FIRST INTERNET BANCORP, 10-K filed on 3/12/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Mar. 07, 2025
Jun. 28, 2024
Class of Stock [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-35750    
Registrant Name First Internet Bancorp    
Entity Incorporation, State or Country Code IN    
Entity Tax Identification Number 20-3489991    
Entity Address, Address Line One 8701 E. 116th Street    
Entity Address, City or Town Fishers    
Entity Address, State or Province IN    
Entity Address, Postal Zip Code 46038    
City Area Code 317    
Local Phone Number 532-7900    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 215.3
Entity Common Stock, Shares Outstanding   8,697,085  
Documents Incorporated by Reference
Documents Incorporated By Reference
 
Portions of our definitive proxy statement for our 2025 annual meeting of shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.
   
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2024    
Amendment Flag false    
Central Index Key 0001562463    
Common Stock      
Class of Stock [Line Items]      
Title of 12(b) Security Common stock, without par value    
Trading Symbol INBK    
Security Exchange Name NASDAQ    
6.0% Fixed to Floating Subordinated Notes due 2029      
Class of Stock [Line Items]      
Title of 12(b) Security 6.0% Fixed to Floating Subordinated Notes due 2029    
Trading Symbol INBKZ    
Security Exchange Name NASDAQ    
v3.25.0.1
Audit Information
12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name Forvis Mazars, LLP
Auditor Location Indianapolis, Indiana
Auditor Firm ID 686
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets    
Cash and due from banks $ 9,249 $ 8,269
Interest-bearing demand deposits 457,161 397,629
Total cash and cash equivalents 466,410 405,898
Securities available-for-sale - at fair value (amortized cost of $626,854 and $513,315 in 2024 and 2023, respectively) 587,355 474,855
Securities held-to-maturity - at amortized cost, net of allowance for credit losses of $0.2 million and $0.3 million in 2024 and 2023, respectively, (fair value of $228,851 and $207,572 in 2024 and 2023, respectively) 249,796 227,153
Loans held-for-sale 54,695 22,052
Loans 4,170,646 3,840,220
Allowance for credit losses - loans (44,769) (38,774)
Net loans 4,125,877 3,801,446
Accrued interest receivable 28,180 26,746
Federal Home Loan Bank of Indianapolis stock 28,350 28,350
Cash surrender value of bank-owned life insurance 41,394 40,882
Premises and equipment, net 71,453 73,463
Goodwill 4,687 4,687
Servicing asset, at fair value 16,389 10,567
Other real estate owned 272 375
Accrued income and other assets 63,001 51,098
Total assets 5,737,859 5,167,572
Liabilities    
Noninterest-bearing deposits 136,451 123,464
Interest-bearing deposits 4,796,755 3,943,509
Total deposits 4,933,206 4,066,973
Advances from Federal Home Loan Bank 295,000 614,934
Subordinated Debt 105,150 104,838
Accrued interest payable 2,495 3,848
Accrued expenses and other liabilities 17,945 14,184
Total liabilities 5,353,796 4,804,777
Commitments and Contingencies
Shareholders’ equity    
Preferred stock, no par value; 4,913,779 shares authorized; issued and outstanding - none 0 0
Retained earnings 230,622 207,470
Accumulated other comprehensive loss (32,653) (29,375)
Total shareholders’ equity 384,063 362,795
Total liabilities and shareholders’ equity 5,737,859 5,167,572
Voting Common Stock    
Shareholders’ equity    
Common stock 186,094 184,700
Nonvoting Common Stock    
Shareholders’ equity    
Common stock $ 0 $ 0
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Securities available-for-sale, amortized cost $ 626,854 $ 513,315
Securities held-to-maturity, allowance for credit losses 154 293
Total 228,851 207,572
Unamortized discounts and debt issuance costs $ 1,850 $ 2,162
Preferred stock, authorized (in shares) 4,913,779 4,913,779
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Voting Common Stock    
Common stock, authorized (in shares) 45,000,000 45,000,000
Common stock, issued (in shares) 8,667,894 8,667,894
Common stock, outstanding (in shares) 8,644,451 8,644,451
Nonvoting Common Stock    
Common stock, authorized (in shares) 86,221 86,221
Common stock, issued (in shares) 0 0
Common stock, outstanding (in shares) 0 0
v3.25.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Interest income      
Loans $ 233,844 $ 192,337 $ 140,600
Securities – taxable 26,742 17,189 10,711
Securities – non-taxable 3,775 3,532 1,767
Other earning assets 27,526 26,384 3,830
Total interest income 291,887 239,442 156,908
Interest expense      
Deposits 183,150 143,363 41,832
Other borrowed funds 21,360 21,175 17,983
Total interest expense 204,510 164,538 59,815
Interest Income (Expense), Operating, Total 87,377 74,904 97,093
Provision for credit losses - loans 18,815 15,454 4,977
Benefit for credit losses - debt securities held-to-maturity (139) (42) 0
(Benefit) provision for credit losses - off-balance sheet commitments (1,606) 1,241 0
Net interest income after provision for credit losses 70,307 58,251 92,116
Noninterest income      
Gain on sale of loans 33,329 20,526 11,372
Other 9,406 2,302 2,416
Total noninterest income 47,345 26,125 21,257
Noninterest expense      
Salaries and employee benefits 51,756 45,322 41,553
Marketing, advertising and promotion 2,589 2,567 3,554
Consulting and professional fees 3,744 3,082 4,826
Data processing 2,448 2,373 1,989
Loan expenses 5,947 5,756 4,435
Premises and equipment 11,902 10,599 10,688
Deposit insurance premium 5,000 3,880 1,152
Other 6,724 5,857 5,076
Total noninterest expense 90,110 79,436 73,273
Income before income taxes 27,542 4,940 40,100
Income tax provision (benefit) 2,266 (3,477) 4,559
Net income $ 25,276 $ 8,417 $ 35,541
Income Per Share of Common Stock (in dollars per share)      
Basic (in dollars per share) $ 2.91 $ 0.95 $ 3.73
Diluted (in dollars per share) $ 2.88 $ 0.95 $ 3.70
Weighted-average number of common shares outstanding      
Basic (shares) 8,690,416 8,837,558 9,530,921
Diluted (shares) 8,765,725 8,858,890 9,595,115
Dividends Declared Per Share (in dollars per share) $ 0.24 $ 0.24 $ 0.24
Service charges and fees      
Noninterest income      
Noninterest income $ 959 $ 851 $ 1,071
Loan servicing revenue      
Noninterest income      
Noninterest income 6,188 3,833 2,573
Loan servicing asset revaluation      
Noninterest income      
Noninterest income (2,537) (1,463) (1,639)
Mortgage banking activities      
Noninterest income      
Noninterest income $ 0 $ 76 $ 5,464
v3.25.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income $ 25,276 $ 8,417 $ 35,541
Securities available-for-sale      
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax (1,039) 7,339 (42,336)
Income tax (benefit) provision (800) 1,682 (9,060)
Net effect on other comprehensive (loss) income (239) 5,657 (33,276)
Securities held-to-maturity      
Reclassification of securities from available-for-sale to held-to-maturity 0 0 (5,402)
Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 789 778 844
Income tax provision (benefit) 90 198 (1,039)
Net effect on other comprehensive income (loss) 699 580 (3,519)
Cash flow hedges      
Reclassification of gain on termination of interest rate swaps (1,082) (2,566) 19,091
Reclassification of gain on termination of interest rate swaps (2,904) 0 0
Income tax (benefit) provision (248) (590) 4,893
Net effect on other comprehensive (loss) income (3,738) (1,976) 14,198
Total other comprehensive (loss) income (3,278) 4,261 (22,597)
Comprehensive income $ 21,998 $ 12,678 $ 12,944
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Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Voting and Nonvoting Common Stock
Common Stock
Voting and Nonvoting Common Stock
Cumulative Effect, Period of Adoption, Adjustment
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Cumulative Effect, Period of Adoption, Adjustment
Balance at Dec. 31, 2021 $ 380,338   $ 218,946   $ 172,431   $ (11,039)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 35,541       35,541      
Other comprehensive income (loss) (22,597)           (22,597)  
Cash dividends declared (2,297)       (2,297)      
Repurchased shares of common stock (27,780)   (27,780)          
Recognition of the fair value of share-based compensation 2,035   2,035          
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 21   21          
Common stock redeemed for the net settlement of share-based awards (287)   (287)          
Balance at Dec. 31, 2022 364,974   192,935   205,675   (33,636)  
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2022   $ (4,491)   $ 0   $ (4,491)   $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 8,417       8,417      
Other comprehensive income (loss) 4,261           4,261  
Cash dividends declared (2,131)       (2,131)      
Repurchased shares of common stock (9,248)   (9,248)          
Excise tax on repurchase of common stock (92)   (92)          
Recognition of the fair value of share-based compensation 1,258   1,258          
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 9   9          
Common stock redeemed for the net settlement of share-based awards (162)   (162)          
Balance at Dec. 31, 2023 362,795   184,700   207,470 $ (4,500) (29,375)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 25,276       25,276      
Other comprehensive income (loss) (3,278)           (3,278)  
Cash dividends declared (2,124)       (2,124)      
Repurchased shares of common stock (283)   (283)          
Recognition of the fair value of share-based compensation 1,814   1,814          
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 5   5          
Common stock redeemed for the net settlement of share-based awards (142)   (142)          
Balance at Dec. 31, 2024 $ 384,063   $ 186,094   $ 230,622   $ (32,653)  
v3.25.0.1
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended 24 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2024
Dec. 31, 2021
Accounting Standards Update [Extensible List]     Accounting Standards Update 2016-13    
Cash dividends declared (in dollars per share) $ 0.24 $ 0.24 $ 0.24    
Repurchased shares of common stock (in shares)       (559,522)  
Shareholders’ equity $ 384,063 $ 362,795 $ 364,974 $ 384,063 $ 380,338
Retained Earnings          
Shareholders’ equity 230,622 207,470 205,675 230,622 172,431
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment          
Shareholders’ equity   (4,500)      
Accumulated Other Comprehensive Loss          
Shareholders’ equity $ (32,653) $ (29,375) $ (33,636) (32,653) (11,039)
Voting and Nonvoting Common Stock | Common Stock          
Repurchased shares of common stock (in shares) (10,500) (502,525) (779,956)    
Shareholders’ equity $ 186,094 $ 184,700 $ 192,935 $ 186,094 $ 218,946
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating activities      
Net income $ 25,276 $ 8,417 $ 35,541
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 8,460 5,748 8,729
Increase in cash surrender value of bank-owned life insurance (1,100) (1,023) (959)
Provision for credit losses 17,070 16,653 4,977
Share-based compensation expense 1,814 1,258 2,035
Loans originated for sale (517,675) (328,146) (518,870)
Proceeds from sale of loans originated for sale 510,002 342,684 558,817
Gain on sale of loans (33,329) (20,997) (17,473)
Gain on sale of other real estate owned (27) 0 0
Decrease in fair value of loans held-for-sale 0 143 184
Loss (gain) on derivatives 4,771 (384) (2,569)
Gain on prepayment of FHLB advances (1,829) 0 0
Gain on termination of interest rate swaps (2,904) 0 0
Gain on sale of premises and equipment (149) 0 0
Net change in servicing asset 2,537 1,463 1,639
Net deferred income tax (1,357) (4,353) 4,632
Net change in other assets (3,932) (6,625) 9,815
Net change in other liabilities 5,364 (3,158) (3,775)
Net cash provided by operating activities 12,992 11,680 82,723
Investing activities      
Net loan activity, excluding sales and purchases (201,768) (67,851) (214,761)
Proceeds from sales of other real estate owned 623 0 1,188
Net proceeds from sales of portfolio loans 0 0 14,466
Maturities of securities available-for-sale 78,378 53,142 80,223
Purchase of securities available-for-sale (193,944) (130,772) (12,969)
Maturities and calls of securities held-to-maturity 31,957 19,104 7,902
Purchase of securities held-to-maturity (53,977) (53,573) (41,246)
Redemption of Federal Home Loan Bank of Indianapolis stock 0 0 431
Purchase of Federal Home Loan Bank of Indianapolis stock 0 0 (3,131)
Proceeds from bank owned life insurance 737 0 0
Purchase of premises and equipment (2,592) (5,367) (17,517)
Loans purchased (142,001) (284,722) (412,109)
Purchase of equity investments (13,583) (4,464) (3,510)
Net cash (used in) provided by investing activities (496,170) (474,503) (601,033)
Financing activities      
Net change in deposits 866,233 623,818 262,286
Cash dividends paid (2,078) (2,156) (2,317)
Repurchase of common stock (283) (9,340) (27,780)
Proceeds from advances from Federal Home Loan Bank 430,000 475,000 615,000
Repayment of advances from Federal Home Loan Bank (750,000) (475,000) (515,000)
Other, net (182) (153) (287)
Net cash (used in) provided by financing activities 543,690 612,169 331,902
Net increase (decrease) in cash and cash equivalents 60,512 149,346 (186,408)
Cash and cash equivalents, beginning of year 405,898 256,552 442,960
Cash and cash equivalents, end of year 466,410 405,898 256,552
Supplemental disclosures of cash flows information      
Cash paid during the year for interest 205,863 163,604 58,920
Cash paid during the year for taxes 684 939 2,005
Loans transferred to other real estate owned 523 375 0
Loans transferred to held-for-sale from portfolio 0 0 14,049
Cash dividends declared, not paid 520 519 544
Securities purchases settled in subsequent period 0 2,632 2,997
Transfer of available-for-sale mortgage-backed securities to held-to-maturity mortgage-backed securities at fair value $ 0 $ 0 $ 96,220
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies
 
The accounting policies of First Internet Bancorp and its subsidiaries (the “Company”) conform to accounting principles generally accepted in the United States of America (“GAAP”). A summary of the Company’s significant accounting policies follows:
 
Description of Business
 
The Company was incorporated on September 15, 2005, and consummated a plan of exchange on March 21, 2006, by which the Company became a bank holding company and 100% owner of First Internet Bank of Indiana (the “Bank”).
 
The Bank offers a wide range of commercial, small business, consumer and municipal banking products and services. The Bank conducts its consumer and small business deposit operations primarily through digital channels on a nationwide basis and has no traditional branch offices. The Bank is subject to competition from other financial institutions. The Bank is regulated by certain state and federal agencies and undergoes periodic examinations by those regulatory authorities.
 
The Bank has three wholly owned subsidiaries. JKH Realty Services, LLC was established on August 20, 2012 as a single member limited liability company wholly owned by the Bank to manage other real estate owned properties as needed. First Internet Public Finance Corp., a wholly-owned subsidiary of the Bank, was incorporated on March 6, 2017 and was established to provide municipal finance lending and leasing products to government entities and to purchase, manage, service, and safekeep municipal securities. SPF15, Inc., a wholly-owned subsidiary of the Bank, was incorporated on August 31, 2018 and was established to acquire and hold real estate.
 
Principles of Consolidation
 
The consolidated financial statements include the accounts of the Company and its direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s business activities are currently limited to one reporting unit and reportable segment, which is commercial banking.

The Company also evaluates its relationships with other entities to identify whether they represent a variable interest entity (“VIE”). The Company is considered to hold a controlling financial interest in a VIE when it is the primary beneficiary. A primary beneficiary has both: 1) the power to direct the activities that most significantly impact the entity’s economic performance; and 2) and the obligation to absorb losses of, or the right to receive benefits from, an entity that could potentially be significant to the entity. The Company considers all of its economic interests in the VIE when determining whether it has the obligation to absorb losses or the right to receive benefits from the VIE. Certain equity investments held by the Company meet the criteria of a VIE. See Note 3 for additional information on the Company’s equity investments and VIEs.

Segment Information

The Company operates as a single reportable segment. While there are several lines of business within the operating segment, they are closely interrelated and cannot operate independently. Accordingly, the Chief Operation Decision Maker (“CODM”) evaluates operations and financial performance on a Company-wide basis and all of the Company’s operations are aggregated in one reportable operating segment. See Note 22 for additional segment information.
 
Use of Estimates
 
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company utilizes processes that involve the use of significant estimates and the judgment of management in determining the amount of the Company’s allowance for credit losses (“ACL”). Actual results could differ from those estimates.
   
Securities
 
The Company classifies its securities in one of three categories and accounts for the investments as follows:

Securities that the Company has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and reported at amortized cost.

Securities that are acquired and held principally for the purpose of selling them in the near term with the objective of generating economic profits on short-term differences in market characteristics are classified as “trading securities” and reported at fair value, with unrealized gains and losses included in earnings. The Company had no securities classified as “trading securities” at December 31, 2024 or 2023.

Securities not classified as either “held-to-maturity” or “trading securities” are classified as “available-for-sale” and reported at fair value, with unrealized gains and losses, after applicable taxes, excluded from earnings and reported in a separate component of shareholders’ equity.

Interest and dividend income, adjusted by amortization of premium or discount, is included in earnings using the effective interest rate method. Purchases and sales of securities are recorded in the consolidated balance sheets on the trade date. Gains and losses from the sale or disposal of securities are recognized as of the trade date in the consolidated statements of income for the period in which securities are sold or otherwise disposed of. Gains and losses on sales of securities are determined using the specific-identification method.
 
Loans Held-for-Sale
 
Loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income.

Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan.
 
Revenue Recognition
 
The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company's principal source of revenue is interest income from loans and leases and investment securities.
Interest income on loans is accrued as earned using the interest method based on unpaid principal balances, except for interest on loans in nonaccrual status. Interest on loans in nonaccrual status is recorded as a reduction of loan principal when received.
 
Premiums and discounts are amortized using the effective interest rate method.
 
Loan fees, net of certain direct origination costs, primarily salaries and wages, are deferred and amortized to interest income as a yield adjustment over the life of the loan.

The Company also earns noninterest income through a variety of financial and transaction services provided to commercial and consumer clients such as sales of the government-guaranteed portion of U.S. Small Business Administration loans, SBA servicing revenue, deposit account, debit card, mortgage banking and portfolio loan sales. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses.
     
Loans
 
Loans that management intends to hold until maturity are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the ACL, any unamortized deferred fees or costs on originated loans, unamortized premiums or discounts on purchased loans and any carrying value adjustments related to terminated interest rate swaps associated with loans.
 
For loans recorded at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are recorded in accordance with our revenue recognition policy.

ASU 2016 - 13

On January 1, 2023, the Company adopted ASU 2016-03 Financial Instruments - Credit losses (“ASC 326”): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected credit loss (“CECL”) methodology. The CECL estimate is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures, including loan commitments, standby letters of credit, financial guarantees and other similar instruments. Additionally, ASC 326 resulted in changes to the accounting for available-for-sale debt securities.

The Company adopted ASC 326 for all financial assets measured at amortized cost, available-for-sale securities and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. The Company recorded a net decrease to retained earnings of $4.5 million as of January 1, 2023 for the cumulative effect of adopting ASC 326. The net adjustment to allowance for credit losses (“ACL”) includes $2.3 million related to loans, $1.9 million related to off-balance sheet credit exposures and $0.3 million related to held-to-maturity debt securities.
 
ACL - Available-For-Sale (“AFS”) Debt Securities

For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors, such as interest rates or market conditions. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded. Changes in the ACL are recorded as a provision for, or recovery of, credit loss expense. Losses are charged against the allowance when management believes that uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

ACL - Held-To-Maturity (“HTM”) Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities are excluded from the estimate of credit losses. The Company made the accounting policy election to not measure an ACL for accrued interest. Accrued interest deemed uncollectible will be written off through interest income. The HTM securities portfolio includes municipal securities, residential mortgage-backed-securities, commercial mortgage-backed securities and corporate securities. All residential and commercial mortgage-backed securities are U.S. government issued or sponsored and substantially all municipal and corporate securities are rated investment grade or above.

The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

ACL - Loans

The ACL for loans represents management's estimate of all expected credit losses over the expected life of the Company’s existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past
events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information.

Accrued interest receivable on loans are excluded from the estimate of credit losses. The Company made the accounting policy election to not measure an ACL for accrued interest receivable. Accrued interest deemed uncollectible will be written off through interest income.

ACL - Loans - Collectively Evaluated

The ACL is measured on a collective pool basis when similar risk characteristics exist.

The Company utilizes a discounted cash flow (“DCF”) method to estimate the quantitative portion of the allowance for credit losses for loans evaluated on a collective pooled basis. For each segment, a loss driver analysis is performed in order to identify loss drivers and create a regression model for use in forecasting cash flows.

In creating the DCF model, the Company has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. Due to its limited loss history, the Company elected to use peer data for a more accurate calculation.


Key inputs into the DCF model include loan-level detail, including the amortized cost basis of individual loans, payment structure, loss history, and forecasted loss drivers. The Company utilizes a third party to provide economic forecasts under various scenarios, which are assessed quarterly considering the scenarios in the context of the current economic environment and loss risk.

Expected credit losses are estimated over the contractual term of the loans and adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Additional key assumptions in the DCF model include the probability of default (“PD”), loss given default (“LGD”), and prepayment/curtailment rates. The Company utilizes the model-driven PD and a LGD derived from a method referred to as Frye Jacobs. The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted. In all cases, the Frye Jacobs method is utilized to calculate LGDs during the forecast period, reversion period and long-term historical average. Prepayment and curtailment rates were calculated through third party analysis of the Company’s own data.

Qualitative factors for the DCF include the following:
Changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices
Changes in international, national, regional and local conditions
Changes in the nature and volume of the portfolio and terms of loans
Changes in the experience, depth and ability of lending management
Changes in the volume and severity of past due loans and other similar conditions
Changes in the quality of the Company’s loan review system
Changes in the value of underlying collateral for collateral dependent loans
The existence and effect of any concentrations of credit and changes in the levels of such concentrations
The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses

ACL - Loans - Individually Evaluated

Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. The Company has determined that any loans which have been placed on nonaccrual status will be
individually evaluated. Individual analysis will establish a specific reserve for loans, if necessary. Specific reserves on nonaccrual loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as necessary.

ACL - Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL for off-balance sheet credit exposure is recorded as a liability and adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Funding rates are based on a historical analysis of the Company’s portfolio, while estimates of credit losses are determined using the same loss rates as funded loans.

Regulatory Capital

As permitted by the federal banking regulatory agencies, the Company has elected the option to delay the impact of the day one adoption of ASC 326. Refer to “Note 14: Regulatory Capital Requirements” for details of the phase-in transition adjustments.

Modified Loans to Borrowers Experiencing Financial Difficulty

The Company may make modifications to certain loans in order to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. Modifications may include changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and/or reductions to the outstanding loan balance. Such loans are typically placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been delinquent for a period of 90 days or more. These loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt.
Provision for Credit Losses
 
A provision for estimated credit losses is charged to income based upon management’s evaluation of the potential losses. Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term. While management attempts to use the best information available in making its evaluations, future ACL adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations.
 
Nonaccrual Loans
 
Any loan which becomes 90 days delinquent or for which the full collection of principal and interest may be in doubt will be considered for nonaccrual status. At the time a loan is placed on nonaccrual status, all accrued but unpaid interest will be reversed from interest income. Placing a loan on nonaccrual status does not relieve the borrower of the obligation to repay interest. A loan placed on nonaccrual status may be restored to accrual status when all delinquent principal and interest has been brought current, and the Company expects full payment of the remaining contractual principal and interest.
 
Individually Evaluated Loans
 
A loan is individually evaluated, when, based on current information or events, it is probable that the Company will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Payments with delays not exceeding 90 days outstanding generally are not individually evaluated. Certain nonaccrual
and substantially all delinquent loans more than 90 days past due may be individually evaluated. Generally, loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings, unless the loan is well secured and in the process of collection. The accrual of interest on individually evaluated and nonaccrual loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due.
 
Individually evaluated loans include nonperforming loans and also include loans where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection.
 
Accounting Standards Codification (“ASC”) Topic 310, Receivables, requires that individually evaluated loans be measured based on the present value of expected future cash flows discounted at the loans’ effective interest rates or the fair value of the underlying collateral, less costs to sell, and allows existing methods for recognizing interest income.
 
Policy for Charging Off Loans
 
The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy. A secured loan is generally charged down to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest. An unsecured loan generally is charged off no later than when it is 180 days past due as to principal or interest. A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest.
 
Federal Home Loan Bank (“FHLB”) of Indianapolis Stock
 
Federal law requires a member institution of the FHLB system to hold common stock of its district FHLB according to a predetermined formula. This investment is stated at cost, which represents redemption value, and may be pledged as collateral for FHLB advances.
 
Premises and Equipment
 
Premises and equipment is stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives, which range from three to five years for software and equipment, ten years for land improvements, and 39 years for buildings.

Other Real Estate Owned
 
Other real estate owned represents real estate acquired through foreclosure or deed in lieu of foreclosure and is recorded at its fair value less estimated costs to sell. When property is acquired, it is recorded at its fair value at the date of acquisition with any resulting write-down charged against the ACL. Any subsequent deterioration of the property is charged directly to operating expense. Costs relating to the development and improvement of other real estate owned are capitalized, whereas costs relating to holding and maintaining the property are charged to expense as incurred.

Derivative Financial Instruments
 
The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, prior to the Company’s decision to exit its consumer mortgage business in the first quarter 2023, we entered into forward contracts related to our mortgage banking business to hedge the exposures we had from commitments to extend new residential mortgage loans to our customers and from our mortgage loans held-for-sale. The forward contracts were entered into in order to economically hedge the effect of changed interest rates resulting from the Company’s commitment to fund the loans.

Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses in the income statement within the same period that the hedged item affects earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps. For derivative
instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax. The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets.

The interest rate lock commitments (“IRLCs”) and forward contracts are not designated as accounting hedges and are recorded at fair value with changes in fair value reflected in noninterest income in the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets.

Fair Value Measurements
 
The Company records or discloses certain assets and liabilities at fair value. ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified within one of three levels in a valuation hierarchy. ASC Topic 820 describes three levels of inputs that may be used to measure fair value:
 
Level 1    Quoted prices in active markets for identical assets or liabilities
 
Level 2    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 for substantially the full term of the assets or liabilities
 
Level 3    Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

There were no transfers that occurred and, therefore, recognized, between any of the fair value hierarchy levels at December 31, 2024 or 2023.
  
Income Taxes
 
Deferred income tax assets and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and the basis of such assets and liabilities as measured by tax laws and regulations. Deferred income tax expense or benefit is based upon the change in deferred tax assets and liabilities from period to period, subject to an ongoing assessment of realization of deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.
 
The Company files income tax returns in the U.S. federal, Indiana, and other state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years before 2019.
 
ASC Topic 740-10, Accounting for Uncertainty in Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company did not identify any material uncertain tax positions that it believes should be recognized in the consolidated financial statements.
 
Earnings Per Share
 
Earnings per share of common stock is based on the weighted average number of basic shares and dilutive shares outstanding during the year.
 
The following is a reconciliation of the weighted average common shares for the basic and diluted earnings per share computations.
Year Ended December 31,
202420232022
Basic earnings per share
Net income available to common shareholders$25,276 $8,417 $35,541 
Weighted average common shares8,690,416 8,837,558 9,530,921 
Basic earnings per common share$2.91 $0.95 $3.73 
Diluted earnings per share
Net income available to common shareholders$25,276 $8,417 $35,541 
Weighted average common shares8,690,416 8,837,558 9,530,921 
Dilutive effect of equity compensation75,309 21,332 64,194 
Weighted average common and incremental shares8,765,725 8,858,890 9,595,115 
Diluted earnings per common share1
$2.88 $0.95 $3.70 

1 Potential dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. There were no antidilutive shares for the year ended December 31, 2024. Excluded from the computation of diluted earnings per share were weighted average antidilutive shares totaling 20,797 and 2,646 for the years ended December 31, 2023 and 2022, respectively.



Share-based Compensation
 
The Company has a share-based compensation plan using the fair value recognition provisions of ASC Topic 718, Compensation - Stock Compensation. The plan is described more fully in Note 11.
 
Comprehensive Income
 
Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, unrealized gains and losses on the transfer of securities available-for-sale to securities held-to-maturity, and unrealized gains and losses on cash flow hedges.
 
Reclassification adjustments have been determined for all components of other comprehensive income (loss) reported in the consolidated statements of shareholders’ equity.
 
Statements of Cash Flows
 
Cash and cash equivalents are defined to include cash on-hand, noninterest and interest-bearing amounts due from other banks and federal funds sold. Generally, federal funds are sold for one-day periods. The Company reports net cash flows for customer loan transactions and deposit transactions.
 
Bank-Owned Life Insurance
 
Bank-owned life insurance policies are carried at their cash surrender value. The Company recognizes tax-free income from the periodic increases in the cash surrender value of these policies and from death benefits.
 
Goodwill
 
Goodwill is tested at least annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.
   
Servicing Asset
The servicing asset is related to small business lending loans sold. The servicing asset is recognized at the time of sale when servicing is retained and the income statement effect is recorded in loan servicing revenue. Servicing assets are recorded at fair value in accordance with ASC 860. Fair value is based on a third-party valuation model that calculates the present value of net servicing revenue.
v3.25.0.1
Cash and Cash Equivalents
12 Months Ended
Dec. 31, 2024
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents Cash and Cash Equivalents
 
At December 31, 2024, the Company’s interest-bearing and noninterest-bearing cash accounts at other institutions exceeded the limits for full FDIC insurance coverage by $1.1 million. In addition, approximately $440.8 million and $15.7 million of cash was held at the Federal Reserve Bank of Chicago and the FHLB of Indianapolis, respectively, which are not federally insured.
 
The Federal Reserve Act authorizes the Federal Reserve Board to establish reserve requirements within specified ranges for the purpose of implementing monetary policy on certain types of deposits and other liabilities of depository institutions. On March 15, 2020, the Federal Reserve Board reduced requirement ratios to zero percent effective March 26, 2020. As such, the Company is not currently required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank.
v3.25.0.1
Securities
12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
 
The following tables summarize securities available-for-sale and securities held-to-maturity as of December 31, 2024 and 2023.

 December 31, 2024
 Amortized CostGross UnrealizedFair Value
GainsLosses
Securities available-for-sale    
U.S. Government-sponsored agencies$83,811 $487 $(1,482)$82,816 
Municipal securities 67,441 — (3,787)63,654 
Agency mortgage-backed securities - residential1
300,914 460 (31,733)269,641 
Agency mortgage-backed securities - commercial64,214 276 (1,159)63,331 
Private label mortgage-backed securities - residential46,623 186 (988)45,821 
Asset-backed securities
23,802 62 (43)23,821 
Corporate securities40,049 71 (1,849)38,271 
Total available-for-sale$626,854 $1,542 $(41,041)$587,355 
 December 31, 2024
 Amortized CostGross UnrealizedFair ValueAllowance for Credit LossesNet Carrying Value
 GainsLosses
Securities held-to-maturity    
Municipal securities$12,846 $— $(921)$11,925 $(3)$12,843 
Agency mortgage-backed securities - residential201,840 102 (17,530)184,412 — 201,840 
Agency mortgage-backed securities - commercial5,705 — (1,157)4,548 — 5,705 
Corporate securities29,559 — (1,593)27,966 (151)29,408 
Total held-to-maturity$249,950 $102 $(21,201)$228,851 $(154)$249,796 

1 Includes $0.3 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2024.

 December 31, 2023
 Amortized CostGross UnrealizedFair Value
 GainsLosses
Securities available-for-sale    
U.S. Government-sponsored agencies$96,404 $402 $(1,629)$95,177 
Municipal securities69,494 356 (1,404)68,446 
Agency mortgage-backed securities - residential1
237,798 101 (31,250)206,649 
Agency mortgage-backed securities - commercial40,215 (1,339)38,885 
Private label mortgage-backed securities - residential21,742 144 (1,107)20,779 
Asset-backed securities
8,071 17 (7)8,081 
Corporate securities39,591 25 (2,778)36,838 
Total available-for-sale$513,315 $1,054 $(39,514)$474,855 

 December 31, 2023
 Amortized CostGross UnrealizedFair ValueAllowance for Credit LossesNet Carrying Value
 GainsLosses
Securities held-to-maturity    
Municipal securities$13,892 $$(853)$13,040 $(3)$13,889 
Agency mortgage-backed securities - residential166,750 (14,112)152,642 — 166,750 
Agency mortgage-backed securities - commercial5,767 — (1,246)4,521 — 5,767 
Corporate securities41,037 — (3,668)37,369 (290)40,747 
Total held-to-maturity$227,446 $$(19,879)$207,572 $(293)$227,153 

1 Includes $0.4 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2023.

Accrued interest receivable on AFS and HTM securities at December 31, 2024 was $2.8 million and $1.1 million, respectively, compared to $2.9 million and $1.2 million, respectively, at December 31, 2023, and is included in accrued interest receivable on the consolidated balance sheet. The Company elected to exclude all accrued interest receivable from securities when estimating credit losses.

At December 31, 2024 and 2023, over 92% and 95%, respectively, of mortgage-backed securities (including both AFS and HTM) held by the Company are issued by U.S. government-sponsored entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses; therefore, the Company did not record an ACL on these securities.

Additionally, the Company evaluated credit impairment for individual AFS securities that are in an unrealized loss position and determined that the unrealized losses are unrelated to credit quality and are primarily attributable to
changes in interest rates and volatility in the financial markets. As the Company does not intend to sell the AFS securities that are in an unrealized loss position, and it is unlikely that it will be required to sell these securities before recovery of their amortized cost basis, the Company did not record an ACL on these securities.

The Company also evaluated its HTM securities that are in an unrealized loss position and considered issuer bond ratings, historical loss rates for bond ratings and economic forecasts. The ACL on HTM securities at December 31, 2024 and 2023 was $0.2 million and $0.3 million, respectively.

The carrying value of securities at December 31, 2024 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 Available-for-Sale
Amortized
Cost
Fair
Value
Within one year$10,725 $10,684 
One to five years24,017 23,988 
Five to ten years70,946 68,040 
After ten years85,613 82,029 
 191,301 184,741 
Agency mortgage-backed securities - residential300,914 269,641 
Agency mortgage-backed securities - commercial64,214 63,331 
Private label mortgage-backed securities - residential46,623 45,821 
Asset-backed securities23,802 23,821 
Total$626,854 $587,355 

 Held-to-Maturity
 Amortized
Cost
Fair
Value
Within one year$1,808 $1,796 
One to five years24,721 24,071 
Five to ten years12,381 11,013 
After ten years3,495 3,011 
42,405 39,891 
Agency mortgage-backed securities - residential201,840 184,412 
Agency mortgage-backed securities - commercial5,705 4,548 
Total$249,950 $228,851 
 
There were no gross realized gains or losses resulting from the sale of AFS securities recognized during the twelve months ended December 31, 2024, December 31, 2023 and December 31, 2022.

As of December 31, 2024, the fair value of securities pledged as collateral was $795.0 million. The Company pledged these securities to both the FHLB and the Fed Discount Window to increase the Company’s borrowing capacity and provide collateral for existing FHLB advances.
 
Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at December 31, 2024 and 2023 was $603.9 million and $578.9 million, which is approximately 72% and 85%, respectively, of the Company’s AFS and HTM securities portfolios. As of December 31, 2024, the Company’s securities portfolio consisted of 579 positions, of which 482 were in an unrealized loss position. As of December 31, 2023, the Company’s security portfolio consisted of 512 positions, of which 434 were in an unrealized loss position. The unrealized losses are related to the categories noted below.
 
 U.S. Government-Sponsored Agencies, Municipal Securities and Corporate Securities
 
The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the investments, and it is not likely that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.

Agency Mortgage-Backed, Private Label Mortgage-Backed Securities and Asset-Backed Securities
 
The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed securities and asset-backed securities were caused primarily by interest rate changes. The Company expects to recover the amortized cost basis over the terms of the securities. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.

