☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Utah | 83-0356689 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
756 East Winchester, Suite 100 Murray, Utah | 84107 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.001 per share | FINW | The NASDAQ Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||
PART I. | 5 | |
Item 1. | 5 | |
5 | ||
6 | ||
7 | ||
8 | ||
9 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
| June 30, | December 31, | September 30, | December 31, | ||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||
Cash and due from banks | $ | 397 | $ | 411 | $ | 410 | $ | 411 | ||||||||
Interest-bearing deposits | 96,131 | 85,343 | 92,053 | 85,343 | ||||||||||||
Total cash and cash equivalents | 96,528 | 85,754 | 92,463 | 85,754 | ||||||||||||
Investment securities held-to-maturity, at cost | 12,463 | 11,423 | 13,925 | 11,423 | ||||||||||||
Investment in Federal Home Loan Bank (FHLB) stock, at cost | 449 | 378 | 449 | 378 | ||||||||||||
Strategic Program loans held-for-sale, at lower of cost or fair value | 31,599 | 60,748 | 43,606 | 60,748 | ||||||||||||
Loans receivable, net | 189,670 | 198,102 | 200,485 | 198,102 | ||||||||||||
Premises and equipment, net | 5,834 | 3,285 | 6,830 | 3,285 | ||||||||||||
Accrued interest receivable | 1,422 | 1,548 | 1,672 | 1,548 | ||||||||||||
Deferred taxes, net | 2,018 | 1,823 | 2,164 | 1,823 | ||||||||||||
SBA servicing asset, net | 4,586 | 3,938 | 5,269 | 3,938 | ||||||||||||
Investment in Business Funding Group (BFG), at fair value | 4,600 | 5,900 | 4,500 | 5,900 | ||||||||||||
Investment in FinWise Investments, LLC | 80 | 80 | 271 | 80 | ||||||||||||
Operating lease right-of-use (“ROU”) assets | 6,935 | 0 | 6,691 | — | ||||||||||||
Income tax receivable, net | 1,843 | 0 | ||||||||||||||
Other assets | 7,960 | 7,235 | 7,244 | 7,235 | ||||||||||||
Total assets | $ | 365,987 | $ | 380,214 | $ | 385,569 | $ | 380,214 | ||||||||
| ||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Liabilities | ||||||||||||||||
Deposits | ||||||||||||||||
Noninterest-bearing | $ | 83,490 | $ | 110,548 | $ | 97,654 | $ | 110,548 | ||||||||
Interest-bearing | 135,869 | 141,344 | 135,184 | 141,344 | ||||||||||||
Total deposits | 219,359 | 251,892 | 232,838 | 251,892 | ||||||||||||
Accrued interest payable | 34 | 48 | 30 | 48 | ||||||||||||
Income taxes payable, net | 0 | 233 | 1,066 | 233 | ||||||||||||
PPP Liquidity Facility | 376 | 1,050 | 345 | 1,050 | ||||||||||||
Operating lease liabilities | 7,393 | 0 | 7,249 | — | ||||||||||||
Other liabilities | 8,288 | 11,549 | 9,756 | 11,549 | ||||||||||||
Total liabilities | 235,450 | 264,772 | 251,284 | 264,772 | ||||||||||||
| ||||||||||||||||
Commitments and contingencies (Note 8) | ||||||||||||||||
| ||||||||||||||||
Shareholders’ equity | ||||||||||||||||
Preferred stock, $0.001 par value, 4,000,000 authorized; 0 shares issued and outstanding as of June 30, 2022 and December 31, 2021 | 0 | 0 | ||||||||||||||
Common stock, $0.001 par value, 40,000,000 shares authorized; 12,884,821 and 12,772,010 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 13 | 13 | ||||||||||||||
Preferred stock, $0.001 par value, 4,000,000 authorized; no shares issued and outstanding as of September 30, 2022 and December 31, 2021 | — | — | ||||||||||||||
Common stock, $0.001 par value, 40,000,000 shares authorized; 12,864,821 and 12,772,010 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 13 | 13 | ||||||||||||||
Additional paid-in-capital | 55,015 | 54,836 | 55,113 | 54,836 | ||||||||||||
Retained earnings | 75,509 | 60,593 | 79,159 | 60,593 | ||||||||||||
Total shareholders’ equity | 130,537 | 115,442 | 134,285 | 115,442 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 365,987 | $ | 380,214 | $ | 385,569 | $ | 380,214 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 12,864 | $ | 11,119 | $ | 26,020 | $ | 19,909 | $ | 12,481 | $ | 13,726 | $ | 38,501 | $ | 33,635 | ||||||||||||||||
Interest on securities | 44 | 6 | 83 | 12 | 52 | 7 | 135 | 19 | ||||||||||||||||||||||||
Other interest income | 105 | 10 | 133 | 20 | 290 | 16 | 423 | 36 | ||||||||||||||||||||||||
Total interest income | 13,013 | 11,135 | 26,236 | 19,941 | 12,823 | 13,749 | 39,059 | 33,690 | ||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||||||
Interest on deposits | 244 | 291 | 505 | 588 | 303 | 271 | 808 | 859 | ||||||||||||||||||||||||
Interest on PPP Liquidity Facility | 0 | 42 | 1 | 117 | 1 | 8 | 2 | 125 | ||||||||||||||||||||||||
Total interest expense | 244 | 333 | 506 | 705 | 304 | 279 | 810 | 984 | ||||||||||||||||||||||||
Net interest income | 12,769 | 10,802 | 25,730 | 19,236 | 12,519 | 13,470 | 38,249 | 32,706 | ||||||||||||||||||||||||
Provision for loan losses | 2,913 | 1,536 | 5,860 | 2,169 | 4,457 | 3,367 | 10,317 | 5,536 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 9,856 | 9,266 | 19,870 | 17,067 | 8,062 | 10,103 | 27,932 | 27,170 | ||||||||||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||||
Strategic Program fees | 6,221 | 3,942 | 12,844 | 6,895 | 5,136 | 4,982 | 17,980 | 11,877 | ||||||||||||||||||||||||
Gain on sale of loans, net | 2,412 | 2,397 | 7,464 | 5,000 | 1,923 | 2,876 | 9,387 | 7,876 | ||||||||||||||||||||||||
SBA loan servicing fees | 342 | 311 | 729 | 463 | 327 | 337 | 1,056 | 800 | ||||||||||||||||||||||||
Change in fair value on investment in BFG | (575 | ) | 1,501 | (973 | ) | 1,861 | 65 | 266 | (908 | ) | 2,127 | |||||||||||||||||||||
Other miscellaneous income | 31 | 10 | 49 | 21 | 72 | 14 | 121 | 35 | ||||||||||||||||||||||||
Total non-interest income | 8,431 | 8,161 | 20,113 | 14,240 | 7,523 | 8,475 | 27,636 | 22,715 | ||||||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 7,182 | 5,488 | 14,274 | 10,383 | 5,137 | 5,930 | 18,684 | 16,313 | ||||||||||||||||||||||||
Professional services | 1,701 | 253 | 3,845 | 762 | ||||||||||||||||||||||||||||
Occupancy and equipment expenses | 419 | 203 | 721 | 397 | 640 | 205 | 1,361 | 602 | ||||||||||||||||||||||||
(Recovery) impairment of SBA servicing asset | 1,135 | 0 | 1,076 | 0 | (127 | ) | — | 949 | — | |||||||||||||||||||||||
Other operating expenses | 2,283 | 1,388 | 3,996 | 2,962 | 1,118 | 1,010 | 3,697 | 3,463 | ||||||||||||||||||||||||
Total non-interest expense | 11,019 | 7,079 | 20,067 | 13,742 | 8,469 | 7,398 | 28,536 | 21,140 | ||||||||||||||||||||||||
Income before income tax expense | 7,268 | 10,348 | 19,916 | 17,565 | 7,116 | 11,180 | 27,032 | 28,745 | ||||||||||||||||||||||||
Provision for income taxes | 1,786 | 2,609 | 5,000 | 4,535 | 3,462 | 2,738 | 8,462 | 7,273 | ||||||||||||||||||||||||
Net income | $ | 5,482 | $ | 7,739 | $ | 14,916 | $ | 13,030 | $ | 3,654 | $ | 8,442 | $ | 18,570 | $ | 21,472 | ||||||||||||||||
Earnings per share, basic | $ | 0.43 | $ | 0.89 | $ | 1.17 | $ | 1.50 | $ | 0.28 | $ | 0.97 | $ | 1.45 | $ | 2.47 | ||||||||||||||||
Earnings per share, diluted | $ | 0.41 | $ | 0.84 | $ | 1.10 | $ | 1.45 | $ | 0.27 | $ | 0.91 | $ | 1.37 | $ | 2.36 | ||||||||||||||||
Weighted average shares outstanding, basic | 12,716,010 | 8,183,774 | 12,698,714 | 8,137,736 | 12,784,298 | 8,255,953 | 12,727,555 | 8,177,575 | ||||||||||||||||||||||||
Weighted average shares outstanding, diluted | 13,417,390 | 8,650,956 | 13,444,347 | 8,412,187 | 13,324,059 | 8,810,829 | 13,404,564 | 8,545,501 |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Additional Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | Shares | Amount | Additional Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 8,716,110 | $ | 9 | $ | 18,000 | $ | 34,301 | $ | 52,310 | |||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 8,716,110 | $ | 9 | $ | 18,274 | $ | 42,040 | $ | 60,323 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | 0 | 0 | 274 | 0 | 274 | — | — | 230 | — | 230 | ||||||||||||||||||||||||||||||
Stock options exercised | 30,000 | — | 143 | — | 143 | |||||||||||||||||||||||||||||||||||
Net Income | — | 0 | 0 | 7,739 | 7,739 | — | — | — | 8,442 | 8,442 | ||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 8,716,110 | $ | 9 | $ | 18,274 | $ | 42,040 | $ | 60,323 | |||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 8,746,110 | $ | 9 | $ | 18,647 | $ | 50,482 | $ | 69,138 |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Additional Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | Shares | Amount | Additional Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2021 | 8,660,334 | $ | 9 | $ | 16,853 | $ | 29,010 | $ | 45,872 | 8,660,334 | $ | 9 | $ | 16,853 | $ | 29,010 | $ | 45,872 | ||||||||||||||||||||||
Stock-based compensation expense | 0 | 0 | 1,255 | 0 | 1,255 | — | — | 1,485 | — | 1,485 | ||||||||||||||||||||||||||||||
Stock options exercised | 55,776 | 0 | 166 | 0 | 166 | 85,776 | — | 309 | — | 309 | ||||||||||||||||||||||||||||||
Net Income | — | 0 | 0 | 13,030 | 13,030 | — | — | — | 21,472 | 21,472 | ||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 8,716,110 | $ | 9 | $ | 18,274 | $ | 42,040 | $ | 60,323 | |||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 8,746,110 | $ | 9 | $ | 18,647 | $ | 50,482 | $ | 69,138 |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Additional Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | Shares | Amount | Additional Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 12,788,810 | $ | 13 | $ | 54,915 | $ | 70,027 | $ | 124,955 | |||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 12,884,821 | $ | 13 | $ | 55,015 | $ | 75,509 | $ | 130,537 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | 96,011 | 0 | 100 | 0 | 100 | — | — | 308 | — | 308 | ||||||||||||||||||||||||||||||
Common stock repurchased | (20,000 | ) | — | (210 | ) | (4 | ) | (214 | ) | |||||||||||||||||||||||||||||||
Net Income | — | 0 | 0 | 5,482 | 5,482 | — | — | — | 3,654 | 3,654 | ||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 12,884,821 | $ | 13 | $ | 55,015 | $ | 75,509 | $ | 130,537 | |||||||||||||||||||||||||||||||
Balance at September 30, 2022 | 12,864,821 | $ | 13 | $ | 55,113 | $ | 79,159 | $ | 134,285 |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Additional Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | Shares | Amount | Additional Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2022 | 12,772,010 | $ | 13 | $ | 54,836 | $ | 60,593 | $ | 115,442 | 12,772,010 | $ | 13 | $ | 54,836 | $ | 60,593 | $ | 115,442 | ||||||||||||||||||||||
Stock-based compensation expense | 96,011 | 0 | 139 | 0 | 139 | 96,011 | — | 447 | — | 447 | ||||||||||||||||||||||||||||||
Common stock repurchased | (20,000 | ) | — | (210 | ) | (4 | ) | (214 | ) | |||||||||||||||||||||||||||||||
Stock options exercised | 16,800 | 0 | 40 | 0 | 40 | 16,800 | — | 40 | — | 40 | ||||||||||||||||||||||||||||||
Net Income | — | 0 | 0 | 14,916 | 14,916 | — | — | — | 18,570 | 18,570 | ||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 12,884,821 | $ | 13 | $ | 55,015 | $ | 75,509 | $ | 130,537 | |||||||||||||||||||||||||||||||
