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UNTY Unity Bancorp

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021Apr. 30, 2021
Document and Entity Information [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateMar. 31,
2021
Entity File Number1-12431
Entity Registrant NameUNITY BANCORP INC /NJ/
Entity Incorporation, State or Country CodeNJ
Entity Tax Identification Number22-3282551
Entity Address, Address Line One64 Old Highway 22
Entity Address, City or TownClinton
Entity Address, State or ProvinceNJ
Entity Address, Postal Zip Code08809
City Area Code908
Local Phone Number730-7630
Title of 12(b) SecurityCommon stock
Trading SymbolUNTY
Security Exchange NameNASDAQ
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryNon-accelerated Filer
Entity Small Businesstrue
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding10,417,385
Entity Central Index Key0000920427
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Amendment Flagfalse

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
ASSETS
Cash and due from banks $ 25,911 $ 22,750
Federal funds sold and interest-bearing deposits213,666 196,561
Cash and cash equivalents239,577 219,311
Securities:
Debt securities available for sale (amortized cost of $32,549 in 2021 and $45,921 in 2020)32,330 45,617
Equity securities with readily determinable fair values (amortized cost of $2,112 in 2021 and $2,112 in 2020)2,221 1,954
Total securities34,551 47,571
Loans:
SBA loans held for sale8,809 9,335
Loans1,659,639 1,618,482
Total loans1,668,448 1,627,817
Allowance for loan losses(22,965)(23,105)
Net loans1,645,483 1,604,712
Premises and equipment, net20,043 20,226
Bank owned life insurance ("BOLI")26,535 26,514
Deferred tax assets9,116 9,183
Federal Home Loan Bank ("FHLB") stock9,269 10,594
Accrued interest receivable9,831 10,429
Goodwill1,516 1,516
Prepaid expenses and other assets8,897 8,858
Total assets2,004,818 1,958,914
Deposits:
Noninterest-bearing demand465,511 459,677
Interest-bearing demand217,714 204,236
Savings502,300 455,449
Time, under $100,000272,298 264,671
Time, $100,000 to $250,00094,933 95,595
Time, $250,000 and over75,637 78,331
Total deposits1,628,393 1,557,959
Borrowed funds170,000 200,000
Subordinated debentures10,310 10,310
Accrued interest payable255 248
Accrued expenses and other liabilities14,674 16,486
Total liabilities1,823,632 1,785,003
Shareholders' equity:
Common stock92,180 91,873
Retained earnings98,331 90,669
Treasury stock(8,791)(7,442)
Accumulated other comprehensive loss(534)(1,189)
Total shareholders' equity181,186 173,911
Total liabilities and shareholders' equity2,004,818 1,958,914
SBA loans held for investment
Loans:
Loans38,296 39,587
Allowance for loan losses(1,654)(1,301)
SBA PPP loans
Loans:
Loans169,117 118,257
Commercial loans
Loans:
Loans853,078 839,788
Allowance for loan losses(14,727)(14,992)
Residential mortgage loans
Loans:
Loans448,149 467,586
Allowance for loan losses(5,009)(5,318)
Consumer loans
Loans:
Loans60,502 66,100
Allowance for loan losses(549)(681)
Consumer construction loans
Loans:
Loans90,497 87,164
Allowance for loan losses $ (1,026) $ (813)

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in ThousandsMar. 31, 2021Dec. 31, 2020
Statement of Financial Position
Securities available for sale, amortized cost $ 32,549 $ 45,921
Equity securities, amortized cost $ 2,112 $ 2,112
Common stock, shares issued (in shares)10,996 10,961
Common stock, shares outstanding (in shares)10,422 10,456
Treasury shares574 505

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
INTEREST INCOME
Federal funds sold and interest-bearing deposits $ 24 $ 188
FHLB stock63 109
Securities:
Taxable292 511
Tax-exempt10 22
Total securities302 533
Loans:
SBA loans783 985
SBA PPP loans1,730
Commercial loans10,474 9,933
Residential mortgage loans5,128 5,770
Consumer loans857 960
Consumer construction loans1,215 1,107
Total loans20,187 18,755
Total interest income20,576 19,585
INTEREST EXPENSE
Interest-bearing demand deposits309 378
Savings deposits431 951
Time deposits1,463 2,447
Borrowed funds and subordinated debentures355 565
Total interest expense2,558 4,341
Net interest income18,018 15,244
Provision for loan losses500 1,500
Net interest income after provision for loan losses17,518 13,744
NONINTEREST INCOME
Branch fee income295 317
Service and loan fee income625 376
Gain on sale of SBA loans held for sale, net245 473
Gain on sale of mortgage loans, net1,750 1,051
BOLI income129 173
Net security gains (losses)310 (170)
Other income372 325
Total noninterest income3,726 2,545
NONINTEREST EXPENSE
Compensation and benefits6,063 5,439
Processing and communications807 708
Occupancy706 624
Furniture and equipment649 655
Professional services380 269
Advertising268 290
Deposit insurance214 88
Director fees208 200
BSA expenses168 63
Other loan expenses143 89
Loan collection and OREO (recoveries) expenses(49)186
Other expenses245 712
Total noninterest expense9,802 9,323
Income before provision for income taxes11,442 6,966
Provision for income taxes2,946 1,598
Net income $ 8,496 $ 5,368
Net income per common share - Basic $ 0.81 $ 0.49
Net income per common share - Diluted $ 0.80 $ 0.49
Weighted average common shares outstanding - Basic10,437 10,883
Weighted average common shares outstanding - Diluted10,565 11,037

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statement of Comprehensive Income
Net income, before tax amount $ 11,442 $ 6,966
Income tax expense (benefit)2,946 1,598
Net income8,496 5,368
Debt securities available for sale
Unrealized holding gains (losses) on securities arising during the period, before tax395 (166)
Unrealized holding gains (losses) on securities arising during the period, tax89 (35)
Unrealized holding gains (losses) on securities arising during the period, net306 (131)
Less: reclassification adjustment for gains (losses) on securities included in net income, before tax310 (170)
Less: reclassification adjustment for gains (losses) on securities included in net income, tax65 (36)
Less: reclassification adjustment for gains (losses) on securities included in net income, net of tax245 (134)
Total unrealized gains on securities available for sale, before tax85 4
Total unrealized gains on securities available for sale, tax24 1
Total unrealized gains on securities available for sale, net of tax61 3
Adjustments related to defined benefit plan:
Adjustments related to defined benefit plan, Amortization of prior service cost, before tax21 21
Adjustments related to defined benefit plan, Amortization of prior service cost, tax6 6
Adjustments related to defined benefit plan, Amortization of prior service cost, net of tax15 15
Total adjustments related to defined benefit plan, before tax21 21
Total adjustments related to defined benefit plan, tax6 6
Total adjustments related to defined benefit plan, net of tax15 15
Net unrealized gains (losses) from cash flow hedges:
Unrealized holding gaions (losses) on cash flow hedges arising during the period, before tax807 (1,410)
Unrealized holding gains (losses) on cash flow hedges arising during the period, tax228 (406)
Unrealized holding gains (losses) on cash flow hedges arising during the period, net of tax579 (1,004)
Total unrealized gains (losses) on cash flow hedges, before tax807 (1,410)
Total unrealized gains (losses) on cash flow hedges, tax228 (406)
Total unrealized gains (losses) on cash flow hedges, net of tax579 (1,004)
Total other comprehensive income (loss), before tax913 (1,385)
Total other comprehensive income (loss), tax258 (399)
Total other comprehensive income (loss), net of tax655 (986)
Total comprehensive income, before tax12,355 5,581
Total comprehensive income, tax3,204 1,199
Total comprehensive income, net of tax $ 9,151 $ 4,382

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in ThousandsCommon stockRetained earningsAccumulated other comprehensive (loss) incomeTreasury stockTotal
Beginning Balance (in shares) at Dec. 31, 201910,881
Beginning balance at Dec. 31, 2019 $ 90,113 $ 70,442 $ 154 $ 160,709
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income5,368 5,368
Other comprehensive income (loss), net of tax(986)(986)
Dividends on common stock $ 30 (871)(841)
Common stock issued and related tax effects (in shares)13
Common stock issued and related tax effects $ 227 227
Treasury stock purchased, at cost $ (172)(172)
Treasury stock purchased, at cost (in shares)(11)
Ending Balance (in shares) at Mar. 31, 202010,883
Ending balance at Mar. 31, 2020 $ 90,370 74,939 (832)(172)164,305
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Retained earnings $ 90,669
Beginning Balance (in shares) at Dec. 31, 202010,456 10,456
Beginning balance at Dec. 31, 2020 $ 91,873 90,669 (1,189)(7,442) $ 173,911
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income8,496 8,496
Other comprehensive income (loss), net of tax655 655
Dividends on common stock $ 30 (834)(804)
Common stock issued and related tax effects (in shares)[1]36
Common stock issued and related tax effects[1] $ 277 277
Treasury stock purchased, at cost(1,349) $ (1,349)
Treasury stock purchased, at cost (in shares)(70)
Ending Balance (in shares) at Mar. 31, 202110,422 10,422
Ending balance at Mar. 31, 2021 $ 92,180 $ 98,331 $ (534) $ (8,791) $ 181,186
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Retained earnings $ 98,331
[1]Includes the issuance of common stock under employee benefit plans, which includes nonqualified stock options and restricted stock expense related entries, employee option exercises and the tax benefit of options exercised.

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statement of Stockholders' Equity
Common stock, dividends, per share, cash paid (in dollars per share) $ 0.08 $ 0.08

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
OPERATING ACTIVITIES:
Net income $ 8,496,000 $ 5,368,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses500,000 1,500,000
Net amortization of purchase premiums and discounts on securities62,000 59,000
Depreciation and amortization469,000 317,000
PPP deferred fees and costs1,937,000 0
Deferred income tax benefit(191,000)(347,000)
Net security gains(43,000)(301,000)
Stock compensation expense374,000 365,000
Valuation writedowns on OREO0 200,000
Gain on sale of mortgage loans, net(2,001,000)(622,000)
Gain on sale of SBA loans held for sale, net(245,000)(473,000)
Origination of mortgage loans sold(101,869,000)(38,562,000)
Origination of SBA loans held for sale(1,312,000)(2,595,000)
Proceeds from sale of mortgage loans, net103,870,000 39,184,000
Proceeds from sale of SBA loans held for sale, net2,416,000 5,850,000
BOLI income(129,000)(173,000)
Net change in other assets and liabilities(685,000)1,714,000
Net cash provided by operating activities11,649,000 11,484,000
INVESTING ACTIVITIES
Purchases of FHLB stock, at cost(16,450,000)(22,275,000)
Maturities and principal payments on debt securities available for sale6,305,000 2,198,000
Proceeds from sales of debt securities available for sale7,048,000 6,029,000
Proceeds from sales of equity securities0 111,000
Proceeds from redemption of FHLB stock17,775,000 27,405,000
Net increase in SBA PPP loans(52,492,000)0
Net decrease (increase) in loans8,364,000 (17,277,000)
Proceeds from BOLI107,000 117,000
Purchases of premises and equipment(224,000)(166,000)
Net cash used in investing activities(29,567,000)(3,858,000)
FINANCING ACTIVITIES
Net increase in deposits70,434,000 128,504,000
Proceeds from new borrowings130,000,000 109,000,000
Repayments of borrowings(160,000,000)(223,000,000)
Proceeds from exercise of stock options80,113 34,265
Fair market value of shares withheld to cover employee tax liability(177,000)(172,000)
Dividends on common stock(804,000)(841,000)
Purchase of treasury stock(1,349,000)(172,000)
Net cash provided by financing activities38,184,000 13,353,000
Increase in cash and cash equivalents20,266,000 20,979,000
Cash and cash equivalents, beginning of period219,311,000 158,016,000
Cash and cash equivalents, end of period239,577,000 178,995,000
SUPPLEMENTAL DISCLOSURES
Interest paid2,550,000 4,559,000
Income taxes paid3,320,000 1,782,000
Noncash investing activities:
Transfer of SBA loans held for sale to held to maturity0 1,024,000
Capitalization of servicing rights $ 19,000 $ 486,000

Significant Accounting Policies

Significant Accounting Policies3 Months Ended
Mar. 31, 2021
Significant Accounting Policies
Significant Accounting PoliciesNOTE 1. Significant Accounting Policies The accompanying Consolidated Financial Statements include the accounts of Unity Bancorp, Inc. (the "Parent Company") and its wholly-owned subsidiary, Unity Bank (the "Bank" or when consolidated with the Parent Company, the "Company"), and reflect all adjustments and disclosures which are generally routine and recurring in nature, and in the opinion of management, necessary for a fair presentation of interim results. The Bank has multiple subsidiaries used to hold part of its investment and loan portfolios and OREO properties. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current year presentation, with no impact on current earnings or shareholders’ equity. The financial information has been prepared in accordance with U.S. generally accepted accounting principles and has not been audited. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses during the reporting periods. Actual results could differ from those estimates. Amounts requiring the use of significant estimates include the allowance for loan losses, valuation of deferred tax and servicing assets, the carrying value of loans held for sale and other real estate owned, the valuation of securities and the determination of other-than-temporary impairment for securities and fair value disclosures. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions. The markets served by the Company have been significantly impacted by the COVID-19 pandemic, which started during the first quarter of 2020. The Company continues to assess the financial impact of the COVID-19 pandemic. The interim unaudited Consolidated Financial Statements included herein have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the Securities and Exchange Commission (“SEC”) and consist of normal recurring adjustments necessary for the fair presentation of interim results. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results which may be expected for the entire year. As used in this Form 10-Q, “we” and “us” and “our” refer to Unity Bancorp, Inc., and its consolidated subsidiary, Unity Bank, depending on the context. Certain information and financial disclosures required by U.S. generally accepted accounting principles have been condensed or omitted from interim reporting pursuant to SEC rules. Interim financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Risks and Uncertainties On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has adversely affected local, national and global economic activity. Actions taken to help mitigate the spread of COVID-19 include restrictions on travel, localized quarantines, and government-mandated closures of certain businesses. The spread of the outbreak has caused significant disruptions to the U.S. economy and has disrupted banking and other financial activity in the areas in which the Company operates. On March 3, 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range by 50 basis points to 1.00 percent to 1.25 percent. This range was further reduced to 0 percent to 0.25 percent on March 16, 2020. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to, among other provisions, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. These reductions in interest rates and other effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company. It is possible that estimates made in the financial statements could be materially and adversely impacted as a result of these conditions. On July 27, 2017, the U.K. Financial Conduct Authority, which regulates LIBOR, announced that it will no longer persuade or compel banks to submit rates for the calculation of LIBOR to the LIBOR administrator after 2021. The announcement also indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. Consequently, at this time, it is not possible to predict whether and to what extent banks will continue to provide LIBOR submissions to the LIBOR administrator or whether any additional reforms to LIBOR may be enacted in the United Kingdom or elsewhere. Similarly, it is not possible to predict whether LIBOR will continue to be viewed as an acceptable benchmark for certain loans and liabilities including our subordinated notes, what rate or rates may become accepted alternatives to LIBOR or the effect of any such changes in views or alternatives on the values of the loans and liabilities, whose interest rates are tied to LIBOR. Uncertainty as to the nature of such potential changes, alternative reference rates, the elimination or replacement of LIBOR, or other reforms may adversely affect the value of, and the return on our loans and our investment securities. Other-Than-Temporary Impairment The Company has a process in place to identify securities that could potentially incur credit impairment that is other-than-temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. This evaluation considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, the intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a forecasted period of time that allows for the recovery in value. Management assesses its intent to sell or whether it is more likely than not that it will be required to sell a security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other-than-temporarily impaired with no intent to sell and no requirement to sell prior to recovery of its amortized cost basis, the amount of the impairment is separated into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and is recognized in other comprehensive income. For debt securities where management has the intent to sell, the amount of the impairment is reflected in earnings as realized losses. The present value of expected future cash flows is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best estimate cash flows vary depending on the type of security. The asset-backed securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees. The corporate bond cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using bond specific facts and circumstances including timing, security interests and loss severity. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans Loans Held for Sale Loans held for sale represent the guaranteed portion of Small Business Administration (“SBA”) loans, excluding loans originated under the Paycheck Protection Program, and are reflected at the lower of aggregate cost or market value. The Company originates loans to customers under an SBA program that historically has provided for SBA guarantees of up to 90 percent of each loan. The Company generally sells the guaranteed portion of its SBA loans to a third party and retains the servicing, holding the nonguaranteed portion in its portfolio. The net amount of loan origination fees on loans sold is included in the carrying value and in the gain or loss on the sale. When sales of SBA loans do occur, the premium received on the sale and the present value of future cash flows of the servicing assets are recognized in income. All criteria for sale accounting must be met in order for the loan sales to occur; see details under the “Transfers of Financial Assets” heading above. Servicing assets represent the estimated fair value of retained servicing rights, net of servicing costs, at the time loans are sold. Servicing assets are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on stratifying the underlying financial assets by date of origination and term. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment, if temporary, would be reported as a valuation allowance. Serviced loans sold to others are not included in the accompanying Consolidated Balance Sheets. Income and fees collected for loan servicing are credited to noninterest income when earned, net of amortization on the related servicing assets. Loans Held for Investment Loans held for investment are stated at the unpaid principal balance, net of unearned discounts and deferred loan origination fees and costs. In accordance with the level yield method, loan origination fees, net of direct loan origination costs, are deferred and recognized over the estimated life of the related loans as an adjustment to the loan yield. Interest is credited to operations primarily based upon the principal balance outstanding. Loans are reported as past due when either interest or principal is unpaid in the following circumstances: fixed payment loans when the borrower is in arrears for two or more monthly payments; open end credit for two or more billing cycles; and single payment notes if interest or principal remains unpaid for 30 days or more. Nonperforming loans consist of loans that are not accruing interest as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt (nonaccrual loans). When a loan is classified as nonaccrual, interest accruals are discontinued and all past due interest previously recognized as income is reversed and charged against current period earnings. Generally, until the loan becomes current, any payments received from the borrower are applied to outstanding principal until such time as management determines that the financial condition of the borrower and other factors merit recognition of a portion of such payments as interest income. Loans may be returned to an accrual status when the ability to collect is reasonably assured and when the loan is brought current as to principal and interest. Loans are charged off when collection is sufficiently questionable and when the Company can no longer justify maintaining the loan as an asset on the balance sheet. Loans qualify for charge-off when, after thorough analysis, all possible sources of repayment are insufficient. These include: 1) potential future cash flows, 2) value of collateral, and/or 3) strength of co-makers and guarantors. All unsecured loans are charged off upon the establishment of the loan’s nonaccrual status. Additionally, all loans classified as a loss or that portion of the loan classified as a loss is charged off. All loan charge-offs are approved by the Board of Directors. Troubled debt restructurings ("TDRs") occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider. These concessions typically include reductions in interest rate, extending the maturity of a loan, or a combination of both. Interest income on accruing TDRs is credited to operations primarily based upon the principal amount outstanding, as stated in the paragraphs above. The Company evaluates its loans for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Company has defined impaired loans to be all TDRs and nonperforming loans individually evaluated for impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature (consumer and residential mortgage loans), and on an individual basis for all other loans. Impairment of a loan is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, or as a practical expedient, based on a loan’s observable market price or the fair value of collateral, net of estimated costs to sell, if the loan is collateral-dependent. If the value of the impaired loan is less than the recorded investment in the loan, the Company establishes a valuation allowance, or adjusts existing valuation allowances, with a corresponding charge to the provision for loan losses. For additional information on loans, see Note 8 to the Consolidated Financial Statements and the section titled "Loan Portfolio" under Item 2. Management’s Discussion and Analysis. Allowance for Loan Losses and Reserve for Unfunded Loan Commitments The allowance for loan losses is maintained at a level management considers adequate to provide for probable loan losses as of the balance sheet date. The allowance is increased by provisions charged to expense and is reduced by net charge-offs. The level of the allowance is based on management’s evaluation of probable losses in the loan portfolio, after consideration of prevailing economic conditions in the Company’s market area, the volume and composition of the loan portfolio, and historical loan loss experience. The allowance for loan losses consists of specific reserves for individually impaired credits and TDRs, reserves for nonimpaired loans based on historical loss factors and reserves based on general economic factors and other qualitative risk factors such as changes in delinquency trends, industry concentrations or local/national economic trends. This risk assessment process is performed at least quarterly, and, as adjustments become necessary, they are realized in the periods in which they become known. Although management attempts to maintain the allowance at a level deemed adequate to provide for probable losses, future additions to the allowance may be necessary based upon certain factors including changes in market conditions and underlying collateral values. In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for loan losses. These agencies may require the Company to make additional provisions based on their judgments about information available to them at the time of their examination. The Company maintains an allowance for unfunded loan commitments that is maintained at a level that management believes is adequate to absorb estimated probable losses. Adjustments to the allowance are made through other expenses and applied to the allowance which is maintained in other liabilities. For additional information on the allowance for loan losses and unfunded loan commitments, see Note 9 to the Consolidated Financial Statements and the sections titled "Asset Quality" and "Allowance for Loan Losses and Reserve for Unfunded Loan Commitments" under Item 2. Management’s Discussion and Analysis. Income Taxes The Company accounts for income taxes according to the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates applicable to taxable income for the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation reserves are established against certain deferred tax assets when it is more likely than not that the deferred tax assets will not be realized. Increases or decreases in the valuation reserve are charged or credited to the income tax provision. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits would be recognized in income tax expense on the income statement.

Litigation

Litigation3 Months Ended
Mar. 31, 2021
Leases and Commitments
LitigationNOTE 2. Litigation The Company may, in the ordinary course of business, become a party to litigation involving collection matters, contract claims and other legal proceedings relating to the conduct of its business. In the best judgment of management, based upon consultation with counsel, the consolidated financial position and results of operations of the Company will not be affected materially by the final outcome of any pending legal proceedings or other contingent liabilities and commitments.

Net Income per Share

Net Income per Share3 Months Ended
Mar. 31, 2021
Net Income per Share
Net Income per ShareNOTE 3. Net Income per Share Basic net income per common share is calculated as net income divided by the weighted average common shares outstanding during the reporting period. Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options, were issued during the reporting period utilizing the Treasury stock method. However, when a net loss rather than net income is recognized, diluted earnings per share equals basic earnings per share. The following is a reconciliation of the calculation of basic and diluted income per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ (In thousands, except per share amounts) 2021 2020 ​ Net income ​ $ 8,496 ​ $ 5,368 ​ ​ Weighted average common shares outstanding - Basic ​ 10,437 ​ 10,883 ​ ​ Plus: Potential dilutive common stock equivalents ​ 128 ​ 154 ​ ​ Weighted average common shares outstanding - Diluted ​ 10,565 ​ 11,037 ​ ​ Net income per common share - Basic ​ $ 0.81 ​ $ 0.49 ​ ​ Net income per common share - Diluted ​ 0.80 ​ 0.49 ​ ​ Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive ​ 154 ​ 363 ​ ​ ​

Income Taxes

Income Taxes3 Months Ended
Mar. 31, 2021
Income Taxes
Income TaxesNOTE 4. Income Taxes The Company follows FASB ASC Topic 740, “Income Taxes,” On July 1, 2018, New Jersey’s Assembly Bill 4202 was signed into law. The bill, effective January 1, 2018, imposed a temporary surtax on corporations earning New Jersey allocated taxable income in excess of $1 million at a rate of 2.5 percent for tax years beginning on or after January 1, 2018, through December 31, 2019, and at 1.5 percent for tax years beginning on or after January 1, 2020, through December 31, 2021. In addition, New Jersey adopted mandatory unitary combined reporting for its Corporation Business Tax, which became effective for periods on or after January 1, 2019. On September 29, 2020, New Jersey’s Assembly Bill 4721 was signed into law. The bill, retroactively effective January 1, 2020, extends the 2.5% corporate income surtax until December 31, 2023. The Division of Taxation will waive any underpayment penalties on 2020 estimated tax payments related to the retroactive increase. In addition, if the federal corporate tax rate is increased to a rate of at least 35% of taxable income, the surtax will be suspended. For the quarter ended March 31, 2021, the Company reported income tax expense of $2.9 million for an effective tax rate of 25.7 percent, compared to an income tax expense of $1.6 million and an effective tax rate of 22.9 percent for the prior year’s quarter. The Company did not recognize or accrue any interest or penalties related to income taxes during the three months ended March 31, 2021 or 2020. The Company did not have an accrual for uncertain tax positions as of March 31, 2021 or December 31, 2020, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Tax returns for all years 2016 and thereafter are subject to future examination by tax authorities.

Other Comprehensive (Loss) Inco

Other Comprehensive (Loss) Income3 Months Ended
Mar. 31, 2021
Other Comprehensive (Loss) Income
Other Comprehensive (Loss) IncomeNOTE 5. Other Comprehensive (Loss) Income The following tables show the changes in other comprehensive (loss) income for the three months ended March 31, 2021 and 2020, net of tax: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2021 ​ ​ Adjustments Net unrealized Accumulated ​ Net unrealized related to (losses) gains other ​ (losses) gains on defined benefit from cash flow comprehensive (In thousands) ​ securities plan hedges (loss) income Balance, beginning of period (1) $ (179) ​ $ (238) ​ $ (737) $ (1,154) Other comprehensive income before reclassifications ​ 306 ​ ​ — ​ ​ 579 ​ 885 Less amounts reclassified from accumulated other comprehensive income (loss) ​ 245 ​ ​ (15) ​ ​ — ​ 230 Period change ​ 61 ​ 15 ​ 579 ​ 655 Balance, end of period (1) ​ $ (118) ​ $ (223) ​ $ (158) ​ $ (499) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2020 ​ ​ Adjustments Net unrealized Accumulated ​ Net unrealized related to gains (losses) other ​ gains (losses) on defined benefit from cash flow comprehensive (In thousands) ​ securities plan hedges income (loss) Balance, beginning of period (1) $ 316 ​ $ (295) ​ $ 168 $ 189 Other comprehensive loss before reclassifications ​ (131) ​ ​ — ​ ​ (1,004) ​ (1,135) Less amounts reclassified from accumulated other comprehensive loss ​ (134) ​ ​ (15) ​ ​ — ​ (149) Period change ​ 3 ​ 15 ​ (1,004) ​ (986) Balance, end of period (1) ​ $ 320 ​ $ (280) ​ $ (836) ​ $ (797) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) AOCI does not reflect the net reclassification of $35 thousand to Retained Earnings as a result of ASU 2016-01, "Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" & ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income".

