0001104659-22-091317 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Aug. 10, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Entity File Number	001-38290
Entity Registrant Name	Sterling Bancorp, Inc.
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-3163775
Entity Address, Address Line One	One Towne Square
Entity Address, Address Line Two	Suite 1900
Entity Address, City or Town	Southfield
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48076
City Area Code	248
Local Phone Number	355-2400
Title of 12(b) Security	Common stock
Trading Symbol	SBT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		50,816,407
Entity Central Index Key	0001680379
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 285,165	$ 411,676
Interest-bearing time deposits with other banks	1,183	1,183
Investment securities	382,309	313,879
Loans held for sale	8,964	64,987
Loans, net of allowance for loan losses of $51,766 and $56,548	1,726,366	1,956,266
Accrued interest receivable	6,721	7,696
Mortgage servicing rights, net	2,453	2,722
Leasehold improvements and equipment, net	6,848	7,421
Operating lease right-of-use assets	16,332	18,184
Federal Home Loan Bank stock, at cost	20,288	22,950
Cash surrender value of bank-owned life insurance	8,396	33,033
Deferred tax asset, net	22,028	21,426
Other assets	16,767	15,407
Total assets	2,503,820	2,876,830
Liabilities
Noninterest-bearing deposits	82,387	63,760
Interest-bearing deposits	1,921,860	2,197,975
Total deposits	2,004,247	2,261,735
Federal Home Loan Bank borrowings	50,000	150,000
Subordinated notes, net	65,308	65,343
Operating lease liabilities	17,540	19,400
Accrued expenses and other liabilities	31,393	36,725
Total liabilities	2,168,488	2,533,203
Shareholders' Equity.
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding
Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 50,818,212 shares at June 30, 2022 and 50,460,932 shares at December 31, 2021	83,295	82,157
Additional paid-in capital	14,313	14,124
Retained earnings	251,306	248,243
Accumulated other comprehensive loss	(13,582)	(897)
Total shareholders' equity	335,332	343,627
Total liabilities and shareholders' equity	$ 2,503,820	$ 2,876,830

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Condensed Consolidated Balance Sheets
Allowance for loan losses	$ 51,766	$ 56,548
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	50,818,212	50,460,932
Common stock, outstanding (in shares)	50,818,212	50,460,932

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest income
Interest and fees on loans	$ 20,746	$ 30,074	$ 44,614	$ 61,368
Interest and dividends on investment securities and restricted stock	1,353	385	2,188	775
Other interest	791	227	1,006	490
Total interest income	22,890	30,686	47,808	62,633
Interest expense
Interest on deposits	2,016	5,236	4,346	11,938
Interest on Federal Home Loan Bank borrowings	314	847	666	1,685
Interest on subordinated notes	1,090	1,005	2,054	2,185
Total interest expense	3,420	7,088	7,066	15,808
Net interest income	19,470	23,598	40,742	46,825
Provision (recovery) for loan losses	(1,109)	(1,806)	(5,398)	(2,543)
Net interest income after provision (recovery) for loan losses	20,579	25,404	46,140	49,368
Non-interest income
Service charges and fees	$ 105	$ 144	$ 227	$ 303
Revenue, Product and Service [Extensible List]	sbt:ServiceChargesAndFeesMember	sbt:ServiceChargesAndFeesMember	sbt:ServiceChargesAndFeesMember	sbt:ServiceChargesAndFeesMember
Gain on sale of mortgage loans held for sale	$ 3	$ 70	$ 200	$ 468
Unrealized gains (losses) on equity securities	(170)	15	(406)	(75)
Net servicing income (loss)	(177)	(908)	266	(1,338)
Income on cash surrender value of bank-owned life insurance	255	322	583	635
Other	29	88	586	191
Total non-interest income	45	(269)	1,456	184
Non-interest expense
Salaries and employee benefits	5,569	8,678	15,186	16,526
Occupancy and equipment	2,187	2,249	4,329	4,445
Professional fees	7,066	5,721	12,223	14,476
FDIC assessments	346	500	715	1,219
Data processing	762	440	1,567	786
Net recovery of mortgage repurchase liability	(312)	(512)	(525)	(665)
Other	3,876	2,868	5,422	4,491
Total non-interest expense	19,494	19,944	38,917	41,278
Income before income taxes	1,130	5,191	8,679	8,274
Income tax expense	3,327	1,739	5,616	2,497
Net income (loss)	$ (2,197)	$ 3,452	$ 3,063	$ 5,777
Income (loss) per share, basic	$ (0.04)	$ 0.07	$ 0.06	$ 0.12
Income (loss) per share, diluted	$ (0.04)	$ 0.07	$ 0.06	$ 0.12
Weighted average common shares outstanding:
Basic	50,386,856	50,009,053	50,289,612	49,930,563
Diluted	50,386,856	50,060,775	50,496,487	49,987,253

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (2,197)	$ 3,452	$ 3,063	$ 5,777
Other comprehensive income (loss), net of tax:
Unrealized (losses) gains on investment securities, arising during the period, net of tax effect of $(1,950), $51, $(4,883) $28, respectively	(5,142)	131	(12,685)	72
Comprehensive income (loss)	$ (7,339)	$ 3,583	$ (9,622)	$ 5,849

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income (Loss)
Unrealized gains (losses) on investment securities, arising during the period, tax effect	$ (1,950)	$ 51	$ (4,883)	$ 28

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at beginning of the period at Dec. 31, 2020	$ 80,807	$ 13,544	$ 224,853	$ 387	$ 319,591
Balance at beginning of the period (in shares) at Dec. 31, 2020	49,981,861
Increase (Decrease) in Stockholders' Equity
Net income (loss)			2,325		2,325
Repurchase of restricted shares to pay employee tax liability		(46)			(46)
Repurchase of restricted shares to pay employee tax liability (in shares)	(8,536)
Stock-based compensation		105			105
Stock-based compensation (in shares)	36,082
Other comprehensive income (loss)				(59)	(59)
Balance at end of the period at Mar. 31, 2021	$ 80,807	13,603	227,178	328	321,916
Balance at end of the period (in shares) at Mar. 31, 2021	50,009,407
Balance at beginning of the period at Dec. 31, 2020	$ 80,807	13,544	224,853	387	319,591
Balance at beginning of the period (in shares) at Dec. 31, 2020	49,981,861
Increase (Decrease) in Stockholders' Equity
Net income (loss)					5,777
Balance at end of the period at Jun. 30, 2021	$ 82,157	13,796	230,630	459	327,042
Balance at end of the period (in shares) at Jun. 30, 2021	50,475,181
Balance at beginning of the period at Mar. 31, 2021	$ 80,807	13,603	227,178	328	321,916
Balance at beginning of the period (in shares) at Mar. 31, 2021	50,009,407
Increase (Decrease) in Stockholders' Equity
Net income (loss)			3,452		3,452
Issuance of shares of common stock for cash ($4.50 per share) (Note 9)	$ 1,350				1,350
Issuance of shares of common stock for cash ($4.50 per share) (Note 9)	300,000
Stock-based compensation		193			193
Stock-based compensation (in shares)	165,774
Other comprehensive income (loss)				131	131
Balance at end of the period at Jun. 30, 2021	$ 82,157	13,796	230,630	459	327,042
Balance at end of the period (in shares) at Jun. 30, 2021	50,475,181
Balance at beginning of the period at Dec. 31, 2021	$ 82,157	14,124	248,243	(897)	343,627
Balance at beginning of the period (in shares) at Dec. 31, 2021	50,460,932
Increase (Decrease) in Stockholders' Equity
Net income (loss)			5,260		5,260
Repurchase of restricted shares to pay employee tax liability		(84)			(84)
Repurchase of restricted shares to pay employee tax liability (in shares)	(13,383)
Stock-based compensation		146			146
Stock-based compensation (in shares)	49,284
Other comprehensive income (loss)				(7,543)	(7,543)
Balance at end of the period at Mar. 31, 2022	$ 82,157	14,186	253,503	(8,440)	341,406
Balance at end of the period (in shares) at Mar. 31, 2022	50,496,833
Balance at beginning of the period at Dec. 31, 2021	$ 82,157	14,124	248,243	(897)	343,627
Balance at beginning of the period (in shares) at Dec. 31, 2021	50,460,932
Increase (Decrease) in Stockholders' Equity
Net income (loss)					3,063
Balance at end of the period at Jun. 30, 2022	$ 83,295	14,313	251,306	(13,582)	335,332
Balance at end of the period (in shares) at Jun. 30, 2022	50,818,212
Balance at beginning of the period at Mar. 31, 2022	$ 82,157	14,186	253,503	(8,440)	341,406
Balance at beginning of the period (in shares) at Mar. 31, 2022	50,496,833
Increase (Decrease) in Stockholders' Equity
Net income (loss)			(2,197)		(2,197)
Repurchase of restricted shares to pay employee tax liability		(112)			(112)
Repurchases of shares of common stock (Note 10) (in shares)	(16,345)
Issuance of shares of common stock to defined contribution retirement plan (Note 9)	$ 1,138				1,138
Issuance of shares of common stock to defined contribution retirement plan (Note 9) (in shares)	160,978
Stock-based compensation		239			239
Stock-based compensation (in shares)	176,746
Other comprehensive income (loss)				(5,142)	(5,142)
Balance at end of the period at Jun. 30, 2022	$ 83,295	$ 14,313	$ 251,306	$ (13,582)	$ 335,332
Balance at end of the period (in shares) at Jun. 30, 2022	50,818,212

Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical)	Jun. 30, 2021 $ / shares
Condensed Consolidated Statements of Changes in Shareholders' Equity
Issue price per share	$ 4.50

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows From Operating Activities
Net income	$ 3,063	$ 5,777
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (recovery) for loan losses	(5,398)	(2,543)
Deferred income taxes	4,281	549
Unrealized losses on equity securities	406	75
Amortization (accretion), net, on investment securities	(41)	964
Depreciation and amortization on leasehold improvements and equipment	787	813
Net principal payments (originations) of loans held for sale	2,250	(7,599)
Proceeds from sale of mortgage loans held for sale	1,831	14,904
Gain on sale of loans held for sale	(200)	(468)
Net recovery of mortgage repurchase liability	(525)	(665)
Increase in cash surrender value of bank-owned life insurance, net of premiums	(240)	(271)
Valuation allowance adjustments and amortization of mortgage servicing rights	280	2,555
Stock-based compensation	385	298
Other	(35)	492
Change in operating assets and liabilities:
Accrued interest receivable	975	1,330
Other assets	2,735	2,862
Accrued expenses and other liabilities	(4,907)	457
Net cash provided by operating activities	5,647	19,530
Cash Flows From Investing Activities
Maturities of interest-bearing time deposits with other banks		6,216
Maturities and principal receipts of investment securities	21,904	108,045
Purchases of investment securities	(108,267)
Proceeds received from redemption of Federal Home Loan Bank stock	2,662
Net decrease in loans	268,078	316,804
Purchases of portfolio loans	(31,002)	(172,505)
Principal payments received on commercial real estate loans held for sale	2,521
Proceeds from the sale of commercial real estate loans originated for investment	49,610
Proceeds received from settlement of bank-owned life insurance policies	20,234
Purchases of leasehold improvements and equipment	(214)	(1,772)
Net cash provided by investing activities	225,526	256,788
Cash Flows From Financing Activities
Net decrease in deposits	(257,488)	(501,641)
Repayment of FHLB advances	(100,000)
Proceeds from issuance of shares of common stock		1,350
Cash paid for surrender of vested shares to satisfy employee tax liability	(196)	(46)
Net cash used in financing activities	(357,684)	(500,337)
Net change in cash and due from banks	(126,511)	(224,019)
Cash and due from banks at beginning of period	411,676	998,497
Cash and due from banks at end of period	285,165	774,478
Cash paid for:
Interest	7,127	25,432
Income taxes	457
Noncash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities		$ 2,512
Shares of common stock issued in satisfaction of Company's matching contribution in defined contribution retirement plan	$ 1,138

Nature of Operations and Basis of Presentation

6 Months Ended

Jun. 30, 2022

Nature of Operations and Basis of Presentation

Nature of Operations and Basis of Presentation

Note 1—Nature of Operations and Basis of Presentation

Nature of Operations

Sterling Bancorp, Inc. (the “Company”) is a unitary thrift holding company that was incorporated in 1989 and the parent company of its wholly owned subsidiary, Sterling Bank and Trust, F.S.B. (the “Bank”). The Company’s business is conducted through the Bank, which was formed in 1984. The Bank originates residential and commercial real estate loans, construction loans, commercial lines of credit and other consumer loans and provides deposit products, consisting primarily of checking, savings and term certificate accounts. The Bank operates through a network of 28 branches of which 26 branches are located in San Francisco and Los Angeles, California with the remaining branches located in New York, New York and Southfield, Michigan.

The Company is headquartered in Southfield, Michigan, and its operations are in the financial services industry. Management evaluates the performance of the Company’s business based on one reportable segment, community banking.

The Company is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve System (the “FRB” or “Federal Reserve”). The Bank is a federally chartered stock savings bank that is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency (“OCC”) of the U.S. Department of Treasury and the Federal Deposit Insurance Corporation (“FDIC”) and is a member of the Federal Home Loan Bank (“FHLB”) system.

Basis of Presentation

The condensed consolidated balance sheet as of June 30, 2022, and the condensed consolidated statements of operations, comprehensive income (loss), changes in shareholders’ equity and cash flows for the three and six months ended June 30, 2022 and 2021 are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, in the opinion of management, of a normal recurring nature that are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The financial data and other financial information disclosed in these notes to the condensed consolidated financial statements related to these periods are also unaudited. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ended December 31, 2022 or for any future annual or interim period. The condensed consolidated balance sheet at December 31, 2021 included herein was derived from the audited financial statements as of that date. The accompanying unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2022 (the “2021 Form 10-K”).

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2— Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiary.

All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates.

Concentration of Credit Risk

The loan portfolio consists primarily of residential real estate loans, which are collateralized by real estate. At June 30, 2022 and December 31, 2021, residential real estate loans accounted for 85% and 83%, respectively, of total gross loans. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California, which are dependent on the area economy for their livelihoods and servicing of their loan obligation. At June 30, 2022 and December 31, 2021, approximately 84% and 85%, respectively, of gross loans was originated with respect to properties or businesses located in the state of California.

In March 2020, the Bank permanently discontinued its Advantage Loan program. Loans originated under this program comprised a significant component of the Bank’s total loan originations. Advantage Loan Program loans (including residential real estate loans held for sale of $7,313 and $11,359 at June 30, 2022 and December 31, 2021, respectively, of which $3,999 and $8,671 were on nonaccrual status at June 30, 2022 and December 31, 2021, respectively) totaled $992,477 and $1,185,458, or 66% and 69% of gross residential loans, at June 30, 2022 and December 31, 2021, respectively. Refer to Note 16—Commitments and Contingencies.

Recently Issued Accounting Guidance Not Yet Adopted

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for troubled debt restructurings by creditors in ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings involving borrowings that are experiencing financial difficulty. Specifically, rather than applying the troubled debt restructuring recognition and measurement guidance, creditors will evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. Also, losses associated with troubled debt restructurings should be incorporated in a creditor’s estimate of its allowance for credit losses. Public business entities are required to disclose current-period gross write-offs by year of origination for loan financing receivables and net investment in leases. For entities that have not yet adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“2016-13”), ASU 2022-02 is effective when the entity adopts the guidance in ASU 2016-13. The Company is currently evaluating this ASU, along with its adoption of ASU 2016-13, as discussed below.

In June 2016, the FASB issued ASU No. 2016-13, which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances and recoveries, among other things. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief. The amendments provide entities with an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis, upon adoption of Topic 326. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This update deferred the effective dates of Topic 326 to January 1, 2023 for certain entities including smaller reporting companies as defined by the SEC. The Company, as a smaller reporting company as of the relevant measuring period, qualified for this extension.

At this time, a cross-functional implementation team consisting of individuals from accounting, finance, servicing and information systems is working with the Bank’s loan system vendor and consultants, and an application to create credit loss estimation models and processes has been developed. The historical data set for model development has been finalized, and the credit loss estimation models have been developed and tested. Once the credit loss estimation models have been finalized, the Bank will run the new credit loss estimation models in parallel with the current allowance for loan losses model to understand the differences in the models and assess the impact of the change. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the first reporting period in which ASU No. 2016-13 is effective. The Company has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of ASU No. 2016-13 on its condensed consolidated financial statements.

Investment Securities

6 Months Ended

Jun. 30, 2022

Investment Securities

Investment Securities

Note 3—Investment Securities

Debt Securities

The following tables summarize the amortized cost and fair value of debt securities available for sale at June 30, 2022 and December 31, 2021 and the corresponding amounts of gross unrealized gains and losses:


	June 30, 2022
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	186,002	$	40	$	(4,854)	$	181,188
Mortgage-backed securities		44,755		—		(4,172)		40,583
Collateralized mortgage obligations		165,391		273		(10,096)		155,568
Collateralized debt obligations		158		—		(5)		153
Total	$	396,306	$	313	$	(19,127)	$	377,492


	December 31, 2021
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	122,291	$	106	$	(229)	$	122,168
Mortgage-backed securities		49,739		84		(386)		49,437
Collateralized mortgage obligations		137,662		530		(1,343)		136,849
Collateralized debt obligations		211		—		(8)		203
Total	$	309,903	$	720	$	(1,966)	$	308,657

Securities with a fair value of $118,773 were pledged as collateral on FHLB borrowings at June 30, 2022.

All of the Company’s mortgage-backed securities, and a majority of the Company’s collateralized mortgage obligations are issued and/or guaranteed by a U.S. government agency (Government National Mortgage Association) or a U.S. government-sponsored enterprise (Federal Home Loan Mortgage Corporation (“Freddie Mac”) or Federal National Mortgage Association (“Fannie Mae”)). The fair value of the private-label collateralized mortgage obligations was $457 and $529 at June 30, 2022 and December 31, 2021, respectively.

No securities of any single issuer, other than debt securities issued by the U.S. government, government agency and government-sponsored enterprises, were in excess of 10% of total shareholders’ equity as of June 30, 2022 and December 31, 2021.

The amortized cost and fair value of U.S. Treasury and Agency securities at June 30, 2022 are shown by contractual maturity in the table below. Mortgage-backed securities, collateralized mortgage obligations and collateralized debt obligations are disclosed separately, as the expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
	Cost		Value
U.S. Treasury and Agency securities
Due less than one year	$	50,085	$	50,009
Due after one year through five years		135,917		131,179
Mortgage-backed securities		44,755		40,583
Collateralized mortgage obligations		165,391		155,568
Collateralized debt obligations		158		153
Total	$	396,306	$	377,492

The following table summarizes debt securities available for sale, at fair value, with unrealized losses at June 30, 2022 and December 31, 2021 aggregated by major security type and length of time the individual securities have been in a continuous unrealized loss position:


	June 30, 2022
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S Treasury and Agency securities	$	133,148	$	(4,854)	$	—	$	—	$	133,148	$	(4,854)
Mortgage-backed securities		33,502		(2,796)		7,081		(1,376)		40,583		(4,172)
Collateralized mortgage obligations		113,830		(10,096)		—		—		113,830		(10,096)
Collateralized debt obligations		—		—		153		(5)		153		(5)
Total	$	280,480	$	(17,746)	$	7,234	$	(1,381)	$	287,714	$	(19,127)


	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S Treasury and Agency securities	$	49,865	$	(229)	$	—	$	—	$	49,865	$	(229)
Mortgage-backed securities		7,878		(36)		8,729		(350)		16,607		(386)
Collateralized mortgage obligations		86,354		(1,342)		2,413		(1)		88,767		(1,343)
Collateralized debt obligations		—		—		203		(8)		203		(8)
Total	$	144,097	$	(1,607)	$	11,345	$	(359)	$	155,442	$	(1,966)

As of June 30, 2022, the debt securities portfolio consisted of 33 debt securities, with 27 debt securities in an unrealized loss position. For debt securities in an unrealized loss position, management has both the intent and ability to hold these investments until the recovery of the decline. The fair value is expected to increase as these securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2022, the unrealized losses in these securities are due to non-credit-related factors, including changes in interest rates and other market conditions; thus, the impairment was determined to be temporary. All interest and dividends are considered taxable.