Balance at September 30, 2022 | 12,864,821 | $ | 13 | $ | 55,113 | $ | 79,159 | $ | 134,285 |
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 14,916 | $ | 13,030 | $ | 18,570 | $ | 21,472 | ||||||||
Adjustments to reconcile net income to net cash from operating activities | ||||||||||||||||
Depreciation and amortization | 754 | 596 | 1,345 | 750 | ||||||||||||
Provision for loan losses | 5,860 | 2,169 | 10,317 | 5,536 | ||||||||||||
Amortization of operating lease ROU asset | 445 | 0 | 689 | — | ||||||||||||
Net amortization in securities discounts and premiums | 18 | 14 | 26 | 19 | ||||||||||||
Capitalized servicing assets | (2,243 | ) | (1,760 | ) | (3,164 | ) | (2,474 | ) | ||||||||
Gain on sale of SBA loans, net | (7,464 | ) | (5,000 | ) | (9,387 | ) | (7,876 | ) | ||||||||
Originations of Strategic Program loans held-for-sale | (4,436,343 | ) | (2,317,739 | ) | (5,863,965 | ) | (4,064,999 | ) | ||||||||
Proceeds on Strategic Program loans held-for-sale | 4,465,492 | 2,279,911 | 5,881,107 | 4,023,245 | ||||||||||||
Change in fair value of BFG | 973 | (1,861 | ) | 908 | (2,127 | ) | ||||||||||
Impairment of SBA servicing asset | 1,076 | 0 | 949 | — | ||||||||||||
Stock-based compensation expense | 139 | 1,255 | 447 | 1,485 | ||||||||||||
Deferred income tax benefit | (195 | ) | (556 | ) | (341 | ) | (1,145 | ) | ||||||||
Net changes in: | ||||||||||||||||
Accrued interest receivable | 126 | 417 | (124 | ) | 332 | |||||||||||
Accrued interest payable | (14 | ) | (111 | ) | (18 | ) | (152 | ) | ||||||||
Other assets | (725 | ) | (1,519 | ) | (9 | ) | (3,416 | ) | ||||||||
Operating lease liabilities | 13 | 0 | (131 | ) | — | |||||||||||
Other liabilities | (5,337 | ) | 5,660 | (960 | ) | 7,875 | ||||||||||
Net cash provided by (used in) operating activities | 37,491 | (25,494 | ) | 36,259 | (21,475 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Net decrease in loans receivable | 10,036 | 67,067 | 6,916 | 61,665 | ||||||||||||
Purchase of loan pools | (10,267 | ) | (6,000 | ) | ||||||||||||
Investments in FinWise Investments, LLC | (191 | ) | — | |||||||||||||
Distributions from BFG | 327 | 431 | 492 | 656 | ||||||||||||
Purchase of bank premises and equipment | (2,784 | ) | (416 | ) | (3,968 | ) | (1,448 | ) | ||||||||
Proceeds from maturities and paydowns of securities held-to-maturity | 917 | 262 | 1,413 | 381 | ||||||||||||
Purchases of securities held to maturity | (1,975 | ) | 0 | (3,941 | ) | (3,005 | ) | |||||||||
Purchase of FHLB stock | (71 | ) | (172 | ) | (71 | ) | (172 | ) | ||||||||
Net cash provided by investing activities | 6,450 | 67,172 | ||||||||||||||
Net cash (used in) provided by investing activities | (9,617 | ) | 52,077 | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Net increase (decrease) in deposits | (32,533 | ) | 34,120 | (19,054 | ) | 88,560 | ||||||||||
Common stock repurchased | (214 | ) | — | |||||||||||||
Proceeds from exercise of stock options | 40 | 166 | 40 | 309 | ||||||||||||
Proceeds from PPP Liquidity Facility | 0 | 5,558 | — | 5,558 | ||||||||||||
Repayment of PPP Liquidity Facility | (674 | ) | (89,039 | ) | (705 | ) | (104,306 | ) | ||||||||
Net cash used in financing activities | (33,167 | ) | (49,195 | ) | (19,933 | ) | (9,879 | ) | ||||||||
Net change in cash and cash equivalents | 10,774 | (7,517 | ) | 6,709 | 20,723 | |||||||||||
Cash and cash equivalents, beginning of the period | 85,754 | 47,383 | 85,754 | 47,383 | ||||||||||||
Cash and cash equivalents, end of the period | $ | 96,528 | $ | 39,866 | $ | 92,463 | $ | 68,106 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid during the period | ||||||||||||||||
Income taxes | $ | 7,257 | $ | 5,374 | $ | 7,957 | $ | 6,240 | ||||||||
Interest | $ | 520 | $ | 816 | $ | 828 | $ | 1,136 | ||||||||
Supplemental disclosures of noncash operating activities: | ||||||||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities (ASC 842 adoption effective January 1, 2022) | $ | 7,380 | $ | 0 | $ | 7,380 | $ | — |
| June 30, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||
($ in thousands) | Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 12,463 | $ | 0 | $ | (1,393 | ) | $ | 11,070 | $ | 13,925 | $ | — | $ | (1,567 | ) | $ | 12,358 |
| December 31, 2021 | |||||||||||||||
($ in thousands) | Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | ||||||||||||
Mortgage-backed securities | $ | 11,423 | $ | 23 | $ | (114 | ) | $ | 11,332 |
| June 30, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | Less than 12 months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 11,070 | $ | (1,393 | ) | $ | 0 | $ | 0 | $ | 11,070 | $ | (1,393 | ) | $ | 12,358 | $ | (1,567 | ) | $ | — | $ | — | $ | 12,358 | $ | (1,567 | ) |
| December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | Less than 12 months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 8,961 | $ | (114 | ) | $ | 0 | $ | 0 | $ | 8,961 | $ | (114 | ) | $ | 8,961 | $ | (114 | ) | $ | — | $ | — | $ | 8,961 | $ | (114 | ) |
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
($ in thousands) | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||
Due in one year or less | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Due after one year through five years | 0 | 0 | 0 | 0 | — | — | — | — | ||||||||||||||||||||||||
Due after five years through ten years | 2,328 | 2,177 | 1,541 | 1,548 | 3,205 | 3,038 | 1,541 | 1,548 | ||||||||||||||||||||||||
Due after ten years | 10,135 | 8,893 | 9,882 | 9,784 | 10,720 | 9,320 | 9,882 | 9,784 | ||||||||||||||||||||||||
Total Securities held-to-maturity | $ | 12,463 | $ | 11,070 | $ | 11,423 | $ | 11,332 | $ | 13,925 | $ | 12,358 | $ | 11,423 | $ | 11,332 |
| June 30, | December 31, | September 30, | December 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
($ in thousands) | ||||||||||||||||
SBA | $ | 124,477 | $ | 142,392 | $ | 127,455 | $ | 142,392 | ||||||||
Commercial, non-real estate | 7,847 | 3,428 | 12,970 | 3,428 | ||||||||||||
Residential real estate | 30,965 | 27,108 | 34,501 | 27,108 | ||||||||||||
Strategic Program loans | 59,066 | 85,850 | 70,290 | 85,850 | ||||||||||||
Commercial real estate | 4,722 | 2,436 | 6,149 | 2,436 | ||||||||||||
Consumer | 5,062 | 4,574 | 5,455 | 4,574 | ||||||||||||
Total loans | $ | 232,139 | $ | 265,788 | $ | 256,820 | $ | 265,788 | ||||||||
Loans held-for-sale | (31,599 | ) | (60,748 | ) | (43,606 | ) | (60,748 | ) | ||||||||
Total loans held for investment | $ | 200,540 | $ | 205,040 | $ | 213,214 | $ | 205,040 | ||||||||
Deferred loan costs (fees), net | (268 | ) | 2,917 | (761 | ) | 2,917 | ||||||||||
Allowance for loan losses | (10,602 | ) | (9,855 | ) | (11,968 | ) | (9,855 | ) | ||||||||
Net loans | $ | 189,670 | $ | 198,102 | $ | 200,485 | $ | 198,102 |
| June 30, | December 31, | September 30, | December 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
($ in thousands) | ||||||||||||||||
Retained Strategic Program loans | $ | 27,467 | $ | 25,102 | $ | 26,684 | $ | 25,102 | ||||||||
Strategic Program loans held-for-sale | 31,599 | 60,748 | 43,606 | 60,748 | ||||||||||||
Total Strategic Program loans | $ | 59,066 | $ | 85,850 | $ | 70,290 | $ | 85,850 |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | SBA | Commercial, Non-Real Estate | Residential Real Estate | Strategic Program Loans | Commercial Real Estate | Consumer | Total | SBA | Commercial, Non-Real Estate | Residential Real Estate | Strategic Program Loans | Commercial Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,064 | $ | 107 | $ | 411 | $ | 6,322 | $ | 21 | $ | 62 | $ | 9,987 | $ | 3,384 | $ | 274 | $ | 415 | $ | 6,442 | $ | 22 | $ | 65 | $ | 10,602 | ||||||||||||||||||||||||||||
Charge-offs | (102 | ) | 0 | 0 | (2,560 | ) | 0 | 0 | (2,662 | ) | (259 | ) | — | — | (3,070 | ) | — | (4 | ) | (3,333 | ) | |||||||||||||||||||||||||||||||||||
Recoveries | 48 | 1 | 0 | 315 | 0 | 0 | 364 | 9 | — | — | 233 | — | — | 242 | ||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 374 | 166 | 4 | 2,365 | 1 | 3 | 2,913 | 675 | 190 | 38 | 3,542 | 7 | 5 | 4,457 | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 3,384 | $ | 274 | $ | 415 | $ | 6,442 | $ | 22 | $ | 65 | $ | 10,602 | $ | 3,809 | $ | 464 | $ | 453 | $ | 7,147 | $ | 29 | $ | 66 | $ | 11,968 | ||||||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance collectively evaluated for impairment | $ | 3,384 | $ | 274 | $ | 415 | $ | 6,442 | $ | 22 | $ | 65 | $ | 10,602 | $ | 3,809 | $ | 464 | $ | 453 | $ | 7,147 | $ | 29 | $ | 66 | $ | 11,968 | ||||||||||||||||||||||||||||
Loans receivable | $ | 124,477 | $ | 7,847 | $ | 30,965 | $ | 27,467 | $ | 4,722 | $ | 5,062 | $ | 200,540 | $ | 127,455 | $ | 12,970 | $ | 34,501 | $ | 26,684 | $ | 6,149 | $ | 5,455 | $ | 213,214 | ||||||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 728 | 0 | 0 | 0 | 0 | 728 | 95 | — | — | — | — | 95 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance collectively evaluated for impairment | $ | 123,749 | $ | 7,847 | $ | 30,965 | $ | 27,467 | $ | 4,722 | $ | 5,062 | $ | 199,812 | $ | 127,360 | $ | 12,970 | $ | 34,501 | $ | 26,684 | $ | 6,149 | $ | 5,455 | $ | 213,119 |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | SBA | Commercial, Non-Real Estate | Residential Real Estate | Strategic Program Loans | Commercial Real Estate | Consumer | Total | SBA | Commercial, Non-Real Estate | Residential Real Estate | Strategic Program Loans | Commercial Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 2,739 | $ | 132 | $ | 352 | $ | 6,549 | $ | 21 | $ | 62 | $ | 9,855 | $ | 2,739 | $ | 132 | $ | 352 | $ | 6,549 | $ | 21 | $ | 62 | $ | 9,855 | ||||||||||||||||||||||||||||
Charge-offs | (133 | ) | 0 | 0 | (5,438 | ) | 0 | 0 | (5,571 | ) | (392 | ) | — | — | (8,508 | ) | — | (4 | ) | (8,904 | ) | |||||||||||||||||||||||||||||||||||
Recoveries | 48 | 2 | 0 | 408 | 0 | 0 | 458 | 57 | 2 | — | 641 | — | — | 700 | ||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 730 | 140 | 63 | 4,923 | 1 | 3 | 5,860 | 1,405 | 330 | 101 | 8,465 | 8 | 8 | 10,317 | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 3,384 | $ | 274 | $ | 415 | $ | 6,442 | $ | 22 | $ | 65 | $ | 10,602 | $ | 3,809 | $ | 464 | $ | 453 | $ | 7,147 | $ | 29 | $ | 66 | $ | 11,968 | ||||||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance collectively evaluated for impairment | $ | 3,384 | $ | 274 | $ | 415 | $ | 6,442 | $ | 22 | $ | 65 | $ | 10,602 | $ | 3,809 | $ | 464 | $ | 453 | $ | 7,147 | $ | 29 | $ | 66 | $ | 11,968 | ||||||||||||||||||||||||||||
