presented in the Statement of Financial Position	148
Financial Instruments	0
Cash Collateral Pledged	0
Net Amount	$ 148
Assets:
Gross Amounts of Recognized Assets		$ 509
Gross Amounts Offset in the Statement of Financial Position		0
Net Amounts of Assets presented in the Statement of Financial Position		509
Financial Instruments		0
Cash Collateral Received		0
Net Amount		$ 509

Premises and Equipment and Leases - Schedule of Lease Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Operating leases
Operating lease cost	$ 883	$ 840
Variable lease cost	61	85
Operating lease expense	944	925
Short-term lease rent expense	0	37
Total rent expense	$ 944	$ 962

Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Statements of Parent Company

Financial information pertaining only to FinWise Bancorp, on a parent company-only basis, is as follows as of and for the years ended December 31, 2025 and 2024:

Condensed Balance Sheets


	December 31,
($ in thousands)	2025		2024
Assets
Cash and cash equivalents	$	19,069	$	20,764
Investment in FinWise Bank	157,551		140,203
Investment in BFG, at fair value	9,000		7,700
Investment in FinWise Investment, LLC	460		290
Deferred taxes, net	254		32
Income taxes receivable	507		5,014
Other assets	7,446		133
Total assets	$	194,287	$	174,134
Liabilities and shareholders' equity

Other liabilities	$	1,092	$	414
Shareholders’ equity	193,195		173,720
Total liabilities and shareholders’ equity	$	194,287	$	174,134

Condensed Statements of Income


	Years Ended December 31,
($ in thousands)	2025		2024
Non-interest income
Change in fair value on investment in BFG	$	1,300	$	(625)
Equity in undistributed earnings of subsidiary	17,510		17,960
Other miscellaneous income	1,480		630
Total non-interest income	20,290		17,965
Non-interest expense
Salaries and employee benefits	3,239		4,606
Professional services	651		1,273
Other operating expenses	821		943
Total non-interest expense	4,711		6,822
Income before income taxes	15,579		11,143
Income tax benefit	(512)		(1,599)
Net income	$	16,091	$	12,742

Condensed Statements of Cash Flows


	Years Ended December 31,
($ in thousands)	2025		2024
Cash flows from operating activities:
Net income	$	16,091	$	12,742
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed net income of subsidiaries	(17,510)		(17,960)
Change in fair value of BFG	(1,300)		625
Stock-based compensation expense	3,579		2,046
Deferred income tax expense	(222)		156
Net changes in:
Income tax payable (receivable)	4,507		(4,186)
Other assets	(7,313)		(91)
Other liabilities	678		(642)
Net cash used in operating activities	(1,491)		(7,310)
Cash flows from investing activities:
Payments to acquire other investments	(170)		—
Cash used in investing activities	(170)		—
Cash flows from financing activities:
Proceeds from exercise of stock options	481		25
Payment of taxes related to net share settlement of equity awards	(516)		—
Common stock repurchased	—		(461)
Net cash used in financing activities	(35)		(436)
Net change in cash and cash equivalents	(1,695)		(7,746)
Cash and cash equivalents, beginning of year	20,764		28,510
Cash and cash equivalents, end of year	$	19,069	$	20,764

Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2025

Capital Requirements [Abstract]

Schedule of Capital Amounts and Ratios

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


	Actual				Well-Capitalized Requirement
($ in thousands)	Amount		Ratio		Amount		Ratio
December 31, 2025
Leverage ratio (CBLR election)	$	153,219	16.9	%	$	81,608	9.0	%
December 31, 2024
Leverage ratio (CBLR election)	$	135,375	20.6	%	$	59,196	9.0	%

Capital Requirements - Actual Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)
Amount
Actual	$ 153,219	$ 135,375
Well-Capitalized Requirement	$ 81,608	$ 59,196
Ratio
Actual	0.169	0.206
Well-Capitalized Requirement	0.090	0.090

Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2025
Accounting Policies [Abstract]
Principles of consolidation	Principles of consolidation – The consolidated financial statements include the accounts of FinWise Bancorp and its wholly-owned subsidiaries, FinWise Bank and FinWise Investment, LLC. All significant inter-company balances and transactions have been eliminated in consolidation.
Significant concentrations of credit risk	Significant concentrations of credit risk – The Company's lending and leasing activities are conducted with customers located throughout the United States. The Company’s loan portfolio may, from time to time, have concentrations in significant balances in certain loan categories, such as SBA loans or Strategic Program loans. The relative significance and composition of the portfolio may change over time based on business strategy and market conditions. The collectibility of loans and leases is particularly susceptible to changes in market conditions, such as shifts in interest rates and economic downturns. Ongoing analysis of the Company's loan portfolio is performed to evaluate whether there is any significant exposure to an individual borrower or group(s) of borrowers as a result of any concentrations of credit risk. Such credit risks (whether on- or off-balance sheet) may occur when groups of borrowers or counterparties have similar economic characteristics and are similarly affected by changes in economic or other conditions. Credit risk also includes the loss that would be recognized subsequent to the reporting date if counterparties failed to perform as contracted. As of December 31, 2025 and 2024, the Company analyzed its exposure to credit risks and concluded that no significant exposure exists from such concentrations of credit risk.
Use of estimates	Use of estimates – In preparing the consolidated financial statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”), management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities as of the date of the consolidated balance sheets and certain revenues and expenses for the period. Actual results could differ, either positively or negatively, from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses (“ACL”). While management uses currently available information to recognize credit losses on loans, future additions to the allowance may be necessary based on economic conditions and individual credit deterioration.
Reclassifications	Reclassifications – Reclassifications have been made to prior year amounts to conform to the current year presentation. The effect of these reclassifications were not material to the previously reported consolidated financial statements.
Cash and cash equivalents	Cash and cash equivalents – For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, other interest-bearing deposits, and federal funds sold. The Company maintains its cash in deposit accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits; however, on March 15, 2020, the Federal Reserve announced that reserve requirement ratios would be reduced to zero percent effective March 26, 2020, due to economic conditions, which eliminated the reserve requirement for all depository institutions. The reserve requirement is still at zero percent as of December 31, 2025.
Restricted cash	Restricted cash – The Company has restricted cash balances required by the Company’s credit card merchant for payment processing and card management services as well as a restricted cash held as collateral against the Company’s derivatives.
Investments	Investments Investment securities available-for-sale – U.S. Treasury securities that the Company intends to hold for an indefinite period of time, but which may be sold in response to changes in liquidity needs, interest rates, or other similar factors, are classified as available-for-sale (“AFS”). Such securities are recorded in the Company’s consolidated balance sheets at their respective fair values and increases or decreases in those values, other than credit losses, are recorded as unrealized gains or losses, respectively, and are reported as other comprehensive income (loss) in the Company’s consolidated balance sheets, rather than included in or deducted from the Company’s earnings. The Company performs a quarterly analysis of its investment securities AFS to assess and record any expected credit losses through an allowance for credit losses, limited to the amount that fair value was less than the amortized cost basis. Interest on securities classified as AFS are recorded in interest on securities in the Company’s Consolidated Statements of Income. Investment securities held-to-maturity – Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity (“HTM”) and recorded at amortized cost. Each quarter management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security's fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component is recognized through the provision for credit losses on the Company’s Consolidated Statements of Income. (See Note 2 - Investments.) Equity method investments – Ownership interests in entities for which the Company has significant influence that are not consolidated are accounted for as equity method investments. SEC Staff Announcement: Accounting for Limited Partnership Investments (codified in Accounting Standards Codification (“ASC”) 323-30-S99-1) guidance requires the use of the equity method unless the investor’s interest “is so minor that the limited partner may have virtually no influence over partnership operating and financial policies.” The SEC staff’s position is that investments in limited partnerships and limited liability companies of greater than 3% to 5% are considered more than minor and, therefore, should be accounted for using the equity method or fair value option and are not required to be consolidated. The Company concluded that, consistent with its accounting policy, the Company’s level of ownership in Business Funding Group, LLC (“BFG”) was indicative of significant influence and, as a result, the investment would be accounted for using the equity method. However, the Company elected the fair value option for its investment due to cost-benefit considerations. Pursuant to electing the fair value option, the Company measures its investment in BFG at fair value each reporting period and changes in fair value are recorded in the Consolidated Statements of Income within change in fair value on investment in BFG’ See Note 6 - Investment in Business Funding Group, LLC, for a discussion about the Company’s investment in BFG.
Investment in Federal Home Loan Bank ("FHLB") stock	Investment in Federal Home Loan Bank (“FHLB”) stock – FHLB stock investments are required based on the level of the Bank’s assets, capital and/or capital/surplus. FHLB stock is carried at cost and periodically evaluated for impairment. There is no readily determinable fair value for this stock as it has no quoted market value, it is a required investment and it is expected to be redeemed at par value. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs are jointly and severally liable for repayment of each other’s debt. Cash dividends are reported as a component of other miscellaneous income in the Consolidated Statements of Income.
Loans held for sale	Loans held-for-sale – Loans held-for-sale are carried at the lower of aggregate cost or fair value. Gains and losses are recorded in non-interest income based on the difference between sales proceeds and carrying value. While the Company sells the vast majority of the loans funded in its Strategic Programs shortly after origination, the Company may choose to retain a portion of the funded loans and/or receivables.
Loans held for investment	Loans held-for-investment – Loans held-for-investment are reported at their outstanding principal adjusted for any charge-offs, the allowance for credit losses, and deferred fees and costs. Loan origination fees, net of certain direct origination costs, if any, are deferred and recognized on an adjustment of the related loan yield using an effective-yield method over the contractual life of the loan. Interest income on loans is recognized on an accrual basis commencing in the month of origination using the interest method. Delinquency fees are recognized in income when chargeable and when collectability is reasonably assured. The Company requires most commercial loans and leases to be substantially collateralized by real estate, equipment, vehicles, accounts receivable, inventories or other tangible or intangible assets. Real estate collateral is generally in the form of first and second mortgages on various types of property. The Company also originates unsecured loans to consumers and businesses. The Company may change its intent from holding loans for investment and reclassify them as held-for-sale.
Allowance for credit losses and nonaccrual loans	Allowance for credit losses – The allowance for credit losses is calculated under the current expected credit loss (“CECL”) model for financial instruments measured at amortized cost and other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable economic forecasts of future events and circumstances. The allowance for credit losses is reported as a reduction of the amortized cost basis of loans held-for-investment, while the reserve for unfunded loan commitments is included within other liabilities on the Consolidated Balance Sheets. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates. Accrued interest receivable is excluded from the ACL calculation. The amortized cost basis of loans does not include accrued interest receivable. The provision for credit losses on the Consolidated Statements of Income is a combination of the provision for credit losses and the provision for unfunded loan commitments. ACL in accordance with CECL methodology With respect to the Bank's core portfolio which consists of SBA 7(a), local lending, retail point of sale, and equipment finance and leasing, the Bank pools similar loans that are collectively evaluated and determines an appropriate level of general allowance by portfolio segment using a non-discounted cash flow model taking into account probability of default, loss in the event of default, and prepayment speed estimates based on industry specific collected data. The model captures credit and fraud losses assumed to be credit related losses over the historical charge-off and prepayment cycle and applies those losses at a loan level over the remaining maturity of the loan. The model then calculates a historical loss rate using the average losses over the reporting period, which is then applied to each segment utilizing a standard reversion rate. With respect to the Bank's active retained Strategic Program loan portfolio, the Bank is using a methodology that compares the actual loan performance of a vintage to the worst performing loans within that vintage, known as the high-water mark. The Bank records the expected credit losses based on the high-water mark loss rate. With respect to the Bank's inactive retained Strategic Program loan portfolio, performance data at the summary level provided by the Strategic Programs is banded by credit profile and original loan term and compared to actual loan performance on a quarterly basis. The expected loss rate is supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, including but not limited to national unemployment rate forecasts. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. Also included in the ACL are qualitative factors based on the risks present for each portfolio segment. These qualitative factors include the following that are derived from the Interagency Policy Statement on Allowance for Credit Losses: changes in lending policies and procedures; changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the loan portfolio; changes in the nature and volume of the loan portfolio and in the terms of loans; changes in the experience, ability, and depth of lending management and staff; changes in the volume and severity of past due loans, nonaccrual loans, and classified or graded loans; changes in the quality of the Bank's loan review system; changes in the value of underlying collateral for loans that are not collateral-dependent; changes in the level of concentration of credit; changes in the effect of competition, legal, and regulatory requirements on the level of estimated credit losses; and, if applicable, changes in the composition and volume of the loan portfolio due to mergers, acquisitions, and other significant transactions not considered elsewhere. The Bank also considers as an additional qualitative factor any lingering "ripple" effects of the Covid-19 pandemic, including lasting changes to consumer behavior, lending, and society at large. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. When management identifies loans that do not share common risk characteristics (i.e., are not similar to other loans within a pool) they are evaluated on an individual basis. These loans are not included in the collective evaluation. For loans identified as having a likelihood of foreclosure or that the borrower is experiencing financial difficulty, a collateral- dependent approach is used. These are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient method to measure the allowance for credit losses based on the fair value of collateral. The allowance for credit losses is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The CECL methodology requires a significant amount of management judgment in determining the appropriate allowance for credit losses. Several of the steps in the methodology involve judgment and are subjective in nature including, among other things: segmenting the loan portfolio; determining the amount of loss history to consider; selecting predictive econometric regression models that use appropriate macroeconomic variables; determining the methodology to forecast prepayments; selecting the most appropriate economic forecast scenario; determining the length of the reasonable and supportable forecast and reversion periods; estimating expected utilization rates on unfunded loan commitments; and assessing relevant and appropriate qualitative factors. In addition, the CECL methodology is dependent on economic forecasts, which are inherently imprecise and will change from period to period. Although the allowance for credit losses is considered appropriate, there can be no assurance that it will be sufficient to absorb future losses. In determining an appropriate amount for the allowance, the Bank segments and aggregates the loan portfolio based on common characteristics. The following segments have been identified: Commercial Real Estate. These loans are generally secured by owner-occupied nonfarm, nonresidential properties, or by other nonfarm, nonresidential properties. Owner-occupied commercial real estate loans are typically repaid first by the cash flows generated by the underlying business. Factors that may influence a business' cash flows include, but are not limited to, demand for its products or services, quality and depth of management, degree of competition, regulatory changes, and general economic conditions. Non-owner occupied commercial real estate loans are generally considered to have a higher degree of credit risk as they may be dependent on the ongoing success and operating viability of a fewer number of tenants who are occupying the property and who may have a greater degree of exposure to economic conditions. Commercial and Industrial. These loans are generally secured by business assets such as furniture, fixtures, equipment, accounts receivable, inventory, business vehicles, and other business personal property. Commercial and industrial loans are typically repaid first by the cash flows generated by the borrower's business operations. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and resulting positive cash flows. Factors that may influence a business' profitability include, but are not limited to, demand for its products or services, quality and depth of management, degree of competition, regulatory changes, and general economic conditions. Commercial Leases. Equipment financing and leasing typically involve the use of equipment as collateral for the loan. If the borrower defaults on the loan, the Bank may need to repossess and sell the equipment to recover the outstanding debt. However, the value of the equipment may depreciate over time, or disappear, making it difficult for the Bank to recover the full amount of the lease. In equipment leasing, the residual value of the equipment is an important consideration. The residual value is the estimated value of the equipment at the end of the lease term. If the actual value of the equipment is lower than the residual value, the lessor may not be able to recover the full amount of the lease payments. Construction and Land Development. Risks common to construction loans are cost overruns, changes in market demand for property, supply chain interruption affecting construction materials, inadequate long-term financing arrangements and declines in real estate values. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values, and higher interest rates. Risks common to residential lot loans are those similar to other types of real estate construction loans, as many customers finance the purchase of improved lots in anticipation of constructing a 1 to 4 family residence. Accordingly, common risks are changes in market demand for property, supply chain interruption affecting construction materials, inadequate long-term financing arrangements and declines in real estate values. Changes in market demand for property could lead to longer marketing times resulting in higher carrying costs, declining values and higher interest rates. Consumer. These are loans to individuals for household, family, and other personal expenditures. Consumer loans generally have higher interest rates and shorter terms than residential loans but tend to have higher credit risk due to the type of collateral securing the loan or in some cases the absence of collateral. Residential Real Estate. These loans are generally secured by 1 to 4 family residential properties. The primary risk characteristics associated with residential mortgage loans typically involve: major living or lifestyle changes to the borrower, including unemployment or other loss of income; unexpected significant expenses, such as for major medical issues or catastrophic events; and divorce or death. In addition, residential mortgage loans that have adjustable rates could expose the borrower to higher debt service requirements in a rising interest rate environment. Further, real estate values could drop significantly and cause the value of the property to fall below the loan amount, creating additional potential loss exposure for the Bank. Residential Real Estate Multifamily. Risks common to multifamily loans are poor management, high vacancy rates and regulatory changes. The value of multi-family