Equity Securities

Equity securities consist of an investment in a qualified community reinvestment act investment fund, which is a publicly-traded mutual fund and an investment in the common equity of Pacific Coast Banker’s Bank, a thinly traded restricted stock. At June 30, 2022 and December 31, 2021, equity securities totaled $4,817 and $5,222, respectively, and are included in investment securities in the condensed consolidated balance sheets.

Equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. At June 30, 2022 and December 31, 2021, equity securities with readily determinable fair values were $4,571 and $4,976, respectively. The following is a summary of unrealized and realized gains and losses recognized in the condensed consolidated statements of operations:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net gains (losses) recorded during the period on equity securities	$	(170)	$	15	$	(406)	$	(75)
Less: net gains (losses) recorded during the period on equity securities sold during the period		—		—		—		—
Unrealized gains (losses) recorded during the period on equity securities held at the reporting date	$	(170)	$	15	$	(406)	$	(75)

The Company has elected to account for its investment in a thinly traded restricted stock using the measurement alternative for equity securities without readily determinable fair values, resulting in the investment carried at cost based on no evidence of impairment or observable trading activity during the six months ended June 30, 2022 and 2021. The investment was reported at $246 at June 30, 2022 and December 31, 2021.

Loans

6 Months Ended

Jun. 30, 2022

Loans

Loans

Note 4—Loans

Loans Held for Sale

The major categories of loans held for sale were as follows:


	June 30,		December 31,
	2022		2021
Residential real estate	$	7,313	$	11,359
Commercial real estate		1,651		53,628
Total loans held for sale	$	8,964	$	64,987

At June 30, 2022, loans held for sale includes nonaccrual residential real estate loans of $3,999. At December 31, 2021, loans held for sale includes nonaccrual loans of $18,026, consisting of residential real estate loans of $8,671 and commercial real estate loans of $9,355, of which one commercial real estate loan of $2,059 was considered a troubled debt restructuring.

In February 2022, the Company sold substantially all of its commercial real estate loans held for sale, which loans had a carrying value of $49,455 on the date of sale, to a third party for cash proceeds of $49,610.

Loans Held for Investment and Allowance for Loan Losses

The major categories of loans held for investment and the allowance for loan losses were as follows:


	June 30,		December 31,
	2022		2021
Residential real estate	$	1,506,852	$	1,704,231
Commercial real estate		214,494		201,240
Construction		55,150		106,759
Commercial lines of credit		1,418		363
Other consumer		218		221
Total loans		1,778,132		2,012,814
Less: allowance for loan losses		(51,766)		(56,548)
Loans, net	$	1,726,366	$	1,956,266

Loans totaling $480,276 and $557,410 were pledged as collateral on FHLB borrowings at June 30, 2022 and December 31, 2021, respectively.

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2022 and 2021:


							Commercial
	Residential		Commercial				Lines of		Other
Three Months Ended June 30, 2022	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Beginning balance	$	29,911	$	13,709	$	8,829	$	6	$	—	$	52,455
Provision (recovery) for loan losses		(272)		1,251		(2,123)		30		5		(1,109)
Charge offs		(197)		—		—		—		—		(197)
Recoveries		540		75		2		—		—		617
Total ending balance	$	29,982	$	15,035	$	6,708	$	36	$	5	$	51,766

							Commercial
	Residential		Commercial				Lines of		Other
Six Months Ended June 30, 2022	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Beginning balance	$	32,202	$	12,608	$	11,730	$	8	$	—	$	56,548
Provision (recovery) for loan losses		(2,753)		2,347		(5,025)		28		5		(5,398)
Charge offs		(197)		—		—		—		—		(197)
Recoveries		730		80		3		—		—		813
Total ending balance	$	29,982	$	15,035	$	6,708	$	36	$	5	$	51,766


							Commercial
	Residential		Commercial				Lines of		Other
Three Months Ended June 30, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Beginning balance	$	33,056	$	22,763	$	15,966	$	86	$	—	$	71,871
Provision (recovery) for loan losses		(579)		(287)		(912)		(28)		—		(1,806)
Charge offs		—		—		—		—		—		—
Recoveries		587		15		2		—		—		604
Total ending balance	$	33,064	$	22,491	$	15,056	$	58	$	—	$	70,669


							Commercial
	Residential		Commercial				Lines of		Other
Six Months Ended June 30, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Beginning balance	$	32,366	$	21,942	$	17,988	$	91	$	—	$	72,387
Provision (recovery) for loan losses		(93)		518		(2,935)		(33)		—		(2,543)
Charge offs		—		—		—		—		—		—
Recoveries		791		31		3		—		—		825
Total ending balance	$	33,064	$	22,491	$	15,056	$	58	$	—	$	70,669

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment by impairment methodology as of June 30, 2022 and December 31, 2021:


							Commercial
	Residential		Commercial				Lines of		Other
June 30, 2022	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		29,982		15,035		6,708		36		5		51,766
Total ending allowance balance	$	29,982	$	15,035	$	6,708	$	36	$	5	$	51,766
Loans:
Loans individually evaluated for impairment	$	50	$	—	$	8,265	$	112	$	—	$	8,427
Loans collectively evaluated for impairment		1,506,802		214,494		46,885		1,306		218		1,769,705
Total ending loans balance	$	1,506,852	$	214,494	$	55,150	$	1,418	$	218	$	1,778,132


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	159	$	—	$	—	$	—	$	—	$	159
Collectively evaluated for impairment		32,043		12,608		11,730		8		—		56,389
Total ending allowance balance	$	32,202	$	12,608	$	11,730	$	8	$	—	$	56,548
Loans:
Loans individually evaluated for impairment	$	350	$	4,441	$	14,984	$	116	$	—	$	19,891
Loans collectively evaluated for impairment		1,703,881		196,799		91,775		247		221		1,992,923
Total ending loans balance	$	1,704,231	$	201,240	$	106,759	$	363	$	221	$	2,012,814

The following tables present information related to impaired loans by class of loans as of and for the periods indicated:


	At June 30, 2022						At December 31, 2021
	Unpaid				Allowance		Unpaid				Allowance
	Principal		Recorded		for Loan		Principal		Recorded		for Loan
	Balance		Investment		Losses		Balance		Investment		Losses
With no related allowance for loan losses recorded:
Residential real estate:
First mortgage	$	84	$	50	$	—	$	91	$	65	$	—
Commercial real estate:
Retail		231		—		—		—		—		—
Hotels/Single-room occupancy hotels		—		—		—		4,459		4,441		—
Construction		10,343		8,265		—		15,004		14,984		—
Commercial lines of credit:
Private banking		112		112		—		116		116		—
Subtotal		10,770		8,427		—		19,670		19,606		—
With an allowance for loan losses recorded:
Residential real estate:
First mortgage		—		—		—		273		285		159
Total	$	10,770	$	8,427	$	—	$	19,943	$	19,891	$	159


	Three Months Ended at June 30,
	2022						2021
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate:
First mortgage	$	55	$	1	$	1	$	86	$	—	$	—
Commercial real estate:
Retail		—		—		—		1,013		—		—
Hotels/Single-room occupancy hotels		—		—		—		17,926		—		—
Other		—		—		—		136		—		—
Construction		8,320		39		26		22,801		43		29
Commercial lines of credit:
Private banking		113		1		1		122		2		1
Subtotal		8,488		41		28		42,084		45		30
With an allowance for loan losses recorded:
Residential real estate:
First mortgage		142		—		—		277		1		1
Construction		—		—		—		11,104		55		37
Subtotal		142		—		—		11,381		56		38
Total	$	8,630	$	41	$	28	$	53,465	$	101	$	68


	Six Months Ended at June 30,
	2022						2021
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate:
First mortgage	$	57	$	1	$	1	$	88	$	—	$	—
Commercial real estate:
Retail		—		—		—		1,020		—		—
Hotels/Single-room occupancy hotels		—		—		—		17,914		—		—
Other		—		—		—		136		—		—
Construction		8,340		78		65		30,207		138		124
Commercial lines of credit:
Private banking		114		3		3		1,645		3		3
Subtotal		8,511		82		69		51,010		141		127
With an allowance for loan losses recorded:
Residential real estate:
First mortgage		190		1		1		277		1		1
Construction		—		—		—		10,721		107		89
Subtotal		190		1		1		10,998		108		90
Total	$	8,701	$	83	$	70	$	62,008	$	249	$	217

In the tables above, the unpaid principal balance is not reduced for partial charge offs. Also, the recorded investment excludes accrued interest receivable on loans, which was not significant.

Also presented in the table above is the average recorded investment of the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. 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. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. The average balances are calculated based on the month-end balances of the loans for the period reported.

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual, excluding nonaccrual loans held for sale, by class of loans as of June 30, 2022 and December 31, 2021:


	June 30, 2022				December 31, 2021
			Loans Past				Loans Past
			Due Over				Due Over
			90 Days Still				90 Days Still
	Nonaccrual		Accruing		Nonaccrual		Accruing
Residential real estate:
Residential first mortgage	$	42,357	$	37	$	45,439	$	39
Residential second mortgage		210		—		236		—
Commercial real estate:
Hotels/Single-room occupancy hotels		—		—		4,441		—
Construction		5,781		—		12,499		—
Total	$	48,348	$	37	$	62,615	$	39

The following tables present the aging of the recorded investment in past due loans as of June 30, 2022 and December 31, 2021 by class of loans:


					Greater
	30 - 59		60 - 89		than
	Days		Days		89 Days		Total		Loans Not
June 30, 2022	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	19,167	$	4,864	$	42,394	$	66,425	$	1,428,767	$	1,495,192
Residential second mortgage		—		—		210		210		11,450		11,660
Commercial real estate:
Retail		—		—		—		—		26,098		26,098
Multifamily		—		—		—		—		98,327		98,327
Office		—		—		—		—		20,208		20,208
Hotels/ Single-room occupancy hotels		—		—		—		—		15,526		15,526
Industrial		—		—		—		—		11,463		11,463
Other		—		—		—		—		42,872		42,872
Construction		—		—		5,781		5,781		49,369		55,150
Commercial lines of credit:
Private banking		—		—		—		—		112		112
C&I lending		—		—		—		—		1,306		1,306
Other consumer		—		—		—		—		218		218
Total	$	19,167	$	4,864	$	48,385	$	72,416	$	1,705,716	$	1,778,132


					Greater
	30 - 59		60 - 89		than
	Days		Days		89 Days		Total		Loans Not
December 31, 2021	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	24,044	$	3,425	$	45,478	$	72,947	$	1,617,509	$	1,690,456
Residential second mortgage		107		—		236		343		13,432		13,775
Commercial real estate:
Retail		—		—		—		—		19,574		19,574
Multifamily		—		—		—		—		96,960		96,960
Office		—		—		—		—		12,382		12,382
Hotels/Single-room occupancy hotels		—		—		4,441		4,441		9,780		14,221
Industrial		—		—		—		—		7,320		7,320
Other		—		—		—		—		50,783		50,783
Construction		10,500		—		12,499		22,999		83,760		106,759
Commercial lines of credit:
Private banking		—		—		—		—		116		116
C&I lending		—		—		—		—		247		247
Other consumer		—		—		—		—		221		221
Total	$	34,651	$	3,425	$	62,654	$	100,730	$	1,912,084	$	2,012,814

The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate and other consumer loans, the Company also evaluates credit quality based on the aging status of the loan, which is presented above, and by payment activity. The Company reviews the status of nonperforming loans, which include loans 90 days past due and still accruing, and nonaccrual loans.

Troubled Debt Restructurings

As of June 30, 2022 and December 31, 2021, the Company has a recorded investment in troubled debt restructurings (“TDR”) of $8,427 and $18,416, respectively. The Company has not allocated a specific allowance for loan losses for these loans at of June 30, 2022 and has $39 of specific allowance for loan loss for these loans at of December 31, 2021. There are no commitments to lend additional amounts.

There were no loans modified as TDRs during the three or six months ended June 30, 2022 or 2021.

There were no TDRs for which there was a payment default within twelve months following the modification during the three or six months ended June 30, 2022 or 2021. At June 30, 2022, there was one loan totaling $5,781 in default. At December 31, 2021, five loans totaling $15,752 were in default.

The terms of certain other loans have been modified during the three and six months ended June 30, 2022 that did not meet the definition of a TDR. These other loans that were modified were not considered significant.

Foreclosure Proceedings

At June 30, 2022 and December 31, 2021, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $11,315 and $2,780, respectively. Of the loans in formal foreclosure proceedings, $2,755 and $2,770 were included in loans held for sale in the condensed consolidated balance sheets at June 30, 2022 and December 31, 2021, respectively, and were carried at the lower of amortized cost or fair value. The balance of loans are classified as held for investment and receive an allocation of the allowance for loan losses consistent with a substandard loan loss allocation rate as these loans were classified as substandard at June 30, 2022 and December 31, 2021, respectively.

Credit Quality

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans, such as residential real estate and other consumer loans, and non-homogeneous loans, such as commercial lines of credit, construction and commercial real estate loans. This analysis is performed at least quarterly. The Company uses the following definitions for risk ratings:

Pass: Loans are of satisfactory quality.

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable.

At June 30, 2022 and December 31, 2021, the risk rating of loans by class of loans was as follows:


			Special
June 30, 2022	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,452,798	$	—	$	42,394	$	—	$	1,495,192
Residential second mortgage		11,450		—		210		—		11,660
Commercial real estate:
Retail		26,098		—		—		—		26,098
Multifamily		70,568		17,699		10,060		—		98,327
Office		18,298		1,910		—		—		20,208
Hotels/ Single-room occupancy hotels		8,105		5,864		1,557		—		15,526
Industrial		9,998		1,465		—		—		11,463
Other		36,112		6,760		—		—		42,872
Construction		37,973		—		17,177		—		55,150
Commercial lines of credit:
Private banking		112		—		—		—		112
C&I lending		1,306		—		—		—		1,306
Other consumer		218		—		—		—		218
Total	$	1,673,036	$	33,698	$	71,398	$	—	$	1,778,132


			Special
December 31, 2021	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,644,974	$	—	$	45,249	$	233	$	1,690,456
Residential second mortgage		13,539		—		236		—		13,775
Commercial real estate:
Retail		18,846		728		—		—		19,574
Multifamily		75,543		8,104		13,313		—		96,960
Office		10,413		—		1,969		—		12,382
Hotels/ Single-room occupancy hotels		8,205		—		6,016		—		14,221
Industrial		7,320		—		—		—		7,320
Other		48,996		1,692		95		—		50,783
Construction		67,254		17,226		16,348		5,931		106,759
Commercial lines of credit:
Private banking		116		—		—		—		116
C&I lending		236		11		—		—		247
Other consumer		221		—		—		—		221
Total	$	1,895,663	$	27,761	$	83,226	$	6,164	$	2,012,814

During the three months ended June 30, 2022, the Bank repurchased a pool of Advantage Loan Program loans with a total outstanding principal balance of $30,380. During the three and six months ended June 30, 2021, the Bank repurchased pools of Advantage Loan Program loans with a total outstanding principal balance of $79,818 and $167,762, respectively. The Advantage Loan Program loans that have been repurchased and included in the loan portfolio have an outstanding principal balance of $169,965 and $171,185 at June 30, 2022 and December 31, 2021, respectively. For more information on the repurchases of Advantage Loan Program loans, refer to Note 16—Commitments and Contingencies.

Mortgage Servicing Rights, net

6 Months Ended

Jun. 30, 2022

Mortgage Servicing Rights, net

Mortgage Servicing Rights, net

Note 5—Mortgage Servicing Rights, net

The Bank records servicing assets from the sale of residential real estate mortgage loans to the secondary market for which servicing has been retained. Residential real estate mortgage loans serviced for others are not included in the condensed consolidated balance sheets. The principal balance of these loans at June 30, 2022 and December 31, 2021 are as follows:


	June 30,		December 31,
	2022		2021
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	117,421	$	124,764
FHLB		36,815		40,209
Private investors		89,648		142,810
Total	$	243,884	$	307,783

Custodial escrow balances maintained with these serviced loans were $693 and $5,501 at June 30, 2022 and December 31, 2021, respectively. These balances are included in noninterest-bearing deposits in the condensed consolidated balance sheets.

Activity for mortgage servicing rights and the related valuation allowance are as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Mortgage servicing rights:
Beginning of period	$	3,088	$	5,855	$	3,332	$	7,853
Additions		2		25		11		99
Amortization		(548)		(1,680)		(801)		(3,752)
End of period		2,542		4,200		2,542		4,200

Valuation allowance at beginning of period		200		1,229		610		2,165
Additions (recoveries)		(111)		(261)		(521)		(1,197)
Valuation allowance at end of period		89		968		89		968

Mortgage servicing rights, net	$	2,453	$	3,232	$	2,453	$	3,232

Servicing fee income (loss), net of amortization of servicing rights and changes in the valuation allowance, was $(177) and $(908) for the three months ended June 30, 2022 and 2021, respectively, and $266 and $(1,338) for the six months ended June 30, 2022 and 2021, respectively.

The fair value of mortgage servicing rights was $2,899 and $2,916 at June 30, 2022 and December 31, 2021, respectively. The fair value of mortgage servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the estimate of the fair value of mortgage servicing rights. The fair value at June 30, 2022 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds with a weighted average of 11.9% (depending on the stratification of the specific right), a weighted average life of the mortgage servicing right of 73 months and a weighted average default rate of 0.2%. The fair value at December 31, 2021 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds with a weighted average of 17.6% (depending on the stratification of the specific right), a weighted average life of the mortgage servicing right of 52 months and a weighted average default rate of 0.2%.

Impairment is determined by stratifying the mortgage servicing rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. At June 30, 2022 and December 31, 2021, the carrying amount of certain individual groupings exceeded their fair values, resulting in write-downs to fair value. Refer to Note 14—Fair Values of Financial Instruments.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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+ Details

Deposits

6 Months Ended

Jun. 30, 2022

Deposits

Deposits

Note 6—Deposits

Time deposits, included in interest-bearing deposits, were $669,581 and $891,820 at June 30, 2022 and December 31, 2021, respectively. Time deposits included brokered deposits of $20,109 at December 31, 2021. There were no brokered deposits at June 30, 2022.

Time deposits that meet or exceed the FDIC insurance limit of $250 were $183,767 and $244,868 at June 30, 2022 and December 31, 2021, respectively.