Fair Value

Fair Value3 Months Ended
Mar. 31, 2021
Fair Value
Fair ValueNOTE 6. Fair Value Fair Value Measurement The Company follows FASB ASC Topic 820, “Fair Value Measurement and Disclosures,” Level 1 Inputs ● Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Generally, this includes debt and equity securities and derivative contracts that are traded in an active exchange market (i.e. New York Stock Exchange), as well as certain U.S. Treasury, U.S. Government and sponsored entity agency mortgage-backed securities that are highly liquid and are actively traded in over-the-counter markets. ​ Level 2 Inputs ● Quoted prices for similar assets or liabilities in active markets. ● Quoted prices for identical or similar assets or liabilities in inactive markets. ● Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (i.e., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.” ● Generally, this includes U.S. Government and sponsored entity mortgage-backed securities, corporate debt securities and derivative contracts ​ Level 3 Inputs ● Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities. ● These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. ​ Fair Value on a Recurring Basis The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis: Debt Securities Available for Sale The fair value of available for sale ("AFS") debt securities is the market value based on quoted market prices, when available, or market prices provided by recognized broker dealers (Level 1). If listed prices or quotes are not available, fair value is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). As of March 31, 2021, the fair value of the Company’s AFS debt securities portfolio was $32.3 million. Approximately 46 percent of the portfolio was made up of residential mortgage-backed securities, which had a fair value of $15.0 million at March 31, 2021. Approximately $14.8 million of the residential mortgage-backed securities are guaranteed by the Government National Mortgage Association ("GNMA"), the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC"). The underlying loans for these securities are residential mortgages that are geographically dispersed throughout the United States. Most of the Company’s AFS debt securities were classified as Level 2 assets at March 31, 2021. The valuation of AFS debt securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar assets or liabilities in active markets and all other relevant information. It includes model pricing, defined as valuing securities based upon their relationship with other benchmark securities. Included in the Company’s AFS debt securities are two corporate bonds which are classified as Level 3 assets at March 31, 2021, which were previously classified as Level 2 assets. The valuation of these corporate bonds is determined using broker quotes, third-party vendor prices, or other valuation techniques, such as discounted cash flow techniques. Market inputs used in the other valuation techniques or underlying third-party vendor prices or broker quotes include benchmark and government bond yield curves, credit spreads, and trade execution data. The following table presents a reconciliation of the Level 3 available for sale debt securities measured at fair value on a recurring basis for the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, (In thousands) 2021 2020 Balance at beginning of period (1) $ 4,400 $ — Purchases/additions ​ ​ — ​ ​ — Sales/reductions ​ — ​ — Realized gains (losses) ​ — ​ — Unrealized gains ​ 138 ​ — Balance at end of period ​ $ 4,538 ​ $ — ​ ​ ​ ​ ​ ​ ​ (1) Includes AFS debt securities classified as Level 2 at December 31, 2019, which were transferred to Level 3 during the year ended 2020. ​ Equity Securities with Readily Determinable Fair Values The fair value of equity securities is the market value based on quoted market prices, when available, or market prices provided by recognized broker dealers (Level 1). If listed prices or quotes are not available, fair value is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). As of March 31, 2021, the fair value of the Company’s equity securities portfolio was $2.2 million. All of the Company’s equity securities were classified as Level 2 assets at March 31, 2021. The valuation of equity securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar assets or liabilities in active markets and all other relevant information. There were no changes in the inputs or methodologies used to determine fair value during the period ended March 31, 2021, as compared to the periods ended December 31, 2020 and March 31, 2020. Loans Held for Sale Fair Value for loans held for sale is derived from quoted market prices for similar loans, in which case they are characterized as Level 2 assets in the fair value hierarchy. Interest Rate Swap Agreements The fair value of interest rate swap agreements is the market value based on quoted market prices, when available, or market prices provided by recognized broker dealers (Level 1). If listed prices or quotes are not available, fair value is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). The Company’s derivative instruments are classified as Level 2 assets, as the readily observable market inputs to these models are validated to external sources, such as industry pricing services, or are corroborated through recent trades, dealer quotes, yield curves, implied volatility or other market-related data. The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at March 31, 2021 Using ​ ​ ​ ​ ​ Quoted Prices in ​ ​ ​ ​ ​ ​ ​ ​ Assets/Liabilities ​ Active Markets ​ Significant Other ​ Significant ​ ​ Measured at Fair ​ for Identical ​ Observable ​ Unobservable (In thousands) Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Measured on a recurring basis: ​ ​ ​ ​ Assets: ​ ​ ​ ​ Debt securities available for sale: ​ ​ ​ ​ State and political subdivisions ​ $ 2,375 ​ $ — ​ $ 2,375 ​ $ — Residential mortgage-backed securities ​ 15,013 ​ — ​ 15,013 ​ — Corporate and other securities ​ 14,942 ​ — ​ 10,404 ​ 4,538 Total debt securities available for sale ​ $ 32,330 ​ $ — ​ $ 27,792 ​ $ 4,538 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity securities with readily determinable fair values ​ 2,221 ​ — ​ 2,221 ​ — Total equity securities ​ $ 2,221 ​ $ — ​ $ 2,221 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans held for sale ​ 10,392 ​ — ​ 10,392 ​ — Total loans held for sale ​ $ 10,392 ​ $ — ​ $ 10,392 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap agreements ​ (219) ​ — ​ (219) ​ — Total swap agreements ​ $ (219) ​ $ — ​ $ (219) ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value Measurements at December 31, 2020 Using ​ ​ ​ ​ ​ Quoted Prices in ​ ​ ​ ​ ​ ​ ​ ​ Assets/Liabilities ​ Active Markets ​ Significant Other ​ Significant ​ ​ Measured at Fair ​ for Identical ​ Observable ​ Unobservable (In thousands) Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Measured on a recurring basis: ​ ​ ​ ​ Assets: ​ ​ ​ ​ Debt securities available for sale: ​ ​ ​ ​ U.S. Government sponsored entities ​ $ 2,003 ​ $ — ​ $ 2,003 ​ $ — State and political subdivisions ​ 2,969 ​ — ​ 2,969 ​ — Residential mortgage-backed securities ​ 17,410 ​ — ​ 17,410 ​ — Corporate and other securities ​ 23,235 ​ — ​ 18,835 ​ 4,400 Total debt securities available for sale ​ $ 45,617 ​ $ — ​ $ 41,217 ​ $ 4,400 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity securities with readily determinable fair values ​ 1,954 ​ — ​ 1,954 ​ — Total equity securities ​ $ 1,954 ​ $ — ​ $ 1,954 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans held for sale ​ 10,712 ​ — ​ 10,712 ​ — Total loans held for sale ​ $ 10,712 ​ $ — ​ $ 10,712 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap agreements ​ (1,026) ​ — ​ (1,026) ​ — Total swap agreements ​ $ (1,026) ​ $ — ​ $ (1,026) ​ $ — ​ Fair Value on a Nonrecurring Basis The following tables present the assets and liabilities subject to fair value adjustments (impairment) on a non-recurring basis carried on the balance sheet by caption and by level within the hierarchy (as described above): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at March 31, 2021 Using ​ ​ ​ ​ ​ Quoted Prices ​ Significant ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in Active ​ Other ​ Significant ​ ​ ​ ​ Assets/Liabilities ​ Markets for ​ Observable ​ Unobservable ​ Net Credit ​ ​ Measured at Fair ​ Identical Assets ​ Inputs ​ Inputs ​ During (In thousands) Value (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: ​ ​ ​ ​ ​ Financial assets: ​ ​ ​ ​ ​ Impaired collateral-dependent loans ​ $ 12,591 ​ $ — ​ $ — ​ $ 12,591 ​ $ (556) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2020 Using ​ ​ ​ ​ ​ Quoted Prices ​ Significant ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in Active ​ Other ​ Significant ​ Net (Credit) ​ ​ Assets/Liabilities ​ Markets for ​ Observable ​ Unobservable ​ Provision ​ ​ Measured at Fair ​ Identical Assets ​ Inputs ​ Inputs ​ During (In thousands) Value (Level 1) (Level 2) (Level 3) Period Financial assets: ​ ​ ​ ​ ​ OREO ​ $ — ​ $ — ​ $ — ​ $ — ​ $ (225) Impaired collateral-dependent loans ​ 11,959 ​ — ​ — ​ 11,959 ​ 3,693 ​ Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following is a description of the valuation methodologies used for instruments measured at fair value on a nonrecurring basis: Appraisal Policy All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice ("USPAP"). Appraisals are certified to the Company and performed by appraisers on the Company’s approved list of appraisers. Evaluations are completed by a person independent of Company management. The content of the appraisal depends on the complexity of the property. Appraisals are completed on a “retail value” and an “as is value.” OREO The fair value of OREO is determined using third party appraisals, which may be discounted based on management’s review and changes in market conditions (Level 3 Inputs). Impaired Collateral-Dependent Loans The fair value of impaired collateral-dependent loans is derived in accordance with FASB ASC Topic 310, “Receivables.” The valuation allowance for impaired loans is included in the allowance for loan losses in the consolidated balance sheets. At March 31, 2021, the valuation allowance for impaired loans was $3.6 million, a decrease of $556 thousand from $4.1 million at December 31, 2020. Fair Value of Financial Instruments FASB ASC Topic 825, “Financial Instruments,” The following methods and assumptions were used to estimate the fair value of other financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents For these short-term instruments, the carrying value is a reasonable estimate of fair value. Securities The fair value of securities is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). SBA Loans Held for Sale The fair value of SBA loans held for sale is estimated by using a market approach that includes significant other observable inputs. Loans The fair value of loans is estimated by discounting the future cash flows using current market rates that reflect the interest rate risk inherent in the loan, except for previously discussed impaired loans. FHLB Stock Federal Home Loan Bank stock is carried at cost. Carrying value approximates fair value based on the redemption provisions of the issues. Servicing Assets Servicing assets do not trade in an active, open market with readily observable prices. The Company estimates the fair value of servicing assets using discounted cash flow models incorporating numerous assumptions from the perspective of a market participant including market discount rates and prepayment speeds. Accrued Interest The carrying amounts of accrued interest approximate fair value. Deposit Liabilities The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date (i.e. carrying value). The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using current market rates. Borrowed Funds and Subordinated Debentures The fair value of borrowings is estimated by discounting the projected future cash flows using current market rates. Standby Letters of Credit At March 31, 2021, the Bank had standby letters of credit outstanding of $4.4 million, compared to $4.5 million at December 31, 2020. The fair value of these commitments is nominal. The table below presents the carrying amount and estimated fair values of the Company’s financial instruments presented as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ December 31, 2020 ​ ​ Fair value ​ Carrying ​ Estimated ​ Carrying ​ Estimated (In thousands) level amount fair value amount fair value Financial assets: ​ ​ ​ ​ Cash and cash equivalents Level 1 ​ $ 239,577 ​ $ 239,577 ​ $ 219,311 ​ $ 219,311 Securities (1) Level 2 ​ 34,551 ​ 34,551 ​ 47,571 ​ 47,571 SBA loans held for sale Level 2 ​ 8,809 ​ 10,392 ​ 9,335 ​ 10,712 Loans, net of allowance for loan losses (2) Level 2 ​ 1,636,674 ​ 1,650,152 ​ 1,595,377 ​ 1,613,593 FHLB stock Level 2 ​ 9,269 ​ 9,269 ​ 10,594 ​ 10,594 Servicing assets Level 3 ​ 1,738 ​ 1,738 ​ 1,857 ​ 1,857 Accrued interest receivable Level 2 ​ 9,831 ​ 9,831 ​ 10,429 ​ 10,429 Financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits Level 2 ​ 1,628,393 ​ 1,628,042 ​ 1,557,959 ​ 1,561,502 Borrowed funds and subordinated debentures Level 2 ​ 180,310 ​ 181,727 ​ 210 ​ 212,358 Accrued interest payable Level 2 ​ 255 ​ 255 ​ 248 ​ 248 ​ (1) Includes corporate securities that are considered Level 3 and reported separately in the table under the “Fair Value on a Recurring Basis” heading. These securities had book values of $5.3 million and market values of $4.5 million. (2) Includes collateral-dependent impaired loans that are considered Level 3 and reported separately in the tables under the “Fair Value on a Nonrecurring Basis” heading. Collateral-dependent impaired loans, net of specific reserves totaled $12.6 million and $12.0 million at March 31, 2021 and December 31, 2020, respectively. Limitations Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-statement of condition financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the effect of fair value estimates have not been considered in the above estimates.

Securities

Securities3 Months Ended
Mar. 31, 2021
Securities
SecuritiesNOTE 7. Securities This table provides the major components of debt securities available for sale ("AFS") and equity securities with readily determinable fair values ("equity securities") at amortized cost and estimated fair value at March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ December 31, 2020 ​ ​ ​ Gross Gross ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ Estimated ​ Amortized ​ unrealized ​ unrealized ​ Estimated (In thousands) ​ cost ​ gains ​ losses ​ fair value ​ cost ​ gains ​ losses ​ fair value Available for sale: ​ ​ ​ ​ ​ ​ ​ ​ U.S. Government sponsored entities ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 2,000 ​ $ 3 ​ $ — ​ $ 2,003 State and political subdivisions ​ 2,355 ​ 20 ​ — ​ 2,375 ​ 2,935 ​ 34 ​ — ​ 2,969 Residential mortgage-backed securities ​ 14,498 ​ 515 ​ — ​ 15,013 ​ 16,765 ​ 645 ​ — ​ 17,410 Corporate and other securities ​ 15,696 ​ 160 ​ (914) ​ 14,942 ​ 24,221 ​ 132 ​ (1,118) ​ 23,235 Total debt securities available for sale ​ $ 32,549 ​ $ 695 ​ $ (914) ​ $ 32,330 ​ $ 45,921 ​ $ 814 ​ $ (1,118) ​ $ 45,617 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity securities ​ $ 2,112 ​ $ 184 ​ $ (75) ​ $ 2,221 ​ $ 2,112 ​ $ — ​ $ (158) ​ $ 1,954 ​ This table provides the remaining contractual maturities and yields of securities within the investment portfolios. The carrying value of securities at March 31, 2021 is distributed by contractual maturity. Mortgage-backed securities and other securities, which may have principal prepayment provisions, are distributed based on contractual maturity. Expected maturities will differ materially from contractual maturities as a result of early prepayments and calls. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ After one through ​ After five through ​ ​ ​ ​ ​ ​ Total carrying ​ ​ Within one year ​ five years ​ ten years ​ After ten years ​ value (In thousands, except percentages) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale at fair value: ​ ​ ​ ​ ​ ​ U.S. Government sponsored entities ​ $ — — % $ — — % $ — — % $ — — % $ — — % State and political subdivisions ​ 1,149 1.50 ​ 681 3.12 ​ — — ​ 545 2.74 ​ 2,375 2.25 ​ Residential mortgage-backed securities ​ 4 4.93 ​ 585 2.87 ​ 1,433 2.26 ​ 12,991 2.14 ​ 15,013 2.18 ​ Corporate and other securities ​ — — ​ — — ​ 10,404 4.69 ​ 4,538 3.15 ​ 14,942 4.22 ​ Total debt securities available for sale ​ $ 1,153 1.51 % $ 1,266 3.01 % $ 11,837 4.40 % $ 18,074 2.41 % $ 32,330 3.13 % Equity Securities at fair value: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity securities ​ $ — — % $ — — % $ — — % $ 2,221 2.34 % $ 2,221 2.34 % ​ The fair value of securities with unrealized losses by length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2021 and December 31, 2020 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ ​ ​ ​ Less than 12 months ​ 12 months and greater ​ Total ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ number in a ​ Estimated ​ Unrealized ​ Estimated ​ Unrealized ​ Estimated ​ Unrealized (In thousands, except number in a loss position) ​ loss position ​ fair value ​ loss ​ fair value ​ loss ​ fair value ​ loss Available for sale: ​ ​ ​ ​ ​ ​ Corporate and other securities 6 ​ $ 2,382 ​ $ (118) ​ $ 7,759 ​ $ (796) ​ $ 10,141 ​ $ (914) Total temporarily impaired securities 6 ​ $ 2,382 ​ $ (118) ​ $ 7,759 ​ $ (796) ​ $ 10,141 ​ $ (914) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ Less than 12 months ​ 12 months and greater ​ Total ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ number in a ​ Estimated ​ Unrealized ​ Estimated ​ Unrealized ​ Estimated ​ Unrealized (In thousands, except number in a loss position) ​ loss position ​ fair value ​ loss ​ fair value ​ loss ​ fair value ​ loss Available for sale: ​ ​ ​ ​ ​ ​ Corporate and other securities 9 ​ $ 4,793 ​ $ (20) ​ $ 9,157 ​ $ (1,098) ​ $ 13,950 ​ $ (1,118) Total temporarily impaired securities 9 ​ $ 4,793 ​ $ (20) ​ $ 9,157 ​ $ (1,098) ​ $ 13,950 ​ $ (1,118) ​ Unrealized Losses The unrealized losses in each of the categories presented in the tables above are discussed in the paragraphs that follow: U.S. government sponsored entities and state and political subdivision securities: Residential and commercial mortgage-backed securities: Corporate and other securities: Realized Gains and Losses Gross realized gains and losses on securities for the three months ended March 31, 2021 and 2020 are detailed in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 2020 ​ Available for sale: ​ ​ ​ ​ Realized gains ​ $ 43 ​ $ 296 ​ Realized losses ​ — ​ — ​ Total debt securities available for sale ​ 43 ​ 296 ​ Net gains on sales of securities ​ $ 43 ​ $ 296 ​ ​ The net realized gains are included in noninterest income in the Consolidated Statements of Income as net security gains. There were $43 thousand of gross realized gains during the three months ended March 31, 2021, compared to $296 thousand during the same period a year ago. There were no gross realized losses for the three months ended March 31, 2021 or 2020. For the three months ended March 31, 2021, the net gain is attributed to: ● the sale of six corporate bonds with a total book value of $7.0 million and resulting gains of $39 thousand, and ● the call of one taxable municipal security with a book value of $496 thousand and resulting gains of $4 thousand. For the three months ended March 31, 2020, the net gain is attributed to: ● the sale of one corporate bond with a book value of $2.2 million and resulting gains of $61 thousand, ● three mortage-backed securities with a total book value of $2.8 million and resulting gains of $57 thousand, ● one tax-exempt municipal security with a book value of $381 thousand and resulting gains of $27 thousand, ● one taxable municipal security with a book value of $456 thousand and resulting gains of $140 thousand, and ● the call of one tax-exempt municipal security with a book value of $485 thousand and resulting gains of $11 thousand. ​ Equity Securities Included in this category are Community Reinvestment Act ("CRA") investments and the Company’s current other equity holdings of financial institutions. Equity securities are defined to include (a) preferred, common and other ownership interests in entities including partnerships, joint ventures and limited liability companies and (b) rights to acquire or dispose of ownership interest in entities at fixed or determinable prices. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) 2021 2020 ​ Net gains (losses) recognized during the period on equity securities ​ $ 267 ​ $ (471) ​ Net gains recognized during the period on equity securities sold during the period ​ — ​ 5 ​ Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date ​ $ 267 ​ $ (466) ​ ​ Pledged Securities Securities with a carrying value of $1.5 million and $1.6 million at March 31, 2021 and December 31, 2020, respectively, were pledged to secure deposits, secure other borrowings and for other purposes required or permitted by law.

