Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40379 | |
Entity Registrant Name | FIVE STAR BANCORP | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 75-3100966 | |
Entity Address, Address Line One | 3100 Zinfandel Drive | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Rancho Cordova | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95670 | |
City Area Code | (916) | |
Local Phone Number | 626-5000 | |
Title of 12(b) Security | Common stock, no par value per share | |
Trading Symbol | FSBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,245,449 | |
Entity Central Index Key | 0001275168 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from financial institutions | $ 66,747 | $ 136,074 |
Interest-bearing deposits in banks | 438,217 | 289,255 |
Cash and cash equivalents | 504,964 | 425,329 |
Time deposits in banks | 14,464 | 14,464 |
Securities available-for-sale, at fair value | 134,813 | 148,807 |
Securities held-to-maturity, at amortized cost (fair value of $4,459 and $5,197 at March 31, 2022 and December 31, 2021, respectively) | 4,486 | 4,946 |
Loans held for sale | 10,386 | 10,671 |
Loans held for investment | 2,080,158 | 1,934,460 |
Allowance for loan losses | (23,904) | (23,243) |
Loans held for investment, net of allowance for loan losses | 2,056,254 | 1,911,217 |
Federal Home Loan Bank of San Francisco (“FHLB”) stock | 6,667 | 6,723 |
Operating leases, right-of-use asset ("ROUA") | 4,718 | 0 |
Premises and equipment, net | 1,836 | 1,773 |
Bank-owned life insurance ("BOLI"), net | 14,343 | 11,203 |
Interest receivable and other assets | 25,318 | 21,628 |
Assets | 2,778,249 | 2,556,761 |
Deposits | ||
Non-interest-bearing | 941,285 | 902,118 |
Interest-bearing | 1,561,807 | 1,383,772 |
Total deposits | 2,503,092 | 2,285,890 |
Subordinated notes, net | 28,403 | 28,386 |
Operating lease liability | 4,987 | 0 |
Interest payable and other liabilities | 10,706 | 7,439 |
Total liabilities | 2,547,188 | 2,321,715 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity | ||
Preferred stock, no par value; 10,000,000 shares authorized; zero issued and outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock, no par value; 100,000,000 shares authorized; 17,246,199 shares issued and outstanding at March 31, 2022; 17,224,848 shares issued and outstanding at December 31, 2021 | 218,721 | 218,444 |
Retained earnings | 19,558 | 17,168 |
Accumulated other comprehensive loss, net | (7,218) | (566) |
Total shareholders’ equity | 231,061 | 235,046 |
Liabilities and shareholders' equity | $ 2,778,249 | $ 2,556,761 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity | $ 4,459 | $ 5,197 |
Preferred stock (in USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock (in USD per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 17,246,199 | 17,224,848 |
Common stock, shares outstanding (in shares) | 17,246,199 | 17,224,848 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and fee income | ||
Loans, including fees | $ 22,091 | $ 18,613 |
Taxable securities | 390 | 259 |
Nontaxable securities | 177 | 214 |
Interest-bearing deposits in other banks | 192 | 104 |
Interest-bearing deposits in other banks | 22,850 | 19,190 |
Interest expense | ||
Deposits | 545 | 699 |
Subordinated notes | 443 | 443 |
Interest expense | 988 | 1,142 |
Net interest income | 21,862 | 18,048 |
Provision for loan losses | 950 | 200 |
Net interest income after provision for loan losses | 20,912 | 17,848 |
Non-interest income | ||
Service charges on deposit accounts | 108 | 90 |
Net gain on sale of securities available-for-sale | 5 | 182 |
Gain on sale of loans | 918 | 931 |
Loan-related fees | 617 | 260 |
FHLB stock dividends | 100 | 78 |
Earnings on BOLI | 90 | 52 |
Other | 345 | 23 |
Non-interest income, total | 2,185 | 1,616 |
Non-interest expense | ||
Salaries and employee benefits | 5,675 | 4,697 |
Occupancy and equipment | 520 | 451 |
Data processing and software | 716 | 629 |
Federal Deposit Insurance Corporation ("FDIC") insurance | 165 | 280 |
Professional services | 554 | 1,532 |
Advertising and promotional | 344 | 170 |
Loan-related expenses | 278 | 229 |
Other operating expenses | 1,323 | 816 |
Non-interest Expense, Total | 9,575 | 8,804 |
Income before provision for income taxes | 13,522 | 10,660 |
Provision for income taxes | 3,660 | 382 |