FHLB Borrowings

6 Months Ended

Jun. 30, 2022

FHLB Borrowings

FHLB Borrowings

Note 7—FHLB Borrowings

FHLB Advances

FHLB borrowings at June 30, 2022 and December 31, 2021 consist of the following:


	June 30,				December 31,
	2022		Interest Rates		2021		Interest Rates
Long-term fixed rate advances	$	50,000	1.96	%	$	150,000	0.43% - 1.96	%

At June 30, 2022, the Company has long-term fixed-rate advances of $50,000 with a maturity date of May 2029. The advances require monthly interest-only payments with the principal amount due on the maturity date and may contain a prepayment penalty if paid before maturity. The advances may be callable by the FHLB in May 2024. In May of 2022, the Bank utilized its excess liquidity to repay $100,000 in long-term fixed rate advances which the FHLB had called using the call provision. At June 30, 2022, the Bank had additional borrowing capacity of $389,260 from the FHLB.

FHLB Overdraft Line of Credit and Letters of Credit

The Bank has established a short-term overdraft line of credit agreement with the FHLB, which provides for maximum borrowings of $20,000. The overdraft line of credit was not used during the six months ended June 30, 2022. At June 30, 2022 and December 31, 2021, there were no outstanding borrowings under this agreement. Borrowings accrue interest based on a variable rate based on the FHLB’s overnight cost of funds rate, which was 1.90% and 0.43% at June 30, 2022 and December 31, 2021, respectively. The agreement has a one-year term and terminates in October 2022.

In 2021, the Bank entered into irrevocable standby letters of credit arrangements with the FHLB totaling $11,500 to provide credit support for certain of its obligations related to its commitment to repurchase certain pools of Advantage Loan Program loans. An irrevocable standby letter of credit of $7,500 has a 16-month term and expires in July 2022. An irrevocable standby letter of credit originally of $4,000 has a 36-month term and expires in July 2024. This letter was reduced to $2,000 during the second quarter of 2022; thereby, the Bank has total available letters of credit of $9,500 and $11,500 at June 30, 2022 and December 31, 2021, respectively. There were no borrowings outstanding on these standby letters of credit during the six months ended June 30, 2022 and 2021.

The long-term fixed-rate advances and the overdraft line of credit are collateralized by certain investment securities and loans. Refer to Note 3—Investment Securities for further information on securities pledged as collateral and Note 4—Loans for further information on loans pledged as collateral.

Other Borrowings

The Bank had available unsecured credit lines with other banks totaling $80,000 at June 30, 2022 and December 31, 2021. There were no borrowings under these unsecured credit lines during the six months ended June 30, 2022 and 2021.

Subordinated Notes, net

6 Months Ended

Jun. 30, 2022

Subordinated Notes, net

Subordinated Notes, net

Note 8—Subordinated Notes, net

The subordinated notes (the “Notes”) were as follows:


	June 30,		December 31,
	2022		2021
Subordinated notes	$	65,000	$	65,000
Unamortized note premium		308		343
Total	$	65,308	$	65,343

The Notes bore interest at 7.0% per annum, payable semi-annually on April 15 and October 15 in arrears, through April 2021 after which the Notes have a variable interest rate of the three-month LIBOR rate plus a margin of 5.82%. The interest rate was 6.86% and 5.94% at June 30, 2022 and December 31, 2021, respectively. Note premium costs are amortized over the contractual term of the Notes into interest expense using the effective interest method. Interest expense on these Notes was $1,090 and $1,005 for the three months ended June 30, 2022 and 2021, respectively, and $2,054 and $2,185 for the six months ended June 30, 2022 and 2021, respectively. The Notes mature in April 2026.

The Company may redeem the Notes, in whole or in part, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued interest, in a principal amount with integral multiples of $1. There have been no redemptions of the Notes. The Notes are not subject to redemption by the noteholder.

The Notes are unsecured obligations and are subordinated in right of payment to all existing and future indebtedness, deposits and other liabilities of the Company’s current and future subsidiaries, including the Bank’s deposits as well as the Company’s subsidiaries’ liabilities to general creditors and liabilities arising during the ordinary course of business. The Notes may be included in Tier 2 capital for the Company under current regulatory guidelines and interpretations. As long as the Notes are outstanding, the Company is permitted to pay dividends if prior to such dividends, the Bank is considered well capitalized, as defined by regulatory guidelines.

The Company currently may not issue new debt without the prior approval of the FRB.

Shareholders' Equity

6 Months Ended

Jun. 30, 2022

Shareholders' Equity

Shareholders' Equity

Note 9 – Shareholders’ Equity

In April 2022, the Company issued and contributed 160,978 shares of common stock to fund the matching contribution made under the Bank’s defined contribution retirement plan. The contribution amount of $1,138 was valued using the closing market price of the stock on the date contributed or $7.07 per share.

In May 2021, the Company issued and sold 300,000 unregistered shares of common stock to its chief executive officer pursuant to the terms of a stock purchase agreement entered into at the time of the chief executive officer’s employment for cash consideration of $1,350 or $4.50 per share, the fair market value on date of sale.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Stock-based Compensation

6 Months Ended

Jun. 30, 2022

Stock-based Compensation

Stock-based Compensation

Note 10—Stock-based Compensation

The board of directors established the 2020 Omnibus Equity Incentive Plan (the “2020 Plan”), which was approved by the shareholders in December 2020. The 2020 Plan provides for the grant of up to 3,979,661 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares for issuance to employees, consultants and the board of directors of the Company. The stock-based awards are issued at no less than the market price on the date the awards are granted.

Previously, the board of directors had established a 2017 Omnibus Equity Incentive Plan (the “2017 Plan”) which was approved by the shareholders. The 2017 Plan initially provided for the grant of up to 4,237,100 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards for issuance to employees, consultants and the board of directors of the Company. The stock-based awards were issued at no less than the market price on the date the awards were granted. Due to the adoption of the 2020 Plan, no further grants will be issued under the 2017 Plan.

Stock Options

Stock option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant. Beginning with grants in 2020, stock option awards vest ratably over three years (one-third per year) after the date of grant, while stock option awards granted prior to 2020 generally vest in installments of 50% in each of the third and fourth year after the date of grant. All stock option awards have a maximum term of ten years. No stock option awards were granted during the six months ended June 30, 2022 and 2021.

A summary of the Company’s stock option activity as of and for the six months ended June 30, 2022 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term	Value
				(Years)
Outstanding at January 1, 2022	367,767	$	5.41	8.13	$	525
Granted	—
Exercised	—
Forfeited/expired	(18,222)		9.67
Outstanding at June 30, 2022	349,545	$	5.19	7.68	$	510
Exercisable at June 30, 2022	344,506	$	5.14	7.69	$	510

The Company recorded stock-based compensation expense associated with stock options of $2 and $46 for the three months ended June 30, 2022 and 2021, respectively, and $(11) and $103 for the six months ended June 30, 2022 and 2021, respectively. At June 30, 2022, there was $6 of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a weighted-average period of less than one year.

Restricted Stock Awards

Restricted stock awards are issued to independent directors and certain key employees. The restricted stock awards generally vest ratably over three years (one-third per year) after the date of grant. The value of a restricted stock award is based on the market value of the Company’s common stock at the date of grant reduced by the present value of dividends per share expected to be paid during the period the shares are not vested. Upon a change in control, as defined in the 2017 Plan and the 2020 Plan, the outstanding restricted stock awards will immediately vest.

During the six months ended June 30, 2022, the board of directors approved the issuance of 230,427 shares of restricted stock, of which 45,000 shares were awarded to independent directors and 185,427 shares were awarded to key employees. During the six months ended June 30, 2021, the board of directors approved the issuance of 227,702 shares of restricted stock, of which 45,000 shares were awarded to independent directors and 182,702 shares were awarded to key employees.

During the six months ended June 30, 2022 and 2021, the Company withheld 29,728 shares and 8,536 shares, respectively, of common stock representing a portion of the restricted stock awards that vested during the period in order to satisfy certain related employee tax withholding liabilities of $196 and $46, respectively, associated with vesting. These withheld shares are treated the same as repurchased shares for accounting purposes.

A summary of the restricted stock awards activity for the six months ended June 30, 2022 is as follows:


		Weighted Average
	Number	Grant Date
	of Shares	Fair Value
Nonvested at January 1, 2022	293,637	$	5.81
Granted	230,427		6.57
Vested	(101,342)		6.23
Forfeited	(4,397)		6.94
Nonvested at June 30, 2022	418,325	$	6.12

The fair value of the award is recorded as compensation expense on a straight-line basis over the vesting period. The Company recorded stock-based compensation expense associated with restricted stock awards of $237 and $147 for the three months ended June 30, 2022 and 2021, respectively, and $396 and $195 for the six months ended June 30, 2022 and 2021, respectively. At June 30, 2022, there was $2,183 of total unrecognized compensation cost related to the nonvested stock granted which is expected to be recognized over a weighted-average period of 2.36 years. The total fair value of shares vested during the six months ended June 30, 2022 and 2021 was $655 and $173, respectively.

Regulatory Capital Requirements

6 Months Ended

Jun. 30, 2022

Regulatory Capital Requirements

Regulatory Capital Requirements

Note 11—Regulatory Capital Requirements

The Bank is subject to the capital adequacy requirements of the OCC. The Company, as a thrift holding company, is subject to the capital adequacy requirements of the Federal Reserve. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Prompt corrective action regulations provide five classifications for depository institutions like the Bank, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors, and the regulators, in their discretion, can require the Company to lower classifications in certain cases. Failure to meet minimum capital requirements can initiate regulatory action that could have a direct material effect on the Company’s business, financial condition and results of operations.

The Bank, after consultation with the OCC, determined that a risk-weighting of 100% should be applied to its Advantage Loan Program loans under the risk weighting requirements for first-lien residential mortgage exposures set forth under the Basel III capital rules. Previously, the Company and the Bank generally applied a 50% risk weight to the Advantage Loan Program loans. The table below presents the Company’s and the Bank’s regulatory capital amounts and ratios applying the 100% risk weight as of June 30, 2022 and December 31, 2021 for the Company’s and Bank’s total adjusted capital to risk-weighted assets, Tier 1 (core) capital to risk-weighted assets and CET1 to risk weighted assets.

Under the Basel III capital rules, both the Company and the Bank must hold a capital conservation buffer (“CCB”) consisting of at least 2.5% above the minimum risk-based capital ratios, or 7.0% for common equity Tier 1 (“CET1”) capital ratio, 8.5% for Tier 1 capital ratio and 10.5% for total capital ratio, in order to avoid limitations on capital distributions and discretionary bonus payments to executive officers and similar employees.

At June 30, 2022 and December 31, 2021, the Company and the Bank had met all regulatory capital requirements to which they are subject and held capital in excess of the CCB, and the Bank’s regulatory capital ratios exceeded the requirements to be considered well capitalized for all regulatory purposes. The following tables present the Company’s consolidated and the Bank’s actual and minimum required capital amounts and ratios at June 30, 2022 and December 31, 2021, applying the 100% risk weight to Advantage Loan Program loans:


					For Capital					To be Well
	Actual				Adequacy Purposes					Capitalized
	Amount		Ratio		Amount		Ratio			Amount	Ratio
June 30, 2022
Total adjusted capital to risk-weighted assets
Consolidated	$	408,946	24.70	%	$	132,448	8.00	%		N/A	N/A
Bank		411,042	24.93			131,924	8.00		$	164,905	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		348,679	21.06			99,336	6.00			N/A	N/A
Bank		390,044	23.65			98,943	6.00			131,924	8.00
Common Equity Tier 1 (CET1)
Consolidated		348,679	21.06			74,502	4.50			N/A	N/A
Bank		390,044	23.65			74,207	4.50			107,188	6.50
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)
Consolidated		348,679	12.91			108,015	4.00			N/A	N/A
Bank		390,044	14.44			108,083	4.00			135,104	5.00


					For Capital					To be Well
	Actual				Adequacy Purposes					Capitalized
	Amount		Ratio		Amount		Ratio			Amount	Ratio
December 31, 2021
Total adjusted capital to risk-weighted assets
Consolidated	$	421,732	21.24	%	$	158,851	8.00	%		N/A	N/A
Bank		407,699	20.55			158,707	8.00		$	198,384	10.00	%
Tier 1 (core) capital to risk-weighted assets
Consolidated		344,247	17.34			119,138	6.00			N/A	N/A
Bank		382,509	19.28			119,030	6.00			158,707	8.00
Common Equity Tier 1 (CET1)
Consolidated		344,247	17.34			89,354	4.50			N/A	N/A
Bank		382,509	19.28			89,273	4.50			128,950	6.50
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)
Consolidated		344,247	11.47			120,039	4.00			N/A	N/A
Bank		382,509	12.77			119,859	4.00			149,824	5.00

In order to provide a comparable trend analysis for the Bank’s and the Company’s risk based capital ratios applying the 100% risk weight to Advantage Loan Program loans, the tables below present the regulatory capital ratios applying the 100% risk weight at December 31 for each of the past five years. At each of the year-end dates reported, the Company and the Bank had met all minimum regulatory capital requirements and applicable capital cushions to which they are subject and held capital in excess of the CCB, and the Bank would have been considered well capitalized for all regulatory purposes. The CCB requirement was phased in beginning on January 1, 2016 at the 0.625% level and increased by 0.625% on each subsequent January 1, until the buffer was implemented in full at 2.5% on January 1, 2019. Accordingly, the CCB at December 31, 2018 was 1.875% and the CCB at December 31, 2017 was 1.25%.


	Company at December 31,
	2021		2020		2019		2018		2017
Total adjusted capital to risk-weighted assets	21.24	%	16.51	%	14.58	%	14.82	%	13.49	%
Tier 1 (core) capital to risk-weighted assets	17.34	%	12.65	%	11.56	%	11.77	%	10.33	%
Common Equity Tier 1 (CET1)	17.34	%	12.65	%	11.56	%	11.77	%	10.33	%
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	11.47	%	8.08	%	10.11	%	10.42	%	9.83	%


	Bank at December 31,
	2021		2020		2019		2018		2017
Total adjusted capital to risk-weighted assets	20.55	%	15.74	%	12.08	%	11.43	%	10.06	%
Tier 1 (core) capital to risk-weighted assets	19.28	%	14.47	%	11.32	%	10.66	%	9.12	%
Common Equity Tier 1 (CET1)	19.28	%	14.47	%	11.32	%	10.66	%	9.12	%
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	12.77	%	9.20	%	9.90	%	9.44	%	8.68	%

In comparison to the above table, the tables below present the Bank’s and the Company’s regulatory capital ratios applying the 50% risk weight to Advantage Loan Program loans at December 31 for each of the past five years, as previously reported.


	Company at December 31,
	2021		2020		2019		2018		2017
Total adjusted capital to risk-weighted assets	29.02	%	22.58	%	21.49	%	21.98	%	20.28	%
Tier 1 (core) capital to risk-weighted assets	24.08	%	17.68	%	17.04	%	17.45	%	15.53	%
Common Equity Tier 1 (CET1)	24.08	%	17.68	%	17.04	%	17.45	%	15.53	%
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	11.47	%	8.08	%	10.11	%	10.42	%	9.83	%


	Bank at December 31,
	2021		2020		2019		2018		2017
Total adjusted capital to risk-weighted assets	28.07	%	21.56	%	17.82	%	16.94	%	14.76	%
Tier 1 (core) capital to risk-weighted assets	26.79	%	20.27	%	16.70	%	15.80	%	13.71	%
Common Equity Tier 1 (CET1)	26.79	%	20.27	%	16.70	%	15.80	%	13.71	%
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	12.77	%	9.20	%	9.90	%	9.44	%	8.68	%

Dividend Restrictions

As noted above, banking regulations require the Bank to maintain certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to its shareholders. The Company’s principal source of funds for dividend payments is dividends received from the Bank, and banking regulations limit the dividends that may be paid. Approval by regulatory authorities is required if (i) the total capital distributions for the applicable calendar year exceed the sum of the Bank’s net income for that year to date plus the Bank’s retained net income for the preceding two years or (ii) the Bank would not be at least adequately capitalized following the distribution.

The Qualified Thrift Lender (“QTL”) test requires that a minimum of 65% of assets be maintained in qualified thrift investments, including mortgage loans, housing- and real estate-related finance and other specified areas. If the QTL test is not met, limits are placed on growth, branching, new investments, FHLB advances and dividends, or the Bank must convert to a commercial bank charter. Management believes that the QTL test has been met. Also, pursuant to the terms of the subordinated note agreements, the Company may pay dividends if it is well capitalized as defined by regulatory guidelines.

The Bank is currently required to obtain the prior approval of the OCC in order to pay dividends to the Company due to the existence of a formal agreement with the OCC. Refer to Note 16—Commitments and Contingencies. In addition, the Company currently is required to obtain the prior approval of the FRB in order to pay dividends to the Company’s shareholders.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Income (Loss) Per Share

6 Months Ended

Jun. 30, 2022

Income (Loss) Per Share

Income (Loss) Per Share

Note 12—Income (Loss) Per Share

Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted income per common share further includes any common shares available to be issued upon the exercise of outstanding stock options and restricted stock awards if such inclusions would be dilutive. In periods of a net loss, basic and diluted share information are the same. The Company determines the potentially dilutive common shares using the treasury stock method. The following table presents the computation of income (loss) per share, basic and diluted:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Numerator:
Net income (loss)	$	(2,197)	$	3,452	$	3,063	$	5,777

Denominator:
Weighted average common shares outstanding, basic		50,386,856		50,009,053		50,289,612		49,930,563
Weighted average effect of potentially dilutive common shares:
Stock options		—		41,055		112,422		45,423
Restricted stock		—		10,667		94,453		11,267
Weighted average common shares outstanding, diluted		50,386,856		50,060,775		50,496,487		49,987,253

Income (loss) per share, basic and diluted	$	(0.04)	$	0.07	$	0.06	$	0.12

The weighted average effect of certain stock options and nonvested restricted stock that were excluded from the computation of weighted average diluted shares outstanding, as inclusion would be anti-dilutive, are summarized as follows:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2022	2021	2022	2021
Stock options	344,506	67,767	49,545	71,325
Restricted stock	418,325	241,732	59,074	153,190
Total	762,831	309,499	108,619	224,515

Employee Benefit Plans

6 Months Ended

Jun. 30, 2022

Employee Benefit Plans

Employee Benefit Plans

Note 13—Employee Benefit Plans

In May 2022, the Bank surrendered a large split-dollar life program and a few smaller bank-owned life insurance (“BOLI”) policies related to former executives and a controlling shareholder with a cash surrender value of $24.9 million. The $13.1 million increase in value over the duration of the ownership of the policies has moved from non-taxable income to taxable income, resulting in a $3.6 million increase in income tax expense for the three and six months ended June 30, 2022. Additional taxes of $1.3 million relating to this surrender are included in other expense within non-interest expense during the three and six months ended June 30, 2022.

In connection with the surrender, the Bank also cancelled certain deferred compensation and the split dollar life insurance agreement with its controlling shareholder which resulted in the reversal of the related liabilities of $4.5 million which are included as a reduction in salaries and employee benefits expense for the three and six months ended June 30, 2022.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Fair Values of Financial Instruments

6 Months Ended

Jun. 30, 2022

Fair Values of Financial Instruments

Fair Values of Financial Instruments

Note 14—Fair Values of Financial Instruments

Financial instruments include assets carried at fair value, as well as certain assets and liabilities carried at cost or amortized cost but disclosed at fair value in these condensed consolidated financial statements. Fair value is defined as the exit price, the price that would be received for an asset or paid to transfer a liability in the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The following methods and significant assumptions are used to estimate fair value:

Investment Securities

The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar investment securities (Level 2). For investment securities where quoted prices or market prices of similar investment securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using spread to LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the analysis. Rating agency and industry research reports as well as defaults and deferrals on individual investment securities are reviewed and incorporated into the calculations.