Loans

Loans3 Months Ended
Mar. 31, 2021
Loans
LoansNOTE 8. Loans The following table sets forth the classification of loans by class, including unearned fees, deferred costs and excluding the allowance for loan losses as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 31, 2021 December 31, 2020 SBA loans held for investment ​ $ 38,296 ​ $ 39,587 SBA PPP loans ​ ​ 169,117 ​ ​ 118,257 Commercial loans ​ ​ SBA 504 loans ​ 21,255 ​ 19,681 Commercial other ​ 113,982 ​ 118,280 Commercial real estate ​ 650,869 ​ 630,423 Commercial real estate construction ​ 66,972 ​ 71,404 Residential mortgage loans ​ 448,149 ​ 467,586 Consumer loans ​ ​ ​ ​ Home equity ​ 59,238 ​ 62,549 Consumer other ​ ​ 1,264 ​ ​ 3,551 Consumer construction loans ​ ​ 90,497 ​ ​ 87,164 Total loans held for investment ​ $ 1,659,639 ​ $ 1,618,482 SBA loans held for sale ​ 8,809 ​ 9,335 Total loans ​ $ 1,668,448 ​ $ 1,627,817 ​ Loans are made to individuals as well as commercial entities. Specific loan terms vary as to interest rate, repayment, and collateral requirements based on the type of loan requested and the credit worthiness of the prospective borrower. Credit risk tends to be geographically concentrated in that a majority of the loan customers are located in the markets serviced by the Bank. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. A description of the Company’s different loan segments follows: SBA Loans: On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The CARES Act includes a range of other provisions designed to support the U.S. economy and mitigate the impact of COVID-19 on financial institutions and their customers, including through the authorization of various relief programs and measures that the U.S. Department of the Treasury, the Small Business Administration, the Federal Reserve Board (“FRB”) and other federal banking agencies have implemented or may implement. The CARES Act provides assistance to small businesses through the establishment of the SBA Paycheck Protection Program ("PPP"). The PPP generally provides small businesses with funds to pay up to 24 weeks of payroll costs, including certain benefits. The funds are provided in the form of loans that may be fully or partially forgiven when used for payroll costs, interest on mortgages, rent, and utilities. The payments on these loans will be deferred for up to six months. Loans made after June 5, 2020, mature in five years, and loans made prior to June 5, 2020, mature in two years but can be extended to five years if the lender agrees. Forgiveness of the PPP loans is based on the borrower maintaining or quickly rehiring employees and maintaining salary levels. Most small businesses with 500 or fewer employees are eligible. Applications for the PPP loans started on April 3, 2020 and the application period was extended through August 8, 2020. As an existing SBA 7(a) lender, the Company opted to participate in the program. In December 2020, legislation was adopted providing additional funding for the PPP program and reopening applications on January 13, 2021 through March 31, 2021. Commercial Loans: Residential Mortgage, Consumer and Consumer Construction Loans: Inherent in the lending function is credit risk, which is the possibility a borrower may not perform in accordance with the contractual terms of their loan. A borrower’s inability to pay their obligations according to the contractual terms can create the risk of past due loans and, ultimately, credit losses, especially on collateral deficient loans. The Company minimizes its credit risk by loan diversification and adhering to credit administration policies and procedures. Due diligence on loans begins when we initiate contact regarding a loan with a borrower. Documentation, including a borrower’s credit history, materials establishing the value and liquidity of potential collateral, the purpose of the loan, the source of funds for repayment of the loan, and other factors, are analyzed before a loan is submitted for approval. The loan portfolio is then subject to on-going internal reviews for credit quality which in part is derived from ongoing collection and review of borrowers’ financial information, as well as independent credit reviews by an outside firm. The Company’s extension of credit is governed by the Credit Risk Policy which was established to control the quality of the Company’s loans. This policy and the underlying procedures are reviewed and approved by the Board of Directors on a regular basis. Credit Ratings For SBA 7(a), SBA 504 and commercial loans, management uses internally assigned risk ratings as the best indicator of credit quality. A loan’s internal risk rating is updated at least annually and more frequently if circumstances warrant a change in risk rating. The Company uses a 1 through 10 loan grading system that follows regulatory accepted definitions. Pass: Special Mention: not used to identify assets that have as their sole weakness credit data exceptions or collateral documentation exceptions that are not material to the repayment of the asset. Substandard: A risk rating of 9 is used for borrowers that have all the weaknesses inherent in a loan with a risk rating of 8, with the added characteristic that the weaknesses make collection of debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. The possibility of loss is extremely high, but because of certain important, reasonably specific pending factors that may work to strengthen the assets, the loans’ classification as estimated losses is deferred until a more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures; capital injection; perfecting liens on additional collateral; and refinancing plans. Partial charge-offs are likely. Loss: For residential mortgage, consumer and consumer construction loans, management uses performing versus nonperforming as the best indicator of credit quality. Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt. These credit quality indicators are updated on an ongoing basis, as a loan is placed on nonaccrual status as soon as management believes there is sufficient doubt as to the ultimate ability to collect interest on a loan. At March 31, 2021, there were $2.5 million of residential consumer loans in the process of foreclosure, compared to $4.8 million at December 31, 2020. The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ ​ SBA & Commercial loans - Internal risk ratings (In thousands) Pass Special mention Substandard Total SBA loans held for investment ​ $ 35,932 ​ $ 532 ​ $ 1,832 ​ $ 38,296 SBA PPP loans ​ ​ 169,117 ​ ​ — ​ ​ — ​ ​ 169,117 Commercial loans ​ ​ ​ ​ SBA 504 loans ​ 21,255 ​ — ​ — ​ 21,255 Commercial other ​ 105,509 ​ 5,413 ​ 3,060 ​ 113,982 Commercial real estate ​ 623,270 ​ 22,519 ​ 5,080 ​ 650,869 Commercial real estate construction ​ 66,972 ​ — ​ — ​ 66,972 Total commercial loans ​ 817,006 ​ 27,932 ​ 8,140 ​ 853,078 Total SBA and commercial loans ​ $ 1,022,055 ​ $ 28,464 ​ $ 9,972 ​ $ 1,060,491 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage & Consumer loans - Performing/Nonperforming (In thousands) ​ ​ Performing Nonperforming Total Residential mortgage loans ​ ​ ​ ​ $ 441,438 ​ $ 6,711 ​ $ 448,149 Consumer loans ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ ​ ​ 59,238 ​ — ​ 59,238 Consumer other ​ ​ ​ ​ ​ 1,264 ​ ​ — ​ ​ 1,264 Total consumer loans ​ ​ ​ ​ ​ 60,502 ​ ​ — ​ ​ 60,502 Consumer construction loans ​ ​ ​ ​ ​ 87,932 ​ ​ 2,565 ​ ​ 90,497 Total residential mortgage, consumer and consumer construction loans ​ ​ ​ ​ $ 589,872 ​ $ 9,276 ​ $ 599,148 ​ The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ SBA & Commercial loans - Internal risk ratings (In thousands) Pass Special mention Substandard Total SBA loans held for investment ​ $ 36,991 ​ $ 525 ​ $ 2,071 ​ $ 39,587 SBA PPP loans ​ ​ 118,257 ​ ​ — ​ ​ — ​ ​ 118,257 Commercial loans ​ ​ ​ ​ SBA 504 loans ​ 19,681 ​ — ​ — ​ 19,681 Commercial other ​ 109,672 ​ 5,533 ​ 3,075 ​ 118,280 Commercial real estate ​ 603,482 ​ 25,206 ​ 1,735 ​ 630,423 Commercial real estate construction ​ 71,404 ​ — ​ — ​ 71,404 Total commercial loans ​ 804,239 ​ 30,739 ​ 4,810 ​ 839,788 Total SBA and commercial loans ​ $ 959,487 ​ $ 31,264 ​ $ 6,881 ​ $ 997,632 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage & Consumer loans - Performing/Nonperforming (In thousands) ​ ​ Performing ​ Nonperforming ​ Total Residential mortgage loans ​ ​ $ 462,369 ​ $ 5,217 ​ $ 467,586 Consumer loans ​ ​ ​ ​ Home equity ​ ​ 61,254 ​ 1,295 ​ 62,549 Consumer other ​ ​ ​ ​ ​ 3,551 ​ ​ — ​ ​ 3,551 Total consumer loans ​ ​ ​ ​ ​ 64,805 ​ ​ 1,295 ​ ​ 66,100 Consumer construction loans ​ ​ ​ ​ ​ 85,414 ​ ​ 1,750 ​ ​ 87,164 Total residential mortgage, consumer and consumer construction loans ​ ​ $ 612,588 ​ $ 8,262 ​ $ 620,850 ​ Nonperforming and Past Due Loans Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt. Loans past due 90 days or more and still accruing interest are not included in nonperforming loans and generally represent loans that are well collateralized and in the process of collection. The risk of loss is difficult to quantify and is subject to fluctuations in collateral values, general economic conditions and other factors. The Company values its collateral through the use of appraisals, broker price opinions, and knowledge of its local market. The following tables set forth an aging analysis of past due and nonaccrual loans as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ ​ ​ ​ ​ 90+ days ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30 ‑ 59 days ​ 60 ‑ 89 days ​ and still ​ Nonaccrual ​ Total past ​ ​ ​ ​ ​ ​ (In thousands) ​ past due ​ past due ​ accruing ​ (1) ​ due ​ Current ​ Total loans SBA loans held for investment ​ $ 6,341 ​ $ — ​ $ — ​ $ 1,560 ​ $ 7,901 ​ $ 30,395 ​ $ 38,296 SBA PPP loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 169,117 ​ ​ 169,117 Commercial loans ​ ​ ​ ​ ​ ​ ​ ​ SBA 504 loans ​ — ​ — ​ — ​ — ​ — ​ 21,255 ​ 21,255 Commercial other ​ 43 ​ 60 ​ — ​ 340 ​ 443 ​ 113,539 ​ 113,982 Commercial real estate ​ 889 ​ 787 ​ — ​ 612 ​ 2,288 ​ 648,581 ​ 650,869 Commercial real estate construction ​ — ​ — ​ — ​ — ​ — ​ 66,972 ​ 66,972 Residential mortgage loans ​ 4,728 ​ 1,224 ​ 2,145 ​ 6,711 ​ 14,808 ​ 433,341 ​ 448,149 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ 49 ​ — ​ 183 ​ — ​ 232 ​ 59,006 ​ 59,238 Consumer other ​ ​ 7 ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 ​ ​ 1,257 ​ ​ 1,264 Consumer construction loans ​ ​ 854 ​ ​ 416 ​ ​ 212 ​ ​ 2,565 ​ ​ 4,047 ​ ​ 86,450 ​ ​ 90,497 Total loans held for investment ​ ​ 12,911 ​ ​ 2,487 ​ ​ 2,540 ​ ​ 11,788 ​ ​ 29,726 ​ ​ 1,629,913 ​ ​ 1,659,639 SBA loans held for sale ​ 2,664 ​ — ​ — ​ — ​ 2,664 ​ 6,145 ​ 8,809 Total loans ​ $ 15,575 ​ $ 2,487 ​ $ 2,540 ​ $ 11,788 ​ $ 32,390 ​ $ 1,636,058 ​ $ 1,668,448 ​ (1) At March 31, 2021, nonaccrual loans included $139 thousand of loans guaranteed by the SBA. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ 90+ days ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30 ‑ 59 days ​ 60 ‑ 89 days ​ and still ​ Nonaccrual ​ Total past ​ ​ ​ ​ ​ ​ (In thousands) ​ past due ​ past due ​ accruing ​ (1) ​ due ​ Current ​ Total loans SBA loans held for investment ​ $ 792 ​ $ 1,280 ​ $ — ​ $ 2,473 ​ $ 4,545 ​ $ 35,042 ​ $ 39,587 SBA PPP loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ 118,257 ​ ​ 118,257 Commercial loans ​ ​ ​ ​ ​ ​ ​ SBA 504 loans ​ — ​ — ​ — ​ — ​ — ​ 19,681 ​ 19,681 Commercial other ​ 186 ​ 201 ​ — ​ 266 ​ 653 ​ 117,627 ​ 118,280 Commercial real estate ​ 3,109 ​ 1,971 ​ — ​ 1,059 ​ 6,139 ​ 624,284 ​ 630,423 Commercial real estate construction ​ 1,047 ​ — ​ — ​ — ​ 1,047 ​ 70,357 ​ 71,404 Residential mortgage loans ​ 3,232 ​ 2,933 ​ 262 ​ 5,217 ​ 11,644 ​ 455,942 ​ 467,586 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ 393 ​ — ​ 187 ​ 1,295 ​ 1,875 ​ 60,674 ​ 62,549 Consumer other ​ ​ 3 ​ ​ 1 ​ ​ — ​ ​ — ​ ​ 4 ​ ​ 3,547 ​ ​ 3,551 Consumer construction loans ​ ​ 120 ​ ​ 796 ​ ​ — ​ ​ 1,750 ​ ​ 2,666 ​ ​ 84,498 ​ ​ 87,164 Total loans held for investment ​ ​ 8,882 ​ ​ 7,182 ​ ​ 449 ​ ​ 12,060 ​ ​ 28,573 ​ ​ 1,589,909 ​ ​ 1,618,482 SBA loans held for sale ​ 448 ​ — ​ — ​ — ​ 448 ​ 8,887 ​ 9,335 Total loans ​ $ 9,330 ​ $ 7,182 ​ $ 449 ​ $ 12,060 ​ $ 29,021 ​ $ 1,598,796 ​ $ 1,627,817 ​ (1) At December 31, 2020, nonaccrual loans included $371 thousand of loans guaranteed by the SBA. Impaired Loans The Company has defined impaired loans to be all nonperforming loans individually evaluated for impairment and TDRs. Management considers a loan impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract. Impairment is evaluated on an individual basis for SBA and commercial loans. The following table provides detail on the Company’s impaired loans that are individually evaluated for impairment with the associated allowance amount, if applicable, as of March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ Unpaid ​ ​ ​ ​ ​ ​ principal ​ Recorded ​ Specific (In thousands) ​ balance ​ investment ​ reserves With no related allowance: ​ ​ ​ ​ SBA loans held for investment (1) ​ $ 1,138 ​ $ 1,037 ​ $ — Commercial loans ​ ​ ​ Commercial real estate ​ 1,920 ​ 1,920 ​ — Total commercial loans ​ 1,920 ​ 1,920 ​ — Residential mortgage loans ​ ​ 6,090 ​ ​ 5,985 ​ ​ — Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 427 ​ ​ 427 ​ ​ — Consumer construction loans ​ ​ 1,780 ​ ​ 1,780 ​ ​ — Total impaired loans with no related allowance ​ 11,355 ​ 11,149 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance: ​ ​ ​ SBA loans held for investment (1) ​ 691 ​ 384 ​ 319 Commercial loans ​ ​ ​ Commercial other ​ 3,203 ​ 3,078 ​ 2,979 Commercial real estate ​ 140 ​ 20 ​ 20 Total commercial loans ​ 3,343 ​ 3,098 ​ 2,999 Residential mortgage loans ​ ​ 726 ​ ​ 726 ​ ​ 44 Consumer construction loans ​ ​ 785 ​ ​ 785 ​ ​ 189 Total impaired loans with a related allowance ​ 5,545 ​ 4,993 ​ 3,551 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total individually evaluated impaired loans: ​ ​ ​ SBA loans held for investment (1) ​ 1,829 ​ 1,421 ​ 319 Commercial loans ​ ​ ​ Commercial other ​ 3,203 ​ 3,078 ​ 2,979 Commercial real estate ​ 2,060 ​ 1,940 ​ 20 Total commercial loans ​ 5,263 ​ 5,018 ​ 2,999 Residential mortgage loans ​ ​ 6,816 ​ ​ 6,711 ​ ​ 44 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 427 ​ ​ 427 ​ ​ — Consumer construction loans ​ ​ 2,565 ​ ​ 2,565 ​ ​ 189 Total individually evaluated impaired loans ​ $ 16,900 ​ $ 16,142 ​ $ 3,551 ​ (1) Balances are reduced by amount guaranteed by the SBA of $139 thousand at March 31, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table provides detail on the Company’s impaired loans that are individually evaluated for impairment with the associated allowance amount, if applicable, as of December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ Unpaid ​ ​ ​ ​ ​ ​ principal ​ Recorded ​ Specific (In thousands) ​ balance ​ investment ​ reserves With no related allowance: ​ ​ ​ ​ SBA loans held for investment (1) ​ $ 1,799 ​ $ 1,698 ​ $ — Commercial loans ​ ​ ​ Commercial real estate ​ 1,462 ​ 1,462 ​ — Total commercial loans ​ 1,462 ​ 1,462 ​ — Residential mortgage loans ​ ​ 4,080 ​ ​ 3,975 ​ ​ — Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 1,295 ​ ​ 1,295 ​ ​ — Consumer construction loans ​ ​ 1,750 ​ ​ 1,750 ​ ​ — Total impaired loans with no related allowance ​ 10,386 ​ 6,205 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance: ​ ​ ​ SBA loans held for investment (1) ​ 434 ​ 404 ​ 324 Commercial loans ​ ​ ​ Commercial other ​ 3,160 ​ 3,160 ​ 3,106 Commercial real estate ​ 1,730 ​ 1,080 ​ 576 Total commercial loans ​ 4,890 ​ 4,240 ​ 3,682 Residential mortgage loans ​ ​ 1,242 ​ ​ 1,242 ​ ​ 101 Total impaired loans with a related allowance ​ 6,566 ​ 5,886 ​ 4,107 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total individually evaluated impaired loans: ​ ​ ​ SBA loans held for investment (1) ​ 2,233 ​ 2,102 ​ 324 Commercial loans ​ ​ ​ ​ ​ ​ Commercial other ​ 3,160 ​ 3,160 ​ 3,106 Commercial real estate ​ 3,192 ​ 2,542 ​ 576 Total commercial loans ​ 6,352 ​ 5,702 ​ 3,682 Residential mortgage loans ​ ​ 5,322 ​ ​ 5,217 ​ ​ 101 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 1,295 ​ ​ 1,295 ​ ​ — Consumer construction loans ​ ​ 1,750 ​ ​ 1,750 ​ ​ — Total individually evaluated impaired loans ​ $ 16,952 ​ $ 16,066 ​ $ 4,107 ​ (1) Balances are reduced by amount guaranteed by the SBA of $371 thousand at December 31, 2020. ​ ​ ​ The following table presents the average recorded investments in impaired loans and the related amount of interest recognized during the time period in which the loans were impaired for the three months ended March 31, 2021 and 2020. The average balances are calculated based on the month-end balances of impaired loans. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method, and therefore no interest income is recognized. The interest income recognized on impaired loans noted below represents primarily accruing TDRs and nominal amounts of income recognized on a cash basis for well-collateralized impaired loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 ​ 2020 ​ ​ ​ Interest ​ ​ Interest ​ ​ ​ ​ ​ income ​ ​ ​ ​ income ​ ​ Average ​ recognized ​ Average ​ recognized ​ ​ recorded ​ on impaired ​ recorded ​ on impaired (In thousands) ​ investment ​ loans ​ investment ​ loans SBA loans held for investment (1) ​ $ 1,901 ​ $ 16 ​ $ 1,128 ​ $ 3 Commercial loans ​ ​ ​ ​ SBA 504 loans ​ — ​ — ​ 600 ​ 32 Commercial other ​ 374 ​ 3 ​ 5 ​ 10 Commercial real estate ​ 2,237 ​ 56 ​ 1,047 ​ 12 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 844 ​ ​ 18 ​ ​ — ​ ​ — Consumer construction loans ​ ​ 2,610 ​ ​ 10 ​ ​ — ​ ​ — Total ​ $ 7,966 ​ $ 103 ​ $ 2,780 ​ $ 57 ​ (1) Balances are reduced by the average amount guaranteed by the SBA of $293 thousand and $182 thousand for the three months ended March 31, 2021 and 2020, respectively. TDRs The Company’s loan portfolio also includes certain loans that have been modified as TDRs. TDRs occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider, unless it results in a delay in payment that is insignificant. These concessions typically include reductions in interest rate, extending the maturity of a loan, or a combination of both. Under the CARES Act and regulatory guidance issued in regards to the COVID-19 pandemic, loan payment deferrals for periods of up to 180 days granted to borrowers adversely effected by the pandemic are not considered TDR’s if the borrower was current on its loan payments at year end 2019 or until the deferral was granted. When the Company modifies a loan, management evaluates for any possible impairment using either the discounted cash flows method, where the value of the modified loan is based on the present value of expected cash flows, discounted at the contractual interest rate of the original loan agreement, or by using the fair value of the collateral less selling costs if the loan is collateral-dependent. If management determines that the value of the modified loan is less than the recorded investment in the loan, impairment is recognized by segment or class of loan, as applicable, through an allowance estimate or charge-off to the allowance. This process is used, regardless of loan type, and for loans modified as TDRs that subsequently default on their modified terms. TDRs of $1.1 million and $663 thousand are included in the impaired loan numbers as of March 31, 2021 and December 31, 2020, respectively. The increase in TDRs was due to the addition of two loans, partially offset by principal pay downs. At March 31, 2021 and December 31, 2020, there were no specific reserves on the TDRs. The TDRs are in accrual status since they are performing in accordance with the restructured terms. There are no commitments to lend additional funds on these loans. There were two loans modified as TDRs during the three months ended March 31, 2021. There were no loans modified during the three months ended March 31, 2020 that were deemed to be TDRs. The following table details loans modified during the three months ended March 31, 2021, including the number of modifications and the recorded investment at the time of the modification: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2021 ​ ​ Number of ​ Recorded investment (In thousands, except number of contracts) ​ contracts ​ at time of modification Home equity ​ 2 ​ $ 427 Total ​ 2 ​ $ 427 ​ To date, the Company’s TDRs consisted of principal reduction, interest only periods and maturity extensions. There were no loans modified as a TDR within the previous 12 months that subsequently defaulted at some point during the three months ended March 31, 2021. In this case, the subsequent default is defined as 90 days past due or transferred to nonaccrual status.

Allowance for Loan Losses and R

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments3 Months Ended
Mar. 31, 2021
Allowance for Loan Losses and Reserve for Unfunded Loan Commitments
Allowance for Loan Losses and Reserve for Unfunded Loan CommitmentsNOTE 9. Allowance for Loan Losses and Reserve for Unfunded Loan Commitments Allowance for Loan Losses The Company has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. At a minimum, the adequacy of the allowance for loan losses is reviewed by management on a quarterly basis. For purposes of determining the allowance for loan losses, the Company has segmented the loans in its portfolio by loan type. Loans are segmented into the following pools: SBA 7(a), commercial, residential mortgages, consumer, and consumer construction loans. Certain portfolio segments are further broken down into classes based on the associated risks within those segments and the type of collateral underlying each loan. Commercial loans are divided into the following five classes: commercial real estate, commercial real estate construction, unsecured business line of credit, commercial other, and SBA 504. Consumer loans are divided into two classes as follows: home equity and other. The standardized methodology used to assess the adequacy of the allowance includes the allocation of specific and general reserves. The same standard methodology is used, regardless of loan type. Specific reserves are made to individual impaired loans and TDRs (see Note 1 for additional information on this term). The general reserve is set based upon a representative average historical net charge-off rate adjusted for the following environmental factors: delinquency and impairment trends, charge-off and recovery trends, volume and loan term trends, changes in risk and underwriting policy trends, staffing and experience changes, national and local economic trends, industry conditions and credit concentration changes. Within the five-year historical net charge-off rate, the Company weights the past three years more heavily as it believes it is more indicative of future charge-offs. All of the environmental factors are ranked and assigned a basis points value based on the following scale: low, low moderate, moderate, high moderate and high risk. Each environmental factor is evaluated separately for each class of loans and risk weighted based on its individual characteristics. ● For SBA 7(a) and commercial loans, the estimate of loss based on pools of loans with similar characteristics is made through the use of a standardized loan grading system that is applied on an individual loan level and updated on a continuous basis. The loan grading system incorporates reviews of the financial performance of the borrower, including cash flow, debt-service coverage ratio, earnings power, debt level and equity position, in conjunction with an assessment of the borrower’s industry and future prospects. It also incorporates analysis of the type of collateral and the relative loan to value ratio. ● For residential mortgage, consumer, and consumer construction loans, the estimate of loss is based on pools of loans with similar characteristics. Factors such as credit score, delinquency status and type of collateral are evaluated. Factors are updated frequently to capture the recent behavioral characteristics of the subject portfolios, as well as any changes in loss mitigation or credit origination strategies, and adjustments to the reserve factors are made as needed. According to the Company’s policy, a loss (“charge-off”) is to be recognized and charged to the allowance for loan losses as soon as a loan is recognized as uncollectable. All credits which are 90 days past due must be analyzed for the Company’s ability to collect on the credit. Once a loss is known to exist, the charge-off approval process is immediately expedited. This charge-off policy is followed for all loan types. The allocated allowance is the total of identified specific and general reserves by loan category. The allocation is not necessarily indicative of the categories in which future losses may occur. The total allowance is available to absorb losses from any segment of the portfolio. The following tables detail the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2021 ​ SBA held ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ (In thousands) ​ investment ​ Commercial ​ Residential ​ Consumer ​ construction ​ Total Balance, beginning of period ​ $ 1,301 ​ $ 14,992 ​ $ 5,318 ​ $ 681 ​ $ 813 ​ $ 23,105 Charge-offs ​ (282) ​ (373) ​ — ​ (1) ​ — ​ (656) Recoveries ​ 15 ​ 1 ​ — ​ — ​ — ​ 16 Net charge-offs ​ (267) ​ (372) ​ — ​ (1) ​ — ​ (640) Provision for (credit to) loan losses charged to expense ​ 620 ​ 107 ​ (309) ​ (131) ​ 213 ​ 500 Balance, end of period ​ $ 1,654 ​ $ 14,727 ​ $ 5,009 ​ $ 549 ​ $ 1,026 ​ $ 22,965 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2020 ​ SBA held ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ (In thousands) ​ investment ​ Commercial ​ Residential ​ Consumer ​ construction ​ Total Balance, beginning of period ​ $ 1,079 ​ $ 9,722 ​ $ 4,254 ​ $ 625 ​ $ 715 ​ $ 16,395 Charge-offs ​ (25) ​ (300) ​ (200) ​ — ​ — ​ (525) Recoveries ​ 5 ​ 1 ​ — ​ — ​ — ​ 6 Net charge-offs ​ (20) ​ (299) ​ (200) ​ — ​ — ​ (519) Provision for (credit to) loan losses charged to expense ​ (54) ​ 706 ​ 709 ​ 46 ​ 93 ​ 1,500 Balance, end of period ​ $ 1,005 ​ $ 10,129 ​ $ 4,763 ​ $ 671 ​ $ 808 ​ $ 17,376 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following tables present loans and their related allowance for loan losses, by portfolio segment, as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ SBA held ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ (In thousands) ​ investment ​ Commercial ​ Residential ​ Consumer ​ construction ​ Total Allowance for loan losses ending balance: ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 319 ​ $ 2,999 ​ $ 44 ​ $ — ​ $ 189 ​ $ 3,551 Collectively evaluated for impairment ​ 1,335 ​ 11,728 ​ 4,965 ​ 549 ​ 837 ​ 19,414 Total ​ $ 1,654 ​ $ 14,727 ​ $ 5,009 ​ $ 549 ​ $ 1,026 ​ $ 22,965 Loan ending balances: ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 1,421 ​ $ 5,018 ​ $ 6,711 ​ $ 427 ​ $ 2,565 ​ $ 16,142 Collectively evaluated for impairment ​ 205,992 ​ 848,060 ​ 441,438 ​ 60,075 ​ 87,932 ​ 1,643,497 Total ​ $ 207,413 ​ $ 853,078 ​ $ 448,149 ​ $ 60,502 ​ $ 90,497 ​ $ 1,659,639 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ SBA held ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ (In thousands) ​ investment ​ Commercial ​ Residential ​ Consumer ​ construction ​ Total Allowance for loan losses ending balance: ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 324 ​ $ 3,682 ​ $ 101 ​ $ — ​ $ — ​ $ 4,107 Collectively evaluated for impairment ​ 977 ​ 11,310 ​ 5,217 ​ 681 ​ 813 ​ 18,998 Total ​ $ 1,301 ​ $ 14,992 ​ $ 5,318 ​ $ 681 ​ $ 813 ​ $ 23,105 Loan ending balances: ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 2,102 ​ $ 5,702 ​ $ 5,217 ​ $ 1,295 ​ $ 1,750 ​ $ 16,066 Collectively evaluated for impairment ​ 155,742 ​ 834,086 ​ 462,369 ​ 64,805 ​ 85,414 ​ 1,602,416 Total ​ $ 157,844 ​ $ 839,788 ​ $ 467,586 ​ $ 66,100 ​ $ 87,164 ​ $ 1,618,482 ​ Changes in Methodology The Company did not make any changes to its allowance for loan losses methodology in the current period. Reserve for Unfunded Loan Commitments In addition to the allowance for loan losses, the Company maintains a reserve for unfunded loan commitments at a level that management believes is adequate to absorb estimated probable losses. Adjustments to the reserve are made through other expense and applied to the reserve which is classified as other liabilities. At March 31, 2021, a $310 thousand commitment reserve was reported on the balance sheet as an “other liability”, compared to a $288 thousand commitment reserve at December 31, 2020, due to a larger loan portfolio requiring a larger general reserve.