The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2024 and 2023:

 December 31, 2024
 Less Than 12 Months12 Months or LongerTotal
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Securities available-for-sale      
U.S. Government-sponsored agencies$16,856 $(111)$29,748 $(1,371)$46,604 $(1,482)
Municipal securities 8,504 (54)52,649 (3,733)61,153 (3,787)
Agency mortgage-backed securities - residential 41,005 (179)169,483 (31,554)210,488 (31,733)
Agency mortgage-backed securities - commercial18,141 (37)12,027 (1,122)30,168 (1,159)
Private label mortgage-backed securities - residential3,003 (14)7,450 (974)10,453 (988)
Asset-backed securities
10,299 (43)— — 10,299 (43)
Corporate securities2,994 (6)27,179 (1,843)30,173 (1,849)
Total$100,802 $(444)$298,536 $(40,597)$399,338 $(41,041)


 December 31, 2023
 Less Than 12 Months12 Months or LongerTotal
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Securities available-for-sale      
U.S. Government-sponsored agencies$41,934 $(161)$24,579 $(1,468)$66,513 $(1,629)
Municipals2,399 (103)36,193 (1,301)38,592 (1,404)
Agency mortgage-backed securities - residential1,089 (5)194,095 (31,245)195,184 (31,250)
Agency mortgage-backed securities - commercial21,561 (50)14,217 (1,289)35,778 (1,339)
Private label mortgage-backed securities - residential3,567 (29)9,114 (1,078)12,681 (1,107)
Asset-backed securities
1,654 (7)— — 1,654 (7)
Corporate securities1,680 (365)24,587 (2,413)26,267 (2,778)
Total$73,884 $(720)$302,785 $(38,794)$376,669 $(39,514)
The following table summarizes ratings for the Company’s HTM portfolio issued by state and political subdivisions and other securities as of December 31, 2024 and 2023.

December 31, 2024
Held-to-Maturity
Municipal SecuritiesMortgage-Backed Securities - ResidentialMortgage-Backed Securities - CommercialCorporate SecuritiesTotal
AAA equivalent - agency$— $201,840 $5,705 $— $207,545 
Aa1/AA+8,878 — — — 8,878 
Aa2/AA2,175 — — — 2,175 
Aa3/AA-1,793 — — — 1,793 
A2/A— — — 5,000 5,000 
A3/A-— — — — — 
Baa1/BBB+— — — 8,500 8,500 
Baa2/BBB— — — 5,500 5,500 
Baa3/BBB-— — — 8,559 8,559 
Ba1/BB+— — — 2,000 2,000 
   Total$12,846 $201,840 $5,705 $29,559 $249,950 

December 31, 2023
Held-to-Maturity
Municipal SecuritiesMortgage-Backed Securities - ResidentialMortgage-Backed Securities - CommercialCorporate SecuritiesTotal
AAA equivalent - agency$— $166,750 $5,767 $— $172,517 
Aa1/AA+9,917 — — — 9,917 
Aa2/AA1,538 — — — 1,538 
A1/A+1,794 — — — 1,794 
A2/A643 — — 5,000 5,643 
A3/A-— — — 4,509 4,509 
Baa1/BBB+— — — 8,500 8,500 
Baa2/BBB— — — 8,500 8,500 
Baa3/BBB-— — — 12,528 12,528 
Ba1/BB+— — — 2,000 2,000 
   Total$13,892 $166,750 $5,767 $41,037 $227,446 


There were no amounts reclassified from accumulated other comprehensive loss to the consolidated statements of income during the twelve months ended December 31, 2024, 2023 and 2022.
Equity Investments

Equity investments, largely comprised of non-marketable equity investments, are generally accounted for under equity security accounting and is included within accrued income and other assets on the consolidated balance sheet. The Company’s non-marketable equity investments consist of limited partner interests in venture capital and Small Business Investment Company (“SBIC”) funds. After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive profit and return of capital distributions as a result of fund performance until the funds wind down. While the partnership agreements allow the Company to remove the general partner, this right is not considered to be substantive as the general partner can only be removed for cause. All of these investments are generally non-redeemable and distributions are generally expected to be received through the
liquidation of the underlying investments throughout the life of the investment fund. Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreements.

The above investments meet the criteria of a VIE. However, the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities that most significantly impact the economic performance of the entities. The Company’s maximum exposure to loss from unconsolidated VIEs includes the value of the investment recorded on the Company’s consolidated balance sheets.

The following tables provide additional information related to equity investments accounted for under equity security accounting.

The carrying amount of each equity investment with a readily determinable fair value or net asset value at December 31, 2024 and 2023 is reflected in the following table:

2024
2023
GenOpp Financial Fund LP$2,724 $2,102 
Total$2,724 $2,102 


The carrying amount of the Company’s investments in non-marketable equity securities with no readily determinable fair value and amounts recognized in earnings on a cumulative basis for the years ended December 31, 2024 and 2023 is reflected in the following table:

20242023
Carrying value1
$20,017 $12,374 
Carrying value adjustments— — 
Impairment— — 
Upward changes for observable prices— — 
Downward changes for observable prices— — 
  Net change$20,017 $12,374 

1 Excludes $9.1 million and $11.5 million in unfunded commitments as of December 31, 2024 and 2023, respectively.
v3.25.0.1
Loans
12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loans Loans
 
Categories of loans include: 
December 31,
 20242023
Commercial loans  
Commercial and industrial$120,175 $129,349 
Owner-occupied commercial real estate53,591 57,286 
Investor commercial real estate269,431 132,077 
Construction413,523 261,750 
Single tenant lease financing949,748 936,616 
Public finance485,867 521,764 
Healthcare finance181,427 222,793 
Small business lending 1
331,914 218,506 
Franchise finance536,909 525,783 
Total commercial loans3,342,585 3,005,924 
Consumer loans
Residential mortgage375,160 395,648 
Home equity18,274 23,669 
Other consumer407,947 377,614 
Total consumer loans801,381 796,931 
Total commercial and consumer loans4,143,966 3,802,855 
Net deferred loan origination costs, premiums and discounts on purchased loans, and other 2
26,680 37,365 
Total loans4,170,646 3,840,220 
Allowance for credit losses(44,769)(38,774)
Net loans$4,125,877 $3,801,446 

1 Balances include $34.0 million and $33.5 million that is guaranteed by the U.S. government as of December 31, 2024 and December 31, 2023, respectively.
2 Includes carrying value adjustment of $22.9 million and $27.8 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2024 and December 31, 2023, respectively.

The general risk characteristics specific to each loan portfolio segment are as follows:

Commercial and Industrial: Commercial and industrial loans’ sources of repayment are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Loans are made for working capital, equipment purchases, or other purposes. Most commercial and industrial loans are secured by the assets being financed and may incorporate a personal guarantee. This portfolio segment is generally concentrated in the Midwest and Southwest regions of the United States.

Owner-Occupied Commercial Real Estate: The primary source of repayment is the cash flow from the ongoing operations and activities conducted by the borrower, or an affiliate of the borrower, who owns the property. This portfolio segment is generally concentrated in the Midwest and Southwest regions of the United States and its loans are often secured by manufacturing and service facilities.

Investor Commercial Real Estate: These loans are made on a nationwide basis and are underwritten primarily based on the cash flow expected to be generated from the property and are secondarily supported by the value of the real estate. These loans typically incorporate a personal guarantee from the primary sponsor or sponsors. This portfolio segment generally involves larger loan amounts with repayment primarily dependent on the successful leasing and operation of the property securing the loan or the business conducted on the property securing the loan. Investor commercial real estate loans may be more adversely affected by changing economic conditions in the real estate markets, industry dynamics or the overall health of the local economy where the property is located. The
properties securing the Company’s investor commercial real estate portfolio tend to be diverse in terms of property type. Management monitors and evaluates commercial real estate loans based on property financial performance, collateral value, guarantor strength, economic and industry conditions together with other risk grade criteria. As a general rule, the Company avoids financing special use projects unless other underwriting factors are present to mitigate these additional risks.

Construction: Construction loans are made on a nationwide basis and are secured by land and related improvements and are made to assist in the construction of new structures, which may include commercial (retail, industrial, office, and multi-family) properties, land development for residential properties or single family residential properties offered for sale by the builder. These loans generally finance a variety of project costs, including land, site preparation, architectural services, construction, closing and soft costs and interim financing needs. The cash flows of builders, while initially predictable, may fluctuate with market conditions, and the value of the collateral securing these loans may be subject to fluctuations based on general economic changes.

Single Tenant Lease Financing: These loans are made on a nationwide basis to owners of real estate subject to long-term lease arrangements with single tenant operators. The real estate is typically operated by regionally, nationally or globally branded businesses. The loans are underwritten based on the financial strength of the borrower, characteristics of the real estate, cash flows generated from the lease arrangements and the financial strength of the tenant. Similar to the other loan portfolio segments, management monitors and evaluates these loans based on borrower and tenant financial performance, collateral value, industry trends and other risk grade criteria.

Public Finance: These loans are made on a nationwide basis to governmental and not-for-profit entities to provide both tax-exempt and taxable loans for a variety of purposes including: short-term cash-flow needs; debt refinancing; economic development; quality of life projects; infrastructure improvements; renewable energy projects; and equipment financing. The primary sources of repayment for public finance loans include pledged revenue sources including, but not limited to: general obligations; property taxes; income taxes; tax increment revenue; utility revenue; gaming revenues; sales tax; and pledged general revenue. Certain loans may also include an additional collateral pledge of mortgaged property or a security interest in financed equipment.

Healthcare Finance: These loans are made on a nationwide basis to healthcare providers, primarily dentists, for practice acquisition financing or refinancing that occasionally includes owner-occupied commercial real estate and equipment purchases. The sources of repayment are primarily based on the identified cash flows from operations of the borrower and related entities and secondarily on the underlying collateral provided by the borrower.
Small Business Lending: These loans are made on a nationwide basis to small businesses and generally carry a partial guaranty from the U.S. Small Business Administration (“SBA”) under its 7(a) loan program. We generally sell the government guaranteed portion of SBA loans into the secondary market while retaining the non-guaranteed portion of the loan and the servicing rights. Loans in the small business lending portfolio have sources of repayment that are primarily based on the identified cash flows of the borrower and secondarily on any underlying collateral provided by the borrower. Loans may, but do not always, have a collateral shortfall. For SBA loans where the guaranteed portion is retained, the SBA guaranty provides a tertiary source of repayment to the Bank in event of borrower default. Cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Loans are made for a broad array of purposes including, but not limited to, providing operating cash flow, funding ownership changes, and facilitating equipment and commercial real estate purchases.

Franchise Finance: These loans are made on a nationwide basis through our partnership with ApplePie Capital, which through their deep relationships with franchise brands provides franchisees with financing options for new franchise units, recapitalization, expansion, equipment and working capital. The sources of repayment are either based on identified cash flows from existing operations of the borrower or pro forma cash flow for new franchise locations.
Residential Mortgage: With respect to residential loans that are secured by 1-to-4 family residences and are generally owner occupied, the Company typically established a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the financial circumstances of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Risk is mitigated
by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.
Home Equity: Home equity loans and lines of credit are typically secured by a subordinate interest in 1-to-4 family residences. The properties securing the home equity portfolio segment are generally geographically diverse as the Company offered these products on a nationwide basis. Repayment of these loans and lines of credit is primarily dependent on the financial circumstances of the borrowers and may be impacted by changes in unemployment levels and property values on residential properties, among other economic conditions in the market.
Other Consumer: These loans primarily consist of consumer loans and credit cards. Consumer loans may be secured by consumer assets such as horse trailers or recreational vehicles. Some consumer loans are unsecured, such as small installment loans, home improvement loans and certain lines of credit. Repayment of consumer loans is primarily dependent upon the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.
Allowance for Credit Losses (“ACL”) Methodology
The ACL for loans represents management's estimate of all expected credit losses over the expected life of the Company’s existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information.
The Company's methodologies incorporate a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average for most segments.
The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for adjustments that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration, or other internal and external factors.
The Company also includes qualitative adjustments to the ACL based on factors and considerations that have not otherwise been fully accounted for. Qualitative adjustments include, but are not limited to:
Changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices
Changes in international, national, regional and local conditions
Changes in the nature and volume of the portfolio and terms of loans
Changes in the experience, depth and ability of lending management
Changes in the volume and severity of past due loans and other similar conditions
Changes in the quality of the Company’s loan review system
Changes in the value of underlying collateral for collateral dependent loans
The existence and effect of any concentrations of credit and changes in the levels of such concentrations
The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses

The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes that align with its lines of business. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio.
Loans that do not share similar risk characteristics are evaluated on an individual basis. These evaluations are typically performed on loans with a deteriorated internal risk rating. The ACL is determined based on several methods, including estimating the fair value of the underlying collateral or the present value of expected cash flows.
The Company relies on a third-party platform that offers multiple methodologies to measure historical life-of-loan losses.
Modified Loans to Borrowers Experiencing Financial Difficulty
The Company may make modifications to certain loans in order to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. Modifications may include changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and/or reductions to the outstanding loan balance. Such loans are typically placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been delinquent for a period of 90 days or more. These loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt. The Company typically measures the ACL on modified loans to borrowers experiencing financial difficulty on an individual basis when the loans are deemed to no longer share risk characteristics that are similar with other loans in the portfolio. The determination of the ACL for these loans is based on a discounted cash flow approach for both those measured collectively and individually, unless the loan is deemed collateral dependent, which requires measurement of the ACL based on the estimated expected fair value of the underlying collateral, less costs to sell. GAAP requires the Company to make certain disclosures related to these loans, including certain types of modifications, as well as how such loans have performed since their modifications.
Provision for Credit Losses 
A provision for estimated losses on loans is charged to income based upon management’s evaluation of the potential losses. Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term. While management attempts to use the best information available in making its evaluations, future ACL adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations.
 Policy for Charging Off Loans 
The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy. A secured loan is generally charged down to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest. An unsecured loan generally is charged off no later than when it is 180 days past due as to principal or interest. A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest.
The following tables present changes in the balance of the ACL during the twelve months ended December 31, 2024 and December 31, 2023, respectively.
 Twelve Months Ended December 31, 2024
 Balance, Beginning of Period(Credit) Provision Charged to ExpenseLosses Charged OffRecoveriesBalance, End of Period
Allowance for credit losses:  
Commercial and industrial$2,185 $(928)$— $$1,265 
Owner-occupied commercial real estate825 (297)— — 528 
Investor commercial real estate1,311 (162)— — 1,149 
Construction2,167 (183)— — 1,984 
Single tenant lease financing8,129 (3,152)(195)— 4,782 
Public finance1,372 (669)— — 703 
Healthcare finance1,976 (564)— — 1,412 
Small business lending6,532 19,745 (10,441)325 16,161 
Franchise finance6,363 4,079 (1,466)— 8,976 
Residential mortgage2,054 240 (159)2,136 
Home equity171 (72)— 106 
Other consumer5,689 778 (1,009)109 5,567 
Total$38,774 $18,815 $(13,270)$450 $44,769 



 Twelve Months Ended December 31, 2023
 Balance, Beginning of PeriodAdoption of CECLProvision (Credit) Charged to ExpenseLosses Charged OffRecoveriesBalance, End of Period
Allowance for credit losses:   
Commercial and industrial$1,711 $(120)$7,400 $(7,049)$243 $2,185 
Owner-occupied commercial real estate651 62 112 — — 825 
Investor commercial real estate1,099 (191)994 (591)— 1,311 
Construction2,074 (435)528 — — 2,167 
Single tenant lease financing10,519 (346)(2,044)— — 8,129 
Public finance1,753 (135)(246)— — 1,372 
Healthcare finance2,997 1,034 (1,450)(605)— 1,976 
Small business lending2,168 334 6,539 (2,586)77 6,532 
Franchise finance3,988 (313)3,019 (331)— 6,363 
Residential mortgage1,559 406 224 (140)2,054 
Home equity69 133 (37)— 171 
Other consumer3,149 2,533 415 (582)174 5,689 
Total$31,737 $2,962 $15,454 $(11,884)$505 $38,774 
Prior to the adoption of ASU 2016-13 on January 1, 2023, the Company calculated the allowance for loan losses using the incurred loss methodology. The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2022.
 Twelve Months Ended December 31, 2022
 Balance, Beginning of Period(Credit) Provision Charged to ExpenseLosses Charged OffRecoveriesBalance, End of Period
Allowance for loan losses:   
Commercial and industrial$1,891 $(185)$— $$1,711 
Owner-occupied commercial real estate742 (91)— — 651 
Investor commercial real estate328 771 — — 1,099 
Construction1,612 462 — — 2,074 
Single tenant lease financing10,385 (1,097)— 1,231 10,519 
Public finance1,776 (23)— — 1,753 
Healthcare finance5,940 (2,943)— — 2,997 
Small business lending1,387 1,154 (402)29 2,168 
Franchise finance1,083 2,905 — — 3,988 
Residential mortgage643 912 — 1,559 
Home equity64 (134)— 139 69 
Other consumer1,990 3,246 (2,358)271 3,149 
Total$27,841 $4,977 $(2,760)$1,679 $31,737 

In addition to the ACL, the Company established a reserve for off-balance sheet commitments, classified in other liabilities, as required by the adoption of the CECL methodology for measuring credit losses. This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments. The adequacy of the reserve for unfunded commitments is determined quarterly based on methodology similar to the methodology for determining the ACL. The following tables details activity in the provision for credit losses on off-balance sheet commitments for the twelve months ended December 31, 2024 and December 31, 2023.

Balance
December 31, 2023
Provision for credit lossesBalance
December 31, 2024
Off-balance sheet commitments
Commercial loans
Commercial and industrial$233 $— $233 
Owner-occupied commercial real estate11 
Investor commercial real estate(5)
Construction2,889 (1,321)1,568 
Single tenant lease financing— 19 19 
Small business lending541 (278)263 
Total commercial loans3,678 (1,583)2,095 
Consumer loans
Residential mortgage11 (10)
Home equity45 (10)35 
Other consumer11 (3) 
Total consumer loans67 (23)44 
Total allowance for off-balance sheet commitments$3,745 $(1,606)$2,139 
Pre-ASC 326 AdoptionImpact of ASC 326 AdoptionProvision for credit lossesBalance
December 31, 2023
Off-balance sheet commitments
Commercial loans
Commercial and industrial$— $110 $123 $233 
Owner-occupied commercial real estate— — 
Investor commercial real estate— (3)
Construction— 2,193 696 2,889 
Healthcare finance— (2)— 
Small business lending— — 541 541 
Total commercial loans— 2,314 1,364 3,678 
Consumer loans
Residential mortgage— 127 (116)11 
Home equity— 52 (7)45 
Other consumer— 11 —  11 
Total consumer loans— 190 (123)67 
Total allowance for off-balance sheet commitments$— $2,504 $1,241 $3,745 


The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans, which are evaluated annually. A description of the general characteristics of the risk grades is as follows:
 
“Pass” - Higher quality loans that do not fit any of the other categories described below.

“Special Mention” - Loans that possess some credit deficiency or potential weakness which deserve close attention.

“Substandard” - Loans that possess a defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans that are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any.

“Doubtful” - Such loans have been placed on nonaccrual status and may be heavily dependent upon collateral possessing a value that is difficult to determine or based upon some near-term event which lacks clear certainty. These loans have all of the weaknesses of those classified as Substandard; however, based on existing conditions, these weaknesses make full collection of the principal balance highly improbable.

“Loss” - Loans that are considered uncollectible and of such little value that continuing to carry them as assets is not warranted.
  
The Company does not risk grade its consumer loans. It classifies them as either performing or nonperforming. Below is a description of those classifications:
“Performing” - Loans that are accruing and full collection of principal and interest is expected.

“Nonperforming” - Loans that are 90 days delinquent or for which the full collection of principal and interest may be in doubt.
The following table presents the credit risk profile of the Company’s commercial and consumer loan portfolios by loan class and by year of origination for the years indicated based on rating category and payment activity as of December 31, 2024 and December 31, 2023
December 31, 2024
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
20242023202220212020PriorTotal
Commercial and industrial
  Pass$23,539 $8,501 $13,853 $5,418 $2,362 $17,829 $44,000 $— $115,502 
  Special Mention 47 164 4,462 — — — — — 4,673 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total commercial and
     industrial
23,586 8,665 18,315 5,418 2,362 17,829 44,000 — 120,175 
Year-to-date gross charge-offs— — — — — — — — — 
Owner-occupied commercial real estate
  Pass7,410 1,458 5,366 6,438 5,716 14,793 — — 41,181 
  Special Mention — — 570 888 8,144 1,153 — — 10,755 
  Substandard— — — — — 1,655 — — 1,655 
  Doubtful— — — — — — — — — 
     Total owner-occupied
     commercial real estate
7,410 1,458 5,936 7,326 13,860 17,601 — — 53,591 
Year-to-date gross charge-offs— — — — — — — — — 
Investor commercial real estate
  Pass71,430 3,849 88,290 65,050 9,607 27,474 — — 265,700 
  Special Mention — — — — — 3,731 — — 3,731 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total investor commercial real
     estate
71,430 3,849 88,290 65,050 9,607 31,205 — — 269,431 
Year-to-date gross charge-offs— — — — — — — — — 
Construction
  Pass35,177 186,979 140,299 47,598 1,622 — 1,848 — 413,523 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total construction35,177 186,979 140,299 47,598 1,622 — 1,848 — 413,523 
Year-to-date gross charge-offs— — — — — — — — — 
Single tenant lease financing
  Pass79,872 46,674 211,005 88,192 63,506 437,564 — — 926,813 
  Special Mention 644 — 9,696 3,460 — 9,135 — — 22,935 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total single tenant lease
     financing
80,516 46,674 220,701 91,652 63,506 446,699 — — 949,748 
Year-to-date gross charge-offs— — — — — 195 — — 195 
Public finance
  Pass55,306 1,290 7,790 12,050 463 407,008 — — 483,907 
  Special Mention — — — — — 1,960 — — 1,960 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total public finance55,306 1,290 7,790 12,050 463 408,968 — — 485,867 
Year-to-date gross charge-offs— — — — — — — — — 
December 31, 2024
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
20242023202220212020PriorTotal
Healthcare finance
  Pass— — — 8,969 104,427 67,413 — — 180,809 
  Special Mention — — — — — 618 — — 618 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total healthcare finance— — — 8,969 104,427 68,031 — — 181,427 
Year-to-date gross charge-offs— — — — — — — — — 
Small business lending
  Pass138,044 94,556 30,486 11,715 9,687 9,896 17,197 — 311,581 
  Special Mention 1,022 4,691 927 — 354 1,213 697 — 8,904 
  Substandard2,940 3,909 1,457 258 970 1,001 894 — 11,429 
  Doubtful— — — — — — — — — 
     Total small business lending142,006 103,156 32,870 11,973 11,011 12,110 18,788 — 331,914 
Year-to-date gross charge-offs1,093 4,600 3,038 567 619 524 — — 10,441 
Franchise finance
  Pass67,065 230,425 172,830 42,869 — — — — 513,189 
  Special Mention — 1,978 5,084 6,275 — — — — 13,337 
  Substandard— 3,543 6,367 473 — — — — 10,383 
  Doubtful— — — — — — — — — 
     Total franchise finance67,065 235,946 184,281 49,617 — — — — 536,909 
Year-to-date gross charge-offs— 1,171 — 295 — — — — 1,466 
Consumer loans
Residential mortgage
    Performing3,577 13,533 183,484 86,213 28,655 55,615 — — 371,077 
    Nonperforming— — 1,671 609 69 1,734 — — 4,083 
      Total residential mortgage3,577 13,533 185,155 86,822 28,724 57,349 — — 375,160 
Year-to-date gross charge-offs— — 101 58 — — — — 159 
Home equity
    Performing— 992 1,450 356 414 530 13,621 911 18,274 
    Nonperforming— — — — — — — — — 
      Total home equity— 992 1,450 356 414 530 13,621 911 18,274 
Year-to-date gross charge-offs— — — — — — — — — 
Other consumer
    Performing101,965 97,832 88,872 33,177 20,918 64,251 870 — 407,885 
    Nonperforming— — 38 11 12 — — 62 
      Total other consumer101,965 97,832 88,910 33,188 20,919 64,263 870 — 407,947 
Year-to-date gross charge-offs157 242 300 127 182 — — 1,009 
Total Loans$588,038 $700,374 $973,997 $420,019 $256,915 $1,124,585 $79,127 $911 $4,143,966 
Total year-to-date gross charge-offs$1,250 $6,013 $3,439 $1,047 $620 $901 $— $— $13,270 
December 31, 2023
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
20232022202120202019PriorTotal
Commercial and industrial
  Pass$24,329 $19,382 $15,464 $2,502 $12,365 $8,703 $41,967 $— $124,712 
  Special Mention — 4,637 — — — — — — 4,637 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total Commercial and
     industrial
24,329 24,019 15,464 2,502 12,365 8,703 41,967 — 129,349 
Year-to-date gross charge-offs— — 6,914 130 — — — 7,049 
Owner-occupied commercial real estate
  Pass1,492 10,731 7,990 6,591 5,255 12,485 — — 44,544 
  Special Mention — 584 922 8,392 — 1,189 — — 11,087 
  Substandard— — — — — 1,655 — — 1,655 
  Doubtful— — — — — — — — — 
     Total owner-occupied
     commercial real estate
1,492 11,315 8,912 14,983 5,255 15,329 — — 57,286 
Year-to-date gross charge-offs— — — — — — — — — 
Investor commercial real estate
  Pass6,571 35,209 26,841 9,864 47,827 5,765 — — 132,077 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total investor commercial real
     estate
6,571 35,209 26,841 9,864 47,827 5,765 — — 132,077 
Year-to-date gross charge-offs— — — — — 591 — — 591 
Construction
  Pass26,539 153,066 70,175 6,121 — — 5,849 — 261,750 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total construction26,539 153,066 70,175 6,121 — — 5,849 — 261,750 
Year-to-date gross charge-offs— — — — — — — — — 
Single tenant lease financing
  Pass52,360 221,964 89,075 65,863 142,023 346,695 — — 917,980 
  Special Mention — 4,362 6,698 3,032 — 4,544 — — 18,636 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total single tenant lease
     financing
52,360 226,326 95,773 68,895 142,023 351,239 — — 936,616 
Year-to-date gross charge-offs— — — — — — — — — 
Public finance
  Pass3,805 30,583 29,750 719 43,611 411,176 — — 519,644 
  Special Mention — — — — — 2,120 — — 2,120 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total public finance3,805 30,583 29,750 719 43,611 413,296 — — 521,764 
Year-to-date gross charge-offs— — — — — — — — — 
December 31, 2023
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
20232022202120202019PriorTotal
Healthcare finance
  Pass— — 9,955 124,654 63,486 23,484 — — 221,579 
  Special Mention — — — — 1,214 — — — 1,214 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total healthcare finance— — 9,955 124,654 64,700 23,484 — — 222,793 
Year-to-date gross charge-offs— — — — 605 — — — 605 
Small business lending
  Pass119,149 42,077 15,180 13,948 4,582 9,215 5,388 — 209,539 
  Special Mention 343 496 — 341 265 698 — — 2,143 
  Substandard1,095 1,854 52 1,777 1,155 417 474 — 6,824 
  Doubtful— — — — — — — — — 
     Total small business lending120,587 44,427 15,232 16,066 6,002 10,330 5,862 — 218,506 
Year-to-date gross charge-offs67 739 416 1,364 — — — — 2,586 
Franchise finance
  Pass256,944 210,617 57,919 — — — — — 525,480 
  Special Mention — — — — — — — — — 
  Substandard— — 303 — — — — — 303 
  Doubtful— — — — — — — — — 
     Total franchise finance256,944 210,617 58,222 — — — — — 525,783 
Year-to-date gross charge-offs— 331 — — — — — — 331 
Consumer loans
Residential mortgage
    Performing14,942 195,453 91,010 30,092 13,072 48,330 — — 392,899 
    Nonperforming— 738 456 73 — 1,482 — — 2,749 
      Total residential mortgage14,942 196,191 91,466 30,165 13,072 49,812 — — 395,648 
Year-to-date gross charge-offs— 53 70 — 17 — — — 140 
Home equity
    Performing1,369 1,997 436 467 141 585 16,896 1,778 23,669 
    Nonperforming— — — — — — — — — 
      Total home equity1,369 1,997 436 467 141 585 16,896 1,778 23,669 
Year-to-date gross charge-offs— — — — — — — — — 
Other consumer
    Performing115,736 106,883 41,598 26,527 27,087 58,902 795 — 377,528 
    Nonperforming— 53 — 15 13 — — 86 
      Total other consumer115,736 106,936 41,598 26,532 27,102 58,915 795 — 377,614 
Year-to-date gross charge-offs97 115 20 51 56 243 — — 582 
Total Loans$624,674 $1,040,686 $463,824 $300,968 $362,098 $937,458 $71,369 $1,778 $3,802,855 
Total year-to-date gross charge-offs$164 $1,238 $7,420 $1,420 $808 $834 $— $— $11,884 
The following tables present the Company’s loan portfolio delinquency analysis as of December 31, 2024 and December 31, 2023.

 December 31, 2024
30-59
Days
Past Due
60-89
Days
Past Due
90 Days 
or More
Past Due
Total 
Past Due
CurrentTotal loans
Commercial and industrial$$$$$120,175$120,175
Owner-occupied commercial real estate53,59153,591
Investor commercial real estate269,431269,431
Construction413,523413,523
Single tenant lease financing949,748949,748
Public finance485,867485,867
Healthcare finance181,427181,427
Small business lending11,8171,3105,58718,714313,200331,914
Franchise Finance9,4313,2799,84922,559514,350536,909
Residential mortgage6481,7113,8156,174368,986375,160
Home equity18,27418,274
Other consumer19419627417407,530407,947
Total$22,090$6,496$19,278$47,864$4,096,102$4,143,966


 December 31, 2023
30-59
Days
Past Due
60-89
Days
Past Due
90 Days 
or More
Past Due
Total 
Past Due
CurrentTotal loans
Commercial and industrial$40 $21 $— $61 $129,288 $129,349 
Owner-occupied commercial real estate— — — — 57,286 57,286 
Investor commercial real estate— — — — 132,077 132,077 
Construction— — — — 261,750 261,750 
Single tenant lease financing— — — — 936,616 936,616 
Public finance— — — — 521,764 521,764 
Healthcare finance— — — — 222,793 222,793 
Small business lending2,680 57 2,794 5,531 212,975 218,506 
Franchise Finance— 2,923 303 3,226 522,557 525,783 
Residential mortgage70 709 1,663 2,442 393,206 395,648 
Home equity— — — — 23,669 23,669 
Other consumer223 68 53 344 377,270 377,614 
Total$3,013 $3,778 $4,813 $11,604 $3,791,251 $3,802,855 


Loans are reclassified to non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. At the time the accrual is discontinued, all unpaid accrued interest is reversed against earnings. Interest income accrued in prior years, if any, is charged to the ACL. Payments subsequently received on nonaccrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of nine consecutive months of performance.
The following table summarizes the Company’s nonaccrual loans and loans past due 90 days or more and still accruing by loan class for the periods indicated:
December 31, 2024December 31, 2023
Total Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesTotal Loans
90 Days or
More Past
Due and
Accruing
Total Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesTotal Loans
90 Days or
More Past
Due and
Accruing
Commercial and industrial$— $— $— $— $— $— 
Owner-occupied commercial real estate— — — — — — 
Small business lending
11,429 4,778 1,320 6,824 904 — 
Franchise finance10,382 — — 303 — — 
Residential mortgage4,083 4,083 1,142 1,911 1,911 838 
Other consumer61 61 86 86 — 
Total loans$25,955 $8,922 $2,466 $9,124 $2,901 $838 


There was $0.7 million and $0.3 million in interest income recognized on nonaccrual loans for the twelve months ended December 31, 2024 and December 31, 2023, respectively.

Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and/or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.

The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of December 31, 2024 and December 31, 2023.

 December 31, 2024
Commercial Real EstateResidential Real EstateOther (Includes Equipment, Machinery and Other Assets)TotalAllowance on Collateral Dependent Loans
Owner-occupied commercial real estate$1,654 $— $— $1,654 $— 
Small business lending1
723 — 8,571 9,294 4,167 
Franchise finance— — 3,468 3,468 679 
Residential mortgage— 4,083 — 4,083 — 
Other consumer loans— — 22 22 — 
Total loans$2,377 $4,083 $12,061 $18,521 $4,846 

1 Balance includes $3.5 million of loans guaranteed by the U.S. government.
 December 31, 2023
Commercial Real EstateResidential Real EstateOther (Includes Equipment, Machinery and Other Assets)TotalAllowance on Collateral Dependent Loans
Owner-occupied commercial real estate$— $— $1,654 $1,654 $— 
Small business lending1
2,875 1,210 2,226 6,311 2,391 
Residential mortgage— 1,911 — 1,911 — 
Other consumer loans— — 86 86 — 
Total loans$2,875 $3,121 $3,966 $9,962 $2,391 

1 Balance includes $1.4 million of loans guaranteed by the U.S. government.

Loan Modifications to Borrowers Experiencing Financial Difficulty
 
In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective loan pool and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the ACL.

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, other-than-insignificant payment delays, term extensions and other actions intended to minimize loss and to avoid foreclosure or repossession of collateral. The Company had five loan modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2024. The Company did not have any loan modifications made to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023.

The following table present loans that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2024.

Twelve Months Ended December 31, 2024Payment DelayTotal Modification by Loan Class% of Class of Loans
Investor commercial real estate$3,731 $3,731 1.4 %
Franchise finance5,566 5,566 1.0 %
Total loans$9,297 $9,297 

The following table describe the financial effect of the modifications made to borrowers experiencing financial difficulty. As of December 31, 2024, the Company had no commitments to lend additional funds to these borrowers included in the table below.

Twelve Months Ended December 31, 2024 - Payment Delay
Loan TypeFinancial Effect
Investor commercial real estate
Forbearance average of 9 months.
Franchise finance
Forbearance average of 7 months.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months as of December 31, 2024.

Current30 - 89 Days
 Past Due
90+ Days
Past Due
Investor commercial real estate$3,731 $— $— 
Franchise finance5,566 — — 
     Total loans$9,297 $— $— 

There were four Franchise Finance loans and one Investor CRE loan classified as modifications to borrowers experiencing financial difficulty during the twelve months ended December 31, 2024 with total book balance of $9.3 million. There were no loans classified as modifications to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023.

Other Real Estate Owned
The Company had $0.3 million in other real estate owned (“OREO”) as of December 31, 2024, which consisted of one residential mortgage property. The Company had $0.4 million in other real estate owned (“OREO”) as of December 31, 2023, which consisted of two residential mortgage properties. There were nine loans totaling $2.1 million and one loan totaling $0.8 million, in the process of foreclosure at December 31, 2024 and December 31, 2023, respectively.

Accrued Interest Receivable

Accrued interest receivable on loans totaled $23.8 million and $22.0 million at December 31, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses. The Company made the accounting policy election to not measure an ACL for accrued interest receivable. Accrued interest deemed uncollectible will be written off through interest income.
v3.25.0.1
Premises and Equipment
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Premises and Equipment Premises and Equipment
 
The following table summarizes premises and equipment at December 31, 2024 and 2023. 
December 31,
 20242023
Land$5,598 $5,598 
Construction in process20 1,119 
Right of use leased asset188 66 
Building and improvements63,069 60,699 
Furniture and equipment22,047 20,836 
Less: accumulated depreciation(19,469)(14,855)
 $71,453 $73,463 
v3.25.0.1
Goodwill
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
As of December 31, 2024 and 2023, the carrying amount of goodwill was $4.7 million. There have been no changes in the carrying amount of goodwill for the three years ended December 31, 2024, 2023 and 2022. Goodwill is tested for impairment on an annual basis as of August 31, or whenever events or changes in circumstances indicate the carrying amount of goodwill exceeds its implied fair value. The annual test indicated no impairment existed as of August 31, 2024. No events or changes in circumstances have occurred since the August 31, 2024 annual impairment test that would suggest it was more likely than not goodwill impairment existed.
v3.25.0.1
Servicing Asset
12 Months Ended
Dec. 31, 2024
Transfers and Servicing [Abstract]  
Servicing Asset Servicing Asset
Activity for the servicing asset and the related changes in fair value for the twelve months ended December 31, 2024, 2023 and 2022 are shown in the table below.
Twelve Months Ended
 December 31, 2024December 31, 2023December 31, 2022
Beginning balance$10,567 $6,255 $4,702 
Additions:
     Originated and purchased servicing8,359 5,775 3,192 
Subtractions:
     Paydowns(3,005)(1,842)(1,075)
     Changes in fair value due to changes in valuation inputs
     or assumptions used in the valuation model
468 379 (564)
     Loan servicing asset revaluation(2,537)(1,463)(1,639)
     Ending balance$16,389 $10,567 $6,255 


Loans serviced for others are not included in the consolidated balance sheets. The unpaid principal balances of these loans serviced for others as of December 31, 2024, 2023 and 2022 are shown in the table below.

 December 31, 2024December 31, 2023December 31, 2022
Loan portfolios serviced for:
   SBA guaranteed loans$862,089 $531,927 $318,194 
     Total$862,089 $531,927 $318,194 

Loan servicing revenue totaled $6.2 million, $3.8 million and $2.6 million during the twelve months ended December 31, 2024, 2023 and 2022, respectively. Loan servicing asset revaluation, which represents paydowns and the
change in fair value of the servicing asset, resulted in a $2.5 million, $1.5 million and $1.6 million downward valuation for twelve months ended December 31, 2024, 2023 and 2022, respectively.