Loans Held for Sale

Loans held for sale are carried at the lower of amortized cost or fair value. Fair value is determined based on outstanding commitments from investors or quoted prices for loans with similar characteristics (Level 2).

Impaired Loans

The fair value of collateral-dependent impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach, such as comparable sales or the income approach, or a combination of both. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Appraisals for collateral-dependent impaired loans are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by management. Once received, an appraisal compliance review is completed in accordance with regulatory guidelines.

Mortgage Servicing Rights

Fair value of mortgage servicing rights is initially determined at the individual grouping level based on an internal valuation model that calculates the present value of estimated future net servicing income. On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon third-party valuations obtained. As disclosed in Note 5—Mortgage Servicing Rights, net, the valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income (Level 3).

Assets Measured at Fair Value on a Recurring Basis

The table below presents the assets measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset at June 30, 2022 and December 31, 2021:


			Fair Value Measurements at
			June 30, 2022
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury and Agency securities	$	181,188	$	93,500	$	87,688	$	—
Mortgage-backed securities		40,583		—		40,583		—
Collateralized mortgage obligations		155,568		—		155,568		—
Collateralized debt obligations		153		—		—		153
Equity securities		4,571		4,571		—		—


			Fair Value Measurements at
			December 31, 2021
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury and Agency securities	$	122,168	$	48,827	$	73,341	$	—
Mortgage-backed securities		49,437		—		49,437		—
Collateralized mortgage obligations		136,849		—		136,849		—
Collateralized debt obligations		203		—		—		203
Equity securities		4,976		4,976		—		—

The table below presents a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2022 and 2021:


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Collateralized Debt Obligations
	Six Months Ended June 30,
	2022		2021
Balance of recurring Level 3 assets at beginning of period	$	203	$	187
Total gains or losses (realized/unrealized):
Included in income-realized		—		—
Included in other comprehensive income (loss)		3		4
Principal maturities/settlements		(53)		(1)
Sales		—		—
Transfers in and/or out of Level 3		—		—
Balance of recurring Level 3 assets at end of period	$	153	$	190

Unrealized losses on Level 3 investments for collateralized debt obligations was $5 and $8 at June 30, 2022 and December 31, 2021, respectively. In addition to the amounts included in income as presented in the table above, interest income recorded on collateralized debt obligations was $3 for the six months ended June 30, 2022 and 2021.

The fair value of the collateralized debt obligations is obtained from third-party pricing information. It is determined by calculating discounted cash flows using LIBOR curves plus spreads that adjust for credit risk and illiquidity. The Company also performs an internal analysis that considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers to corroborate the information used from the independent third party.

Assets Measured at Fair Value on a Non-recurring Basis

From time to time, the Bank may be required to measure certain other assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis that were recorded in the condensed consolidated balance sheets at June 30, 2022 and December 31, 2021, the following table provides the level of valuation assumptions used to determine each adjustment and the related carrying value:

Fair Value Measurements at June 30, 2022

Quoted Prices in

Significant

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Assets

Inputs

Fair Value

(Level 1)

(Level 2)

(Level 3)

Mortgage servicing rights

926

—

926


	Fair Value Measurements at December 31, 2021
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Residential real estate	$	86	$	—	$	—	$	86
Commercial real estate loans held for sale		53,628		—		53,628		—
Mortgage servicing rights		2,052		—		—		2,052

As discussed above, the fair values of collateral-dependent impaired loans carried at fair value are determined by third-party appraisals. Management adjusts these appraised values based on the age of the appraisal and the type of the property. The following tables present quantitative information about Level 3 fair value measurements at June 30, 2022 and December 31, 2021:


	Quantitative Information about Level 3 Fair Value Measurements at June 30, 2022
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Mortgage servicing rights	$	926	Discounted cash flow	Discount rate	9.5% - 12.0% (11.9%)
				Prepayment speed	7.8% - 28% (19.0%)
				Default rate	0.1% - 0.2% (0.2%)

(1)	The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2021
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Impaired loans:
Residential real estate	$	86	Sales comparison approach	Adjustments for differences between the comparable sales	N/A (15%)
Mortgage servicing rights	$	2,052	Discounted cash flow	Discount rate	9.5% - 12.0% (11.0%)
				Prepayment speed	10.5% - 37.1% (19.7%)
				Default rate	0.1% - 0.2% (0.2%)

(1)	The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

Fair Value of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not carried at fair value at June 30, 2022 and December 31, 2021, are as follows:


	Fair Value Measurements at June 30, 2022
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	285,165	$	285,165	$	285,165	$	—	$	—
Interest-bearing time deposits with other banks		1,183		1,183		1,183		—		—
Loans held for sale		8,964		9,398		—		9,398		—
Loans, net		1,726,366		1,683,258		—		—		1,683,258

Financial Liabilities
Time deposits		669,581		673,210		—		673,210		—
Federal Home Loan Bank borrowings		50,000		49,050		—		49,050		—
Subordinated notes, net		65,308		65,037		—		65,037		—


	Fair Value Measurements at December 31, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	411,676	$	411,676	$	411,676	$	—	$	—
Interest-bearing time deposits with other banks		1,183		1,183		1,183		—		—
Loans held for sale		11,359		11,809		—		11,809		—
Loans, net⁽¹⁾		1,956,180		2,025,409		—		—		2,025,409

Financial Liabilities
Time deposits		891,820		894,049		—		894,049		—
Federal Home Loan Bank borrowings		150,000		152,560		—		152,560		—
Subordinated notes, net		65,343		65,073		—		65,073		—

(1)Excludes impaired loans measured at fair value on a nonrecurring basis at December 31, 2021.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Party Transactions

6 Months Ended

Jun. 30, 2022

Related Party Transactions

Related Party Transactions

Note 15—Related Party Transactions

In May 2021, the Company issued and sold unregistered shares of common stock to its Chief Executive Officer in exchange for cash consideration. Refer to Note 9 – Shareholders’ Equity.

The Company subleased certain office space to entities owned by the Company’s controlling shareholders. Amounts received under such subleases totaled $97 for the three months ended June 30, 2021, and $112 and $192 during the six months ended June 30, 2022 and 2021, respectively. The sublease agreements ended on March 31, 2022.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies

Commitments and Contingencies

Note 16—Commitments and Contingencies

Financial Instruments with Off-Balance Sheet Risk

The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit, which are not reflected in the condensed consolidated financial statements.

Unfunded Commitments to Extend Credit

A commitment to extend credit, such as a loan commitment, credit line and overdraft protection, is a legally binding agreement to lend funds to a customer, usually at a stated interest rate and for a specific purpose. Such commitments have fixed expiration dates and generally require a fee. The extension of a commitment gives rise to credit risk. The actual liquidity requirements or credit risk that the Bank will experience is expected to be lower than the contractual amount of commitments to extend credit because a significant portion of those commitments are expected to expire without being drawn upon. Certain commitments are subject to loan agreements containing covenants regarding the financial performance of the customer that must be met before the Bank is required to fund the commitment. The Bank uses the same credit policies in making commitments to extend credit as it does in making loans.

The commitments outstanding to make loans include primarily residential real estate loans that are made for a period of 90 days or less. At June 30, 2022, outstanding commitments to make loans consisted of variable rate loans of $2,802 at varying interest rates ranging from 3.125% to 4.375% at June 30, 2022 with maturities of 30 years.

Unused Lines of Credit

The Bank also issues unused lines of credit to meet customer financing needs. At June 30, 2022, the unused lines of credit include residential second mortgages of $10,618 and construction loans of $16,682 totaling $27,300. These unused lines of credit are associated with variable rate commitments at interest rates ranging from 4.0% to 6.95% with maturities ranging from one month to 23 years.

Standby Letters of Credit

Standby letters of credit are issued on behalf of customers in connection with construction contracts between the customers and third parties. Under standby letters of credit, the Bank assures that the third parties will receive specified funds if customers fail to meet their contractual obligations. The credit risk to the Bank arises from its obligation to make payment in the event of a customer’s contractual default. The maximum amount of potential future payments guaranteed by the Bank is limited to the contractual amount of these letters. Collateral may be obtained at exercise of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

The following is a summary of the total amount of unfunded commitments to extend credit and standby letters of credit outstanding at June 30, 2022 and December 31, 2021:


	June 30,		December 31,
	2022		2021
Commitments to make loans	$	2,802	$	23,610
Unused lines of credit		27,300		45,805
Standby letters of credit		24		24

Legal Proceedings

The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened legal proceedings, except as described below, that are considered other than routine legal proceedings. The Company believes that the ultimate disposition or resolution of its routine legal proceedings, in the aggregate, are immaterial to its financial position, results of operations or liquidity.

The Bank is currently under formal investigation by the OCC generally relating to its former residential loan product marketed as the Advantage Loan Program and related matters (the “OCC Investigation”) and continues to be subject to a publicly available formal agreement with the OCC, dated June 18, 2019 (the “OCC Agreement”), relating primarily to certain aspects of its Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) compliance program as well as the Bank’s credit administration. The OCC Agreement generally requires that the Bank enhance its policies and procedures to ensure compliance with BSA/AML laws and regulations and ensure effective controls over residential loan underwriting.

The Bank is fully cooperating with the OCC Investigation and has implemented the items necessary to achieve compliance with the obligations in the OCC Agreement. A finding by the OCC that the Bank failed to comply with the OCC Agreement or adverse findings in the OCC Investigation could result in additional regulatory scrutiny, constraints on the Bank’s business, or other formal enforcement action, including the assessment of fines and penalties. Any of those events could have a material adverse effect on our future operations, financial condition, growth, or other aspects of our business.

The Bank also has received grand jury subpoenas from the U.S. Department of Justice (the “DOJ”) beginning in 2020 requesting the production of documents and information in connection with an investigation that appears to be focused on the Bank’s Advantage Loan Program and related issues, including residential lending practices and public disclosures about that program contained in the Company’s filings with the SEC. The Bank is fully cooperating with this ongoing investigation. Adverse findings in the DOJ investigation could result in material losses due to damages, restitution, penalties, costs, and/or expenses imposed on the Company, which could have a material adverse effect on the Company’s future operations, financial condition, growth, or other aspects of the business.

The Company is currently under a formal investigation by the SEC. This investigation appears to be focused on accounting, financial reporting and disclosure matters, as well as the Company’s internal controls, related to the Advantage Loan Program. The Company has received document and information requests from the SEC and is fully cooperating with this investigation. Adverse findings in the SEC investigation could result in material losses due to penalties, disgorgement, costs and/or expenses imposed on the Company, which could have a material adverse effect on the Company’s future operations, financial condition, growth or other aspects of its business.

The Bank has incurred and expects to continue to incur significant costs in its efforts to comply with the OCC Agreement and respond to the government investigations, which are reflected in the Company’s results of operations for the three and six months ended June 30, 2022 and 2021. Adverse findings in any of the aforementioned government investigations could also have collateral consequences for the Company and the Bank, such as creating breaches of representation in certain third-party agreements and loss of eligibility to participate in certain government programs and programs of government sponsored entities.

In 2019, the Company commenced an internal review of the Advantage Loan Program and related matters (the “Internal Review”). The primary focus of the Internal Review, which has been led by outside legal counsel at the direction of a special committee of independent directors (the “Special Committee”), has involved the origination of residential real estate loans under the Advantage Loan Program and related matters. Results from the Special Committee’s Internal Review have indicated that certain employees engaged in misconduct in connection with the origination of a significant number of such loans, including with respect to verification of income, the amount of income reported for borrowers, reliance on third parties, and related documentation. As a result, the Company permanently discontinued the Advantage Loan Program. While the Internal Review is substantially complete, the Company expects the Internal Review to remain open during the pendency of the government investigations discussed herein, and it is possible additional work will be required in connection with the Internal Review.

At June 30, 2022 and December 31, 2021, the Company has a liability for contingent losses of $15,000 for the outcome of the pending investigations. There can be no assurance (i) that the Company will not incur material losses due to damages, penalties, costs and/or expenses as a result of such investigations, (ii) that the accrual for contingent losses will be sufficient to cover such losses, or (iii) that such losses will not materially exceed such accrual and have a material impact on the Company’s business, financial condition or results of operations.

In addition, on July 28, 2020, the Company received a demand letter from two law firms representing a purported shareholder of the Company (the “Shareholder Demand”) alleging that members of the Company’s board of directors breached their fiduciary duties of oversight and disclosure based on allegations concerning the Bank’s residential lending practices and disclosures concerning those practices that were made in the Company’s registration statement and prospectus for its initial public offering, in subsequent press releases, in periodic and other filings with the SEC and during earnings calls. The Shareholder Demand requested that the board of directors take action to (1) recover damages the Company has purportedly sustained as a result of alleged breaches of fiduciary duties by certain of its officers and directors; (2) recover for the benefit of the Company the amounts by which certain of its officers and directors purportedly were unjustly enriched; and (3) correct alleged deficiencies in the Company’s internal controls. Following receipt of the Shareholder Demand, the Company’s board of directors established a demand review committee consisting of independent directors, none of whom were named in the Shareholder Demand.

On January 21, 2022, the Company and the purported shareholder entered into an agreement in the form of a definitive stipulation of settlement (the “Settlement”). Pursuant to the Settlement, the Company agreed to adopt and implement substantial corporate governance reforms, many of which have been implemented, and pay attorneys’ fees and expenses in exchange for the release of all defendants from all alleged claims therein. The Settlement provides customary releases of certain individuals and entities, including the current board of directors and certain former board members, and reserves for the Company’s board of directors the exclusive right to continue to evaluate and pursue claims against non-released individuals based on their conduct concerning, related to, or arising from the matters raised in the Shareholder Demand. The Settlement remains subject to final court approval and other customary conditions. Reimbursement of the plaintiff attorneys’ fees and expenses of $650 due under the Settlement will be paid by the Company’s insurance carriers under applicable insurance policies. A loss recovery receivable of $650 was recorded in the fourth quarter of 2021, in the amount of the liability for the total of the attorneys’ fees and expenses also recorded in the fourth quarter of 2021. On April 25, 2022, the court granted preliminary approval of the Settlement, and a final approval hearing is currently scheduled to be held before the court on September 29, 2022.

Mortgage Repurchase Liability

During the period 2015 through 2019, the Company sold portfolio loans originated under the Advantage Loan Program to private investors in the secondary market. The Company also sells conventional residential real estate loans (which excludes Advantage Loan Program loans) in the secondary market primarily to Fannie Mae on an ongoing basis. In connection with these loans sold, the Company makes customary representations and warranties about various characteristics of each loan. The Company may be required pursuant to the terms of the applicable mortgage loan purchase and sale agreements to repurchase any previously sold loan or indemnify (make whole) the investor for which the representation or warranty of the Company proves to be inaccurate, incomplete or misleading. In the event of a repurchase, the Company is typically required to pay the unpaid principal balance, the proportionate premium received when selling the loan and certain expenses. As a result, the Company may incur a loss with respect to each repurchased loan.

In 2019, in connection with the above mentioned investigations stemming from the Advantage Loan Program, the Bank recorded a mortgage repurchase liability of $7,823, primarily related to probable losses on the previously sold Advantage Loan Program portfolio. The Company determined that these losses became probable in the latter part of the fourth quarter of 2019, taking into account the results of the Internal Review. In 2020, based on further analysis, the Company increased the mortgage repurchase liability by $2,527.

To avoid the uncertainty of audits and inquiries by third-party investors in the Advantage Loan Program, beginning at the end of the second quarter of 2020, the Company commenced making offers to each of those investors to repurchase 100% of the previously sold Advantage Loan Program loans. Since this time, certain third-party investors have accepted this offer. In May 2022, the Company repurchased a pool of Advantage Loan Program loans with a total outstanding unpaid principal balance of $30,380, which was not subject to an existing written agreement to repurchase. In connection with this repurchase, the Company recognized a loss of $695 related to a fair value discount in other non-interest expense and a disposition of $376 of mortgage servicing rights, and charged a loss of $622 against the mortgage repurchase liability. Through June 30, 2022, the Company has repurchased pools of Advantage Loan Program loans previously sold with a total outstanding unpaid principal balance of $273,847. Pursuant to the existing agreements with such investors, the Company also agreed to repurchase additional pools of Advantage Loan Program loans at the predetermined repurchase prices stated in the agreements. The Company may be required to repurchase the additional pools of Advantage Loan Program loans within the time ranges specified in the following table, with the final decision to effect any such repurchase and the specific date of repurchase within each range to be determined by the applicable investor. Losses expected to be incurred upon the repurchase of such loans are reflected in the mortgage repurchase liability.


		Outstanding
		Principal Balance at
Repurchase Date Range	June 30, 2022
Present – February 28, 2023	$	11,472
Present – May 21, 2023		11,784
Present – July 22, 2023		23,071
July 25, 2022 – July 25, 2023		14,475
	$	60,802

As of June 30, 2022 and December 31, 2021, the Bank’s mortgage repurchase liability was $1,807 and $2,954, respectively, which is included in accrued expenses and other liabilities in the condensed consolidated balance sheets. The unpaid principal balance of residential real estate loans sold that were subject to potential repurchase obligations for breach of representations and warranties totaled $177,704 and $237,049 at June 30, 2022 and December 31, 2021, respectively, including Advantage Loan Program loans totaling $89,648 and $142,810 at June 30, 2022 and December 31, 2021, respectively.

The mortgage repurchase liability reflects management’s estimate of losses based on a combination of factors. The Company’s estimation process requires management to make subjective and complex judgements about matters that are inherently uncertain, such as future repurchase demand expectations, economic factors and findings from the Internal Review. The actual repurchase losses could vary significantly from the recorded mortgage repurchase liability, depending on the outcome of various factors, including those previously discussed.

Activity in the mortgage repurchase liability was as follows:


	Six Months Ended
	June 30,
	2022		2021
Balance, beginning of period	$	2,954	$	9,699
Net recovery		(525)		(665)
Loss on loan repurchases		(622)		(4,742)
Balance, end of the period	$	1,807	$	4,292

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2022
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates.
Concentration of Credit Risk	Concentration of Credit Risk The loan portfolio consists primarily of residential real estate loans, which are collateralized by real estate. At June 30, 2022 and December 31, 2021, residential real estate loans accounted for 85% and 83%, respectively, of total gross loans. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California, which are dependent on the area economy for their livelihoods and servicing of their loan obligation. At June 30, 2022 and December 31, 2021, approximately 84% and 85%, respectively, of gross loans was originated with respect to properties or businesses located in the state of California. In March 2020, the Bank permanently discontinued its Advantage Loan program. Loans originated under this program comprised a significant component of the Bank’s total loan originations. Advantage Loan Program loans (including residential real estate loans held for sale of $7,313 and $11,359 at June 30, 2022 and December 31, 2021, respectively, of which $3,999 and $8,671 were on nonaccrual status at June 30, 2022 and December 31, 2021, respectively) totaled $992,477 and $1,185,458, or 66% and 69% of gross residential loans, at June 30, 2022 and December 31, 2021, respectively. Refer to Note 16—Commitments and Contingencies.
Recently Issued Accounting Guidance Not Yet Adopted	Recently Issued Accounting Guidance Not Yet Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance for troubled debt restructurings by creditors in ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings involving borrowings that are experiencing financial difficulty. Specifically, rather than applying the troubled debt restructuring recognition and measurement guidance, creditors will evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. Also, losses associated with troubled debt restructurings should be incorporated in a creditor’s estimate of its allowance for credit losses. Public business entities are required to disclose current-period gross write-offs by year of origination for loan financing receivables and net investment in leases. For entities that have not yet adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“2016-13”), ASU 2022-02 is effective when the entity adopts the guidance in ASU 2016-13. The Company is currently evaluating this ASU, along with its adoption of ASU 2016-13, as discussed below. In June 2016, the FASB issued ASU No. 2016-13, which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances and recoveries, among other things. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief. The amendments provide entities with an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis, upon adoption of Topic 326. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This update deferred the effective dates of Topic 326 to January 1, 2023 for certain entities including smaller reporting companies as defined by the SEC. The Company, as a smaller reporting company as of the relevant measuring period, qualified for this extension. At this time, a cross-functional implementation team consisting of individuals from accounting, finance, servicing and information systems is working with the Bank’s loan system vendor and consultants, and an application to create credit loss estimation models and processes has been developed. The historical data set for model development has been finalized, and the credit loss estimation models have been developed and tested. Once the credit loss estimation models have been finalized, the Bank will run the new credit loss estimation models in parallel with the current allowance for loan losses model to understand the differences in the models and assess the impact of the change. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the first reporting period in which ASU No. 2016-13 is effective. The Company has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of ASU No. 2016-13 on its condensed consolidated financial statements.