Loans receivable | $ | 124,477 | $ | 7,847 | $ | 30,965 | $ | 27,467 | $ | 4,722 | $ | 5,062 | $ | 200,540 | $ | 127,455 | $ | 12,970 | $ | 34,501 | $ | 26,684 | $ | 6,149 | $ | 5,455 | $ | 213,214 | ||||||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 728 | 0 | 0 | 0 | 0 | 728 | 95 | — | — | — | — | 95 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance collectively evaluated for impairment | $ | 123,749 | $ | 7,847 | $ | 30,965 | $ | 27,467 | $ | 4,722 | $ | 5,062 | $ | 199,812 | $ | 127,360 | $ | 12,970 | $ | 34,501 | $ | 26,684 | $ | 6,149 | $ | 5,455 | $ | 213,119 |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | SBA | Commercial, Non-Real Estate | Residential Real Estate | Strategic Program Loans | Commercial Real Estate | Consumer | Total | SBA | Commercial, Non-Real Estate | Residential Real Estate | Strategic Program Loans | Commercial Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 924 | $ | 191 | $ | 855 | $ | 4,135 | $ | 19 | $ | 60 | $ | 6,184 | $ | 977 | $ | 250 | $ | 855 | $ | 5,078 | $ | 19 | $ | 60 | $ | 7,239 | ||||||||||||||||||||||||||||
Charge-offs | (47 | ) | (22 | ) | 0 | (541 | ) | 0 | (1 | ) | (611 | ) | (1 | ) | — | — | (1,105 | ) | — | — | (1,106 | ) | ||||||||||||||||||||||||||||||||||
Recoveries | 0 | 81 | 0 | 48 | 0 | 1 | 130 | 30 | 11 | — | 99 | — | — | 140 | ||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 100 | 0 | 0 | 1,436 | 0 | 0 | 1,536 | 149 | — | — | 3,218 | — | — | 3,367 | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 977 | 250 | 855 | 5,078 | 19 | 60 | 7,239 | $ | 1,155 | $ | 261 | $ | 855 | $ | 7,290 | $ | 19 | $ | 60 | $ | 9,640 | ||||||||||||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance collectively evaluated for impairment | $ | 977 | $ | 250 | $ | 855 | $ | 5,078 | $ | 19 | $ | 60 | $ | 7,239 | $ | 1,155 | $ | 261 | $ | 855 | $ | 7,290 | $ | 19 | $ | 60 | $ | 9,640 | ||||||||||||||||||||||||||||
Loans receivable | $ | 128,841 | $ | 3,627 | $ | 22,410 | $ | 12,459 | $ | 2,316 | $ | 4,624 | $ | 174,277 | $ | 125,192 | $ | 3,955 | $ | 25,105 | $ | 25,174 | $ | 2,357 | $ | 4,729 | $ | 186,512 | ||||||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 887 | 0 | 0 | 0 | 0 | 0 | 887 | 1,079 | — | — | — | — | — | 1,079 | ||||||||||||||||||||||||||||||||||||||||||
Ending balance collectively evaluated for impairment | $ | 127,954 | $ | 3,627 | $ | 22,410 | $ | 12,459 | $ | 2,316 | $ | 4,624 | $ | 173,390 | $ | 124,113 | $ | 3,955 | $ | 25,105 | $ | 25,174 | $ | 2,357 | $ | 4,729 | $ | 185,433 |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | SBA | Commercial, Non-Real Estate | Residential Real Estate | Strategic Program Loans | Commercial Real Estate | Consumer | Total | SBA | Commercial, Non-Real Estate | Residential Real Estate | Strategic Program Loans | Commercial Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 920 | $ | 232 | $ | 855 | $ | 4,111 | $ | 19 | $ | 62 | $ | 6,199 | $ | 920 | $ | 232 | $ | 855 | $ | 4,111 | $ | 19 | $ | 62 | $ | 6,199 | ||||||||||||||||||||||||||||
Charge-offs | (54 | ) | (63 | ) | 0 | (1,199 | ) | 0 | (3 | ) | (1,319 | ) | (55 | ) | (63 | ) | — | (2,304 | ) | — | (3 | ) | (2,425 | ) | ||||||||||||||||||||||||||||||||
Recoveries | 11 | 81 | 0 | 97 | 0 | 1 | 190 | 41 | 92 | — | 196 | — | 1 | 330 | ||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 100 | 0 | 0 | 2,069 | 0 | 0 | 2,169 | 249 | — | — | 5,287 | — | — | 5,536 | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 977 | $ | 250 | $ | 855 | $ | 5,078 | $ | 19 | $ | 60 | $ | 7,239 | $ | 1,155 | $ | 261 | $ | 855 | $ | 7,290 | $ | 19 | $ | 60 | $ | 9,640 | ||||||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance collectively evaluated for impairment | $ | 977 | $ | 250 | $ | 855 | $ | 5,078 | $ | 19 | $ | 60 | $ | 7,239 | $ | 1,155 | $ | 261 | $ | 855 | $ | 7,290 | $ | 19 | $ | 60 | $ | 9,640 | ||||||||||||||||||||||||||||
Loans receivable | $ | 128,841 | $ | 3,627 | $ | 22,410 | $ | 12,459 | $ | 2,316 | $ | 4,624 | $ | 174,277 | $ | 125,192 | $ | 3,955 | $ | 25,105 | $ | 25,174 | $ | 2,357 | $ | 4,729 | $ | 186,512 | ||||||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 887 | 0 | 0 | 0 | 0 | 0 | 887 | 1,079 | — | — | — | — | — | 1,079 | ||||||||||||||||||||||||||||||||||||||||||
Ending balance collectively evaluated for impairment | $ | 127,954 | $ | 3,627 | $ | 22,410 | $ | 12,459 | $ | 2,316 | $ | 4,624 | $ | 173,390 | $ | 124,113 | $ | 3,955 | $ | 25,105 | $ | 25,174 | $ | 2,357 | $ | 4,729 | $ | 185,433 |
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
| Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||||||||||||||||
SBA | $ | 728 | $ | 728 | $ | 0 | $ | 850 | $ | 43 | $ | 95 | $ | 95 | $ | — | $ | 534 | $ | 27 | ||||||||||||||||||||
Commercial, non-real estate | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential real estate | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Strategic Program loans | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial real estate | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 728 | $ | 728 | $ | 0 | $ | 850 | $ | 43 | $ | 95 | $ | 95 | $ | — | $ | 534 | $ | 27 |
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
| Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||||||||||||||||
SBA | $ | 972 | $ | 972 | $ | 0 | $ | 945 | $ | 47 | $ | 972 | $ | 972 | $ | — | $ | 945 | $ | 47 | ||||||||||||||||||||
Commercial, non-real estate | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Residential real estate | 0 | 0 | 0 | 189 | 0 | — | — | — | 189 | — | ||||||||||||||||||||||||||||||
Strategic Program loans | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Commercial real estate | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 972 | $ | 972 | $ | 0 | $ | 1,134 | $ | 47 | $ | 972 | $ | 972 | $ | — | $ | 1,134 | $ | 47 |
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due & Still Accruing | Total Past Due | Non- Accrual | Total | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due & Still Accruing | Total Past Due | Non- Accrual | Total | ||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SBA | $ | 123,844 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 633 | $ | 124,477 | $ | 127,455 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 127,455 | ||||||||||||||||||||||||||||
Commercial, non-real estate | 7,847 | 0 | 0 | 0 | 0 | 0 | 7,847 | 12,970 | — | — | — | — | — | 12,970 | ||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 30,965 | 0 | 0 | 0 | 0 | 0 | 30,965 | 34,178 | 323 | — | — | 323 | — | 34,501 | ||||||||||||||||||||||||||||||||||||||||||
Strategic Program loans | 57,133 | 991 | 770 | 172 | 1,933 | 0 | 59,066 | 67,940 | 1,281 | 815 | 254 | 2,350 | — | 70,290 | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,722 | 0 | 0 | 0 | 0 | 0 | 4,722 | 6,149 | — | — | — | — | — | 6,149 | ||||||||||||||||||||||||||||||||||||||||||
Consumer | 5,059 | 0 | 0 | 3 | 3 | 0 | 5,062 | 5,448 | — | 7 | — | 7 | — | 5,455 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 229,570 | $ | 991 | $ | 770 | $ | 175 | $ | 1,936 | $ | 633 | $ | 232,139 | $ | 254,140 | $ | 1,604 | $ | 822 | $ | 254 | $ | 2,680 | $ | — | $ | 256,820 |
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due & Still Accruing | Total Past Due | Non- Accrual | Total | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due & Still Accruing | Total Past Due | Non- Accrual | Total | ||||||||||||||||||||||||||||||||||||||||||
SBA | $ | 141,488 | $ | 247 | $ | 0 | $ | 0 | $ | 247 | $ | 657 | $ | 142,392 | $ | 141,488 | $ | 247 | $ | — | $ | — | $ | 247 | $ | 657 | $ | 142,392 | ||||||||||||||||||||||||||||
Commercial, non-real estate | 3,428 | 0 | 0 | 0 | 0 | 0 | 3,428 | 3,428 | — | — | — | — | — | 3,428 | ||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 27,108 | 0 | 0 | 0 | 0 | 0 | 27,108 | 27,108 | — | — | — | — | — | 27,108 | ||||||||||||||||||||||||||||||||||||||||||
Strategic Program loans | 84,065 | 1,041 | 690 | 54 | 1,785 | 0 | 85,850 | 84,065 | 1,041 | 690 | 54 | 1,785 | — | 85,850 | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 2,436 | 0 | 0 | 0 | 0 | 0 | 2,436 | 2,436 | — | — | — | — | — | 2,436 | ||||||||||||||||||||||||||||||||||||||||||
Consumer | 4,554 | 20 | 0 | 0 | 20 | 0 | 4,574 | 4,554 | 20 | — | — | 20 | — | 4,574 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 263,079 | $ | 1,308 | $ | 690 | $ | 54 | $ | 2,052 | $ | 657 | $ | 265,788 | $ | 263,079 | $ | 1,308 | $ | 690 | $ | 54 | $ | 2,052 | $ | 657 | $ | 265,788 |
June 30, 2022 | ||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||
($ in thousands) | Pass Grade 1-4 | Special Mention Grade 5 | Classified/ Doubtful/Loss Grade 6-8 | Total | Pass Grade 1-4 | Special Mention Grade 5 | Classified/ Doubtful/Loss Grade 6-8 | Total | ||||||||||||||||||||||||
SBA | $ | 122,338 | $ | 1,411 | $ | 728 | $ | 124,477 | $ | 125,611 | $ | 1,749 | $ | 95 | $ | 127,455 | ||||||||||||||||
Commercial, non-real estate | 7,847 | 0 | 0 | 7,847 | 12,970 | — | — | 12,970 | ||||||||||||||||||||||||
Residential real estate | 30,965 | 0 | 0 | 30,965 | 34,501 | — | — | 34,501 | ||||||||||||||||||||||||
Commercial real estate | 4,722 | 0 | 0 | 4,722 | 6,149 | — | — | 6,149 | ||||||||||||||||||||||||
Consumer | 5,062 | 0 | 0 | 5,062 | 5,455 | — | — | 5,455 | ||||||||||||||||||||||||
Not Risk Graded | ||||||||||||||||||||||||||||||||
Strategic Program loans | 59,066 | 70,290 | ||||||||||||||||||||||||||||||
Total | $ | 170,934 | $ | 1,411 | $ | 728 | $ | 232,139 | $ | 184,686 | $ | 1,749 | $ | 95 | $ | 256,820 |
December 31, 2021 | ||||||||||||||||||||||||||||||||
($ in thousands) | Pass Grade 1-4 | Special Mention Grade 5 | Classified/ Doubtful/Loss Grade 6-8 | Total | Pass Grade 1-4 | Special Mention Grade 5 | Classified/ Doubtful/Loss Grade 6-8 | Total | ||||||||||||||||||||||||
SBA | $ | 139,985 | $ | 1,435 | $ | 972 | $ | 142,392 | $ | 139,985 | $ | 1,435 | $ | 972 | $ | 142,392 | ||||||||||||||||
Commercial, non-real estate | 3,382 | 46 | 0 | 3,428 | 3,382 | 46 | — | 3,428 | ||||||||||||||||||||||||
Residential real estate | 27,108 | 0 | 0 | 27,108 | 27,108 | — | — | 27,108 | ||||||||||||||||||||||||
Commercial real estate | 2,436 | 0 | 0 | 2,436 | 2,436 | — | — | 2,436 | ||||||||||||||||||||||||
Consumer | 4,574 | 0 | 0 | 4,574 | 4,574 | — | — | 4,574 | ||||||||||||||||||||||||
Not Risk Graded | ||||||||||||||||||||||||||||||||
Strategic Program loans | 85,850 | 85,850 | ||||||||||||||||||||||||||||||
Total | $ | 177,485 | $ | 1,481 | $ | 972 | $ | 265,788 | $ | 177,485 | $ | 1,481 | $ | 972 | $ | 265,788 |
($ in thousands) | Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | Number of Contracts | Pre- Modification Outstanding Recorded Investment | Post- Modification Outstanding Recorded Investment | ||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||
SBA | 1 | $ | 95 | $ | 95 | 1 | $ | 95 | $ | 95 | ||||||||||||||
Total at June 30, 2022 | 1 | $ | 95 | $ | 95 | |||||||||||||||||||
Total at September 30, 2022 | 1 | $ | 95 | $ | 95 | |||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||
SBA | 2 | $ | 106 | $ | 106 | 2 | $ | 106 | $ | 106 | ||||||||||||||
Total at December 31, 2021 | 2 | $ | 106 | $ | 106 | 2 | $ | 106 | $ | 106 | ||||||||||||||