properties can be impacted by changes in the local real estate market. If property values decline, the Bank may not be able to recover the full amount of the loan if the property needs to be foreclosed. Strategic Program Loans Held-for-Investment. Unsecured consumer loans and secured or unsecured business loans issued by the Company through these programs generally follow and are limited to specific predetermined underwriting criteria. Strategic Program loans cover a wide range of borrower credit profiles, loan terms and interest rates. Strategic Program loans generally have higher interest rates and shorter terms similar to consumer loans and tend to have higher credit risk due to the type of collateral securing the loan or in most cases the absence of collateral. See Note 3 - Loans for more information about the Company’s Strategic Program loan portfolio. Certain agreements with our Strategic Program Service Providers provide for a credit enhancement, which protects the Bank by indemnifying or reimbursing incurred credit and fraud losses. The Company estimates and records a provision for expected losses for these Strategic Program loans. When the provision for the credit losses is recorded, a credit enhancement asset is also recorded on the balance sheet through non-interest income (credit enhancement income) equal to the provision for credit losses estimated for the credit enhanced loans. The credit enhancement asset is reduced when payments for the credit losses charged to the ACL are taken from the Strategic Program Service Provider’s cash reserve account created to absorb the credit losses incurred. The cash reserve account is replenished monthly from cash flows due to the Program Service provider related to the credit enhanced loans. Nonaccrual loans – The Company's policy is to place loans on a nonaccrual status when: 1) payment is in default for 90 days or more unless the loan is well secured and in the process of collection; or 2) full repayment of principal and interest is not foreseen. When a loan is placed on nonaccrual status, all accrued and uncollected interest on that loan is reversed. Past-due interest received on nonaccrual loans is not recognized in interest income but is applied as a reduction of the outstanding principal of the loan. A loan is relieved of its nonaccrual status when all principal and interest payments are brought current, the loan is well secured, and an analysis of the borrower's financial condition provides reasonable assurance that the borrower can repay the loan as scheduled.
Premises and equipment, net	Premises and equipment, net – Premises and equipment are stated at cost less accumulated depreciation. Depreciation expense, which is included in occupancy and equipment expenses, is computed using the straight-line method over the estimated useful lives of the related assets. Expenditures for new premises and equipment and major improvements are capitalized. Normal costs of maintenance and repairs are charged to expense as incurred. Gains and losses on dispositions are included in non-interest expense.
Lessor accounting - assets subject to operating leases, net	Lessor accounting - assets subject to operating leases, net – The Company leases commercial operating equipment to a variety of customers. At lease inception the Company determines if an arrangement is a lease. The equipment underlying the operating lease is reported at cost and depreciated based on their useful lives on a straight-line basis to the residual value. These residual values are reviewed annually to ensure the recorded amount does not exceed the fair market value at the lease termination. Revenue consists of the contractual lease payments and is recognized on a straight-line basis over a specified lease term. The Company also has net investments in commercial operating equipment leased to customers, which are classified as sales-type leases or direct financing leases. Investments in sales-type leases and direct financing leases are recorded on a net basis. Profit on sales-type leases is recognized at lease commencement and recorded in other miscellaneous income. Unearned income on direct financing leases is deferred, included in the net investment in the lease, and recognized over the lease term, yielding a constant periodic rate of return on the net investment in the lease. Sales from sales-type and operating leases are presented net of sales tax and other related taxes. Interest income is recognized over the lease term using the effective interest method.
Lessee accounting	Lessee accounting – The Company accounts for leases according to ASU 2016-02, Leases (Topic 842), and applies a right -of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. The Company elected to apply the package of practical expedients permitting entities to not reassess: 1) whether any expired or existing contracts are or contain leases; 2) the lease classification for any expired or existing leases; and 3) initial direct costs for any existing leases. Additionally, as provided by ASU 2016-02, the Company elected to not apply the recognition requirements of ASC 842 to short-term leases, defined as leases with a term of twelve months or less, and to recognize the lease payments in net income on short-term leases on a straight-line basis over the lease term.
Income taxes	Income taxes – Deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial statements.
Transfer of financial assets	Transfer of financial assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: 1) the assets have been isolated from the Company, 2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and 3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans held on the Company’s Consolidated Balance Sheets are classified as either held-for-investment or held-for-sale. Held-for-sale loan sales typically occur two to four days after the origination of the loans. When the Company determines that control over the transfer of financial assets has been surrendered, the transaction will be accounted for as a completed sale in which the underlying loans are derecognized and a resulting gain or loss, if any, is recorded.