The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Though fluctuations in prepayment speeds and changes in secondary market premiums generally have the most substantial impact on the fair value of servicing rights, other influencing factors include changing economic conditions, changes to the discount rate assumption and the weighted average life of the servicing portfolio. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time; however, those assumptions may change over time. Refer to Note 16 - Fair Value of Financial Instruments for further details.
v3.25.0.1
Deposits
12 Months Ended
Dec. 31, 2024
Deposits [Abstract]  
Deposits Deposits
 
The following table presents the composition of the Company’s deposit base as of December 31, 2024 and 2023.
December 31,
 20242023
Noninterest-bearing deposits$136,451 $123,464 
Interest-bearing demand deposits1
896,661 402,976 
Savings accounts19,823 21,364 
Money market accounts1,183,789 1,248,319 
Fintech - brokered deposits 1
— 74,401 
Certificates of deposits2,133,455 1,605,156 
Brokered deposits563,027 591,293 
Total deposits$4,933,206 $4,066,973 
Time deposits greater than $250$776,788 $703,835 

1 Fintech - brokered deposits that had been previously classified as brokered deposits were reclassified to interest-bearing demand deposits as of December 31, 2024.

The following table presents time deposit maturities by year as of December 31, 2024.
 
Certificates of DepositsBrokered Certificates of Deposits
2025$1,327,799 $152,897 
2026178,941 57,509 
2027197,074 34,823 
2028142,667 — 
2029286,974 — 
Thereafter— — 
 $2,133,455 $245,229 
v3.25.0.1
FHLB Advances
12 Months Ended
Dec. 31, 2024
Federal Home Loan Banks [Abstract]  
FHLB Advances FHLB Advances
 
The Company had outstanding FHLB advances of $295.0 million and $614.9 million as of December 31, 2024 and 2023, respectively. As of December 31, 2024, the stated interest rates on the Company’s outstanding FHLB advances ranged from 1.06% to 4.16%, with a weighted average interest rate of 3.39%. All advances are collateralized by residential mortgage loans and commercial real estate loans pledged and held by the Company and investment securities pledged by the Company and held in safekeeping with the FHLB. Residential mortgage loans pledged were approximately $334.3 million and $330.3 million as of December 31, 2024 and 2023, respectively, and commercial real estate loans pledged were approximately $930.7 million and $932.4 million as of December 31, 2024 and 2023, respectively. The fair value of investment securities pledged to the FHLB was approximately $795.0 million and $662.1 million as of December 31, 2024 and 2023, respectively. Based on this collateral and the Company’s holding of FHLB stock, the Company is eligible to borrow up to an additional $1.1 billion at year-end 2024. As of December 31, 2024, the Company had $210.0 million of putable advance structures with the FHLB in which the FHLB holds a one-time option to put certain advances on a stated exercise date prior to maturity. Among the Company’s putable advance structures, $60.0 million have passed their one-time exercise date, with the next exercise date occurring in 2027.

The Company’s FHLB advances are scheduled to mature according to the following schedule:
 Amount
2025$50,000 
202610,000 
202750,000 
202835,000 
2029— 
Thereafter150,000 
 $295,000 
v3.25.0.1
Subordinated Debt
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Subordinated Debt Subordinated Debt
 
In June 2019, the Company issued $37.0 million aggregate principal amount of 6.0% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “2029 Notes”) in a public offering. The 2029 Notes bear interest at a floating rate equal to three-month Term SOFR plus 4.376%. All interest on the 2029 Notes is payable quarterly. The 2029 Notes are scheduled to mature on June 30, 2029. The 2029 Notes are unsecured subordinated obligations of the Company and may be repaid at any time, without penalty. The 2029 Notes are intended to qualify as Tier 2 capital under regulatory guidelines.

In October 2020, the Company entered into a term loan in the principal amount of $10.0 million, evidenced by a term note due 2030 (the “2030 Note”). The 2030 Note initially bears a fixed interest rate of 6.0% per year to, but excluding, November 1, 2025 and thereafter at a floating rate equal to the then-current benchmark rate (initially three-month Term SOFR plus 5.795%). The 2030 Note is scheduled to mature on November 1, 2030. The 2030 Note is an unsecured subordinated obligation of the Company and may be repaid, without penalty, on any interest payment date on or after November 1, 2025. The 2030 Note is intended to qualify as Tier 2 capital under regulatory guidelines. The Company used the net proceeds from the issuance of the 2030 Note to redeem a subordinated term note that had been entered into in October 2015.
In August 2021, the Company issued $60.0 million aggregate principal amount of 3.75% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “2031 Notes”) in a private placement. The 2031 Notes initially bear a fixed interest rate of 3.75% per year to, but excluding, September 1, 2026, and thereafter at a floating rate equal to the then-current benchmark rate (initially three-month Term SOFR plus 3.11%). The 2031 Notes are scheduled to mature on September 1, 2031. The 2031 Notes are unsecured subordinated obligations of the Company and may be repaid, without penalty, on any interest payment date on or after September 1, 2026. The 2031 Notes are intended to qualify as Tier 2 capital under regulatory guidelines. The Company used a portion of the net proceeds from the issuance of the 2031 Notes to redeem subordinated notes issued by the Company in 2016. Pursuant to the terms of a Registration Rights Agreement between the Company and the initial purchasers of the 2031 Notes, the Company offered to exchange the 2031 Notes for subordinated notes that are registered under the Securities Act of 1933, as amended, and have substantially the same terms as the 2031 Notes. On December 30, 2021, we completed an exchange of $59.3 million principal amount of the unregistered 2031 Notes for registered 2031 Notes in satisfaction of our obligations under the registration rights agreement. Holders of $0.7 million of unregistered 2031 Notes did not participate in the exchange.

The following table presents the principal balance and unamortized discount and debt issuance costs for the 2029 Notes, the 2030 Note and the 2031 Notes as of December 31, 2024 and 2023.

December 31, 2024December 31, 2023
PrincipalUnamortized Discount and Debt Issuance CostsPrincipalUnamortized Discount and Debt Issuance Costs
2029 Notes$37,000 $(703)$37,000 $(862)
2030 Note10,000 (137)10,000 (160)
2031 Notes60,000 (1,010)60,000 (1,140)
Total$107,000 $(1,850)$107,000 $(2,162)
v3.25.0.1
Benefit Plans
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
 
401(k) Plan
  
The Company has a 401(k) plan established for substantially all full-time and part-time employees, as defined in the plan. Employee contributions are limited to the maximum established by the Internal Revenue Service on an annual basis. The Company has elected to match contributions equal to 100% up to the first 1% of employee deferrals and 50% for employee deferrals above 1% up to a maximum of 6% equating to a maximum match of 3.5% of an individual’s eligible earnings, as defined in the plan. The company match vests immediately. Discretionary employer-matching contributions begin vesting immediately at a rate of 50% per year of employment and are fully vested after the completion of two years of employment. Contributions totaled approximately $1.1 million, $0.9 million and $0.9 million for the twelve months ended December 31, 2024, 2023 and 2022, respectively.
 
Employment Agreements

The Company is party to certain employment agreements with each of its Chief Executive Officer, President and Chief Operating Officer and Executive Vice President and Chief Financial Officer. The employment agreements each provide for annual base salaries and annual bonuses, if any, as determined from time to time by the Compensation Committee of our Board of Directors. The annual bonuses are to be determined with reference to the achievement of annual performance objectives established by the Compensation Committee. The agreements also provide that each of the Chief Executive Officer, President and Chief Operating Officer and Executive Vice President and Chief Financial Officer, may be awarded additional compensation, benefits, or consideration as the Compensation Committee may determine.

The agreements also provide for the continuation of salary and certain other benefits for a specified period of time upon termination of employment under certain circumstances, including resignation for “good reason,” termination by the Company without “cause” at any time or any termination of employment within twelve months following a “change in control,” along with other specific conditions.
2022 Equity Incentive Plan

The First Internet Bancorp 2022 Equity Incentive Plan (the “2022 Plan”) was approved by our Board of Directors and ratified by our shareholders on May 16, 2022. The plan permits awards of incentive and non-statutory stock options, stock appreciation rights, restricted stock awards, stock unit awards, performance awards and other stock-based awards. All employees, consultants and advisors of the Company or any subsidiary, as well as all non-employee directors of the Company, are eligible to receive awards under the 2022 Plan. The 2022 Plan initially authorized the issuance of 400,000 new shares of the Company’s common stock plus all shares of common stock that remained available for future grants under the First Internet Bancorp 2013 Equity Incentive Plan (the “2013 Plan”).

Award Activity Under 2022 Plan

The Company recorded $1.5 million, $0.8 million, and $0.1 million of share-based compensation expense for the years ended December 31, 2024, 2023 and 2022, respectively, related to stock-based awards under the 2022 Plan.

The following table summarizes the stock-based award activity under the 2022 Plan for the year ended December 31, 2024.
Restricted Stock UnitsWeighted-Average Grant Date Fair Value Per ShareRestricted Stock AwardsWeighted-Average Grant Date Fair Value Per ShareDeferred Stock UnitsWeighted-Average Grant Date Fair Value Per Unit
Unvested at January 1, 202472,354 $24.61 30,030 $11.18 — $— 
   Granted75,222 24.13 12,040 31.46 — — 
   Forfeited(2,534)24.37 — — — — 
   Vested(14,294)24.52 (30,030)11.18 — — 
Unvested at December 31, 2024130,748 $24.35 12,040 $31.46 — $— 

At December 31, 2024, the total unrecognized compensation cost related to unvested stock-based awards was $2.0 million with a weighted-average expense recognition period of 1.6 years.

2013 Equity Incentive Plan
 
The 2013 Plan authorized the issuance of 750,000 shares of the Company’s common stock in the form of stock-based awards to employees, directors and other eligible persons. Although outstanding stock-based awards under the 2013 Plan remain in place according to their terms, our authority to grant new awards under the 2013 Plan terminated upon shareholder approval of the 2022 Plan.

Award Activity Under 2013 Plan
The Company recorded $0.3 million, $0.4 million and $2.0 million of share-based compensation expense for the years ended December 31, 2024, 2023 and 2022, respectively, related to stock-based awards under the 2013 Plan.

The following table summarizes the stock-based award activity under the 2013 Plan for the year ended December 31, 2024:
Restricted Stock UnitsWeighted-Average Grant Date Fair Value Per ShareRestricted Stock AwardsWeighted-Average Grant Date Fair Value Per ShareDeferred Stock UnitsWeighted-Average Grant Date Fair Value Per Unit
Unvested at January 1, 202453,985 $39.86 — $— — $— 
   Forfeited(22,899)30.58 — — — — 
   Vested(8,089)46.64 — — — — 
Unvested at December 31, 202422,997 $46.71 — $— — $— 
As of December 31, 2024, the total unrecognized compensation cost related to unvested awards was less than $0.1 million with a weighted-average expense recognition period of 0.1 years.
 
Directors Deferred Stock Plan
 
Until January 1, 2014, the Company had a stock compensation plan for non-employee members of the Board of Directors (“Directors Deferred Stock Plan”). The Company reserved 180,000 shares of common stock that could have been issued pursuant to the Directors Deferred Stock Plan. The plan provided directors the option to elect to receive up to 100% of their annual retainer in either common stock or deferred stock rights. Deferred stock rights were to be settled in common stock following the end of the deferral period payable on the basis of one share of common stock for each deferred stock right.

The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the year ended December 31, 2024.
Deferred Rights
Outstanding, beginning of year28,538 
Granted283 
Outstanding, end of year28,821 
All deferred stock rights granted during 2024 were additional rights issued in lieu of cash dividends payable on outstanding deferred stock rights.
v3.25.0.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
The provision for income taxes consists of the following:
December 31,
 202420232022
Current$3,623 $876 $(73)
Deferred(1,357)(4,353)4,632 
Total$2,266 $(3,477)$4,559 
 
Income tax provision is reconciled to the statutory 21 % rate applied to pre-tax income.
 
December 31,
 202420232022
Statutory rate times pre-tax income$5,784 $1,037 $8,421 
(Subtract) add the tax effect of: 
Income from tax-exempt securities and loans(3,500)(3,951)(4,190)
State income tax, net of federal tax effect47 (30)592 
Bank-owned life insurance(262)(215)(201)
Tax credits(110)(168)(143)
Other differences307 (150)80 
Total income taxes$2,266 $(3,477)$4,559 
 
The net deferred tax asset at December 31, 2024 and 2023 consists of the following: 
December 31,
 20242023
Deferred tax assets (liabilities)  
Allowance for credits losses$10,824 $9,847 
Net unrealized losses on available-for-sale securities and hedged items9,753 8,776 
Fair value adjustments(14,002)(12,101)
Depreciation(4,168)(4,306)
Deferred compensation and accrued payroll1,486 1,228 
Loan origination costs(1,533)(1,379)
Prepaid assets(916)(806)
Net operating loss9,962 13,309 
Tax credits1,956 711 
Other(309)335 
Total deferred tax assets, net$13,053 $15,614 

As of December 31, 2024 and 2023 the Company had federal net operating loss (“NOL”) carryforwards of approximately $54.0 million and $57.2 million, respectively, and no state NOL carryforwards for December 31, 2024 and $8.5 million for December 31, 2023. For federal income tax purposes, the NOL has no expiration period; however, for state income tax purposes, the NOL may have varying expiration periods. The Company expects to generate sufficient taxable income in the future to utilize the loss generated.

As of December 31, 2024 the Company had general business credits of $0.3 million that will begin expiring in 2044 and qualified zone academy bonds credits of $0.4 million that will begin expiring in 2025. The Company has state tax credits of $0.3 million that will begin expiring in 2029.
v3.25.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
 
In the normal course of business, the Company may enter into transactions with various related parties. In management’s opinion, such loans, other extensions of credit, and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than the normal risk of collectability or present other unfavorable features.

Related party loans and extensions of credit at December 31, 2024 and 2023 totaled $47.7 million and $45.9 million, respectively.

The following table presents the change in related party loans as of December 31, 2024 and 2023.

Twelve Months Ended
December 31, 2024December 31, 2023
Balance at the beginning of period$45,926 $21,860 
New term loans— 19,139 
Additions1,753 4,956 
Repayment of term loans(13)(12)
Changes in balances of revolving lines of credit(17)
Balance at end of period$47,671 $45,926 
 
Deposits from related parties held by the Company at December 31, 2024 and 2023 totaled $31.9 million and $28.3 million, respectively.
v3.25.0.1
Regulatory Capital Requirements
12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
Regulatory Capital Requirements Regulatory Capital Requirements
 
The Company and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors.

The Basel III Capital Rules became effective for the Company and the Bank on January 1, 2015, subject to a phase-in period for certain provisions. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital and Total capital, as defined in the regulations, to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets (“Leverage Ratio”).

The Basel III Capital Rules were fully phased in on January 1, 2019 and require the Company and the Bank to maintain: 1) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 4.5%, plus a 2.5% “capital conservation buffer” (resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 7.0%); 2) a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5%); 3) a minimum ratio of Total capital to risk-weighted assets of 8.0%, plus the capital conservation buffer (resulting in a minimum Total capital ratio of 10.5%); and 4) a minimum Leverage Ratio of 4.0%.

The capital conservation buffer is designed to absorb losses during periods of economic stress. Failure to maintain the minimum Common Equity Tier 1 capital ratio plus the capital conservation buffer will result in potential restrictions on a banking institution’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees.
The following tables present actual and required capital ratios as of December 31, 2024 and 2023 for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2024 and 2023 based on the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

As permitted by the federal banking regulatory agencies, the Company has elected the option to delay the impact of the day one adoption of ASC 326. The transition adjustments of $4.5 million are phased into the regulatory capital calculations over a three-year period, with 25% of the adjustment recognized in 2023, 50% of the adjustment recognized in 2024, 75% of the adjustment recognized in 2025 and 100% of the adjustment recognized in 2026.

ActualMinimum Capital Required - Basel III Minimum Required to be Considered Well Capitalized
Capital AmountRatioCapital AmountRatioCapital AmountRatio
As of December 31, 2024:
Common equity tier 1 capital to risk-weighted assets
Consolidated $400,100 9.30 %$301,052 7.00 %N/AN/A
Bank475,793 11.11 %299,774 7.00 %$278,362 6.50 %
Tier 1 capital to risk-weighted assets
Consolidated 400,100 9.30 %365,563 8.50 %N/AN/A
Bank475,793 11.11 %364,012 8.50 %342,599 8.00 %
Total capital to risk-weighted assets
Consolidated 542,808 12.62 %451,578 10.50 %N/AN/A
Bank520,610 12.16 %449,662 10.50 %428,249 10.00 %
Leverage ratio
Consolidated 400,100 6.90 %232,011 4.00 %N/AN/A
Bank475,793 8.23 %231,331 4.00 %289,164 5.00 %
ActualMinimum Capital Required - Basel III Minimum Required to be Considered Well Capitalized
Capital AmountRatioCapital AmountRatioCapital AmountRatio
As of December 31, 2023:
Common equity tier 1 capital to risk-weighted assets
Consolidated $381,001 9.60 %$277,914 7.00 %N/AN/A
Bank464,390 11.73 %277,063 7.00 %$257,273 6.50 %
Tier 1 capital to risk-weighted assets
Consolidated 381,001 9.60 %337,467 8.50 %N/AN/A
Bank464,390 11.73 %336,434 8.50 %316,644 8.00 %
Total capital to risk-weighted assets
Consolidated 525,283 13.23 %416,870 10.50 %N/AN/A
Bank503,834 12.73 %415,595 10.50 %395,804 10.00 %
Leverage ratio
Consolidated 381,001 7.33 %207,929 4.00 %N/AN/A
Bank464,390 8.95 %207,479 4.00 %259,349 5.00 %
v3.25.0.1
Commitments and Credit Risk
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Credit Risk Commitments and Credit Risk
 
In the normal course of business, the Company makes various commitments to extend credit which are not reflected in the accompanying consolidated financial statements. At December 31, 2024 and 2023, the Company had outstanding loan commitments totaling approximately $667.7 million and $755.4 million, respectively.
v3.25.0.1
Fair Value of Financial Instruments
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
 
ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASU Topic 820 also specifies a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
 
Level 1    Quoted prices in active markets for identical assets or liabilities
 
Level 2    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 for substantially the full term of the assets or liabilities
 
Level 3    Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
 
Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.
 
Available-for-Sale Securities
 
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. The Company did not own any securities classified within Level 1 of the hierarchy as of December 31, 2024 or December 31, 2023.

Level 2 securities include U.S. Government-sponsored agencies, municipal securities, mortgage and asset-backed securities and corporate securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities.

In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair values are calculated using discounted cash flows. Discounted cash flows are calculated based off of the anticipated future cash flows updated to incorporate loss severities. Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation. The Company did not own any securities classified within Level 3 of the hierarchy as of December 31, 2024 or December 31, 2023.
Servicing Asset

Fair value is based on a loan-by-loan basis taking into consideration the origination to maturity dates of the loans, the current age of the loans and the remaining term to maturity. The valuation methodology utilized for the servicing asset begins with generating estimated future cash flows for each servicing asset based on their unique characteristics and market-based assumptions for prepayment speeds and costs to service. The present value of the future cash flows is then calculated utilizing market-based discount rate assumptions (Level 3).

Interest Rate Swaps

The fair values of interest rate swap agreements are estimated using current market interest rates as of the balance sheet date and calculated using discounted cash flows that are observable or that can be corroborated by observable market data (Level 2).

Interest Rate Swap Agreements Back-to-Back

The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable-to-fixed interest rate contract with the customer. The Company also enters into an offsetting interest rate swap with a correspondent bank. These back-to-back swap agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach. The fair value assets and liabilities of centrally cleared interest rate swaps are net of variation margin settled-to-market (Level 2).

Interest Rate Lock Commitments

The fair values of IRLCs are determined using the projected sale price of individual loans based on changes in market interest rates, projected pull-through rates (the probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level 3).
The following tables present the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2024 and 2023.
December 31, 2024
Fair Value Measurements Using
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
   U.S. Government-sponsored agencies$82,816 $— $82,816 $— 
   Municipal securities63,654 — 63,654 — 
   Agency mortgage-backed securities - residential269,641 — 269,641 — 
   Agency mortgage-backed securities - commercial63,331 — 63,331 — 
Private label mortgage-backed securities - residential45,821 — 45,821 — 
   Asset-backed securities
23,821 — 23,821 — 
Corporate securities38,271 — 38,271 — 
Total available-for-sale securities$587,355 $— $587,355 $— 
Servicing asset16,389 — — 16,389 
Interest rate swap agreements - assets (back-to-back)200 — 200 — 
Interest rate swap agreements - liabilities (back-to-back)(200)— (200)— 
 
December 31, 2023
Fair Value Measurements Using
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
   U.S. Government-sponsored agencies$95,177 $— $95,177 $— 
   Municipal securities68,446 — 68,446 — 
   Agency mortgage-backed securities - residential206,649 — 206,649 — 
   Agency mortgage-backed securities - commercial38,885 — 38,885 — 
Private label mortgage-backed securities - residential20,779 — 20,779 — 
   Asset-backed securities
8,081 — 8,081 — 
Corporate securities36,838 — 36,838 — 
Total available-for-sale securities$474,855 $— $474,855 $— 
Servicing asset10,567 — — 10,567 
Interest rate swaps assets5,139 — 5,139 — 
Interest rate swap agreements - assets (back-to-back)677 — 677 — 
Interest rate swap agreements - liabilities (back-to-back)(677)— (677)— 
  
The following table reconciles the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs. 
 Servicing AssetInterest Rate Lock Commitments
Balance as of January 1, 2022$4,702 $718 
Total realized gains
           Additions3,192 — 
Paydowns(1,135)— 
Change in fair value(504)(585)
Balance, December 31, 20226,255 133 
Total realized gains
           Additions5,775 — 
Paydowns(1,842)— 
Change in fair value379 (133)
Balance, December 31, 202310,567 — 
Total realized gains
           Additions8,359 — 
Paydowns(3,005)— 
Change in fair value468 — 
Balance, December 31, 2024$16,389 $— 
  
The following describes the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis, as well as the general classification of such assets pursuant to the valuation hierarchy.
 
Individually Analyzed Collateral Dependent Loans

Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. The amount of impairment may be determined based on the fair value of the underlying collateral, less costs to sell, the estimated present value of future cash flows or the loan’s observable market price.

If the individually evaluated loan is identified as collateral dependent, the fair value of the underlying collateral, less costs to sell, is used to measure impairment. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the individually evaluated loan is not collateral dependent, the Company utilizes a discounted cash flow analysis to measure impairment.

Individually evaluated loans with a specific valuation allowance based on the value of the underlying collateral or a discounted cash flow analysis are classified as Level 3 assets.
The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at December 31, 2024 and December 31, 2023.

December 31, 2024
Fair Value Measurements Using
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Collateral dependent loans$4,296 $— $— $4,296 

December 31, 2023
Fair Value Measurements Using
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Collateral dependent loans$2,799 $— $— $2,799 

Significant (Level 3) Inputs
 
The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

Fair Value at
December 31, 2024
Valuation
Technique
Significant Unobservable
Inputs
RangeWeighted-Average Range
Collateral dependent loans$4,296 
Fair value of collateral
Discount for type of property and current market conditions
0% - 75%
24.2%
Servicing asset
16,389 
Discounted cash flow

Prepayment speeds

Discount rate

0% - 25%

14%

11.7%

14%


Fair Value at
December 31, 2023
Valuation
Technique
Significant Unobservable
Inputs
RangeWeighted - Average Range
Collateral dependent loans$2,799 Fair value of collateralDiscount for type of property and current market conditions
0% - 90%
28%
Servicing asset10,567 Discounted cash flowPrepayment speeds

Discount rate
0% - 25%

15%
11.3%

15%
 
The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying consolidated balance sheets at amounts other than fair value:
 
Cash and Cash Equivalents
 
For these instruments, the carrying amount is a reasonable estimate of fair value.
Securities Held-to-Maturity

Where quoted market prices are available in an active market, securities are classified within Level 1 of the
valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. The Company did not own any securities classified within Level 1 of the hierarchy as of December 31, 2024 or December 31, 2023.

Level 2 securities include agency mortgage-backed securities - residential, municipal securities and corporate securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities.

In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the
hierarchy. Fair values are calculated using discounted cash flows. Discounted cash flows are calculated based off of
the anticipated future cash flows updated to incorporate loss severities. Rating agency and industry research reports
as well as default and deferral activity are reviewed and incorporated into the calculation. The Company did not
own any securities classified within Level 3 of the hierarchy as of December 31, 2024 or December 31, 2023.
Loans Held-for-Sale
 
For loans that are sold in an active secondary market, the fair value of these loans is estimated based on secondary market price indications for loans with similar interest rate and maturity characteristics. The fair value of other loans held-for-sale approximates carrying value.

Net Loans
 
The fair value of loans is estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors.
 
Accrued Interest Receivable
 
The fair value of these financial instruments approximates carrying value.
 
Federal Home Loan Bank of Indianapolis Stock
 
The fair value of this financial instrument approximates carrying value.
 
Deposits
 
The fair value of noninterest-bearing and interest-bearing demand deposits, savings accounts and money market accounts approximates carrying value. The fair value of fixed maturity certificates of deposit and brokered deposits are estimated using rates currently offered for deposits of similar remaining maturities.
 
Advances from Federal Home Loan Bank
 
The fair value of fixed rate advances is estimated using rates currently offered for similar remaining maturities. The carrying value of variable rate advances approximates fair value.

Subordinated Debt
 
The fair value of the Company’s publicly traded subordinated debt is obtained from quoted market prices. The fair value of the Company’s remaining subordinated debt is estimated using discounted cash flow analysis based on current borrowing rates for similar types of debt instruments.
 
Accrued Interest Payable
 
The fair value of these financial instruments approximates carrying value.
Commitments
 
The fair value of commitments to extend credit are based on fees currently charged to enter into similar agreements with similar maturities and interest rates. The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at December 31, 2024 and 2023.
 

The following tables provide the carrying amounts and estimated fair values of the Company's financial instruments at December 31, 2024 and 2023:
 December 31, 2024
 Fair Value Measurements Using
Carrying
Amount
Fair ValueQuoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$466,410 $466,410 $466,410 $— $— 
Securities held-to-maturity249,796 228,851 — 228,851 — 
Loans held-for-sale54,695 58,510 — 58,510 — 
Net loans4,125,877 3,935,009 — — 3,935,009 
Accrued interest receivable28,180 28,180 28,180 — — 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 — 28,350 — 
Deposits4,933,206 4,943,961 2,236,724 — 2,707,237 
Advances from Federal Home Loan Bank295,000 291,208 — 291,208 — 
Subordinated debt105,150 103,062 37,059 66,003 — 
Accrued interest payable2,495 2,495 2,495 — — 

 December 31, 2023
 Fair Value Measurements Using
Carrying
Amount
Fair ValueQuoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$405,898 $405,898 $405,898 $— $— 
Securities held-to-maturity227,153 207,572 — 207,572 — 
Loans held-for-sale 22,052 22,052 — 22,052 — 
Net loans3,801,446 3,611,909 — — 3,611,909 
Accrued interest receivable26,746 26,746 26,746 — — 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 — 28,350 — 
Deposits4,066,973 4,059,447 1,796,123 — 2,263,324 
Advances from Federal Home Loan Bank614,934 605,366 — 605,366 — 
Subordinated debt104,838 102,632 32,560 70,072 — 
Accrued interest payable3,848 3,848 3,848 — — 
v3.25.0.1
Mortgage Banking Activities
12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
Mortgage Banking Activities Mortgage Banking Activities
The Bank’s residential real estate lending business originated mortgage loans for customers and typically sold a majority of the originated loans into the secondary market. For most of the mortgages sold in the secondary market, the Bank hedged its mortgage banking pipeline by entering into forward contracts for the future delivery of mortgage loans to third party investors and entering into IRLCs with potential borrowers to fund specific mortgage loans that would be sold into the secondary market. To facilitate the hedging of the loans, the Bank elected the fair value option for loans originated and intended for sale in the secondary market under mandatory pricing agreements. Changes in the fair value of loans held-for-sale, IRLCs and forward contracts are recorded in the mortgage banking activities line item within noninterest income. Refer to Note 18 for further information on derivative financial instruments. 

During the year ended December 31, 2024, the Company had no mortgage loans held-for-sale or sold into the secondary market. During the years ended December 31, 2023 and 2022, the Company originated mortgage loans held-for-sale of $36.3 million, and $388.0 million, respectively, and received $46.5 million, and $411.5 million from the sale of mortgage loans, respectively, into the secondary market. During the first quarter 2023, the Company made the decision to exit the residential mortgage business.

The following table provides the components of income from mortgage banking activities for the years ended December 31, 2024, 2023 and 2022.

Year Ended December 31,
202420232022
Gain on loans sold$— $471 $6,101 
Loss resulting from the change in fair value of loans held-for-sale— (143)(184)
Loss resulting from the change in fair value of derivatives— (252)(453)
Net revenue from mortgage banking activities$— $76 $5,464 
v3.25.0.1
Derivative Financial Instruments
12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
 
The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position. Additionally, the Company entered into forward contracts for the future delivery of mortgage loans to third-party investors and entered into IRLCs with potential borrowers to fund specific mortgage loans that were sold into the secondary market. The forward contracts were entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans.

The Company had various interest rate swap agreements designated and qualifying as accounting hedges during the reported periods. Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses in the consolidated statements of income within the same period that the hedged item affects earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps. For derivative instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax. The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets, while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets.

The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable-to-fixed interest rate contract with the customer. The Company also enters into an offsetting interest rate swap with a correspondent bank. These back-to-back swap agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach.

The IRLCs and forward contracts are not designated as accounting hedges and were recorded at fair value with changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value were reported in accrued income and other assets in the consolidated balance sheets, while derivative instruments with a negative fair value were reported in accrued expenses and other liabilities in the consolidated balance sheets.

The following table presents amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of December 31, 2024 and 2023.
 Carrying amount of the hedged assetsCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets
Line item in the consolidated balance sheet in which the hedged item is included
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Securities available-for-sale1
$— $69,504 $— $(1,143)

1 These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. No amounts were hedged as of December 31, 2024. The amount of the designated hedged items was $50.0 million as of December 31, 2023.

In November 2024, the Company’s interest rate swap derivative designated as fair value hedges matured. As a result, the Company has no remaining fair value hedge exposure at December 31, 2024. The following table presents a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company's asset/liability management activities at December 31, 2023, identified by the underlying interest rate-sensitive instruments
December 31, 2023Weighted Average Remaining Maturity (years)Weighted-Average Rate
Instruments Associated With
Notional ValueFair ValueReceivePay
Securities available-for-sale$50,000 0.8$1,153 3 month SOFR2.33%
           Total swap portfolio at December 31, 2023
$50,000 0.8$1,153 3 month SOFR2.33%

In December 2024, the Company terminated interest rate swaps utilized as cash flow hedges against Federal Home Loan Bank advances, which resulted in swap termination receipts from counterparties of $2.9 million. Given the Company had no further liability exposure to the underlying index hedged, the Company reclassified this amount from accumulated other comprehensive loss to the consolidated statements of income and recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.

In March 2021, the Company terminated the last of layer interest rate swaps associated with available-for-sale agency mortgage-backed securities - residential, which resulted in swap termination payments to counterparties totaling $1.9 million. The corresponding fair value hedging adjustment was allocated pro-rata to the underlying hedged securities and is being amortized over the remaining lives of the designated securities. The Company had amortization expense totaling $0.1 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively, which was recognized as a reduction to interest income on securities.

In June 2020, the Company terminated all fair value hedging relationships associated with loans, which resulted in swap termination payments to counterparties totaling $46.1 million. The corresponding loan fair value hedging adjustment as of the date of termination is being amortized over the remaining lives of the designated loans, which have a weighted average term to maturity of 9.6 years as of December 31, 2024. During the years ended December 31, 2024 and 2023, amortization expense totaling $4.9 million and $4.7 million, respectively, related to these previously terminated fair value hedges was recognized as a reduction to interest income on loans.

The following table presents a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company's asset/liability management activities at December 31, 2023.

December 31, 2023Weighted Average Remaining Maturity (years)Weighted-Average Rate
Cash Flow Hedges
Notional ValueFair ValueReceivePay
Interest rate swaps$110,000 3.1$3,596 3 month SOFR2.88%
Interest rate swaps40,000 0.4390 Fed Funds Effective2.78%

These derivative financial instruments were entered into for the purpose of managing the interest rate risk of certain assets and liabilities. As of December 31, 2024, the Company received no cash collateral from counterparties as security for their obligations related to these swap transactions. As of December 31, 2023, the Company received $5.2 million of cash collateral from counterparties as security for their obligations related to these swap transactions. The Company had no pledged cash collateral as of December 31, 2024 and December 31, 2023 to counterparties on interest rate swap agreements as security for its obligations related to these agreements. Collateral posted and received is dependent on the market valuation of the underlying hedges.

The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at December 31, 2024 and 2023.
 December 31, 2024December 31, 2023
 Notional
Amount
Fair
Value
Notional
Amount
Fair
Value
Asset Derivatives    
Derivatives designated as hedging instruments
Interest rate swaps associated with securities available-for-sale$— $— $50,000 $1,153 
Interest rate swaps associated with liabilities— — 150,000 3,986 
Derivatives not designated as hedging instruments    
Back-to-back swaps27,214 200 1,778 677 
      Total contracts$27,214 $200 $201,778 $5,816 
Liability Derivatives
Derivatives not designated as hedging instruments
Back-to-back swaps$27,214 $(200)$1,778 $(677)
      Total contracts$27,214 $(200)$1,778 $(677)
  
The fair values of interest rate swaps were estimated using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date. Refer to “Note 16 - Fair Value of Financial Instruments” for additional information.

Back-to-back swaps consist of two interest-rate swaps (a customer swap and an offsetting counterparty swap). As a result of this offsetting relationship, no net gains or losses are recognized in income.

The following table presents the effects of the Company's cash flow hedge relationships on the consolidated statements of comprehensive income during the twelve months ended December 31, 2024, 2023 and 2022.

 Amount of (Loss) / Gain Recognized in Other Comprehensive Income in the Twelve Months Ended
 December 31, 2024December 31, 2023December 31, 2022
Interest rate swap agreements$— $(2,566)$19,091 


The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the consolidated statements of income for the twelve months ended December 31, 2024, 2023 and 2022.

 Amount of (Loss) / Gain Recognized in the Twelve Months Ended
 December 31, 2024December 31, 2023December 31, 2022
Asset Derivatives  
Derivatives not designated as hedging instruments   
Forward contracts$— $— $127 
Liability Derivatives  
Derivatives not designated as hedging instruments  
IRLCs$— $(133)$(585)
Forward contracts— (119)— 
The following table presents the effects of the Company's interest rate swap agreements on the consolidated statements of income during the twelve months ended December 31, 2024, 2023 and 2022.