Non-Accrual | ||||||||||||||||||||||||
SBA | 1 | $ | 25 | $ | 25 | 1 | $ | 25 | $ | 25 |
June 30, | December 31, | September 30, | December 31, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
($ in thousands) | ||||||||||||||||
Leasehold improvements | $ | 80 | $ | 80 | $ | 36 | $ | 80 | ||||||||
Furniture, fixtures, and equipment | 3,315 | 2,219 | 3,756 | 2,219 | ||||||||||||
Construction in progress | 4,021 | 2,333 | 4,808 | 2,333 | ||||||||||||
Total premises and equipment | $ | 7,416 | $ | 4,632 | $ | 8,600 | $ | 4,632 | ||||||||
Less accumulated depreciation | (1,582 | ) | (1,347 | ) | (1,770 | ) | (1,347 | ) | ||||||||
Premises and equipment, net | $ | 5,834 | $ | 3,285 | $ | 6,830 | $ | 3,285 |
Six Months Ended December 31, 2022 | $ | 441 | ||||||
Three Months Ended December 31, 2022 | $ | 263 | ||||||
Year Ended December 31, 2023 | 850 | 850 | ||||||
Year Ended December 31, 2024 | 1,104 | 1,104 | ||||||
Year Ended December 31, 2025 | 1,086 | 1,086 | ||||||
Year Ended December 31, 2026 | 1,118 | 1,118 | ||||||
Thereafter | 3,355 | 3,355 | ||||||
Total | 7,954 | 7,776 | ||||||
Less present value discount | (561 | ) | (527 | ) | ||||
Operating lease liabilities | $ | 7,393 | $ | 7,249 |
| ||||
| ||||
Weighted-average remaining lease term – operating leases (in years) | ||||
Weighted-average discount rate – operating leases | 1.9 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2022 | 2022 | 2022 | 2022 | ||||||||||||
($ in thousands) | ||||||||||||||||
Operating cash flows from operating leases | $ | 28 | $ | 56 | $ | 178 | $ | 234 | ||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | 0 | 7,380 | — | 7,380 |
| Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | ||||||||||||
(in thousands) | ||||||||||||||||
Operating leases | ||||||||||||||||
Operating lease cost | $ | 278 | $ | 514 | $ | 278 | $ | 791 | ||||||||
Variable lease cost | 4 | 8 | 4 | 12 | ||||||||||||
Operating lease expense | 282 | 522 | 282 | 803 | ||||||||||||
Short-term lease rent expense | 28 | 28 | 9 | 38 | ||||||||||||
Net rent expense | $ | 310 | $ | 550 | $ | 291 | $ | 841 |
| June 30, | December 31, | September 30, | December 31, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
($ in thousands) | ||||||||||||||||
Demand | $ | 94,850 | $ | 115,947 | $ | 152,806 | $ | 115,947 | ||||||||
Savings | 7,462 | 6,685 | 7,252 | 6,685 | ||||||||||||
Money markets | 48,273 | 31,076 | 12,281 | 31,076 | ||||||||||||
Time certificates of deposit | 68,774 | 98,184 | 60,499 | 98,184 | ||||||||||||
Total deposits | $ | 219,359 | $ | 251,892 | $ | 232,838 | $ | 251,892 |
Year Ended December 31, 2022 | $ | 12,666 | $ | 6,448 | ||||
Year Ended December 31, 2023 | 21,269 | 18,749 | ||||||
Year Ended December 31, 2024 | 16,374 | 15,490 | ||||||
Year Ended December 31, 2025 | 9,243 | 10,047 | ||||||
Year Ended December 31, 2026 | 8,338 | 8,341 | ||||||
Thereafter | 884 | 1,424 | ||||||
Total | 68,774 | 60,499 |
| For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Beginning balance | $ | 3,938 | $ | 2,415 | $ | 4,586 | $ | 3,725 | $ | 3,938 | $ | 2,415 | ||||||||||||
Additions to servicing asset | 2,243 | 1,760 | 921 | 714 | 3,164 | 2,474 | ||||||||||||||||||
Impairment of SBA servicing asset | (1,076 | ) | 0 | |||||||||||||||||||||
Recovery (Impairment) of SBA servicing asset | 127 | — | (949 | ) | — | |||||||||||||||||||
Amortization of servicing asset | (519 | ) | (450 | ) | (365 | ) | (71 | ) | (884 | ) | (521 | ) | ||||||||||||
Ending balance | $ | 4,586 | $ | 3,725 | $ | 5,269 | $ | 4,368 | $ | 5,269 | $ | 4,368 |
| Actual | Well-Capitalized Requirement | Actual | Well-Capitalized Requirement | ||||||||||||||||||||||||||||
($ in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||
Leverage ratio (CBLR election) | $ | 82,381 | 21.4 | % | $ | 34,625 | * | 9.0 | % | $ | 85,744 | 24.9 | % | $ | 31,049 | * | 9.0 | % | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Leverage ratio (CBLR election) | $ | 65,503 | 17.7 | % | $ | 31,442 | * | 8.5 | % | $ | 65,503 | 17.7 | % | $ | 31,442 | * | 8.5 | % |
| June 30, | December 31, | September 30, | December 31, | ||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Revolving, open-end lines of credit | $ | 1,290 | $ | 1,259 | $ | 1,747 | $ | 1,259 | ||||||||
Commercial real estate | 23,830 | 15,402 | 19,563 | 15,402 | ||||||||||||
Other unused commitments | 644 | 377 | 397 | 377 | ||||||||||||
| $ | 25,764 | $ | 17,038 | $ | 21,707 | $ | 17,038 |
| For the Six Months Ended June 30, | For the Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Risk-free interest rate | 3.10 | % | 0.4% – 0.7 | % | 3.10 | % | 0.4% – 0.7 | % | ||||||||
Expected term in years | 5.5 – 6.5 | 5.0 – 7.5 | 5.5 – 6.5 | 5.0 – 7.5 | ||||||||||||
Expected volatility | 45.8% – 46.7 | % | 45.7% – 47.6 | % | 45.8% – 46.7 | % | 45.7% – 47.6 | % | ||||||||
Expected dividend yield | 0 | 0 | — | — |
| Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||||||
Outstanding at March 31, 2022 | 839,028 | $ | 4.46 | 8.0 | $ | 10,645,951 | ||||||||||||||||||||||||||
Options granted | 89,415 | 13.04 | 9.9 | 0 | ||||||||||||||||||||||||||||
Outstanding at June 30, 2022 | 925,283 | $ | 5.29 | 8.0 | $ | 4,091,633 | ||||||||||||||||||||||||||
Options forfeited | (3,160 | ) | 4.40 | — | 16,158 | (3,859 | ) | 5.62 | — | 16,359 | ||||||||||||||||||||||
Outstanding at June 30, 2022 | 925,283 | $ | 5.29 | 8.0 | $ | 4,091,633 | ||||||||||||||||||||||||||
Options vested and exercisable at June 30, 2022 | 607,608 | $ | 4.56 | 7.8 | $ | 2,898,340 | ||||||||||||||||||||||||||
Outstanding at September 30, 2022 | 921,424 | $ | 5.29 | 7.7 | $ | 3,828,066 | ||||||||||||||||||||||||||
Options vested and exercisable at September 30, 2022 | 621,378 | $ | 4.54 | 7.5 | $ | 2,789,615 |
| Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||||||
Outstanding at December 31, 2021 | 862,488 | $ | 4.41 | 8.2 | $ | 8,088,660 | 862,488 | $ | 4.41 | 8.2 | $ | 8,088,660 | ||||||||||||||||||||
Options granted | 89,415 | 13.04 | 9.9 | 0 | 89,415 | 13.04 | 9.9 | — | ||||||||||||||||||||||||
Options exercised | (16,800 | ) | 2.37 | — | 248,312 | (16,800 | ) | 2.37 | — | 248,312 | ||||||||||||||||||||||
Options forfeited | (9,820 | ) | 3.64 | — | 108,515 | (13,679 | ) | 4.20 | — | 124,874 | ||||||||||||||||||||||
Outstanding at June 30, 2022 | 925,283 | $ | 5.29 | 8.0 | $ | 4,091,633 | ||||||||||||||||||||||||||
Options vested and exercisable at June 30, 2022 | 607,608 | $ | 4.56 | 7.8 | $ | 2,898,340 | ||||||||||||||||||||||||||
Outstanding at September 30, 2022 | 921,424 | $ | 5.29 | 7.7 | $ | 3,828,066 | ||||||||||||||||||||||||||
Options vested and exercisable at September 30, 2022 | 621,378 | $ | 4.54 | 7.5 | $ | 2,789,615 |
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Pre-tax | ||||||||||||||||||||||||||||||||
Stock options | $ | 54 | $ | 75 | $ | 93 | $ | 822 | $ | 116 | $ | 61 | $ | 209 | $ | 883 | ||||||||||||||||
Restricted shares | 46 | 199 | 46 | 433 | 192 | 169 | 238 | 602 | ||||||||||||||||||||||||
Total | $ | 100 | $ | 274 | $ | 139 | $ | 1,255 | $ | 308 | $ | 230 | $ | 447 | $ | 1,485 | ||||||||||||||||
After-tax | ||||||||||||||||||||||||||||||||
Stock options | $ | 53 | $ | 32 | $ | 91 | $ | 713 | $ | 116 | $ | 44 | $ | 204 | $ | 757 | ||||||||||||||||
Restricted shares | 46 | 153 | 46 | 631 | 192 | 169 | 238 | 800 | ||||||||||||||||||||||||
Total | $ | 99 | $ | 185 | $ | 137 | $ | 1,344 | $ | 308 | $ | 213 | $ | 442 | $ | 1,557 |
| For the Six Months Ended June 30, | For the Nine Months Ended September 30, | ||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Beginning balance | $ | 5,900 | $ | 3,770 | $ | 5,900 | $ | 3,770 | ||||||||
Distributions from BFG | (327 | ) | (431 | ) | (492 | ) | (656 | ) | ||||||||
Change in fair value of BFG | (973 | ) | 1,861 | (908 | ) | 2,127 | ||||||||||
Ending balance | $ | 4,600 | $ | 5,200 | $ | 4,500 | $ | 5,241 |
| June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 96,528 | $ | 96,528 | $ | 85,754 | $ | 85,754 | 1 | $ | 92,463 | $ | 92,463 | $ | 85,754 | $ | 85,754 | ||||||||||||||||||||||
Investment securities held-to-maturity | 2 | 12,463 | 11,070 | 11,423 | 11,332 | 2 | 13,925 | 12,358 | 11,423 | 11,332 | ||||||||||||||||||||||||||||||
Investment in FHLB stock | 2 | 449 | 449 | 378 | 378 | 2 | 449 | 449 | 378 | 378 | ||||||||||||||||||||||||||||||
Loans held for investment | 3 | 189,670 | 196,654 | 198,102 | 197,412 | 3 | 200,485 | 220,055 | 198,102 | 197,412 | ||||||||||||||||||||||||||||||
Loans held-for-sale | 2 | 31,599 | 31,594 | 60,748 | 60,743 | 2 | 43,606 | 43,601 | 60,748 | 60,743 | ||||||||||||||||||||||||||||||
Accrued interest receivable | 2 | 1,422 | 1,422 | 1,548 | 1,548 | 2 | 1,672 | 1,672 | 1,548 | 1,548 | ||||||||||||||||||||||||||||||
SBA servicing asset | 2 | 4,586 | 4,586 | 3,938 | 3,938 | 2 | 5,269 | 5,269 | 3,938 | 3,938 | ||||||||||||||||||||||||||||||
Investment in BFG | 3 | 4,600 | 4,600 | 5,900 | 5,900 | 3 | 4,500 | 4,500 | 5,900 | 5,900 | ||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||
Total deposits | 2 | 219,359 | 204,221 | 251,892 | 249,488 | 2 | 232,838 | 203,469 | 251,892 | 249,488 | ||||||||||||||||||||||||||||||
Accrued interest payable | 2 | 34 | 34 | 48 | 48 | 2 | 30 | 30 | 48 | 48 | ||||||||||||||||||||||||||||||
PPP Liquidity Facility | 2 | 376 | 376 | 1,050 | 1,050 | 2 | 345 | 345 | 1,050 | 1,050 |
($ in thousands) | Fair Value Measurements Using | Fair Value Measurements Using | ||||||||||||||||||||||||||||||
Description of Financial Instrument | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||
Nonrecurring assets | ||||||||||||||||||||||||||||||||
Impaired loans | $ | 728 | $ | 0 | $ | 0 | $ | 728 | $ | 95 | $ | — | $ | — | $ | 95 | ||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Nonrecurring assets | ||||||||||||||||||||||||||||||||
Impaired loans | $ | 972 | $ | 0 | $ | 0 | $ | 972 | $ | 972 | $ | — | $ | — | $ | 972 |
($ in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||||
June 30, 2022 | ||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||
Impaired loans | $ | 728 | Market comparable | Adjustment to appraisal value | 0.38 | % | $ | 95 | Market comparable | Adjustment to appraisal value | 0.05 | % | ||||||||
| ||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Impaired loans | $ | 972 | Market comparable | Adjustment to appraisal value | 0.50 | % | $ | 972 | Market comparable | Adjustment to appraisal value | 0.50 | % |
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||
($ in thousands) | Range (Weighted Average) | Range (Weighted Average) | Range (Weighted Average) | Range (Weighted Average) | ||||||||||||
Discounted Cash Flows | ||||||||||||||||
Revenue growth rate | 14.6 | % | 16.6 | % | 14.6 | % | 16.6 | % | ||||||||
Expense growth rate | 14.3 | % | 16.3 | % | 14.3 | % | 16.3 | % | ||||||||
Discount rate | 30.0 | % | 25.0 | % | 30.0 | % | 25.0 | % | ||||||||
Guideline Public Company | ||||||||||||||||