Investment Securities (Tables)

6 Months Ended

Jun. 30, 2022

Investment Securities

Schedule of amortized cost and fair value of debt securities available for sale


	June 30, 2022
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	186,002	$	40	$	(4,854)	$	181,188
Mortgage-backed securities		44,755		—		(4,172)		40,583
Collateralized mortgage obligations		165,391		273		(10,096)		155,568
Collateralized debt obligations		158		—		(5)		153
Total	$	396,306	$	313	$	(19,127)	$	377,492


	December 31, 2021
	Amortized		Gross Unrealized				Fair
	Cost		Gain		Loss		Value
Available for sale:
U.S. Treasury and Agency securities	$	122,291	$	106	$	(229)	$	122,168
Mortgage-backed securities		49,739		84		(386)		49,437
Collateralized mortgage obligations		137,662		530		(1,343)		136,849
Collateralized debt obligations		211		—		(8)		203
Total	$	309,903	$	720	$	(1,966)	$	308,657

Schedule of amortized cost and fair value of debt securities available for sale, shown by contractual maturity


	Amortized		Fair
	Cost		Value
U.S. Treasury and Agency securities
Due less than one year	$	50,085	$	50,009
Due after one year through five years		135,917		131,179
Mortgage-backed securities		44,755		40,583
Collateralized mortgage obligations		165,391		155,568
Collateralized debt obligations		158		153
Total	$	396,306	$	377,492

Schedule of debt securities available for sale, at fair value, continuous unrealized losses position


	June 30, 2022
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S Treasury and Agency securities	$	133,148	$	(4,854)	$	—	$	—	$	133,148	$	(4,854)
Mortgage-backed securities		33,502		(2,796)		7,081		(1,376)		40,583		(4,172)
Collateralized mortgage obligations		113,830		(10,096)		—		—		113,830		(10,096)
Collateralized debt obligations		—		—		153		(5)		153		(5)
Total	$	280,480	$	(17,746)	$	7,234	$	(1,381)	$	287,714	$	(19,127)


	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S Treasury and Agency securities	$	49,865	$	(229)	$	—	$	—	$	49,865	$	(229)
Mortgage-backed securities		7,878		(36)		8,729		(350)		16,607		(386)
Collateralized mortgage obligations		86,354		(1,342)		2,413		(1)		88,767		(1,343)
Collateralized debt obligations		—		—		203		(8)		203		(8)
Total	$	144,097	$	(1,607)	$	11,345	$	(359)	$	155,442	$	(1,966)

Schedule of equity securities with readily determinable fair values


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net gains (losses) recorded during the period on equity securities	$	(170)	$	15	$	(406)	$	(75)
Less: net gains (losses) recorded during the period on equity securities sold during the period		—		—		—		—
Unrealized gains (losses) recorded during the period on equity securities held at the reporting date	$	(170)	$	15	$	(406)	$	(75)

Loans (Tables)

6 Months Ended

Jun. 30, 2022

Loans

Schedule of major categories of loans

The major categories of loans held for sale were as follows:


	June 30,		December 31,
	2022		2021
Residential real estate	$	7,313	$	11,359
Commercial real estate		1,651		53,628
Total loans held for sale	$	8,964	$	64,987

The major categories of loans held for investment and the allowance for loan losses were as follows:


	June 30,		December 31,
	2022		2021
Residential real estate	$	1,506,852	$	1,704,231
Commercial real estate		214,494		201,240
Construction		55,150		106,759
Commercial lines of credit		1,418		363
Other consumer		218		221
Total loans		1,778,132		2,012,814
Less: allowance for loan losses		(51,766)		(56,548)
Loans, net	$	1,726,366	$	1,956,266

Schedule of activity in allowance for loan losses and recorded investment by portfolio segment

The following tables present the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2022 and 2021:


							Commercial
	Residential		Commercial				Lines of		Other
Three Months Ended June 30, 2022	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Beginning balance	$	29,911	$	13,709	$	8,829	$	6	$	—	$	52,455
Provision (recovery) for loan losses		(272)		1,251		(2,123)		30		5		(1,109)
Charge offs		(197)		—		—		—		—		(197)
Recoveries		540		75		2		—		—		617
Total ending balance	$	29,982	$	15,035	$	6,708	$	36	$	5	$	51,766

							Commercial
	Residential		Commercial				Lines of		Other
Six Months Ended June 30, 2022	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Beginning balance	$	32,202	$	12,608	$	11,730	$	8	$	—	$	56,548
Provision (recovery) for loan losses		(2,753)		2,347		(5,025)		28		5		(5,398)
Charge offs		(197)		—		—		—		—		(197)
Recoveries		730		80		3		—		—		813
Total ending balance	$	29,982	$	15,035	$	6,708	$	36	$	5	$	51,766


							Commercial
	Residential		Commercial				Lines of		Other
Three Months Ended June 30, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Beginning balance	$	33,056	$	22,763	$	15,966	$	86	$	—	$	71,871
Provision (recovery) for loan losses		(579)		(287)		(912)		(28)		—		(1,806)
Charge offs		—		—		—		—		—		—
Recoveries		587		15		2		—		—		604
Total ending balance	$	33,064	$	22,491	$	15,056	$	58	$	—	$	70,669


							Commercial
	Residential		Commercial				Lines of		Other
Six Months Ended June 30, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Beginning balance	$	32,366	$	21,942	$	17,988	$	91	$	—	$	72,387
Provision (recovery) for loan losses		(93)		518		(2,935)		(33)		—		(2,543)
Charge offs		—		—		—		—		—		—
Recoveries		791		31		3		—		—		825
Total ending balance	$	33,064	$	22,491	$	15,056	$	58	$	—	$	70,669


							Commercial
	Residential		Commercial				Lines of		Other
June 30, 2022	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		29,982		15,035		6,708		36		5		51,766
Total ending allowance balance	$	29,982	$	15,035	$	6,708	$	36	$	5	$	51,766
Loans:
Loans individually evaluated for impairment	$	50	$	—	$	8,265	$	112	$	—	$	8,427
Loans collectively evaluated for impairment		1,506,802		214,494		46,885		1,306		218		1,769,705
Total ending loans balance	$	1,506,852	$	214,494	$	55,150	$	1,418	$	218	$	1,778,132


							Commercial
	Residential		Commercial				Lines of		Other
December 31, 2021	Real Estate		Real Estate		Construction		Credit		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	159	$	—	$	—	$	—	$	—	$	159
Collectively evaluated for impairment		32,043		12,608		11,730		8		—		56,389
Total ending allowance balance	$	32,202	$	12,608	$	11,730	$	8	$	—	$	56,548
Loans:
Loans individually evaluated for impairment	$	350	$	4,441	$	14,984	$	116	$	—	$	19,891
Loans collectively evaluated for impairment		1,703,881		196,799		91,775		247		221		1,992,923
Total ending loans balance	$	1,704,231	$	201,240	$	106,759	$	363	$	221	$	2,012,814

Schedule of information related to impaired loans by class of loans


	At June 30, 2022						At December 31, 2021
	Unpaid				Allowance		Unpaid				Allowance
	Principal		Recorded		for Loan		Principal		Recorded		for Loan
	Balance		Investment		Losses		Balance		Investment		Losses
With no related allowance for loan losses recorded:
Residential real estate:
First mortgage	$	84	$	50	$	—	$	91	$	65	$	—
Commercial real estate:
Retail		231		—		—		—		—		—
Hotels/Single-room occupancy hotels		—		—		—		4,459		4,441		—
Construction		10,343		8,265		—		15,004		14,984		—
Commercial lines of credit:
Private banking		112		112		—		116		116		—
Subtotal		10,770		8,427		—		19,670		19,606		—
With an allowance for loan losses recorded:
Residential real estate:
First mortgage		—		—		—		273		285		159
Total	$	10,770	$	8,427	$	—	$	19,943	$	19,891	$	159


	Three Months Ended at June 30,
	2022						2021
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate:
First mortgage	$	55	$	1	$	1	$	86	$	—	$	—
Commercial real estate:
Retail		—		—		—		1,013		—		—
Hotels/Single-room occupancy hotels		—		—		—		17,926		—		—
Other		—		—		—		136		—		—
Construction		8,320		39		26		22,801		43		29
Commercial lines of credit:
Private banking		113		1		1		122		2		1
Subtotal		8,488		41		28		42,084		45		30
With an allowance for loan losses recorded:
Residential real estate:
First mortgage		142		—		—		277		1		1
Construction		—		—		—		11,104		55		37
Subtotal		142		—		—		11,381		56		38
Total	$	8,630	$	41	$	28	$	53,465	$	101	$	68


	Six Months Ended at June 30,
	2022						2021
	Average		Interest		Cash Basis		Average		Interest		Cash Basis
	Recorded		Income		Interest		Recorded		Income		Interest
	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance for loan losses recorded:
Residential real estate:
First mortgage	$	57	$	1	$	1	$	88	$	—	$	—
Commercial real estate:
Retail		—		—		—		1,020		—		—
Hotels/Single-room occupancy hotels		—		—		—		17,914		—		—
Other		—		—		—		136		—		—
Construction		8,340		78		65		30,207		138		124
Commercial lines of credit:
Private banking		114		3		3		1,645		3		3
Subtotal		8,511		82		69		51,010		141		127
With an allowance for loan losses recorded:
Residential real estate:
First mortgage		190		1		1		277		1		1
Construction		—		—		—		10,721		107		89
Subtotal		190		1		1		10,998		108		90
Total	$	8,701	$	83	$	70	$	62,008	$	249	$	217

Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans and aging of the recorded investment in past due loans


	June 30, 2022				December 31, 2021
			Loans Past				Loans Past
			Due Over				Due Over
			90 Days Still				90 Days Still
	Nonaccrual		Accruing		Nonaccrual		Accruing
Residential real estate:
Residential first mortgage	$	42,357	$	37	$	45,439	$	39
Residential second mortgage		210		—		236		—
Commercial real estate:
Hotels/Single-room occupancy hotels		—		—		4,441		—
Construction		5,781		—		12,499		—
Total	$	48,348	$	37	$	62,615	$	39

The following tables present the aging of the recorded investment in past due loans as of June 30, 2022 and December 31, 2021 by class of loans:


					Greater
	30 - 59		60 - 89		than
	Days		Days		89 Days		Total		Loans Not
June 30, 2022	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	19,167	$	4,864	$	42,394	$	66,425	$	1,428,767	$	1,495,192
Residential second mortgage		—		—		210		210		11,450		11,660
Commercial real estate:
Retail		—		—		—		—		26,098		26,098
Multifamily		—		—		—		—		98,327		98,327
Office		—		—		—		—		20,208		20,208
Hotels/ Single-room occupancy hotels		—		—		—		—		15,526		15,526
Industrial		—		—		—		—		11,463		11,463
Other		—		—		—		—		42,872		42,872
Construction		—		—		5,781		5,781		49,369		55,150
Commercial lines of credit:
Private banking		—		—		—		—		112		112
C&I lending		—		—		—		—		1,306		1,306
Other consumer		—		—		—		—		218		218
Total	$	19,167	$	4,864	$	48,385	$	72,416	$	1,705,716	$	1,778,132


					Greater
	30 - 59		60 - 89		than
	Days		Days		89 Days		Total		Loans Not
December 31, 2021	Past Due		Past Due		Past Due		Past Due		Past Due		Total
Residential real estate:
Residential first mortgage	$	24,044	$	3,425	$	45,478	$	72,947	$	1,617,509	$	1,690,456
Residential second mortgage		107		—		236		343		13,432		13,775
Commercial real estate:
Retail		—		—		—		—		19,574		19,574
Multifamily		—		—		—		—		96,960		96,960
Office		—		—		—		—		12,382		12,382
Hotels/Single-room occupancy hotels		—		—		4,441		4,441		9,780		14,221
Industrial		—		—		—		—		7,320		7,320
Other		—		—		—		—		50,783		50,783
Construction		10,500		—		12,499		22,999		83,760		106,759
Commercial lines of credit:
Private banking		—		—		—		—		116		116
C&I lending		—		—		—		—		247		247
Other consumer		—		—		—		—		221		221
Total	$	34,651	$	3,425	$	62,654	$	100,730	$	1,912,084	$	2,012,814

Schedule of risk rating of loans by class of loans

At June 30, 2022 and December 31, 2021, the risk rating of loans by class of loans was as follows:


			Special
June 30, 2022	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,452,798	$	—	$	42,394	$	—	$	1,495,192
Residential second mortgage		11,450		—		210		—		11,660
Commercial real estate:
Retail		26,098		—		—		—		26,098
Multifamily		70,568		17,699		10,060		—		98,327
Office		18,298		1,910		—		—		20,208
Hotels/ Single-room occupancy hotels		8,105		5,864		1,557		—		15,526
Industrial		9,998		1,465		—		—		11,463
Other		36,112		6,760		—		—		42,872
Construction		37,973		—		17,177		—		55,150
Commercial lines of credit:
Private banking		112		—		—		—		112
C&I lending		1,306		—		—		—		1,306
Other consumer		218		—		—		—		218
Total	$	1,673,036	$	33,698	$	71,398	$	—	$	1,778,132


			Special
December 31, 2021	Pass		Mention		Substandard		Doubtful		Total
Residential real estate:
Residential first mortgage	$	1,644,974	$	—	$	45,249	$	233	$	1,690,456
Residential second mortgage		13,539		—		236		—		13,775
Commercial real estate:
Retail		18,846		728		—		—		19,574
Multifamily		75,543		8,104		13,313		—		96,960
Office		10,413		—		1,969		—		12,382
Hotels/ Single-room occupancy hotels		8,205		—		6,016		—		14,221
Industrial		7,320		—		—		—		7,320
Other		48,996		1,692		95		—		50,783
Construction		67,254		17,226		16,348		5,931		106,759
Commercial lines of credit:
Private banking		116		—		—		—		116
C&I lending		236		11		—		—		247
Other consumer		221		—		—		—		221
Total	$	1,895,663	$	27,761	$	83,226	$	6,164	$	2,012,814

Mortgage Servicing Rights, net (Tables)

6 Months Ended

Jun. 30, 2022

Mortgage Servicing Rights, net

Schedule of principal balance of mortgage loans serviced for others


	June 30,		December 31,
	2022		2021
Residential real estate mortgage loan portfolios serviced for:
FNMA	$	117,421	$	124,764
FHLB		36,815		40,209
Private investors		89,648		142,810
Total	$	243,884	$	307,783

Schedule of activity for mortgage servicing rights and related valuation allowance


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Mortgage servicing rights:
Beginning of period	$	3,088	$	5,855	$	3,332	$	7,853
Additions		2		25		11		99
Amortization		(548)		(1,680)		(801)		(3,752)
End of period		2,542		4,200		2,542		4,200

Valuation allowance at beginning of period		200		1,229		610		2,165
Additions (recoveries)		(111)		(261)		(521)		(1,197)
Valuation allowance at end of period		89		968		89		968

Mortgage servicing rights, net	$	2,453	$	3,232	$	2,453	$	3,232

FHLB Borrowings (Tables)

6 Months Ended

Jun. 30, 2022

FHLB Borrowings

Schedule of FHLB borrowings

FHLB borrowings at June 30, 2022 and December 31, 2021 consist of the following:


	June 30,				December 31,
	2022		Interest Rates		2021		Interest Rates
Long-term fixed rate advances	$	50,000	1.96	%	$	150,000	0.43% - 1.96	%

Subordinated Notes, net (Tables)

6 Months Ended

Jun. 30, 2022

Subordinated Notes, net

Schedule of subordinated notes


	June 30,		December 31,
	2022		2021
Subordinated notes	$	65,000	$	65,000
Unamortized note premium		308		343
Total	$	65,308	$	65,343

Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Stock-based Compensation

Summary of the company's stock option activity


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term	Value
				(Years)
Outstanding at January 1, 2022	367,767	$	5.41	8.13	$	525
Granted	—
Exercised	—
Forfeited/expired	(18,222)		9.67
Outstanding at June 30, 2022	349,545	$	5.19	7.68	$	510
Exercisable at June 30, 2022	344,506	$	5.14	7.69	$	510

Summary of the company's restricted stock awards activity


		Weighted Average
	Number	Grant Date
	of Shares	Fair Value
Nonvested at January 1, 2022	293,637	$	5.81
Granted	230,427		6.57
Vested	(101,342)		6.23
Forfeited	(4,397)		6.94
Nonvested at June 30, 2022	418,325	$	6.12

Regulatory Capital Requirements (Tables)

6 Months Ended

Jun. 30, 2022

Regulatory Capital Requirements

Schedule of actual and minimum required capital amounts and ratios

the Company’s consolidated and the Bank’s actual and minimum required capital amounts and ratios at June 30, 2022 and December 31, 2021, applying the 100% risk weight to Advantage Loan Program loans:


	Company at December 31,
	2021		2020		2019		2018		2017
Total adjusted capital to risk-weighted assets	21.24	%	16.51	%	14.58	%	14.82	%	13.49	%
Tier 1 (core) capital to risk-weighted assets	17.34	%	12.65	%	11.56	%	11.77	%	10.33	%
Common Equity Tier 1 (CET1)	17.34	%	12.65	%	11.56	%	11.77	%	10.33	%
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	11.47	%	8.08	%	10.11	%	10.42	%	9.83	%


	Bank at December 31,
	2021		2020		2019		2018		2017
Total adjusted capital to risk-weighted assets	20.55	%	15.74	%	12.08	%	11.43	%	10.06	%
Tier 1 (core) capital to risk-weighted assets	19.28	%	14.47	%	11.32	%	10.66	%	9.12	%
Common Equity Tier 1 (CET1)	19.28	%	14.47	%	11.32	%	10.66	%	9.12	%
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	12.77	%	9.20	%	9.90	%	9.44	%	8.68	%


	Company at December 31,
	2021		2020		2019		2018		2017
Total adjusted capital to risk-weighted assets	29.02	%	22.58	%	21.49	%	21.98	%	20.28	%
Tier 1 (core) capital to risk-weighted assets	24.08	%	17.68	%	17.04	%	17.45	%	15.53	%
Common Equity Tier 1 (CET1)	24.08	%	17.68	%	17.04	%	17.45	%	15.53	%
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	11.47	%	8.08	%	10.11	%	10.42	%	9.83	%