New Accounting Pronouncements

New Accounting Pronouncements3 Months Ended
Mar. 31, 2021
New Accounting Pronouncements and Changes in Accounting Principles
New Accounting PronouncementsNOTE 10. New Accounting Pronouncements ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 was issued to replace the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. For public business entities, ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. In May 2019, FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief." ASU 2019-05 was issued to address concerns with the adoption of ASU 2016-13. ASU 2019-05 gives entities the ability to irrevocably elect the fair value option in Subtopic 825-10 for certain existing financial assets upon transition to ASU 2016-03. Financial assets that are eligible for this fair value election are those that qualify under Subtopic 825-10 and are within the scope of Subtopic 326-10, "Financial Instruments - Credit Losses - Measured at Amortized Costs." An exception to this is held-to-maturity debt securities, which do not qualify for this transition election. The effective date for the amendment is the same as the effective date in ASU 2016-03. In November 2019, FASB issued ASU 2019-10, "Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates." ASU 2019-10 was issued to defer the effective dates for certain guidance in its Accounting Standard Codification ("ASC") for certain entities. The amendments in this update amend the mandatory effective dates for ASC 326, "Financial Instruments - Credit Losses", for entities eligible to be smaller reporting companies as defined by the SEC for fiscal years beginning after December 15, 2022, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements. In November 2019, FASB issued ASU 2019-11, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU 2019-11 was issued to address issues raised by stakeholders during the implementation of ASU 2016-13. ASU 2019-11 provides transition relief when adjusting the effective interest rate for troubled debt restructurings ("TDRs") that exist as of the adoption date, extends the disclosure relief in ASU 2019-04 to disclose accrued interest receivable balances separately from the amortized cost basis to additional disclosures involving amortized cost basis, and provides clarification regarding application of the guidance in paragraph 326-20-35-6 for financial assets secured by collateral maintenance provisions that provides a practical expedient to measure the estimate of expected credit losses by comparing the amortized cost basis of a financial asset and the fair value of collateral securing the financial asset as of the reporting date. The effective date and transition requirements for the amendment are the same as the effective date and transition requirements in ASU 2016-13. ASU 2019- 12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." ASU 2019-12 removes the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items and removes the exception to the interim period income tax accounting when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 also simplifies the accounting for income taxes by requiring that an entity recognize a franchise tax that is partially based on income as an income-based tax, that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill originally was recognized, and that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. For public business entities, ASU 2019-12 is effective for interim and annual periods beginning after December 15, 2020. The Company adopted this standard as of January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ASU 2020-01, "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force)." ASU 2020-01 clarifies that the observable price changes in orderly transactions that should be considered when applying the measurement alternative in accordance with ASC 321 include transactions that require it to either apply or discontinue the equity method of accounting under ASC 323. ASU 2020-01 also addresses questions about how to apply the guidance in Topic 815, “Derivatives and Hedging,” for certain forward contracts and purchased options to purchase securities that, upon settlement or exercise, would be accounted for under the equity method of accounting. The ASU clarifies that, for the purpose of applying ASC 815-10-15- 141(a), an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with the financial instruments guidance in Topic 825, “Financial Instruments.” For public business entities, ASU 2020-01 is effective for interim and annual periods beginning after December 15, 2020. The Company adopted this standard as of January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ASU 2020- 03, "Codification Improvement to Financial Instruments." ASU 2020-03 clarifies that all entities are required to provide the fair value option disclosures in paragraphs 825-10-50-24 through 50-32 of the FASB’s Accounting Standards Codification (ASC). ASU 2020-03 also clarifies that the contractual term of a net investment in a lease determined in accordance with ASC 842, “Leases,” should be the contractual term used to measure expected credit losses under ASC 326, “Financial Instruments – Credit Losses.” ASU 2020-03 also addresses amendments to ASC 860-20, “Transfers and Servicing – Sales of Financial Assets,” clarify that when an entity regains control of financial assets sold, an allowance for credit losses should be recorded in accordance with ASC 326. The effective date and transition requirements for the amendment are the same as the effective date and transition requirements in ASU 2016-13. The Company is currently evaluating the impact of the adoption of ASU 2020-03 on its consolidated financial statements. ASU 2020- 04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASU 2020-04 provides temporary optional guidance intended to ease the burden of reference rate reform on financial reporting. The guidance provides optional expedients and exceptions for applying existing guidance to contract modifications, hedging relationships and other transactions that are expected to be affected by reference rate reform and meet certain scope guidance. ASU 2020-04 provides various optional expedients, including the following, for hedging relationships affected by reference rate reform, if certain criteria are met: ● An entity can change certain critical terms of the hedging instrument or hedged item or transaction without having to dedesignate the relationship. ● For fair value hedging relationships in which the designated interest rate is LIBOR or another rate that is expected to be discontinued, an entity may change the hedged risk to another permitted benchmark rate without dedesignating the relationship. ● For cash flow hedging relationships in which the designated hedged risk is LIBOR or another rate that is expected to be discontinued, an entity may assert that the occurrence of the hedged forecasted transaction remains probable. ● Certain qualifying conditions for the shortcut method and other methods that assume perfect effectiveness may be disregarded. In addition, ASU 2020-04 permits an entity to make a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that were classified as held to maturity before January 1, 2020. ASU 2020-04 was effective upon its issuance on March 12, 2020. However, it cannot be applied to contract modifications that occur after December 31, 2022. With certain exceptions, the ASU also cannot be applied to hedging relationships entered into or evaluated after that date. The Company is currently evaluating the various optional expedients as well as impact of the adoption of ASU 2020-04 on its consolidated financial statements. ​ ASU 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity.” ASU 2020-06 was issued to address the complexities of its guidance for certain financial instruments with characteristics of liabilities and equity, including: ● Removing the accounting models that require beneficial conversion features or cash conversion features associated with convertible instruments to be recognized as a separate component of equity. ● Adding certain disclosure requirements for convertible instruments. ● Amending the guidance for the derivatives scope exception for contracts in an entity’s own equity. ● Simplifying the diluted earning per share calculation for certain situations. For public business entities, ASU 2020-06 is effective for interim and annual periods beginning after December 15, 2021. The Company is currently evaluating the impact of the adoption of ASU 2020-06 on its consolidated financial statements. ​ ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” ASU 2021-01 was issued to clarify certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. In addition, the ASU clarifies that a receive-variable-rate, pay-variable-rate cross-currency interest rate swap may be considered eligible as a hedging instrument in a net investment hedge if both legs of the swap do not have the same repricing intervals and dates as a result of the reference rate reform. ASU 2021-01 became effective January 7, 2021.

Derivative Financial Instrument

Derivative Financial Instruments and Hedging Activities3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure
Derivative Financial Instruments and Hedging ActivitiesNOTE 11. Derivative Financial Instruments and Hedging Activities Derivative Financial Instruments The Company has derivative financial instruments in the form of interest rate swap agreements, which derive their value from underlying interest rates. These transactions involve both credit and market risk. The notional amounts are amounts on which calculations, payments, and the value of the derivatives are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such difference, which represents the fair value of the derivative instrument, is reflected on the Company’s balance sheet as other assets or other liabilities. The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to any derivative agreement. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail their obligations. The Company deals only with primary dealers. Derivative instruments are generally either negotiated OTC contracts or standardized contracts executed on a recognized exchange. Negotiated OTC derivative contracts are generally entered into between two counterparties that negotiate specific agreement terms, including the underlying instrument, amount, exercise prices and maturity. Risk Management Policies – Hedging Instruments The primary focus of the Company’s asset/liability management program is to monitor the sensitivity of the Company’s net portfolio value and net income under varying interest rate scenarios to take steps to control its risks. On a quarterly basis, the Company evaluates the effectiveness of entering into any derivative agreement by measuring the cost of such an agreement in relation to the reduction in net portfolio value and net income volatility within an assumed range of interest rates. Interest Rate Risk Management – Cash Flow Hedging Instruments The Company has variable rate debt as a source of funds for use in the Company’s lending and investment activities and for other general business purposes. These debt obligations expose the Company to variability in interest payments due to changes in interest rates. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense decreases. Management believes it is prudent to limit the variability of a portion of its interest payments and, therefore hedges its variable-rate interest payments. To meet this objective, management enters into interest rate swap agreements whereby the Company receives variable interest rate payments and makes fixed interest rate payments during the contract period. At March 31, 2021, the Company had a total of 4 interest rate swaps designated as cash flow hedging instruments with a notional amount of $70.0 million, compared to 5 with a notional amount of $80.0 million at December 31, 2020. At March 31, 2021 and December 31, 2020, the Company had $1.5 million in cash collateral pledged for these derivatives which was included in federal funds sold and interest-bearing deposits. A summary of the Company’s outstanding interest rate swap agreements used to hedge variable rate debt at March 31, 2021 and December 31, 2020, respectively is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except percentages and years) March 31, 2021 December 31, 2020 Notional amount ​ $ 70,000 ​ $ 80,000 ​ Fair value ​ $ (219) ​ $ (1,026) ​ Weighted average pay rate ​ 1.05 % 1.19 % Weighted average receive rate ​ 0.23 % 0.89 % Weighted average maturity in years ​ 2.06 ​ 2.20 ​ Number of contracts ​ 4 ​ 5 ​ ​ During the three months ended March 31, 2021, the Company received variable rate London Interbank Offered Rate ("LIBOR") payments from and paid fixed rates in accordance with its interest rate swap agreements. At March 31, 2021, the unrealized loss relating to interest rate swaps was recorded as a derivative liability, whereas at December 31, 2020, the unrealized gain relating to interest rate swaps was recorded as a derivative asset. Changes in the fair value of the interest rate swaps designated as hedging instruments of the variability of cash flows associated with long-term debt are reported in other comprehensive income. The following table presents the net gains and losses recorded in other comprehensive income and the consolidated financial statements relating to the cash flow derivative instruments at March 31, 2021 and 2020, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 2020 ​ Gain (loss) recognized in OCI on derivatives ​ $ 807 ​ $ (1,410) ​ ​

Employee Benefit Plans

Employee Benefit Plans3 Months Ended
Mar. 31, 2021
Employee Benefit Plans
Employee Benefit PlansNOTE 12. Employee Benefit Plans Stock Option Plans The Company has incentive and nonqualified option plans, which allow for the grant of options to officers, employees and members of the Board of Directors. Grants under the Company’s incentive and nonqualified option plans generally vest over 3 years and must be exercised within 10 years of the date of grant. Transactions under the Company’s stock option plans for the three months ended March 31, 2021 are summarized in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Weighted ​ average ​ ​ ​ ​ ​ ​ ​ average ​ remaining ​ Aggregate ​ ​ ​ ​ exercise ​ contractual ​ intrinsic ​ ​ Shares ​ price ​ life in years ​ value Outstanding at December 31, 2020 672,800 ​ $ 16.42 6.8 ​ $ 1,952,568 Options granted 89,000 ​ 19.21 ​ ​ ​ Options exercised (12,467) ​ 6.43 ​ ​ ​ Options forfeited — ​ — ​ ​ ​ Options expired — ​ — ​ ​ ​ Outstanding at March 31, 2021 749,333 ​ $ 16.91 7.1 ​ $ 3,858,402 Exercisable at March 31, 2021 ​ 471,179 ​ $ 15.18 5.9 ​ $ 3,228,220 ​ On April 25, 2019, the Company adopted the 2019 Equity Compensation Plan providing for grants of up to 500,000 shares to be allocated between incentive and non-qualified stock options, restricted stock awards, performance units and deferred stock. The Plan replaced all previously approved and established equity plans then currently in effect. As of March 31, 2021, 281,500 options and 73,150 shares of restricted stock have been awarded from the plan leaving 145,350 shares available for future grants. The fair values of the options granted during the three months ended March 31, 2021 and 2020 were estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 2020 ​ Number of options granted ​ 89,000 ​ 101,000 ​ Weighted average exercise price ​ $ 19.21 ​ $ 20.39 ​ Weighted average fair value of options ​ $ 7.72 ​ $ 5.54 ​ Expected life in years (1) ​ 8.38 ​ 8.66 ​ Expected volatility (2) ​ 43.69 % 27.13 % Risk-free interest rate (3) ​ 1.14 % 1.55 % Dividend yield (4) ​ 1.68 % 1.61 % ​ (1) The expected life of the options was estimated based on historical employee behavior and represents the period of time that options granted are expected to be outstanding. (2) The expected volatility of the Company’s stock price was based on the historical volatility over the period commensurate with the expected life of the options. (3) The risk-free interest rate is the U.S. Treasury rate commensurate with the expected life of the options on the date of grant. (4) The expected dividend yield is the projected annual yield based on the grant date stock price. Upon exercise, the Company issues shares from its authorized but unissued common stock to satisfy the options. The following table presents information about options exercised during the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 2020 ​ Number of options exercised ​ 12,467 ​ 5,500 ​ Total intrinsic value of options exercised ​ $ 170,023 ​ $ 86,241 ​ Cash received from options exercised ​ $ 80,113 ​ $ 34,265 ​ Tax deduction realized from options ​ $ 51,151 ​ $ 25,264 ​ ​ The following table summarizes information about stock options outstanding and exercisable at March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options outstanding ​ Options exercisable ​ ​ ​ Weighted average Weighted ​ Weighted ​ ​ Options ​ remaining contractual ​ average ​ Options ​ average Range of exercise prices ​ outstanding ​ life (in years) ​ exercise price ​ exercisable ​ exercise price $0.00 - $6.00 33,000 1.4 ​ $ 5.59 33,000 ​ $ 5.59 $6.01 - $12.00 146,800 4.2 ​ 8.95 146,800 ​ 8.95 $12.01 - $18.00 132,533 7.8 ​ 16.37 69,201 ​ 15.72 $18.01 - $24.00 437,000 8.3 ​ 20.61 222,178 ​ 20.56 Total 749,333 7.1 ​ $ 16.91 367,869 ​ $ 15.18 ​ Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") Topic 718, “Compensation - Stock Compensation,” ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 2020 Compensation expense ​ ​ $ 207,602 ​ $ 192,489 Income tax benefit ​ ​ $ 59,997 ​ $ 55,629 ​ As of March 31, 2021, unrecognized compensation costs related to nonvested share-based compensation arrangements granted under the Company’s stock option plans totaled approximately $1.7 million. That cost is expected to be recognized over a weighted average period of 2.3 years. Restricted Stock Awards Restricted stock is issued under the 2019 Equity Compensation Plan to reward employees and directors and to retain them by distributing stock over a period of time. Restricted stock awards granted to date vest over a period of 4 years and are recognized as compensation to the recipient over the vesting period. The awards are recorded at fair market value at the time of grant and amortized into salary expense on a straight line basis over the vesting period. The following table summarizes nonvested restricted stock activity for the three months ended March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ Average grant ​ ​ Shares ​ date fair value Nonvested restricted stock at December 31, 2020 87,972 ​ $ 19.26 Granted 30,000 ​ 19.46 Cancelled — ​ — Vested (26,633) ​ 18.76 Nonvested restricted stock at March 31, 2021 91,339 ​ $ 19.47 ​ Restricted stock awards granted during the three months ended March 31, 2021 and 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 2020 ​ Number of shares granted ​ 30,000 ​ 15,000 ​ Average grant date fair value ​ $ 19.46 ​ $ 16.63 ​ ​ Compensation expense related to restricted stock for the three months ended March 31, 2021 and 2020 is detailed in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ ​ 2021 2020 ​ Compensation expense ​ $ 166,349 ​ $ 172,904 ​ Income tax benefit ​ $ 48,075 ​ $ 49,969 ​ ​ As of March 31, 2021, there was approximately $1.6 million of unrecognized compensation cost related to nonvested restricted stock awards granted under the Company’s stock incentive plans. That cost is expected to be recognized over a weighted average period of 2.9 years. 401(k) Savings Plan The Bank has a 401(k) savings plan covering substantially all employees. Under the Plan, an employee can contribute up to 80 percent of their salary on a tax deferred basis. The Bank may also make discretionary contributions to the Plan. The Bank contributed $261 thousand and $185 thousand to the Plan during the three months ended March 31, 2021 and 2020, respectively. Deferred Fee Plan The Company has a deferred fee plan for Directors and eligible management. Directors of the Company have the option to elect to defer up to 100 percent of their respective retainer and Board of Director fees, and each eligible member of management has the option to elect to defer up to 100 percent of their total compensation. Director and officer deferred fees totaled $128 thousand and $491 thousand during the three months ended March 31, 2021 and 2020, respectively. The interest paid on the deferred balances totaled $28 thousand during the three months ended March 31, 2021 and 2020, respectively. The deferred balances distributed totaled $3 thousand during the three months ended March 31, 2021 and 2020, respectively. Benefit Plans In addition to the 401(k) savings plan which covers substantially all employees, in 2015 the Company established an unfunded supplemental defined benefit plan to provide additional retirement benefits for the President and Chief Executive Officer (“CEO”) and unfunded, non-qualified deferred retirement plans for certain other key executives. On June 4, 2015, the Company approved the Supplemental Executive Retirement Plan (“SERP”) pursuant to which the President and CEO is entitled to receive certain supplemental nonqualified retirement benefits. The retirement benefit under the SERP is an amount equal to sixty percent (60%) of the average of the President and CEO’s base salary for the thirty-six The President and CEO commenced vesting in this retirement benefit on January 1, 2014, and vests an additional three percent (3%) each year until fully vested on January 1, 2024. In the event that the President and CEO’s separation from service from the Company were to occur prior to full vesting, the President and CEO would be entitled to and shall be paid the vested portion of the retirement benefit calculated as of the date of separation from service. Notwithstanding the foregoing, upon a Change in Control, and provided that within 6 months following the Change in Control the President and CEO is involuntarily terminated for reasons other than “cause” or the President and CEO resigns for “good reason,” as such is defined in the SERP, or the President and CEO voluntarily terminates his employment after being offered continued employment in a position that is not a “Comparable Position,” as such is also defined in the SERP, the President and CEO shall become one hundred percent (100%) vested in the full retirement benefit. No contributions or payments have been made during the three months ended March 31, 2021. The following table summarizes the components of the net periodic pension cost of the defined benefit plan recognized during the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 2020 ​ Service cost (1) ​ ​ $ (34) ​ $ 31 ​ Interest cost ​ ​ 34 ​ 37 ​ Amortization of prior service cost ​ ​ 21 ​ 21 ​ Net periodic benefit cost ​ ​ $ 21 ​ $ 89 ​ ​ (1) Reduction in service cost totaling ​ The following table summarizes the changes in benefit obligations of the defined benefit plan during the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) 2021 2020 ​ Benefit obligation, beginning of year ​ $ 3,845 ​ $ 3,571 ​ Service cost (1) ​ (34) ​ 31 ​ Interest cost ​ 34 ​ 37 ​ Benefit obligation, end of period ​ $ 3,845 ​ $ 3,639 ​ ​ (1) Reduction in service cost totaling ​ On October 22, 2015, the Company entered into an Executive Incentive Retirement Plan (the “Plan”) with key executive officers. The Plan has an effective date of January 1, 2015. The Plan is an unfunded, nonqualified deferred compensation plan. For any Plan Year, a guaranteed annual Deferral Award percentage of seven and one half percent (7.5%) of the participant’s annual base salary will be credited to each Participant’s Deferred Benefit Account. A discretionary annual Deferral Award equal to seven and one half percent (7.5%) of the participant’s annual base salary may be credited to the Participant’s account in addition to the guaranteed Deferral Award, if the Bank exceeds the benchmarks set forth in the Annual Executive Bonus Matrix. The total Deferral Award shall never exceed fifteen percent (15%) of the participant’s base salary for any given Plan Year. Each Participant shall be one hundred percent (100%) vested in all Deferral Awards as of the date they are awarded. As of March 31, 2021, the Company had total year to date expenses of $35 thousand related to the Plan. The Plan is reflected on the Company’s balance sheet as accrued expenses. Certain members of management are also enrolled in a split-dollar life insurance plan with a post retirement death benefit of $250 thousand. Total expenses related to this plan were $1 thousand for the three months ended March 31, 2021 and 2020, respectively.

Regulatory Capital

Regulatory Capital3 Months Ended
Mar. 31, 2021
Regulatory Capital
Regulatory CapitalNOTE 13. Regulatory Capital On September 17, 2019, the federal banking agencies issued a final rule providing simplified capital requirements for certain community banking organizations (banks and holding companies) with less than $10 billion in total consolidated assets, implementing provisions of The Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA”). Under the proposal, a qualifying community banking organization would be eligible to elect the community bank leverage ratio framework, or continue to measure capital under the existing Basel III requirements. The new rule was effective beginning January 1, 2020, and qualifying community banking organizations may elect to opt into the new community bank leverage ratio (“CBLR”) in their call report beginning in the first quarter of 2020. A qualifying community banking organization (“QCBO”) is defined as a bank, a savings association, a bank holding company or a savings and loan holding company with: ● A leverage capital ratio of greater than 9.0%; ● Total consolidated assets of less than $10.0 billion; ● Total off-balance sheet exposures (excluding derivatives other than credit derivatives and unconditionally cancelable commitments) of 25% or less of total consolidated assets; and ● Total trading assets and trading liabilities of 5% or less of total consolidated assets. ​ On April 6, 2020, the federal banking regulators, implemented the applicable provisions of the CARES Act, which modified the CBLR framework so that: (i) beginning in the second quarter 2020 and until the end of 2020, a banking organization that has a leverage ratio of 8% or greater and meets certain other criteria may elect to use the CBLR framework; and (ii) community banking organizations will have until January 1, 2022, before the CBLR requirement is re-established at greater than 9%. Under the interim rules, the minimum CBLR will be 8% beginning in the second quarter and for the remainder of calendar year 2020, 8.5% for calendar year 2021, and 9% thereafter. The numerator of the CBLR is Tier 1 capital, as calculated under the Basel III rules. The denominator of the CBLR is the QCBO’s average assets, calculated in accordance with the QCBO’s Call Report instructions less assets deducted from Tier 1 capital. The Bank has opted into the CBLR, and will therefore not be required to comply with the Basel III capital requirements. The following table shows the CBLR ratio for the Company and the Bank for the period ended March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2021 ​ ​ At December 31, 2020 ​ ​ Company Bank Company Bank CBLR 10.19 % 9.85 % 10.09 % 9.80 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Leases