Multiples of enterprise value | 3.0x to 5.0x | 4.0x to 6.0x | 3.0x to 4.0x | 4.0x to 6.0x |
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net income | $ | 5,482 | $ | 7,739 | $ | 14,916 | $ | 13,030 | $ | 3,654 | $ | 8,442 | $ | 18,570 | $ | 21,472 | ||||||||||||||||
Amount allocated to participating common shareholders(1) | (41 | ) | (473 | ) | (112 | ) | (838 | ) | (27 | ) | (463 | ) | (139 | ) | (1,312 | ) | ||||||||||||||||
Net income allocate to common shareholders | $ | 5,441 | $ | 7,266 | $ | 14,804 | $ | 12,192 | $ | 3,627 | $ | 7,979 | $ | 18,431 | $ | 20,160 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average shares outstanding, basic | 12,716,010 | 8,183,774 | $ | 12,698,714 | 8,137,736 | 12,784,298 | 8,255,953 | 12,727,555 | 8,177,575 | |||||||||||||||||||||||
Weighted average effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Stock options | 558,855 | 408,841 | 589,091 | 245,280 | 450,038 | 466,217 | 542,740 | 318,926 | ||||||||||||||||||||||||
Warrants | 142,525 | 58,341 | 156,542 | 29,171 | 89,723 | 88,659 | 134,269 | 49,000 | ||||||||||||||||||||||||
Weighted average shares outstanding, diluted | 13,417,390 | 8,650,956 | 13,444,347 | 8,412,187 | 13,324,059 | 8,810,829 | 13,404,564 | 8,545,501 | ||||||||||||||||||||||||
Earnings per share, basic | $ | 0.43 | $ | 0.89 | $ | 1.17 | $ | 1.50 | $ | 0.28 | $ | 0.97 | $ | 1.45 | $ | 2.47 | ||||||||||||||||
Earnings per share, diluted | $ | 0.41 | $ | 0.84 | $ | 1.10 | $ | 1.45 | $ | 0.27 | $ | 0.91 | $ | 1.37 | $ | 2.36 |
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||||||||
Interest income, not-in-scope | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 12,864 | $ | 11,119 | $ | 26,020 | $ | 19,909 | $ | 12,481 | $ | 13,726 | $ | 38,501 | $ | 33,635 | ||||||||||||||||
Interest on securities | 44 | 6 | 83 | 12 | 52 | 7 | 135 | 19 | ||||||||||||||||||||||||
Other interest income | 105 | 10 | 133 | 20 | 290 | 16 | 423 | 36 | ||||||||||||||||||||||||
Total interest income | $ | 13,013 | $ | 11,135 | $ | 26,236 | $ | 19,941 | $ | 12,823 | $ | 13,749 | $ | 39,059 | $ | 33,690 | ||||||||||||||||
Non-interest income | ||||||||||||||||||||||||||||||||
Non-interest income, in-scope | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 7 | $ | 7 | $ | 15 | $ | 13 | $ | 8 | $ | 9 | $ | 23 | $ | 22 | ||||||||||||||||
Strategic Program set up fees | 48 | 19 | 97 | 19 | 49 | 28 | 146 | 47 | ||||||||||||||||||||||||
Non-interest income, not in-scope | ||||||||||||||||||||||||||||||||
Strategic Program fees | 5,878 | 3,847 | 12,044 | 6,720 | 5,023 | 4,731 | 17,067 | 11,451 | ||||||||||||||||||||||||
Gain on sale of loans | 2,412 | 2,397 | 7,464 | 5,000 | 1,923 | 2,875 | 9,387 | 7,876 | ||||||||||||||||||||||||
SBA loan servicing fees | 342 | 311 | 729 | 463 | 327 | 337 | 1,056 | 800 | ||||||||||||||||||||||||
Change in fair value on investment in BFG | (575 | ) | 1,501 | (973 | ) | 1,861 | 65 | 266 | (908 | ) | 2,127 | |||||||||||||||||||||
Other miscellaneous income | 24 | 3 | 34 | 8 | 64 | 6 | 98 | 13 | ||||||||||||||||||||||||
Strategic Program service charges | 295 | 76 | 703 | 156 | 64 | 223 | 767 | 379 | ||||||||||||||||||||||||
Total non-interest income | $ | 8,431 | $ | 8,161 | $ | 20,113 | $ | 14,240 | $ | 7,523 | $ | 8,475 | $ | 27,636 | $ | 22,715 |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest income | $ | 13,013 | $ | 11,135 | $ | 26,236 | $ | 19,941 | ||||||||
Interest expense | (244 | ) | (333 | ) | (506 | ) | (705 | ) | ||||||||
Provision for loan losses | (2,913 | ) | (1,536 | ) | (5,860 | ) | (2,169 | ) | ||||||||
Non-interest income | 8,431 | 8,161 | 20,113 | 14,240 | ||||||||||||
Non-interest expense | (11,019 | ) | (7,079 | ) | (20,067 | ) | (13,742 | ) | ||||||||
Provision for income taxes | (1,786 | ) | (2,609 | ) | (5,000 | ) | (4,535 | ) | ||||||||
Net income | 5,482 | 7,739 | 14,916 | 13,030 |
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest income | $ | 12,823 | $ | 13,749 | $ | 39,059 | $ | 33,690 | ||||||||
Interest expense | (304 | ) | (279 | ) | (810 | ) | (984 | ) | ||||||||
Provision for loan losses | (4,457 | ) | (3,367 | ) | (10,317 | ) | (5,536 | ) | ||||||||
Non-interest income | 7,523 | 8,475 | 27,636 | 22,715 | ||||||||||||
Non-interest expense | (8,469 | ) | (7,398 | ) | (28,536 | ) | (21,140 | ) | ||||||||
Provision for income taxes | (3,462 | ) | (2,738 | ) | (8,462 | ) | (7,273 | ) | ||||||||
Net income | 3,654 | 8,442 | 18,570 | 21,472 |
| Three Months Ended June 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non- | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. central banks and other banks | $ | 82,046 | $ | 105 | 0.51 | % | $ | 49,682 | $ | 10 | 0.08 | % | $ | 59,337 | $ | 290 | 1.95 | % | $ | 54,261 | $ | 16 | 0.12 | % | ||||||||||||||||||||||||
Investment securities | 11,837 | 44 | 1.49 | % | 1,622 | 6 | 1.48 | % | 12,418 | 52 | 1.67 | % | 1,689 | 7 | 1.66 | % | ||||||||||||||||||||||||||||||||
Loans held for sale | 74,800 | 5,949 | 31.81 | % | 49,684 | 5,049 | 40.65 | % | 50,516 | 4,533 | 35.89 | % | 65,273 | 6,293 | 38.56 | % | ||||||||||||||||||||||||||||||||
Loans held for investment | 204,501 | 6,915 | 13.53 | % | 200,062 | 6,070 | 12.14 | % | 213,080 | 7,948 | 14.92 | % | 173,068 | 7,433 | 17.18 | % | ||||||||||||||||||||||||||||||||
Total interest earning assets | 373,184 | 13,013 | 13.95 | % | 301,050 | 11,135 | 14.79 | % | 335,351 | 12,823 | 15.30 | % | 294,291 | 13,749 | 18.69 | % | ||||||||||||||||||||||||||||||||
Less: ALL | (10,425 | ) | (6,334 | ) | (10,768 | ) | (8,083 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-interest earning assets | 32,558 | 13,214 | 32,626 | 18,846 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 395,317 | $ | 307,930 | $ | 357,209 | $ | 305,054 | ||||||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Demand | $ | 7,587 | $ | 27 | 1.42 | % | $ | 5,533 | $ | 13 | 0.94 | % | $ | 11,857 | $ | 113 | 3.81 | % | $ | 5,007 | $ | 11 | 0.88 | % | ||||||||||||||||||||||||
Savings | 7,430 | 1 | 0.05 | % | 8,328 | 3 | 0.14 | % | 7,514 | 1 | 0.05 | % | 8,818 | 3 | 0.14 | % | ||||||||||||||||||||||||||||||||
Money market accounts | 29,318 | 21 | 0.29 | % | 18,872 | 18 | 0.38 | % | 20,615 | 29 | 0.56 | % | 22,274 | 21 | 0.38 | % | ||||||||||||||||||||||||||||||||
Certificates of deposit | 82,870 | 195 | 0.94 | % | 57,468 | 257 | 1.79 | % | 64,789 | 160 | 0.99 | % | 76,127 | 236 | 1.24 | % | ||||||||||||||||||||||||||||||||
Total deposits | 127,205 | 244 | 0.77 | % | 90,201 | 291 | 1.29 | % | 104,775 | 303 | 1.16 | % | 112,226 | 271 | 0.97 | % | ||||||||||||||||||||||||||||||||
Other borrowings | 601 | — | 0.35 | % | 48,621 | 42 | 0.35 | % | 360 | 1 | 0.35 | % | 9,365 | 8 | 0.35 | % | ||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 127,806 | 244 | 0.76 | % | 138,822 | 333 | 0.96 | % | 105,135 | 304 | 1.16 | % | 121,591 | 279 | 0.92 | % | ||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 120,359 | 105,459 | 102,575 | 107,342 | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing liabilities | 19,429 | 9,464 | 17,542 | 13,076 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 127,723 | 54,185 | 131,957 | 63,045 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 395,317 | $ | 307,930 | $ | 357,209 | $ | 305,054 | ||||||||||||||||||||||||||||||||||||||||
Net interest income and interest rate spread | $ | 12,769 | 13.19 | % | $ | 10,802 | 13.83 | % | $ | 12,519 | 14.14 | % | $ | 13,470 | 17.77 | % | ||||||||||||||||||||||||||||||||
Net interest margin | 13.69 | % | 14.35 | % | 14.93 | % | 18.31 | % | ||||||||||||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to average interest- bearing liabilities | 291.99 | % | 216.86 | % | 318.97 | % | 242.03 | % |
| Six Months Ended June 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non- | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. central banks and other banks | $ | 80,962 | $ | 133 | 0.33 | % | $ | 48,291 | $ | 20 | 0.08 | % | $ | 73,674 | $ | 423 | 0.77 | % | $ | 50,303 | $ | 36 | 0.10 | % | ||||||||||||||||||||||||
Investment securities | 11,552 | 83 | 1.44 | % | 1,685 | 12 | 1.42 | % | 11,844 | 135 | 1.52 | % | 1,687 | 19 | 1.50 | % | ||||||||||||||||||||||||||||||||
Loans held for sale | 84,650 | 12,714 | 30.04 | % | 42,556 | 8,615 | 40.49 | % | 73,147 | 17,247 | 31.44 | % | 50,212 | 14,908 | 39.59 | % | ||||||||||||||||||||||||||||||||
Loans held for investment | 203,282 | 13,306 | 13.09 | % | 211,830 | 11,294 | 10.66 | % | 206,577 | 21,254 | 13.72 | % | 198,766 | 18,727 | 12.56 | % | ||||||||||||||||||||||||||||||||
Total interest earning assets | 380,446 | 26,236 | 13.79 | % | 304,362 | 19,941 | 13.10 | % | 365,242 | 39,059 | 14.26 | % | 300,968 | 33,690 | 14.93 | % | ||||||||||||||||||||||||||||||||
Less: ALL | (10,391 | ) | (6,311 | ) | (10,517 | ) | (6,908 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-interest earning assets | 28,874 | 12,302 | 29,732 | 14,522 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 398,929 | $ | 310,353 | $ | 384,457 | $ | 308,582 | ||||||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Demand | $ | 6,969 | $ | 41 | 1.18 | % | $ | 5,908 | $ | 27 | 0.91 | % | $ | 8,616 | $ | 155 | 2.40 | % | $ | 5,604 | $ | 38 | 0.90 | % | ||||||||||||||||||||||||
Savings | 7,056 | 2 | 0.06 | % | 7,594 | 6 | 0.16 | % | 7,211 | 3 | 0.06 | % | 8,006 | 9 | 0.15 | % | ||||||||||||||||||||||||||||||||
Money market accounts | 30,596 | 43 | 0.28 | % | 18,303 | 34 | 0.37 | % | 29,742 | 71 | 0.32 | % | 19,641 | 55 | 0.37 | % | ||||||||||||||||||||||||||||||||
Certificates of deposit | 85,235 | 419 | 0.98 | % | 54,196 | 521 | 1.92 | % | 75,836 | 579 | 1.02 | % | 61,587 | 757 | 1.64 | % | ||||||||||||||||||||||||||||||||
Total deposits | 129,856 | 505 | 0.78 | % | 86,001 | 588 | 1.37 | % | 121,405 | 808 | 0.89 | % | 94,838 | 859 | 1.21 | % | ||||||||||||||||||||||||||||||||
Other borrowings | 792 | 1 | 0.35 | % | 67,837 | 117 | 0.35 | % | 646 | 2 | 0.35 | % | 48,133 | 125 | 0.35 | % | ||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 130,648 | 506 | 0.77 | % | 153,838 | 705 | 0.92 | % | 122,051 | 810 | 0.88 | % | 142,971 | 984 | 0.92 | % | ||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 129,014 | 97,330 | 120,102 | 100,704 | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing liabilities | 15,630 | 8,032 | 15,857 | 9,732 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 123,637 | 51,153 | 126,447 | 55,175 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 398,929 | $ | 310,353 | $ | 384,457 | $ | 308,582 | ||||||||||||||||||||||||||||||||||||||||
Net interest income and interest rate spread | $ | 25,730 | 13.02 | % | $ | 19,236 | 12.18 | % | $ | 38,249 | 13.38 | % | $ | 32,706 | 14.01 | % | ||||||||||||||||||||||||||||||||
Net interest margin | 13.53 | % | 12.64 | % | 13.96 | % | 14.49 | % | ||||||||||||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to average interest- bearing liabilities | 291.20 | % | 197.85 | % | 299.25 | % | 210.51 | % |