Line item in the consolidated statements of income
December 31, 2024December 31, 2023December 31, 2022
Interest income
Securities - non-taxable$1,367 $1,471 $(244)
Total interest income
1,367 1,471 (244)
Interest expense   
Deposits(424)(1,671)1,125 
Other borrowed funds(2,833)(2,622)1,110 
Total interest expense
(3,257)(4,293)2,235 
Net interest income
$4,624 $5,764 $(2,479)
Noninterest income
Other1
$2,904 $— $— 
     Total noninterest income$2,904 $— $— 

1 The Company recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.
v3.25.0.1
Shareholders' Equity
12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Equity
On December 19, 2022, the Company's Board of Directors approved a stock repurchase program that authorized the repurchase of up to $25.0 million of our outstanding common stock from time to time on the open market or in privately negotiated transactions. The stock repurchase authorization expired on December 31, 2024. Under the program, the Company repurchased 559,522 shares of common stock, at an average price of $19.06, for a total investment of $10.7 million.
v3.25.0.1
Accumulated Other Comprehensive Income (Loss)
12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive loss, included in stockholders' equity, are presented in the table below.
Available-For-Sale SecuritiesUnrealized Losses on Debt Securities Transferred from Available-for-Sale to Held-to-MaturityCash Flow HedgesTotal
Balance, January 1, 2022$(2,555)$— $(8,484)$(11,039)
Net unrealized holding (losses) gains recorded within other comprehensive income before income tax(42,336)— 19,091 (23,245)
Reclassification of securities available-for-sale to held-to-maturity— (5,402)— (5,402)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity— 844— 844 
Other comprehensive (loss) income before tax(42,336)(4,558)19,091 (27,803)
Income tax (benefit) provision(9,060)(1,039)4,893 (5,206)
Other comprehensive (loss) income- net of tax(33,276)(3,519)14,198 (22,597)
Balance, December 31, 2022$(35,831)$(3,519)$5,714 $(33,636)
Net unrealized holding gains (losses) recorded within other comprehensive income before income tax$7,339 $— $(2,566)$4,773 
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity— 778 — 778 
Other comprehensive income (loss) before tax7,339 778 (2,566)5,551 
Income tax provision (benefit)1,682 198 (590)1,290 
Other comprehensive income (loss) - net of tax5,657 580 (1,976)4,261 
Balance, December 31, 2023$(30,174)$(2,939)$3,738 $(29,375)
Net unrealized holding losses recorded within other comprehensive income before income tax$(1,039)$— $(1,082)$(2,121)
Reclassification of gain on termination of interest rate swaps— — (2,904)(2,904)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity— 789 — 789 
Other comprehensive (loss) income before tax(1,039)789 (3,986)(4,236)
Income tax (benefit) provision(800)90 (248)(958)
Other comprehensive (loss) income- net of tax(239)699 (3,738)(3,278)
Balance, December 31, 2024$(30,413)$(2,240)$— $(32,653)
v3.25.0.1
Condensed Financial Information (Parent Company Only)
12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information (Parent Company Only) Condensed Financial Information (Parent Company Only)
Presented below is condensed financial information as to financial position, results of operations, and cash flows of the Company on a non-consolidated basis:
 
Condensed Balance Sheets 
 Year Ended December 31,
 20242023
Assets  
Cash and cash equivalents$12,997 $11,593 
Investment in common stock of subsidiaries458,025 444,221 
Accrued income and other assets19,983 14,127 
Total assets$491,005 $469,941 
Liabilities and shareholders’ equity  
Subordinated debt, net of unamortized discount and debt issuance costs of $1,850 and $2,162 in 2024 and 2023, respectively
$105,150 $104,838 
Accrued expenses and other liabilities1,792 2,308 
Total liabilities106,942 107,146 
Shareholders’ equity384,063 362,795 
Total liabilities and shareholders’ equity$491,005 $469,941 
Condensed Statements of Income 
 Year Ended December 31,
 202420232022
Income
Dividends from bank subsidiary$16,000 $12,000 $8,000 
Other905 188 285 
Total income16,905 12,188 8,285 
Expenses   
Interest on borrowings6,021 5,376 5,371 
Salaries and employee benefits1,223 1,203 1,147 
Consulting and professional fees1,937 1,572 1,814 
Premises and equipment45 126 201 
Other250 280 134 
Total expenses9,476 8,557 8,667 
Income (loss) before income tax and equity in undistributed net income of subsidiaries7,429 3,631 (382)
Income tax benefit(2,080)(1,817)(1,874)
Income before equity in undistributed net income of subsidiaries9,509 5,448 1,492 
Equity in undistributed net income of subsidiaries15,767 2,969 34,049 
Net income$25,276 $8,417 $35,541 
Condensed Statements of Comprehensive Income 
 Year Ended December 31,
 202420232022
Net income$25,276 $8,417 $35,541 
Other comprehensive income (loss)   
Securities available-for-sale
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax(1,039)7,339 (42,336)
Income tax (benefit) provision (800)1,682 (9,060)
Net effect on other comprehensive (loss) income (239)5,657 (33,276)
Securities held-to-maturity
Reclassification of securities from available-for-sale to held-to-maturity— — (5,402)
Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity789 778 844 
Income tax provision (benefit)90 198 (1,039)
Net effect on other comprehensive income (loss)699 580 (3,519)
Cash flow hedges
Net unrealized holding (losses) gains on cash flow hedging derivatives recorded within other comprehensive income before income tax(1,082)(2,566)19,091 
Reclassification of gain on termination of interest rate swaps(2,904)
Income tax (benefit) provision(248)(590)4,893 
Net effect on other comprehensive (loss) income(3,738)(1,976)14,198 
Total other comprehensive (loss) income(3,278)4,261 (22,597)
Comprehensive income$21,998 $12,678 $12,944 
  
Condensed Statements of Cash Flows 
 Year Ended December 31,
 202420232022
Operating activities   
Net income$25,276 $8,417 $35,541 
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries(15,767)(2,969)(34,049)
Depreciation and amortization312 318 329 
Share-based compensation expense363 256 795 
Net change in other assets1,506 (1,819)350 
Net change in other liabilities(522)358 (490)
Net cash provided by operating activities11,168 4,561 2,476 
Investing activities
       Purchase of equity investments(7,221)(3,578)(2,727)
Net cash (used in) provided by investing activities(7,221)(3,578)(2,727)
Financing activities   
      Cash dividends paid(2,078)(2,156)(2,317)
Repurchase of common stock(283)(9,340)(27,780)
      Other, net(182)(153)(250)
Net cash (used in) provided by financing activities(2,543)(11,649)(30,347)
Net increase (decrease) in cash and cash equivalents1,404 (10,666)(30,598)
Cash and cash equivalents at beginning of year11,593 22,259 52,857 
Cash and cash equivalents at end of year$12,997 $11,593 $22,259 
v3.25.0.1
Segment Reporting
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Disclosure Segment Information
The Company operates as a single reportable segment, managing the business and assessing financial performance on a consolidated basis. While there are several lines of business within the operating segment, they are closely interrelated and cannot operate independently. Accordingly, the CODM evaluates operations and financial performance on a Company-wide basis and all of the Company’s operations are aggregated into one reportable operating segment.

The CODM regularly receives and reviews the Company’s net income on a consolidated basis and uses key metrics to evaluate the overall performance of the Company and make decisions regarding the allocation of resources. Additionally, the CODM reviews budget-to-actual variances to analyze these profit measures as a single operating segment.

The function of CODM is performed by the Finance Committee. This Committee consists of the highest level of management that is responsible for the Company’s overall resource allocation and performance. The Finance Committee includes the Chairman and Chief Executive Officer, President and Chief Operating Officer and Executive Vice President and Chief Financial Officer.
v3.25.0.1
Recent Accounting Pronouncements
12 Months Ended
Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements 
ASU 2023-02 - Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (March 2023)

In March 2023, the FASB issued ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. This ASU permits companies to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The Company adopted this guidance on January 1, 2024 and it did not have a material impact on its consolidated financial statements.


ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segments (November 2023)

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segments. This ASU enhances financial reporting by requiring disclosure of incremental segment information on an annual and interim basis. The guidance is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company adopted this guidance in 2024 and it did not have a material impact on its consolidated financial statements.

ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures (December 2023)

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. This ASU enhances the transparency and usefulness of income tax disclosures, which addresses investor requests for more transparency about income tax disclosures related primarily to the rate reconciliation and income taxes paid information. The guidance is effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

ASU 2024-03 - Income Statement-Reporting Comprehensive Income - Expense Disaggregations Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (November 2024)
In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregations Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures of the nature of expenses included in the Company’s income statement. The new standard requires disclosures about specific types of expenses included the income statement. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) Attributable to Parent $ 25,276 $ 8,417 $ 35,541
v3.25.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We believe that cybersecurity and the protection of data and customer information in our possession, custody or control is of paramount importance to our business. The Company’s information security program is designed to protect the confidentiality, integrity, and availability of our critical systems and information, including customer information. The program is comprised of policies, procedures, and programs, and is informed by and intended to align with the interagency guidance issued by banking regulators as well as the FFIEC Information Security Booklet and Cybersecurity Assessment Tool (the “Information Security Program”). This does not imply that we meet any particular technical standards, specifications, or requirements, but rather that we use the guidance to help us identify, assess, and manage cybersecurity risks relevant to our business.

Cybersecurity Risk Management and Strategy

Our Information Security Program is integrated into our risk management program and is aligned to the Company’s business strategy and Enterprise Risk Management program. It shares common methodologies, reporting channels and governance processes that apply to other areas of enterprise risk, including legal, compliance, strategic, operational, and financial risk. Key elements of our Information Security Program include:

risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise information technology environment are conducted on at least an annual basis;
internal testing of our security controls and our response to cybersecurity incidents;
the use of external service providers, to assess, test or otherwise assist with aspects of our security controls;
training and awareness programs for all employees that include periodic and ongoing assessments to drive adoption and awareness of cybersecurity processes and controls;
a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents;
maintenance and regular testing of a Business Continuity Plan that includes redundant back-up systems for critical functions;
a physical security program that is tested regularly;
obtaining and maintaining cyber insurance; and
a third-party risk management program for service providers, suppliers, and vendors, that provides for the assessment, monitoring and management of cybersecurity risk presented by the Company’s use of such third parties, as well as contractual protections related to cybersecurity incidents affecting third party vendors and service providers.

The Company engages in a continuous risk monitoring process that seeks to identify the likelihood and impact of internal and external threats to our information security systems and data, and assesses the sufficiency of the controls in place to mitigate these threats to acceptable levels on a risk-based basis. Incidents are reported to and handled under our Incident Response Policy, which designates an incident response team and includes procedures and processes to identify, assess, respond to, mitigate and report on cybersecurity incidents.

The risk and evolving nature of cybersecurity threats, and not a previous cybersecurity incident, has led to the Company to devote significant time and resources to the development and implementation of the Information Security Program described above. Despite our efforts, there can be no assurance that our cybersecurity risk management processes and measures will be fully implemented, complied with, or effective in protecting our systems and information. We face risks from certain cybersecurity threats that, if realized, are reasonably likely to materially affect our business strategy, result of operations or financial condition. Please see Part I, Item 1A Risk Factors for further discussion of the risks associated with an interruption or breach in our information systems or infrastructure.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
Our Information Security Program is integrated into our risk management program and is aligned to the Company’s business strategy and Enterprise Risk Management program. It shares common methodologies, reporting channels and governance processes that apply to other areas of enterprise risk, including legal, compliance, strategic, operational, and financial risk. Key elements of our Information Security Program include:

risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise information technology environment are conducted on at least an annual basis;
internal testing of our security controls and our response to cybersecurity incidents;
the use of external service providers, to assess, test or otherwise assist with aspects of our security controls;
training and awareness programs for all employees that include periodic and ongoing assessments to drive adoption and awareness of cybersecurity processes and controls;
a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents;
maintenance and regular testing of a Business Continuity Plan that includes redundant back-up systems for critical functions;
a physical security program that is tested regularly;
obtaining and maintaining cyber insurance; and
a third-party risk management program for service providers, suppliers, and vendors, that provides for the assessment, monitoring and management of cybersecurity risk presented by the Company’s use of such third parties, as well as contractual protections related to cybersecurity incidents affecting third party vendors and service providers.

The Company engages in a continuous risk monitoring process that seeks to identify the likelihood and impact of internal and external threats to our information security systems and data, and assesses the sufficiency of the controls in place to mitigate these threats to acceptable levels on a risk-based basis. Incidents are reported to and handled under our Incident Response Policy, which designates an incident response team and includes procedures and processes to identify, assess, respond to, mitigate and report on cybersecurity incidents.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board of Directors keeps apprised of and oversees technology risk and cybersecurity of the Company. The Board receives updates from the Company’s Information Security Officer (“ISO”) on a quarterly basis and receives cybersecurity training on at least an annual basis. While the entire Board receives reporting and receives training, the Board has delegated certain specific responsibility for overseeing cybersecurity threats, among other things, to its Risk Committee. Our ISO and Chief Risk Officer provide the Risk Committee and the Company’s internal Enterprise Risk Management Committee periodic and as needed reports on our cybersecurity risks and cybersecurity incidents, if any.
The Risk Committee and the entire Board review and approve the Company’s information security policies and certain other relevant policies on at least an annual basis. Our ISO, who has over twenty-five years of experience in the system, network, and cybersecurity space, is responsible for overseeing and managing the Information Security Program alongside our Chief Information Officer. The Chief Information Officer serves on the Enterprise Risk Management Committee, which is chaired by our Chief Risk Officer. They are supported by our team of technology professionals, who are responsible for information technology security monitoring and for managing the controls designed to identify, detect, protect against, respond to and recover from cybersecurity threats and cybersecurity incidents.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our Board of Directors keeps apprised of and oversees technology risk and cybersecurity of the Company. The Board receives updates from the Company’s Information Security Officer (“ISO”) on a quarterly basis and receives cybersecurity training on at least an annual basis. While the entire Board receives reporting and receives training, the Board has delegated certain specific responsibility for overseeing cybersecurity threats, among other things, to its Risk Committee. Our ISO and Chief Risk Officer provide the Risk Committee and the Company’s internal Enterprise Risk Management Committee periodic and as needed reports on our cybersecurity risks and cybersecurity incidents, if any.
The Risk Committee and the entire Board review and approve the Company’s information security policies and certain other relevant policies on at least an annual basis. Our ISO, who has over twenty-five years of experience in the system, network, and cybersecurity space, is responsible for overseeing and managing the Information Security Program alongside our Chief Information Officer. The Chief Information Officer serves on the Enterprise Risk Management Committee, which is chaired by our Chief Risk Officer. They are supported by our team of technology professionals, who are responsible for information technology security monitoring and for managing the controls designed to identify, detect, protect against, respond to and recover from cybersecurity threats and cybersecurity incidents.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board of Directors keeps apprised of and oversees technology risk and cybersecurity of the Company. The Board receives updates from the Company’s Information Security Officer (“ISO”) on a quarterly basis and receives cybersecurity training on at least an annual basis. While the entire Board receives reporting and receives training, the Board has delegated certain specific responsibility for overseeing cybersecurity threats, among other things, to its Risk Committee. Our ISO and Chief Risk Officer provide the Risk Committee and the Company’s internal Enterprise Risk Management Committee periodic and as needed reports on our cybersecurity risks and cybersecurity incidents, if any.
Cybersecurity Risk Role of Management [Text Block]
Our Board of Directors keeps apprised of and oversees technology risk and cybersecurity of the Company. The Board receives updates from the Company’s Information Security Officer (“ISO”) on a quarterly basis and receives cybersecurity training on at least an annual basis. While the entire Board receives reporting and receives training, the Board has delegated certain specific responsibility for overseeing cybersecurity threats, among other things, to its Risk Committee. Our ISO and Chief Risk Officer provide the Risk Committee and the Company’s internal Enterprise Risk Management Committee periodic and as needed reports on our cybersecurity risks and cybersecurity incidents, if any.
The Risk Committee and the entire Board review and approve the Company’s information security policies and certain other relevant policies on at least an annual basis. Our ISO, who has over twenty-five years of experience in the system, network, and cybersecurity space, is responsible for overseeing and managing the Information Security Program alongside our Chief Information Officer. The Chief Information Officer serves on the Enterprise Risk Management Committee, which is chaired by our Chief Risk Officer. They are supported by our team of technology professionals, who are responsible for information technology security monitoring and for managing the controls designed to identify, detect, protect against, respond to and recover from cybersecurity threats and cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our Board of Directors keeps apprised of and oversees technology risk and cybersecurity of the Company. The Board receives updates from the Company’s Information Security Officer (“ISO”) on a quarterly basis and receives cybersecurity training on at least an annual basis. While the entire Board receives reporting and receives training, the Board has delegated certain specific responsibility for overseeing cybersecurity threats, among other things, to its Risk Committee. Our ISO and Chief Risk Officer provide the Risk Committee and the Company’s internal Enterprise Risk Management Committee periodic and as needed reports on our cybersecurity risks and cybersecurity incidents, if any.
The Risk Committee and the entire Board review and approve the Company’s information security policies and certain other relevant policies on at least an annual basis. Our ISO, who has over twenty-five years of experience in the system, network, and cybersecurity space, is responsible for overseeing and managing the Information Security Program alongside our Chief Information Officer. The Chief Information Officer serves on the Enterprise Risk Management Committee, which is chaired by our Chief Risk Officer. They are supported by our team of technology professionals, who are responsible for information technology security monitoring and for managing the controls designed to identify, detect, protect against, respond to and recover from cybersecurity threats and cybersecurity incidents.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our ISO, who has over twenty-five years of experience in the system, network, and cybersecurity space, is responsible for overseeing and managing the Information Security Program alongside our Chief Information Officer. The Chief Information Officer serves on the Enterprise Risk Management Committee, which is chaired by our Chief Risk Officer. They are supported by our team of technology professionals, who are responsible for information technology security monitoring and for managing the controls designed to identify, detect, protect against, respond to and recover from cybersecurity threats and cybersecurity incidents.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] While the entire Board receives reporting and receives training, the Board has delegated certain specific responsibility for overseeing cybersecurity threats, among other things, to its Risk Committee. Our ISO and Chief Risk Officer provide the Risk Committee and the Company’s internal Enterprise Risk Management Committee periodic and as needed reports on our cybersecurity risks and cybersecurity incidents, if any.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Description of Business
Description of Business
 
The Company was incorporated on September 15, 2005, and consummated a plan of exchange on March 21, 2006, by which the Company became a bank holding company and 100% owner of First Internet Bank of Indiana (the “Bank”).
 
The Bank offers a wide range of commercial, small business, consumer and municipal banking products and services. The Bank conducts its consumer and small business deposit operations primarily through digital channels on a nationwide basis and has no traditional branch offices. The Bank is subject to competition from other financial institutions. The Bank is regulated by certain state and federal agencies and undergoes periodic examinations by those regulatory authorities.
 
The Bank has three wholly owned subsidiaries. JKH Realty Services, LLC was established on August 20, 2012 as a single member limited liability company wholly owned by the Bank to manage other real estate owned properties as needed. First Internet Public Finance Corp., a wholly-owned subsidiary of the Bank, was incorporated on March 6, 2017 and was established to provide municipal finance lending and leasing products to government entities and to purchase, manage, service, and safekeep municipal securities. SPF15, Inc., a wholly-owned subsidiary of the Bank, was incorporated on August 31, 2018 and was established to acquire and hold real estate.
Principles of Consolidation
Principles of Consolidation
 
The consolidated financial statements include the accounts of the Company and its direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s business activities are currently limited to one reporting unit and reportable segment, which is commercial banking.

The Company also evaluates its relationships with other entities to identify whether they represent a variable interest entity (“VIE”). The Company is considered to hold a controlling financial interest in a VIE when it is the primary beneficiary. A primary beneficiary has both: 1) the power to direct the activities that most significantly impact the entity’s economic performance; and 2) and the obligation to absorb losses of, or the right to receive benefits from, an entity that could potentially be significant to the entity. The Company considers all of its economic interests in the VIE when determining whether it has the obligation to absorb losses or the right to receive benefits from the VIE. Certain equity investments held by the Company meet the criteria of a VIE. See Note 3 for additional information on the Company’s equity investments and VIEs.
Segment Information
Segment Information
The Company operates as a single reportable segment. While there are several lines of business within the operating segment, they are closely interrelated and cannot operate independently. Accordingly, the Chief Operation Decision Maker (“CODM”) evaluates operations and financial performance on a Company-wide basis and all of the Company’s operations are aggregated in one reportable operating segment. See Note 22 for additional segment information.
Use of Estimates
Use of Estimates
 
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company utilizes processes that involve the use of significant estimates and the judgment of management in determining the amount of the Company’s allowance for credit losses (“ACL”). Actual results could differ from those estimates.
Securities
Securities
 
The Company classifies its securities in one of three categories and accounts for the investments as follows:

Securities that the Company has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and reported at amortized cost.

Securities that are acquired and held principally for the purpose of selling them in the near term with the objective of generating economic profits on short-term differences in market characteristics are classified as “trading securities” and reported at fair value, with unrealized gains and losses included in earnings. The Company had no securities classified as “trading securities” at December 31, 2024 or 2023.

Securities not classified as either “held-to-maturity” or “trading securities” are classified as “available-for-sale” and reported at fair value, with unrealized gains and losses, after applicable taxes, excluded from earnings and reported in a separate component of shareholders’ equity.

Interest and dividend income, adjusted by amortization of premium or discount, is included in earnings using the effective interest rate method. Purchases and sales of securities are recorded in the consolidated balance sheets on the trade date. Gains and losses from the sale or disposal of securities are recognized as of the trade date in the consolidated statements of income for the period in which securities are sold or otherwise disposed of. Gains and losses on sales of securities are determined using the specific-identification method.
Loans Held for Sale
Loans Held-for-Sale
 
Loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income.

Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan.
Revenue Recognition
Revenue Recognition
 
The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company's principal source of revenue is interest income from loans and leases and investment securities.
Interest income on loans is accrued as earned using the interest method based on unpaid principal balances, except for interest on loans in nonaccrual status. Interest on loans in nonaccrual status is recorded as a reduction of loan principal when received.
 
Premiums and discounts are amortized using the effective interest rate method.
 
Loan fees, net of certain direct origination costs, primarily salaries and wages, are deferred and amortized to interest income as a yield adjustment over the life of the loan.
The Company also earns noninterest income through a variety of financial and transaction services provided to commercial and consumer clients such as sales of the government-guaranteed portion of U.S. Small Business Administration loans, SBA servicing revenue, deposit account, debit card, mortgage banking and portfolio loan sales. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses.
Loans
Loans
 
Loans that management intends to hold until maturity are reported at their outstanding principal balance adjusted for unearned income, charge-offs, the ACL, any unamortized deferred fees or costs on originated loans, unamortized premiums or discounts on purchased loans and any carrying value adjustments related to terminated interest rate swaps associated with loans.
 
For loans recorded at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are recorded in accordance with our revenue recognition policy.

ASU 2016 - 13

On January 1, 2023, the Company adopted ASU 2016-03 Financial Instruments - Credit losses (“ASC 326”): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected credit loss (“CECL”) methodology. The CECL estimate is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures, including loan commitments, standby letters of credit, financial guarantees and other similar instruments. Additionally, ASC 326 resulted in changes to the accounting for available-for-sale debt securities.

The Company adopted ASC 326 for all financial assets measured at amortized cost, available-for-sale securities and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable U.S. GAAP. The Company recorded a net decrease to retained earnings of $4.5 million as of January 1, 2023 for the cumulative effect of adopting ASC 326. The net adjustment to allowance for credit losses (“ACL”) includes $2.3 million related to loans, $1.9 million related to off-balance sheet credit exposures and $0.3 million related to held-to-maturity debt securities.
Modified Loans to Borrowers Experiencing Financial Difficulty

The Company may make modifications to certain loans in order to alleviate temporary difficulties in the borrower’s financial condition and/or constraints on the borrower’s ability to repay the loan, and to minimize potential losses to the Company. Modifications may include changes in the amortization terms of the loan, reductions in interest rates, acceptance of interest only payments, and/or reductions to the outstanding loan balance. Such loans are typically placed on nonaccrual status when there is doubt concerning the full repayment of principal and interest or the loan has been delinquent for a period of 90 days or more. These loans may be returned to accrual status when all contractual amounts past due have been brought current, and the borrower’s performance under the modified terms of the loan agreement and the ultimate collectability of all contractual amounts due under the modified terms is no longer in doubt.
Nonaccrual Loans
 
Any loan which becomes 90 days delinquent or for which the full collection of principal and interest may be in doubt will be considered for nonaccrual status. At the time a loan is placed on nonaccrual status, all accrued but unpaid interest will be reversed from interest income. Placing a loan on nonaccrual status does not relieve the borrower of the obligation to repay interest. A loan placed on nonaccrual status may be restored to accrual status when all delinquent principal and interest has been brought current, and the Company expects full payment of the remaining contractual principal and interest.
Individually Evaluated Loans
 
A loan is individually evaluated, when, based on current information or events, it is probable that the Company will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Payments with delays not exceeding 90 days outstanding generally are not individually evaluated. Certain nonaccrual
and substantially all delinquent loans more than 90 days past due may be individually evaluated. Generally, loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings, unless the loan is well secured and in the process of collection. The accrual of interest on individually evaluated and nonaccrual loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due.
 
Individually evaluated loans include nonperforming loans and also include loans where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection.
 
Accounting Standards Codification (“ASC”) Topic 310, Receivables, requires that individually evaluated loans be measured based on the present value of expected future cash flows discounted at the loans’ effective interest rates or the fair value of the underlying collateral, less costs to sell, and allows existing methods for recognizing interest income.
Policy for Charging Off Loans
 
The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy. A secured loan is generally charged down to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest. An unsecured loan generally is charged off no later than when it is 180 days past due as to principal or interest. A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest.
Allowance for Credit Losses (ACL)
ACL - Available-For-Sale (“AFS”) Debt Securities

For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors, such as interest rates or market conditions. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded. Changes in the ACL are recorded as a provision for, or recovery of, credit loss expense. Losses are charged against the allowance when management believes that uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

ACL - Held-To-Maturity (“HTM”) Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities are excluded from the estimate of credit losses. The Company made the accounting policy election to not measure an ACL for accrued interest. Accrued interest deemed uncollectible will be written off through interest income. The HTM securities portfolio includes municipal securities, residential mortgage-backed-securities, commercial mortgage-backed securities and corporate securities. All residential and commercial mortgage-backed securities are U.S. government issued or sponsored and substantially all municipal and corporate securities are rated investment grade or above.

The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

ACL - Loans

The ACL for loans represents management's estimate of all expected credit losses over the expected life of the Company’s existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past
events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information.

Accrued interest receivable on loans are excluded from the estimate of credit losses. The Company made the accounting policy election to not measure an ACL for accrued interest receivable. Accrued interest deemed uncollectible will be written off through interest income.

ACL - Loans - Collectively Evaluated

The ACL is measured on a collective pool basis when similar risk characteristics exist.

The Company utilizes a discounted cash flow (“DCF”) method to estimate the quantitative portion of the allowance for credit losses for loans evaluated on a collective pooled basis. For each segment, a loss driver analysis is performed in order to identify loss drivers and create a regression model for use in forecasting cash flows.

In creating the DCF model, the Company has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. Due to its limited loss history, the Company elected to use peer data for a more accurate calculation.


Key inputs into the DCF model include loan-level detail, including the amortized cost basis of individual loans, payment structure, loss history, and forecasted loss drivers. The Company utilizes a third party to provide economic forecasts under various scenarios, which are assessed quarterly considering the scenarios in the context of the current economic environment and loss risk.

Expected credit losses are estimated over the contractual term of the loans and adjusted for prepayments when appropriate. The contractual term excludes extensions, renewals, and modifications unless the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Additional key assumptions in the DCF model include the probability of default (“PD”), loss given default (“LGD”), and prepayment/curtailment rates. The Company utilizes the model-driven PD and a LGD derived from a method referred to as Frye Jacobs. The Frye Jacobs method is a mathematical formula that traces the relationship between LGD and PD over time and projects the LGD based on the level of PD forecasted. In all cases, the Frye Jacobs method is utilized to calculate LGDs during the forecast period, reversion period and long-term historical average. Prepayment and curtailment rates were calculated through third party analysis of the Company’s own data.

Qualitative factors for the DCF include the following:
Changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices
Changes in international, national, regional and local conditions
Changes in the nature and volume of the portfolio and terms of loans
Changes in the experience, depth and ability of lending management
Changes in the volume and severity of past due loans and other similar conditions
Changes in the quality of the Company’s loan review system
Changes in the value of underlying collateral for collateral dependent loans
The existence and effect of any concentrations of credit and changes in the levels of such concentrations
The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses

ACL - Loans - Individually Evaluated

Loans that do not share risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation. The Company has determined that any loans which have been placed on nonaccrual status will be
individually evaluated. Individual analysis will establish a specific reserve for loans, if necessary. Specific reserves on nonaccrual loans are typically based on management’s best estimate of the fair value of collateral securing these loans, adjusted for selling costs as necessary.

ACL - Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL for off-balance sheet credit exposure is recorded as a liability and adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Funding rates are based on a historical analysis of the Company’s portfolio, while estimates of credit losses are determined using the same loss rates as funded loans.
Regulatory Capital
Regulatory Capital

As permitted by the federal banking regulatory agencies, the Company has elected the option to delay the impact of the day one adoption of ASC 326. Refer to “Note 14: Regulatory Capital Requirements” for details of the phase-in transition adjustments.
Provision for Credit Losses
Provision for Credit Losses
 
A provision for estimated credit losses is charged to income based upon management’s evaluation of the potential losses. Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term. While management attempts to use the best information available in making its evaluations, future ACL adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations.
Federal Home Loan Bank (FHLB) of Indianapolis Stock
Federal Home Loan Bank (“FHLB”) of Indianapolis Stock
 
Federal law requires a member institution of the FHLB system to hold common stock of its district FHLB according to a predetermined formula. This investment is stated at cost, which represents redemption value, and may be pledged as collateral for FHLB advances.
Property and Equipment
Premises and Equipment
 
Premises and equipment is stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives, which range from three to five years for software and equipment, ten years for land improvements, and 39 years for buildings.
Other Real Estate Owned
Other Real Estate Owned
 
Other real estate owned represents real estate acquired through foreclosure or deed in lieu of foreclosure and is recorded at its fair value less estimated costs to sell. When property is acquired, it is recorded at its fair value at the date of acquisition with any resulting write-down charged against the ACL. Any subsequent deterioration of the property is charged directly to operating expense. Costs relating to the development and improvement of other real estate owned are capitalized, whereas costs relating to holding and maintaining the property are charged to expense as incurred.
Derivative Financial Instruments
Derivative Financial Instruments
 
The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, prior to the Company’s decision to exit its consumer mortgage business in the first quarter 2023, we entered into forward contracts related to our mortgage banking business to hedge the exposures we had from commitments to extend new residential mortgage loans to our customers and from our mortgage loans held-for-sale. The forward contracts were entered into in order to economically hedge the effect of changed interest rates resulting from the Company’s commitment to fund the loans.

Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses in the income statement within the same period that the hedged item affects earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps. For derivative
instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax. The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets.

The interest rate lock commitments (“IRLCs”) and forward contracts are not designated as accounting hedges and are recorded at fair value with changes in fair value reflected in noninterest income in the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets.
Fair Value Measurements
Fair Value Measurements
 
The Company records or discloses certain assets and liabilities at fair value. ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified within one of three levels in a valuation hierarchy. ASC Topic 820 describes three levels of inputs that may be used to measure fair value:
 
Level 1    Quoted prices in active markets for identical assets or liabilities
 
Level 2    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 for substantially the full term of the assets or liabilities
 
Level 3    Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
Income Taxes
Income Taxes
 
Deferred income tax assets and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and the basis of such assets and liabilities as measured by tax laws and regulations. Deferred income tax expense or benefit is based upon the change in deferred tax assets and liabilities from period to period, subject to an ongoing assessment of realization of deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.
 
The Company files income tax returns in the U.S. federal, Indiana, and other state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years before 2019.
 
ASC Topic 740-10, Accounting for Uncertainty in Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company did not identify any material uncertain tax positions that it believes should be recognized in the consolidated financial statements.
Earnings Per Share
Earnings Per Share
 
Earnings per share of common stock is based on the weighted average number of basic shares and dilutive shares outstanding during the year.
Share-based Compensation
Share-based Compensation
 
The Company has a share-based compensation plan using the fair value recognition provisions of ASC Topic 718, Compensation - Stock Compensation. The plan is described more fully in Note 11.
Comprehensive Income
Comprehensive Income
 
Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, unrealized gains and losses on the transfer of securities available-for-sale to securities held-to-maturity, and unrealized gains and losses on cash flow hedges.
 
Reclassification adjustments have been determined for all components of other comprehensive income (loss) reported in the consolidated statements of shareholders’ equity.
Statements of Cash Flows
Statements of Cash Flows
 
Cash and cash equivalents are defined to include cash on-hand, noninterest and interest-bearing amounts due from other banks and federal funds sold. Generally, federal funds are sold for one-day periods. The Company reports net cash flows for customer loan transactions and deposit transactions.
Bank-Owned Life Insurance
Bank-Owned Life Insurance
 
Bank-owned life insurance policies are carried at their cash surrender value. The Company recognizes tax-free income from the periodic increases in the cash surrender value of these policies and from death benefits.
Goodwill
Goodwill
 
Goodwill is tested at least annually for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.
Servicing Asset
Servicing Asset
The servicing asset is related to small business lending loans sold. The servicing asset is recognized at the time of sale when servicing is retained and the income statement effect is recorded in loan servicing revenue. Servicing assets are recorded at fair value in accordance with ASC 860. Fair value is based on a third-party valuation model that calculates the present value of net servicing revenue.
Recent Accounting Pronouncements Recent Accounting Pronouncements 
ASU 2023-02 - Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (March 2023)

In March 2023, the FASB issued ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. This ASU permits companies to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The Company adopted this guidance on January 1, 2024 and it did not have a material impact on its consolidated financial statements.


ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segments (November 2023)

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segments. This ASU enhances financial reporting by requiring disclosure of incremental segment information on an annual and interim basis. The guidance is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company adopted this guidance in 2024 and it did not have a material impact on its consolidated financial statements.

ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures (December 2023)

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. This ASU enhances the transparency and usefulness of income tax disclosures, which addresses investor requests for more transparency about income tax disclosures related primarily to the rate reconciliation and income taxes paid information. The guidance is effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

ASU 2024-03 - Income Statement-Reporting Comprehensive Income - Expense Disaggregations Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (November 2024)
In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregations Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures of the nature of expenses included in the Company’s income statement. The new standard requires disclosures about specific types of expenses included the income statement. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Earnings Per Share
The following is a reconciliation of the weighted average common shares for the basic and diluted earnings per share computations.
Year Ended December 31,
202420232022
Basic earnings per share
Net income available to common shareholders$25,276 $8,417 $35,541 
Weighted average common shares8,690,416 8,837,558 9,530,921 
Basic earnings per common share$2.91 $0.95 $3.73 
Diluted earnings per share
Net income available to common shareholders$25,276 $8,417 $35,541 
Weighted average common shares8,690,416 8,837,558 9,530,921 
Dilutive effect of equity compensation75,309 21,332 64,194 
Weighted average common and incremental shares8,765,725 8,858,890 9,595,115 
Diluted earnings per common share1
$2.88 $0.95 $3.70 

1 Potential dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. There were no antidilutive shares for the year ended December 31, 2024. Excluded from the computation of diluted earnings per share were weighted average antidilutive shares totaling 20,797 and 2,646 for the years ended December 31, 2023 and 2022, respectively.
v3.25.0.1
Securities (Tables)
12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-for-sale Securities Reconciliation
 December 31, 2024
 Amortized CostGross UnrealizedFair Value
GainsLosses
Securities available-for-sale    
U.S. Government-sponsored agencies$83,811 $487 $(1,482)$82,816 
Municipal securities 67,441 — (3,787)63,654 
Agency mortgage-backed securities - residential1
300,914 460 (31,733)269,641 
Agency mortgage-backed securities - commercial64,214 276 (1,159)63,331 
Private label mortgage-backed securities - residential46,623 186 (988)45,821 
Asset-backed securities
23,802 62 (43)23,821 
Corporate securities40,049 71 (1,849)38,271 
Total available-for-sale$626,854 $1,542 $(41,041)$587,355 
 December 31, 2023
 Amortized CostGross UnrealizedFair Value
 GainsLosses
Securities available-for-sale    
U.S. Government-sponsored agencies$96,404 $402 $(1,629)$95,177 
Municipal securities69,494 356 (1,404)68,446 
Agency mortgage-backed securities - residential1
237,798 101 (31,250)206,649 
Agency mortgage-backed securities - commercial40,215 (1,339)38,885 
Private label mortgage-backed securities - residential21,742 144 (1,107)20,779 
Asset-backed securities
8,071 17 (7)8,081 
Corporate securities39,591 25 (2,778)36,838 
Total available-for-sale$513,315 $1,054 $(39,514)$474,855 
Schedule Of Held-To-Maturity Securities Reconciliation
 December 31, 2024
 Amortized CostGross UnrealizedFair ValueAllowance for Credit LossesNet Carrying Value
 GainsLosses
Securities held-to-maturity    
Municipal securities$12,846 $— $(921)$11,925 $(3)$12,843 
Agency mortgage-backed securities - residential201,840 102 (17,530)184,412 — 201,840 
Agency mortgage-backed securities - commercial5,705 — (1,157)4,548 — 5,705 
Corporate securities29,559 — (1,593)27,966 (151)29,408 
Total held-to-maturity$249,950 $102 $(21,201)$228,851 $(154)$249,796 

1 Includes $0.3 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2024.
 December 31, 2023
 Amortized CostGross UnrealizedFair ValueAllowance for Credit LossesNet Carrying Value
 GainsLosses
Securities held-to-maturity    
Municipal securities$13,892 $$(853)$13,040 $(3)$13,889 
Agency mortgage-backed securities - residential166,750 (14,112)152,642 — 166,750 
Agency mortgage-backed securities - commercial5,767 — (1,246)4,521 — 5,767 
Corporate securities41,037 — (3,668)37,369 (290)40,747 
Total held-to-maturity$227,446 $$(19,879)$207,572 $(293)$227,153 

1 Includes $0.4 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2023.
Investments Classified by Contractual Maturity Date
The carrying value of securities at December 31, 2024 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 Available-for-Sale
Amortized
Cost
Fair
Value
Within one year$10,725 $10,684 
One to five years24,017 23,988 
Five to ten years70,946 68,040 
After ten years85,613 82,029 
 191,301 184,741 
Agency mortgage-backed securities - residential300,914 269,641 
Agency mortgage-backed securities - commercial64,214 63,331 
Private label mortgage-backed securities - residential46,623 45,821 
Asset-backed securities23,802 23,821 
Total$626,854 $587,355 

 Held-to-Maturity
 Amortized
Cost
Fair
Value
Within one year$1,808 $1,796 
One to five years24,721 24,071 
Five to ten years12,381 11,013 
After ten years3,495 3,011 
42,405 39,891 
Agency mortgage-backed securities - residential201,840 184,412 
Agency mortgage-backed securities - commercial5,705 4,548 
Total$249,950 $228,851 
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value
The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2024 and 2023:

 December 31, 2024
 Less Than 12 Months12 Months or LongerTotal
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Securities available-for-sale      
U.S. Government-sponsored agencies$16,856 $(111)$29,748 $(1,371)$46,604 $(1,482)
Municipal securities 8,504 (54)52,649 (3,733)61,153 (3,787)
Agency mortgage-backed securities - residential 41,005 (179)169,483 (31,554)210,488 (31,733)
Agency mortgage-backed securities - commercial18,141 (37)12,027 (1,122)30,168 (1,159)
Private label mortgage-backed securities - residential3,003 (14)7,450 (974)10,453 (988)
Asset-backed securities
10,299 (43)— — 10,299 (43)
Corporate securities2,994 (6)27,179 (1,843)30,173 (1,849)
Total$100,802 $(444)$298,536 $(40,597)$399,338 $(41,041)


 December 31, 2023
 Less Than 12 Months12 Months or LongerTotal
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Securities available-for-sale      
U.S. Government-sponsored agencies$41,934 $(161)$24,579 $(1,468)$66,513 $(1,629)
Municipals2,399 (103)36,193 (1,301)38,592 (1,404)
Agency mortgage-backed securities - residential1,089 (5)194,095 (31,245)195,184 (31,250)
Agency mortgage-backed securities - commercial21,561 (50)14,217 (1,289)35,778 (1,339)
Private label mortgage-backed securities - residential3,567 (29)9,114 (1,078)12,681 (1,107)
Asset-backed securities
1,654 (7)— — 1,654 (7)
Corporate securities1,680 (365)24,587 (2,413)26,267 (2,778)
Total$73,884 $(720)$302,785 $(38,794)$376,669 $(39,514)
HTM Portfolio Credit Quality Indicator
The following table summarizes ratings for the Company’s HTM portfolio issued by state and political subdivisions and other securities as of December 31, 2024 and 2023.