Leases3 Months Ended
Mar. 31, 2021
Leases
LeasesNOTE 14. Leases The Company follows ASU 2016-02, "Leases (Topic 842)," Operating leases in which the Bank is the lessee are recorded as right-of-use ("ROU") assets and lease liabilities and are included in Prepaid expenses and other assets and Accrued expenses and other liabilities, respectively, on the Bank’s Consolidated Balance Sheets. The Bank does not currently have any finance leases in which it is the lessee. Operating lease ROU assets represent the Bank’s right to use an underlying asset during the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate. The incremental borrowing rate was calculated for each lease by taking a variable rate FHLB ARC product (based on Libor plus a spread) and then swapping it to a fixed rate borrowing by adding a fixed mid swap rate for the desired term. The borrowing rate for each lease is unique based on the lease term. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in Occupancy expense in the Consolidated Statements of Income. The Bank’s leases relate primarily to bank branches, office space and equipment with remaining lease terms of generally 1 to 10 years. Certain lease arrangements contain extension options which typically range from 1 to 5 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. Certain real estate leases have lease payments that adjust based on annual changes in the Consumer Price Index ("CPI"). The leases that are dependent upon CPI are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Operating lease ROU assets totaled $2.2 million at March 31, 2021, compared to $2.4 million at December 31, 2020. As of March 31, 2021, operating lease liabilities totaled $2.3 million, compared to $2.4 million at December 31, 2020. The table below summarizes our net lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 ​ 2020 ​ Operating lease cost ​ $ 149 ​ $ 148 ​ Net lease cost ​ $ 149 ​ $ 148 ​ ​ The table below summarizes the cash and non-cash activities associated with our leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 ​ 2020 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 145 ​ $ 141 ​ ROU assets obtained in exchange for new operating lease liabilities ​ $ — ​ $ — ​ ​ The table below summarizes other information related to our operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except percentages and years) March 31, 2021 December 31, 2020 Weighted average remaining lease term in years ​ 5.81 ​ ​ 5.96 ​ Weighted average discount rate ​ 5.47 % ​ 5.45 % Operating lease right-of-use assets ​ $ 2,247 ​ $ 2,365 ​ ​ The table below summarizes the maturity of remaining lease liabilities: ​ ​ ​ ​ ​ (In thousands) March 31, 2021 2021 (excluding the three months ended March 31, 2021) ​ $ 411 2022 ​ 477 2023 ​ 410 2024 ​ 361 2025 ​ 371 2026 and thereafter ​ 664 Total lease payments ​ $ 2,694 Less: Interest ​ (392) Present value of lease liabilities ​ $ 2,302 ​ As of March 31, 2021, the Company had not entered into any material leases that have not yet commenced.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2021
Significant Accounting Policies
OverviewThe accompanying Consolidated Financial Statements include the accounts of Unity Bancorp, Inc. (the "Parent Company") and its wholly-owned subsidiary, Unity Bank (the "Bank" or when consolidated with the Parent Company, the "Company"), and reflect all adjustments and disclosures which are generally routine and recurring in nature, and in the opinion of management, necessary for a fair presentation of interim results. The Bank has multiple subsidiaries used to hold part of its investment and loan portfolios and OREO properties. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current year presentation, with no impact on current earnings or shareholders’ equity. The financial information has been prepared in accordance with U.S. generally accepted accounting principles and has not been audited. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses during the reporting periods. Actual results could differ from those estimates. Amounts requiring the use of significant estimates include the allowance for loan losses, valuation of deferred tax and servicing assets, the carrying value of loans held for sale and other real estate owned, the valuation of securities and the determination of other-than-temporary impairment for securities and fair value disclosures. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance for loan losses may be necessary based on changes in economic conditions. The markets served by the Company have been significantly impacted by the COVID-19 pandemic, which started during the first quarter of 2020. The Company continues to assess the financial impact of the COVID-19 pandemic. The interim unaudited Consolidated Financial Statements included herein have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the Securities and Exchange Commission (“SEC”) and consist of normal recurring adjustments necessary for the fair presentation of interim results. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results which may be expected for the entire year. As used in this Form 10-Q, “we” and “us” and “our” refer to Unity Bancorp, Inc., and its consolidated subsidiary, Unity Bank, depending on the context. Certain information and financial disclosures required by U.S. generally accepted accounting principles have been condensed or omitted from interim reporting pursuant to SEC rules. Interim financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Risks and UncertaintiesRisks and Uncertainties On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has adversely affected local, national and global economic activity. Actions taken to help mitigate the spread of COVID-19 include restrictions on travel, localized quarantines, and government-mandated closures of certain businesses. The spread of the outbreak has caused significant disruptions to the U.S. economy and has disrupted banking and other financial activity in the areas in which the Company operates. On March 3, 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range by 50 basis points to 1.00 percent to 1.25 percent. This range was further reduced to 0 percent to 0.25 percent on March 16, 2020. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted to, among other provisions, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. These reductions in interest rates and other effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company. It is possible that estimates made in the financial statements could be materially and adversely impacted as a result of these conditions. On July 27, 2017, the U.K. Financial Conduct Authority, which regulates LIBOR, announced that it will no longer persuade or compel banks to submit rates for the calculation of LIBOR to the LIBOR administrator after 2021. The announcement also indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. Consequently, at this time, it is not possible to predict whether and to what extent banks will continue to provide LIBOR submissions to the LIBOR administrator or whether any additional reforms to LIBOR may be enacted in the United Kingdom or elsewhere. Similarly, it is not possible to predict whether LIBOR will continue to be viewed as an acceptable benchmark for certain loans and liabilities including our subordinated notes, what rate or rates may become accepted alternatives to LIBOR or the effect of any such changes in views or alternatives on the values of the loans and liabilities, whose interest rates are tied to LIBOR. Uncertainty as to the nature of such potential changes, alternative reference rates, the elimination or replacement of LIBOR, or other reforms may adversely affect the value of, and the return on our loans and our investment securities.
Other-Than-Temporary ImpairmentOther-Than-Temporary Impairment The Company has a process in place to identify securities that could potentially incur credit impairment that is other-than-temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. This evaluation considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, the intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a forecasted period of time that allows for the recovery in value. Management assesses its intent to sell or whether it is more likely than not that it will be required to sell a security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other-than-temporarily impaired with no intent to sell and no requirement to sell prior to recovery of its amortized cost basis, the amount of the impairment is separated into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and is recognized in other comprehensive income. For debt securities where management has the intent to sell, the amount of the impairment is reflected in earnings as realized losses. The present value of expected future cash flows is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best estimate cash flows vary depending on the type of security. The asset-backed securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees. The corporate bond cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or the disposition of assets using bond specific facts and circumstances including timing, security interests and loss severity.
Transfers of Financial AssetsTransfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Loans Held for SaleLoans Held for Sale Loans held for sale represent the guaranteed portion of Small Business Administration (“SBA”) loans, excluding loans originated under the Paycheck Protection Program, and are reflected at the lower of aggregate cost or market value. The Company originates loans to customers under an SBA program that historically has provided for SBA guarantees of up to 90 percent of each loan. The Company generally sells the guaranteed portion of its SBA loans to a third party and retains the servicing, holding the nonguaranteed portion in its portfolio. The net amount of loan origination fees on loans sold is included in the carrying value and in the gain or loss on the sale. When sales of SBA loans do occur, the premium received on the sale and the present value of future cash flows of the servicing assets are recognized in income. All criteria for sale accounting must be met in order for the loan sales to occur; see details under the “Transfers of Financial Assets” heading above. Servicing assets represent the estimated fair value of retained servicing rights, net of servicing costs, at the time loans are sold. Servicing assets are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on stratifying the underlying financial assets by date of origination and term. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment, if temporary, would be reported as a valuation allowance. Serviced loans sold to others are not included in the accompanying Consolidated Balance Sheets. Income and fees collected for loan servicing are credited to noninterest income when earned, net of amortization on the related servicing assets.
Loans Held for InvestmentLoans Held for Investment Loans held for investment are stated at the unpaid principal balance, net of unearned discounts and deferred loan origination fees and costs. In accordance with the level yield method, loan origination fees, net of direct loan origination costs, are deferred and recognized over the estimated life of the related loans as an adjustment to the loan yield. Interest is credited to operations primarily based upon the principal balance outstanding. Loans are reported as past due when either interest or principal is unpaid in the following circumstances: fixed payment loans when the borrower is in arrears for two or more monthly payments; open end credit for two or more billing cycles; and single payment notes if interest or principal remains unpaid for 30 days or more. Nonperforming loans consist of loans that are not accruing interest as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt (nonaccrual loans). When a loan is classified as nonaccrual, interest accruals are discontinued and all past due interest previously recognized as income is reversed and charged against current period earnings. Generally, until the loan becomes current, any payments received from the borrower are applied to outstanding principal until such time as management determines that the financial condition of the borrower and other factors merit recognition of a portion of such payments as interest income. Loans may be returned to an accrual status when the ability to collect is reasonably assured and when the loan is brought current as to principal and interest. Loans are charged off when collection is sufficiently questionable and when the Company can no longer justify maintaining the loan as an asset on the balance sheet. Loans qualify for charge-off when, after thorough analysis, all possible sources of repayment are insufficient. These include: 1) potential future cash flows, 2) value of collateral, and/or 3) strength of co-makers and guarantors. All unsecured loans are charged off upon the establishment of the loan’s nonaccrual status. Additionally, all loans classified as a loss or that portion of the loan classified as a loss is charged off. All loan charge-offs are approved by the Board of Directors. Troubled debt restructurings ("TDRs") occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider. These concessions typically include reductions in interest rate, extending the maturity of a loan, or a combination of both. Interest income on accruing TDRs is credited to operations primarily based upon the principal amount outstanding, as stated in the paragraphs above. The Company evaluates its loans for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Company has defined impaired loans to be all TDRs and nonperforming loans individually evaluated for impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature (consumer and residential mortgage loans), and on an individual basis for all other loans. Impairment of a loan is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, or as a practical expedient, based on a loan’s observable market price or the fair value of collateral, net of estimated costs to sell, if the loan is collateral-dependent. If the value of the impaired loan is less than the recorded investment in the loan, the Company establishes a valuation allowance, or adjusts existing valuation allowances, with a corresponding charge to the provision for loan losses. For additional information on loans, see Note 8 to the Consolidated Financial Statements and the section titled "Loan Portfolio" under Item 2. Management’s Discussion and Analysis.
Allowance for Loan Losses and Reserve for Unfunded Loan Commitments Allowance for Loan Losses and Reserve for Unfunded Loan Commitments The allowance for loan losses is maintained at a level management considers adequate to provide for probable loan losses as of the balance sheet date. The allowance is increased by provisions charged to expense and is reduced by net charge-offs. The level of the allowance is based on management’s evaluation of probable losses in the loan portfolio, after consideration of prevailing economic conditions in the Company’s market area, the volume and composition of the loan portfolio, and historical loan loss experience. The allowance for loan losses consists of specific reserves for individually impaired credits and TDRs, reserves for nonimpaired loans based on historical loss factors and reserves based on general economic factors and other qualitative risk factors such as changes in delinquency trends, industry concentrations or local/national economic trends. This risk assessment process is performed at least quarterly, and, as adjustments become necessary, they are realized in the periods in which they become known. Although management attempts to maintain the allowance at a level deemed adequate to provide for probable losses, future additions to the allowance may be necessary based upon certain factors including changes in market conditions and underlying collateral values. In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for loan losses. These agencies may require the Company to make additional provisions based on their judgments about information available to them at the time of their examination. The Company maintains an allowance for unfunded loan commitments that is maintained at a level that management believes is adequate to absorb estimated probable losses. Adjustments to the allowance are made through other expenses and applied to the allowance which is maintained in other liabilities. For additional information on the allowance for loan losses and unfunded loan commitments, see Note 9 to the Consolidated Financial Statements and the sections titled "Asset Quality" and "Allowance for Loan Losses and Reserve for Unfunded Loan Commitments" under Item 2. Management’s Discussion and Analysis.
Income TaxesIncome Taxes The Company accounts for income taxes according to the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates applicable to taxable income for the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation reserves are established against certain deferred tax assets when it is more likely than not that the deferred tax assets will not be realized. Increases or decreases in the valuation reserve are charged or credited to the income tax provision. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits would be recognized in income tax expense on the income statement.
Recent Accounting PronouncementsNew Accounting Pronouncements ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 was issued to replace the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. For public business entities, ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. In May 2019, FASB issued ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief." ASU 2019-05 was issued to address concerns with the adoption of ASU 2016-13. ASU 2019-05 gives entities the ability to irrevocably elect the fair value option in Subtopic 825-10 for certain existing financial assets upon transition to ASU 2016-03. Financial assets that are eligible for this fair value election are those that qualify under Subtopic 825-10 and are within the scope of Subtopic 326-10, "Financial Instruments - Credit Losses - Measured at Amortized Costs." An exception to this is held-to-maturity debt securities, which do not qualify for this transition election. The effective date for the amendment is the same as the effective date in ASU 2016-03. In November 2019, FASB issued ASU 2019-10, "Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates." ASU 2019-10 was issued to defer the effective dates for certain guidance in its Accounting Standard Codification ("ASC") for certain entities. The amendments in this update amend the mandatory effective dates for ASC 326, "Financial Instruments - Credit Losses", for entities eligible to be smaller reporting companies as defined by the SEC for fiscal years beginning after December 15, 2022, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements. In November 2019, FASB issued ASU 2019-11, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU 2019-11 was issued to address issues raised by stakeholders during the implementation of ASU 2016-13. ASU 2019-11 provides transition relief when adjusting the effective interest rate for troubled debt restructurings ("TDRs") that exist as of the adoption date, extends the disclosure relief in ASU 2019-04 to disclose accrued interest receivable balances separately from the amortized cost basis to additional disclosures involving amortized cost basis, and provides clarification regarding application of the guidance in paragraph 326-20-35-6 for financial assets secured by collateral maintenance provisions that provides a practical expedient to measure the estimate of expected credit losses by comparing the amortized cost basis of a financial asset and the fair value of collateral securing the financial asset as of the reporting date. The effective date and transition requirements for the amendment are the same as the effective date and transition requirements in ASU 2016-13. ASU 2019- 12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." ASU 2019-12 removes the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items and removes the exception to the interim period income tax accounting when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 also simplifies the accounting for income taxes by requiring that an entity recognize a franchise tax that is partially based on income as an income-based tax, that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill originally was recognized, and that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. For public business entities, ASU 2019-12 is effective for interim and annual periods beginning after December 15, 2020. The Company adopted this standard as of January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ASU 2020-01, "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force)." ASU 2020-01 clarifies that the observable price changes in orderly transactions that should be considered when applying the measurement alternative in accordance with ASC 321 include transactions that require it to either apply or discontinue the equity method of accounting under ASC 323. ASU 2020-01 also addresses questions about how to apply the guidance in Topic 815, “Derivatives and Hedging,” for certain forward contracts and purchased options to purchase securities that, upon settlement or exercise, would be accounted for under the equity method of accounting. The ASU clarifies that, for the purpose of applying ASC 815-10-15- 141(a), an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with the financial instruments guidance in Topic 825, “Financial Instruments.” For public business entities, ASU 2020-01 is effective for interim and annual periods beginning after December 15, 2020. The Company adopted this standard as of January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ASU 2020- 03, "Codification Improvement to Financial Instruments." ASU 2020-03 clarifies that all entities are required to provide the fair value option disclosures in paragraphs 825-10-50-24 through 50-32 of the FASB’s Accounting Standards Codification (ASC). ASU 2020-03 also clarifies that the contractual term of a net investment in a lease determined in accordance with ASC 842, “Leases,” should be the contractual term used to measure expected credit losses under ASC 326, “Financial Instruments – Credit Losses.” ASU 2020-03 also addresses amendments to ASC 860-20, “Transfers and Servicing – Sales of Financial Assets,” clarify that when an entity regains control of financial assets sold, an allowance for credit losses should be recorded in accordance with ASC 326. The effective date and transition requirements for the amendment are the same as the effective date and transition requirements in ASU 2016-13. The Company is currently evaluating the impact of the adoption of ASU 2020-03 on its consolidated financial statements. ASU 2020- 04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASU 2020-04 provides temporary optional guidance intended to ease the burden of reference rate reform on financial reporting. The guidance provides optional expedients and exceptions for applying existing guidance to contract modifications, hedging relationships and other transactions that are expected to be affected by reference rate reform and meet certain scope guidance. ASU 2020-04 provides various optional expedients, including the following, for hedging relationships affected by reference rate reform, if certain criteria are met: ● An entity can change certain critical terms of the hedging instrument or hedged item or transaction without having to dedesignate the relationship. ● For fair value hedging relationships in which the designated interest rate is LIBOR or another rate that is expected to be discontinued, an entity may change the hedged risk to another permitted benchmark rate without dedesignating the relationship. ● For cash flow hedging relationships in which the designated hedged risk is LIBOR or another rate that is expected to be discontinued, an entity may assert that the occurrence of the hedged forecasted transaction remains probable. ● Certain qualifying conditions for the shortcut method and other methods that assume perfect effectiveness may be disregarded. In addition, ASU 2020-04 permits an entity to make a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that were classified as held to maturity before January 1, 2020. ASU 2020-04 was effective upon its issuance on March 12, 2020. However, it cannot be applied to contract modifications that occur after December 31, 2022. With certain exceptions, the ASU also cannot be applied to hedging relationships entered into or evaluated after that date. The Company is currently evaluating the various optional expedients as well as impact of the adoption of ASU 2020-04 on its consolidated financial statements. ​ ASU 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity.” ASU 2020-06 was issued to address the complexities of its guidance for certain financial instruments with characteristics of liabilities and equity, including: ● Removing the accounting models that require beneficial conversion features or cash conversion features associated with convertible instruments to be recognized as a separate component of equity. ● Adding certain disclosure requirements for convertible instruments. ● Amending the guidance for the derivatives scope exception for contracts in an entity’s own equity. ● Simplifying the diluted earning per share calculation for certain situations. For public business entities, ASU 2020-06 is effective for interim and annual periods beginning after December 15, 2021. The Company is currently evaluating the impact of the adoption of ASU 2020-06 on its consolidated financial statements. ​ ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” ASU 2021-01 was issued to clarify certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting applied to derivatives that are affected by the discounting transition. In addition, the ASU clarifies that a receive-variable-rate, pay-variable-rate cross-currency interest rate swap may be considered eligible as a hedging instrument in a net investment hedge if both legs of the swap do not have the same repricing intervals and dates as a result of the reference rate reform. ASU 2021-01 became effective January 7, 2021.
Benefit PlansBenefit Plans In addition to the 401(k) savings plan which covers substantially all employees, in 2015 the Company established an unfunded supplemental defined benefit plan to provide additional retirement benefits for the President and Chief Executive Officer (“CEO”) and unfunded, non-qualified deferred retirement plans for certain other key executives. On June 4, 2015, the Company approved the Supplemental Executive Retirement Plan (“SERP”) pursuant to which the President and CEO is entitled to receive certain supplemental nonqualified retirement benefits. The retirement benefit under the SERP is an amount equal to sixty percent (60%) of the average of the President and CEO’s base salary for the thirty-six The President and CEO commenced vesting in this retirement benefit on January 1, 2014, and vests an additional three percent (3%) each year until fully vested on January 1, 2024. In the event that the President and CEO’s separation from service from the Company were to occur prior to full vesting, the President and CEO would be entitled to and shall be paid the vested portion of the retirement benefit calculated as of the date of separation from service. Notwithstanding the foregoing, upon a Change in Control, and provided that within 6 months following the Change in Control the President and CEO is involuntarily terminated for reasons other than “cause” or the President and CEO resigns for “good reason,” as such is defined in the SERP, or the President and CEO voluntarily terminates his employment after being offered continued employment in a position that is not a “Comparable Position,” as such is also defined in the SERP, the President and CEO shall become one hundred percent (100%) vested in the full retirement benefit.
Leases and CommitmentsLeases The Company follows ASU 2016-02, "Leases (Topic 842)," Operating leases in which the Bank is the lessee are recorded as right-of-use ("ROU") assets and lease liabilities and are included in Prepaid expenses and other assets and Accrued expenses and other liabilities, respectively, on the Bank’s Consolidated Balance Sheets. The Bank does not currently have any finance leases in which it is the lessee. Operating lease ROU assets represent the Bank’s right to use an underlying asset during the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate. The incremental borrowing rate was calculated for each lease by taking a variable rate FHLB ARC product (based on Libor plus a spread) and then swapping it to a fixed rate borrowing by adding a fixed mid swap rate for the desired term. The borrowing rate for each lease is unique based on the lease term. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in Occupancy expense in the Consolidated Statements of Income. The Bank’s leases relate primarily to bank branches, office space and equipment with remaining lease terms of generally 1 to 10 years. Certain lease arrangements contain extension options which typically range from 1 to 5 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. Certain real estate leases have lease payments that adjust based on annual changes in the Consumer Price Index ("CPI"). The leases that are dependent upon CPI are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability.

Net Income per Share (Tables)

Net Income per Share (Tables)3 Months Ended
Mar. 31, 2021
Net Income per Share
Reconciliation of Calculation of Basic and Diluted Income Per ShareThe following is a reconciliation of the calculation of basic and diluted income per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ (In thousands, except per share amounts) 2021 2020 ​ Net income ​ $ 8,496 ​ $ 5,368 ​ ​ Weighted average common shares outstanding - Basic ​ 10,437 ​ 10,883 ​ ​ Plus: Potential dilutive common stock equivalents ​ 128 ​ 154 ​ ​ Weighted average common shares outstanding - Diluted ​ 10,565 ​ 11,037 ​ ​ Net income per common share - Basic ​ $ 0.81 ​ $ 0.49 ​ ​ Net income per common share - Diluted ​ 0.80 ​ 0.49 ​ ​ Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive ​ 154 ​ 363 ​ ​

Other Comprehensive (Loss) In_2

Other Comprehensive (Loss) Income (Tables)3 Months Ended
Mar. 31, 2021
Other Comprehensive (Loss) Income
Changes in Other Comprehensive (Loss) IncomeThe following tables show the changes in other comprehensive (loss) income for the three months ended March 31, 2021 and 2020, net of tax: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2021 ​ ​ Adjustments Net unrealized Accumulated ​ Net unrealized related to (losses) gains other ​ (losses) gains on defined benefit from cash flow comprehensive (In thousands) ​ securities plan hedges (loss) income Balance, beginning of period (1) $ (179) ​ $ (238) ​ $ (737) $ (1,154) Other comprehensive income before reclassifications ​ 306 ​ ​ — ​ ​ 579 ​ 885 Less amounts reclassified from accumulated other comprehensive income (loss) ​ 245 ​ ​ (15) ​ ​ — ​ 230 Period change ​ 61 ​ 15 ​ 579 ​ 655 Balance, end of period (1) ​ $ (118) ​ $ (223) ​ $ (158) ​ $ (499) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2020 ​ ​ Adjustments Net unrealized Accumulated ​ Net unrealized related to gains (losses) other ​ gains (losses) on defined benefit from cash flow comprehensive (In thousands) ​ securities plan hedges income (loss) Balance, beginning of period (1) $ 316 ​ $ (295) ​ $ 168 $ 189 Other comprehensive loss before reclassifications ​ (131) ​ ​ — ​ ​ (1,004) ​ (1,135) Less amounts reclassified from accumulated other comprehensive loss ​ (134) ​ ​ (15) ​ ​ — ​ (149) Period change ​ 3 ​ 15 ​ (1,004) ​ (986) Balance, end of period (1) ​ $ 320 ​ $ (280) ​ $ (836) ​ $ (797) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) AOCI does not reflect the net reclassification of $35 thousand to Retained Earnings as a result of ASU 2016-01, "Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" & ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income".

Fair Value (Tables)

Fair Value (Tables)3 Months Ended
Mar. 31, 2021
Fair Value
Reconciliation of Level 3 Available for Sale Debt Securities Measured at Fair Value on Recurring BasisThe following table presents a reconciliation of the Level 3 available for sale debt securities measured at fair value on a recurring basis for the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, (In thousands) 2021 2020 Balance at beginning of period (1) $ 4,400 $ — Purchases/additions ​ ​ — ​ ​ — Sales/reductions ​ — ​ — Realized gains (losses) ​ — ​ — Unrealized gains ​ 138 ​ — Balance at end of period ​ $ 4,538 ​ $ — ​ ​ ​ ​ ​ ​ ​ (1) Includes AFS debt securities classified as Level 2 at December 31, 2019, which were transferred to Level 3 during the year ended 2020.
Balances of Assets And Liabilities Measured at Fair Value on Recurring BasisThe tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at March 31, 2021 Using ​ ​ ​ ​ ​ Quoted Prices in ​ ​ ​ ​ ​ ​ ​ ​ Assets/Liabilities ​ Active Markets ​ Significant Other ​ Significant ​ ​ Measured at Fair ​ for Identical ​ Observable ​ Unobservable (In thousands) Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Measured on a recurring basis: ​ ​ ​ ​ Assets: ​ ​ ​ ​ Debt securities available for sale: ​ ​ ​ ​ State and political subdivisions ​ $ 2,375 ​ $ — ​ $ 2,375 ​ $ — Residential mortgage-backed securities ​ 15,013 ​ — ​ 15,013 ​ — Corporate and other securities ​ 14,942 ​ — ​ 10,404 ​ 4,538 Total debt securities available for sale ​ $ 32,330 ​ $ — ​ $ 27,792 ​ $ 4,538 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity securities with readily determinable fair values ​ 2,221 ​ — ​ 2,221 ​ — Total equity securities ​ $ 2,221 ​ $ — ​ $ 2,221 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans held for sale ​ 10,392 ​ — ​ 10,392 ​ — Total loans held for sale ​ $ 10,392 ​ $ — ​ $ 10,392 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap agreements ​ (219) ​ — ​ (219) ​ — Total swap agreements ​ $ (219) ​ $ — ​ $ (219) ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value Measurements at December 31, 2020 Using ​ ​ ​ ​ ​ Quoted Prices in ​ ​ ​ ​ ​ ​ ​ ​ Assets/Liabilities ​ Active Markets ​ Significant Other ​ Significant ​ ​ Measured at Fair ​ for Identical ​ Observable ​ Unobservable (In thousands) Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Measured on a recurring basis: ​ ​ ​ ​ Assets: ​ ​ ​ ​ Debt securities available for sale: ​ ​ ​ ​ U.S. Government sponsored entities ​ $ 2,003 ​ $ — ​ $ 2,003 ​ $ — State and political subdivisions ​ 2,969 ​ — ​ 2,969 ​ — Residential mortgage-backed securities ​ 17,410 ​ — ​ 17,410 ​ — Corporate and other securities ​ 23,235 ​ — ​ 18,835 ​ 4,400 Total debt securities available for sale ​ $ 45,617 ​ $ — ​ $ 41,217 ​ $ 4,400 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity securities with readily determinable fair values ​ 1,954 ​ — ​ 1,954 ​ — Total equity securities ​ $ 1,954 ​ $ — ​ $ 1,954 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans held for sale ​ 10,712 ​ — ​ 10,712 ​ — Total loans held for sale ​ $ 10,712 ​ $ — ​ $ 10,712 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate swap agreements ​ (1,026) ​ — ​ (1,026) ​ — Total swap agreements ​ $ (1,026) ​ $ — ​ $ (1,026) ​ $ —
Assets and Liabilities Carried on the Balance Sheet by Caption And By Level Within The HierarchyThe following tables present the assets and liabilities subject to fair value adjustments (impairment) on a non-recurring basis carried on the balance sheet by caption and by level within the hierarchy (as described above): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at March 31, 2021 Using ​ ​ ​ ​ ​ Quoted Prices ​ Significant ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in Active ​ Other ​ Significant ​ ​ ​ ​ Assets/Liabilities ​ Markets for ​ Observable ​ Unobservable ​ Net Credit ​ ​ Measured at Fair ​ Identical Assets ​ Inputs ​ Inputs ​ During (In thousands) Value (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: ​ ​ ​ ​ ​ Financial assets: ​ ​ ​ ​ ​ Impaired collateral-dependent loans ​ $ 12,591 ​ $ — ​ $ — ​ $ 12,591 ​ $ (556) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2020 Using ​ ​ ​ ​ ​ Quoted Prices ​ Significant ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ in Active ​ Other ​ Significant ​ Net (Credit) ​ ​ Assets/Liabilities ​ Markets for ​ Observable ​ Unobservable ​ Provision ​ ​ Measured at Fair ​ Identical Assets ​ Inputs ​ Inputs ​ During (In thousands) Value (Level 1) (Level 2) (Level 3) Period Financial assets: ​ ​ ​ ​ ​ OREO ​ $ — ​ $ — ​ $ — ​ $ — ​ $ (225) Impaired collateral-dependent loans ​ 11,959 ​ — ​ — ​ 11,959 ​ 3,693
Carrying Amount and Estimated Fair Values of Financial InstrumentsThe table below presents the carrying amount and estimated fair values of the Company’s financial instruments presented as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ December 31, 2020 ​ ​ Fair value ​ Carrying ​ Estimated ​ Carrying ​ Estimated (In thousands) level amount fair value amount fair value Financial assets: ​ ​ ​ ​ Cash and cash equivalents Level 1 ​ $ 239,577 ​ $ 239,577 ​ $ 219,311 ​ $ 219,311 Securities (1) Level 2 ​ 34,551 ​ 34,551 ​ 47,571 ​ 47,571 SBA loans held for sale Level 2 ​ 8,809 ​ 10,392 ​ 9,335 ​ 10,712 Loans, net of allowance for loan losses (2) Level 2 ​ 1,636,674 ​ 1,650,152 ​ 1,595,377 ​ 1,613,593 FHLB stock Level 2 ​ 9,269 ​ 9,269 ​ 10,594 ​ 10,594 Servicing assets Level 3 ​ 1,738 ​ 1,738 ​ 1,857 ​ 1,857 Accrued interest receivable Level 2 ​ 9,831 ​ 9,831 ​ 10,429 ​ 10,429 Financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits Level 2 ​ 1,628,393 ​ 1,628,042 ​ 1,557,959 ​ 1,561,502 Borrowed funds and subordinated debentures Level 2 ​ 180,310 ​ 181,727 ​ 210 ​ 212,358 Accrued interest payable Level 2 ​ 255 ​ 255 ​ 248 ​ 248 ​ (1) Includes corporate securities that are considered Level 3 and reported separately in the table under the “Fair Value on a Recurring Basis” heading. These securities had book values of $5.3 million and market values of $4.5 million. (2) Includes collateral-dependent impaired loans that are considered Level 3 and reported separately in the tables under the “Fair Value on a Nonrecurring Basis” heading. Collateral-dependent impaired loans, net of specific reserves totaled $12.6 million and $12.0 million at March 31, 2021 and December 31, 2020, respectively.