($ in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 vs 2021 | 2022 vs 2021 | 2022 vs 2021 | 2022 vs 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) Due to Change in: | Increase (Decrease) Due to Change in: | Increase (Decrease) Due to Change in: | Increase (Decrease) Due to Change in: | |||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Rate | Volume | Total | Rate | Volume | Total | Rate | Volume | Total | Rate | Volume | Total | ||||||||||||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 85 | $ | 10 | $ | 95 | $ | 92 | $ | 21 | $ | 113 | $ | 272 | $ | 2 | $ | 274 | $ | 363 | $ | 24 | $ | 387 | ||||||||||||||||||||||||
Investment securities | — | 38 | 38 | — | 71 | 71 | — | 45 | 45 | — | 116 | 116 | ||||||||||||||||||||||||||||||||||||
Loans held-for-sale | (679 | ) | 1,579 | 900 | (1,447 | ) | 5,546 | 4,099 | (413 | ) | (1,347 | ) | (1,760 | ) | (1,919 | ) | 4,258 | 2,339 | ||||||||||||||||||||||||||||||
Loans held for investment | 708 | 137 | 845 | 2,445 | (433 | ) | 2,012 | (679 | ) | 1,194 | 515 | 1,771 | 756 | 2,527 | ||||||||||||||||||||||||||||||||||
Total interest income | 114 | 1,764 | 1,878 | 1,090 | 5,205 | 6,295 | (820 | ) | (106 | ) | (926 | ) | 215 | 5,154 | 5,369 | |||||||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||||||||||||||||||
Demand | 8 | 6 | 14 | 9 | 5 | 14 | 72 | 30 | 102 | 88 | 29 | 117 | ||||||||||||||||||||||||||||||||||||
Savings | (2 | ) | — | (2 | ) | (4 | ) | — | (4 | ) | (2 | ) | — | (2 | ) | (5 | ) | (1 | ) | (6 | ) | |||||||||||||||||||||||||||
Money market accounts | (2 | ) | 5 | 3 | (5 | ) | 14 | 9 | 9 | (1 | ) | 8 | (6 | ) | 22 | 16 | ||||||||||||||||||||||||||||||||
Certificates of deposit | (924 | ) | 862 | (62 | ) | 593 | (695 | ) | (102 | ) | (44 | ) | (32 | ) | (76 | ) | (457 | ) | 279 | (178 | ) | |||||||||||||||||||||||||||
Other borrowings | — | (42 | ) | (42 | ) | — | (116 | ) | (116 | ) | — | (7 | ) | (7 | ) | — | (123 | ) | (123 | ) | ||||||||||||||||||||||||||||
Total interest bearing liabilities | (920 | ) | 831 | (89 | ) | 593 | (792 | ) | (199 | ) | 35 | (10 | ) | 25 | (380 | ) | 206 | (174 | ) | |||||||||||||||||||||||||||||
Change in net interest income | $ | 1,034 | $ | 933 | $ | 1,967 | $ | 497 | $ | 5,997 | $ | 6,494 | $ | (855 | ) | $ | (96 | ) | $ | (951 | ) | $ | 595 | $ | 4,948 | $ | 5,543 |
| For the Three Months Ended June 30, | Change | For the Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | ||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||
Strategic Program fees | $ | 6,221 | $ | 3,942 | $ | 2,279 | 57.8 | % | $ | 5,136 | $ | 4,982 | $ | 154 | 3.1 | % | ||||||||||||||||
Gain on sale of loans | 2,412 | 2,397 | 15 | 0.6 | % | 1,923 | 2,876 | (953 | ) | (33.1 | %) | |||||||||||||||||||||
SBA loan servicing fees | 342 | 311 | 31 | 10.0 | % | 327 | 337 | (10 | ) | (3.0 | %) | |||||||||||||||||||||
Change in fair value on investment in BFG | (575 | ) | 1,501 | (2,076 | ) | (138.3 | %) | 65 | 266 | (201 | ) | (75.6 | %) | |||||||||||||||||||
Other miscellaneous income | 31 | 10 | 21 | 210.0 | % | 72 | 14 | 58 | 414.3 | % | ||||||||||||||||||||||
Total noninterest income | $ | 8,431 | $ | 8,161 | $ | 270 | 3.3 | % | $ | 7,523 | $ | 8,475 | $ | (952 | ) | (11.2 | %) |
| For the Six Months Ended June 30, | Change | For the Nine Months Ended September 30, | Change | ||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | ||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||
Strategic Program fees | $ | 12,844 | $ | 6,895 | $ | 5,949 | 86.3 | % | $ | 17,980 | $ | 11,877 | $ | 6,103 | 51.4 | % | ||||||||||||||||
Gain on sale of loans | 7,464 | 5,000 | 2,464 | 49.3 | % | 9,387 | 7,876 | 1,511 | 19.2 | % | ||||||||||||||||||||||
SBA loan servicing fees | 729 | 463 | 266 | 57.4 | % | 1,056 | 800 | 256 | 32.0 | % | ||||||||||||||||||||||
Change in fair value on investment in BFG | (973 | ) | 1,861 | (2,834 | ) | (152.3 | %) | (908 | ) | 2,127 | (3,035 | ) | (142.7 | %) | ||||||||||||||||||
Other miscellaneous income | 49 | 21 | 28 | 133.5 | % | 121 | 35 | 86 | 245.7 | % | ||||||||||||||||||||||
Total noninterest income | $ | 20,113 | $ | 14,240 | $ | 5,873 | 41.2 | % | $ | 27,636 | $ | 22,715 | $ | 4,921 | 21.7 | % |
($ in thousands) | For the Three Months Ended June 30, | Change | For the Three Months Ended September 30, | Change | ||||||||||||||||||||||||||||
| 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | ||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 7,182 | $ | 5,488 | $ | 1,694 | 30.9 | % | $ | 5,137 | $ | 5,930 | $ | (793 | ) | (13.4 | %) | |||||||||||||||
Professional Services | 1,701 | 253 | 1,448 | 572.3 | % | |||||||||||||||||||||||||||
Occupancy and equipment expenses | 419 | 203 | 216 | 106.4 | % | 640 | 205 | 435 | 212.2 | % | ||||||||||||||||||||||
Impairment of SBA servicing asset | 1,135 | — | 1,135 | 100.0 | % | |||||||||||||||||||||||||||
(Recovery) impairment of SBA servicing asset | (127 | ) | — | (127 | ) | (100.0 | %) | |||||||||||||||||||||||||
Other operating expenses | 2,283 | 1,388 | 895 | 64.5 | % | 1,118 | 1,010 | 108 | 10.7 | % | ||||||||||||||||||||||
Total noninterest expense | $ | 11,019 | $ | 7,079 | $ | 3,940 | 55.7 | % | $ | 8,469 | $ | 7,398 | $ | 1,071 | 14.5 | % |
($ in thousands) | For the Nine Months Ended September 30, | Change | ||||||||||||||
| 2022 | 2021 | $ | % | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | $ | 18,684 | $ | 16,313 | $ | 2,371 | 14.5 | % | ||||||||
Professional Services | 3,845 | 762 | 3,083 | 404.6 | % | |||||||||||
Occupancy and equipment expenses | 1,361 | 602 | 759 | 126.1 | % | |||||||||||
(Recovery) impairment of SBA servicing asset | 949 | — | 949 | 100.0 | % | |||||||||||
Other operating expenses | 3,697 | 3,463 | 234 | 6.8 | % | |||||||||||
Total noninterest expense | $ | 28,536 | $ | 21,140 | $ | 7,396 | 35.0 | % |
($ in thousands) | For the Six Months Ended June 30, | Change | ||||||||||||||
| 2022 | 2021 | $ | % | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | $ | 14,274 | $ | 10,383 | $ | 3,891 | 37.5 | % | ||||||||
Occupancy and equipment expenses | 721 | 397 | 324 | 81.5 | % | |||||||||||
Impairment of SBA servicing asset | 1,076 | — | 1,076 | 100.0 | % | |||||||||||
Other operating expenses | 3,996 | 2,962 | 1,034 | 34.9 | % | |||||||||||
Total noninterest expense | $ | 20,067 | $ | 13,742 | $ | 6,325 | 46.0 | % |
| As of June 30, 2022 | As of December 31, 2021 | As of September 30, 2022 | As of December 31, 2021 | ||||||||||||||||||||||||||||||||
| Amount | % of total loans | Amount | % of total loans | Amount | % of total loans | Amount | % of total loans | ||||||||||||||||||||||||||||
SBA(1) | $ | 124,477 | 53.6 | % | $ | 142,392 | 53.6 | % | $ | 127,455 | 49.6 | % | $ | 142,392 | 53.6 | % | ||||||||||||||||||||
Commercial, non real estate | 7,847 | 3.4 | % | 3,428 | 1.3 | % | 12,970 | 5.1 | % | 3,428 | 1.3 | % | ||||||||||||||||||||||||
Residential real estate | 30,965 | 13.3 | % | 27,108 | 10.2 | % | 34,501 | 13.4 | % | 27,108 | 10.2 | % | ||||||||||||||||||||||||
Strategic Program loans | 59,066 | 25.5 | % | 85,850 | 32.3 | % | 70,290 | 27.4 | % | 85,850 | 32.3 | % | ||||||||||||||||||||||||
Commercial real estate | 4,722 | 2.0 | % | 2,436 | 0.9 | % | 6,149 | 2.4 | % | 2,436 | 0.9 | % | ||||||||||||||||||||||||
Consumer | 5,062 | 2.2 | % | 4,574 | 1.7 | % | 5,455 | 2.1 | % | 4,574 | 1.7 | % | ||||||||||||||||||||||||
Total | $ | 232,139 | 100.0 | % | $ | 265,788 | 100.0 | % | $ | 256,820 | 100.0 | % | $ | 265,788 | 100.0 | % |
At June 30, 2022 | Remaining Contractual Maturity Held for Investment | |||||||||||||||||||||||||||||||||||||||||
At September 30, 2022 | Remaining Contractual Maturity Held for Investment | |||||||||||||||||||||||||||||||||||||||||
($ in thousands) | One Year or Less | After One Year and Through Five Years | After Five Years and Through Fifteen Years | After Fifteen Years | Total | One Year or Less | After One Year and Through Five Years | After Five Years and Through Fifteen Years | After Fifteen Years | Total | ||||||||||||||||||||||||||||||||
Fixed rate loans: | ||||||||||||||||||||||||||||||||||||||||||
SBA(1) | $ | 322 | $ | 692 | $ | 246 | $ | 107 | $ | 1,367 | $ | 268 | $ | 411 | $ | — | $ | — | $ | 679 | ||||||||||||||||||||||
Commercial, non-real estate | 2,044 | 5,493 | 286 | 24 | 7,847 | 3,166 | 9,214 | 570 | 20 | 12,970 | ||||||||||||||||||||||||||||||||
Residential real estate | 3,909 | 1,850 | — | — | 5,759 | 3,907 | 1,939 | 49 | 4 | 5,899 | ||||||||||||||||||||||||||||||||
Strategic Program loans | 17,830 | 9,636 | 1 | — | 27,467 | 18,027 | 8,657 | — | — | 26,684 | ||||||||||||||||||||||||||||||||
Commercial real estate | 1,732 | 377 | 10 | — | 2,119 | 1,662 | 1,224 | 22 | 31 | 2,939 | ||||||||||||||||||||||||||||||||
Consumer | 1,601 | 3,084 | 64 | — | 4,749 | 1,704 | 3,270 | 74 | — | 5,048 | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||
Variable rate loans: | ||||||||||||||||||||||||||||||||||||||||||
SBA | 7,887 | 30,031 | 51,927 | 33,265 | 123,110 | 7,800 | 29,590 | 52,831 | 36,555 | 126,776 | ||||||||||||||||||||||||||||||||
Commercial, non-real estate | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Residential real estate | 24,723 | 291 | 192 | — | 25,206 | 27,664 | 501 | 437 | — | 28,602 | ||||||||||||||||||||||||||||||||
Strategic Program loans | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Commercial real estate | 1,441 | 533 | 629 | — | 2,603 | 643 | 1,181 | 1,386 | — | 3,210 | ||||||||||||||||||||||||||||||||
Consumer | 83 | 230 | — | — | 313 | 101 | 306 | — | — | 407 | ||||||||||||||||||||||||||||||||
Total | $ | 61,572 | $ | 52,217 | $ | 53,355 | $ | 33,396 | $ | 200,540 | $ | 64,942 | $ | 56,293 | $ | 55,369 | $ | 36,610 | $ | 213,214 |
At December 31, 2021 | Remaining Contractual Maturity Held for Investment | ||||||||||||||||||||
($ in thousands) | One Year or Less | After One Year and Through Five Years | After Five Years and Through Fifteen Years | After Fifteen Years | Total | ||||||||||||||||
Fixed rate loans: | |||||||||||||||||||||
SBA(1) | $ | 644 | $ | 732 | $ | 259 | $ | 114 | $ | 1,749 | |||||||||||
Commercial, non-real estate | 1,168 | 2,112 | 142 | 6 | 3,428 | ||||||||||||||||
Residential real estate | 2,876 | 1,519 | — | — | 4,395 | ||||||||||||||||
Strategic Program loans | 18,121 | 6,981 | — | — | 25,102 | ||||||||||||||||
Commercial real estate | 1,565 | 639 | 7 | 1 | 2,212 | ||||||||||||||||
Consumer | 1,500 | 2,793 | 66 | — | 4,359 | ||||||||||||||||
| |||||||||||||||||||||
Variable rate loans: | |||||||||||||||||||||
SBA | 7,920 | 31,598 | 58,493 | 42,632 | 140,643 | ||||||||||||||||
Commercial, non-real estate | — | — | — | — | — | ||||||||||||||||
Residential real estate | 22,234 | 291 | 188 | — | 22,713 | ||||||||||||||||
Strategic Program loans | — | — | — | — | — | ||||||||||||||||