	Bank at December 31,
	2021		2020		2019		2018		2017
Total adjusted capital to risk-weighted assets	28.07	%	21.56	%	17.82	%	16.94	%	14.76	%
Tier 1 (core) capital to risk-weighted assets	26.79	%	20.27	%	16.70	%	15.80	%	13.71	%
Common Equity Tier 1 (CET1)	26.79	%	20.27	%	16.70	%	15.80	%	13.71	%
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	12.77	%	9.20	%	9.90	%	9.44	%	8.68	%

Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Income (Loss) Per Share

Schedule of computation of income (loss) per share, basic and diluted


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Numerator:
Net income (loss)	$	(2,197)	$	3,452	$	3,063	$	5,777

Denominator:
Weighted average common shares outstanding, basic		50,386,856		50,009,053		50,289,612		49,930,563
Weighted average effect of potentially dilutive common shares:
Stock options		—		41,055		112,422		45,423
Restricted stock		—		10,667		94,453		11,267
Weighted average common shares outstanding, diluted		50,386,856		50,060,775		50,496,487		49,987,253

Income (loss) per share, basic and diluted	$	(0.04)	$	0.07	$	0.06	$	0.12

Schedule of anti-dilutive shares that were excluded from the computation of weighted average diluted shares outstanding


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2022	2021	2022	2021
Stock options	344,506	67,767	49,545	71,325
Restricted stock	418,325	241,732	59,074	153,190
Total	762,831	309,499	108,619	224,515

Fair Values of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Values of Financial Instruments

Schedule of assets measured at fair value on a recurring basis categorized by level of inputs


			Fair Value Measurements at
			June 30, 2022
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury and Agency securities	$	181,188	$	93,500	$	87,688	$	—
Mortgage-backed securities		40,583		—		40,583		—
Collateralized mortgage obligations		155,568		—		155,568		—
Collateralized debt obligations		153		—		—		153
Equity securities		4,571		4,571		—		—


			Fair Value Measurements at
			December 31, 2021
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Available for sale debt securities:
U.S. Treasury and Agency securities	$	122,168	$	48,827	$	73,341	$	—
Mortgage-backed securities		49,437		—		49,437		—
Collateralized mortgage obligations		136,849		—		136,849		—
Collateralized debt obligations		203		—		—		203
Equity securities		4,976		4,976		—		—

Summary of reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs


	Fair Value Measurements Using Significant
	Unobservable Inputs (Level 3)
	Collateralized Debt Obligations
	Six Months Ended June 30,
	2022		2021
Balance of recurring Level 3 assets at beginning of period	$	203	$	187
Total gains or losses (realized/unrealized):
Included in income-realized		—		—
Included in other comprehensive income (loss)		3		4
Principal maturities/settlements		(53)		(1)
Sales		—		—
Transfers in and/or out of Level 3		—		—
Balance of recurring Level 3 assets at end of period	$	153	$	190

Schedule of assets measured at fair value on a nonrecurring basis categorized by level of inputs

Fair Value Measurements at June 30, 2022

Quoted Prices in

Significant

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Assets

Inputs

Fair Value

(Level 1)

(Level 2)

(Level 3)

Mortgage servicing rights

926

—

926


	Fair Value Measurements at December 31, 2021
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans:
Residential real estate	$	86	$	—	$	—	$	86
Commercial real estate loans held for sale		53,628		—		53,628		—
Mortgage servicing rights		2,052		—		—		2,052

Schedule of quantitative information about nonrecurring Level 3 fair value measurements


	Quantitative Information about Level 3 Fair Value Measurements at June 30, 2022
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Mortgage servicing rights	$	926	Discounted cash flow	Discount rate	9.5% - 12.0% (11.9%)
				Prepayment speed	7.8% - 28% (19.0%)
				Default rate	0.1% - 0.2% (0.2%)

(1)	The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2021
					Range
	Fair Value		Valuation Technique	Unobservable Inputs	(Weighted Average)⁽¹⁾
Impaired loans:
Residential real estate	$	86	Sales comparison approach	Adjustments for differences between the comparable sales	N/A (15%)
Mortgage servicing rights	$	2,052	Discounted cash flow	Discount rate	9.5% - 12.0% (11.0%)
				Prepayment speed	10.5% - 37.1% (19.7%)
				Default rate	0.1% - 0.2% (0.2%)

(1)	The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment.

Schedule of carrying amounts and estimated fair values of financial instruments not carried at fair value


	Fair Value Measurements at June 30, 2022
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	285,165	$	285,165	$	285,165	$	—	$	—
Interest-bearing time deposits with other banks		1,183		1,183		1,183		—		—
Loans held for sale		8,964		9,398		—		9,398		—
Loans, net		1,726,366		1,683,258		—		—		1,683,258

Financial Liabilities
Time deposits		669,581		673,210		—		673,210		—
Federal Home Loan Bank borrowings		50,000		49,050		—		49,050		—
Subordinated notes, net		65,308		65,037		—		65,037		—


	Fair Value Measurements at December 31, 2021
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	411,676	$	411,676	$	411,676	$	—	$	—
Interest-bearing time deposits with other banks		1,183		1,183		1,183		—		—
Loans held for sale		11,359		11,809		—		11,809		—
Loans, net⁽¹⁾		1,956,180		2,025,409		—		—		2,025,409

Financial Liabilities
Time deposits		891,820		894,049		—		894,049		—
Federal Home Loan Bank borrowings		150,000		152,560		—		152,560		—
Subordinated notes, net		65,343		65,073		—		65,073		—

(1)Excludes impaired loans measured at fair value on a nonrecurring basis at December 31, 2021.

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies

Summary of total amount of unfunded commitments to extend credit and standby letters of credit outstanding


	June 30,		December 31,
	2022		2021
Commitments to make loans	$	2,802	$	23,610
Unused lines of credit		27,300		45,805
Standby letters of credit		24		24

Schedule of Advantage Loan Program loans to be repurchased by date range


		Outstanding
		Principal Balance at
Repurchase Date Range	June 30, 2022
Present – February 28, 2023	$	11,472
Present – May 21, 2023		11,784
Present – July 22, 2023		23,071
July 25, 2022 – July 25, 2023		14,475
	$	60,802

Schedule of activity in the mortgage repurchase liability


	Six Months Ended
	June 30,
	2022		2021
Balance, beginning of period	$	2,954	$	9,699
Net recovery		(525)		(665)
Loss on loan repurchases		(622)		(4,742)
Balance, end of the period	$	1,807	$	4,292

Nature of Operations and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2022 item segment
Nature of Operations and Basis of Presentation
Number of branches	28
Number of reportable segments \| segment	1
San Francisco and Los Angeles, California
Nature of Operations and Basis of Presentation
Number of branches	26

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Concentration of Credit Risk
Loans Receivable	$ 1,778,132	$ 2,012,814
Loans held for sale	8,964	64,987
Nonaccrual loans held for sale	3,999	18,026
Residential real estate
Concentration of Credit Risk
Loans Receivable	$ 1,506,852	1,704,231
Nonaccrual loans held for sale		$ 8,671
Residential real estate loans \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk	85.00%	83.00%
California \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk	84.00%	85.00%
Advantage loan program \| Loans receivables \| Residential real estate
Concentration of Credit Risk
Concentration of credit risk	66.00%	69.00%
Loans Receivable	$ 992,477	$ 1,185,458
Loans held for sale	7,313	11,359
Nonaccrual loans held for sale	$ 3,999	$ 8,671

Investment Securities - Amortized Cost and Fair Value Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Available for sale:
Available for sale, Amortized Cost	$ 396,306	$ 309,903
Available for sale, Gross Unrealized Gain	313	720
Available for sale, Gross Unrealized Loss	(19,127)	(1,966)
Investment securities available for sale, at fair value	377,492	$ 308,657
Carrying value of debt securities held of any single issuer in excess of 10% of shareholders equity	$ 0
Threshold percentage of total shareholders' equity above which securities of any single issuer exceed	10.00%	10.00%
Securities pledged as collateral on FHLB borrowings	$ 480,276	$ 557,410
Collateralized mortgage obligations \| US Government Corporations and Agencies Securities
Available for sale:
Investment securities available for sale, at fair value	457	529
Debt securities
Available for sale:
Securities pledged as collateral on FHLB borrowings	118,773
U.S. Treasury and Agency securities
Available for sale:
Available for sale, Amortized Cost	186,002	122,291
Available for sale, Gross Unrealized Gain	40	106
Available for sale, Gross Unrealized Loss	(4,854)	(229)
Investment securities available for sale, at fair value	181,188	122,168
Mortgage-backed securities
Available for sale:
Available for sale, Amortized Cost	44,755	49,739
Available for sale, Gross Unrealized Gain		84
Available for sale, Gross Unrealized Loss	(4,172)	(386)
Investment securities available for sale, at fair value	40,583	49,437
Collateralized mortgage obligations
Available for sale:
Available for sale, Amortized Cost	165,391	137,662
Available for sale, Gross Unrealized Gain	273	530
Available for sale, Gross Unrealized Loss	(10,096)	(1,343)
Investment securities available for sale, at fair value	155,568	136,849
Collateralized debt obligations
Available for sale:
Available for sale, Amortized Cost	158	211
Available for sale, Gross Unrealized Loss	(5)	(8)
Investment securities available for sale, at fair value	$ 153	$ 203

Investment Securities - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available for sale, Amortized Cost
Available for sale, Amortized Cost	$ 396,306	$ 309,903
Available for sale, Fair Value
Available for sale, Fair Value	377,492	308,657
U.S. Treasury and Agency securities
Available for sale, Amortized Cost
Due less than one year	50,085
Due after one year through five years	135,917
Available for sale, Amortized Cost	186,002	122,291
Available for sale, Fair Value
Due less than one year	50,009
Due after one year through five years	131,179
Available for sale, Fair Value	181,188	122,168
Mortgage-backed securities
Available for sale, Amortized Cost
Available for sale, Amortized Cost	44,755	49,739
Available for sale, Fair Value
Available for sale, Fair Value	40,583	49,437
Collateralized mortgage obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	165,391	137,662
Available for sale, Fair Value
Available for sale, Fair Value	155,568	136,849
Collateralized debt obligations
Available for sale, Amortized Cost
Available for sale, Amortized Cost	158	211
Available for sale, Fair Value
Available for sale, Fair Value	$ 153	$ 203

Investment Securities - Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) security	Dec. 31, 2021 USD ($)
Fair Value
Less than 12 Months, Fair value	$ 280,480	$ 144,097
12 Months or More, Fair Value	7,234	11,345
Available for sale, Continuous unrealized loss position, Fair Value	287,714	155,442
Unrealized Losses
Less than 12 Months, Unrealized Losses	(17,746)	(1,607)
12 Months or More, Unrealized Losses	(1,381)	(359)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (19,127)	(1,966)
Number of debt securities in portfolio \| security	33
Number of debt securities in an unrealized loss position \| security	27
U.S. Treasury and Agency securities
Fair Value
Less than 12 Months, Fair value	$ 133,148	49,865
Available for sale, Continuous unrealized loss position, Fair Value	133,148	49,865
Unrealized Losses
Less than 12 Months, Unrealized Losses	(4,854)	(229)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(4,854)	(229)
Mortgage-backed securities
Fair Value
Less than 12 Months, Fair value	33,502	7,878
12 Months or More, Fair Value	7,081	8,729
Available for sale, Continuous unrealized loss position, Fair Value	40,583	16,607
Unrealized Losses
Less than 12 Months, Unrealized Losses	(2,796)	(36)
12 Months or More, Unrealized Losses	(1,376)	(350)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(4,172)	(386)
Collateralized mortgage obligations
Fair Value
Less than 12 Months, Fair value	113,830	86,354
12 Months or More, Fair Value		2,413
Available for sale, Continuous unrealized loss position, Fair Value	113,830	88,767
Unrealized Losses
Less than 12 Months, Unrealized Losses	(10,096)	(1,342)
12 Months or More, Unrealized Losses		(1)
Available for sale, Continuous unrealized loss position, Unrealized Losses	(10,096)	(1,343)
Collateralized debt obligations
Fair Value
12 Months or More, Fair Value	153	203
Available for sale, Continuous unrealized loss position, Fair Value	153	203
Unrealized Losses
12 Months or More, Unrealized Losses	(5)	(8)
Available for sale, Continuous unrealized loss position, Unrealized Losses	$ (5)	$ (8)

Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Equity Securities
Fair value of equity securities	$ 4,817		$ 4,817		$ 5,222
Equity securities with readily determinable fair values	4,571		4,571		4,976
Equity securities with readily determinable fair values
Net gains (losses) recorded during the period on equity securities	(170)	$ 15	(406)	$ (75)
Unrealized gains (losses) recorded during the period on equity securities held at the reporting date	(170)	$ 15	(406)	$ (75)
Level 3
Equity Securities
Investment in equity securities without readily determinable fair value	$ 246		$ 246		$ 246

Loans - Major Categories of Loans Held for Sale (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 28, 2022	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Major categories of loans
Total loans held for sale		$ 8,964	$ 8,964	$ 64,987
Nonaccrual loans held for sale		3,999	3,999	18,026
Modified troubled debt restructuring		8,427	8,427	18,416
Charge offs to allowance for loan losses		197	197
Residential real estate
Major categories of loans
Total loans held for sale		7,313	7,313	11,359
Nonaccrual loans held for sale				8,671
Charge offs to allowance for loan losses		197	197
Nonaccrual residential real estate loans
Major categories of loans
Modified troubled debt restructuring				2,059
Commercial real estate
Major categories of loans
Total loans held for sale		$ 1,651	$ 1,651	53,628
Nonaccrual loans held for sale				$ 9,355
Proceeds from sale of loans held for sale	$ 49,610
Loans carrying value on date of sale	$ 49,455

Loans - Major Categories of Loans Held for Investment and the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Major categories of loans held for investment and the allowance for loan losses
Total ending loans balance	$ 1,778,132		$ 2,012,814
Less: allowance for loan losses	(51,766)	$ (52,455)	(56,548)	$ (70,669)	$ (71,871)	$ (72,387)
Loans, net	1,726,366		1,956,266
Carrying value of loans pledged as collateral on FHLB borrowings	480,276		557,410
Residential real estate
Major categories of loans held for investment and the allowance for loan losses
Total ending loans balance	1,506,852		1,704,231
Less: allowance for loan losses	(29,982)	(29,911)	(32,202)	(33,064)	(33,056)	(32,366)
Loans, net	177,704		237,049
Commercial real estate
Major categories of loans held for investment and the allowance for loan losses
Total ending loans balance	214,494		201,240
Less: allowance for loan losses	(15,035)	(13,709)	(12,608)	(22,491)	(22,763)	(21,942)
Construction
Major categories of loans held for investment and the allowance for loan losses
Total ending loans balance	55,150		106,759
Less: allowance for loan losses	(6,708)	(8,829)	(11,730)	(15,056)	(15,966)	(17,988)
Commercial lines of credit
Major categories of loans held for investment and the allowance for loan losses
Total ending loans balance	1,418		363
Less: allowance for loan losses	(36)	$ (6)	(8)	$ (58)	$ (86)	$ (91)
Other consumer
Major categories of loans held for investment and the allowance for loan losses
Total ending loans balance	218		$ 221
Less: allowance for loan losses	$ (5)

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Allowance for loan losses
Beginning balance	$ 52,455	$ 71,871	$ 56,548	$ 72,387
Provision (recovery) for loan losses	(1,109)	(1,806)	(5,398)	(2,543)
Charge offs	(197)		(197)
Recoveries	617	604	813	825
Total ending balance	51,766	70,669	51,766	70,669
Residential real estate
Allowance for loan losses
Beginning balance	29,911	33,056	32,202	32,366
Provision (recovery) for loan losses	(272)	(579)	(2,753)	(93)
Charge offs	(197)		(197)
Recoveries	540	587	730	791
Total ending balance	29,982	33,064	29,982	33,064
Commercial real estate
Allowance for loan losses
Beginning balance	13,709	22,763	12,608	21,942
Provision (recovery) for loan losses	1,251	(287)	2,347	518
Recoveries	75	15	80	31
Total ending balance	15,035	22,491	15,035	22,491
Construction
Allowance for loan losses
Beginning balance	8,829	15,966	11,730	17,988
Provision (recovery) for loan losses	(2,123)	(912)	(5,025)	(2,935)
Recoveries	2	2	3	3
Total ending balance	6,708	15,056	6,708	15,056
Commercial lines of credit
Allowance for loan losses
Beginning balance	6	86	8	91
Provision (recovery) for loan losses	30	(28)	28	(33)
Total ending balance	36	$ 58	36	$ 58
Other consumer
Allowance for loan losses
Provision (recovery) for loan losses	5		5
Total ending balance	$ 5		$ 5

Loans - Activity in the Allowance For Loan Losses by Portfolio Segment And Based On Impairment Evaluation Method (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Ending allowance balance attributable to loans:
Individually evaluated for impairment			$ 159
Collectively evaluated for impairment	$ 51,766		56,389
Total ending allowance balance	51,766	$ 52,455	56,548	$ 70,669	$ 71,871	$ 72,387
Loans:
Loans individually evaluated for impairment	8,427		19,891
Loans collectively evaluated for impairment	1,769,705		1,992,923
Total ending loans balance	1,778,132		2,012,814
Residential real estate
Ending allowance balance attributable to loans:
Individually evaluated for impairment			159
Collectively evaluated for impairment	29,982		32,043
Total ending allowance balance	29,982	29,911	32,202	33,064	33,056	32,366
Loans:
Loans individually evaluated for impairment	50		350
Loans collectively evaluated for impairment	1,506,802		1,703,881
Total ending loans balance	1,506,852		1,704,231
Commercial real estate
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	15,035		12,608
Total ending allowance balance	15,035	13,709	12,608	22,491	22,763	21,942
Loans:
Loans individually evaluated for impairment			4,441
Loans collectively evaluated for impairment	214,494		196,799
Total ending loans balance	214,494		201,240
Construction
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	6,708		11,730
Total ending allowance balance	6,708	8,829	11,730	15,056	15,966	17,988
Loans:
Loans individually evaluated for impairment	8,265		14,984
Loans collectively evaluated for impairment	46,885		91,775
Total ending loans balance	55,150		106,759
Commercial lines of credit
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	36		8
Total ending allowance balance	36	$ 6	8	$ 58	$ 86	$ 91
Loans:
Loans individually evaluated for impairment	112		116
Loans collectively evaluated for impairment	1,306		247
Total ending loans balance	1,418		363
Other consumer
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	5
Total ending allowance balance	5
Loans:
Loans collectively evaluated for impairment	218		221
Total ending loans balance	$ 218		$ 221