Securities (Tables)

Securities (Tables)3 Months Ended
Mar. 31, 2021
Securities
Reconciliation From Amortized Cost to Estimated Fair Value of Marketable SecuritiesThis table provides the major components of debt securities available for sale ("AFS") and equity securities with readily determinable fair values ("equity securities") at amortized cost and estimated fair value at March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ December 31, 2020 ​ ​ ​ Gross Gross ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ unrealized ​ unrealized ​ Estimated ​ Amortized ​ unrealized ​ unrealized ​ Estimated (In thousands) ​ cost ​ gains ​ losses ​ fair value ​ cost ​ gains ​ losses ​ fair value Available for sale: ​ ​ ​ ​ ​ ​ ​ ​ U.S. Government sponsored entities ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 2,000 ​ $ 3 ​ $ — ​ $ 2,003 State and political subdivisions ​ 2,355 ​ 20 ​ — ​ 2,375 ​ 2,935 ​ 34 ​ — ​ 2,969 Residential mortgage-backed securities ​ 14,498 ​ 515 ​ — ​ 15,013 ​ 16,765 ​ 645 ​ — ​ 17,410 Corporate and other securities ​ 15,696 ​ 160 ​ (914) ​ 14,942 ​ 24,221 ​ 132 ​ (1,118) ​ 23,235 Total debt securities available for sale ​ $ 32,549 ​ $ 695 ​ $ (914) ​ $ 32,330 ​ $ 45,921 ​ $ 814 ​ $ (1,118) ​ $ 45,617 Equity securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity securities ​ $ 2,112 ​ $ 184 ​ $ (75) ​ $ 2,221 ​ $ 2,112 ​ $ — ​ $ (158) ​ $ 1,954
Schedule of Marketable Securities By Contractual MaturityThis table provides the remaining contractual maturities and yields of securities within the investment portfolios. The carrying value of securities at March 31, 2021 is distributed by contractual maturity. Mortgage-backed securities and other securities, which may have principal prepayment provisions, are distributed based on contractual maturity. Expected maturities will differ materially from contractual maturities as a result of early prepayments and calls. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ After one through ​ After five through ​ ​ ​ ​ ​ ​ Total carrying ​ ​ Within one year ​ five years ​ ten years ​ After ten years ​ value (In thousands, except percentages) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale at fair value: ​ ​ ​ ​ ​ ​ U.S. Government sponsored entities ​ $ — — % $ — — % $ — — % $ — — % $ — — % State and political subdivisions ​ 1,149 1.50 ​ 681 3.12 ​ — — ​ 545 2.74 ​ 2,375 2.25 ​ Residential mortgage-backed securities ​ 4 4.93 ​ 585 2.87 ​ 1,433 2.26 ​ 12,991 2.14 ​ 15,013 2.18 ​ Corporate and other securities ​ — — ​ — — ​ 10,404 4.69 ​ 4,538 3.15 ​ 14,942 4.22 ​ Total debt securities available for sale ​ $ 1,153 1.51 % $ 1,266 3.01 % $ 11,837 4.40 % $ 18,074 2.41 % $ 32,330 3.13 % Equity Securities at fair value: ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity securities ​ $ — — % $ — — % $ — — % $ 2,221 2.34 % $ 2,221 2.34 %
Schedule of Marketable Securities In Unrealized Loss PositionThe fair value of securities with unrealized losses by length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2021 and December 31, 2020 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ ​ ​ ​ Less than 12 months ​ 12 months and greater ​ Total ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ number in a ​ Estimated ​ Unrealized ​ Estimated ​ Unrealized ​ Estimated ​ Unrealized (In thousands, except number in a loss position) ​ loss position ​ fair value ​ loss ​ fair value ​ loss ​ fair value ​ loss Available for sale: ​ ​ ​ ​ ​ ​ Corporate and other securities 6 ​ $ 2,382 ​ $ (118) ​ $ 7,759 ​ $ (796) ​ $ 10,141 ​ $ (914) Total temporarily impaired securities 6 ​ $ 2,382 ​ $ (118) ​ $ 7,759 ​ $ (796) ​ $ 10,141 ​ $ (914) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ Less than 12 months ​ 12 months and greater ​ Total ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ number in a ​ Estimated ​ Unrealized ​ Estimated ​ Unrealized ​ Estimated ​ Unrealized (In thousands, except number in a loss position) ​ loss position ​ fair value ​ loss ​ fair value ​ loss ​ fair value ​ loss Available for sale: ​ ​ ​ ​ ​ ​ Corporate and other securities 9 ​ $ 4,793 ​ $ (20) ​ $ 9,157 ​ $ (1,098) ​ $ 13,950 ​ $ (1,118) Total temporarily impaired securities 9 ​ $ 4,793 ​ $ (20) ​ $ 9,157 ​ $ (1,098) ​ $ 13,950 ​ $ (1,118)
Schedule of Realized Gains (Losses) for Marketable SecuritiesGross realized gains and losses on securities for the three months ended March 31, 2021 and 2020 are detailed in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 2020 ​ Available for sale: ​ ​ ​ ​ Realized gains ​ $ 43 ​ $ 296 ​ Realized losses ​ — ​ — ​ Total debt securities available for sale ​ 43 ​ 296 ​ Net gains on sales of securities ​ $ 43 ​ $ 296 ​
Equity Securities, Gains and LossesThe following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) 2021 2020 ​ Net gains (losses) recognized during the period on equity securities ​ $ 267 ​ $ (471) ​ Net gains recognized during the period on equity securities sold during the period ​ — ​ 5 ​ Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date ​ $ 267 ​ $ (466) ​

Loans (Tables)

Loans (Tables)3 Months Ended
Mar. 31, 2021
Loans
Classification of Loans By ClassThe following table sets forth the classification of loans by class, including unearned fees, deferred costs and excluding the allowance for loan losses as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) March 31, 2021 December 31, 2020 SBA loans held for investment ​ $ 38,296 ​ $ 39,587 SBA PPP loans ​ ​ 169,117 ​ ​ 118,257 Commercial loans ​ ​ SBA 504 loans ​ 21,255 ​ 19,681 Commercial other ​ 113,982 ​ 118,280 Commercial real estate ​ 650,869 ​ 630,423 Commercial real estate construction ​ 66,972 ​ 71,404 Residential mortgage loans ​ 448,149 ​ 467,586 Consumer loans ​ ​ ​ ​ Home equity ​ 59,238 ​ 62,549 Consumer other ​ ​ 1,264 ​ ​ 3,551 Consumer construction loans ​ ​ 90,497 ​ ​ 87,164 Total loans held for investment ​ $ 1,659,639 ​ $ 1,618,482 SBA loans held for sale ​ 8,809 ​ 9,335 Total loans ​ $ 1,668,448 ​ $ 1,627,817
Loan Portfolio by Class According to Their Credit Quality IndicatorsThe tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ ​ SBA & Commercial loans - Internal risk ratings (In thousands) Pass Special mention Substandard Total SBA loans held for investment ​ $ 35,932 ​ $ 532 ​ $ 1,832 ​ $ 38,296 SBA PPP loans ​ ​ 169,117 ​ ​ — ​ ​ — ​ ​ 169,117 Commercial loans ​ ​ ​ ​ SBA 504 loans ​ 21,255 ​ — ​ — ​ 21,255 Commercial other ​ 105,509 ​ 5,413 ​ 3,060 ​ 113,982 Commercial real estate ​ 623,270 ​ 22,519 ​ 5,080 ​ 650,869 Commercial real estate construction ​ 66,972 ​ — ​ — ​ 66,972 Total commercial loans ​ 817,006 ​ 27,932 ​ 8,140 ​ 853,078 Total SBA and commercial loans ​ $ 1,022,055 ​ $ 28,464 ​ $ 9,972 ​ $ 1,060,491 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage & Consumer loans - Performing/Nonperforming (In thousands) ​ ​ Performing Nonperforming Total Residential mortgage loans ​ ​ ​ ​ $ 441,438 ​ $ 6,711 ​ $ 448,149 Consumer loans ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ ​ ​ 59,238 ​ — ​ 59,238 Consumer other ​ ​ ​ ​ ​ 1,264 ​ ​ — ​ ​ 1,264 Total consumer loans ​ ​ ​ ​ ​ 60,502 ​ ​ — ​ ​ 60,502 Consumer construction loans ​ ​ ​ ​ ​ 87,932 ​ ​ 2,565 ​ ​ 90,497 Total residential mortgage, consumer and consumer construction loans ​ ​ ​ ​ $ 589,872 ​ $ 9,276 ​ $ 599,148 ​ The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ SBA & Commercial loans - Internal risk ratings (In thousands) Pass Special mention Substandard Total SBA loans held for investment ​ $ 36,991 ​ $ 525 ​ $ 2,071 ​ $ 39,587 SBA PPP loans ​ ​ 118,257 ​ ​ — ​ ​ — ​ ​ 118,257 Commercial loans ​ ​ ​ ​ SBA 504 loans ​ 19,681 ​ — ​ — ​ 19,681 Commercial other ​ 109,672 ​ 5,533 ​ 3,075 ​ 118,280 Commercial real estate ​ 603,482 ​ 25,206 ​ 1,735 ​ 630,423 Commercial real estate construction ​ 71,404 ​ — ​ — ​ 71,404 Total commercial loans ​ 804,239 ​ 30,739 ​ 4,810 ​ 839,788 Total SBA and commercial loans ​ $ 959,487 ​ $ 31,264 ​ $ 6,881 ​ $ 997,632 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential mortgage & Consumer loans - Performing/Nonperforming (In thousands) ​ ​ Performing ​ Nonperforming ​ Total Residential mortgage loans ​ ​ $ 462,369 ​ $ 5,217 ​ $ 467,586 Consumer loans ​ ​ ​ ​ Home equity ​ ​ 61,254 ​ 1,295 ​ 62,549 Consumer other ​ ​ ​ ​ ​ 3,551 ​ ​ — ​ ​ 3,551 Total consumer loans ​ ​ ​ ​ ​ 64,805 ​ ​ 1,295 ​ ​ 66,100 Consumer construction loans ​ ​ ​ ​ ​ 85,414 ​ ​ 1,750 ​ ​ 87,164 Total residential mortgage, consumer and consumer construction loans ​ ​ $ 612,588 ​ $ 8,262 ​ $ 620,850
Aging Analysis of Past Due And Nonaccrual Loans by Loan ClassThe following tables set forth an aging analysis of past due and nonaccrual loans as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ ​ ​ ​ ​ 90+ days ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30 ‑ 59 days ​ 60 ‑ 89 days ​ and still ​ Nonaccrual ​ Total past ​ ​ ​ ​ ​ ​ (In thousands) ​ past due ​ past due ​ accruing ​ (1) ​ due ​ Current ​ Total loans SBA loans held for investment ​ $ 6,341 ​ $ — ​ $ — ​ $ 1,560 ​ $ 7,901 ​ $ 30,395 ​ $ 38,296 SBA PPP loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 169,117 ​ ​ 169,117 Commercial loans ​ ​ ​ ​ ​ ​ ​ ​ SBA 504 loans ​ — ​ — ​ — ​ — ​ — ​ 21,255 ​ 21,255 Commercial other ​ 43 ​ 60 ​ — ​ 340 ​ 443 ​ 113,539 ​ 113,982 Commercial real estate ​ 889 ​ 787 ​ — ​ 612 ​ 2,288 ​ 648,581 ​ 650,869 Commercial real estate construction ​ — ​ — ​ — ​ — ​ — ​ 66,972 ​ 66,972 Residential mortgage loans ​ 4,728 ​ 1,224 ​ 2,145 ​ 6,711 ​ 14,808 ​ 433,341 ​ 448,149 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ 49 ​ — ​ 183 ​ — ​ 232 ​ 59,006 ​ 59,238 Consumer other ​ ​ 7 ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 ​ ​ 1,257 ​ ​ 1,264 Consumer construction loans ​ ​ 854 ​ ​ 416 ​ ​ 212 ​ ​ 2,565 ​ ​ 4,047 ​ ​ 86,450 ​ ​ 90,497 Total loans held for investment ​ ​ 12,911 ​ ​ 2,487 ​ ​ 2,540 ​ ​ 11,788 ​ ​ 29,726 ​ ​ 1,629,913 ​ ​ 1,659,639 SBA loans held for sale ​ 2,664 ​ — ​ — ​ — ​ 2,664 ​ 6,145 ​ 8,809 Total loans ​ $ 15,575 ​ $ 2,487 ​ $ 2,540 ​ $ 11,788 ​ $ 32,390 ​ $ 1,636,058 ​ $ 1,668,448 ​ (1) At March 31, 2021, nonaccrual loans included $139 thousand of loans guaranteed by the SBA. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ 90+ days ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 30 ‑ 59 days ​ 60 ‑ 89 days ​ and still ​ Nonaccrual ​ Total past ​ ​ ​ ​ ​ ​ (In thousands) ​ past due ​ past due ​ accruing ​ (1) ​ due ​ Current ​ Total loans SBA loans held for investment ​ $ 792 ​ $ 1,280 ​ $ — ​ $ 2,473 ​ $ 4,545 ​ $ 35,042 ​ $ 39,587 SBA PPP loans ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ​ ​ ​ 118,257 ​ ​ 118,257 Commercial loans ​ ​ ​ ​ ​ ​ ​ SBA 504 loans ​ — ​ — ​ — ​ — ​ — ​ 19,681 ​ 19,681 Commercial other ​ 186 ​ 201 ​ — ​ 266 ​ 653 ​ 117,627 ​ 118,280 Commercial real estate ​ 3,109 ​ 1,971 ​ — ​ 1,059 ​ 6,139 ​ 624,284 ​ 630,423 Commercial real estate construction ​ 1,047 ​ — ​ — ​ — ​ 1,047 ​ 70,357 ​ 71,404 Residential mortgage loans ​ 3,232 ​ 2,933 ​ 262 ​ 5,217 ​ 11,644 ​ 455,942 ​ 467,586 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ 393 ​ — ​ 187 ​ 1,295 ​ 1,875 ​ 60,674 ​ 62,549 Consumer other ​ ​ 3 ​ ​ 1 ​ ​ — ​ ​ — ​ ​ 4 ​ ​ 3,547 ​ ​ 3,551 Consumer construction loans ​ ​ 120 ​ ​ 796 ​ ​ — ​ ​ 1,750 ​ ​ 2,666 ​ ​ 84,498 ​ ​ 87,164 Total loans held for investment ​ ​ 8,882 ​ ​ 7,182 ​ ​ 449 ​ ​ 12,060 ​ ​ 28,573 ​ ​ 1,589,909 ​ ​ 1,618,482 SBA loans held for sale ​ 448 ​ — ​ — ​ — ​ 448 ​ 8,887 ​ 9,335 Total loans ​ $ 9,330 ​ $ 7,182 ​ $ 449 ​ $ 12,060 ​ $ 29,021 ​ $ 1,598,796 ​ $ 1,627,817 ​ (1) At December 31, 2020, nonaccrual loans included $371 thousand of loans guaranteed by the SBA.
Impaired Loans with Associated Allowance AmountThe following table provides detail on the Company’s impaired loans that are individually evaluated for impairment with the associated allowance amount, if applicable, as of March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ Unpaid ​ ​ ​ ​ ​ ​ principal ​ Recorded ​ Specific (In thousands) ​ balance ​ investment ​ reserves With no related allowance: ​ ​ ​ ​ SBA loans held for investment (1) ​ $ 1,138 ​ $ 1,037 ​ $ — Commercial loans ​ ​ ​ Commercial real estate ​ 1,920 ​ 1,920 ​ — Total commercial loans ​ 1,920 ​ 1,920 ​ — Residential mortgage loans ​ ​ 6,090 ​ ​ 5,985 ​ ​ — Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 427 ​ ​ 427 ​ ​ — Consumer construction loans ​ ​ 1,780 ​ ​ 1,780 ​ ​ — Total impaired loans with no related allowance ​ 11,355 ​ 11,149 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance: ​ ​ ​ SBA loans held for investment (1) ​ 691 ​ 384 ​ 319 Commercial loans ​ ​ ​ Commercial other ​ 3,203 ​ 3,078 ​ 2,979 Commercial real estate ​ 140 ​ 20 ​ 20 Total commercial loans ​ 3,343 ​ 3,098 ​ 2,999 Residential mortgage loans ​ ​ 726 ​ ​ 726 ​ ​ 44 Consumer construction loans ​ ​ 785 ​ ​ 785 ​ ​ 189 Total impaired loans with a related allowance ​ 5,545 ​ 4,993 ​ 3,551 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total individually evaluated impaired loans: ​ ​ ​ SBA loans held for investment (1) ​ 1,829 ​ 1,421 ​ 319 Commercial loans ​ ​ ​ Commercial other ​ 3,203 ​ 3,078 ​ 2,979 Commercial real estate ​ 2,060 ​ 1,940 ​ 20 Total commercial loans ​ 5,263 ​ 5,018 ​ 2,999 Residential mortgage loans ​ ​ 6,816 ​ ​ 6,711 ​ ​ 44 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 427 ​ ​ 427 ​ ​ — Consumer construction loans ​ ​ 2,565 ​ ​ 2,565 ​ ​ 189 Total individually evaluated impaired loans ​ $ 16,900 ​ $ 16,142 ​ $ 3,551 ​ (1) Balances are reduced by amount guaranteed by the SBA of $139 thousand at March 31, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table provides detail on the Company’s impaired loans that are individually evaluated for impairment with the associated allowance amount, if applicable, as of December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ Unpaid ​ ​ ​ ​ ​ ​ principal ​ Recorded ​ Specific (In thousands) ​ balance ​ investment ​ reserves With no related allowance: ​ ​ ​ ​ SBA loans held for investment (1) ​ $ 1,799 ​ $ 1,698 ​ $ — Commercial loans ​ ​ ​ Commercial real estate ​ 1,462 ​ 1,462 ​ — Total commercial loans ​ 1,462 ​ 1,462 ​ — Residential mortgage loans ​ ​ 4,080 ​ ​ 3,975 ​ ​ — Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 1,295 ​ ​ 1,295 ​ ​ — Consumer construction loans ​ ​ 1,750 ​ ​ 1,750 ​ ​ — Total impaired loans with no related allowance ​ 10,386 ​ 6,205 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ With an allowance: ​ ​ ​ SBA loans held for investment (1) ​ 434 ​ 404 ​ 324 Commercial loans ​ ​ ​ Commercial other ​ 3,160 ​ 3,160 ​ 3,106 Commercial real estate ​ 1,730 ​ 1,080 ​ 576 Total commercial loans ​ 4,890 ​ 4,240 ​ 3,682 Residential mortgage loans ​ ​ 1,242 ​ ​ 1,242 ​ ​ 101 Total impaired loans with a related allowance ​ 6,566 ​ 5,886 ​ 4,107 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total individually evaluated impaired loans: ​ ​ ​ SBA loans held for investment (1) ​ 2,233 ​ 2,102 ​ 324 Commercial loans ​ ​ ​ ​ ​ ​ Commercial other ​ 3,160 ​ 3,160 ​ 3,106 Commercial real estate ​ 3,192 ​ 2,542 ​ 576 Total commercial loans ​ 6,352 ​ 5,702 ​ 3,682 Residential mortgage loans ​ ​ 5,322 ​ ​ 5,217 ​ ​ 101 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 1,295 ​ ​ 1,295 ​ ​ — Consumer construction loans ​ ​ 1,750 ​ ​ 1,750 ​ ​ — Total individually evaluated impaired loans ​ $ 16,952 ​ $ 16,066 ​ $ 4,107 ​ (1) Balances are reduced by amount guaranteed by the SBA of $371 thousand at December 31, 2020. ​ ​ ​
Average Recorded Investments in Impaired Loans and Related Amount of Interest RecognizedThe following table presents the average recorded investments in impaired loans and the related amount of interest recognized during the time period in which the loans were impaired for the three months ended March 31, 2021 and 2020. The average balances are calculated based on the month-end balances of impaired loans. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method, and therefore no interest income is recognized. The interest income recognized on impaired loans noted below represents primarily accruing TDRs and nominal amounts of income recognized on a cash basis for well-collateralized impaired loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 ​ 2020 ​ ​ ​ Interest ​ ​ Interest ​ ​ ​ ​ ​ income ​ ​ ​ ​ income ​ ​ Average ​ recognized ​ Average ​ recognized ​ ​ recorded ​ on impaired ​ recorded ​ on impaired (In thousands) ​ investment ​ loans ​ investment ​ loans SBA loans held for investment (1) ​ $ 1,901 ​ $ 16 ​ $ 1,128 ​ $ 3 Commercial loans ​ ​ ​ ​ SBA 504 loans ​ — ​ — ​ 600 ​ 32 Commercial other ​ 374 ​ 3 ​ 5 ​ 10 Commercial real estate ​ 2,237 ​ 56 ​ 1,047 ​ 12 Consumer loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Home equity ​ ​ 844 ​ ​ 18 ​ ​ — ​ ​ — Consumer construction loans ​ ​ 2,610 ​ ​ 10 ​ ​ — ​ ​ — Total ​ $ 7,966 ​ $ 103 ​ $ 2,780 ​ $ 57 ​ (1) Balances are reduced by the average amount guaranteed by the SBA of $293 thousand and $182 thousand for the three months ended March 31, 2021 and 2020, respectively.
Loans modified as TDRs including number of modifications and recorded investment​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2021 ​ ​ Number of ​ Recorded investment (In thousands, except number of contracts) ​ contracts ​ at time of modification Home equity ​ 2 ​ $ 427 Total ​ 2 ​ $ 427

Allowance for Loan Losses and_2

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments (Tables)3 Months Ended
Mar. 31, 2021
Allowance for Loan Losses and Reserve for Unfunded Loan Commitments
Activity in the Allowance for Loan Losses by Portfolio SegmentThe following tables detail the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2021 ​ SBA held ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ (In thousands) ​ investment ​ Commercial ​ Residential ​ Consumer ​ construction ​ Total Balance, beginning of period ​ $ 1,301 ​ $ 14,992 ​ $ 5,318 ​ $ 681 ​ $ 813 ​ $ 23,105 Charge-offs ​ (282) ​ (373) ​ — ​ (1) ​ — ​ (656) Recoveries ​ 15 ​ 1 ​ — ​ — ​ — ​ 16 Net charge-offs ​ (267) ​ (372) ​ — ​ (1) ​ — ​ (640) Provision for (credit to) loan losses charged to expense ​ 620 ​ 107 ​ (309) ​ (131) ​ 213 ​ 500 Balance, end of period ​ $ 1,654 ​ $ 14,727 ​ $ 5,009 ​ $ 549 ​ $ 1,026 ​ $ 22,965 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, 2020 ​ SBA held ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ (In thousands) ​ investment ​ Commercial ​ Residential ​ Consumer ​ construction ​ Total Balance, beginning of period ​ $ 1,079 ​ $ 9,722 ​ $ 4,254 ​ $ 625 ​ $ 715 ​ $ 16,395 Charge-offs ​ (25) ​ (300) ​ (200) ​ — ​ — ​ (525) Recoveries ​ 5 ​ 1 ​ — ​ — ​ — ​ 6 Net charge-offs ​ (20) ​ (299) ​ (200) ​ — ​ — ​ (519) Provision for (credit to) loan losses charged to expense ​ (54) ​ 706 ​ 709 ​ 46 ​ 93 ​ 1,500 Balance, end of period ​ $ 1,005 ​ $ 10,129 ​ $ 4,763 ​ $ 671 ​ $ 808 ​ $ 17,376 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Allowance for Credit Losses on Financing ReceivablesThe following tables present loans and their related allowance for loan losses, by portfolio segment, as of March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ SBA held ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ (In thousands) ​ investment ​ Commercial ​ Residential ​ Consumer ​ construction ​ Total Allowance for loan losses ending balance: ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 319 ​ $ 2,999 ​ $ 44 ​ $ — ​ $ 189 ​ $ 3,551 Collectively evaluated for impairment ​ 1,335 ​ 11,728 ​ 4,965 ​ 549 ​ 837 ​ 19,414 Total ​ $ 1,654 ​ $ 14,727 ​ $ 5,009 ​ $ 549 ​ $ 1,026 ​ $ 22,965 Loan ending balances: ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 1,421 ​ $ 5,018 ​ $ 6,711 ​ $ 427 ​ $ 2,565 ​ $ 16,142 Collectively evaluated for impairment ​ 205,992 ​ 848,060 ​ 441,438 ​ 60,075 ​ 87,932 ​ 1,643,497 Total ​ $ 207,413 ​ $ 853,078 ​ $ 448,149 ​ $ 60,502 ​ $ 90,497 ​ $ 1,659,639 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ SBA held ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ ​ ​ (In thousands) ​ investment ​ Commercial ​ Residential ​ Consumer ​ construction ​ Total Allowance for loan losses ending balance: ​ ​ ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 324 ​ $ 3,682 ​ $ 101 ​ $ — ​ $ — ​ $ 4,107 Collectively evaluated for impairment ​ 977 ​ 11,310 ​ 5,217 ​ 681 ​ 813 ​ 18,998 Total ​ $ 1,301 ​ $ 14,992 ​ $ 5,318 ​ $ 681 ​ $ 813 ​ $ 23,105 Loan ending balances: ​ ​ ​ ​ ​ ​ Individually evaluated for impairment ​ $ 2,102 ​ $ 5,702 ​ $ 5,217 ​ $ 1,295 ​ $ 1,750 ​ $ 16,066 Collectively evaluated for impairment ​ 155,742 ​ 834,086 ​ 462,369 ​ 64,805 ​ 85,414 ​ 1,602,416 Total ​ $ 157,844 ​ $ 839,788 ​ $ 467,586 ​ $ 66,100 ​ $ 87,164 ​ $ 1,618,482