December 31, 2024
Held-to-Maturity
Municipal SecuritiesMortgage-Backed Securities - ResidentialMortgage-Backed Securities - CommercialCorporate SecuritiesTotal
AAA equivalent - agency$— $201,840 $5,705 $— $207,545 
Aa1/AA+8,878 — — — 8,878 
Aa2/AA2,175 — — — 2,175 
Aa3/AA-1,793 — — — 1,793 
A2/A— — — 5,000 5,000 
A3/A-— — — — — 
Baa1/BBB+— — — 8,500 8,500 
Baa2/BBB— — — 5,500 5,500 
Baa3/BBB-— — — 8,559 8,559 
Ba1/BB+— — — 2,000 2,000 
   Total$12,846 $201,840 $5,705 $29,559 $249,950 

December 31, 2023
Held-to-Maturity
Municipal SecuritiesMortgage-Backed Securities - ResidentialMortgage-Backed Securities - CommercialCorporate SecuritiesTotal
AAA equivalent - agency$— $166,750 $5,767 $— $172,517 
Aa1/AA+9,917 — — — 9,917 
Aa2/AA1,538 — — — 1,538 
A1/A+1,794 — — — 1,794 
A2/A643 — — 5,000 5,643 
A3/A-— — — 4,509 4,509 
Baa1/BBB+— — — 8,500 8,500 
Baa2/BBB— — — 8,500 8,500 
Baa3/BBB-— — — 12,528 12,528 
Ba1/BB+— — — 2,000 2,000 
   Total$13,892 $166,750 $5,767 $41,037 $227,446 
Schedule of Equity Investment With Readily Determinable Fair Value
The carrying amount of each equity investment with a readily determinable fair value or net asset value at December 31, 2024 and 2023 is reflected in the following table:

2024
2023
GenOpp Financial Fund LP$2,724 $2,102 
Total$2,724 $2,102 
Equity Securities without Readily Determinable Fair Value
The carrying amount of the Company’s investments in non-marketable equity securities with no readily determinable fair value and amounts recognized in earnings on a cumulative basis for the years ended December 31, 2024 and 2023 is reflected in the following table:

20242023
Carrying value1
$20,017 $12,374 
Carrying value adjustments— — 
Impairment— — 
Upward changes for observable prices— — 
Downward changes for observable prices— — 
  Net change$20,017 $12,374 

1 Excludes $9.1 million and $11.5 million in unfunded commitments as of December 31, 2024 and 2023, respectively.
v3.25.0.1
Loans (Tables)
12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Categories of loans include: 
December 31,
 20242023
Commercial loans  
Commercial and industrial$120,175 $129,349 
Owner-occupied commercial real estate53,591 57,286 
Investor commercial real estate269,431 132,077 
Construction413,523 261,750 
Single tenant lease financing949,748 936,616 
Public finance485,867 521,764 
Healthcare finance181,427 222,793 
Small business lending 1
331,914 218,506 
Franchise finance536,909 525,783 
Total commercial loans3,342,585 3,005,924 
Consumer loans
Residential mortgage375,160 395,648 
Home equity18,274 23,669 
Other consumer407,947 377,614 
Total consumer loans801,381 796,931 
Total commercial and consumer loans4,143,966 3,802,855 
Net deferred loan origination costs, premiums and discounts on purchased loans, and other 2
26,680 37,365 
Total loans4,170,646 3,840,220 
Allowance for credit losses(44,769)(38,774)
Net loans$4,125,877 $3,801,446 

1 Balances include $34.0 million and $33.5 million that is guaranteed by the U.S. government as of December 31, 2024 and December 31, 2023, respectively.
2 Includes carrying value adjustment of $22.9 million and $27.8 million related to terminated interest rate swaps associated with public finance loans as of December 31, 2024 and December 31, 2023, respectively.
Allowance for Credit Losses on Financing Receivables
The following tables present changes in the balance of the ACL during the twelve months ended December 31, 2024 and December 31, 2023, respectively.
 Twelve Months Ended December 31, 2024
 Balance, Beginning of Period(Credit) Provision Charged to ExpenseLosses Charged OffRecoveriesBalance, End of Period
Allowance for credit losses:  
Commercial and industrial$2,185 $(928)$— $$1,265 
Owner-occupied commercial real estate825 (297)— — 528 
Investor commercial real estate1,311 (162)— — 1,149 
Construction2,167 (183)— — 1,984 
Single tenant lease financing8,129 (3,152)(195)— 4,782 
Public finance1,372 (669)— — 703 
Healthcare finance1,976 (564)— — 1,412 
Small business lending6,532 19,745 (10,441)325 16,161 
Franchise finance6,363 4,079 (1,466)— 8,976 
Residential mortgage2,054 240 (159)2,136 
Home equity171 (72)— 106 
Other consumer5,689 778 (1,009)109 5,567 
Total$38,774 $18,815 $(13,270)$450 $44,769 



 Twelve Months Ended December 31, 2023
 Balance, Beginning of PeriodAdoption of CECLProvision (Credit) Charged to ExpenseLosses Charged OffRecoveriesBalance, End of Period
Allowance for credit losses:   
Commercial and industrial$1,711 $(120)$7,400 $(7,049)$243 $2,185 
Owner-occupied commercial real estate651 62 112 — — 825 
Investor commercial real estate1,099 (191)994 (591)— 1,311 
Construction2,074 (435)528 — — 2,167 
Single tenant lease financing10,519 (346)(2,044)— — 8,129 
Public finance1,753 (135)(246)— — 1,372 
Healthcare finance2,997 1,034 (1,450)(605)— 1,976 
Small business lending2,168 334 6,539 (2,586)77 6,532 
Franchise finance3,988 (313)3,019 (331)— 6,363 
Residential mortgage1,559 406 224 (140)2,054 
Home equity69 133 (37)— 171 
Other consumer3,149 2,533 415 (582)174 5,689 
Total$31,737 $2,962 $15,454 $(11,884)$505 $38,774 
Prior to the adoption of ASU 2016-13 on January 1, 2023, the Company calculated the allowance for loan losses using the incurred loss methodology. The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2022.
 Twelve Months Ended December 31, 2022
 Balance, Beginning of Period(Credit) Provision Charged to ExpenseLosses Charged OffRecoveriesBalance, End of Period
Allowance for loan losses:   
Commercial and industrial$1,891 $(185)$— $$1,711 
Owner-occupied commercial real estate742 (91)— — 651 
Investor commercial real estate328 771 — — 1,099 
Construction1,612 462 — — 2,074 
Single tenant lease financing10,385 (1,097)— 1,231 10,519 
Public finance1,776 (23)— — 1,753 
Healthcare finance5,940 (2,943)— — 2,997 
Small business lending1,387 1,154 (402)29 2,168 
Franchise finance1,083 2,905 — — 3,988 
Residential mortgage643 912 — 1,559 
Home equity64 (134)— 139 69 
Other consumer1,990 3,246 (2,358)271 3,149 
Total$27,841 $4,977 $(2,760)$1,679 $31,737 
Financing Receivables, Provision For Credit Losses On Off-Balance Sheet Commitments The following tables details activity in the provision for credit losses on off-balance sheet commitments for the twelve months ended December 31, 2024 and December 31, 2023.
Balance
December 31, 2023
Provision for credit lossesBalance
December 31, 2024
Off-balance sheet commitments
Commercial loans
Commercial and industrial$233 $— $233 
Owner-occupied commercial real estate11 
Investor commercial real estate(5)
Construction2,889 (1,321)1,568 
Single tenant lease financing— 19 19 
Small business lending541 (278)263 
Total commercial loans3,678 (1,583)2,095 
Consumer loans
Residential mortgage11 (10)
Home equity45 (10)35 
Other consumer11 (3) 
Total consumer loans67 (23)44 
Total allowance for off-balance sheet commitments$3,745 $(1,606)$2,139 
Pre-ASC 326 AdoptionImpact of ASC 326 AdoptionProvision for credit lossesBalance
December 31, 2023
Off-balance sheet commitments
Commercial loans
Commercial and industrial$— $110 $123 $233 
Owner-occupied commercial real estate— — 
Investor commercial real estate— (3)
Construction— 2,193 696 2,889 
Healthcare finance— (2)— 
Small business lending— — 541 541 
Total commercial loans— 2,314 1,364 3,678 
Consumer loans
Residential mortgage— 127 (116)11 
Home equity— 52 (7)45 
Other consumer— 11 —  11 
Total consumer loans— 190 (123)67 
Total allowance for off-balance sheet commitments$— $2,504 $1,241 $3,745 
Financing Receivable Credit Quality Indicators
The following table presents the credit risk profile of the Company’s commercial and consumer loan portfolios by loan class and by year of origination for the years indicated based on rating category and payment activity as of December 31, 2024 and December 31, 2023
December 31, 2024
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
20242023202220212020PriorTotal
Commercial and industrial
  Pass$23,539 $8,501 $13,853 $5,418 $2,362 $17,829 $44,000 $— $115,502 
  Special Mention 47 164 4,462 — — — — — 4,673 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total commercial and
     industrial
23,586 8,665 18,315 5,418 2,362 17,829 44,000 — 120,175 
Year-to-date gross charge-offs— — — — — — — — — 
Owner-occupied commercial real estate
  Pass7,410 1,458 5,366 6,438 5,716 14,793 — — 41,181 
  Special Mention — — 570 888 8,144 1,153 — — 10,755 
  Substandard— — — — — 1,655 — — 1,655 
  Doubtful— — — — — — — — — 
     Total owner-occupied
     commercial real estate
7,410 1,458 5,936 7,326 13,860 17,601 — — 53,591 
Year-to-date gross charge-offs— — — — — — — — — 
Investor commercial real estate
  Pass71,430 3,849 88,290 65,050 9,607 27,474 — — 265,700 
  Special Mention — — — — — 3,731 — — 3,731 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total investor commercial real
     estate
71,430 3,849 88,290 65,050 9,607 31,205 — — 269,431 
Year-to-date gross charge-offs— — — — — — — — — 
Construction
  Pass35,177 186,979 140,299 47,598 1,622 — 1,848 — 413,523 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total construction35,177 186,979 140,299 47,598 1,622 — 1,848 — 413,523 
Year-to-date gross charge-offs— — — — — — — — — 
Single tenant lease financing
  Pass79,872 46,674 211,005 88,192 63,506 437,564 — — 926,813 
  Special Mention 644 — 9,696 3,460 — 9,135 — — 22,935 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total single tenant lease
     financing
80,516 46,674 220,701 91,652 63,506 446,699 — — 949,748 
Year-to-date gross charge-offs— — — — — 195 — — 195 
Public finance
  Pass55,306 1,290 7,790 12,050 463 407,008 — — 483,907 
  Special Mention — — — — — 1,960 — — 1,960 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total public finance55,306 1,290 7,790 12,050 463 408,968 — — 485,867 
Year-to-date gross charge-offs— — — — — — — — — 
December 31, 2024
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
20242023202220212020PriorTotal
Healthcare finance
  Pass— — — 8,969 104,427 67,413 — — 180,809 
  Special Mention — — — — — 618 — — 618 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total healthcare finance— — — 8,969 104,427 68,031 — — 181,427 
Year-to-date gross charge-offs— — — — — — — — — 
Small business lending
  Pass138,044 94,556 30,486 11,715 9,687 9,896 17,197 — 311,581 
  Special Mention 1,022 4,691 927 — 354 1,213 697 — 8,904 
  Substandard2,940 3,909 1,457 258 970 1,001 894 — 11,429 
  Doubtful— — — — — — — — — 
     Total small business lending142,006 103,156 32,870 11,973 11,011 12,110 18,788 — 331,914 
Year-to-date gross charge-offs1,093 4,600 3,038 567 619 524 — — 10,441 
Franchise finance
  Pass67,065 230,425 172,830 42,869 — — — — 513,189 
  Special Mention — 1,978 5,084 6,275 — — — — 13,337 
  Substandard— 3,543 6,367 473 — — — — 10,383 
  Doubtful— — — — — — — — — 
     Total franchise finance67,065 235,946 184,281 49,617 — — — — 536,909 
Year-to-date gross charge-offs— 1,171 — 295 — — — — 1,466 
Consumer loans
Residential mortgage
    Performing3,577 13,533 183,484 86,213 28,655 55,615 — — 371,077 
    Nonperforming— — 1,671 609 69 1,734 — — 4,083 
      Total residential mortgage3,577 13,533 185,155 86,822 28,724 57,349 — — 375,160 
Year-to-date gross charge-offs— — 101 58 — — — — 159 
Home equity
    Performing— 992 1,450 356 414 530 13,621 911 18,274 
    Nonperforming— — — — — — — — — 
      Total home equity— 992 1,450 356 414 530 13,621 911 18,274 
Year-to-date gross charge-offs— — — — — — — — — 
Other consumer
    Performing101,965 97,832 88,872 33,177 20,918 64,251 870 — 407,885 
    Nonperforming— — 38 11 12 — — 62 
      Total other consumer101,965 97,832 88,910 33,188 20,919 64,263 870 — 407,947 
Year-to-date gross charge-offs157 242 300 127 182 — — 1,009 
Total Loans$588,038 $700,374 $973,997 $420,019 $256,915 $1,124,585 $79,127 $911 $4,143,966 
Total year-to-date gross charge-offs$1,250 $6,013 $3,439 $1,047 $620 $901 $— $— $13,270 
December 31, 2023
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
20232022202120202019PriorTotal
Commercial and industrial
  Pass$24,329 $19,382 $15,464 $2,502 $12,365 $8,703 $41,967 $— $124,712 
  Special Mention — 4,637 — — — — — — 4,637 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total Commercial and
     industrial
24,329 24,019 15,464 2,502 12,365 8,703 41,967 — 129,349 
Year-to-date gross charge-offs— — 6,914 130 — — — 7,049 
Owner-occupied commercial real estate
  Pass1,492 10,731 7,990 6,591 5,255 12,485 — — 44,544 
  Special Mention — 584 922 8,392 — 1,189 — — 11,087 
  Substandard— — — — — 1,655 — — 1,655 
  Doubtful— — — — — — — — — 
     Total owner-occupied
     commercial real estate
1,492 11,315 8,912 14,983 5,255 15,329 — — 57,286 
Year-to-date gross charge-offs— — — — — — — — — 
Investor commercial real estate
  Pass6,571 35,209 26,841 9,864 47,827 5,765 — — 132,077 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total investor commercial real
     estate
6,571 35,209 26,841 9,864 47,827 5,765 — — 132,077 
Year-to-date gross charge-offs— — — — — 591 — — 591 
Construction
  Pass26,539 153,066 70,175 6,121 — — 5,849 — 261,750 
  Special Mention — — — — — — — — — 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total construction26,539 153,066 70,175 6,121 — — 5,849 — 261,750 
Year-to-date gross charge-offs— — — — — — — — — 
Single tenant lease financing
  Pass52,360 221,964 89,075 65,863 142,023 346,695 — — 917,980 
  Special Mention — 4,362 6,698 3,032 — 4,544 — — 18,636 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total single tenant lease
     financing
52,360 226,326 95,773 68,895 142,023 351,239 — — 936,616 
Year-to-date gross charge-offs— — — — — — — — — 
Public finance
  Pass3,805 30,583 29,750 719 43,611 411,176 — — 519,644 
  Special Mention — — — — — 2,120 — — 2,120 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total public finance3,805 30,583 29,750 719 43,611 413,296 — — 521,764 
Year-to-date gross charge-offs— — — — — — — — — 
December 31, 2023
Term Loans (amortized cost basis by origination year)Revolving loans amortized cost basisRevolving loans converted to term
20232022202120202019PriorTotal
Healthcare finance
  Pass— — 9,955 124,654 63,486 23,484 — — 221,579 
  Special Mention — — — — 1,214 — — — 1,214 
  Substandard— — — — — — — — — 
  Doubtful— — — — — — — — — 
     Total healthcare finance— — 9,955 124,654 64,700 23,484 — — 222,793 
Year-to-date gross charge-offs— — — — 605 — — — 605 
Small business lending
  Pass119,149 42,077 15,180 13,948 4,582 9,215 5,388 — 209,539 
  Special Mention 343 496 — 341 265 698 — — 2,143 
  Substandard1,095 1,854 52 1,777 1,155 417 474 — 6,824 
  Doubtful— — — — — — — — — 
     Total small business lending120,587 44,427 15,232 16,066 6,002 10,330 5,862 — 218,506 
Year-to-date gross charge-offs67 739 416 1,364 — — — — 2,586 
Franchise finance
  Pass256,944 210,617 57,919 — — — — — 525,480 
  Special Mention — — — — — — — — — 
  Substandard— — 303 — — — — — 303 
  Doubtful— — — — — — — — — 
     Total franchise finance256,944 210,617 58,222 — — — — — 525,783 
Year-to-date gross charge-offs— 331 — — — — — — 331 
Consumer loans
Residential mortgage
    Performing14,942 195,453 91,010 30,092 13,072 48,330 — — 392,899 
    Nonperforming— 738 456 73 — 1,482 — — 2,749 
      Total residential mortgage14,942 196,191 91,466 30,165 13,072 49,812 — — 395,648 
Year-to-date gross charge-offs— 53 70 — 17 — — — 140 
Home equity
    Performing1,369 1,997 436 467 141 585 16,896 1,778 23,669 
    Nonperforming— — — — — — — — — 
      Total home equity1,369 1,997 436 467 141 585 16,896 1,778 23,669 
Year-to-date gross charge-offs— — — — — — — — — 
Other consumer
    Performing115,736 106,883 41,598 26,527 27,087 58,902 795 — 377,528 
    Nonperforming— 53 — 15 13 — — 86 
      Total other consumer115,736 106,936 41,598 26,532 27,102 58,915 795 — 377,614 
Year-to-date gross charge-offs97 115 20 51 56 243 — — 582 
Total Loans$624,674 $1,040,686 $463,824 $300,968 $362,098 $937,458 $71,369 $1,778 $3,802,855 
Total year-to-date gross charge-offs$164 $1,238 $7,420 $1,420 $808 $834 $— $— $11,884 
Past Due Financing Receivables
The following tables present the Company’s loan portfolio delinquency analysis as of December 31, 2024 and December 31, 2023.

 December 31, 2024
30-59
Days
Past Due
60-89
Days
Past Due
90 Days 
or More
Past Due
Total 
Past Due
CurrentTotal loans
Commercial and industrial$$$$$120,175$120,175
Owner-occupied commercial real estate53,59153,591
Investor commercial real estate269,431269,431
Construction413,523413,523
Single tenant lease financing949,748949,748
Public finance485,867485,867
Healthcare finance181,427181,427
Small business lending11,8171,3105,58718,714313,200331,914
Franchise Finance9,4313,2799,84922,559514,350536,909
Residential mortgage6481,7113,8156,174368,986375,160
Home equity18,27418,274
Other consumer19419627417407,530407,947
Total$22,090$6,496$19,278$47,864$4,096,102$4,143,966


 December 31, 2023
30-59
Days
Past Due
60-89
Days
Past Due
90 Days 
or More
Past Due
Total 
Past Due
CurrentTotal loans
Commercial and industrial$40 $21 $— $61 $129,288 $129,349 
Owner-occupied commercial real estate— — — — 57,286 57,286 
Investor commercial real estate— — — — 132,077 132,077 
Construction— — — — 261,750 261,750 
Single tenant lease financing— — — — 936,616 936,616 
Public finance— — — — 521,764 521,764 
Healthcare finance— — — — 222,793 222,793 
Small business lending2,680 57 2,794 5,531 212,975 218,506 
Franchise Finance— 2,923 303 3,226 522,557 525,783 
Residential mortgage70 709 1,663 2,442 393,206 395,648 
Home equity— — — — 23,669 23,669 
Other consumer223 68 53 344 377,270 377,614 
Total$3,013 $3,778 $4,813 $11,604 $3,791,251 $3,802,855 


Loans are reclassified to non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. At the time the accrual is discontinued, all unpaid accrued interest is reversed against earnings. Interest income accrued in prior years, if any, is charged to the ACL. Payments subsequently received on nonaccrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of nine consecutive months of performance.
The following table summarizes the Company’s nonaccrual loans and loans past due 90 days or more and still accruing by loan class for the periods indicated:
December 31, 2024December 31, 2023
Total Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesTotal Loans
90 Days or
More Past
Due and
Accruing
Total Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesTotal Loans
90 Days or
More Past
Due and
Accruing
Commercial and industrial$— $— $— $— $— $— 
Owner-occupied commercial real estate— — — — — — 
Small business lending
11,429 4,778 1,320 6,824 904 — 
Franchise finance10,382 — — 303 — — 
Residential mortgage4,083 4,083 1,142 1,911 1,911 838 
Other consumer61 61 86 86 — 
Total loans$25,955 $8,922 $2,466 $9,124 $2,901 $838 
Collateral Dependent Loans
The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of December 31, 2024 and December 31, 2023.

 December 31, 2024
Commercial Real EstateResidential Real EstateOther (Includes Equipment, Machinery and Other Assets)TotalAllowance on Collateral Dependent Loans
Owner-occupied commercial real estate$1,654 $— $— $1,654 $— 
Small business lending1
723 — 8,571 9,294 4,167 
Franchise finance— — 3,468 3,468 679 
Residential mortgage— 4,083 — 4,083 — 
Other consumer loans— — 22 22 — 
Total loans$2,377 $4,083 $12,061 $18,521 $4,846 

1 Balance includes $3.5 million of loans guaranteed by the U.S. government.
 December 31, 2023
Commercial Real EstateResidential Real EstateOther (Includes Equipment, Machinery and Other Assets)TotalAllowance on Collateral Dependent Loans
Owner-occupied commercial real estate$— $— $1,654 $1,654 $— 
Small business lending1
2,875 1,210 2,226 6,311 2,391 
Residential mortgage— 1,911 — 1,911 — 
Other consumer loans— — 86 86 — 
Total loans$2,875 $3,121 $3,966 $9,962 $2,391 

1 Balance includes $1.4 million of loans guaranteed by the U.S. government.
Loans Experiencing Financial Difficulty and Modified
The following table present loans that were both experiencing financial difficulty and modified during the twelve months ended December 31, 2024.

Twelve Months Ended December 31, 2024Payment DelayTotal Modification by Loan Class% of Class of Loans
Investor commercial real estate$3,731 $3,731 1.4 %
Franchise finance5,566 5,566 1.0 %
Total loans$9,297 $9,297 

The following table describe the financial effect of the modifications made to borrowers experiencing financial difficulty. As of December 31, 2024, the Company had no commitments to lend additional funds to these borrowers included in the table below.

Twelve Months Ended December 31, 2024 - Payment Delay
Loan TypeFinancial Effect
Investor commercial real estate
Forbearance average of 9 months.
Franchise finance
Forbearance average of 7 months.
Performance of Loans Modified in the Last Twelve Months The following table presents the performance of such loans that have been modified in the last twelve months as of December 31, 2024.
Current30 - 89 Days
 Past Due
90+ Days
Past Due
Investor commercial real estate$3,731 $— $— 
Franchise finance5,566 — — 
     Total loans$9,297 $— $— 
v3.25.0.1
Premises and Equipment (Tables)
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Premises and Equipment
The following table summarizes premises and equipment at December 31, 2024 and 2023. 
December 31,
 20242023
Land$5,598 $5,598 
Construction in process20 1,119 
Right of use leased asset188 66 
Building and improvements63,069 60,699 
Furniture and equipment22,047 20,836 
Less: accumulated depreciation(19,469)(14,855)
 $71,453 $73,463 
v3.25.0.1
Servicing Asset (Tables)
12 Months Ended
Dec. 31, 2024
Transfers and Servicing [Abstract]  
Schedule of Servicing Assets at Fair Value
Activity for the servicing asset and the related changes in fair value for the twelve months ended December 31, 2024, 2023 and 2022 are shown in the table below.
Twelve Months Ended
 December 31, 2024December 31, 2023December 31, 2022
Beginning balance$10,567 $6,255 $4,702 
Additions:
     Originated and purchased servicing8,359 5,775 3,192 
Subtractions:
     Paydowns(3,005)(1,842)(1,075)
     Changes in fair value due to changes in valuation inputs
     or assumptions used in the valuation model
468 379 (564)
     Loan servicing asset revaluation(2,537)(1,463)(1,639)
     Ending balance$16,389 $10,567 $6,255 
Schedule Of Unpaid Principal Balances Of Loans Serviced For Others
Loans serviced for others are not included in the consolidated balance sheets. The unpaid principal balances of these loans serviced for others as of December 31, 2024, 2023 and 2022 are shown in the table below.

 December 31, 2024December 31, 2023December 31, 2022
Loan portfolios serviced for:
   SBA guaranteed loans$862,089 $531,927 $318,194 
     Total$862,089 $531,927 $318,194 
v3.25.0.1
Deposits (Tables)
12 Months Ended
Dec. 31, 2024
Deposits [Abstract]  
Schedule of deposits
The following table presents the composition of the Company’s deposit base as of December 31, 2024 and 2023.
December 31,
 20242023
Noninterest-bearing deposits$136,451 $123,464 
Interest-bearing demand deposits1
896,661 402,976 
Savings accounts19,823 21,364 
Money market accounts1,183,789 1,248,319 
Fintech - brokered deposits 1
— 74,401 
Certificates of deposits2,133,455 1,605,156 
Brokered deposits563,027 591,293 
Total deposits$4,933,206 $4,066,973 
Time deposits greater than $250$776,788 $703,835 

1 Fintech - brokered deposits that had been previously classified as brokered deposits were reclassified to interest-bearing demand deposits as of December 31, 2024.
Schedule of certificates of deposits scheduled maturities
The following table presents time deposit maturities by year as of December 31, 2024.
 
Certificates of DepositsBrokered Certificates of Deposits
2025$1,327,799 $152,897 
2026178,941 57,509 
2027197,074 34,823 
2028142,667 — 
2029286,974 — 
Thereafter— — 
 $2,133,455 $245,229 
v3.25.0.1
FHLB Advances (Tables)
12 Months Ended
Dec. 31, 2024
Federal Home Loan Banks [Abstract]  
FHLB Advances Maturity
The Company’s FHLB advances are scheduled to mature according to the following schedule:
 Amount
2025$50,000 
202610,000 
202750,000 
202835,000 
2029— 
Thereafter150,000 
 $295,000 
v3.25.0.1
Subordinated Debt Subordinated Debt (Tables)
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Subordinated Borrowing
The following table presents the principal balance and unamortized discount and debt issuance costs for the 2029 Notes, the 2030 Note and the 2031 Notes as of December 31, 2024 and 2023.

December 31, 2024December 31, 2023
PrincipalUnamortized Discount and Debt Issuance CostsPrincipalUnamortized Discount and Debt Issuance Costs
2029 Notes$37,000 $(703)$37,000 $(862)
2030 Note10,000 (137)10,000 (160)
2031 Notes60,000 (1,010)60,000 (1,140)
Total$107,000 $(1,850)$107,000 $(2,162)
v3.25.0.1
Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Nonvested Restricted Stock Shares Activity
The following table summarizes the stock-based award activity under the 2022 Plan for the year ended December 31, 2024.
Restricted Stock UnitsWeighted-Average Grant Date Fair Value Per ShareRestricted Stock AwardsWeighted-Average Grant Date Fair Value Per ShareDeferred Stock UnitsWeighted-Average Grant Date Fair Value Per Unit
Unvested at January 1, 202472,354 $24.61 30,030 $11.18 — $— 
   Granted75,222 24.13 12,040 31.46 — — 
   Forfeited(2,534)24.37 — — — — 
   Vested(14,294)24.52 (30,030)11.18 — — 
Unvested at December 31, 2024130,748 $24.35 12,040 $31.46 — $— 
The following table summarizes the stock-based award activity under the 2013 Plan for the year ended December 31, 2024:
Restricted Stock UnitsWeighted-Average Grant Date Fair Value Per ShareRestricted Stock AwardsWeighted-Average Grant Date Fair Value Per ShareDeferred Stock UnitsWeighted-Average Grant Date Fair Value Per Unit
Unvested at January 1, 202453,985 $39.86 — $— — $— 
   Forfeited(22,899)30.58 — — — — 
   Vested(8,089)46.64 — — — — 
Unvested at December 31, 202422,997 $46.71 — $— — $— 
Schedule Of Deferred Stock Option Plan
The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the year ended December 31, 2024.
Deferred Rights
Outstanding, beginning of year28,538 
Granted283 
Outstanding, end of year28,821 
v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Taxes
The provision for income taxes consists of the following:
December 31,
 202420232022
Current$3,623 $876 $(73)
Deferred(1,357)(4,353)4,632 
Total$2,266 $(3,477)$4,559 
Schedule of Effective Income Tax Rate Reconciliation
Income tax provision is reconciled to the statutory 21 % rate applied to pre-tax income.
 
December 31,
 202420232022
Statutory rate times pre-tax income$5,784 $1,037 $8,421 
(Subtract) add the tax effect of: 
Income from tax-exempt securities and loans(3,500)(3,951)(4,190)
State income tax, net of federal tax effect47 (30)592 
Bank-owned life insurance(262)(215)(201)
Tax credits(110)(168)(143)
Other differences307 (150)80 
Total income taxes$2,266 $(3,477)$4,559 
Schedule of Net Deferred Tax Assets
The net deferred tax asset at December 31, 2024 and 2023 consists of the following: 
December 31,
 20242023
Deferred tax assets (liabilities)  
Allowance for credits losses$10,824 $9,847 
Net unrealized losses on available-for-sale securities and hedged items9,753 8,776 
Fair value adjustments(14,002)(12,101)
Depreciation(4,168)(4,306)
Deferred compensation and accrued payroll1,486 1,228 
Loan origination costs(1,533)(1,379)
Prepaid assets(916)(806)
Net operating loss9,962 13,309 
Tax credits1,956 711 
Other(309)335 
Total deferred tax assets, net$13,053 $15,614 
v3.25.0.1
Related Party Disclosures (Tables)
12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
The following table presents the change in related party loans as of December 31, 2024 and 2023.

Twelve Months Ended
December 31, 2024December 31, 2023
Balance at the beginning of period$45,926 $21,860 
New term loans— 19,139 
Additions1,753 4,956 
Repayment of term loans(13)(12)
Changes in balances of revolving lines of credit(17)
Balance at end of period$47,671 $45,926 
v3.25.0.1
Regulatory Capital Requirements (Tables)
12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations
The following tables present actual and required capital ratios as of December 31, 2024 and 2023 for the Company and the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2024 and 2023 based on the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.

As permitted by the federal banking regulatory agencies, the Company has elected the option to delay the impact of the day one adoption of ASC 326. The transition adjustments of $4.5 million are phased into the regulatory capital calculations over a three-year period, with 25% of the adjustment recognized in 2023, 50% of the adjustment recognized in 2024, 75% of the adjustment recognized in 2025 and 100% of the adjustment recognized in 2026.

ActualMinimum Capital Required - Basel III Minimum Required to be Considered Well Capitalized
Capital AmountRatioCapital AmountRatioCapital AmountRatio
As of December 31, 2024:
Common equity tier 1 capital to risk-weighted assets
Consolidated $400,100 9.30 %$301,052 7.00 %N/AN/A
Bank475,793 11.11 %299,774 7.00 %$278,362 6.50 %
Tier 1 capital to risk-weighted assets
Consolidated 400,100 9.30 %365,563 8.50 %N/AN/A
Bank475,793 11.11 %364,012 8.50 %342,599 8.00 %
Total capital to risk-weighted assets
Consolidated 542,808 12.62 %451,578 10.50 %N/AN/A
Bank520,610 12.16 %449,662 10.50 %428,249 10.00 %
Leverage ratio
Consolidated 400,100 6.90 %232,011 4.00 %N/AN/A
Bank475,793 8.23 %231,331 4.00 %289,164 5.00 %
ActualMinimum Capital Required - Basel III Minimum Required to be Considered Well Capitalized
Capital AmountRatioCapital AmountRatioCapital AmountRatio
As of December 31, 2023:
Common equity tier 1 capital to risk-weighted assets
Consolidated $381,001 9.60 %$277,914 7.00 %N/AN/A
Bank464,390 11.73 %277,063 7.00 %$257,273 6.50 %
Tier 1 capital to risk-weighted assets
Consolidated 381,001 9.60 %337,467 8.50 %N/AN/A
Bank464,390 11.73 %336,434 8.50 %316,644 8.00 %
Total capital to risk-weighted assets
Consolidated 525,283 13.23 %416,870 10.50 %N/AN/A
Bank503,834 12.73 %415,595 10.50 %395,804 10.00 %
Leverage ratio
Consolidated 381,001 7.33 %207,929 4.00 %N/AN/A
Bank464,390 8.95 %207,479 4.00 %259,349 5.00 %
v3.25.0.1
Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2024 and 2023.
December 31, 2024
Fair Value Measurements Using
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
   U.S. Government-sponsored agencies$82,816 $— $82,816 $— 
   Municipal securities63,654 — 63,654 — 
   Agency mortgage-backed securities - residential269,641 — 269,641 — 
   Agency mortgage-backed securities - commercial63,331 — 63,331 — 
Private label mortgage-backed securities - residential45,821 — 45,821 — 
   Asset-backed securities
23,821 — 23,821 — 
Corporate securities38,271 — 38,271 — 
Total available-for-sale securities$587,355 $— $587,355 $— 
Servicing asset16,389 — — 16,389 
Interest rate swap agreements - assets (back-to-back)200 — 200 — 
Interest rate swap agreements - liabilities (back-to-back)(200)— (200)— 
 
December 31, 2023
Fair Value Measurements Using
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
   U.S. Government-sponsored agencies$95,177 $— $95,177 $— 
   Municipal securities68,446 — 68,446 — 
   Agency mortgage-backed securities - residential206,649 — 206,649 — 
   Agency mortgage-backed securities - commercial38,885 — 38,885 — 
Private label mortgage-backed securities - residential20,779 — 20,779 — 
   Asset-backed securities
8,081 — 8,081 — 
Corporate securities36,838 — 36,838 — 
Total available-for-sale securities$474,855 $— $474,855 $— 
Servicing asset10,567 — — 10,567 
Interest rate swaps assets5,139 — 5,139 — 
Interest rate swap agreements - assets (back-to-back)677 — 677 — 
Interest rate swap agreements - liabilities (back-to-back)(677)— (677)— 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table reconciles the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs. 
 Servicing AssetInterest Rate Lock Commitments
Balance as of January 1, 2022$4,702 $718 
Total realized gains
           Additions3,192 — 
Paydowns(1,135)— 
Change in fair value(504)(585)
Balance, December 31, 20226,255 133 
Total realized gains
           Additions5,775 — 
Paydowns(1,842)— 
Change in fair value379 (133)
Balance, December 31, 202310,567 — 
Total realized gains
           Additions8,359 — 
Paydowns(3,005)— 
Change in fair value468 — 
Balance, December 31, 2024$16,389 $— 
Fair Value Measurements, Nonrecurring
The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at December 31, 2024 and December 31, 2023.