Loans - Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	$ 10,770		$ 10,770		$ 19,670
Total Unpaid Principal Balance	10,770		10,770		19,943
Recorded investment, with no related allowance for loan losses recorded	8,427		8,427		19,606
Total Recorded Investment	8,427		8,427		19,891
Allowance for Loan Losses					159
Average recorded investment, with no related allowance for loan losses recorded	8,488	$ 42,084	8,511	$ 51,010
Average recorded investment, with an allowance for loan losses recorded	142	11,381	190	10,998
Total Average Recorded Investment	8,630		8,701	62,008	53,465
Interest Income Recognized, with no related allowance for loan losses recorded	41	45	82	141
Interest Income Recognized, with an allowance for loan losses recorded		56	1	108
Total Interest Income Recognized	41	101	83	249
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	28	30	69	127
Cash Basis Interest Recognized, with an allowance for loan losses recorded		38	1	90
Total Cash Basis Interest Recognized	28	68	70	217
Real Estate Loan, Other
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded		136
Residential real estate \| Real estate loan, first mortgage
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	84		84		91
Unpaid principal balance, with an allowance for loan losses recorded					273
Recorded investment, with no related allowance for loan losses recorded	50		50		65
Recorded investment, with an allowance for loan losses recorded					285
Allowance for Loan Losses					159
Average recorded investment, with no related allowance for loan losses recorded	55	86	57	88
Average recorded investment, with an allowance for loan losses recorded	142	277	190	277
Interest Income Recognized, with no related allowance for loan losses recorded	1		1
Interest Income Recognized, with an allowance for loan losses recorded		1	1	1
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	1		1
Cash Basis Interest Recognized, with an allowance for loan losses recorded		1	1	1
Commercial real estate \| Real estate loan, Retail
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	231		231
Average recorded investment, with no related allowance for loan losses recorded		1,013		1,020
Commercial real estate \| Hotels/Single-room occupancy hotels
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded					4,459
Recorded investment, with no related allowance for loan losses recorded					4,441
Average recorded investment, with no related allowance for loan losses recorded		17,926		17,914
Commercial real estate \| Real Estate Loan, Other
Impaired loans by class of loans
Average recorded investment, with no related allowance for loan losses recorded				136
Construction
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	10,343		10,343		15,004
Recorded investment, with no related allowance for loan losses recorded	8,265		8,265		14,984
Average recorded investment, with no related allowance for loan losses recorded	8,320	22,801	8,340	30,207
Average recorded investment, with an allowance for loan losses recorded		11,104		10,721
Interest Income Recognized, with no related allowance for loan losses recorded	39	43	78	138
Interest Income Recognized, with an allowance for loan losses recorded		55		107
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	26	29	65	124
Cash Basis Interest Recognized, with an allowance for loan losses recorded		37		89
Commercial lines of credit \| Private banking
Impaired loans by class of loans
Unpaid principal balance, with no related allowance for loan losses recorded	112		112		116
Recorded investment, with no related allowance for loan losses recorded	112		112		$ 116
Average recorded investment, with no related allowance for loan losses recorded	113	122	114	1,645
Interest Income Recognized, with no related allowance for loan losses recorded	1	2	3	3
Cash Basis Interest Recognized, with no related allowance for loan losses recorded	$ 1	$ 1	$ 3	$ 3

Loans - Investment in Nonaccrual and Loans Past Due Still Accruing by Class of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	$ 48,348	$ 62,615
Loans Past Due Over 90 Days Still Accruing	37	39
Total	1,778,132	2,012,814
Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,705,716	1,912,084
Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	72,416	100,730
30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	19,167	34,651
60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	4,864	3,425
Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	48,385	62,654
Real estate loan, Other
Investment in nonaccrual and loans past due still accruing by class of loans
Total	42,872
Real estate loan, Other \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	42,872
Residential real estate
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,506,852	1,704,231
Residential real estate \| Real estate loan, first mortgage
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	42,357	45,439
Loans Past Due Over 90 Days Still Accruing	37	39
Total	1,495,192	1,690,456
Residential real estate \| Real estate loan, first mortgage \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,428,767	1,617,509
Residential real estate \| Real estate loan, first mortgage \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	66,425	72,947
Residential real estate \| Real estate loan, first mortgage \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	19,167	24,044
Residential real estate \| Real estate loan, first mortgage \| 60 - 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	4,864	3,425
Residential real estate \| Real estate loan, first mortgage \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	42,394	45,478
Residential real estate \| Real estate loan, second mortgage
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	210	236
Total	11,660	13,775
Residential real estate \| Real estate loan, second mortgage \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	11,450	13,432
Residential real estate \| Real estate loan, second mortgage \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	210	343
Residential real estate \| Real estate loan, second mortgage \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		107
Residential real estate \| Real estate loan, second mortgage \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	210	236
Commercial real estate
Investment in nonaccrual and loans past due still accruing by class of loans
Total	214,494	201,240
Commercial real estate \| Real estate loan, Retail
Investment in nonaccrual and loans past due still accruing by class of loans
Total	26,098	19,574
Commercial real estate \| Real estate loan, Retail \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	26,098	19,574
Commercial real estate \| Real estate loan, Multifamily
Investment in nonaccrual and loans past due still accruing by class of loans
Total	98,327	96,960
Commercial real estate \| Real estate loan, Multifamily \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	98,327	96,960
Commercial real estate \| Real estate loan, Offices
Investment in nonaccrual and loans past due still accruing by class of loans
Total	20,208	12,382
Commercial real estate \| Real estate loan, Offices \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	20,208	12,382
Commercial real estate \| Hotels/Single-room occupancy hotels
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual		4,441
Total	15,526	14,221
Commercial real estate \| Hotels/Single-room occupancy hotels \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	15,526	9,780
Commercial real estate \| Hotels/Single-room occupancy hotels \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		4,441
Commercial real estate \| Hotels/Single-room occupancy hotels \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		4,441
Commercial real estate \| Real estate loan, Industrial
Investment in nonaccrual and loans past due still accruing by class of loans
Total	11,463	7,320
Commercial real estate \| Real estate loan, Industrial \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	11,463	7,320
Commercial real estate \| Real estate loan, Other
Investment in nonaccrual and loans past due still accruing by class of loans
Total	42,872	50,783
Commercial real estate \| Real estate loan, Other \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		50,783
Construction
Investment in nonaccrual and loans past due still accruing by class of loans
Nonaccrual	5,781	12,499
Total	55,150	106,759
Construction \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	49,369	83,760
Construction \| Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	5,781	22,999
Construction \| 30 - 59 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total		10,500
Construction \| Greater than 89 Days Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	5,781	12,499
Commercial lines of credit
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,418	363
Commercial lines of credit \| Private banking
Investment in nonaccrual and loans past due still accruing by class of loans
Total	112	116
Commercial lines of credit \| Private banking \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	112	116
Commercial lines of credit \| C&I lending
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,306	247
Commercial lines of credit \| C&I lending \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	1,306	247
Other consumer
Investment in nonaccrual and loans past due still accruing by class of loans
Total	218	221
Other consumer \| Not Past Due
Investment in nonaccrual and loans past due still accruing by class of loans
Total	$ 218	$ 221

Loans - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) loan	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) loan
Troubled Debt Restructurings
Loans classified as troubled debt restructurings	$ 8,427		$ 8,427		$ 18,416
Allowance for outstanding loan losses classified as troubled debt restructurings					$ 39
Number of loans modified during the period, that were considered as TDRs	0	0	0	0
Number of TDRs subsequently defaulted \| loan			1		5
Troubled debt restructuring that defaulted within twelve months of modification		$ 0	$ 5,781	$ 0	$ 15,752
Residential real estate
Troubled Debt Restructurings
Loans secured by residential real estate properties in the process of foreclosure	$ 11,315		11,315		2,780
Mortgage loans held for sale \| Residential real estate
Troubled Debt Restructurings
Loans secured by residential real estate properties in the process of foreclosure	$ 2,755		$ 2,755		$ 2,770

Loans - Risk Rating of Loans by Class of Loans (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2021
Recorded investment in loans
Total		$ 1,778,132			$ 2,012,814
Advantage Loan Program
Recorded investment in loans
Total		169,965			171,185
Loans repurchased during the period	$ 30,380	30,380	$ 79,818	$ 167,762
Real estate loan, Other
Recorded investment in loans
Total		42,872
Pass
Recorded investment in loans
Total		1,673,036			1,895,663
Special Mention
Recorded investment in loans
Total		33,698			27,761
Substandard
Recorded investment in loans
Total		71,398			83,226
Doubtful
Recorded investment in loans
Total					6,164
Residential real estate
Recorded investment in loans
Total		1,506,852			1,704,231
Residential real estate \| Real estate loan, first mortgage
Recorded investment in loans
Total		1,495,192			1,690,456
Residential real estate \| Real estate loan, second mortgage
Recorded investment in loans
Total		11,660			13,775
Residential real estate \| Pass \| Real estate loan, first mortgage
Recorded investment in loans
Total		1,452,798			1,644,974
Residential real estate \| Pass \| Real estate loan, second mortgage
Recorded investment in loans
Total		11,450			13,539
Residential real estate \| Substandard \| Real estate loan, first mortgage
Recorded investment in loans
Total		42,394			45,249
Residential real estate \| Substandard \| Real estate loan, second mortgage
Recorded investment in loans
Total		210			236
Residential real estate \| Doubtful \| Real estate loan, first mortgage
Recorded investment in loans
Total					233
Commercial real estate
Recorded investment in loans
Total		214,494			201,240
Commercial real estate \| Real estate loan, Retail
Recorded investment in loans
Total		26,098			19,574
Commercial real estate \| Real estate loan, Multifamily
Recorded investment in loans
Total		98,327			96,960
Commercial real estate \| Real estate loan, Offices
Recorded investment in loans
Total		20,208			12,382
Commercial real estate \| Hotels/Single-room occupancy hotels
Recorded investment in loans
Total		15,526			14,221
Commercial real estate \| Real estate loan, Industrial
Recorded investment in loans
Total		11,463			7,320
Commercial real estate \| Real estate loan, Other
Recorded investment in loans
Total		42,872			50,783
Commercial real estate \| Pass \| Real estate loan, Retail
Recorded investment in loans
Total		26,098			18,846
Commercial real estate \| Pass \| Real estate loan, Multifamily
Recorded investment in loans
Total		70,568			75,543
Commercial real estate \| Pass \| Real estate loan, Offices
Recorded investment in loans
Total		18,298			10,413
Commercial real estate \| Pass \| Hotels/Single-room occupancy hotels
Recorded investment in loans
Total		8,105			8,205
Commercial real estate \| Pass \| Real estate loan, Industrial
Recorded investment in loans
Total		9,998			7,320
Commercial real estate \| Pass \| Real estate loan, Other
Recorded investment in loans
Total		36,112			48,996
Commercial real estate \| Special Mention \| Real estate loan, Retail
Recorded investment in loans
Total					728
Commercial real estate \| Special Mention \| Real estate loan, Multifamily
Recorded investment in loans
Total		17,699			8,104
Commercial real estate \| Special Mention \| Real estate loan, Offices
Recorded investment in loans
Total		1,910
Commercial real estate \| Special Mention \| Hotels/Single-room occupancy hotels
Recorded investment in loans
Total		5,864
Commercial real estate \| Special Mention \| Real estate loan, Industrial
Recorded investment in loans
Total		1,465
Commercial real estate \| Special Mention \| Real estate loan, Other
Recorded investment in loans
Total		6,760			1,692
Commercial real estate \| Substandard \| Real estate loan, Multifamily
Recorded investment in loans
Total		10,060			13,313
Commercial real estate \| Substandard \| Real estate loan, Offices
Recorded investment in loans
Total					1,969
Commercial real estate \| Substandard \| Hotels/Single-room occupancy hotels
Recorded investment in loans
Total		1,557			6,016
Commercial real estate \| Substandard \| Real estate loan, Other
Recorded investment in loans
Total					95
Construction
Recorded investment in loans
Total		55,150			106,759
Construction \| Pass
Recorded investment in loans
Total		37,973			67,254
Construction \| Special Mention
Recorded investment in loans
Total					17,226
Construction \| Substandard
Recorded investment in loans
Total		17,177			16,348
Construction \| Doubtful
Recorded investment in loans
Total					5,931
Commercial lines of credit
Recorded investment in loans
Total		1,418			363
Commercial lines of credit \| Private banking
Recorded investment in loans
Total		112			116
Commercial lines of credit \| C&I lending
Recorded investment in loans
Total		1,306			247
Commercial lines of credit \| Pass \| Private banking
Recorded investment in loans
Total		112			116
Commercial lines of credit \| Pass \| C&I lending
Recorded investment in loans
Total		1,306			236
Commercial lines of credit \| Special Mention \| C&I lending
Recorded investment in loans
Total					11
Other consumer
Recorded investment in loans
Total		218			221
Other consumer \| Pass
Recorded investment in loans
Total		$ 218			$ 221

Mortgage Servicing Rights, net - Principle Balance by Category (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Mortgage Servicing Rights
Total	$ 243,884	$ 307,783
Custodial escrow balances maintained on serviced loans	693	5,501
FNMA
Mortgage Servicing Rights
Total	117,421	124,764
FHLB
Mortgage Servicing Rights
Total	36,815	40,209
Private investors
Mortgage Servicing Rights
Total	$ 89,648	$ 142,810

Mortgage Servicing Rights net - Activity and Related Valuation Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Mortgage servicing rights activity
Mortgage servicing rights Beginning of period	$ 3,088	$ 5,855	$ 3,332	$ 7,853
Additions	2	25	11	99
Amortization	(548)	(1,680)	(801)	(3,752)
Mortgage servicing rights End of period	2,542	4,200	2,542	4,200
Valuation allowance at beginning of period	200	1,229	610	2,165
Additions (recoveries)	(111)	(261)	(521)	(1,197)
Valuation allowance at end of period	89	968	89	968
Mortgage servicing rights, net	2,453	3,232	2,453	3,232	$ 2,722
Servicing fee income (loss), net of amortization of servicing rights and changes in valuation allowance	$ (177)	$ (908)	$ 266	$ (1,338)

Mortgage Servicing Rights, net - Valuation techniques (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Mortgage Servicing Rights
Fair value of mortgage servicing rights	$ 2,899	$ 2,916
Prepayment speed range	11.90%	17.60%
Weighted average life of the mortgage servicing right	73 months	52 months
Weighted average default rate	0.20%	0.20%
Minimum
Mortgage Servicing Rights
Discount rate range	9.50%	9.50%
Maximum
Mortgage Servicing Rights
Discount rate range	12.00%	12.00%

Deposits - Time deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Deposits
Interest-bearing time deposits	$ 669,581	$ 891,820
Brokered time deposits	0	20,109
Time deposits that meet or exceed the FDIC insurance limit of $250	$ 183,767	$ 244,868

FHLB Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Federal Home Loan Bank Borrowings
Long-term fixed-rate FHLB advances	$ 50,000	$ 150,000
Minimum \| Long term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)	1.96%	0.43%
Maximum \| Long term
Federal Home Loan Bank Borrowings
FHLB interest rates (as a percent)		1.96%

FHLB Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands	1 Months Ended
	May 31, 2022	Jun. 30, 2022
Federal Home Loan Bank Borrowings
Additional borrowing capacity		$ 389,260
Callable Option May, 2022
Federal Home Loan Bank Borrowings
Repayment of advance	$ 100,000

FHLB Borrowings - FHLB Overdraft Line of Credit and Letters of Credit (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
FHLB Overdraft Line of Credit and Letters of Credit
FHLB line of credit agreement maximum borrowing limit	$ 20,000
FHLB overdraft line of credit outstanding borrowings	$ 0
FHLB overdraft line of credit (as percent)	1.90%	0.43%
FHLB letter of credit	$ 9,500	$ 11,500
FHLB, agreement term	1 year
Standby letter of credit 1 expiring July, 2022
FHLB Overdraft Line of Credit and Letters of Credit
FHLB overdraft line of credit outstanding borrowings	$ 0		$ 0
FHLB letter of credit		$ 11,500
FHLB letter of credit term		16 months
Standby letter of credit 2 expiring July, 2022
FHLB Overdraft Line of Credit and Letters of Credit
FHLB letter of credit		$ 7,500
Standby letters of credit expiring July 2024
FHLB Overdraft Line of Credit and Letters of Credit
FHLB letter of credit	$ 2,000	$ 4,000
FHLB letter of credit term		36 months

FHLB Borrowings - Other Borrowings (Details) - Other Banks - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Other Borrowings
Maximum borrowing capacity	$ 80,000	$ 80,000
Outstanding balance	$ 0		$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Subordinated Notes, net (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
Subordinated Notes, net (Details) - USD ($) $ in Thousands	Apr. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Subordinated Notes
Total		$ 65,308		$ 65,308		$ 65,343
Interest expense		1,090	$ 1,005	2,054	$ 2,185
Subordinated notes
Subordinated Notes
Subordinated notes		65,000		65,000		65,000
Unamortized note premium		308		308		343
Total		65,308		$ 65,308		$ 65,343
Interest rate (as a percent)	7.00%			6.86%		5.94%
Interest expense		$ 1,090	$ 1,005	$ 2,054
Redemption price percentage of outstanding principal amount				100.00%
LIBOR \| Subordinated notes
Subordinated Notes
Variable interest rate on subordinate notes (in percent)	5.82%
Interest expense					$ 2,185

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended	6 Months Ended
	Apr. 30, 2022	May 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Shareholders' Equity
Issuance of shares of common stock to defined contribution retirement plan (Note 9)			$ 1,138
Issue price per share				$ 4.50
Common stock, shares authorized			500,000,000		500,000,000
Proceeds from issuance of shares of common stock				$ 1,350
Common stock, par value (in dollars per share)			$ 0		$ 0
Common stock
Shareholders' Equity
Issuance of shares of common stock to defined contribution retirement plan (Note 9) (in shares)			160,978
Issuance of shares of common stock to defined contribution retirement plan (Note 9)			$ 1,138
Common stock \| Annual matching contribution
Shareholders' Equity
Issuance of shares of common stock to defined contribution retirement plan (Note 9) (in shares)	160,978
Issuance of shares of common stock to defined contribution retirement plan (Note 9)	$ 1,138
Issue price per share	$ 7.07
Common stock \| Chief Executive Officer
Shareholders' Equity
Issue price per share		$ 4.50
Common stock, shares authorized		300,000
Proceeds from issuance of shares of common stock		$ 1,350

Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Stock options
Stock-based Compensation
Maximum term of stock awards granted			10 years
Restricted Stock
Stock-based Compensation
Number of share instruments issued			230,427	227,702
Restricted Stock \| Key employee
Stock-based Compensation
Number of share instruments issued			185,427
Restricted Stock \| Non-employee directors Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued			45,000
2017 Omnibus Equity Incentive Plan
Stock-based Compensation
Number of shares authorized	4,237,100		4,237,100
2017 Omnibus Equity Incentive Plan \| Stock options
Number of Shares
Outstanding at January 1, 2022			367,767
Forfeited/expired			(18,222)
Outstanding at March 31, 2022	349,545		349,545		367,767
Exercisable at December 31, 2021	344,506		344,506
Weighted Average Exercise Price
Outstanding at January 1, 2022			$ 5.41
Forfeited/expired			9.67
Outstanding at March 31, 2022	$ 5.19		5.19		$ 5.41
Exercisable at December 31, 2021	$ 5.14		$ 5.14
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (Years)			7 years 8 months 4 days		8 years 1 month 17 days
Weighted Average Remaining Contractual Term, Exercisable			7 years 8 months 8 days
Aggregate Intrinsic Value	$ 510		$ 510		$ 525
Aggregate Intrinsic Value Exercisable	510		510
Stock-based compensation costs recognized, net	2	$ 46	(11)	$ 103
Total unrecognized compensation cost - stock options	6		$ 6
2017 Omnibus Equity Incentive Plan \| Stock options \| Maximum
Weighted Average Remaining Contractual Term
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period			1 year
2017 Omnibus Equity Incentive Plan \| Stock Options granted prior to 2020
Stock-based Compensation
Percentage of awards vesting			50.00%
2017 Omnibus Equity Incentive Plan \| Stock Options granted prior to 2020 \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting			50.00%
2017 Omnibus Equity Incentive Plan \| Stock Options granted prior to 2020 \| Awards vesting at the end of the fourth year
Stock-based Compensation
Percentage of awards vesting			50.00%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020
Stock-based Compensation
Vesting period			3 years
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting			33.33%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting at the end of the second year
Stock-based Compensation
Percentage of awards vesting			33.33%
2017 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020 \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting			33.33%
2017 Omnibus Equity Incentive Plan \| Restricted Stock
Weighted Average Remaining Contractual Term
Shares withheld in order to pay employee tax liabilities on vested awards			29,728	8,536
Stock-based compensation costs recognized	237	$ 147	$ 396	$ 195
Employee tax liability associated with restricted stock awards the vested during the period			196	46
Total unrecognized compensation cost - restricted stock awards	$ 2,183		$ 2,183
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period			2 years 4 months 9 days
Number of Shares
Nonvested, Opening balance			293,637
Granted			230,427
Vested			(101,342)
Forfeited			(4,397)
Nonvested, Ending balance	418,325		418,325		293,637
Weighted Average Grant Date Fair Value
Nonvested, Opening balance			$ 5.81
Granted			6.57
Vested			6.23
Forfeited			6.94
Nonvested, Ending balance	$ 6.12		$ 6.12		$ 5.81
Grant Date Fair Value of Restricted Stock that Vested During the year
Fair value of restricted stock awards vested			$ 655	$ 173
2020 Omnibus Equity Incentive Plan
Stock-based Compensation
Number of shares authorized	3,979,661		3,979,661
2020 Omnibus Equity Incentive Plan \| Stock Options granted starting in 2020
Stock-based Compensation
Number of stock options granted			0	0
2020 Omnibus Equity Incentive Plan \| Restricted Stock
Stock-based Compensation
Vesting period			3 years
2020 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting on the first anniversary of the grant date
Stock-based Compensation
Percentage of awards vesting			33.33%
2020 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting at the end of the second year
Stock-based Compensation
Percentage of awards vesting			33.33%
2020 Omnibus Equity Incentive Plan \| Restricted Stock \| Awards vesting at the end of the third year
Stock-based Compensation
Percentage of awards vesting			33.33%
2020 Omnibus Equity Incentive Plan \| Restricted Stock \| Key employee
Stock-based Compensation
Number of share instruments issued				182,702
2020 Omnibus Equity Incentive Plan \| Restricted Stock \| Non-employee directors Restricted Stock Awards
Stock-based Compensation
Number of share instruments issued				45,000

Regulatory Capital Requirements - Actual and minimum required capital amounts and ratios and Dividend Restrictions (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2016
Regulatory Capital Requirements
Capital conservation buffer (as a percent)	2.50%				2.50%	1.875%	1.25%	0.625%
Capital conservation buffer increase (as a percent)	0.625%
Risk Weighted Percentage	100.00%	100.00%
Required Common Equity capital adequacy with capital conservation buffer	0.070
Required Tier 1 capital adequacy with capital conservation buffer	0.085
Required Total capital adequacy with capital conservation buffer	0.105
Dividend Restrictions
Minimum percentage of assets be maintained as per Qualified Thrift Lender ("QTL") test	65.00%
Risk-weighting 100% Scenario \| Advantage Loan Program
Regulatory Capital Requirements
Risk Weighted Percentage	100.00%
Total adjusted capital to risk-weighted assets, Amount
Actual	$ 408,946	$ 421,732
For Capital Adequacy Purposes	$ 132,448	$ 158,851
Total adjusted capital to risk-weighted assets, Ratio
Actual	0.2470	0.2124
For Capital Adequacy Purposes	0.0800	0.0800
Tier 1 (core) capital to risk-weighted assets, Amount
Actual	$ 348,679	$ 344,247
For Capital Adequacy Purposes	$ 99,336	$ 119,138
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual	0.2106	0.1734
For Capital Adequacy Purposes	0.0600	0.0600
Common Equity Tier 1 (CET1), Amount
Actual	$ 348,679	$ 344,247
For Capital Adequacy Purposes	$ 74,502	$ 89,354
Common Equity Tier 1 (CET1), Ratio
Actual	0.2106	0.1734
For Capital Adequacy Purposes	0.0450	0.0450
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 348,679	$ 344,247
For Capital Adequacy Purposes	$ 108,015	$ 120,039
Tier 1 (core) capital to adjusted tangible assets, Leverage Ratio
Actual	0.1291	0.1147
For Capital Adequacy Purposes	0.0400	0.0400
Risk-weighting 50% Scenario \| Advantage Loan Program
Regulatory Capital Requirements
Risk Weighted Percentage		50.00%
Bank \| Risk-weighting 100% Scenario \| Advantage Loan Program
Total adjusted capital to risk-weighted assets, Amount
Actual	$ 411,042	$ 407,699
For Capital Adequacy Purposes	131,924	158,707
To be Well Capitalized	$ 164,905	$ 198,384
Total adjusted capital to risk-weighted assets, Ratio
Actual	0.2493	0.2055	0.1574	0.1208		0.1143	0.1006
For Capital Adequacy Purposes	0.0800	0.0800
To be Well Capitalized	0.1000	0.1000
Tier 1 (core) capital to risk-weighted assets, Amount
Actual	$ 390,044	$ 382,509
For Capital Adequacy Purposes	98,943	119,030
To be Well Capitalized	$ 131,924	$ 158,707
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual	0.2365	0.1928	0.1447	0.1132		0.1066	0.0912
For Capital Adequacy Purposes	0.0600	0.0600
To be Well Capitalized	0.0800	0.0800
Common Equity Tier 1 (CET1), Amount
Actual	$ 390,044	$ 382,509
For Capital Adequacy Purposes	74,207	89,273
To be Well Capitalized	$ 107,188	$ 128,950
Common Equity Tier 1 (CET1), Ratio
Actual	0.2365	0.1928	0.1447	0.1132		0.1066	0.0912
For Capital Adequacy Purposes	0.0450	0.0450
To be Well Capitalized	0.0650	0.0650
Tier 1 (core) capital to adjusted tangible assets, Amount
Actual	$ 390,044	$ 382,509
For Capital Adequacy Purposes	108,083	119,859
To be Well Capitalized	$ 135,104	$ 149,824
Tier 1 (core) capital to adjusted tangible assets, Leverage Ratio
Actual	0.1444	0.1277	0.0920	0.0990		0.0944	0.0868
For Capital Adequacy Purposes	0.0400	0.0400
To be Well Capitalized	0.0500	0.0500
Bank \| Risk-weighting 50% Scenario \| Advantage Loan Program
Total adjusted capital to risk-weighted assets, Ratio
Actual		0.2807	0.2156	0.1782		0.1694	0.1476
Tier 1 (core) capital to risk-weighted assets, Ratio
Actual		0.2679	0.2027	0.1670		0.1580	0.1371
Common Equity Tier 1 (CET1), Ratio
Actual		0.2679	0.2027	0.1670		0.1580	0.1371
Tier 1 (core) capital to adjusted tangible assets, Leverage Ratio
Actual		0.1277	0.0920	0.0990		0.0944	0.0868

Regulatory Capital Requirements - Actual ratios of Company and Bank (Details) - Advantage Loan Program	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Risk-weighting 100% Scenario
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total adjusted capital to risk weighted assets, Actual, Ratio	0.2470	0.2124
Tier 1 (core) capital to risk weighted assets, Actual, Ratio	0.2106	0.1734
Common Tier 1 (CET1), Actual, Ratio	0.2106	0.1734
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	0.1291	0.1147
Bank \| Risk-weighting 100% Scenario
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total adjusted capital to risk weighted assets, Actual, Ratio	0.2493	0.2055	0.1574	0.1208	0.1143	0.1006
Tier 1 (core) capital to risk weighted assets, Actual, Ratio	0.2365	0.1928	0.1447	0.1132	0.1066	0.0912
Common Tier 1 (CET1), Actual, Ratio	0.2365	0.1928	0.1447	0.1132	0.1066	0.0912
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)	0.1444	0.1277	0.0920	0.0990	0.0944	0.0868
Bank \| Risk-weighting 50% Scenario
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total adjusted capital to risk weighted assets, Actual, Ratio		0.2807	0.2156	0.1782	0.1694	0.1476
Tier 1 (core) capital to risk weighted assets, Actual, Ratio		0.2679	0.2027	0.1670	0.1580	0.1371
Common Tier 1 (CET1), Actual, Ratio		0.2679	0.2027	0.1670	0.1580	0.1371
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)		0.1277	0.0920	0.0990	0.0944	0.0868
Company \| Risk-weighting 100% Scenario
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total adjusted capital to risk weighted assets, Actual, Ratio		0.2124	0.1651	0.1458	0.1482	0.1349
Tier 1 (core) capital to risk weighted assets, Actual, Ratio		0.1734	0.1265	0.1156	0.1177	0.1033
Common Tier 1 (CET1), Actual, Ratio		0.1734	0.1265	0.1156	0.1177	0.1033
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)		0.1147	0.0808	0.1011	0.1042	0.0983
Company \| Risk-weighting 50% Scenario
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total adjusted capital to risk weighted assets, Actual, Ratio		0.2902	0.2258	0.2149	0.2198	0.2028
Tier 1 (core) capital to risk weighted assets, Actual, Ratio		0.2408	0.1768	0.1704	0.1745	0.1553
Common Tier 1 (CET1), Actual, Ratio		0.2408	0.1768	0.1704	0.1745	0.1553
Tier 1 (core) capital to adjusted tangible assets (leverage ratio)		0.1147	0.0808	0.1011	0.1042	0.0983

Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net income (loss)	$ (2,197)	$ 5,260	$ 3,452	$ 2,325	$ 3,063	$ 5,777
Denominator:
Weighted average common shares outstanding, basic	50,386,856		50,009,053		50,289,612	49,930,563
Weighted average effect of potentially dilutive common shares:
Weighted average common shares outstanding, diluted	50,386,856		50,060,775		50,496,487	49,987,253
Income per share:
Income (loss) per share, basic	$ (0.04)		$ 0.07		$ 0.06	$ 0.12
Income (loss) per share, diluted	$ (0.04)		$ 0.07		$ 0.06	$ 0.12
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	762,831		309,499		108,619	224,515
Stock options
Income per share:
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	344,506		67,767		49,545	71,325
Restricted Stock
Income per share:
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive	418,325		241,732		59,074	153,190
Common stock \| Stock options
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation			41,055		112,422	45,423
Common stock \| Restricted Stock
Weighted average effect of potentially dilutive common shares:
Incremental shares from share-based compensation			10,667		94,453	11,267

Employee Benefit Plans (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	May 31, 2022	Jun. 30, 2022	Jun. 30, 2022
Employee Benefit Plans
Reversal of liabilities and expenses due to bank-owned life insurance surrendered		$ 4.5	$ 4.5
Income tax expense
Employee Benefit Plans
Tax expense due to surrender of bank-owned life insurance policies		3.6	3.6
Other expense
Employee Benefit Plans
Tax expense due to surrender of bank-owned life insurance policies		$ 1.3	$ 1.3
BOLI cash surrender value
Employee Benefit Plans
Cash surrender value	$ 24.9
Increase in value of bank-owned life insurance surrendered	$ 13.1

Fair Values of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available for sale debt securities:
Available for sale debt securities, at fair value	$ 377,492	$ 308,657
Equity securities
Equity securities	4,571	4,976
U.S. Treasury and Agency securities
Available for sale debt securities:
Available for sale debt securities, at fair value	181,188	122,168
U.S. Treasury and Agency securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	181,188	122,168
U.S. Treasury and Agency securities \| Level 1 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	93,500	48,827
U.S. Treasury and Agency securities \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	87,688	73,341
Mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities, at fair value	40,583	49,437
Mortgage-backed securities \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	40,583	49,437
Mortgage-backed securities \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	40,583	49,437
Collateralized mortgage obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	155,568	136,849
Collateralized mortgage obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	155,568	136,849
Collateralized mortgage obligations \| Level 2 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	155,568	136,849
Collateralized debt obligations
Available for sale debt securities:
Available for sale debt securities, at fair value	153	203
Collateralized debt obligations \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	153	203
Collateralized debt obligations \| Level 3 \| Recurring
Available for sale debt securities:
Available for sale debt securities, at fair value	153	203
Equity securities \| Recurring
Equity securities
Equity securities	4,571	4,976
Equity securities \| Level 1 \| Recurring
Equity securities
Equity securities	$ 4,571	$ 4,976

Fair Values of Financial Instruments - Reconciliation and income statement classification using Level 3 inputs (Details) - Collateralized debt obligations - Recurring - Level 3 - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance of recurring Level 3 assets at beginning of period	$ 203	$ 187	$ 187
Included in other comprehensive income (loss)	3	4
Principal maturities/settlements	(53)	(1)
Balance of recurring Level 3 assets at end of period	153	190	203
Investment income
Unrealized losses on investments	(5)		$ (8)
Interest income	$ 3	$ 3

Fair Values of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis and Fair Value of Financial Instruments (Details) $ in Thousands	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Financial Assets
Interest-bearing time deposits with other banks	$ 1,183	$ 1,183
Loans held for sale	8,964	64,987
Nonrecurring \| Residential real estate
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis		86
Nonrecurring \| Residential real estate \| Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis		86
Nonrecurring \| Residential real estate \| Level 3 \| Sales comparison approach
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis		$ 86
Nonrecurring \| Residential real estate \| Weighted Average \| Level 3 \| Sales comparison approach \| Adjustments for differences between the comparable sales
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input		0.15
Nonrecurring \| Commercial real estate loans held for sale
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis		$ 53,628
Nonrecurring \| Commercial real estate loans held for sale \| Level 2
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis		53,628
Nonrecurring \| Mortgage servicing rights
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis	926	2,052
Nonrecurring \| Mortgage servicing rights \| Level 3
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis	926	2,052
Nonrecurring \| Mortgage servicing rights \| Level 3 \| Discounted cash flow
Fair value of financial assets and liabilities
Assets measured at fair value on a nonrecurring basis	$ 926	$ 2,052
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.120	0.120
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.28	0.371
Nonrecurring \| Mortgage servicing rights \| Maximum \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.002	0.002
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.095	0.095
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.078	0.105
Nonrecurring \| Mortgage servicing rights \| Minimum \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.001	0.001
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Discount rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.119	0.110
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Prepayment speed
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.190	0.197
Nonrecurring \| Mortgage servicing rights \| Weighted Average \| Level 3 \| Discounted cash flow \| Default rate
Fair value of financial assets and liabilities
Assets measured at fair value, measurement input	0.002	0.002
Carrying value per balance sheet
Financial Assets
Cash and due from banks	$ 285,165	$ 411,676
Interest-bearing time deposits with other banks	1,183	1,183
Loans held for sale	8,964	11,359
Loans, net	1,726,366	1,956,180
Financial Liabilities
Time deposits	669,581	891,820
Federal Home Loan Bank borrowings	50,000	150,000
Subordinated notes, net	65,308	65,343
Estimated fair value
Financial Assets
Cash and due from banks	285,165	411,676
Interest-bearing time deposits with other banks	1,183	1,183
Loans held for sale	9,398	11,809
Loans, net	1,683,258	2,025,409
Financial Liabilities
Time deposits	673,210	894,049
Federal Home Loan Bank borrowings	49,050	152,560
Subordinated notes, net	65,037	65,073
Estimated fair value \| Level 1
Financial Assets
Cash and due from banks	285,165	411,676
Interest-bearing time deposits with other banks	1,183	1,183
Estimated fair value \| Level 2
Financial Assets
Loans held for sale	9,398	11,809
Financial Liabilities
Time deposits	673,210	894,049
Federal Home Loan Bank borrowings	49,050	152,560
Subordinated notes, net	65,037	65,073
Estimated fair value \| Level 3
Financial Assets
Loans, net	$ 1,683,258	$ 2,025,409

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Controlling Shareholders
Related party transactions
Sublease income	$ 97	$ 112	$ 192

Commitments and Contingencies - Unfunded Commitments and Litigation (Details) $ in Thousands		6 Months Ended
	Jan. 21, 2021 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jul. 28, 2020 item
Loss contingency from Internal review of Advantage Loan Program
Commitments and Contingencies
Liability for contingent losses		$ 15,000	$ 15,000
Demand letter from purported stockholders
Commitments and Contingencies
Number of law firms \| item				2
Plaintiff attorney's fee and expenses	$ 650
Insurance reimbursement receivable			650
Unfunded Commitments to Extend Credit \| Residential real estate
Commitments and Contingencies
Outstanding commitments with varying interest rates		$ 2,802
Unfunded Commitments to Extend Credit \| Residential real estate \| Minimum
Commitments and Contingencies
Variable interest rate (as a percentage)		3.125%
Unfunded Commitments to Extend Credit \| Residential real estate \| Maximum
Commitments and Contingencies
Variable interest rate (as a percentage)		4.375%
Maturity period for variable interest loans		30 years
Unfunded Commitments to Extend Credit \| Residential real estate \| Maximum \| Demand letter from purported stockholders
Commitments and Contingencies
Maturity period		90 days
Commitments to make loans
Commitments and Contingencies
Commitments to make loans		$ 2,802	23,610
Unused lines of credit
Commitments and Contingencies
Unused lines of credit		$ 27,300	45,805
Unused lines of credit \| Minimum
Commitments and Contingencies
Variable interest rate (as a percentage)		4.00%
Maturity period for variable interest loans		1 month
Unused lines of credit \| Maximum
Commitments and Contingencies
Variable interest rate (as a percentage)		6.95%
Maturity period for variable interest loans		23 years
Unused lines of credit \| Residential real estate
Commitments and Contingencies
Unused lines of credit		$ 10,618
Unused lines of credit \| Construction
Commitments and Contingencies
Unused lines of credit		16,682
Standby letters of credit
Commitments and Contingencies
Unused lines of credit		$ 24	$ 24

Commitments and Contingencies - Mortgage Repurchase Liability and Offers (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended	27 Months Ended
	May 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2019
Commitments and Contingencies
Mortgage loan repurchase liability		$ 1,807		$ 1,807			$ 1,807	$ 2,954
Loss		3,876	$ 2,868	5,422	$ 4,491
Advantage Loan Program
Commitments and Contingencies
Mortgage loan repurchase liability		$ 1,807	4,292	$ 1,807	4,292	$ 9,699	$ 1,807	$ 2,954	$ 7,823
Increase in mortgage loan repurchase liability						$ 2,527
Percentage of loans offered to each of investors to repurchase		100.00%		100.00%			100.00%
Loans repurchased during the period	$ 30,380	$ 30,380	$ 79,818		$ 167,762
Loss	695
Disposition of mortgage servicing rights	376
Loss charged against mortgage repurchase liability	$ 622
Advantage Loan Program loans repurchased
Commitments and Contingencies
Loans repurchased during the period							$ 273,847

Commitments and Contingencies - Mortgage Repurchase Liability Date Ranges (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	$ 60,802
Present - February 28, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	11,472
Present - May 21, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	11,784
Present - July 22, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	23,071
July 25, 2022 - July 25, 2023
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding Principal Balance	$ 14,475

Commitments and Contingencies - Mortgage Repurchase Liability Activity and Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Commitments and Contingencies
Unpaid principal balance	$ 1,726,366		$ 1,956,266
Mortgage repurchase liability:
Balance, beginning of period	2,954
Balance, end of the period	1,807
Residential real estate
Commitments and Contingencies
Unpaid principal balance	177,704		237,049
Advantage Loan Program
Commitments and Contingencies
Unpaid principal balance	89,648		$ 142,810
Mortgage repurchase liability:
Balance, beginning of period	2,954	$ 9,699
Net recovery	(525)	(665)
Loss on loan repurchases	622	4,742
Balance, end of the period	$ 1,807	$ 4,292