Derivative Financial Instrume_2

Derivative Financial Instruments and Hedging Activities (Tables)3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure
Summary of Interest Rate Swaps​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except percentages and years) March 31, 2021 December 31, 2020 Notional amount ​ $ 70,000 ​ $ 80,000 ​ Fair value ​ $ (219) ​ $ (1,026) ​ Weighted average pay rate ​ 1.05 % 1.19 % Weighted average receive rate ​ 0.23 % 0.89 % Weighted average maturity in years ​ 2.06 ​ 2.20 ​ Number of contracts ​ 4 ​ 5 ​
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 2020 ​ Gain (loss) recognized in OCI on derivatives ​ $ 807 ​ $ (1,410) ​

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)3 Months Ended
Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Transactions under the Company's stock option plans​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ Weighted ​ average ​ ​ ​ ​ ​ ​ ​ average ​ remaining ​ Aggregate ​ ​ ​ ​ exercise ​ contractual ​ intrinsic ​ ​ Shares ​ price ​ life in years ​ value Outstanding at December 31, 2020 672,800 ​ $ 16.42 6.8 ​ $ 1,952,568 Options granted 89,000 ​ 19.21 ​ ​ ​ Options exercised (12,467) ​ 6.43 ​ ​ ​ Options forfeited — ​ — ​ ​ ​ Options expired — ​ — ​ ​ ​ Outstanding at March 31, 2021 749,333 ​ $ 16.91 7.1 ​ $ 3,858,402 Exercisable at March 31, 2021 ​ 471,179 ​ $ 15.18 5.9 ​ $ 3,228,220
Schedule of fair values of the options grantedThe fair values of the options granted during the three months ended March 31, 2021 and 2020 were estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 2020 ​ Number of options granted ​ 89,000 ​ 101,000 ​ Weighted average exercise price ​ $ 19.21 ​ $ 20.39 ​ Weighted average fair value of options ​ $ 7.72 ​ $ 5.54 ​ Expected life in years (1) ​ 8.38 ​ 8.66 ​ Expected volatility (2) ​ 43.69 % 27.13 % Risk-free interest rate (3) ​ 1.14 % 1.55 % Dividend yield (4) ​ 1.68 % 1.61 % ​ (1) The expected life of the options was estimated based on historical employee behavior and represents the period of time that options granted are expected to be outstanding. (2) The expected volatility of the Company’s stock price was based on the historical volatility over the period commensurate with the expected life of the options. (3) The risk-free interest rate is the U.S. Treasury rate commensurate with the expected life of the options on the date of grant. (4) The expected dividend yield is the projected annual yield based on the grant date stock price.
Schedule of Information About Options ExercisedUpon exercise, the Company issues shares from its authorized but unissued common stock to satisfy the options. The following table presents information about options exercised during the three months ended March 31, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 2020 ​ Number of options exercised ​ 12,467 ​ 5,500 ​ Total intrinsic value of options exercised ​ $ 170,023 ​ $ 86,241 ​ Cash received from options exercised ​ $ 80,113 ​ $ 34,265 ​ Tax deduction realized from options ​ $ 51,151 ​ $ 25,264 ​
Schedule of Stock Options, by Exercise Price RangeThe following table summarizes information about stock options outstanding and exercisable at March 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options outstanding ​ Options exercisable ​ ​ ​ Weighted average Weighted ​ Weighted ​ ​ Options ​ remaining contractual ​ average ​ Options ​ average Range of exercise prices ​ outstanding ​ life (in years) ​ exercise price ​ exercisable ​ exercise price $0.00 - $6.00 33,000 1.4 ​ $ 5.59 33,000 ​ $ 5.59 $6.01 - $12.00 146,800 4.2 ​ 8.95 146,800 ​ 8.95 $12.01 - $18.00 132,533 7.8 ​ 16.37 69,201 ​ 15.72 $18.01 - $24.00 437,000 8.3 ​ 20.61 222,178 ​ 20.56 Total 749,333 7.1 ​ $ 16.91 367,869 ​ $ 15.18
Summary of Nonvested Restricted Stock Activity​ ​ ​ ​ ​ ​ ​ ​ ​ Average grant ​ ​ Shares ​ date fair value Nonvested restricted stock at December 31, 2020 87,972 ​ $ 19.26 Granted 30,000 ​ 19.46 Cancelled — ​ — Vested (26,633) ​ 18.76 Nonvested restricted stock at March 31, 2021 91,339 ​ $ 19.47
Restricted Stock GrantsRestricted stock awards granted during the three months ended March 31, 2021 and 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 2020 ​ Number of shares granted ​ 30,000 ​ 15,000 ​ Average grant date fair value ​ $ 19.46 ​ $ 16.63 ​
Summary of Components of Net Periodic Pension Cost of Defined Benefit Plan Recognized​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 2020 ​ Service cost (1) ​ ​ $ (34) ​ $ 31 ​ Interest cost ​ ​ 34 ​ 37 ​ Amortization of prior service cost ​ ​ 21 ​ 21 ​ Net periodic benefit cost ​ ​ $ 21 ​ $ 89 ​ ​ (1) Reduction in service cost totaling
Summary Of Changes In Benefit Obligations Of Defined Benefit Plan​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) 2021 2020 ​ Benefit obligation, beginning of year ​ $ 3,845 ​ $ 3,571 ​ Service cost (1) ​ (34) ​ 31 ​ Interest cost ​ 34 ​ 37 ​ Benefit obligation, end of period ​ $ 3,845 ​ $ 3,639 ​ ​ (1) Reduction in service cost totaling
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocation of Share-based Compensation Costs​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ 2021 2020 Compensation expense ​ ​ $ 207,602 ​ $ 192,489 Income tax benefit ​ ​ $ 59,997 ​ $ 55,629
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocation of Share-based Compensation CostsCompensation expense related to restricted stock for the three months ended March 31, 2021 and 2020 is detailed in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ ​ ​ 2021 2020 ​ Compensation expense ​ $ 166,349 ​ $ 172,904 ​ Income tax benefit ​ $ 48,075 ​ $ 49,969 ​

Regulatory Capital (Tables)

Regulatory Capital (Tables)3 Months Ended
Mar. 31, 2021
Regulatory Capital
Schedule of Compliance with Regulatory Capital Requirements under Banking RegulationsThe following table shows the CBLR ratio for the Company and the Bank for the period ended March 31, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At March 31, 2021 ​ ​ At December 31, 2020 ​ ​ Company Bank Company Bank CBLR 10.19 % 9.85 % 10.09 % 9.80 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Leases (Tables)

Leases (Tables)3 Months Ended
Mar. 31, 2021
Leases
Net Lease CostThe table below summarizes our net lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 ​ 2020 ​ Operating lease cost ​ $ 149 ​ $ 148 ​ Net lease cost ​ $ 149 ​ $ 148 ​ ​ The table below summarizes the cash and non-cash activities associated with our leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the three months ended March 31, ​ (In thousands) ​ 2021 ​ 2020 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 145 ​ $ 141 ​ ROU assets obtained in exchange for new operating lease liabilities ​ $ — ​ $ — ​
Summary of Other Information for Operating LeasesThe table below summarizes other information related to our operating leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except percentages and years) March 31, 2021 December 31, 2020 Weighted average remaining lease term in years ​ 5.81 ​ ​ 5.96 ​ Weighted average discount rate ​ 5.47 % ​ 5.45 % Operating lease right-of-use assets ​ $ 2,247 ​ $ 2,365 ​
Summary of Maturity of Remaining Lease LiabilitiesThe table below summarizes the maturity of remaining lease liabilities: ​ ​ ​ ​ ​ (In thousands) March 31, 2021 2021 (excluding the three months ended March 31, 2021) ​ $ 411 2022 ​ 477 2023 ​ 410 2024 ​ 361 2025 ​ 371 2026 and thereafter ​ 664 Total lease payments ​ $ 2,694 Less: Interest ​ (392) Present value of lease liabilities ​ $ 2,302

Significant Accounting Polici_3

Significant Accounting Policies (Details)3 Months Ended
Mar. 31, 2021
Significant Accounting Policies
Guarantee percentage of SBA Loan90.00%

Net Income per Share (Details)

Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Net Income per Share
Net income $ 8,496 $ 5,368
Weighted average common shares outstanding - Basic10,437 10,883
Plus: Potential dilutive common stock equivalents (in shares)128 154
Weighted average common shares outstanding - Diluted (in shares)10,565 11,037
Net income per common share - Basic $ 0.81 $ 0.49
Net income per common share - Diluted $ 0.80 $ 0.49
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive (in shares)154 363

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Income Taxes
Income tax expense (benefit) $ 2,946 $ 1,598
Effective tax rate25.70%22.90%
Unrecognized tax benefits, income tax penalties and interest expense $ 0 $ 0
Unrecognized tax benefits, income tax penalties and interest accrued $ 0 $ 0
Income tax returns open tax years (2012 and thereafter)2016

Other Comprehensive (Loss) In_3

Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance $ 173,911 $ 160,709
Total other comprehensive income (loss), net of tax655 (986)
Ending balance181,186 164,305
Reclassification to unappropriated retained earnings98,331 $ 90,669
Accumulated other comprehensive (loss) income
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance(1,189)154
Total other comprehensive income (loss), net of tax655 (986)
Ending balance(534)(832)
Accounting Standards Update 2016-01 and 2018-02
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Reclassification to unappropriated retained earnings35 35
Accounting Standards Update 2016-01 and 2018-02 | Net unrealized (losses) gains on securities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance(179)316
Other comprehensive income (loss) before reclassifications306 (131)
Less amounts reclassified from accumulated other comprehensive income (loss)245 (134)
Total other comprehensive income (loss), net of tax61 3
Ending balance(118)320
Accounting Standards Update 2016-01 and 2018-02 | Adjustments related to defined benefit plan
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance(238)(295)
Less amounts reclassified from accumulated other comprehensive income (loss)(15)(15)
Total other comprehensive income (loss), net of tax15 15
Ending balance(223)(280)
Accounting Standards Update 2016-01 and 2018-02 | Net unrealized (losses) gains from cash flow hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance(737)168
Other comprehensive income (loss) before reclassifications579 (1,004)
Total other comprehensive income (loss), net of tax579 (1,004)
Ending balance(158)(836)
Accounting Standards Update 2016-01 and 2018-02 | Accumulated other comprehensive (loss) income
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance(1,154)189
Other comprehensive income (loss) before reclassifications885 (1,135)
Less amounts reclassified from accumulated other comprehensive income (loss)230 (149)
Total other comprehensive income (loss), net of tax655 (986)
Ending balance $ (499) $ (797)

Fair Value - Fair Value on Recu

Fair Value - Fair Value on Recurring Basis - Narrative (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Securities available for sale $ 32,330 $ 45,617
Percentage of portfolio in residential mortgage backed securities46.00%
Residential mortgage backed securities guaranteed by Government National Mortgage Association or Federal National Mortgage Association or Federal Home Loan Mortgage Corporation $ 14,800
Equity securities2,221 1,954
Residential mortgage backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Securities available for sale $ 15,013 $ 17,410

Fair Value - Assets And Liabili

Fair Value - Assets And Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale $ 32,330 $ 45,617
Equity securities2,221 1,954
Loans held for sale10,392 10,712
Swap agreements(219)(1,026)
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale27,792 41,217
Equity securities2,221 1,954
Loans held for sale10,392 10,712
Swap agreements(219)(1,026)
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale4,538 4,400
U.S. Government sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale0 2,003
U.S. Government sponsored entities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale2,003
State and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale2,375 2,969
State and political subdivisions | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale2,375 2,969
Residential mortgage backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale15,013 17,410
Residential mortgage backed securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale15,013 17,410
Corporate and other securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale14,942 23,235
Corporate and other securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale10,404 18,835
Corporate and other securities | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available-for-sale4,538 4,400
Interest rate swap agreements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Swap agreements(219)(1,026)
Interest rate swap agreements | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Swap agreements $ (219) $ (1,026)

Fair Value - Assets and Liabi_2

Fair Value - Assets and Liabilities Subject to Fair Value Adjustments (Impairment) on a Nonrecurring Basis (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired collateral-dependent loans $ 12,600 $ 12,000
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired collateral-dependent loans12,591 11,959
OREO, Net (Credit) Provision During Period(225)
Impaired collateral-dependent loans, Net (Credit) Provision During Period(556)3,693
Nonrecurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired collateral-dependent loans $ 12,591 $ 11,959

Fair Value - Fair Value on a No

Fair Value - Fair Value on a Nonrecurring Basis Narrative (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired financing receivable, related allowance $ 3,551 $ 4,107
Decrease in valuation allowance for impaired loans(556)
Letters of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Standby letter of credit $ 4,400 $ 4,500

Fair Value - Available for Sale

Fair Value - Available for Sale Debt Securities (Details) - Recurring - Significant Unobservable Inputs (Level 3) - Available for Sale Debt Securities $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)
Fair value on a recurring basis
Balance at beginning of period $ 4,400
Unrealized gains138
Balance at end of period $ 4,538

Fair Value - Carrying Amount an

Fair Value - Carrying Amount and Fair Values (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Carrying amount | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents $ 239,577 $ 219,311
Carrying amount | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities34,551 47,571
SBA loans held for sale8,809 9,335
Loans, net of allowance for loan losses1,636,674 1,595,377
Federal Home Loan Bank stock9,269 10,594
Accrued interest receivable9,831 10,429
Financial liabilities:
Deposits1,628,393 1,557,959
Borrowed funds and subordinated debentures180,310 210
Accrued interest payable255 248
Carrying amount | Significant Unobservable Inputs (Level 3)
Financial assets:
Servicing assets1,738 1,857
Carrying amount | Significant Unobservable Inputs (Level 3) | Recurring | Corporate and other securities
Financial assets:
Securities5,300
Estimated fair value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents239,577 219,311
Estimated fair value | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities34,551 47,571
SBA loans held for sale10,392 10,712
Loans, net of allowance for loan losses1,650,152 1,613,593
Federal Home Loan Bank stock9,269 10,594
Accrued interest receivable9,831 10,429
Financial liabilities:
Deposits1,628,042 1,561,502
Borrowed funds and subordinated debentures181,727 212,358
Accrued interest payable255 248
Estimated fair value | Significant Unobservable Inputs (Level 3)
Financial assets:
Servicing assets1,738 $ 1,857
Estimated fair value | Significant Unobservable Inputs (Level 3) | Recurring | Corporate and other securities
Financial assets:
Securities $ 4,500

Securities - Amortized Cost to

Securities - Amortized Cost to Fair Value (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Available for sale:
Amortized cost $ 32,549 $ 45,921
Gross unrealized gains695 814
Gross unrealized losses(914)(1,118)
Securities available for sale32,330 45,617
Equity securities:
Amortized cost2,112 2,112
Gross unrealized gains184 0
Gross unrealized losses(75)(158)
Estimated fair value2,221 1,954
U.S. Government sponsored entities
Available for sale:
Amortized cost0 2,000
Gross unrealized gains0 3
Gross unrealized losses0 0
Securities available for sale0 2,003
State and political subdivisions
Available for sale:
Amortized cost2,355 2,935
Gross unrealized gains20 34
Gross unrealized losses0 0
Securities available for sale2,375 2,969
Residential mortgage backed securities
Available for sale:
Amortized cost14,498 16,765
Gross unrealized gains515 645
Gross unrealized losses0 0
Securities available for sale15,013 17,410
Corporate and other securities
Available for sale:
Amortized cost15,696 24,221
Gross unrealized gains160 132
Gross unrealized losses(914)(1,118)
Securities available for sale $ 14,942 $ 23,235

Securities - Securities By Cont

Securities - Securities By Contractual Maturity (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Available for sale at fair value:
Within one year, Amount $ 1,153
After one through five years, Amount1,266
After five through ten years, Amount11,837
After ten years, Amount18,074
Securities available for sale $ 32,330 $ 45,617
Within one year, Yield1.51%
After one through five years, Yield3.01%
After five through ten years, Yield4.40%
After ten years, Yield2.41%
Total carrying value, Yield3.13%
Equity securities at fair value:
After ten years, Amount $ 2,221
Estimated fair value $ 2,221 1,954
After ten years, Yield2.34%
Total carrying value, Yield2.34%
U.S. Government sponsored entities
Available for sale at fair value:
Securities available for sale $ 0 2,003
State and political subdivisions
Available for sale at fair value:
Within one year, Amount1,149
After one through five years, Amount681
After ten years, Amount545
Securities available for sale $ 2,375 2,969
Within one year, Yield1.50%
After one through five years, Yield3.12%
After ten years, Yield2.74%
Total carrying value, Yield2.25%
Residential mortgage backed securities
Available for sale at fair value:
Within one year, Amount $ 4
After one through five years, Amount585
After five through ten years, Amount1,433
After ten years, Amount12,991
Securities available for sale $ 15,013 17,410
Within one year, Yield4.93%
After one through five years, Yield2.87%
After five through ten years, Yield2.26%
After ten years, Yield2.14%
Total carrying value, Yield2.18%
Corporate and other securities
Available for sale at fair value:
After five through ten years, Amount $ 10,404
After ten years, Amount4,538
Securities available for sale $ 14,942 $ 23,235
After five through ten years, Yield4.69%
After ten years, Yield3.15%
Total carrying value, Yield4.22%

Securities - Securities in Unre

Securities - Securities in Unrealized Loss Position (Details) $ in ThousandsMar. 31, 2021USD ($)securityDec. 31, 2020USD ($)security
Available for sale:
Available for sale, Total number in a loss position | security6 9
Available for sale, Less than 12 months, Estimated fair value $ 2,382 $ 4,793
Available for sale, Less than 12 months, Unrealized loss(118)(20)
Available for sale, 12 months and greater, Estimated fair value7,759 9,157
Available for sale, 12 Months and greater Unrealized loss(796)(1,098)
Available for sale, Estimated fair value10,141 13,950
Available for sale, Unrealized loss $ (914) $ (1,118)
Corporate and other securities
Available for sale:
Available for sale, Total number in a loss position | security6 9
Available for sale, Less than 12 months, Estimated fair value $ 2,382 $ 4,793
Available for sale, Less than 12 months, Unrealized loss(118)(20)
Available for sale, 12 months and greater, Estimated fair value7,759 9,157
Available for sale, 12 Months and greater Unrealized loss(796)(1,098)
Available for sale, Estimated fair value10,141 13,950
Available for sale, Unrealized loss $ (914) $ (1,118)

Securities - Schedule Of Realiz

Securities - Schedule Of Realized Gains (Losses) For Marketable Securities (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Available for sale:
Realized gains $ 43 $ 296
Realized losses0 0
Total debt securities available for sale43 296
Net gains (losses) on sales of securities $ 43 $ 296

Securities - Realized Gains and

Securities - Realized Gains and Losses (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)securityMar. 31, 2020USD ($)securityDec. 31, 2020USD ($)
Schedule of Investments
Realized gains $ 43 $ 296
Realized losses0 $ 0
Available-for-sale securities pledged as collateral $ 1,500 $ 1,600
1 Security Sold | Municipal Securities
Schedule of Investments
Number of securities sold | security1
Book value $ 381
Securities realized gain (loss) $ 27
1 Security Sold | Taxable Municipal Securities
Schedule of Investments
Number of securities sold | security1
Book value $ 456
Securities realized gain (loss) $ 140
3 Mortgage Backed Securities | Mortgage-backed securities
Schedule of Investments
Number of securities sold | security3
Book value $ 2,800
Securities realized gain (loss) $ 57
6 Corporate Bonds | Corporate Bond Securities
Schedule of Investments
Number of securities sold | security6
Book value $ 7,000
Securities realized gain (loss)39
1 Corporate Bond | Corporate Bond Securities
Schedule of Investments
Number of securities sold | security1
Book value $ 2,200
Securities realized gain (loss)61
1 Security Called | Municipal Securities
Schedule of Investments
Book value485
Securities realized gain (loss) $ 4 $ 11
1 Security Called | Taxable Municipal Securities
Schedule of Investments
Number of securities sold | security1
Book value $ 496

Securities - Realized Gains (Lo

Securities - Realized Gains (Losses) for Equity Securities (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Securities
Net (losses) gains recognized during the period on equity securities $ 267 $ (471)
Net gains recognized during the period on equity securities sold during the period5
Unrealized (losses) gains recognized during the reporting period on equity securities still held at the reporting date $ 267 $ (466)

Loans - Narrative (Details)

Loans - Narrative (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Dec. 31, 2020
Guarantee percentage of SBA Loan90.00%
Residential Consumer Properties
Residential loans in process of foreclosure $ 2.5 $ 4.8

Loans - Classification of Loans

Loans - Classification of Loans By Class (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans $ 1,659,639 $ 1,618,482
SBA loans held for sale8,809 9,335
Total loans1,668,448 1,627,817
SBA loans held for investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans38,296 39,587
SBA PPP loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans169,117 118,257
Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans853,078 839,788
Commercial loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans650,869 630,423
Commercial loans | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans66,972 71,404
Commercial loans | Consumer other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans113,982 118,280
Residential mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans448,149 467,586
Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans60,502 66,100
Consumer loans | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans59,238 62,549
Consumer loans | Consumer other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans1,264 3,551
Consumer construction loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans $ 90,497 $ 87,164

Loans - Credit Quality Indicato

Loans - Credit Quality Indicators (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Loans $ 1,659,639 $ 1,618,482
SBA loans held for investment
Financing Receivable, Recorded Investment [Line Items]
Loans38,296 39,587
SBA loans held for investment | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans35,932 36,991
SBA loans held for investment | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans532 525
SBA loans held for investment | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans1,832 2,071
SBA PPP loans
Financing Receivable, Recorded Investment [Line Items]
Loans169,117 118,257
SBA PPP loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans169,117 118,257
Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Loans853,078 839,788
Commercial loans | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans650,869 630,423
Commercial loans | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans66,972 71,404
Commercial loans | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Loans113,982 118,280
Commercial loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans817,006 804,239
Commercial loans | Pass | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans623,270 603,482
Commercial loans | Pass | Construction
Financing Receivable, Recorded Investment [Line Items]
Loans66,972 71,404
Commercial loans | Pass | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Loans105,509 109,672
Commercial loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans27,932 30,739
Commercial loans | Special mention | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans22,519 25,206
Commercial loans | Special mention | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Loans5,413 5,533
Commercial loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans8,140 4,810
Commercial loans | Substandard | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Loans5,080 1,735
Commercial loans | Substandard | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Loans3,060 3,075
Residential mortgage loans
Financing Receivable, Recorded Investment [Line Items]
Loans448,149 467,586
Residential mortgage loans | Performing
Financing Receivable, Recorded Investment [Line Items]
Loans441,438 462,369
Residential mortgage loans | Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Loans6,711 5,217
Consumer loans
Financing Receivable, Recorded Investment [Line Items]
Loans60,502 66,100
Consumer loans | Home equity
Financing Receivable, Recorded Investment [Line Items]
Loans59,238 62,549
Consumer loans | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Loans1,264 3,551
Consumer loans | Performing
Financing Receivable, Recorded Investment [Line Items]
Loans60,502 64,805
Consumer loans | Performing | Home equity
Financing Receivable, Recorded Investment [Line Items]
Loans59,238 61,254
Consumer loans | Performing | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Loans1,264 3,551
Consumer loans | Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Loans1,295
Consumer loans | Nonperforming | Home equity
Financing Receivable, Recorded Investment [Line Items]
Loans1,295
Consumer construction loans
Financing Receivable, Recorded Investment [Line Items]
Loans90,497 87,164
Consumer construction loans | Performing
Financing Receivable, Recorded Investment [Line Items]
Loans87,932 85,414
Consumer construction loans | Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Loans2,565 1,750
Total residential mortgage and consumer loans
Financing Receivable, Recorded Investment [Line Items]
Loans599,148 620,850
Total residential mortgage and consumer loans | Performing
Financing Receivable, Recorded Investment [Line Items]
Loans589,872 612,588
Total residential mortgage and consumer loans | Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Loans9,276 8,262
Total SBA, SBA 504 and commercial loans
Financing Receivable, Recorded Investment [Line Items]
Loans1,060,491 997,632
Total SBA, SBA 504 and commercial loans | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans1,022,055 959,487
Total SBA, SBA 504 and commercial loans | Special mention
Financing Receivable, Recorded Investment [Line Items]
Loans28,464 31,264
Total SBA, SBA 504 and commercial loans | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans $ 9,972 $ 6,881