SBA servicing asset, net	SBA servicing asset, net – Servicing assets are recognized as separate assets when servicing rights are acquired through sale of financial assets. For sales of SBA loans, or portions of SBA loans, with servicing retained, a portion of the cost of originating the loan is allocated to the servicing asset based on relative fair value. Fair value is based on a valuation model that calculates the present value of estimated future servicing income. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into non-interest income in proportion to, and over the period of, estimated future net servicing income of the underlying loans. The SBA servicing asset is carried at the lower of cost or market value. The SBA servicing asset is evaluated annually for impairment based on the fair value of the asset as compared to amortized cost. Capitalized servicing rights are stated separately on the consolidated balance sheet and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing fee income, which is reported in the consolidated statements of income in SBA loan servicing fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of servicing assets and changes in the valuation allowance are netted against loan servicing income.
Derivative instruments	Derivative instruments – In the normal course of business, the Company is exposed to interest rate fluctuations. Consistent with the Company’s strategy for financial risk management, the Company has established a program that utilizes interest rate swaps to offset the risks associated with the effects of this exposure. The Company utilizes cash flow hedge accounting treatment for interest rate swaps. Cash flow hedges are accounted for by recording the changes in the fair value of the derivative instrument in other comprehensive income (loss) and are recognized in the consolidated statements of income when the hedged item affects earnings. Derivative instruments are recognized on the consolidated balance sheet as other assets or other liabilities, at their respective fair values.
Stock repurchase program	Stock repurchase program – On March 7, 2024, the Company announced that its Board of Directors (the “Board”) had authorized, effective March 6, 2024, a common stock repurchase program to purchase up to 641,832 shares of the Company’s common stock in the aggregate. The repurchase program authorizes the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or privately negotiated transactions. Repurchases could also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The Share Repurchase Committee, designated by the Board of Directors, will determine the actual timing, number and value of any shares repurchased in its discretion depending on a variety of factors, including but not limited to, the market price and trading volume of the Company’s common stock, general market and economic conditions, the ongoing assessment of the Company’s capital needs, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares and may be limited or terminated at any time at the Company’s discretion without notice.
Revenue from contracts with customers	Revenue from contracts with customers – The Company applies the provisions of ASC 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of this standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The majority of our revenue-generating transactions are not subject to ASC 606, including interest generated from loans. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. Services that the Company reports as part of non-interest income are subject to ASC 606 and include fees from its deposit customers for transaction-based activities, account maintenance charges and overdraft services. Transaction-based fees, such as ACH and wire transfer fees, overdraft, return and stop payment charges, are recognized at the time such transactions are executed and the services have been fulfilled by the Company. The fees are typically withdrawn from the customer’s deposit account balance. The Company also receives fees from third-parties in its Strategic Programs for setting up systems and procedures to efficiently originate loans in a convenient, compliant and safe manner. Because the third-party simultaneously receives and benefits from the services, revenue is recognized evenly over the term of the loan program. Program fees are received monthly in connection with continuing program services provided for the Company’s Strategic Programs are recorded at the time services are provided.
Stock-based compensation	Stock-based compensation – The Company accounts for all stock-based awards to employees and non-employees, including grants of stock options and restricted stock awards, based on their respective grant date fair values. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model. The assumptions used in calculating the fair value of stock option grants represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment and include consideration of historical experience. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected volatility is based on the Company's data for the expected option term. The expected dividend yield was zero as the Company is not expected to pay dividends in the foreseeable future. Restricted stock awards are valued based on the fair value of the Company’s common stock on the date of grant. The Company expenses stock-based compensation related to stock options and restricted stock awards over the requisite service period (generally the vesting period of the equity grant) using the graded-vesting method. The Company accounts for forfeitures of stock–based awards as they occur. Stock-based compensation expense is included in salaries and employee benefits on the income statement.
Earnings per share ("EPS")	Earnings per share (“EPS”) – Basic EPS is computed by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by dividing net earnings allocated to common shareholders by the weighted average number of common shares outstanding during the period adjusted for the effect of potentially dilutive securities. Potentially dilutive securities include incremental common shares issuable upon the exercise of stock options and unvested restricted shares, that are not considered participating securities, using the treasury stock method. The Company uses the two-class method to determine EPS when participating securities are present. Unvested restricted stock awards that contain nonforfeitable rights to dividends qualify as participating securities, unless the rights were waived by the employee. For these securities, net income is allocated between common shareholders and participating securities, and EPS is calculated for both basic and diluted shares.