Commercial real estate | 224 | — | — | — | 224 | ||||||||||||||||
Consumer | 62 | 153 | — | — | 215 | ||||||||||||||||
Total | $ | 56,314 | $ | 46,818 | $ | 59,155 | $ | 42,753 | $ | 205,040 |
| As of | |||||||
($ in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Nonaccrual loans: | ||||||||
SBA | $ | 633 | $ | 657 | ||||
Commercial, non real estate | — | — | ||||||
Residential real estate | — | — | ||||||
Strategic Program loans | — | — | ||||||
Total nonperforming loans | $ | 633 | $ | 657 | ||||
| ||||||||
Total accruing loans past due 90 days or more | $ | 175 | $ | 54 | ||||
Nonaccrual troubled debt restructuring | $ | — | $ | 25 | ||||
Total troubled debt restructurings | 95 | 106 | ||||||
Other Real Estate Owned | — | — | ||||||
Less nonaccrual troubled debt restructurings | — | (25 | ) | |||||
Total nonperforming assets and troubled debt restructurings | $ | 728 | $ | 763 | ||||
Total nonperforming loans to total loans | 0.3 | % | 0.2 | % | ||||
Total nonperforming loans to total assets | 0.2 | % | 0.2 | % | ||||
Total nonperforming assets and troubled debt restructurings to total loans | 0.3 | % | 0.3 | % | ||||
Total nonperforming assets and troubled debt restructurings to total assets | 0.2 | % | 0.2 | % | ||||
Total nonperforming assets and troubled debt restructurings to total assets (less PPP loans) (1) | 0.2 | % | 0.2 | % |
| As of | |||||||
($ in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Nonaccrual loans: | ||||||||
SBA | $ | — | $ | 657 | ||||
Commercial, non real estate | — | — | ||||||
Residential real estate | — | — | ||||||
Strategic Program loans | — | — | ||||||
Total nonperforming loans | $ | — | $ | 657 | ||||
| ||||||||
Total accruing loans past due 90 days or more | $ | 254 | $ | 54 | ||||
Nonaccrual troubled debt restructuring | $ | — | $ | 25 | ||||
Total troubled debt restructurings | 95 | 106 | ||||||
Other Real Estate Owned | — | — | ||||||
Less nonaccrual troubled debt restructurings | — | (25 | ) | |||||
Total nonperforming assets and troubled debt restructurings | $ | 95 | $ | 763 | ||||
Total nonperforming loans to total loans | 0.0 | % | 0.2 | % | ||||
Total nonperforming loans to total assets | 0.0 | % | 0.2 | % | ||||
Total nonperforming assets and troubled debt restructurings to total loans | 0.0 | % | 0.3 | % | ||||
Total nonperforming assets and troubled debt restructurings to total assets | 0.0 | % | 0.2 | % |
| As of June 30, 2022 | As of September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
($ in thousands) | Pass Grade 1-4 | Special Mention Grade 5 | Classified/ Doubtful Grade 6-7 | Loss Grade 8 | Total | Pass Grade 1-4 | Special Mention Grade 5 | Classified/ Doubtful Grade 6-7 | Loss Grade 8 | Total | ||||||||||||||||||||||||||||||
SBA | $ | 122,338 | $ | 1,411 | $ | 728 | $ | — | $ | 124,477 | $ | 125,611 | $ | 1,749 | $ | 95 | $ | — | $ | 127,455 | ||||||||||||||||||||
Commercial, non real estate | 7,847 | — | — | — | 7,847 | 12,970 | — | — | — | 12,970 | ||||||||||||||||||||||||||||||
Residential real estate | 30,965 | — | — | — | 30,965 | 34,501 | — | — | — | 34,501 | ||||||||||||||||||||||||||||||
Commercial real estate | 4,722 | — | — | — | 4,722 | 6,149 | — | — | — | 6,149 | ||||||||||||||||||||||||||||||
Consumer | 5,062 | — | — | — | 5,062 | 5,455 | — | — | — | 5,455 | ||||||||||||||||||||||||||||||
Not Risk Graded | ||||||||||||||||||||||||||||||||||||||||
Strategic Program loans(1) | 59,066 | 70,290 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 170,934 | $ | 1,411 | $ | 728 | $ | — | $ | 232,139 | $ | 184,686 | $ | 1,749 | $ | 95 | $ | — | $ | 256,820 |
| As of December 31, 2021 | |||||||||||||||||||
($ in thousands) | Pass Grade 1-4 | Special Mention Grade 5 | Classified/ Doubtful Grade 6-7 | Loss Grade 8 | Total | |||||||||||||||
SBA | $ | 139,985 | $ | 1,435 | $ | 972 | $ | — | $ | 142,392 | ||||||||||
Commercial, non real estate | 3,382 | 46 | — | — | 3,428 | |||||||||||||||
Residential real estate | 27,108 | — | — | — | 27,108 | |||||||||||||||
Commercial real estate | 2,436 | — | — | — | 2,436 | |||||||||||||||
Consumer | 4,574 | — | — | — | 4,574 | |||||||||||||||
Not Risk Graded | ||||||||||||||||||||
Strategic Program loans(1) | 85,850 | |||||||||||||||||||
Total | $ | 177,485 | $ | 1,481 | $ | 972 | $ | — | $ | 265,788 |
● | Specific allowance for identified impaired loans. For such loans that are identified as impaired, an allowance is established when the discounted cash flows (or collateral value if the loan is collateral dependent) or observable market price of the impaired loan are lower than the carrying value of that loan. |
Independent appraisals are obtained for all collateral dependent loans deemed impaired when collateral value is expected to exceed $5 thousand net of actual and/or anticipated liquidation-related expenses. After initially measured for impairment, new appraisals are ordered on at least an annual basis for all real estate secured loans deemed impaired. Non-real estate secured loan appraisal values are reevaluated and assessed throughout the year based upon interim changes in collateral and market conditions. |
● | General valuation allowance. This component represents a valuation allowance on the remainder of the loan portfolio, after excluding impaired loans. For this portion of the allowance, loans are reviewed based on industry, stage and structure and are assigned allowance percentages based on historical loan loss experience for similar loans with similar characteristics and trends adjusted for qualitative factors. Qualitative factors that, in management’s judgment, affect the collectability of the portfolio as of the evaluation date, may include changes in lending policies and procedures; changes in national and local economic and business conditions, including the condition of various market sectors; changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and staff; changes in the volume and severity of past due and classified loans and in the volume of nonaccruals, troubled debt restructurings, and other loan modifications; the existence and effect of any concentrations of credit and changes in the level of such concentrations; and the effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated and inherent credit losses in our current portfolio. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 9,987 | $ | 6,184 | $ | 9,855 | $ | 6,199 | $ | 10,602 | $ | 7,239 | $ | 9,855 | $ | 6,199 | ||||||||||||||||
Provision for loan losses | 2,913 | 1,536 | 5,860 | 2,169 | 4,457 | 3,367 | 10,317 | 5,536 | ||||||||||||||||||||||||
Charge offs | ||||||||||||||||||||||||||||||||
SBA | (102 | ) | (47 | ) | (133 | ) | (54 | ) | (259 | ) | (1 | ) | (392 | ) | (55 | ) | ||||||||||||||||
Commercial, non-real estate | — | (22 | ) | — | (63 | ) | — | — | — | (63 | ) | |||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Strategic Program loans | (2,560 | ) | (541 | ) | (5,438 | ) | (1,199 | ) | (3,070 | ) | (1,105 | ) | (8,508 | ) | (2,304 | ) | ||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Consumer | — | (1 | ) | — | (3 | ) | (4 | ) | — | (4 | ) | (3 | ) | |||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||
SBA | 48 | — | 48 | 11 | 9 | 30 | 57 | 41 | ||||||||||||||||||||||||
Commercial, non-real estate | 1 | 81 | 2 | 81 | — | 11 | 2 | 92 | ||||||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Strategic Program loans | 315 | 48 | 408 | 97 | 233 | 99 | 641 | 196 | ||||||||||||||||||||||||
Commercial real estate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Consumer | — | 1 | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||
Ending balance | 10,602 | 7,239 | 10,602 | 7,239 | 11,968 | 9,640 | 11,968 | 9,640 |
| June 30, 2022 | September 30, 2022 | ||||||||||||||||||||||||||||||
($ in thousands) | Amount | Total Loans | % of Total Allowance | % of Loans in Category of Total Loans | Amount | Total Loans | % of Total Allowance | % of Loans in Category of Total Loans | ||||||||||||||||||||||||
SBA | $ | 3,384 | $ | 124,477 | 31.9 | % | 53.6 | % | $ | 3,809 | $ | 127,455 | 31.8 | % | 49.6 | % | ||||||||||||||||
Commercial, non real estate | 274 | 7,847 | 2.6 | % | 3.4 | % | 464 | 12,970 | 3.9 | % | 5.1 | % | ||||||||||||||||||||
Residential real estate | 415 | 30,965 | 3.9 | % | 13.3 | % | 453 | 34,501 | 3.8 | % | 13.4 | % | ||||||||||||||||||||
Strategic Program loans | 6,442 | 59,066 | 60.8 | % | 25.5 | % | 7,147 | 70,290 | 59.7 | % | 27.4 | % | ||||||||||||||||||||
Commercial real estate | 22 | 4,722 | 0.2 | % | 2.0 | % | 29 | 6,149 | 0.2 | % | 2.4 | % | ||||||||||||||||||||
Consumer | 65 | 5,062 | 0.6 | % | 2.2 | % | 66 | 5,455 | 0.6 | % | 2.1 | % | ||||||||||||||||||||
Total | $ | 10,602 | $ | 232,139 | 100.0 | % | 100.0 | % | $ | 11,968 | $ | 256,820 | 100.0 | % | 100.0 | % |
| December 31, 2021 | |||||||||||||||
($ in thousands) | Amount | Total Loans | % of Total Allowance | % of Loans in Category of Total Loans | ||||||||||||
SBA | $ | 2,739 | $ | 142,392 | 27.8 | % | 53.6 | % | ||||||||
Commercial, non real estate | 132 | 3,428 | 1.3 | % | 1.3 | % | ||||||||||
Residential real estate | 352 | 27,108 | 3.6 | % | 10.2 | % | ||||||||||
Strategic Program loans | 6,549 | 85,850 | 66.5 | % | 32.3 | % | ||||||||||
Commercial real estate | 21 | 2,436 | 0.2 | % | 0.9 | % | ||||||||||
Consumer | 62 | 4,574 | 0.6 | % | 1.7 | % | ||||||||||
Total | $ | 9,855 | $ | 265,788 | 100.0 | % | 100.0 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Net charge-offs to average loans outstanding by loan category | ||||||||||||||||||||||||||||||||
SBA | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.8 | % | (0.1 | %) | 0.3 | % | 0.0 | % | ||||||||||||||||
Commercial, non-real estate | (0.1 | %) | (6.0 | %) | (0.1 | %) | (0.9 | %) | 0.0 | % | (1.1 | %) | 0.0 | % | (1.0 | %) | ||||||||||||||||
Residential real estate | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
Strategic Program loans | 8.7 | % | 3.3 | % | 9.0 | % | 4.3 | % | 14.4 | % | 4.8 | % | 10.4 | % | 4.5 | % | ||||||||||||||||
Commercial real estate | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
Consumer | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.3 | % | 0.0 | % | 0.1 | % | 0.1 | % |
| As of | |||||||
| June 30, 2022 | December 31, 2021 | ||||||
ALL to nonperforming loans | 1,674.9 | % | 1,499.1 | % |
| As of | |||||||
| September 30, 2022 | December 31, 2021 | ||||||
ALL to nonperforming loans | NA | 1,499.1 | % |
| At | |||||||||||||||
| One Year or Less | After One to Five Years | ||||||||||||||
($ in thousands) | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | ||||||||||||
Mortgage-backed securities | $ | — | — | $ | — | — |
| At June 30, 2022 | At September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