Loans - Aging Analysis of Past

Loans - Aging Analysis of Past Due and Nonaccrual Loans by Class (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Total past due $ 29,726 $ 28,573
Financing receivable, nonaccrual status11,788 12,060
Current1,636,058 1,598,796
Total loans held for investment, current1,629,913 1,589,909
Total1,659,639 1,618,482
SBA loans held for sale8,809 9,335
Total loans1,668,448 1,627,817
Total loans32,390 29,021
SBA 504 loans
Financing Receivable, Recorded Investment [Line Items]
Current21,255 19,681
Total21,255 19,681
30-59 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due12,911 8,882
Total loans15,575 9,330
60-89 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due2,487 7,182
90 days and still accruing
Financing Receivable, Recorded Investment [Line Items]
Total past due2,540 449
SBA loans held for investment
Financing Receivable, Recorded Investment [Line Items]
Total past due7,901 4,545
Financing receivable, nonaccrual status1,560 2,473
Current30,395 35,042
Total38,296 39,587
SBA loans held for investment | 30-59 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due6,341 792
SBA loans held for investment | 60-89 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due1,280
SBA PPP loans
Financing Receivable, Recorded Investment [Line Items]
Current169,117 118,257
Total169,117 118,257
Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total853,078 839,788
Commercial loans | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total past due2,288 6,139
Financing receivable, nonaccrual status612 1,059
Current648,581 624,284
Total650,869 630,423
Commercial loans | Construction
Financing Receivable, Recorded Investment [Line Items]
Total past due1,047
Current66,972 70,357
Total66,972 71,404
Commercial loans | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total past due443 653
Financing receivable, nonaccrual status340 266
Current113,539 117,627
Total113,982 118,280
Commercial loans | 30-59 days past due | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total past due889 3,109
Commercial loans | 30-59 days past due | Construction
Financing Receivable, Recorded Investment [Line Items]
Total past due1,047
Commercial loans | 30-59 days past due | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total past due43 186
Commercial loans | 60-89 days past due | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total past due787 1,971
Commercial loans | 60-89 days past due | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total past due60 201
Consumer construction loans
Financing Receivable, Recorded Investment [Line Items]
Total past due4,047 2,666
Financing receivable, nonaccrual status2,565 1,750
Current86,450 84,498
Total90,497 87,164
Consumer construction loans | 30-59 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due854 120
Consumer construction loans | 60-89 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due416 796
Consumer construction loans | 90 days and still accruing
Financing Receivable, Recorded Investment [Line Items]
Total past due212
Residential mortgage loans
Financing Receivable, Recorded Investment [Line Items]
Total past due14,808 11,644
Financing receivable, nonaccrual status6,711 5,217
Current433,341 455,942
Total448,149 467,586
Residential mortgage loans | 30-59 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due4,728 3,232
Residential mortgage loans | 60-89 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due1,224 2,933
Residential mortgage loans | 90 days and still accruing
Financing Receivable, Recorded Investment [Line Items]
Total past due2,145 262
Consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total60,502 66,100
Consumer loans | Home equity
Financing Receivable, Recorded Investment [Line Items]
Total past due232 1,875
Financing receivable, nonaccrual status1,295
Current59,006 60,674
Total59,238 62,549
Consumer loans | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total past due7 4
Current1,257 3,547
Total1,264 3,551
Consumer loans | 30-59 days past due | Home equity
Financing Receivable, Recorded Investment [Line Items]
Total past due49 393
Consumer loans | 30-59 days past due | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total past due7 3
Consumer loans | 60-89 days past due | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total past due1
Consumer loans | 90 days and still accruing | Home equity
Financing Receivable, Recorded Investment [Line Items]
Total past due183 187
Total SBA, SBA 504 and commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total1,060,491 997,632
SBA loans held for sale
Financing Receivable, Recorded Investment [Line Items]
Total past due2,664 448
Current6,145 8,887
SBA loans held for sale8,809 9,335
SBA loans held for sale | 30-59 days past due
Financing Receivable, Recorded Investment [Line Items]
Total past due2,664 448
Pass | SBA 504 loans
Financing Receivable, Recorded Investment [Line Items]
Total21,255 19,681
Pass | SBA loans held for investment
Financing Receivable, Recorded Investment [Line Items]
Total35,932 36,991
Pass | SBA PPP loans
Financing Receivable, Recorded Investment [Line Items]
Total169,117 118,257
Pass | Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total817,006 804,239
Pass | Commercial loans | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total623,270 603,482
Pass | Commercial loans | Construction
Financing Receivable, Recorded Investment [Line Items]
Total66,972 71,404
Pass | Commercial loans | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total105,509 109,672
Pass | Total SBA, SBA 504 and commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total1,022,055 959,487
Special mention | SBA loans held for investment
Financing Receivable, Recorded Investment [Line Items]
Total532 525
Special mention | Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total27,932 30,739
Special mention | Commercial loans | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total22,519 25,206
Special mention | Commercial loans | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total5,413 5,533
Special mention | Total SBA, SBA 504 and commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total28,464 31,264
Substandard | SBA loans held for investment
Financing Receivable, Recorded Investment [Line Items]
Total1,832 2,071
Substandard | Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total8,140 4,810
Substandard | Commercial loans | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total5,080 1,735
Substandard | Commercial loans | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total3,060 3,075
Substandard | Total SBA, SBA 504 and commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total9,972 6,881
Performing | Consumer construction loans
Financing Receivable, Recorded Investment [Line Items]
Total87,932 85,414
Performing | Residential mortgage loans
Financing Receivable, Recorded Investment [Line Items]
Total441,438 462,369
Performing | Consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total60,502 64,805
Performing | Consumer loans | Home equity
Financing Receivable, Recorded Investment [Line Items]
Total59,238 61,254
Performing | Consumer loans | Consumer other
Financing Receivable, Recorded Investment [Line Items]
Total1,264 3,551
Nonperforming | Consumer construction loans
Financing Receivable, Recorded Investment [Line Items]
Total2,565 1,750
Nonperforming | Residential mortgage loans
Financing Receivable, Recorded Investment [Line Items]
Total $ 6,711 5,217
Nonperforming | Consumer loans
Financing Receivable, Recorded Investment [Line Items]
Total1,295
Nonperforming | Consumer loans | Home equity
Financing Receivable, Recorded Investment [Line Items]
Total $ 1,295

Loans - Impaired Loans with Ass

Loans - Impaired Loans with Associated Allowance (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Unpaid principal balance
With no related allowance $ 11,355 $ 10,386
With an allowance5,545 6,566
Total individually evaluated impaired loans16,900 16,952
Recorded investment
With no related allowance11,149 6,205
With an allowance4,993 5,886
Total individually evaluated impaired loans16,142 16,066
Specific reserves3,551 4,107
Financing receivable, nonaccrual status11,788 12,060
SBA loans held for investment
Unpaid principal balance
With no related allowance1,138 1,799
With an allowance691 434
Total individually evaluated impaired loans1,829 2,233
Recorded investment
With no related allowance1,037 1,698
With an allowance384 404
Total individually evaluated impaired loans1,421 2,102
Specific reserves319 324
Financing receivable, nonaccrual status1,560 2,473
Commercial loans
Unpaid principal balance
With no related allowance1,920 1,462
With an allowance3,343 4,890
Total individually evaluated impaired loans5,263 6,352
Recorded investment
With no related allowance1,920 1,462
With an allowance3,098 4,240
Total individually evaluated impaired loans5,018 5,702
Specific reserves2,999 3,682
Commercial loans | Commercial real estate
Unpaid principal balance
With no related allowance1,920 1,462
With an allowance140 1,730
Total individually evaluated impaired loans2,060 3,192
Recorded investment
With no related allowance1,920 1,462
With an allowance20 1,080
Total individually evaluated impaired loans1,940 2,542
Specific reserves20 576
Financing receivable, nonaccrual status612 1,059
Commercial loans | Consumer other
Unpaid principal balance
With an allowance3,203 3,160
Total individually evaluated impaired loans3,203 3,160
Recorded investment
With an allowance3,078 3,160
Total individually evaluated impaired loans3,078 3,160
Specific reserves2,979 3,106
Financing receivable, nonaccrual status340 266
Residential mortgage loans
Unpaid principal balance
With no related allowance6,090 4,080
With an allowance726 1,242
Total individually evaluated impaired loans6,816 5,322
Recorded investment
With no related allowance5,985 3,975
With an allowance726 1,242
Total individually evaluated impaired loans6,711 5,217
Specific reserves44 101
Financing receivable, nonaccrual status6,711 5,217
Consumer loans
Recorded investment
Total individually evaluated impaired loans427
Consumer loans | Home equity
Unpaid principal balance
With no related allowance427 1,295
Total individually evaluated impaired loans427 1,295
Recorded investment
With no related allowance427 1,295
Total individually evaluated impaired loans427 1,295
Financing receivable, nonaccrual status1,295
Consumer construction loans
Unpaid principal balance
With no related allowance1,780 1,750
With an allowance785
Total individually evaluated impaired loans2,565 1,750
Recorded investment
With no related allowance1,780 1,750
With an allowance785
Total individually evaluated impaired loans2,565 1,750
Specific reserves189
Financing receivable, nonaccrual status2,565 1,750
Collateral Pledged | Small Business Administration
Recorded investment
Financing receivable, nonaccrual status $ 139 $ 371

Loans - Average Recorded Invest

Loans - Average Recorded Investments and Interest Recognized (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Financing Receivable, Impaired [Line Items]
Average recorded investment $ 7,966 $ 2,780
Interest income recognized on impaired loans103 57
SBA 504 loans
Financing Receivable, Impaired [Line Items]
Average recorded investment600
Interest income recognized on impaired loans32
SBA loans held for investment
Financing Receivable, Impaired [Line Items]
Average recorded investment1,901 1,128
Interest income recognized on impaired loans16 3
Impaired financing receivable average recorded investment, guaranteed by Small Business Administration293 182
Commercial loans | Commercial real estate
Financing Receivable, Impaired [Line Items]
Average recorded investment2,237 1,047
Interest income recognized on impaired loans56 12
Commercial loans | Consumer other
Financing Receivable, Impaired [Line Items]
Average recorded investment374 5
Interest income recognized on impaired loans3 $ 10
Consumer loans | Home equity
Financing Receivable, Impaired [Line Items]
Average recorded investment844
Interest income recognized on impaired loans18
Consumer construction loans
Financing Receivable, Impaired [Line Items]
Average recorded investment2,610
Interest income recognized on impaired loans $ 10

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructuring (Narrative) (Details) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021USD ($)loanMar. 31, 2020USD ($)loanDec. 31, 2020USD ($)
Financing Receivable, Impaired [Line Items]
Average recorded investment $ 7,966 $ 2,780
Impaired financing receivable, related allowance3,551 $ 4,107
Financing receivable, nonaccrual status $ 11,788 12,060
Number of loans modified as a TDR | loan2 0
Number of loans modified as TDR, subsequent default | loan0
Number of loans modified as TDRs | loan2 0
Troubled Debt Restructuring (TDR)
Financing Receivable, Impaired [Line Items]
Impaired loan reserve $ 0
Troubled Debt Restructuring (TDR) | Performing
Financing Receivable, Impaired [Line Items]
Average recorded investment $ 1,100 $ 663

Loans - Troubled Debt Restruc_2

Loans - Troubled Debt Restructuring Financing Receivable (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)contractloanMar. 31, 2020loanDec. 31, 2020USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans modified as TDRs | loan2 0
Recorded investment at time of modification $ 16,142 $ 16,066
Consumer loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans modified as TDRs | contract2
Recorded investment at time of modification $ 427
Home equity | Consumer loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans modified as TDRs | contract2
Recorded investment at time of modification $ 427 $ 1,295

Allowance for Loan Losses and_3

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments - Activity in the Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period $ 23,105 $ 16,395
Charge-offs(656)(525)
Recoveries16 6
Net (charge-offs) recoveries(640)(519)
Provision for (credit to) loan losses charged to expense500 1,500
Balance, end of period22,965 17,376
SBA loans held for investment
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period1,301 1,079
Charge-offs(282)(25)
Recoveries15 5
Net (charge-offs) recoveries(267)(20)
Provision for (credit to) loan losses charged to expense620 (54)
Balance, end of period1,654 1,005
Commercial loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period14,992 9,722
Charge-offs(373)(300)
Recoveries1 1
Net (charge-offs) recoveries(372)(299)
Provision for (credit to) loan losses charged to expense107 706
Balance, end of period14,727 10,129
Residential mortgage loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period5,318 4,254
Charge-offs(200)
Net (charge-offs) recoveries(200)
Provision for (credit to) loan losses charged to expense(309)709
Balance, end of period5,009 4,763
Consumer loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period681 625
Charge-offs(1)
Net (charge-offs) recoveries(1)
Provision for (credit to) loan losses charged to expense(131)46
Balance, end of period549 671
Consumer construction loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period813 715
Provision for (credit to) loan losses charged to expense213 93
Balance, end of period $ 1,026 $ 808

Allowance for Loan Losses and_4

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments - Allowance for Credit Losses on Basis of Impairment Method (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Mar. 31, 2020Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Total $ 22,965 $ 23,105 $ 17,376 $ 16,395
Total1,659,639 1,618,482
SBA loans held for investment
Financing Receivable, Allowance for Credit Losses [Line Items]
Total1,654 1,301 1,005 1,079
Total38,296 39,587
SBA including PPP loans held for investment
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment319 324
Collectively evaluated for impairment1,335 977
Total1,654 1,301
Individually evaluated for impairment1,421 2,102
Collectively evaluated for impairment205,992 155,742
Total207,413 157,844
Commercial loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment2,999 3,682
Collectively evaluated for impairment11,728 11,310
Total14,727 14,992 10,129 9,722
Individually evaluated for impairment5,018 5,702
Collectively evaluated for impairment848,060 834,086
Total853,078 839,788
Residential mortgage loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment44 101
Collectively evaluated for impairment4,965 5,217
Total5,009 5,318 4,763 4,254
Individually evaluated for impairment6,711 5,217
Collectively evaluated for impairment441,438 462,369
Total448,149 467,586
Consumer loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment549 681
Total549 681 671 625
Individually evaluated for impairment427 1,295
Collectively evaluated for impairment60,075 64,805
Total60,502 66,100
Consumer construction loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment189
Collectively evaluated for impairment837 813
Total1,026 813 $ 808 $ 715
Individually evaluated for impairment2,565 1,750
Collectively evaluated for impairment87,932 85,414
Total90,497 87,164
Total
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment3,551 4,107
Collectively evaluated for impairment19,414 18,998
Total22,965 23,105
Individually evaluated for impairment16,142 16,066
Collectively evaluated for impairment1,643,497 1,602,416
Total $ 1,659,639 $ 1,618,482

Allowance for Loan Losses and_5

Allowance for Loan Losses and Reserve for Unfunded Loan Commitments - Narrative (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Allowance for Loan Losses and Reserve for Unfunded Loan Commitments
Reserve for commitments $ 310 $ 288

Derivative Financial Instrume_3

Derivative Financial Instruments and Hedging Activities (Details) - Interest rate swap agreements $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021USD ($)contractDec. 31, 2020USD ($)contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash Collateral Pledged $ 1,500 $ 1,500
Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount70,000 80,000
Fair value $ (219) $ (1,026)
Weighted average pay rate1.05%1.19%
Weighted average receive rate0.23%0.89%
Weighted average maturity in years2 years 21 days2 years 2 months 12 days
Number of contracts | contract4 5

Derivative Financial Instrume_4

Derivative Financial Instruments and Hedging Activities - Gain (Loss) in AOCI (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized gains (losses) relating to interest rate swaps $ 807 $ (1,410)
AOCI (loss) gain on cash flow derivative instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) recognized in OCI on derivatives $ 807 $ (1,410)

Employee Benefit Plans - Narrat

Employee Benefit Plans - Narrative (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)installmentsharesMar. 31, 2020USD ($)Dec. 31, 2020USD ($)sharesDec. 31, 2019USD ($)
Share-based Compensation Arrangement by Share-based Payment Award
Options, outstanding (in shares) | shares749,333 672,800
Defined contribution plan, maximum annual contributions per employee, percent80.00%
Defined contribution plan employer discretionary contribution amount $ 261 $ 185
Deferred compensation128 491
Interest paid on deferred fees28 28
Deferred compensation arrangement with individual, distributions paid $ 3 3
Description of defined contribution pension and other postretirement plansThe retirement benefit under the SERP is an amount equal to sixty percent (60%) of the average of the President and CEO’s base salary for the thirty-six (36) months immediately preceding the executive’s separation from service after age 66, adjusted annually thereafter by two percent (2%)
Defined benefit plans future payments $ 3,845 3,639 $ 3,845 $ 3,571
Director
Share-based Compensation Arrangement by Share-based Payment Award
Deferred compensation arrangement guaranteed award percentage100.00%
Executive Management
Share-based Compensation Arrangement by Share-based Payment Award
Deferred compensation arrangement guaranteed award percentage100.00%
SERP | President and CEO
Share-based Compensation Arrangement by Share-based Payment Award
Percent of average executive base salary60.00%
Payment term after separation36 months
Percent of average executive base salary, adjustment thereafter2.00%
Number of annual payments after separation | installment15
Total estimated future payments $ 6,200
Discount rate used to calculate the present value of the benefit obligation4.00%
Annual vesting percentage3.00%
Award vesting rights, percentage100.00%
Other Postretirement Benefits Plan | Executive Management
Share-based Compensation Arrangement by Share-based Payment Award
Deferred compensation arrangement guaranteed award percentage7.50%
Award vesting rights, percentage100.00%
Accrued expense under the plan $ 35
Life insurance plan with a post retirement death benefit250
Life insurance plan aggregate expenses $ 1 $ 1
Other Postretirement Benefits Plan | Executive Management | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Deferred compensation arrangement guaranteed award percentage15.00%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period10 years
Award expiration period3 years
Options, outstanding (in shares) | shares500,000
Number of shares available for grant (in shares) | shares73,150
Compensation cost not yet recognized $ 1,700
Compensation cost recognition weighted average period2 years 3 months 18 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Compensation cost recognition weighted average period2 years 10 months 24 days
Nonvested awards, compensation not yet recognized, awards other than options $ 1,600
2019 Equity Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares available for grant (in shares) | shares145,350

Employee Benefit Plans - Stock

Employee Benefit Plans - Stock Transactions - Stock Option Plans (Details) - USD ($)3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Shares
Options Outstanding, beginning shares (in shares)672,800
Options granted (in shares)89,000 101,000
Options exercised (in shares)(12,467)(5,500)
Options Outstanding, ending shares (in shares)749,333 672,800
Shares Exercisable471,179
Weighted average exercise price
Weighted Average exercise Price: Options Outstanding, beginning (in usd per share) $ 16.42
Weighted Average Exercise Price: Options granted (in usd per share)19.21 $ 20.39
Weighted Average Exercise Price: Options exercised (in usd per share)6.43
Weighted Average exercise Price: Options Outstanding, ending (in usd per share)16.91 $ 16.42
Weighted average exercise price, Options Exercisable (in dollars per share) $ 15.18
Weighted Average Remaining Contractual Life (in years): Options Outstanding7 years 1 month 6 days6 years 9 months 18 days
Weighted Average Remaining Contractual Life (in years): Options Exercisable5 years 10 months 24 days
Aggregate Intrinsic Value: Options Outstanding $ 3,858,402 $ 1,952,568
Aggregate Intrinsic Value: Options Exercisable $ 3,228,220

Employee Benefit Plans - Fair V

Employee Benefit Plans - Fair Value Assumptions (Details) - $ / shares3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Options granted (in shares)89,000 101,000
Weighted Average Exercise Price: Options granted (in usd per share) $ 19.21 $ 20.39
Weighted average fair value of options (in usd per share) $ 7.72 $ 5.54
Expected life in years8 years 4 months 17 days8 years 7 months 28 days
Expected volatility43.69%27.13%
Risk-free interest rate1.14%1.55%
Dividend yield1.68%1.61%
Restricted Stock | 2019 Equity Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award
Options granted (in shares)281,500

Employee Benefit Plans - Schedu

Employee Benefit Plans - Schedule of Information About Options Exercised (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Employee Benefit Plans
Number of options exercised (in shares)12,467 5,500
Total intrinsic value of options exercised $ 170,023 $ 86,241
Proceeds from exercise of stock options80,113 34,265
Tax deduction realized from options exercised $ 51,151 $ 25,264

Employee Benefit Plans - Stoc_2

Employee Benefit Plans - Stock Transactions - Stock Options Outstanding And Exercisable (Details)3 Months Ended
Mar. 31, 2021$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Options outstanding (in shares) | shares749,333
Options outstanding, Weighted average remaining contractual life (in years)7 years 1 month 6 days
Options outstanding, Weighted average exercise price (in dollars per share) $ 16.91
Options exercisable (in shares) | shares367,869
Options exercisable, Weighted average exercise price (in dollars per share) $ 15.18
$0.00 - $6.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of exercise prices, lower0
Range of exercise prices, upper $ 6
Options outstanding (in shares) | shares33,000
Options outstanding, Weighted average remaining contractual life (in years)1 year 4 months 24 days
Options outstanding, Weighted average exercise price (in dollars per share) $ 5.59
Options exercisable (in shares) | shares33,000
Options exercisable, Weighted average exercise price (in dollars per share) $ 5.59
$6.01 - $12.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of exercise prices, lower6.01
Range of exercise prices, upper $ 12
Options outstanding (in shares) | shares146,800
Options outstanding, Weighted average remaining contractual life (in years)4 years 2 months 12 days
Options outstanding, Weighted average exercise price (in dollars per share) $ 8.95
Options exercisable (in shares) | shares146,800
Options exercisable, Weighted average exercise price (in dollars per share) $ 8.95
$12.01 - $18.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of exercise prices, lower12.01
Range of exercise prices, upper $ 18
Options outstanding (in shares) | shares132,533
Options outstanding, Weighted average remaining contractual life (in years)7 years 9 months 18 days
Options outstanding, Weighted average exercise price (in dollars per share) $ 16.37
Options exercisable (in shares) | shares69,201
Options exercisable, Weighted average exercise price (in dollars per share) $ 15.72
$18.01 - $24.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
Range of exercise prices, lower18.01
Range of exercise prices, upper $ 24
Options outstanding (in shares) | shares437,000
Options outstanding, Weighted average remaining contractual life (in years)8 years 3 months 18 days
Options outstanding, Weighted average exercise price (in dollars per share) $ 20.61
Options exercisable (in shares) | shares222,178
Options exercisable, Weighted average exercise price (in dollars per share) $ 20.56

Employee Benefit Plans - Compen

Employee Benefit Plans - Compensation Expense Related To Stock Options (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Compensation expense $ 207,602 $ 192,489
Income tax benefit59,997 55,629
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Compensation expense166,349 172,904
Income tax benefit $ 48,075 $ 49,969

Employee Benefit Plans - Restri

Employee Benefit Plans - Restricted Stock Activity (Details) - Restricted Stock - $ / shares3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Shares
Nonvested restricted stock, beginning balance (in shares)87,972
Granted (in shares)30,000 15,000
Vested (in shares)(26,633)
Nonvested restricted stock, ending balance (in shares)91,339
Average grant date fair value
Nonvested restricted stock, beginning balance (in dollars per share) $ 19.26
Granted (in dollars per share)19.46 $ 16.63
Vested (in dollars per share)18.76
Nonvested restricted stock, ending balance (in dollars per share) $ 19.47

Employee Benefit Plans - Stoc_3

Employee Benefit Plans - Stock Transactions - Restricted Stock Awards (Details) - Restricted Stock - $ / shares3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares granted (in shares)30,000 15,000
Average grant date fair value (in usd per share) $ 19.46 $ 16.63

Employee Benefit Plans - SERP N

Employee Benefit Plans - SERP Narrative (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)installmentDec. 31, 2020USD ($)Mar. 31, 2020USD ($)Dec. 31, 2019USD ($)
Defined Benefit Plan Disclosure
Benefit obligation $ 3,845 $ 3,845 $ 3,639 $ 3,571
President and CEO | SERP
Defined Benefit Plan Disclosure
Percent of average executive base salary60.00%
Payment term after separation36 months
Percent of average executive base salary, adjustment thereafter2.00%
Number of annual payments after separation | installment15
Total estimated future payments $ 6,200
Assumptions used calculating benefit obligation, discount rate4.00%
Annual vesting percentage3.00%
Award vesting rights, percentage100.00%

Employee Benefit Plans - Summar

Employee Benefit Plans - Summary of Components of Net Periodic Pension Cost of Defined Benefit Plan Recognized (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2021
Employee Benefit Plans
Reduction in service cost $ (34) $ (137)
Service cost $ 31
Interest cost34 37
Amortization of prior service cost21 21
Net periodic benefit cost $ 21 $ 89

Employee Benefit Plans - Summ_2

Employee Benefit Plans - Summary of Changes in Benefit Obligations of Defined Benefit Plan Recognized (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2021
Employee Benefit Plans
Benefit obligation, beginning of year $ 3,845 $ 3,571 $ 3,845
Reduction in service cost(34) $ (137)
Service cost31
Interest cost34 37
Benefit obligation, end of year $ 3,845 $ 3,639

Employee Benefit Plans - Execut

Employee Benefit Plans - Executive Incentive Retirement Plan (Details) - Executive Management $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)
Deferred Compensation Arrangement with Individual, Postretirement Benefits
Deferred compensation arrangement, option to elect to defer fees and bonuses, percentage100.00%
Other Postretirement Benefits Plan
Deferred Compensation Arrangement with Individual, Postretirement Benefits
Deferred compensation arrangement, option to elect to defer fees and bonuses, percentage7.50%
Accrued employee benefits $ 35

Regulatory Capital (Details)

Regulatory Capital (Details)Mar. 31, 2021
Compliance with Regulatory Capital Requirements under Banking Regulations
Leverage ratio10.19%
Leverage ratio, Required for capital adequacy purposes effective10.09%
Bank
Compliance with Regulatory Capital Requirements under Banking Regulations
Leverage ratio9.85%
Leverage ratio, To be well-capitalized under prompt corrective action regulations9.80%

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle
Operating lease right-of-use assets $ 2,247 $ 2,365
Present value of lease liabilities $ 2,302 $ 2,400
Minimum
New Accounting Pronouncements or Change in Accounting Principle
Operating lease, remaining contract term1 year
Operating Lease renewal term1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle
Operating lease, remaining contract term10 years
Operating Lease renewal term5 years

Leases - Cost (Details)

Leases - Cost (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Leases
Operating lease cost $ 149 $ 148
Lease, Cost, Total149 148
Operating cash flows from operating leases $ 145 $ 141
Weighted average remaining lease term in years5 years 9 months 21 days5 years 11 months 15 days
Weighted average discount rate5.47%5.45%
Operating lease right-of-use assets $ 2,247 $ 2,365

Leases - Maturity (Details)

Leases - Maturity (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Leases
2021 (excluding the three months ended March 31, 2021) $ 411
2022477
2023410
2024361
2025371
2026 and thereafter664
Total lease payments2,694
Less: Interest(392)
Lease liabilities $ 2,302 $ 2,400