Comprehensive income (loss)	Comprehensive income (loss) – Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. However, certain changes in assets and liabilities, such as unrealized gains and losses on securities AFS and unrealized gains and losses on interest rate swaps designated as cash flow hedges, are reported as a separate component of equity in the accompanying consolidated balance sheets, net of income taxes, and such items, along with net income, are components of comprehensive income (loss). The Company’s policy is to release income tax effects from accumulated other comprehensive income at such time as the earnings or loss of the related activity are recognized in earnings
Off-balance sheet instruments	Off-balance sheet instruments – In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the consolidated balance sheet. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral. The Company records a reserve on its unfunded loan commitments which is included within other liabilities on the Consolidated Balance Sheets. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, including adjustments for current conditions and reasonable and supportable forecasts. Management periodically reviews and updates its assumptions for estimated funding rates.
Segment reporting	Segment reporting – As further described in Note 17 - Segments, during the third quarter of 2025, the Company implemented segment reporting following the completion of a technology initiative to capture segment-specific financial data and develop reports used by the Company’s chief operating decision maker (“CODM”) to review the Company’s financial performance and determine how to allocate resources. The Company established three reportable segments: traditional banking, banking as a service (“BaaS”) and treasury and administration. For periods prior to July 1, 2025, the Company operated under one operating segment, consistent with the information that was presented to the Company’s CODM.
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 on a retrospective basis effective January 1, 2025 and included the incremental disclosures in Note 12 - Income Taxes. Recent accounting pronouncements In November 2025, the FASB issued ASU 2025-08, “Financial instruments – Credit Losses (Topic 326): Purchased Loans,” which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under ASU 2025-08, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (purchased seasoned loans) by recognizing them at their purchase price plus an allowance for expected credit losses (gross-up approach). Purchased seasoned loans are defined as either: (1) non-PCD loans that are obtained in a business combination, or (2) non-PCD loans that (a) are obtained in an asset acquisition or upon consolidation of a variable interest entity that is not a business and (b) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination. ASU 2025-08 also introduces an accounting policy election related to the subsequent measurement of expected credit losses for entities that use a method other than a discounted cash flow analysis to estimate credit losses on purchased seasoned loans. If this accounting policy is elected, entities can use the amortized cost basis of the asset to subsequently measure their credit loss allowance. ASU 2025-08 is effective for interim and annual reporting periods beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06 “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” ASU 2025-06 eliminates the consideration of project development stages in determining whether a cost is eligible for capitalization. Instead, cost capitalization will be based on a “probable to complete” threshold. This guidance will be effective for the Company on January 1, 2028. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. 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). U.S. GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy. Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation also includes observable inputs from nonbinding single dealer quotes not corroborated by observable market data. In developing Level 3 measurements, management incorporates whatever market data might be available and uses discounted cash flow models where appropriate. These calculations include projections of future cash flows, including appropriate default and loss assumptions, and market-based discount rates. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. There were no transfers between fair value levels for the years ended December 31, 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 AFS consist of U.S. Treasury securities and are carried at fair value. The Company estimates the fair value of investment securities AFS using current active market quotes, if available, which are considered Level 1 measurements. Level 1 measurements include securities issued by the U.S. Treasury. Investment in BFG: The Company’s valuation technique utilized the average of the discounted cash flow method and the Guideline Public Company method. A 4.50% discount for non-voting shares was applied to the valuation to arrive at fair value as of December 31, 2025 and December 31, 2024. The calculation of fair value utilized significant unobservable inputs, including projected cash flows, growth rates, and discount rates. Individually evaluated loans – The loan amount above represents loans individually evaluated that have been adjusted to the lower of cost or fair value. When collateral-dependent loans are individually evaluated, they are measured using the current fair value of the collateral securing these loans, less selling costs. The fair value of real estate collateral is determined using collateral valuations or a discounted cash flow analysis using inputs such as discount rates, sale prices of similar assets, and term of expected disposition. Some appraised values are adjusted based on management’s review and analysis, which may include historical knowledge, changes in market conditions, estimated selling and other anticipated costs, and/or expertise and knowledge. The loss, if any, represents charge-offs on loans when the fair value of the collateral is less than the carrying amount of the loan.