| After Five to Ten Years Weighted | After Ten Years Weighted | After Five to Ten Years Weighted | After Ten Years Weighted | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Total Amortized Cost | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Total Amortized Cost | ||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 2,328 | 2.1 | % | $ | 10,135 | 1.6 | % | $ | 12,463 | $ | 3,205 | 3.1 | % | $ | 10,720 | 2.5 | % | $ | 13,925 |
| June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
($ in thousands) | Total | Percent | Total | Percent | Total | Percent | Total | Percent | ||||||||||||||||||||||||
Period end: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 83,490 | 38.1 | % | $ | 110,548 | 43.9 | % | $ | 97,654 | 42.0 | % | $ | 110,548 | 43.9 | % | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||
Demand | 11,360 | 5.1 | % | 5,399 | 2.1 | % | 55,152 | 23.6 | % | 5,399 | 2.1 | % | ||||||||||||||||||||
Savings | 7,462 | 3.4 | % | 6,685 | 2.7 | % | 7,252 | 3.1 | % | 6,685 | 2.7 | % | ||||||||||||||||||||
Money markets | 48,273 | 22.0 | % | 31,076 | 12.3 | % | 12,281 | 5.3 | % | 31,076 | 12.3 | % | ||||||||||||||||||||
Time certificates of deposit | 68,774 | 31.4 | % | 98,184 | 39.0 | % | 60,499 | 26.0 | % | 98,184 | 39.0 | % | ||||||||||||||||||||
Total period end deposits | $ | 219,359 | 100.0 | % | $ | 251,892 | 100.0 | % | $ | 232,838 | 100.0 | % | $ | 251,892 | 100.0 | % |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2022 | December 31, 2021 | June 30, 2021 | September 30, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Total | Weighted Average rate paid | Percent of total | Total | Weighted Average rate paid | Percent of total | Total | Weighted Average rate paid | Percent of total | Total | Weighted Average rate paid | Percent of total | Total | Weighted Average rate paid | Percent of total | Total | Weighted Average rate paid | Percent of total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 120,359 | 0.00 | % | 48.6 | % | $ | 127,590 | 0.00 | % | 46.3 | % | $ | 105,459 | 0.00 | % | 53.9 | % | $ | 102,575 | 0.00 | % | 49.6 | % | $ | 127,590 | 0.00 | % | 46.3 | % | $ | 107,342 | 0.00 | % | 48.9 | % | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Demand | 7,587 | 1.42 | % | 3.1 | % | 7,411 | 0.81 | % | 2.7 | % | 5,533 | 0.94 | % | 2.8 | % | 11,857 | 3.81 | % | 5.7 | % | 7,411 | 0.81 | % | 2.7 | % | 5,007 | 0.88 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Savings | 7,430 | 0.05 | % | 3.0 | % | 7,573 | 0.05 | % | 2.7 | % | 8,328 | 0.14 | % | 4.3 | % | 7,514 | 0.05 | % | 3.6 | % | 7,573 | 0.05 | % | 2.7 | % | 8,818 | 0.14 | % | 4.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Money market | 29,318 | 0.29 | % | 11.8 | % | 28,859 | 0.29 | % | 10.5 | % | 18,872 | 0.38 | % | 9.6 | % | 20,615 | 0.56 | % | 9.9 | % | 28,859 | 0.29 | % | 10.5 | % | 22,274 | 0.38 | % | 10.1 | % | ||||||||||||||||||||||||||||||||||||||||||
Time certificates of deposit | 82,870 | 0.94 | % | 33.5 | % | 104,134 | 0.93 | % | 37.8 | % | 57,468 | 1.79 | % | 29.4 | % | 64,789 | 0.99 | % | 31.2 | % | 104,134 | 0.93 | % | 37.8 | % | 76,127 | 1.24 | % | 34.7 | % | ||||||||||||||||||||||||||||||||||||||||||
Total average deposits | $ | 247,564 | 0.39 | % | 100.0 | % | $ | 275,567 | 0.40 | % | 100.0 | % | $ | 195,660 | 0.59 | % | 100.0 | % | $ | 207,350 | 0.58 | % | 100.0 | % | $ | 275,567 | 0.40 | % | 100.0 | % | $ | 219,568 | 0.49 | % | 100.0 | % |
Nine Months Ended | ||||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||
($ in thousands) | Total | Weighted average rate paid | Percent of total | Total | Weighted average rate paid | Percent of total | ||||||||||||||||||
Average: | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 120,102 | 0.00 | % | 49.7 | % | $ | 100,704 | 0.00 | % | 51.5 | % | ||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Demand | 8,616 | 2.40 | % | 3.6 | % | 5,604 | 0.90 | % | 2.9 | % | ||||||||||||||
Savings | 7,211 | 0.06 | % | 3.0 | % | 8,006 | 0.15 | % | 4.1 | % | ||||||||||||||
Money market | 29,742 | 0.32 | % | 12.3 | % | 19,641 | 0.37 | % | 10.0 | % | ||||||||||||||
Time certificates of deposit | 75,836 | 1.02 | % | 31.4 | % | 61,587 | 1.64 | % | 31.5 | % | ||||||||||||||
Total average deposits | $ | 241,507 | 0.45 | % | 100.0 | % | $ | 195,542 | 0.59 | % | 100.0 | % |
Six Months Ended | ||||||||||||||||||||||||
| June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
($ in thousands) | Total | Weighted average rate paid | Percent of total | Total | Weighted average rate paid | Percent of total | ||||||||||||||||||
Average: | ||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 129,014 | 0.00 | % | 49.9 | % | $ | 97,330 | 0.00 | % | 53.1 | % | ||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Demand | 6,969 | 1.18 | % | 2.7 | % | 5,908 | 0.91 | % | 3.2 | % | ||||||||||||||
Savings | 7,056 | 0.06 | % | 2.7 | % | 7,594 | 0.16 | % | 4.1 | % | ||||||||||||||
Money market | 30,596 | 0.28 | % | 11.8 | % | 18,303 | 0.37 | % | 10.0 | % | ||||||||||||||
Time certificates of deposit | 85,235 | 0.98 | % | 32.9 | % | 54,196 | 1.92 | % | 29.6 | % | ||||||||||||||
Total average deposits | $ | 258,870 | 0.39 | % | 100.0 | % | $ | 183,331 | 0.64 | % | 100.0 | % |
June 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | Three months or less | More than three months to six months | More than six months to twelve months | More than twelve months | Total | Three months or less | More than three months to six months | More than six months to twelve months | More than twelve months | Total | ||||||||||||||||||||||||||||||
Time deposits, uninsured | $ | — | $ | — | $ | 631 | $ | 148 | $ | 779 | $ | 129 | $ | — | $ | 551 | $ | 1,154 | $ | 1,834 |
| June 30, | December 31, | 2022 | 2021 | September 30, | December 31, | 2022 | 2021 | ||||||||||||||||||||||||||
Capital Ratios | 2022 | 2021 | Well- Capitalized Requirement | Well- Capitalized Requirement | 2022 | 2021 | Well- Capitalized Requirement | Well- Capitalized Requirement | ||||||||||||||||||||||||||
Leverage Ratio (under CBLR) | 21.4 | % | 17.7 | % | 9.0 | %(1) | 8.5 | %(1) | 24.9 | % | 17.7 | % | 9.0 | %(1) | 8.5 | %(1) |
(1) | The Well-Capitalized Requirement for years 2022 and 2021 were 9.0% and 8.5%, respectively. |
($ in thousands) | Total | Less than One Year | One to Three Years | Three to Five Years | More Than Five Years | Total | Less than One Year | One to Three Years | Three to Five Years | More Than Five Years | ||||||||||||||||||||||||||||||||
Contractual Obligations | ||||||||||||||||||||||||||||||||||||||||||
Deposits without stated maturity | $ | 94,850 | $ | 94,850 | $ | — | $ | — | $ | — | $ | 152,806 | $ | 152,806 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Time deposits | 68,774 | 12,666 | 37,643 | 17,581 | 884 | 60,499 | 22,359 | 27,107 | 11,033 | — | ||||||||||||||||||||||||||||||||
Long term borrowings(1) | 376 | — | 376 | — | — | 345 | — | 345 | — | — | ||||||||||||||||||||||||||||||||
Operating lease obligations | 7,954 | 733 | 2,201 | 2,237 | 2,783 | 7,776 | 834 | 2,196 | 2,253 | 2,493 | ||||||||||||||||||||||||||||||||
Total | $ | 171,954 | $ | 108,249 | $ | 40,220 | $ | 19,818 | $ | 3,667 | $ | 221,426 | $ | 175,999 | $ | 29,648 | $ | 13,286 | $ | 2,493 |
(1) | Balances in this category pertain to the PPPLF and are fully-collateralized with PPP loans |
($ in thousands) | As of June 30, 2022 | As of December 31, 2021 | As of September 30, 2022 | As of December 31, 2021 | ||||||||||||
Revolving, open-end lines of credit | $ | 1,290 | $ | 1,259 | $ | 1,747 | $ | 1,259 | ||||||||
Commercial real estate | 23,830 | 15,402 | 19,563 | 15,402 | ||||||||||||
Other unused commitments | 644 | 377 | 397 | 377 | ||||||||||||
Total commitments | $ | 25,764 | $ | 17,038 | $ | 21,707 | $ | 17,038 |
As of | ||||||||
($ in thousands) | June 30, 2022 | December 31, 2021 | ||||||
Total nonperforming assets and troubled debt restructuring | $ | 728 | $ | 763 | ||||
Total assets | $ | 365,987 | $ | 380,214 | ||||
PPP loans | $ | 734 | $ | 1,091 | ||||
Total assets less PPP loans | $ | 365,253 | $ | 379,123 | ||||
Total nonperforming assets and troubled debt restructurings to total assets (less PPP loans) | 0.2 | % | 0.2 | % |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||
July 1, 2022 - July 31, 2022 | — | — | — | — | ||||||
August 1, 2022 - August 31, 2022 | — | — | — | 644,241 | ||||||
September 1, 2022 - September 30, 2022 | 20,000 | $10.66 | 20,000 | 624,241 | ||||||
Total | 20,000 | $10.66 | 20,000 | 624,241 |
(1) | On August 18, 2022, the Company announced that the Board has authorized, effective August 16, 2022, a common stock repurchase program to purchase up to 644,241 shares of the Company’s common stock in the aggregate. The repurchase program expires on August 31, 2024, but may be limited or terminated at any time without prior notice. The repurchase program authorizes the repurchase by the Company of its common stock in open market transactions, including pursuant to a trading plan in accordance with Rule 10b-18 promulgated under the Exchange Act or privately negotiated transactions. The authorization permits management to repurchase shares of the Company’s common stock from time to time at management’s discretion. Repurchases may also be made pursuant to a trading plan under Rule 10b5-1 under the Exchange Act, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. The actual means and timing of any shares purchased under the program will depend on a variety of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal and regulatory requirements. The repurchase program does not obligate the Company to purchase any particular number of shares. |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Number | Description | |
Fourth Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 of the Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on July 30, 2021 (File No. 333-257929)). | ||
Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 of the Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on July 30, 2021 (File No. 333-257929)). | ||
Specimen common stock certificate (incorporated by reference to Exhibit 4.1 of the Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on July 15, 2021 (File No. 333-257929)). | ||
Secured Promissory Note, dated as of June 1, 2022, by Alan Weichselbum in favor of FinWise Bancorp. | ||
Security Agreement, dated as of June 1, 2022, by and between | ||
Rule 13a-14(a) Certification of the Principal Executive Officer. | ||
Rule 13a-14(a) Certification of the Principal Financial Officer. | ||
Section 1350 Certification of Chief Executive Officer and Chief Financial Officer. | ||
101.INS* | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document in Exhibit 101). |
FinWise Bancorp | ||
Date: | By: | /s/ Kent Landvatter |
Kent Landvatter | ||
President, Chief Executive Officer and Director | ||
(Principal Executive Officer) | ||
Date: | By: | /s/ Javvis Jacobson |
Javvis Jacobson | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |