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Loans (Tables)

6 Months Ended

Jun. 30, 2022

Loans [Abstract]

Schedule of Loans

	At			At
	June 30,			December 31,
	2022			2021
(In thousands)	Amount			Amount
Commercial real estate	$	422,162		$	432,275
Commercial (1)		796,345			726,241
Residential real estate		9,902			812
Construction and land development		67,525			42,800
Consumer		720			1,519
Mortgage warehouse		239,791			253,764
		1,536,445			1,457,411
Allowance for loan losses		(18,972)			(19,496)
Deferred loan fees, net		(3,228)			(4,112)
Net loans	$	1,514,245		$	1,433,803

(1)Includes $138.6 million and $120.5 million in loans to digital asset companies at June 30, 2022 and December 31, 2021, respectively.

Schedule of Allowance for Loans and Gross Impaired Loans by Portfolio Segment

	For the three months ended June 30,
(In thousands)	Commercial Real Estate			Commercial			Residential ‎Real ‎Estate			Construction and Land Development			Consumer			Mortgage Warehouse			Total
Allowance for loan losses:
Balance at March 31, 2022	$	4,992		$	13,267		$	14		$	565		$	123		$	335		$	19,296
Charge-offs		—			(1,338)			—			—			(7)			—			(1,345)
Recoveries		—			5			—			—			11			—			16
Provision (credit)		(102)			1,067			—			173			(38)			(95)			1,005
Balance at June 30, 2022	$	4,890		$	13,001		$	14		$	738		$	89		$	240		$	18,972
Balance at March 31, 2021	$	6,102		$	11,512		$	155		$	452		$	445		$	366		$	19,032
Charge-offs		—			(1,366)			—			—			(35)			—			(1,401)
Recoveries		—			97			2			—			13			—			112
Provision (credit)		(349)			2,153			(16)			(7)			(87)			(25)			1,669
Balance at June 30, 2021	$	5,753		$	12,396		$	141		$	445		$	336		$	341		$	19,412

	For the six months ended June 30,
(In thousands)	Commercial Real Estate			Commercial			Residential ‎Real ‎Estate			Construction and Land Development			Consumer			Mortgage Warehouse			Total
Allowance for loan losses:
Balance at December 31, 2021	$	4,935		$	13,495		$	38		$	479		$	168		$	381		$	19,496
Charge-offs		—			(1,689)			—			—			(35)			—			(1,724)
Recoveries		—			93			—			—			19			—			112
Provision (credit)		(45)			1,102			(24)			259			(63)			(141)			1,088
Balance at June 30, 2022	$	4,890		$	13,001		$	14		$	738		$	89		$	240		$	18,972
Balance at December 31, 2020	$	6,095		$	10,543		$	184		$	447		$	586		$	663		$	18,518
Charge-offs		(150)			(1,409)			—			—			(191)			—			(1,750)
Recoveries		81			97			2			—			42			—			222
Provision (credit)		(273)			3,165			(45)			(2)			(101)			(322)			2,422
Balance at June 30, 2021	$	5,753		$	12,396		$	141		$	445		$	336		$	341		$	19,412

Schedule of Allowance for Loan Losses and Related Loan Balances by Portfolio Segment

(In thousands)	Commercial Real Estate			Commercial			Residential Real Estate			Construction and Land Development			Consumer			Mortgage Warehouse			Total
June 30, 2022
Allowance for loan losses:
Ending balance:
Individually evaluated
for impairment	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Ending balance:
Collectively evaluated
for impairment		4,890			13,001			14			738			89			240			18,972
Total allowance for loan
losses ending balance	$	4,890		$	13,001		$	14		$	738		$	89		$	240		$	18,972
Loans (1):
Ending balance:
Individually evaluated
for impairment	$	20,171		$	423		$	157		$	—		$	—		$	—		$	20,751
Ending balance:
Collectively evaluated
for impairment		401,991			795,922			9,745			67,525			720			239,791			1,515,694
Total loans ending balance	$	422,162		$	796,345		$	9,902		$	67,525		$	720		$	239,791		$	1,536,445

(1)Balances represent gross loans. The difference between gross loans versus recorded investment, which would consist of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs, is not material.

(In thousands)	Commercial Real Estate			Commercial			Residential Real Estate			Construction and Land Development			Consumer			Mortgage Warehouse			Total
December 31, 2021
Allowance for loan losses:
Ending balance:
Individually evaluated
for impairment	$	—		$	1,616		$	—		$	—		$	—		$	—		$	1,616
Ending balance:
Collectively evaluated
for impairment		4,935			11,879			38			479			168			381			17,880
Total allowance for loan
losses ending balance	$	4,935		$	13,495		$	38		$	479		$	168		$	381		$	19,496
Loans (1):
Ending balance:
Individually evaluated
for impairment	$	20,188		$	3,929		$	—		$	—		$	—		$	—		$	24,117
Ending balance:
Collectively evaluated
for impairment		412,087			722,312			812			42,800			1,519			253,764			1,433,294
Total loans ending balance	$	432,275		$	726,241		$	812		$	42,800		$	1,519		$	253,764		$	1,457,411

(1)Balances represent gross loans. The difference between gross loans versus recorded investment, which would consist of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs, is not material.

Schedule of Non-Accrual Loans and Loan Delinquencies by Portfolio Segment

																			90 Days
							90 Days			Total									or More
	30 - 59			60 - 89			or More			Past			Total			Total			Past Due			Non-accrual
(In thousands)	Days			Days			Past Due			Due			Current			Loans			and Accruing			Loans
June 30, 2022
Commercial real estate	$	122		$	59		$	—		$	181		$	421,981		$	422,162		$	—		$	—
Commercial		—			94			263			357			795,988			796,345			—			301
Residential real estate		—			—			144			144			9,758			9,902			—			303
Construction and
land development		—			—			—			—			67,525			67,525			—			—
Consumer		15			10			3			28			692			720			—			4
Mortgage warehouse		—			—			—			—			239,791			239,791			—			—
Total	$	137		$	163		$	410		$	710		$	1,535,735		$	1,536,445		$	—		$	608
December 31, 2021
Commercial real estate	$	—		$	—		$	—		$	—		$	432,275		$	432,275		$	—		$	—
Commercial		13			111			1,860			1,984			724,257			726,241			—			2,080
Residential real estate		—			—			555			555			257			812			—			812
Construction and
land development		—			—			—			—			42,800			42,800			—			—
Consumer		15			11			—			26			1,493			1,519			—			—
Mortgage warehouse		—			—			—			—			253,764			253,764			—			—
Total	$	28		$	122		$	2,415		$	2,565		$	1,454,846		$	1,457,411		$	—		$	2,892

Schedule of Impaired Loans

	June 30, 2022									December 31, 2021
				Unpaid									Unpaid
	Recorded			Principal			Related			Recorded			Principal			Related
(In thousands)	Investment			Balance			Allowance			Investment			Balance			Allowance
With no related allowance recorded:
Commercial real estate	$	20,171		$	20,217		$	—		$	20,188		$	20,339		$	—
Commercial		423			2,278			—			2,015			2,205			—
Residential real estate		157			157			—			—			—			—
Construction and land development		—			—			—			—			—			—
Consumer		—			—			—			—			—			—
Mortgage warehouse		—			—			—			—			—			—
Total impaired with no related allowance		20,751			22,652			—			22,203			22,544			—
With an allowance recorded:
Commercial real estate		—			—			—			—			—			—
Commercial		—			—			—			1,914			3,086			1,616
Residential real estate		—			—			—			—			—			—
Construction and land development		—			—			—			—			—			—
Consumer		—			—			—			—			—			—
Mortgage warehouse		—			—			—			—			—			—
Total impaired with an allowance recorded		—			—			—			1,914			3,086			1,616
Total
Commercial real estate		20,171			20,217			—			20,188			20,339			—
Commercial		423			2,278			—			3,929			5,291			1,616
Residential real estate		157			157			—			—			—			—
Construction and land development		—			—			—			—			—			—
Consumer		—			—			—			—			—			—
Mortgage warehouse		—			—			—			—			—			—
Total impaired loans	$	20,751		$	22,652		$	—		$	24,117		$	25,630		$	1,616

	Three Months Ended June 30,
	2022						2021
	Average			Interest			Average			Interest
	Recorded			Income			Recorded			Income
(In thousands)	Investment			Recognized			Investment			Recognized
With no related allowance recorded:
Commercial real estate	$	20,187		$	164		$	20,984		$	161
Commercial		581			3			2,090			47
Residential real estate		157			2			161			3
Construction and land development		—			—			—			—
Consumer		—			—			—			—
Mortgage warehouse		—			—			—			—
Total impaired with no related allowance		20,925			169			23,235			211
With an allowance recorded:
Commercial real estate		—			—			—			—
Commercial		—			—			3,342			1
Residential real estate		—			—			—			—
Construction and land development		—			—			—			—
Consumer		—			—			—			—
Mortgage warehouse		—			—			—			—
Total impaired with an allowance recorded		—			—			3,342			1
Total
Commercial real estate		20,187			164			20,984			161
Commercial		581			3			5,432			48
Residential real estate		157			2			161			3
Construction and land development		—			—			—			—
Consumer		—			—			—			—
Mortgage warehouse		—			—			—			—
Total impaired loans	$	20,925		$	169		$	26,577		$	212

	Six Months Ended June 30,
	2022						2021
	Average			Interest			Average			Interest
	Recorded			Income			Recorded			Income
(In thousands)	Investment			Recognized			Investment			Recognized
With no related allowance recorded:
Commercial real estate	$	20,187		$	319		$	21,040		$	344
Commercial		769			4			2,128			50
Residential real estate		157			3			161			5
Construction and land development		—			—			—			—
Consumer		—			—			—			—
Mortgage warehouse		—			—			—			—
Total impaired with no related allowance		21,113			326			23,329			399
With an allowance recorded:
Commercial real estate		—			—			—			—
Commercial		—			—			3,349			3
Residential real estate		—			—			—			—
Construction and land development		—			—			—			—
Consumer		—			—			—			—
Mortgage warehouse		—			—			—			—
Total impaired with an allowance recorded		—			—			3,349			3
Total
Commercial real estate		20,187			319			21,040			344
Commercial		769			4			5,477			53
Residential real estate		157			3			161			5
Construction and land development		—			—			—			—
Consumer		—			—			—			—
Mortgage warehouse		—			—			—			—
Total impaired loans	$	21,113		$	326		$	26,678		$	402

Schedule of Troubled Debt Restructurings

	Six Months Ended June 30,
	2022								2021
(Dollars in thousands)	Number of Contracts		Pre- ‎Modification ‎Outstanding ‎Recorded ‎Investment			Post-Modification ‎Outstanding ‎Recorded ‎Investment			Number of Contracts		Pre- ‎Modification ‎Outstanding ‎Recorded ‎Investment			Post-Modification ‎Outstanding ‎Recorded ‎Investment
Troubled debt restructurings:
Commercial	—		$	—		$	—		3		$	1,868		$	1,868
	—		$	—		$	—		3		$	1,868		$	1,868

Schedule of Loans by Risk Rating and Portfolio Segment

(In thousands)	Commercial Real Estate			Commercial			Residential Real Estate				Construction ‎and Land ‎Development		Consumer			Mortgage Warehouse			Total
June 30, 2022
Grade:
Pass	$	374,227		$	750,660		$	—		$	66,487		$	—		$	239,791		$	1,431,165
Special mention		28,125			39,220			—			—			—			—			67,345
Substandard		19,810			6,202			303			1,038			—			—			27,353
Doubtful		—			263			—			—			—			—			263
Not formally rated		—			—			9,599			—			720			—			10,319
Total	$	422,162		$	796,345		$	9,902		$	67,525		$	720		$	239,791		$	1,536,445
December 31, 2021
Grade:
Pass	$	383,460		$	676,081		$	—		$	41,762		$	—		$	253,764		$	1,355,067
Special mention		29,004			41,921			—			—			—			—			70,925
Substandard		19,811			7,677			812			1,038			—			—			29,338
Doubtful		—			562			—			—			—			—			562
Not formally rated		—			—			—			—			1,519			—			1,519
Total	$	432,275		$	726,241		$	812		$	42,800		$	1,519		$	253,764		$	1,457,411

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