December 31, 2024
Fair Value Measurements Using
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Collateral dependent loans$4,296 $— $— $4,296 

December 31, 2023
Fair Value Measurements Using
Fair
Value
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Collateral dependent loans$2,799 $— $— $2,799 
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques
The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

Fair Value at
December 31, 2024
Valuation
Technique
Significant Unobservable
Inputs
RangeWeighted-Average Range
Collateral dependent loans$4,296 
Fair value of collateral
Discount for type of property and current market conditions
0% - 75%
24.2%
Servicing asset
16,389 
Discounted cash flow

Prepayment speeds

Discount rate

0% - 25%

14%

11.7%

14%


Fair Value at
December 31, 2023
Valuation
Technique
Significant Unobservable
Inputs
RangeWeighted - Average Range
Collateral dependent loans$2,799 Fair value of collateralDiscount for type of property and current market conditions
0% - 90%
28%
Servicing asset10,567 Discounted cash flowPrepayment speeds

Discount rate
0% - 25%

15%
11.3%

15%
Fair Value, by Balance Sheet Grouping
The following tables provide the carrying amounts and estimated fair values of the Company's financial instruments at December 31, 2024 and 2023:
 December 31, 2024
 Fair Value Measurements Using
Carrying
Amount
Fair ValueQuoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$466,410 $466,410 $466,410 $— $— 
Securities held-to-maturity249,796 228,851 — 228,851 — 
Loans held-for-sale54,695 58,510 — 58,510 — 
Net loans4,125,877 3,935,009 — — 3,935,009 
Accrued interest receivable28,180 28,180 28,180 — — 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 — 28,350 — 
Deposits4,933,206 4,943,961 2,236,724 — 2,707,237 
Advances from Federal Home Loan Bank295,000 291,208 — 291,208 — 
Subordinated debt105,150 103,062 37,059 66,003 — 
Accrued interest payable2,495 2,495 2,495 — — 

 December 31, 2023
 Fair Value Measurements Using
Carrying
Amount
Fair ValueQuoted Prices
In Active
Markets for
Identical
Assets/Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$405,898 $405,898 $405,898 $— $— 
Securities held-to-maturity227,153 207,572 — 207,572 — 
Loans held-for-sale 22,052 22,052 — 22,052 — 
Net loans3,801,446 3,611,909 — — 3,611,909 
Accrued interest receivable26,746 26,746 26,746 — — 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 — 28,350 — 
Deposits4,066,973 4,059,447 1,796,123 — 2,263,324 
Advances from Federal Home Loan Bank614,934 605,366 — 605,366 — 
Subordinated debt104,838 102,632 32,560 70,072 — 
Accrued interest payable3,848 3,848 3,848 — — 
v3.25.0.1
Mortgage Banking Activities (Tables)
12 Months Ended
Dec. 31, 2024
Mortgage Banking [Abstract]  
Schedule of Participating Mortgage Loans
The following table provides the components of income from mortgage banking activities for the years ended December 31, 2024, 2023 and 2022.

Year Ended December 31,
202420232022
Gain on loans sold$— $471 $6,101 
Loss resulting from the change in fair value of loans held-for-sale— (143)(184)
Loss resulting from the change in fair value of derivatives— (252)(453)
Net revenue from mortgage banking activities$— $76 $5,464 
v3.25.0.1
Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule Of Derivative Instruments, Cumulative Basis Adjustments
The following table presents amounts that were recorded in the consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of December 31, 2024 and 2023.
 Carrying amount of the hedged assetsCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets
Line item in the consolidated balance sheet in which the hedged item is included
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
Securities available-for-sale1
$— $69,504 $— $(1,143)

1 These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. No amounts were hedged as of December 31, 2024. The amount of the designated hedged items was $50.0 million as of December 31, 2023.
Schedule Of Derivative Instruments Of Fixed Rate Receivables The following table presents a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company's asset/liability management activities at December 31, 2023, identified by the underlying interest rate-sensitive instruments
December 31, 2023Weighted Average Remaining Maturity (years)Weighted-Average Rate
Instruments Associated With
Notional ValueFair ValueReceivePay
Securities available-for-sale$50,000 0.8$1,153 3 month SOFR2.33%
           Total swap portfolio at December 31, 2023
$50,000 0.8$1,153 3 month SOFR2.33%
Schedule Of Derivative Instruments Of Variable Rate Liabilities
The following table presents a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company's asset/liability management activities at December 31, 2023.

December 31, 2023Weighted Average Remaining Maturity (years)Weighted-Average Rate
Cash Flow Hedges
Notional ValueFair ValueReceivePay
Interest rate swaps$110,000 3.1$3,596 3 month SOFR2.88%
Interest rate swaps40,000 0.4390 Fed Funds Effective2.78%
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at December 31, 2024 and 2023.
 December 31, 2024December 31, 2023
 Notional
Amount
Fair
Value
Notional
Amount
Fair
Value
Asset Derivatives    
Derivatives designated as hedging instruments
Interest rate swaps associated with securities available-for-sale$— $— $50,000 $1,153 
Interest rate swaps associated with liabilities— — 150,000 3,986 
Derivatives not designated as hedging instruments    
Back-to-back swaps27,214 200 1,778 677 
      Total contracts$27,214 $200 $201,778 $5,816 
Liability Derivatives
Derivatives not designated as hedging instruments
Back-to-back swaps$27,214 $(200)$1,778 $(677)
      Total contracts$27,214 $(200)$1,778 $(677)
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following table presents the effects of the Company's cash flow hedge relationships on the consolidated statements of comprehensive income during the twelve months ended December 31, 2024, 2023 and 2022.

 Amount of (Loss) / Gain Recognized in Other Comprehensive Income in the Twelve Months Ended
 December 31, 2024December 31, 2023December 31, 2022
Interest rate swap agreements$— $(2,566)$19,091 
Schedule Of Derivative Instruments In Statements Of Income Fair Value
The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the consolidated statements of income for the twelve months ended December 31, 2024, 2023 and 2022.

 Amount of (Loss) / Gain Recognized in the Twelve Months Ended
 December 31, 2024December 31, 2023December 31, 2022
Asset Derivatives  
Derivatives not designated as hedging instruments   
Forward contracts$— $— $127 
Liability Derivatives  
Derivatives not designated as hedging instruments  
IRLCs$— $(133)$(585)
Forward contracts— (119)— 
Derivative Instruments, Gain (Loss)
The following table presents the effects of the Company's interest rate swap agreements on the consolidated statements of income during the twelve months ended December 31, 2024, 2023 and 2022.

Line item in the consolidated statements of income
December 31, 2024December 31, 2023December 31, 2022
Interest income
Securities - non-taxable$1,367 $1,471 $(244)
Total interest income
1,367 1,471 (244)
Interest expense   
Deposits(424)(1,671)1,125 
Other borrowed funds(2,833)(2,622)1,110 
Total interest expense
(3,257)(4,293)2,235 
Net interest income
$4,624 $5,764 $(2,479)
Noninterest income
Other1
$2,904 $— $— 
     Total noninterest income$2,904 $— $— 

1 The Company recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.
v3.25.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
12 Months Ended
Dec. 31, 2024
Stockholders' Equity Note [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive loss, included in stockholders' equity, are presented in the table below.
Available-For-Sale SecuritiesUnrealized Losses on Debt Securities Transferred from Available-for-Sale to Held-to-MaturityCash Flow HedgesTotal
Balance, January 1, 2022$(2,555)$— $(8,484)$(11,039)
Net unrealized holding (losses) gains recorded within other comprehensive income before income tax(42,336)— 19,091 (23,245)
Reclassification of securities available-for-sale to held-to-maturity— (5,402)— (5,402)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity— 844— 844 
Other comprehensive (loss) income before tax(42,336)(4,558)19,091 (27,803)
Income tax (benefit) provision(9,060)(1,039)4,893 (5,206)
Other comprehensive (loss) income- net of tax(33,276)(3,519)14,198 (22,597)
Balance, December 31, 2022$(35,831)$(3,519)$5,714 $(33,636)
Net unrealized holding gains (losses) recorded within other comprehensive income before income tax$7,339 $— $(2,566)$4,773 
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity— 778 — 778 
Other comprehensive income (loss) before tax7,339 778 (2,566)5,551 
Income tax provision (benefit)1,682 198 (590)1,290 
Other comprehensive income (loss) - net of tax5,657 580 (1,976)4,261 
Balance, December 31, 2023$(30,174)$(2,939)$3,738 $(29,375)
Net unrealized holding losses recorded within other comprehensive income before income tax$(1,039)$— $(1,082)$(2,121)
Reclassification of gain on termination of interest rate swaps— — (2,904)(2,904)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity— 789 — 789 
Other comprehensive (loss) income before tax(1,039)789 (3,986)(4,236)
Income tax (benefit) provision(800)90 (248)(958)
Other comprehensive (loss) income- net of tax(239)699 (3,738)(3,278)
Balance, December 31, 2024$(30,413)$(2,240)$— $(32,653)
v3.25.0.1
Condensed Financial Information (Parent Company Only) (Tables)
12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheets
Condensed Balance Sheets 
 Year Ended December 31,
 20242023
Assets  
Cash and cash equivalents$12,997 $11,593 
Investment in common stock of subsidiaries458,025 444,221 
Accrued income and other assets19,983 14,127 
Total assets$491,005 $469,941 
Liabilities and shareholders’ equity  
Subordinated debt, net of unamortized discount and debt issuance costs of $1,850 and $2,162 in 2024 and 2023, respectively
$105,150 $104,838 
Accrued expenses and other liabilities1,792 2,308 
Total liabilities106,942 107,146 
Shareholders’ equity384,063 362,795 
Total liabilities and shareholders’ equity$491,005 $469,941 
Condensed Statements of Income
Condensed Statements of Income 
 Year Ended December 31,
 202420232022
Income
Dividends from bank subsidiary$16,000 $12,000 $8,000 
Other905 188 285 
Total income16,905 12,188 8,285 
Expenses   
Interest on borrowings6,021 5,376 5,371 
Salaries and employee benefits1,223 1,203 1,147 
Consulting and professional fees1,937 1,572 1,814 
Premises and equipment45 126 201 
Other250 280 134 
Total expenses9,476 8,557 8,667 
Income (loss) before income tax and equity in undistributed net income of subsidiaries7,429 3,631 (382)
Income tax benefit(2,080)(1,817)(1,874)
Income before equity in undistributed net income of subsidiaries9,509 5,448 1,492 
Equity in undistributed net income of subsidiaries15,767 2,969 34,049 
Net income$25,276 $8,417 $35,541 
Condensed Statements of Comprehensive Income
Condensed Statements of Comprehensive Income 
 Year Ended December 31,
 202420232022
Net income$25,276 $8,417 $35,541 
Other comprehensive income (loss)   
Securities available-for-sale
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax(1,039)7,339 (42,336)
Income tax (benefit) provision (800)1,682 (9,060)
Net effect on other comprehensive (loss) income (239)5,657 (33,276)
Securities held-to-maturity
Reclassification of securities from available-for-sale to held-to-maturity— — (5,402)
Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity789 778 844 
Income tax provision (benefit)90 198 (1,039)
Net effect on other comprehensive income (loss)699 580 (3,519)
Cash flow hedges
Net unrealized holding (losses) gains on cash flow hedging derivatives recorded within other comprehensive income before income tax(1,082)(2,566)19,091 
Reclassification of gain on termination of interest rate swaps(2,904)
Income tax (benefit) provision(248)(590)4,893 
Net effect on other comprehensive (loss) income(3,738)(1,976)14,198 
Total other comprehensive (loss) income(3,278)4,261 (22,597)
Comprehensive income$21,998 $12,678 $12,944 
Condensed Statements of Cash Flows
Condensed Statements of Cash Flows 
 Year Ended December 31,
 202420232022
Operating activities   
Net income$25,276 $8,417 $35,541 
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries(15,767)(2,969)(34,049)
Depreciation and amortization312 318 329 
Share-based compensation expense363 256 795 
Net change in other assets1,506 (1,819)350 
Net change in other liabilities(522)358 (490)
Net cash provided by operating activities11,168 4,561 2,476 
Investing activities
       Purchase of equity investments(7,221)(3,578)(2,727)
Net cash (used in) provided by investing activities(7,221)(3,578)(2,727)
Financing activities   
      Cash dividends paid(2,078)(2,156)(2,317)
Repurchase of common stock(283)(9,340)(27,780)
      Other, net(182)(153)(250)
Net cash (used in) provided by financing activities(2,543)(11,649)(30,347)
Net increase (decrease) in cash and cash equivalents1,404 (10,666)(30,598)
Cash and cash equivalents at beginning of year11,593 22,259 52,857 
Cash and cash equivalents at end of year$12,997 $11,593 $22,259 
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Details Textual)
$ in Thousands
12 Months Ended
Dec. 31, 2024
USD ($)
subsidiary
reporting_unit
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2006
Significant Accounting Policies [Line Items]          
Date of incorporation Sep. 15, 2005        
Number of wholly owned subsidiaries | subsidiary 3        
Number of reporting units | reporting_unit 1        
Number of reportable segments | segment 1        
Decrease to retained earnings $ (230,622) $ (207,470)      
Allowance for credit losses - loans 44,769 38,774 $ 31,737 $ 27,841  
Allowance related to off-balance sheet credit exposures 2,139 3,745 0    
Allowance for credit loss on HTM securities $ 154 $ 293      
Cumulative Effect, Period of Adoption, Adjustment          
Significant Accounting Policies [Line Items]          
Decrease to retained earnings     4,500    
Allowance for credit losses - loans     2,962    
Allowance related to off-balance sheet credit exposures     2,504    
Cumulative Effect, Period of Adoption, Adjustment, Net Of Tax          
Significant Accounting Policies [Line Items]          
Allowance for credit losses - loans     2,300    
Allowance related to off-balance sheet credit exposures     1,900    
Allowance for credit loss on HTM securities     $ 300    
First Internet Bank of Indiana          
Significant Accounting Policies [Line Items]          
Ownership (as a percent)         100.00%
Equipment | Minimum          
Significant Accounting Policies [Line Items]          
Estimated useful lives (in years) 3 years        
Equipment | Maximum          
Significant Accounting Policies [Line Items]          
Estimated useful lives (in years) 5 years        
Land improvements          
Significant Accounting Policies [Line Items]          
Estimated useful lives (in years) 10 years        
Buildings          
Significant Accounting Policies [Line Items]          
Estimated useful lives (in years) 39 years        
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Basic earnings per share      
Net income available to common shareholders $ 25,276 $ 8,417 $ 35,541
Weighted-average common shares (in shares) 8,690,416 8,837,558 9,530,921
Basic earnings per common share (in dollars per share) $ 2.91 $ 0.95 $ 3.73
Diluted earnings per share      
Net income available to common shareholders $ 25,276 $ 8,417 $ 35,541
Weighted-average common shares (in shares) 8,690,416 8,837,558 9,530,921
Dilutive effect of equity compensation (in shares) 75,309 21,332 64,194
Weighted-average common and incremental shares (in shares) 8,765,725 8,858,890 9,595,115
Diluted earnings per common share (in dollars per share) $ 2.88 $ 0.95 $ 3.70
Antidilutive securities excluded from computation of earnings per share (in shares) 0 20,797 2,646
v3.25.0.1
Cash and Cash Equivalents (Details Textual)
$ in Millions
Dec. 31, 2024
USD ($)
Cash and Cash Equivalents [Line Items]  
Cash in excess of limits of FDIC insurance coverage $ 1.1
Federal Home Loan Bank of Chicago  
Cash and Cash Equivalents [Line Items]  
Cash held 440.8
Federal Home Loan Bank of Indianapolis  
Cash and Cash Equivalents [Line Items]  
Cash held $ 15.7
v3.25.0.1
Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Abstract]    
Amortized Cost $ 626,854 $ 513,315
Gross Unrealized Gains 1,542 1,054
Gross Unrealized Losses (41,041) (39,514)
Fair value 587,355 474,855
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 249,950 227,446
Gross Unrealized Gains 102 5
Gross Unrealized Losses (21,201) (19,879)
Fair Value 228,851 207,572
Allowance for Credit Losses (154) (293)
Net Carrying Value 249,796 227,153
Premium related to terminated interest rate swaps 300 400
U.S. Government-sponsored agencies    
Debt Securities, Available-for-sale [Abstract]    
Amortized Cost 83,811 96,404
Gross Unrealized Gains 487 402
Gross Unrealized Losses (1,482) (1,629)
Fair value 82,816 95,177
Municipal securities    
Debt Securities, Available-for-sale [Abstract]    
Amortized Cost 67,441 69,494
Gross Unrealized Gains 0 356
Gross Unrealized Losses (3,787) (1,404)
Fair value 63,654 68,446
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 12,846 13,892
Gross Unrealized Gains 0 1
Gross Unrealized Losses (921) (853)
Fair Value 11,925 13,040
Allowance for Credit Losses (3) (3)
Net Carrying Value 12,843 13,889
Agency mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Abstract]    
Amortized Cost 300,914 237,798
Gross Unrealized Gains 460 101
Gross Unrealized Losses (31,733) (31,250)
Fair value 269,641 206,649
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 201,840 166,750
Gross Unrealized Gains 102 4
Gross Unrealized Losses (17,530) (14,112)
Fair Value 184,412 152,642
Allowance for Credit Losses 0 0
Net Carrying Value 201,840 166,750
Agency mortgage-backed securities - commercial    
Debt Securities, Available-for-sale [Abstract]    
Amortized Cost 64,214 40,215
Gross Unrealized Gains 276 9
Gross Unrealized Losses (1,159) (1,339)
Fair value 63,331 38,885
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 5,705 5,767
Gross Unrealized Gains 0 0
Gross Unrealized Losses (1,157) (1,246)
Fair Value 4,548 4,521
Allowance for Credit Losses 0 0
Net Carrying Value 5,705 5,767
Private label mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Abstract]    
Amortized Cost 46,623 21,742
Gross Unrealized Gains 186 144
Gross Unrealized Losses (988) (1,107)
Fair value 45,821 20,779
Asset-backed securities    
Debt Securities, Available-for-sale [Abstract]    
Amortized Cost 23,802 8,071
Gross Unrealized Gains 62 17
Gross Unrealized Losses (43) (7)
Fair value 23,821 8,081
Corporate securities    
Debt Securities, Available-for-sale [Abstract]    
Amortized Cost 40,049 39,591
Gross Unrealized Gains 71 25
Gross Unrealized Losses (1,849) (2,778)
Fair value 38,271 36,838
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 29,559 41,037
Gross Unrealized Gains 0 0
Gross Unrealized Losses (1,593) (3,668)
Fair Value 27,966 37,369
Allowance for Credit Losses (151) (290)
Net Carrying Value $ 29,408 $ 40,747
v3.25.0.1
Securities - Carrying Value of Securities by Contractual Maturity Date (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Amortized Cost    
Within one year $ 10,725  
One to five years 24,017  
Five to ten years 70,946  
Five to ten years 85,613  
Amortized Cost 191,301  
Total 626,854 $ 513,315
Held-to-Maturity, Amortized Cost    
Within one year 1,808  
One to five years 24,721  
Five to ten years 12,381  
After ten years 3,495  
Amortized Cost 42,405  
Total 249,950 227,446
Fair Value    
Within one year 10,684  
One to five years 23,988  
Five to ten years 68,040  
After ten years 82,029  
Fair Value 184,741  
Total 587,355 474,855
Held-to-Maturity, Fair Value    
Within one year 1,796  
Five to ten years 24,071  
Five to ten years 11,013  
After ten years 3,011  
Fair Value 39,891  
Total 228,851 207,572
Agency mortgage-backed securities - residential    
Amortized Cost    
Total 300,914 237,798
Held-to-Maturity, Amortized Cost    
Total 201,840 166,750
Fair Value    
Total 269,641 206,649
Held-to-Maturity, Fair Value    
Total 184,412 152,642
Agency mortgage-backed securities - commercial    
Amortized Cost    
Total 64,214 40,215
Held-to-Maturity, Amortized Cost    
Total 5,705 5,767
Fair Value    
Total 63,331 38,885
Held-to-Maturity, Fair Value    
Total 4,548 4,521
Private label mortgage-backed securities - residential    
Amortized Cost    
Total 46,623 21,742
Fair Value    
Total 45,821 20,779
Asset-backed securities    
Amortized Cost    
Total 23,802 8,071
Fair Value    
Total $ 23,821 $ 8,081
v3.25.0.1
Securities - Gross Unrealized Losses and Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value $ 100,802 $ 73,884
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 298,536 302,785
Available-for-sale, Unrealized Loss Position, Fair Value 399,338 376,669
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (444) (720)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (40,597) (38,794)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (41,041) (39,514)
U.S. Government-sponsored agencies    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value 16,856 41,934
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 29,748 24,579
Available-for-sale, Unrealized Loss Position, Fair Value 46,604 66,513
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (111) (161)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (1,371) (1,468)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (1,482) (1,629)
Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value 8,504 2,399
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 52,649 36,193
Available-for-sale, Unrealized Loss Position, Fair Value 61,153 38,592
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (54) (103)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (3,733) (1,301)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (3,787) (1,404)
Agency mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value 41,005 1,089
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 169,483 194,095
Available-for-sale, Unrealized Loss Position, Fair Value 210,488 195,184
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (179) (5)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (31,554) (31,245)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (31,733) (31,250)
Agency mortgage-backed securities - commercial    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value 18,141 21,561
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 12,027 14,217
Available-for-sale, Unrealized Loss Position, Fair Value 30,168 35,778
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (37) (50)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (1,122) (1,289)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (1,159) (1,339)
Private label mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value 3,003 3,567
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 7,450 9,114
Available-for-sale, Unrealized Loss Position, Fair Value 10,453 12,681
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (14) (29)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (974) (1,078)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (988) (1,107)
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value 10,299 1,654
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 0 0
Available-for-sale, Unrealized Loss Position, Fair Value 10,299 1,654
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (43) (7)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses 0 0
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss (43) (7)
Corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value 2,994 1,680
Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value 27,179 24,587
Available-for-sale, Unrealized Loss Position, Fair Value 30,173 26,267
Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses (6) (365)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses (1,843) (2,413)
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss $ (1,849) $ (2,778)
v3.25.0.1
Securities - HTM Portfolio Credit Rating (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total $ 249,950 $ 227,446
Standard & Poor's, AAA Rating | Moody's, Aaa Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 207,545 172,517
Standard & Poor's, AA+ Rating | Moody's, Aa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 8,878 9,917
Standard & Poor's, AA Rating | Moody's, Aa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 2,175 1,538
Standard & Poor's, AA- Rating | Moody's, Aa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 1,793  
Standard & Poor's, A+ Rating | Moody's, A1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total   1,794
Standard & Poor's, A Rating | Moody's, A2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 5,000 5,643
Standard & Poor's, A- Rating | Moody's, A3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 4,509
Standard & Poor's, BBB+ Rating | Moody's, Baa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 8,500 8,500
Standard & Poor's, BBB Rating | Moody's, Baa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 5,500 8,500
Standard & Poor's, BBB- Rating | Moody's, Baa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 8,559 12,528
Standard & Poor's, BB+ Rating | Moody's, Ba1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 2,000 2,000
Municipal Securities    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 12,846 13,892
Municipal Securities | Standard & Poor's, AAA Rating | Moody's, Aaa Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Municipal Securities | Standard & Poor's, AA+ Rating | Moody's, Aa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 8,878 9,917
Municipal Securities | Standard & Poor's, AA Rating | Moody's, Aa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 2,175 1,538
Municipal Securities | Standard & Poor's, AA- Rating | Moody's, Aa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 1,793  
Municipal Securities | Standard & Poor's, A+ Rating | Moody's, A1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total   1,794
Municipal Securities | Standard & Poor's, A Rating | Moody's, A2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 643
Municipal Securities | Standard & Poor's, A- Rating | Moody's, A3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Municipal Securities | Standard & Poor's, BBB+ Rating | Moody's, Baa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Municipal Securities | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Municipal Securities | Standard & Poor's, BBB- Rating | Moody's, Baa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Municipal Securities | Standard & Poor's, BB+ Rating | Moody's, Ba1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Residential    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 201,840 166,750
Mortgage-Backed Securities - Residential | Standard & Poor's, AAA Rating | Moody's, Aaa Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 201,840 166,750
Mortgage-Backed Securities - Residential | Standard & Poor's, AA+ Rating | Moody's, Aa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Residential | Standard & Poor's, AA Rating | Moody's, Aa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Residential | Standard & Poor's, AA- Rating | Moody's, Aa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0  
Mortgage-Backed Securities - Residential | Standard & Poor's, A+ Rating | Moody's, A1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total   0
Mortgage-Backed Securities - Residential | Standard & Poor's, A Rating | Moody's, A2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Residential | Standard & Poor's, A- Rating | Moody's, A3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Residential | Standard & Poor's, BBB+ Rating | Moody's, Baa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Residential | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Residential | Standard & Poor's, BBB- Rating | Moody's, Baa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Residential | Standard & Poor's, BB+ Rating | Moody's, Ba1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Commercial    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 5,705 5,767
Mortgage-Backed Securities - Commercial | Standard & Poor's, AAA Rating | Moody's, Aaa Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 5,705 5,767
Mortgage-Backed Securities - Commercial | Standard & Poor's, AA+ Rating | Moody's, Aa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Commercial | Standard & Poor's, AA Rating | Moody's, Aa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Commercial | Standard & Poor's, AA- Rating | Moody's, Aa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0  
Mortgage-Backed Securities - Commercial | Standard & Poor's, A+ Rating | Moody's, A1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total   0
Mortgage-Backed Securities - Commercial | Standard & Poor's, A Rating | Moody's, A2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Commercial | Standard & Poor's, A- Rating | Moody's, A3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Commercial | Standard & Poor's, BBB+ Rating | Moody's, Baa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Commercial | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Commercial | Standard & Poor's, BBB- Rating | Moody's, Baa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Mortgage-Backed Securities - Commercial | Standard & Poor's, BB+ Rating | Moody's, Ba1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Corporate Securities    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 29,559 41,037
Corporate Securities | Standard & Poor's, AAA Rating | Moody's, Aaa Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Corporate Securities | Standard & Poor's, AA+ Rating | Moody's, Aa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Corporate Securities | Standard & Poor's, AA Rating | Moody's, Aa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 0
Corporate Securities | Standard & Poor's, AA- Rating | Moody's, Aa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0  
Corporate Securities | Standard & Poor's, A+ Rating | Moody's, A1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total   0
Corporate Securities | Standard & Poor's, A Rating | Moody's, A2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 5,000 5,000
Corporate Securities | Standard & Poor's, A- Rating | Moody's, A3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 0 4,509
Corporate Securities | Standard & Poor's, BBB+ Rating | Moody's, Baa1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 8,500 8,500
Corporate Securities | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 5,500 8,500
Corporate Securities | Standard & Poor's, BBB- Rating | Moody's, Baa3 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total 8,559 12,528
Corporate Securities | Standard & Poor's, BB+ Rating | Moody's, Ba1 Rating    
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items]    
Total $ 2,000 $ 2,000
v3.25.0.1
Securities - Additional Information (Details Textual)
12 Months Ended
Dec. 31, 2024
USD ($)
security
Dec. 31, 2023
USD ($)
security
Debt Securities, Available-for-sale [Line Items]    
AFS debt securities, accrued interest receivable, location Accrued interest receivable  
HTM debt securities, accrued interest receivable, location Accrued interest receivable  
AFS debt securities, accrued interest receivable $ 2,800,000 $ 2,900,000
HTM debt securities, accrued interest receivable 1,100,000 1,200,000
Allowance for credit loss on HTM securities 154,000 293,000
Gross realized gain 0  
Fair value 587,355,000 474,855,000
Total fair value $ 603,900,000 $ 578,900,000
Percentage of available-for-sale portfolio 72.00% 85.00%
Number of securities in portfolio | security 579 434
Number of securities in portfolio, unrealized loss position | security 482 512
Mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
AFS and HTM securities, percentage (over) 92.00% 95.00%
Asset Pledged as Collateral    
Debt Securities, Available-for-sale [Line Items]    
Fair value $ 795,000,000.0  
v3.25.0.1
Securities - Carrying Values of Readily Determinable Fair Value Equity Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]    
Carrying value of equity securities $ 2,724 $ 2,102
GenOpp Financial Fund LP    
Debt and Equity Securities, FV-NI [Line Items]    
Carrying value of equity securities $ 2,724 $ 2,102
v3.25.0.1
Securities - Nonmarketable Equity Securities With No Readily-Determinable Fair Value Changes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]    
Carrying value $ 20,017 $ 12,374
Carrying value adjustments 0 0
Impairment 0 0
Upward changes for observable prices 0 0
Downward changes for observable prices 0 0
Net change 20,017 12,374
Unfunded commitments $ 9,100 $ 11,500
v3.25.0.1
Loans - Categories (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans $ 4,143,966 $ 3,802,855    
Net deferred loan origination costs, premiums and discounts on purchased loans, and other 26,680 37,365    
Loans 4,170,646 3,840,220    
Allowance for credit losses (44,769) (38,774) $ (31,737) $ (27,841)
Net loans 4,125,877 3,801,446    
Interest rate swaps        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Net deferred loan origination costs, premiums and discounts on purchased loans, and other 22,900 27,800    
Commercial and industrial        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (1,265) (2,185) (1,711) (1,891)
Owner-occupied commercial real estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (528) (825) (651) (742)
Investor commercial real estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (1,149) (1,311) (1,099) (328)
Construction        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (1,984) (2,167) (2,074) (1,612)
Single tenant lease financing        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (4,782) (8,129) (10,519) (10,385)
Public finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (703) (1,372) (1,753) (1,776)
Healthcare finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (1,412) (1,976) (2,997) (5,940)
Small business lending        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (16,161) (6,532) (2,168) (1,387)
Franchise finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (8,976) (6,363) (3,988) (1,083)
Residential mortgage        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (2,136) (2,054) (1,559) (643)
Home equity        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (106) (171) (69) (64)
Other consumer        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Allowance for credit losses (5,567) (5,689) $ (3,149) $ (1,990)
Commercial loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 3,342,585 3,005,924    
Commercial loans | Commercial and industrial        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 120,175 129,349    
Commercial loans | Owner-occupied commercial real estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 53,591 57,286    
Commercial loans | Investor commercial real estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 269,431 132,077    
Commercial loans | Construction        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 413,523 261,750    
Commercial loans | Single tenant lease financing        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 949,748 936,616    
Commercial loans | Public finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 485,867 521,764    
Commercial loans | Healthcare finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 181,427 222,793    
Commercial loans | Small business lending        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 331,914 218,506    
Commercial loans | Small business lending | Loans guaranteed by the U.S. government        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 34,000 33,500    
Commercial loans | Franchise finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 536,909 525,783    
Consumer loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 801,381 796,931    
Consumer loans | Residential mortgage        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 375,160 395,648    
Consumer loans | Home equity        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans 18,274 23,669    
Consumer loans | Other consumer        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total commercial and consumer loans $ 407,947 $ 377,614    
v3.25.0.1
Loans - Change in the Balances of the ACL (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Allowance for loan losses:      
Balance, Beginning of Period $ 38,774 $ 31,737 $ 27,841
(Credit) Provision Charged to Expense 18,815 15,454 4,977
Losses Charged Off (13,270) (11,884) (2,760)
Recoveries 450 505 1,679
Balance, End of Period 44,769 38,774 31,737
Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   2,962  
Balance, End of Period     2,962
Commercial and industrial      
Allowance for loan losses:      
Balance, Beginning of Period 2,185 1,711 1,891
(Credit) Provision Charged to Expense (928) 7,400 (185)
Losses Charged Off 0 (7,049) 0
Recoveries 8 243 5
Balance, End of Period 1,265 2,185 1,711
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   (120)  
Balance, End of Period     (120)
Owner-occupied commercial real estate      
Allowance for loan losses:      
Balance, Beginning of Period 825 651 742
(Credit) Provision Charged to Expense (297) 112 (91)
Losses Charged Off 0 0 0
Recoveries 0 0 0
Balance, End of Period 528 825 651
Owner-occupied commercial real estate | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   62  
Balance, End of Period     62
Investor commercial real estate      
Allowance for loan losses:      
Balance, Beginning of Period 1,311 1,099 328
(Credit) Provision Charged to Expense (162) 994 771
Losses Charged Off 0 (591) 0
Recoveries 0 0 0
Balance, End of Period 1,149 1,311 1,099
Investor commercial real estate | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   (191)  
Balance, End of Period     (191)
Construction      
Allowance for loan losses:      
Balance, Beginning of Period 2,167 2,074 1,612
(Credit) Provision Charged to Expense (183) 528 462
Losses Charged Off 0 0 0
Recoveries 0 0 0
Balance, End of Period 1,984 2,167 2,074
Construction | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   (435)  
Balance, End of Period     (435)
Single tenant lease financing      
Allowance for loan losses:      
Balance, Beginning of Period 8,129 10,519 10,385
(Credit) Provision Charged to Expense (3,152) (2,044) (1,097)
Losses Charged Off (195) 0 0
Recoveries 0 0 1,231
Balance, End of Period 4,782 8,129 10,519
Single tenant lease financing | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   (346)  
Balance, End of Period     (346)
Public finance      
Allowance for loan losses:      
Balance, Beginning of Period 1,372 1,753 1,776
(Credit) Provision Charged to Expense (669) (246) (23)
Losses Charged Off 0 0 0
Recoveries 0 0 0
Balance, End of Period 703 1,372 1,753
Public finance | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   (135)  
Balance, End of Period     (135)
Healthcare finance      
Allowance for loan losses:      
Balance, Beginning of Period 1,976 2,997 5,940
(Credit) Provision Charged to Expense (564) (1,450) (2,943)
Losses Charged Off 0 (605) 0
Recoveries 0 0 0
Balance, End of Period 1,412 1,976 2,997
Healthcare finance | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   1,034  
Balance, End of Period     1,034
Small business lending      
Allowance for loan losses:      
Balance, Beginning of Period 6,532 2,168 1,387
(Credit) Provision Charged to Expense 19,745 6,539 1,154
Losses Charged Off (10,441) (2,586) (402)
Recoveries 325 77 29
Balance, End of Period 16,161 6,532 2,168
Small business lending | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   334  
Balance, End of Period     334
Franchise finance      
Allowance for loan losses:      
Balance, Beginning of Period 6,363 3,988 1,083
(Credit) Provision Charged to Expense 4,079 3,019 2,905
Losses Charged Off (1,466) (331) 0
Recoveries 0 0 0
Balance, End of Period 8,976 6,363 3,988
Franchise finance | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   (313)  
Balance, End of Period     (313)
Residential mortgage      
Allowance for loan losses:      
Balance, Beginning of Period 2,054 1,559 643
(Credit) Provision Charged to Expense 240 224 912
Losses Charged Off (159) (140) 0
Recoveries 1 5 4
Balance, End of Period 2,136 2,054 1,559
Residential mortgage | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   406  
Balance, End of Period     406
Home equity      
Allowance for loan losses:      
Balance, Beginning of Period 171 69 64
(Credit) Provision Charged to Expense (72) (37) (134)
Losses Charged Off 0 0 0
Recoveries 7 6 139
Balance, End of Period 106 171 69
Home equity | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   133  
Balance, End of Period     133
Other consumer      
Allowance for loan losses:      
Balance, Beginning of Period 5,689 3,149 1,990
(Credit) Provision Charged to Expense 778 415 3,246
Losses Charged Off (1,009) (582) (2,358)
Recoveries 109 174 271
Balance, End of Period $ 5,567 5,689 3,149
Other consumer | Cumulative Effect, Period of Adoption, Adjustment      
Allowance for loan losses:      
Balance, Beginning of Period   $ 2,533  
Balance, End of Period     $ 2,533
v3.25.0.1
Loans - Provision for Credit Losses on Off-Balance Sheet Commitments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance $ 3,745 $ 0  
Provision for credit losses (1,606) 1,241 $ 0
Ending balance 2,139 3,745 0
Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   2,504  
Ending balance     2,504
Commercial loans      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 3,678 0  
Provision for credit losses (1,583) 1,364  
Ending balance 2,095 3,678 0
Commercial loans | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   2,314  
Ending balance     2,314
Commercial loans | Commercial and industrial      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 233 0  
Provision for credit losses 0 123  
Ending balance 233 233 0
Commercial loans | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   110  
Ending balance     110
Commercial loans | Owner-occupied commercial real estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 9 0  
Provision for credit losses 2 9  
Ending balance 11 9 0
Commercial loans | Owner-occupied commercial real estate | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   0  
Ending balance     0
Commercial loans | Investor commercial real estate      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 6 0  
Provision for credit losses (5) (3)  
Ending balance 1 6 0
Commercial loans | Investor commercial real estate | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   9  
Ending balance     9
Commercial loans | Construction      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 2,889 0  
Provision for credit losses (1,321) 696  
Ending balance 1,568 2,889 0
Commercial loans | Construction | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   2,193  
Ending balance     2,193
Commercial loans | Single tenant lease financing      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 0    
Provision for credit losses 19    
Ending balance 19 0  
Commercial loans | Healthcare finance      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 0 0  
Provision for credit losses   (2)  
Ending balance   0 0
Commercial loans | Healthcare finance | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   2  
Ending balance     2
Commercial loans | Small business lending      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 541 0  
Provision for credit losses (278) 541  
Ending balance 263 541 0
Commercial loans | Small business lending | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   0  
Ending balance     0
Consumer loans      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 67 0  
Provision for credit losses (23) (123)  
Ending balance 44 67 0
Consumer loans | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   190  
Ending balance     190
Consumer loans | Residential mortgage      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 11 0  
Provision for credit losses (10) (116)  
Ending balance 1 11 0
Consumer loans | Residential mortgage | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   127  
Ending balance     127
Consumer loans | Home equity      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 45 0  
Provision for credit losses (10) (7)  
Ending balance 35 45 0
Consumer loans | Home equity | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   52  
Ending balance     52
Consumer loans | Other consumer      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance 11 0  
Provision for credit losses (3) 0  
Ending balance $ 8 11 0
Consumer loans | Other consumer | Cumulative Effect, Period of Adoption, Adjustment      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Beginning balance   $ 11  
Ending balance     $ 11
v3.25.0.1
Loans - Credit Risk Profile (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Amortized cost by origination year      
Year one $ 588,038 $ 624,674  
Year two 700,374 1,040,686  
Year three 973,997 463,824  
Year four 420,019 300,968  
Year five 256,915 362,098  
Prior 1,124,585 937,458  
Revolving loans 79,127 71,369  
Revolving loans converted to term 911 1,778  
Loans 4,143,966 3,802,855  
Year-to-date gross charge-offs      
Year one 1,250 164  
Year two 6,013 1,238  
Year three 3,439 7,420  
Year four 1,047 1,420  
Year five 620 808  
Prior 901 834  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 13,270 11,884 $ 2,760
Total commercial and consumer loans 4,143,966 3,802,855  
Commercial and industrial      
Year-to-date gross charge-offs      
Total 0 7,049 0
Owner-occupied commercial real estate      
Year-to-date gross charge-offs      
Total 0 0 0
Investor commercial real estate      
Year-to-date gross charge-offs      
Total 0 591 0
Construction      
Year-to-date gross charge-offs      
Total 0 0 0
Single tenant lease financing      
Year-to-date gross charge-offs      
Total 195 0 0
Public finance      
Year-to-date gross charge-offs      
Total 0 0 0
Healthcare finance      
Year-to-date gross charge-offs      
Total 0 605 0
Small business lending      
Year-to-date gross charge-offs      
Total 10,441 2,586 402
Franchise finance      
Year-to-date gross charge-offs      
Total 1,466 331 0
Residential mortgage      
Year-to-date gross charge-offs      
Total 159 140 0
Home equity      
Year-to-date gross charge-offs      
Total 0 0 0
Other consumer      
Year-to-date gross charge-offs      
Total 1,009 582 $ 2,358
Commercial loans      
Amortized cost by origination year      
Loans 3,342,585 3,005,924  
Year-to-date gross charge-offs      
Total commercial and consumer loans 3,342,585 3,005,924  
Commercial loans | Commercial and industrial      
Amortized cost by origination year      
Year one 23,586 24,329  
Year two 8,665 24,019  
Year three 18,315 15,464  
Year four 5,418 2,502  
Year five 2,362 12,365  
Prior 17,829 8,703  
Revolving loans 44,000 41,967  
Revolving loans converted to term 0 0  
Loans 120,175 129,349  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 0  
Year three 0 6,914  
Year four 0 5  
Year five 0 130  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 0 7,049  
Total commercial and consumer loans 120,175 129,349  
Commercial loans | Commercial and industrial | Pass      
Amortized cost by origination year      
Year one 23,539 24,329  
Year two 8,501 19,382  
Year three 13,853 15,464  
Year four 5,418 2,502  
Year five 2,362 12,365  
Prior 17,829 8,703  
Revolving loans 44,000 41,967  
Revolving loans converted to term 0 0  
Loans 115,502 124,712  
Year-to-date gross charge-offs      
Total commercial and consumer loans 115,502 124,712  
Commercial loans | Commercial and industrial | Special Mention      
Amortized cost by origination year      
Year one 47 0  
Year two 164 4,637  
Year three 4,462 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 4,673 4,637  
Year-to-date gross charge-offs      
Total commercial and consumer loans 4,673 4,637  
Commercial loans | Commercial and industrial | Substandard      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Commercial and industrial | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Owner-occupied commercial real estate      
Amortized cost by origination year      
Year one 7,410 1,492  
Year two 1,458 11,315  
Year three 5,936 8,912  
Year four 7,326 14,983  
Year five 13,860 5,255  
Prior 17,601 15,329  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 53,591 57,286  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 0 0  
Total commercial and consumer loans 53,591 57,286  
Commercial loans | Owner-occupied commercial real estate | Pass      
Amortized cost by origination year      
Year one 7,410 1,492  
Year two 1,458 10,731  
Year three 5,366 7,990  
Year four 6,438 6,591  
Year five 5,716 5,255  
Prior 14,793 12,485  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 41,181 44,544  
Year-to-date gross charge-offs      
Total commercial and consumer loans 41,181 44,544  
Commercial loans | Owner-occupied commercial real estate | Special Mention      
Amortized cost by origination year      
Year one 0 0  
Year two 0 584  
Year three 570 922  
Year four 888 8,392  
Year five 8,144 0  
Prior 1,153 1,189  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 10,755 11,087  
Year-to-date gross charge-offs      
Total commercial and consumer loans 10,755 11,087  
Commercial loans | Owner-occupied commercial real estate | Substandard      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 1,655 1,655  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 1,655 1,655  
Year-to-date gross charge-offs      
Total commercial and consumer loans 1,655 1,655  
Commercial loans | Owner-occupied commercial real estate | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Investor commercial real estate      
Amortized cost by origination year      
Year one 71,430 6,571  
Year two 3,849 35,209  
Year three 88,290 26,841  
Year four 65,050 9,864  
Year five 9,607 47,827  
Prior 31,205 5,765  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 269,431 132,077  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 591  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 0 591  
Total commercial and consumer loans 269,431 132,077  
Commercial loans | Investor commercial real estate | Pass      
Amortized cost by origination year      
Year one 71,430 6,571  
Year two 3,849 35,209  
Year three 88,290 26,841  
Year four 65,050 9,864  
Year five 9,607 47,827  
Prior 27,474 5,765  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 265,700 132,077  
Year-to-date gross charge-offs      
Total commercial and consumer loans 265,700 132,077  
Commercial loans | Investor commercial real estate | Special Mention      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 3,731 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 3,731 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 3,731 0  
Commercial loans | Investor commercial real estate | Substandard      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Investor commercial real estate | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Construction      
Amortized cost by origination year      
Year one 35,177 26,539  
Year two 186,979 153,066  
Year three 140,299 70,175  
Year four 47,598 6,121  
Year five 1,622 0  
Prior 0 0  
Revolving loans 1,848 5,849  
Revolving loans converted to term 0 0  
Loans 413,523 261,750  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 0 0  
Total commercial and consumer loans 413,523 261,750  
Commercial loans | Construction | Pass      
Amortized cost by origination year      
Year one 35,177 26,539  
Year two 186,979 153,066  
Year three 140,299 70,175  
Year four 47,598 6,121  
Year five 1,622 0  
Prior 0 0  
Revolving loans 1,848 5,849  
Revolving loans converted to term 0 0  
Loans 413,523 261,750  
Year-to-date gross charge-offs      
Total commercial and consumer loans 413,523 261,750  
Commercial loans | Construction | Special Mention      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Construction | Substandard      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Construction | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Single tenant lease financing      
Amortized cost by origination year      
Year one 80,516 52,360  
Year two 46,674 226,326  
Year three 220,701 95,773  
Year four 91,652 68,895  
Year five 63,506 142,023  
Prior 446,699 351,239  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 949,748 936,616  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 195 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 195 0  
Total commercial and consumer loans 949,748 936,616  
Commercial loans | Single tenant lease financing | Pass      
Amortized cost by origination year      
Year one 79,872 52,360  
Year two 46,674 221,964  
Year three 211,005 89,075  
Year four 88,192 65,863  
Year five 63,506 142,023  
Prior 437,564 346,695  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 926,813 917,980  
Year-to-date gross charge-offs      
Total commercial and consumer loans 926,813 917,980  
Commercial loans | Single tenant lease financing | Special Mention      
Amortized cost by origination year      
Year one 644 0  
Year two 0 4,362  
Year three 9,696 6,698  
Year four 3,460 3,032  
Year five 0 0  
Prior 9,135 4,544  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 22,935 18,636  
Year-to-date gross charge-offs      
Total commercial and consumer loans 22,935 18,636  
Commercial loans | Single tenant lease financing | Substandard      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Single tenant lease financing | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Public finance      
Amortized cost by origination year      
Year one 55,306 3,805  
Year two 1,290 30,583  
Year three 7,790 29,750  
Year four 12,050 719  
Year five 463 43,611  
Prior 408,968 413,296  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 485,867 521,764  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 0 0  
Total commercial and consumer loans 485,867 521,764  
Commercial loans | Public finance | Pass      
Amortized cost by origination year      
Year one 55,306 3,805  
Year two 1,290 30,583  
Year three 7,790 29,750  
Year four 12,050 719  
Year five 463 43,611  
Prior 407,008 411,176  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 483,907 519,644  
Year-to-date gross charge-offs      
Total commercial and consumer loans 483,907 519,644  
Commercial loans | Public finance | Special Mention      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 1,960 2,120  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 1,960 2,120  
Year-to-date gross charge-offs      
Total commercial and consumer loans 1,960 2,120  
Commercial loans | Public finance | Substandard      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Public finance | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Healthcare finance      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 9,955  
Year four 8,969 124,654  
Year five 104,427 64,700  
Prior 68,031 23,484  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 181,427 222,793  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 605  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 0 605  
Total commercial and consumer loans 181,427 222,793  
Commercial loans | Healthcare finance | Pass      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 9,955  
Year four 8,969 124,654  
Year five 104,427 63,486  
Prior 67,413 23,484  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 180,809 221,579  
Year-to-date gross charge-offs      
Total commercial and consumer loans 180,809 221,579  
Commercial loans | Healthcare finance | Special Mention      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 1,214  
Prior 618 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 618 1,214  
Year-to-date gross charge-offs      
Total commercial and consumer loans 618 1,214  
Commercial loans | Healthcare finance | Substandard      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Healthcare finance | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Small business lending      
Amortized cost by origination year      
Year one 142,006 120,587  
Year two 103,156 44,427  
Year three 32,870 15,232  
Year four 11,973 16,066  
Year five 11,011 6,002  
Prior 12,110 10,330  
Revolving loans 18,788 5,862  
Revolving loans converted to term 0 0  
Loans 331,914 218,506  
Year-to-date gross charge-offs      
Year one 1,093 67  
Year two 4,600 739  
Year three 3,038 416  
Year four 567 1,364  
Year five 619 0  
Prior 524 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 10,441 2,586  
Total commercial and consumer loans 331,914 218,506  
Commercial loans | Small business lending | Pass      
Amortized cost by origination year      
Year one 138,044 119,149  
Year two 94,556 42,077  
Year three 30,486 15,180  
Year four 11,715 13,948  
Year five 9,687 4,582  
Prior 9,896 9,215  
Revolving loans 17,197 5,388  
Revolving loans converted to term 0 0  
Loans 311,581 209,539  
Year-to-date gross charge-offs      
Total commercial and consumer loans 311,581 209,539  
Commercial loans | Small business lending | Special Mention      
Amortized cost by origination year      
Year one 1,022 343  
Year two 4,691 496  
Year three 927 0  
Year four 0 341  
Year five 354 265  
Prior 1,213 698  
Revolving loans 697 0  
Revolving loans converted to term 0 0  
Loans 8,904 2,143  
Year-to-date gross charge-offs      
Total commercial and consumer loans 8,904 2,143  
Commercial loans | Small business lending | Substandard      
Amortized cost by origination year      
Year one 2,940 1,095  
Year two 3,909 1,854  
Year three 1,457 52  
Year four 258 1,777  
Year five 970 1,155  
Prior 1,001 417  
Revolving loans 894 474  
Revolving loans converted to term 0 0  
Loans 11,429 6,824  
Year-to-date gross charge-offs      
Total commercial and consumer loans 11,429 6,824  
Commercial loans | Small business lending | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Commercial loans | Franchise finance      
Amortized cost by origination year      
Year one 67,065 256,944  
Year two 235,946 210,617  
Year three 184,281 58,222  
Year four 49,617 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 536,909 525,783  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 1,171 331  
Year three 0 0  
Year four 295 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 1,466 331  
Total commercial and consumer loans 536,909 525,783  
Commercial loans | Franchise finance | Pass      
Amortized cost by origination year      
Year one 67,065 256,944  
Year two 230,425 210,617  
Year three 172,830 57,919  
Year four 42,869 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 513,189 525,480  
Year-to-date gross charge-offs      
Total commercial and consumer loans 513,189 525,480  
Commercial loans | Franchise finance | Special Mention      
Amortized cost by origination year      
Year one 0 0  
Year two 1,978 0  
Year three 5,084 0  
Year four 6,275 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 13,337 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 13,337 0  
Commercial loans | Franchise finance | Substandard      
Amortized cost by origination year      
Year one 0 0  
Year two 3,543 0  
Year three 6,367 303  
Year four 473 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 10,383 303  
Year-to-date gross charge-offs      
Total commercial and consumer loans 10,383 303  
Commercial loans | Franchise finance | Doubtful      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Consumer loans      
Amortized cost by origination year      
Loans 801,381 796,931  
Year-to-date gross charge-offs      
Total commercial and consumer loans 801,381 796,931  
Consumer loans | Residential mortgage      
Amortized cost by origination year      
Year one 3,577 14,942  
Year two 13,533 196,191  
Year three 185,155 91,466  
Year four 86,822 30,165  
Year five 28,724 13,072  
Prior 57,349 49,812  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 375,160 395,648  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 53  
Year three 101 70  
Year four 58 0  
Year five 0 17  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 159 140  
Total commercial and consumer loans 375,160 395,648  
Consumer loans | Residential mortgage | Performing      
Amortized cost by origination year      
Year one 3,577 14,942  
Year two 13,533 195,453  
Year three 183,484 91,010  
Year four 86,213 30,092  
Year five 28,655 13,072  
Prior 55,615 48,330  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 371,077 392,899  
Year-to-date gross charge-offs      
Total commercial and consumer loans 371,077 392,899  
Consumer loans | Residential mortgage | Nonperforming      
Amortized cost by origination year      
Year one 0 0  
Year two 0 738  
Year three 1,671 456  
Year four 609 73  
Year five 69 0  
Prior 1,734 1,482  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 4,083 2,749  
Year-to-date gross charge-offs      
Total commercial and consumer loans 4,083 2,749  
Consumer loans | Home equity      
Amortized cost by origination year      
Year one 0 1,369  
Year two 992 1,997  
Year three 1,450 436  
Year four 356 467  
Year five 414 141  
Prior 530 585  
Revolving loans 13,621 16,896  
Revolving loans converted to term 911 1,778  
Loans 18,274 23,669  
Year-to-date gross charge-offs      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 0 0  
Total commercial and consumer loans 18,274 23,669  
Consumer loans | Home equity | Performing      
Amortized cost by origination year      
Year one 0 1,369  
Year two 992 1,997  
Year three 1,450 436  
Year four 356 467  
Year five 414 141  
Prior 530 585  
Revolving loans 13,621 16,896  
Revolving loans converted to term 911 1,778  
Loans 18,274 23,669  
Year-to-date gross charge-offs      
Total commercial and consumer loans 18,274 23,669  
Consumer loans | Home equity | Nonperforming      
Amortized cost by origination year      
Year one 0 0  
Year two 0 0  
Year three 0 0  
Year four 0 0  
Year five 0 0  
Prior 0 0  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 0 0  
Year-to-date gross charge-offs      
Total commercial and consumer loans 0 0  
Consumer loans | Other consumer      
Amortized cost by origination year      
Year one 101,965 115,736  
Year two 97,832 106,936  
Year three 88,910 41,598  
Year four 33,188 26,532  
Year five 20,919 27,102  
Prior 64,263 58,915  
Revolving loans 870 795  
Revolving loans converted to term 0 0  
Loans 407,947 377,614  
Year-to-date gross charge-offs      
Year one 157 97  
Year two 242 115  
Year three 300 20  
Year four 127 51  
Year five 1 56  
Prior 182 243  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Total 1,009 582  
Total commercial and consumer loans 407,947 377,614  
Consumer loans | Other consumer | Performing      
Amortized cost by origination year      
Year one 101,965 115,736  
Year two 97,832 106,883  
Year three 88,872 41,598  
Year four 33,177 26,527  
Year five 20,918 27,087  
Prior 64,251 58,902  
Revolving loans 870 795  
Revolving loans converted to term 0 0  
Loans 407,885 377,528  
Year-to-date gross charge-offs      
Total commercial and consumer loans 407,885 377,528  
Consumer loans | Other consumer | Nonperforming      
Amortized cost by origination year      
Year one 0 0  
Year two 0 53  
Year three 38 0  
Year four 11 5  
Year five 1 15  
Prior 12 13  
Revolving loans 0 0  
Revolving loans converted to term 0 0  
Loans 62 86  
Year-to-date gross charge-offs      
Total commercial and consumer loans $ 62 $ 86  
v3.25.0.1
Loans - Loan Portfolio Aging Analysis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans $ 4,143,966 $ 3,802,855
Total  Past Due    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 47,864 11,604
30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 22,090 3,013
60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 6,496 3,778
90 Days  or More Past Due    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 19,278 4,813
Current    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 4,096,102 3,791,251
Commercial loans    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 3,342,585 3,005,924
Commercial loans | Commercial and industrial    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 120,175 129,349
Commercial loans | Owner-occupied commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 53,591 57,286
Commercial loans | Investor commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 269,431 132,077
Commercial loans | Construction    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 413,523 261,750
Commercial loans | Single tenant lease financing    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 949,748 936,616
Commercial loans | Public finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 485,867 521,764
Commercial loans | Healthcare finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 181,427 222,793
Commercial loans | Small business lending    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 331,914 218,506
Commercial loans | Franchise finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 536,909 525,783
Commercial loans | Total  Past Due | Commercial and industrial    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 61
Commercial loans | Total  Past Due | Owner-occupied commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | Total  Past Due | Investor commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | Total  Past Due | Construction    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | Total  Past Due | Single tenant lease financing    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | Total  Past Due | Public finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | Total  Past Due | Healthcare finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | Total  Past Due | Small business lending    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 18,714 5,531
Commercial loans | Total  Past Due | Franchise finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 22,559 3,226
Commercial loans | 30-59 Days Past Due | Commercial and industrial    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 40
Commercial loans | 30-59 Days Past Due | Owner-occupied commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 30-59 Days Past Due | Investor commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 30-59 Days Past Due | Construction    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 30-59 Days Past Due | Single tenant lease financing    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 30-59 Days Past Due | Public finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 30-59 Days Past Due | Healthcare finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 30-59 Days Past Due | Small business lending    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 11,817 2,680
Commercial loans | 30-59 Days Past Due | Franchise finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 9,431 0
Commercial loans | 60-89 Days Past Due | Commercial and industrial    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 21
Commercial loans | 60-89 Days Past Due | Owner-occupied commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 60-89 Days Past Due | Investor commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 60-89 Days Past Due | Construction    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 60-89 Days Past Due | Single tenant lease financing    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 60-89 Days Past Due | Public finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 60-89 Days Past Due | Healthcare finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 60-89 Days Past Due | Small business lending    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 1,310 57
Commercial loans | 60-89 Days Past Due | Franchise finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 3,279 2,923
Commercial loans | 90 Days  or More Past Due | Commercial and industrial    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 90 Days  or More Past Due | Owner-occupied commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 90 Days  or More Past Due | Investor commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 90 Days  or More Past Due | Construction    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 90 Days  or More Past Due | Single tenant lease financing    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 90 Days  or More Past Due | Public finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 90 Days  or More Past Due | Healthcare finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Commercial loans | 90 Days  or More Past Due | Small business lending    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 5,587 2,794
Commercial loans | 90 Days  or More Past Due | Franchise finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 9,849 303
Commercial loans | Current | Commercial and industrial    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 120,175 129,288
Commercial loans | Current | Owner-occupied commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 53,591 57,286
Commercial loans | Current | Investor commercial real estate    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 269,431 132,077
Commercial loans | Current | Construction    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 413,523 261,750
Commercial loans | Current | Single tenant lease financing    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 949,748 936,616
Commercial loans | Current | Public finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 485,867 521,764
Commercial loans | Current | Healthcare finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 181,427 222,793
Commercial loans | Current | Small business lending    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 313,200 212,975
Commercial loans | Current | Franchise finance    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 514,350 522,557
Consumer loans    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 801,381 796,931
Consumer loans | Residential mortgage    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 375,160 395,648
Consumer loans | Home equity    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 18,274 23,669
Consumer loans | Other consumer    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 407,947 377,614
Consumer loans | Total  Past Due | Residential mortgage    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 6,174 2,442
Consumer loans | Total  Past Due | Home equity    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Consumer loans | Total  Past Due | Other consumer    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 417 344
Consumer loans | 30-59 Days Past Due | Residential mortgage    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 648 70
Consumer loans | 30-59 Days Past Due | Home equity    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Consumer loans | 30-59 Days Past Due | Other consumer    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 194 223
Consumer loans | 60-89 Days Past Due | Residential mortgage    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 1,711 709
Consumer loans | 60-89 Days Past Due | Home equity    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Consumer loans | 60-89 Days Past Due | Other consumer    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 196 68
Consumer loans | 90 Days  or More Past Due | Residential mortgage    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 3,815 1,663
Consumer loans | 90 Days  or More Past Due | Home equity    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 0 0
Consumer loans | 90 Days  or More Past Due | Other consumer    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 27 53
Consumer loans | Current | Residential mortgage    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 368,986 393,206
Consumer loans | Current | Home equity    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans 18,274 23,669
Consumer loans | Current | Other consumer    
Financing Receivable, Past Due [Line Items]    
Total commercial and consumer loans $ 407,530 $ 377,270
v3.25.0.1
Loans - Nonaccrual Loans and Loans Past Due 90 Days or More and Still Accruing (Details) - Nonaccrual - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]    
Nonaccrual Loans $ 25,955 $ 9,124
Nonaccrual Loans with no Allowance for Credit Losses 8,922 2,901
Total Loans 90 Days or More Past Due and Accruing 2,466 838
Commercial loans | Commercial and industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
Nonaccrual Loans 0 0
Nonaccrual Loans with no Allowance for Credit Losses 0 0
Total Loans 90 Days or More Past Due and Accruing 0 0
Commercial loans | Owner-occupied commercial real estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Nonaccrual Loans 0 0
Nonaccrual Loans with no Allowance for Credit Losses 0 0
Total Loans 90 Days or More Past Due and Accruing 0 0
Commercial loans | Small business lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Nonaccrual Loans 11,429 6,824
Nonaccrual Loans with no Allowance for Credit Losses 4,778 904
Total Loans 90 Days or More Past Due and Accruing 1,320 0
Commercial loans | Franchise finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Nonaccrual Loans 10,382 303
Nonaccrual Loans with no Allowance for Credit Losses 0 0
Total Loans 90 Days or More Past Due and Accruing 0 0
Consumer loans | Residential mortgage    
Financing Receivable, Credit Quality Indicator [Line Items]    
Nonaccrual Loans 4,083 1,911
Nonaccrual Loans with no Allowance for Credit Losses 4,083 1,911
Total Loans 90 Days or More Past Due and Accruing 1,142 838
Consumer loans | Other consumer    
Financing Receivable, Credit Quality Indicator [Line Items]    
Nonaccrual Loans 61 86
Nonaccrual Loans with no Allowance for Credit Losses 61 86
Total Loans 90 Days or More Past Due and Accruing $ 4 $ 0
v3.25.0.1
Loans - Textual (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
loan
property
Dec. 31, 2024
USD ($)
loan
property
Dec. 31, 2023
USD ($)
loan
property
Receivables [Abstract]      
Nonaccural, interest income | $   $ 700 $ 300
Loan modifications, number of loans | loan   5 0
Financing Receivable, Modified [Line Items]      
Loan modifications, number of loans | loan   5 0
Total loans modified | $ $ 9,297 $ 9,300  
Other real estate owned | $ $ 272 $ 272 $ 375
Other real estate owned, number of properties | property 1 1 2
Loans in process of foreclosure | $ $ 2,100 $ 2,100 $ 800
Loans in process of foreclosure, number of loans | loan 9 9 1
Accrued interest receivable on loans, location Accrued interest receivable Accrued interest receivable  
Accrued interest receivable on loans | $ $ 23,800 $ 23,800 $ 22,000
Investor commercial real estate      
Receivables [Abstract]      
Loan modifications, number of loans | loan   4  
Financing Receivable, Modified [Line Items]      
Loan modifications, number of loans | loan   4  
Total loans modified | $ 3,731    
Franchise finance      
Receivables [Abstract]      
Loan modifications, number of loans | loan   1  
Financing Receivable, Modified [Line Items]      
Loan modifications, number of loans | loan   1  
Total loans modified | $ $ 5,566    
v3.25.0.1
Loans - Collateral Dependent Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Total    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated $ 18,521 $ 9,962
Allowance on collateral dependent loans, individually evaluated 4,846 2,391
Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 2,377 2,875
Residential Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 4,083 3,121
Other    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 12,061 3,966
Owner-occupied commercial real estate | Total    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 1,654 1,654
Allowance on collateral dependent loans, individually evaluated 0 0
Owner-occupied commercial real estate | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 1,654 0
Owner-occupied commercial real estate | Residential Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0 0
Owner-occupied commercial real estate | Other    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0 1,654
Small business lending | Total    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 9,294 6,311
Allowance on collateral dependent loans, individually evaluated 4,167 2,391
Small business lending | Total | Loans guaranteed by the U.S. government    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 3,500 1,400
Small business lending | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 723 2,875
Small business lending | Residential Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0 1,210
Small business lending | Other    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 8,571 2,226
Franchise finance | Total    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 3,468  
Allowance on collateral dependent loans, individually evaluated 679  
Franchise finance | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0  
Franchise finance | Residential Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0  
Franchise finance | Other    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 3,468  
Residential mortgage | Total    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 4,083 1,911
Allowance on collateral dependent loans, individually evaluated 0 0
Residential mortgage | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0 0
Residential mortgage | Residential Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 4,083 1,911
Residential mortgage | Other    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0 0
Other consumer | Total    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 22 86
Allowance on collateral dependent loans, individually evaluated 0 0
Other consumer | Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0 0
Other consumer | Residential Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated 0 0
Other consumer | Other    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortized cost basis of collateral dependent loans, individually evaluated $ 22 $ 86
v3.25.0.1
Loans - Loans Experiencing Financial Difficulty and Modified (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2024
USD ($)
loan
Dec. 31, 2023
loan
Receivables [Abstract]      
Loan modifications, number of loans | loan   5 0
Financing Receivable, Modified [Line Items]      
Total loans modified $ 9,297 $ 9,300  
Payment Delay      
Financing Receivable, Modified [Line Items]      
Total loans modified 9,297    
Investor commercial real estate      
Receivables [Abstract]      
Loan modifications, number of loans | loan   4  
Financing Receivable, Modified [Line Items]      
Total loans modified $ 3,731    
% of class of loans 1.40%    
Investor commercial real estate | Payment Delay      
Financing Receivable, Modified [Line Items]      
Total loans modified $ 3,731    
Forbearance average term 9 months 9 months  
Franchise finance      
Receivables [Abstract]      
Loan modifications, number of loans | loan   1  
Financing Receivable, Modified [Line Items]      
Total loans modified $ 5,566    
% of class of loans 1.00%    
Franchise finance | Payment Delay      
Financing Receivable, Modified [Line Items]      
Total loans modified $ 5,566    
Forbearance average term 7 months 7 months  
v3.25.0.1
Loans - Performance of Loans Modified in the Last Twelve Months (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Current  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months $ 9,297
30 - 89 Days Past Due  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months 0
90+ Days Past Due  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months 0
Investor commercial real estate | Current  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months 3,731
Investor commercial real estate | 30 - 89 Days Past Due  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months 0
Investor commercial real estate | 90+ Days Past Due  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months 0
Franchise finance | Current  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months 5,566
Franchise finance | 30 - 89 Days Past Due  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months 0
Franchise finance | 90+ Days Past Due  
Financing Receivable, Modified, Past Due [Line Items]  
Total loans modified in the last twelve months $ 0
v3.25.0.1
Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Right of use leased asset $ 188 $ 66
Less: accumulated depreciation (19,469) (14,855)
Premises and equipment, net 71,453 73,463
Land    
Property, Plant and Equipment [Line Items]    
Premises and equipment 5,598 5,598
Construction in process    
Property, Plant and Equipment [Line Items]    
Premises and equipment 20 1,119
Building and improvements    
Property, Plant and Equipment [Line Items]    
Premises and equipment 63,069 60,699
Furniture and equipment    
Property, Plant and Equipment [Line Items]    
Premises and equipment $ 22,047 $ 20,836
v3.25.0.1
Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended
Aug. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]        
Carrying amount of goodwill   $ 4,687 $ 4,687  
Change in carrying amount of goodwill   $ 0 $ 0 $ 0
Goodwill impairment $ 0      
v3.25.0.1
Servicing Asset (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Servicing Asset at Fair Value, Amount [Roll Forward]          
Beginning balance     $ 10,567 $ 6,255 $ 4,702
Additions     8,359 5,775 3,192
Paydowns $ (3,005) $ (1,842)     (1,075)
Changes in fair value 468 379     (564)
Loan servicing asset revaluation (2,537) (1,463)     (1,639)
Ending balance $ 16,389 $ 10,567 $ 16,389 $ 10,567 $ 6,255
v3.25.0.1
Servicing Asset - Unpaid principal balance (Details) - Loan servicing - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Servicing Assets at Fair Value [Line Items]      
Loans serviced for others $ 862,089 $ 531,927 $ 318,194
SBA guaranteed loans      
Servicing Assets at Fair Value [Line Items]      
Loans serviced for others $ 862,089 $ 531,927 $ 318,194
v3.25.0.1
Servicing Asset - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Servicing Assets at Fair Value [Line Items]          
Changes in fair value $ 468 $ 379     $ (564)
Loan servicing          
Servicing Assets at Fair Value [Line Items]          
Noninterest income     $ 6,188 $ 3,833 2,573
Changes in fair value     $ 2,500 $ 1,500 $ 1,600
v3.25.0.1
Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deposits [Abstract]    
Noninterest-bearing deposits $ 136,451 $ 123,464
Interest-bearing demand deposits 896,661 402,976
Savings accounts 19,823 21,364
Money market accounts 1,183,789 1,248,319
Fintech - brokered deposits 0 74,401
Certificates of deposits 2,133,455 1,605,156
Brokered deposits 563,027 591,293
Total deposits 4,933,206 4,066,973
Time deposits greater than $250 $ 776,788 $ 703,835
v3.25.0.1
Deposits - Scheduled Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Certificates of Deposits    
Cash and Cash Equivalents [Line Items]    
2025 $ 1,327,799  
2026 178,941  
2027 197,074  
2028 142,667  
2029 286,974  
Thereafter 0  
Time deposits 2,133,455  
Brokered Certificates of Deposits    
Cash and Cash Equivalents [Line Items]    
2025 152,897  
2026 57,509  
2027 34,823  
2028 0  
2029 0  
Thereafter   $ 0
Time deposits $ 245,229  
v3.25.0.1
FHLB Advances (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
FHLB advances $ 295,000 $ 614,900
Amount eligible to borrow (up to) 1,100,000  
Investment securities    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Collateral pledged 795,000 662,100
Federal Home Loan Bank, Advances, Putable Option    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
FHLB advances, par value 210,000  
Federal Home Loan Bank, Advances, Putable Option, Expired    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
FHLB advances, par value $ 60,000  
Minimum    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Interest rate (as a percent) 1.06%  
Maximum    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Interest rate (as a percent) 4.16%  
Weighted Average    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Interest rate (as a percent) 3.39%  
Residential mortgage | Loans    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Collateral pledged $ 334,300 330,300
Commercial and industrial | Loans    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Collateral pledged $ 930,700 $ 932,400
v3.25.0.1
FHLB Advances - Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Federal Home Loan Banks [Abstract]    
2025 $ 50,000  
2026 10,000  
2027 50,000  
2028 35,000  
2029 0  
Thereafter 150,000  
Total $ 295,000 $ 614,900
v3.25.0.1
Subordinated Debt (Details Textual) - Subordinated Debt - USD ($)
1 Months Ended
Aug. 31, 2021
Oct. 31, 2020
Jun. 30, 2019
Dec. 30, 2021
2029 Notes        
Debt Instrument [Line Items]        
Principal amount     $ 37,000,000.0  
Annual rate (as a percent)     6.00%  
Basis spread on variable rate     4.376%  
2030 Note        
Debt Instrument [Line Items]        
Principal amount   $ 10,000,000    
Annual rate (as a percent)   6.00%    
Basis spread on variable rate   5.795%    
2031 Notes        
Debt Instrument [Line Items]        
Principal amount $ 60,000,000      
Annual rate (as a percent) 3.75%      
Basis spread on variable rate 3.11%      
Unregistered 2031 Notes        
Debt Instrument [Line Items]        
Principal amount exchanged       $ 59,300,000
Principal amount remaining       $ 700,000
v3.25.0.1
Subordinated Debt - Schedule Of Subordinated Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Principal $ 295,000 $ 614,934
Subordinated Debt    
Debt Instrument [Line Items]    
Principal 107,000 107,000
Unamortized Discount and Debt Issuance Costs (1,850) (2,162)
Subordinated Debt | 2029 Notes    
Debt Instrument [Line Items]    
Principal 37,000 37,000
Unamortized Discount and Debt Issuance Costs (703) (862)
Subordinated Debt | 2030 Note    
Debt Instrument [Line Items]    
Principal 10,000 10,000
Unamortized Discount and Debt Issuance Costs (137) (160)
Subordinated Debt | 2031 Notes    
Debt Instrument [Line Items]    
Principal 60,000 60,000
Unamortized Discount and Debt Issuance Costs $ (1,010) $ (1,140)
v3.25.0.1
Benefit Plans - Restricted Stock (Details)
12 Months Ended
Dec. 31, 2024
$ / shares
shares
Restricted Stock Units | 2022 Plan  
Restricted Stock Awards (in shares)  
Unvested at beginning of period (in shares) | shares 72,354
Granted (in shares) | shares 75,222
Forfeited (in shares) | shares (2,534)
Vested (in shares) | shares (14,294)
Unvested at end of period (in shares) | shares 130,748
Weighted-Average Grant Date Fair Value Per Share (in dollars per share)  
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares $ 24.61
Weighted-Average Grant Date Fair Value Per Share Granted (in dollars per share) | $ / shares 24.13
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares 24.37
Weighed-Average Grant Date Fair Value Per Share Value (in dollars per share) | $ / shares 24.52
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares $ 24.35
Restricted Stock Units | 2013 Plan  
Restricted Stock Awards (in shares)  
Unvested at beginning of period (in shares) | shares 53,985
Forfeited (in shares) | shares (22,899)
Vested (in shares) | shares (8,089)
Unvested at end of period (in shares) | shares 22,997
Weighted-Average Grant Date Fair Value Per Share (in dollars per share)  
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares $ 39.86
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares 30.58
Weighed-Average Grant Date Fair Value Per Share Value (in dollars per share) | $ / shares 46.64
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares $ 46.71
Restricted Stock Awards | 2022 Plan  
Restricted Stock Awards (in shares)  
Unvested at beginning of period (in shares) | shares 30,030
Granted (in shares) | shares 12,040
Forfeited (in shares) | shares 0
Vested (in shares) | shares (30,030)
Unvested at end of period (in shares) | shares 12,040
Weighted-Average Grant Date Fair Value Per Share (in dollars per share)  
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares $ 11.18
Weighted-Average Grant Date Fair Value Per Share Granted (in dollars per share) | $ / shares 31.46
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares 0
Weighed-Average Grant Date Fair Value Per Share Value (in dollars per share) | $ / shares 11.18
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares $ 31.46
Restricted Stock Awards | 2013 Plan  
Restricted Stock Awards (in shares)  
Unvested at beginning of period (in shares) | shares 0
Forfeited (in shares) | shares 0
Vested (in shares) | shares 0
Unvested at end of period (in shares) | shares 0
Weighted-Average Grant Date Fair Value Per Share (in dollars per share)  
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares $ 0
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares 0
Weighed-Average Grant Date Fair Value Per Share Value (in dollars per share) | $ / shares 0
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares $ 0
Deferred Stock Units | 2022 Plan  
Restricted Stock Awards (in shares)  
Unvested at beginning of period (in shares) | shares 0
Granted (in shares) | shares 0
Forfeited (in shares) | shares 0
Vested (in shares) | shares 0
Unvested at end of period (in shares) | shares 0
Weighted-Average Grant Date Fair Value Per Share (in dollars per share)  
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares $ 0
Weighted-Average Grant Date Fair Value Per Share Granted (in dollars per share) | $ / shares 0
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares 0
Weighed-Average Grant Date Fair Value Per Share Value (in dollars per share) | $ / shares 0
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares $ 0
Deferred Stock Units | 2013 Plan  
Restricted Stock Awards (in shares)  
Unvested at beginning of period (in shares) | shares 0
Forfeited (in shares) | shares 0
Vested (in shares) | shares 0
Unvested at end of period (in shares) | shares 0
Weighted-Average Grant Date Fair Value Per Share (in dollars per share)  
Weighted-Average Grant Date Fair Value Per Share Nonvested, Beginning Balance (in dollars per share) | $ / shares $ 0
Weighted-Average Grant Date Fair Value Per Share Forfeited (in dollars per share) | $ / shares 0
Weighed-Average Grant Date Fair Value Per Share Value (in dollars per share) | $ / shares 0
Weighted-Average Grant Date Fair Value Per Share Nonvested, Ending Balance (in dollars per share) | $ / shares $ 0
v3.25.0.1
Benefit Plans (Details Textual) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
May 16, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Maximum contributions (as a percent) 3.50%      
Vesting percentage (as a percent) 50.00%      
Annual vesting period (in years) 2 years      
Contributions $ 1.1 $ 0.9 $ 0.9  
Employer Contribution Plan, Employer Match, One        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employee deferral (as a percent) 100.00%      
Employer match (as a percent) 1.00%      
Defined Contribution Plan, Employer Match, Two        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employee deferral (as a percent) 50.00%      
2022 Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares authorized       400,000
Share-based compensation expense $ 1.5 0.8 0.1  
Unrecognized compensation cost $ 2.0      
Weighted average expense recognition period (in years) 1 year 7 months 6 days      
2013 Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares authorized 750,000      
Share-based compensation expense $ 0.3 $ 0.4 $ 2.0  
Unrecognized compensation cost $ 0.1      
Weighted average expense recognition period (in years) 1 month 6 days      
Directors Deferred Stock Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock reserved for future issuance (in shares) 180,000      
Deferred stock plan, percentage of compensation 100.00%      
Minimum | Employer Contribution Plan, Employer Match, One        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employer match (as a percent) 1.00%      
Maximum | Defined Contribution Plan, Employer Match, Two        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employer match (as a percent) 6.00%      
v3.25.0.1
Benefit Plans - Deferred Stock Rights (Details)
12 Months Ended
Dec. 31, 2024
shares
Deferred Rights (in shares)  
Outstanding, beginning of year 28,538
Granted 283
Outstanding, end of year 28,821
v3.25.0.1
Income Taxes - Provisions (Credit) for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Current $ 3,623 $ 876 $ (73)
Deferred (1,357) (4,353) 4,632
Total $ 2,266 $ (3,477) $ 4,559
v3.25.0.1
Income Taxes - Income Tax Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Statutory rate times pre-tax income $ 5,784 $ 1,037 $ 8,421
(Subtract) add the tax effect of:      
Income from tax-exempt securities and loans (3,500) (3,951) (4,190)
State income tax, net of federal tax effect 47 (30) 592
Bank-owned life insurance (262) (215) (201)
Tax credits (110) (168) (143)
Other differences 307 (150) 80
Total $ 2,266 $ (3,477) $ 4,559
v3.25.0.1
Income Taxes - Net Deferred Taxes (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets (liabilities)    
Allowance for credits losses $ 10,824 $ 9,847
Net unrealized losses on available-for-sale securities and hedged items 9,753 8,776
Fair value adjustments (14,002) (12,101)
Depreciation (4,168) (4,306)
Deferred compensation and accrued payroll 1,486 1,228
Loan origination costs (1,533) (1,379)
Prepaid assets (916) (806)
Net operating loss 9,962 13,309
Tax credits 1,956 711
Other (309) 335
Total deferred tax assets, net $ 13,053 $ 15,614
v3.25.0.1
Income Taxes (Details Textual) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Federal    
Tax Credit Carryforward [Line Items]    
Net operating loss carryforwards $ 54.0 $ 57.2
Federal | General business credits    
Tax Credit Carryforward [Line Items]    
Tax credit carryforwards 0.3  
Federal | Qualified zone academy bond credits    
Tax Credit Carryforward [Line Items]    
Tax credit carryforwards 0.4  
State    
Tax Credit Carryforward [Line Items]    
Net operating loss carryforwards 0.0 $ 8.5
Tax credit carryforwards $ 0.3  
v3.25.0.1
Related Party Transactions (Details Textual) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transactions [Abstract]      
Related party loans and extensions of credit $ 47,671 $ 45,926 $ 21,860
Deposits from related party $ 31,900 $ 28,300  
v3.25.0.1
Related Party Transactions - Schedule of Related Party Loans (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Loans and Leases Receivable, Related Parties [Roll Forward]    
Balance at the beginning of period $ 45,926 $ 21,860
New term loans 0 19,139
Additions 1,753 4,956
Repayment of term loans (13) (12)
Changes in balances of revolving lines of credit 5 (17)
Balance at end of period $ 47,671 $ 45,926
v3.25.0.1
Regulatory Capital Requirements - Required Ratios (Details)
Jan. 01, 2019
Mortgage Banking [Abstract]  
Minimum ratio of Common Equity Tier 1 capital to risk-weighed assets 4.50%
Minimum ratio of Common Equity Tier 1 capital to risk-weighed assets, capital conservation buffer 2.50%
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) 7.00%
Minimum ratio of Tier 1 capital to risk-weighted assets 6.00%
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent) 0.085
Minimum ratio of Total capital to risk-weighted assets 8.00%
Capital Required for Capital Adequacy to Risk Weighted Assets 0.105
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent) 0.040
v3.25.0.1
Regulatory Capital Requirements (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Jan. 01, 2019
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]      
Tier 1 common equity, (to risk-weighted assets), Actual Amount $ 400,100 $ 381,001  
Tier 1 common equity, (to risk-weighted assets), Actual Ratio (as a percent) 9.30% 9.60%  
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     7.00%
Tier 1 capital (to risk-weighted assets), Actual Amount $ 400,100 $ 381,001  
Tier 1 capital (to risk-weighted assets), Actual Ratio (as a percent) 0.0930 0.0960  
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     0.085
Capital $ 542,808 $ 525,283  
Capital to Risk Weighted Assets 0.1262 0.1323  
Capital Required for Capital Adequacy to Risk Weighted Assets     0.105
Tier 1 capital (to average assets), Actual Amount $ 400,100 $ 381,001  
Tier 1 capital (to average assets), Actual Ratio (as a percent) 0.0690 0.0733  
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent)     0.040
2016 Period      
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]      
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount     $ 301,052
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     7.00%
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount     $ 365,563
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     0.0850
Capital Required for Capital Adequacy     $ 451,578
Capital Required for Capital Adequacy to Risk Weighted Assets     0.1050
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount     $ 232,011
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent)     0.0400
2015 Period      
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]      
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount     $ 277,914
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     7.00%
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount     $ 337,467
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     0.0850
Capital Required for Capital Adequacy     $ 416,870
Capital Required for Capital Adequacy to Risk Weighted Assets     0.1050
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount     $ 207,929
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent)     0.0400
Bank      
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]      
Tier 1 common equity, (to risk-weighted assets), Actual Amount $ 475,793 $ 464,390  
Tier 1 common equity, (to risk-weighted assets), Actual Ratio (as a percent) 11.11% 11.73%  
Tier One Common Equity Required to be Well Capitalized $ 278,362 $ 257,273  
Tier One Common Equity Required to be Well Capitalized to Risk Weighted Assets 6.50% 6.50%  
Tier 1 capital (to risk-weighted assets), Actual Amount $ 475,793 $ 464,390  
Tier 1 capital (to risk-weighted assets), Actual Ratio (as a percent) 0.1111 0.1173  
Tier 1 capital (to risk-weighted assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Amount $ 342,599 $ 316,644  
Tier 1 capital (to risk-weighted assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Ratio (as a percent) 0.0800 0.0800  
Capital $ 520,610 $ 503,834  
Capital to Risk Weighted Assets 0.1216 0.1273  
Capital Required to be Well Capitalized $ 428,249 $ 395,804  
Capital Required to be Well Capitalized to Risk Weighted Assets 0.1000 0.1000  
Tier 1 capital (to average assets), Actual Amount $ 475,793 $ 464,390  
Tier 1 capital (to average assets), Actual Ratio (as a percent) 0.0823 0.0895  
Tier 1 capital (to average assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Amount $ 289,164 $ 259,349  
Tier 1 capital (to average assets), Minimum to be Well Capitalized Under Prompt Corrective Actions, Ratio (as a percent) 0.0500 0.0500  
Bank | 2016 Period      
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]      
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount     $ 299,774
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     7.00%
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount     $ 364,012
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     0.0850
Capital Required for Capital Adequacy     $ 449,662
Capital Required for Capital Adequacy to Risk Weighted Assets     0.1050
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount     $ 231,331
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent)     0.0400
Bank | 2015 Period      
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]      
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Actual Amount     $ 277,063
Tier 1 common equity, (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     7.00%
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Amount     $ 336,434
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement, Ratio (as a percent)     0.0850
Capital Required for Capital Adequacy     $ 415,595
Capital Required for Capital Adequacy to Risk Weighted Assets     0.1050
Tier 1 capital (to average assets), Minimum Capital Requirement, Amount     $ 207,479
Tier 1 capital (to average assets), Minimum Capital Requirement, Ratio (as a percent)     0.0400
v3.25.0.1
Commitments and Credit Risk (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]    
Loan commitments $ 667.7 $ 755.4
v3.25.0.1
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Fair value $ 587,355 $ 474,855
Servicing asset, at fair value 16,389 10,567
Derivative, fair value, net (200) (677)
Interest rate swaps assets    
Debt Securities, Available-for-sale [Line Items]    
Derivative asset, fair value   5,139
Interest rate swap agreements - assets (back-to-back)    
Debt Securities, Available-for-sale [Line Items]    
Derivative, fair value, net 200 677
Interest rate swap agreements - liabilities (back-to-back)    
Debt Securities, Available-for-sale [Line Items]    
Derivative, fair value, net (200) (677)
U.S. Government-sponsored agencies    
Debt Securities, Available-for-sale [Line Items]    
Fair value 82,816 95,177
Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 63,654 68,446
Agency mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Fair value 269,641 206,649
Agency mortgage-backed securities - commercial    
Debt Securities, Available-for-sale [Line Items]    
Fair value 63,331 38,885
Private label mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Fair value 45,821 20,779
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 23,821 8,081
Corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 38,271 36,838
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Servicing asset, at fair value 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps assets    
Debt Securities, Available-for-sale [Line Items]    
Derivative asset, fair value   0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap agreements - assets (back-to-back)    
Debt Securities, Available-for-sale [Line Items]    
Derivative, fair value, net 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap agreements - liabilities (back-to-back)    
Debt Securities, Available-for-sale [Line Items]    
Derivative, fair value, net 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored agencies    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency mortgage-backed securities - commercial    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Private label mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Significant Other Observable Inputs (Level 2)    
Debt Securities, Available-for-sale [Line Items]    
Fair value 587,355 474,855
Servicing asset, at fair value 0 0
Significant Other Observable Inputs (Level 2) | Interest rate swaps assets    
Debt Securities, Available-for-sale [Line Items]    
Derivative asset, fair value   5,139
Significant Other Observable Inputs (Level 2) | Interest rate swap agreements - assets (back-to-back)    
Debt Securities, Available-for-sale [Line Items]    
Derivative, fair value, net 200 677
Significant Other Observable Inputs (Level 2) | Interest rate swap agreements - liabilities (back-to-back)    
Debt Securities, Available-for-sale [Line Items]    
Derivative, fair value, net (200) (677)
Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored agencies    
Debt Securities, Available-for-sale [Line Items]    
Fair value 82,816 95,177
Significant Other Observable Inputs (Level 2) | Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 63,654 68,446
Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Fair value 269,641 206,649
Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities - commercial    
Debt Securities, Available-for-sale [Line Items]    
Fair value 63,331 38,885
Significant Other Observable Inputs (Level 2) | Private label mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Fair value   20,779
Significant Other Observable Inputs (Level 2) | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 23,821 8,081
Significant Other Observable Inputs (Level 2) | Corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 38,271 36,838
Significant Unobservable Inputs (Level 3)    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Servicing asset, at fair value 16,389 10,567
Significant Unobservable Inputs (Level 3) | Interest rate swaps assets    
Debt Securities, Available-for-sale [Line Items]    
Derivative asset, fair value   0
Significant Unobservable Inputs (Level 3) | Interest rate swap agreements - assets (back-to-back)    
Debt Securities, Available-for-sale [Line Items]    
Derivative, fair value, net 0 0
Significant Unobservable Inputs (Level 3) | Interest rate swap agreements - liabilities (back-to-back)    
Debt Securities, Available-for-sale [Line Items]    
Derivative, fair value, net 0 0
Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored agencies    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Significant Unobservable Inputs (Level 3) | Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Significant Unobservable Inputs (Level 3) | Agency mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Significant Unobservable Inputs (Level 3) | Agency mortgage-backed securities - commercial    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Significant Unobservable Inputs (Level 3) | Private label mortgage-backed securities - residential    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Significant Unobservable Inputs (Level 3) | Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value 0 0
Significant Unobservable Inputs (Level 3) | Corporate securities    
Debt Securities, Available-for-sale [Line Items]    
Fair value $ 0 $ 0
v3.25.0.1
Fair Value of Financial Instruments - Fair Value Roll Forward (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Servicing Asset      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance $ 10,567 $ 6,255 $ 4,702
Additions 8,359 5,775 3,192
Paydowns (3,005) (1,842) (1,135)
Change in fair value 468 379 (504)
Ending balance 16,389 10,567 6,255
Interest Rate Lock Commitments      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance 0 133 718
Additions 0 0 0
Paydowns 0 0 0
Change in fair value 0 (133) (585)
Ending balance $ 0 $ 0 $ 133
v3.25.0.1
Fair Value of Financial Instruments - Quantitative Information About Unobservable Inputs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Net loans $ 4,125,877 $ 3,801,446
Servicing asset 16,389 10,567
Collateral pledged    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Net loans 4,296 2,799
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateral pledged    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Net loans 0 0
Significant Other Observable Inputs (Level 2)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset 0 0
Significant Other Observable Inputs (Level 2) | Collateral pledged    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Net loans 0 0
Significant Unobservable Inputs (Level 3)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset 16,389 10,567
Significant Unobservable Inputs (Level 3) | Collateral pledged    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Net loans 4,296 2,799
Collateral dependent loans | Significant Unobservable Inputs (Level 3)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Net loans 4,296 2,799
Servicing asset | Significant Unobservable Inputs (Level 3)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset $ 16,389 $ 10,567
Discount for type of property and current market conditions | Fair value of collateral | Collateral dependent loans | Significant Unobservable Inputs (Level 3) | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Collateral dependent loans, measurement input 0.00% 0.00%
Discount for type of property and current market conditions | Fair value of collateral | Collateral dependent loans | Significant Unobservable Inputs (Level 3) | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Collateral dependent loans, measurement input 75.00% 90.00%
Discount for type of property and current market conditions | Fair value of collateral | Collateral dependent loans | Significant Unobservable Inputs (Level 3) | Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Collateral dependent loans, measurement input 24.20% 28.00%
Prepayment rate | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset, discount rate 0.00% 0.00%
Prepayment rate | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset, discount rate 25.00% 25.00%
Prepayment rate | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset, discount rate 11.70% 11.30%
Discount rate | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset, discount rate 14.00% 15.00%
Discount rate | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Servicing asset, discount rate 14.00% 15.00%
v3.25.0.1
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents $ 466,410 $ 405,898
Securities held-to-maturity 249,796 227,153
Securities held-to-maturity, fair value 228,851 207,572
Loans held-for-sale 54,695 22,052
Net loans 4,125,877 3,801,446
Accrued interest receivable 28,180 26,746
Federal Home Loan Bank of Indianapolis stock 28,350 28,350
Deposits 4,933,206 4,066,973
Advances from Federal Home Loan Bank 295,000 614,934
Subordinated debt 105,150 104,838
Accrued interest payable 2,495 3,848
Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value 466,410 405,898
Securities held-to-maturity, fair value 228,851 207,572
Loans held-for-sale, fair value 58,510 22,052
Net loans, fair value 3,935,009 3,611,909
Accrued interest receivable, fair value 28,180 26,746
Federal Home Loan Bank of Indianapolis stock, fair value 28,350 28,350
Deposits, fair value 4,943,961 4,059,447
Advances from Federal Home Loan Bank, fair value 291,208 605,366
Subordinated debt, fair value 103,062 102,632
Accrued interest payable, fair value 2,495 3,848
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value 466,410 405,898
Securities held-to-maturity, fair value 0 0
Loans held-for-sale, fair value 0 0
Net loans, fair value 0 0
Accrued interest receivable, fair value 28,180 26,746
Federal Home Loan Bank of Indianapolis stock, fair value 0 0
Deposits, fair value 2,236,724 1,796,123
Advances from Federal Home Loan Bank, fair value 0 0
Subordinated debt, fair value 37,059 32,560
Accrued interest payable, fair value 2,495 3,848
Fair Value | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value 0 0
Securities held-to-maturity, fair value 228,851 207,572
Loans held-for-sale, fair value 58,510 22,052
Net loans, fair value 0 0
Accrued interest receivable, fair value 0 0
Federal Home Loan Bank of Indianapolis stock, fair value 28,350 28,350
Deposits, fair value 0 0
Advances from Federal Home Loan Bank, fair value 291,208 605,366
Subordinated debt, fair value 66,003 70,072
Accrued interest payable, fair value 0 0
Fair Value | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents, fair value 0 0
Securities held-to-maturity, fair value 0 0
Loans held-for-sale, fair value 0 0
Net loans, fair value 3,935,009 3,611,909
Accrued interest receivable, fair value 0 0
Federal Home Loan Bank of Indianapolis stock, fair value 0 0
Deposits, fair value 2,707,237 2,263,324
Advances from Federal Home Loan Bank, fair value 0 0
Subordinated debt, fair value 0 0
Accrued interest payable, fair value $ 0 $ 0
v3.25.0.1
Mortgage Banking Activities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Principal Transaction Revenue [Line Items]      
Loans originated for sale   $ 36,300 $ 388,000
Proceeds from sale of loans originated for sale   46,500 411,500
Mortgage banking activities      
Principal Transaction Revenue [Line Items]      
Gain on loans sold $ 0 471 6,101
Loss resulting from the change in fair value of loans held-for-sale 0 (143) (184)
Loss resulting from the change in fair value of derivatives 0 (252) (453)
Net revenue from mortgage banking activities $ 0 $ 76 $ 5,464
v3.25.0.1
Derivative Financial Instruments - Carrying Amount and Adjustment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Securities available-for-sale, amortized cost $ 626,854 $ 513,315
Derivatives designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Carrying amount of the hedged assets 0 69,504
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets 0 $ (1,143)
Securities available-for-sale, amortized cost $ 50,000  
v3.25.0.1
Derivative Financial Instruments - Interest Rate Swap Derivatives Designated as Fair Value Hedges (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional Value $ 27,214 $ 1,778
Derivatives designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets $ 0 (1,143)
Interest rate swaps | Derivatives designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional Value   $ 50,000
Weighted Average Remaining Maturity (years)   9 months 18 days
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets   $ 1,153
Weighted-Average Rate, Pay   2.33%
v3.25.0.1
Derivative Financial Instruments - Textual (Details)
$ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
derivative_instrument
Mar. 31, 2021
USD ($)
Jun. 30, 2020
USD ($)
Dec. 31, 2024
USD ($)
derivative_instrument
Dec. 31, 2023
USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Cash pledged as collateral         $ 5.2
Offsetting interest rate swaps          
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Number of derivative instruments | derivative_instrument 2     2  
Derivatives designated as hedging instruments | Interest rate swaps          
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Swap termination receipts $ 2.9        
Weighted average term to maturity         9 months 18 days
Derivatives designated as hedging instruments | Interest rate swaps | Securities available-for-sale          
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Payments for swap termination payments   $ 1.9      
Amortization expense       $ 0.1 $ 0.4
Derivatives designated as hedging instruments | Interest rate swaps | Loans          
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Payments for swap termination payments     $ 46.1    
Amortization expense       $ 4.9 $ 4.7
Weighted average term to maturity       9 years 7 months 6 days  
v3.25.0.1
Derivative Financial Instruments - Interest Swap Derivatives Designated as Cash Flow Hedges (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional Value $ 1,778 $ 27,214
Fair Value (677) $ (200)
Interest rate swaps | Derivatives designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional Value $ 50,000  
Weighted Average Remaining Maturity (years) 9 months 18 days  
SOFR | Interest rate swaps | Derivatives designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional Value $ 110,000  
Weighted Average Remaining Maturity (years) 3 years 1 month 6 days  
Fair Value $ 3,596  
Weighted-Average Rate, Pay 2.88%  
Fed Funds Effective | Interest rate swaps | Derivatives designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional Value $ 40,000  
Weighted Average Remaining Maturity (years) 4 months 24 days  
Fair Value $ 390  
Weighted-Average Rate, Pay 2.78%  
v3.25.0.1
Derivative Financial Instruments - Notional Amounts and Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Asset Derivatives    
Notional Amount $ 27,214 $ 201,778
Fair Value 200 5,816
Liability Derivatives    
Notional Amount 27,214 1,778
Fair Value (200) (677)
Interest rate swap agreements - assets (back-to-back)    
Liability Derivatives    
Fair Value 200 677
Interest rate swap agreements - liabilities (back-to-back)    
Liability Derivatives    
Fair Value (200) (677)
Derivatives designated as hedging instruments | Interest rate swaps    
Liability Derivatives    
Notional Amount   50,000
Derivatives designated as hedging instruments | Interest rate swaps | Securities available-for-sale    
Asset Derivatives    
Notional Amount 0 50,000
Fair Value 0 1,153
Derivatives designated as hedging instruments | Interest rate swaps | Liabilities    
Asset Derivatives    
Notional Amount 0 150,000
Fair Value 0 3,986
Derivatives not designated as hedging instruments | Interest rate swap agreements - assets (back-to-back)    
Asset Derivatives    
Notional Amount 27,214 1,778
Fair Value 200 677
Derivatives not designated as hedging instruments | Interest rate swap agreements - liabilities (back-to-back)    
Liability Derivatives    
Notional Amount 27,214 1,778
Fair Value $ (200) $ (677)
v3.25.0.1
Derivative Financial Instruments - Effect of Derivatives on Statement of Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Reclassification of gain on termination of interest rate swaps $ (1,082) $ (2,566) $ 19,091
Interest rate swaps      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Reclassification of gain on termination of interest rate swaps $ 0 $ (2,566) $ 19,091
v3.25.0.1
Derivative Financial Instruments - Gain (Loss) Recognized (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Asset Derivatives      
Asset Derivatives      
Derivatives not designated as hedging instruments $ 0 $ 0 $ 127
Interest Rate Lock Commitments      
Asset Derivatives      
Derivatives not designated as hedging instruments 0 (133) (585)
Liability Derivatives      
Asset Derivatives      
Derivatives not designated as hedging instruments $ 0 $ (119) $ 0
v3.25.0.1
Derivative Financial Instruments - Effect of Derivatives on Income (Details) - Interest rate swaps - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Total interest income      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives $ 1,367 $ 1,471 $ (244)
Interest income, securities - non-taxable      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives 1,367 1,471 (244)
Total interest expense      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives (3,257) (4,293) 2,235
Interest expense, deposits      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives (424) (1,671) 1,125
Interest expense, borrowings      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives (2,833) (2,622) 1,110
Net interest income      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives 4,624 5,764 (2,479)
Total noninterest income      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives 2,904 0 0
Other      
Derivative Instruments, Gain (Loss) [Line Items]      
Gain (loss) on derivatives $ 2,904 $ 0 $ 0
v3.25.0.1
Shareholders' Equity (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended 24 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2024
Dec. 19, 2022
Stockholders' Equity Note [Abstract]          
Stock repurchase program, authorized amount         $ 25,000
Repurchased shares of common stock (in shares)       559,522  
Repurchased shares of common stock, average price per share (in dollars per share)       $ 19.06  
Repurchased shares of common stock, amount $ 283 $ 9,248 $ 27,780 $ 10,700  
v3.25.0.1
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance $ 362,795 $ 364,974 $ 380,338
Net unrealized holding (losses) gains recorded within other comprehensive income before income tax (2,121) 4,773 (23,245)
Reclassification of securities from available-for-sale to held-to-maturity     (5,402)
Reclassification of gain on termination of interest rate swaps (2,904) 0 0
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity 789 778 844
Net effect on other comprehensive (loss) income (4,236) 5,551 (27,803)
Income tax (benefit) provision (958) 1,290 (5,206)
Total other comprehensive (loss) income (3,278) 4,261 (22,597)
Balance 384,063 362,795 364,974
Accumulated Other Comprehensive Loss      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance (29,375) (33,636) (11,039)
Total other comprehensive (loss) income (3,278) 4,261 (22,597)
Balance (32,653) (29,375) (33,636)
Available-For-Sale Securities      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance (30,174) (35,831) (2,555)
Net unrealized holding (losses) gains recorded within other comprehensive income before income tax (1,039) 7,339 (42,336)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity 0 0 0
Net effect on other comprehensive (loss) income (1,039) 7,339 (42,336)
Income tax (benefit) provision (800) 1,682 (9,060)
Total other comprehensive (loss) income (239) 5,657 (33,276)
Balance (30,413) (30,174) (35,831)
Unrealized Losses on Debt Securities Transferred from Available-for-Sale to Held-to-Maturity      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance (2,939) (3,519) 0
Net unrealized holding (losses) gains recorded within other comprehensive income before income tax 0 0 0
Reclassification of securities from available-for-sale to held-to-maturity     (5,402)
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity 789 778 844
Net effect on other comprehensive (loss) income 789 778 (4,558)
Income tax (benefit) provision 90 198 (1,039)
Total other comprehensive (loss) income 699 580 (3,519)
Balance (2,240) (2,939) (3,519)
Cash Flow Hedges      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance 3,738 5,714 (8,484)
Net unrealized holding (losses) gains recorded within other comprehensive income before income tax (1,082) (2,566) 19,091
Reclassification of gain on termination of interest rate swaps (2,904)    
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity 0 0 0
Net effect on other comprehensive (loss) income (3,986) (2,566) 19,091
Income tax (benefit) provision (248) (590) 4,893
Total other comprehensive (loss) income (3,738) (1,976) 14,198
Balance $ 0 $ 3,738 $ 5,714
v3.25.0.1
Condensed Financial Information (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets        
Cash and cash equivalents $ 466,410 $ 405,898    
Accrued income and other assets 63,001 51,098    
Total assets 5,737,859 5,167,572    
Liabilities and shareholders’ equity        
Subordinated debt, net of unamortized discount and debt issuance costs of $1,850 and $2,162 in 2024 and 2023, respectively 105,150 104,838    
Accrued expenses and other liabilities 17,945 14,184    
Total liabilities 5,353,796 4,804,777    
Shareholders’ equity 384,063 362,795 $ 364,974 $ 380,338
Total liabilities and shareholders’ equity 5,737,859 5,167,572    
Unamortized discounts and debt issuance costs 1,850 2,162    
Parent Company        
Assets        
Cash and cash equivalents 12,997 11,593    
Investment in common stock of subsidiaries 458,025 444,221    
Accrued income and other assets 19,983 14,127    
Total assets 491,005 469,941    
Liabilities and shareholders’ equity        
Subordinated debt, net of unamortized discount and debt issuance costs of $1,850 and $2,162 in 2024 and 2023, respectively 105,150 104,838    
Accrued expenses and other liabilities 1,792 2,308    
Total liabilities 106,942 107,146    
Shareholders’ equity 384,063 362,795    
Total liabilities and shareholders’ equity 491,005 469,941    
Unamortized discounts and debt issuance costs $ 1,850 $ 2,162    
v3.25.0.1
Condensed Financial Information (Parent Company Only) - Condensed Statements of Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Condensed Financial Statements, Captions [Line Items]      
Other $ 9,406 $ 2,302 $ 2,416
Total noninterest income 47,345 26,125 21,257
Expenses      
Interest on borrowings 21,360 21,175 17,983
Salaries and employee benefits 51,756 45,322 41,553
Consulting and professional fees 3,744 3,082 4,826
Premises and equipment 11,902 10,599 10,688
Income tax benefit 2,266 (3,477) 4,559
Net income 25,276 8,417 35,541
Parent Company      
Condensed Financial Statements, Captions [Line Items]      
Dividends from bank subsidiary 16,000 12,000 8,000
Other 905 188 285
Total noninterest income 16,905 12,188 8,285
Expenses      
Interest on borrowings 6,021 5,376 5,371
Salaries and employee benefits 1,223 1,203 1,147
Consulting and professional fees 1,937 1,572 1,814
Premises and equipment 45 126 201
Other 250 280 134
Total expenses 9,476 8,557 8,667
Income (loss) before income tax and equity in undistributed net income of subsidiaries 7,429 3,631 (382)
Income tax benefit (2,080) (1,817) (1,874)
Income before equity in undistributed net income of subsidiaries 9,509 5,448 1,492
Equity in undistributed net income of subsidiaries 15,767 2,969 34,049
Net income $ 25,276 $ 8,417 $ 35,541
v3.25.0.1
Condensed Financial Information (Parent Company Only) - Condensed Statements of Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule Of Condensed Comprehensive Income [Line Items]      
Net income $ 25,276 $ 8,417 $ 35,541
Securities available-for-sale      
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax (1,039) 7,339 (42,336)
Income tax (benefit) provision (800) 1,682 (9,060)
Net effect on other comprehensive (loss) income (239) 5,657 (33,276)
Securities held-to-maturity      
Reclassification of securities from available-for-sale to held-to-maturity 0 0 (5,402)
Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 789 778 844
Income tax provision (benefit) 90 198 (1,039)
Net effect on other comprehensive income (loss) 699 580 (3,519)
Cash flow hedges      
Reclassification of gain on termination of interest rate swaps (1,082) (2,566) 19,091
Reclassification of gain on termination of interest rate swaps (2,904) 0 0
Income tax (benefit) provision (248) (590) 4,893
Net effect on other comprehensive (loss) income (3,738) (1,976) 14,198
Total other comprehensive (loss) income (3,278) 4,261 (22,597)
Comprehensive income 21,998 12,678 12,944
Parent Company      
Schedule Of Condensed Comprehensive Income [Line Items]      
Net income 25,276 8,417 35,541
Securities available-for-sale      
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive income before income tax (1,039) 7,339 (42,336)
Income tax (benefit) provision (800) 1,682 (9,060)
Net effect on other comprehensive (loss) income (239) 5,657 (33,276)
Securities held-to-maturity      
Reclassification of securities from available-for-sale to held-to-maturity 0 0 (5,402)
Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 789 778 844
Income tax provision (benefit) 90 198 (1,039)
Net effect on other comprehensive income (loss) 699 580 (3,519)
Cash flow hedges      
Reclassification of gain on termination of interest rate swaps (1,082) (2,566) 19,091
Reclassification of gain on termination of interest rate swaps (2,904)    
Income tax (benefit) provision (248) (590) 4,893
Net effect on other comprehensive (loss) income (3,738) (1,976) 14,198
Total other comprehensive (loss) income (3,278) 4,261 (22,597)
Comprehensive income $ 21,998 $ 12,678 $ 12,944
v3.25.0.1
Condensed Financial Information (Parent Company Only) - Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating Activities      
Net income $ 25,276 $ 8,417 $ 35,541
Depreciation and amortization 8,460 5,748 8,729
Share-based compensation expense 1,814 1,258 2,035
Net change in other assets (3,932) (6,625) 9,815
Net change in other liabilities 5,364 (3,158) (3,775)
Net cash provided by operating activities 12,992 11,680 82,723
Investing activities      
Purchase of equity investments (13,583) (4,464) (3,510)
Net cash (used in) provided by investing activities (496,170) (474,503) (601,033)
Financing activities      
Cash dividends paid (2,078) (2,156) (2,317)
Repurchase of common stock (283) (9,340) (27,780)
Other, net (182) (153) (287)
Net cash (used in) provided by financing activities 543,690 612,169 331,902
Net increase (decrease) in cash and cash equivalents 60,512 149,346 (186,408)
Cash and cash equivalents, beginning of year 405,898 256,552 442,960
Cash and cash equivalents, end of year 466,410 405,898 256,552
Parent Company      
Operating Activities      
Net income 25,276 8,417 35,541
Equity in undistributed net income of subsidiaries (15,767) (2,969) (34,049)
Depreciation and amortization 312 318 329
Share-based compensation expense 363 256 795
Net change in other assets 1,506 (1,819) 350
Net change in other liabilities (522) 358 (490)
Net cash provided by operating activities 11,168 4,561 2,476
Investing activities      
Purchase of equity investments (7,221) (3,578) (2,727)
Net cash (used in) provided by investing activities (7,221) (3,578) (2,727)
Financing activities      
Cash dividends paid (2,078) (2,156) (2,317)
Repurchase of common stock (283) (9,340) (27,780)
Other, net (182) (153) (250)
Net cash (used in) provided by financing activities (2,543) (11,649) (30,347)
Net increase (decrease) in cash and cash equivalents 1,404 (10,666) (30,598)
Cash and cash equivalents, beginning of year 11,593 22,259 52,857
Cash and cash equivalents, end of year $ 12,997 $ 11,593 $ 22,259
v3.25.0.1
Segment Reporting (Details)
12 Months Ended
Dec. 31, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 1