Net income | $ 9,862 | $ 10,278 |
Basic earnings per share (in USD per share) | $ 0.58 | $ 0.93 |
Diluted earnings per share (in USD per share) | $ 0.58 | $ 0.93 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net income | $ 9,862 | $ 10,278 |
Net unrealized holding loss on securities available-for-sale during the period | (9,438) | (1,614) |
Reclassification adjustment for net realized gains included in net income | (5) | (185) |
Income tax benefit related to other comprehensive loss | (2,791) | (64) |
Other comprehensive loss | (6,652) | (1,735) |
Total comprehensive income | $ 3,210 | $ 8,543 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Employee | Director | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Common StockEmployee | Common StockDirector | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss), Net of Taxes |
Beginning balance at Dec. 31, 2020 | $ 133,775 | $ 110,082 | $ 22,348 | $ 1,345 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 11,000,273 | |||||||||
Net income | 10,278 | 10,278 | ||||||||
Other comprehensive loss | (1,735) | (1,735) | ||||||||
Stock compensation expense (non-director and director) | $ 62 | $ 62 | ||||||||
Stock issued under stock award plans | 0 | |||||||||
Stock issued under stock award plans (in shares) | 9,454 | |||||||||
Stock forfeitures | 0 | |||||||||
Stock forfeitures (in shares) | (2,722) | |||||||||
Cash dividends paid | (11,003) | (11,003) | ||||||||
Ending balance at Mar. 31, 2021 | 131,377 | $ 110,144 | 21,623 | (390) | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 11,007,005 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 133,775 | $ 110,082 | 22,348 | 1,345 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 11,000,273 | |||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-02 | |||||||||
Ending balance at Dec. 31, 2021 | $ 235,046 | $ 68 | $ 218,444 | 17,168 | $ 68 | (566) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 17,224,848 | |||||||||
Net income | 9,862 | 9,862 | ||||||||
Other comprehensive loss | (6,652) | (6,652) | ||||||||
Stock compensation expense (non-director and director) | $ 169 | $ 108 | $ 169 | $ 108 | ||||||
Stock issued under stock award plans | 0 | |||||||||
Stock issued under stock award plans (in shares) | 22,201 | |||||||||
Stock forfeitures | 0 | |||||||||
Stock forfeitures (in shares) | (850) | |||||||||
Cash dividends paid | (7,540) | (7,540) | ||||||||
Ending balance at Mar. 31, 2022 | $ 231,061 | $ 218,721 | $ 19,558 | $ (7,218) | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 17,246,199 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends paid (in USD per share) | $ 0.60 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 9,862 | $ 10,278 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 950 | 200 |
Loans originated for sale | (21,173) | (13,021) |
Gain on sale of loans | (918) | (931) |
Proceeds from sale of loans | 11,705 | 10,892 |
Net gain on sale of securities available-for-sale | (5) | (182) |
Earnings on BOLI | (90) | (52) |
Stock compensation expense for employee and directors | 300 | 100 |
Change in deferred loan fees | (365) | 2,087 |
Amortization and accretion of security premiums and discounts | 358 | 361 |
Amortization of subordinated notes issuance costs | 17 | 16 |
Depreciation and amortization | 161 | 131 |
Decrease in operating lease liability | (234) | 0 |
Amortization of operating lease ROUA | 250 | 0 |
Deferred taxes | (2,777) | 0 |
Net changes in: | ||
Interest receivable and other assets | 1,880 | (1,485) |
Interest payable and other liabilities | 3,588 | 245 |
Net cash provided by operating activities | 3,486 | 8,601 |
Cash flows from investing activities: | ||
Proceeds from sale of securities available-for-sale | 1,623 | 11,456 |
Maturities, prepayments, and calls of securities available-for-sale | 4,731 | 4,520 |
Purchases of securities available-for-sale | (1,642) | (28,761) |
Increase in time deposits in banks | 0 | (1,991) |
Loan originations, net of repayments | (134,951) | (37,719) |
Purchase of premises and equipment | (224) | (113) |
Purchase of BOLI | (3,050) | 0 |
Net cash used in investing activities | (133,513) | (52,608) |
Cash flows from financing activities: | ||
Net change in deposits | 217,202 | 199,109 |
Cash dividends paid | (7,540) | (11,003) |
Net cash provided by financing activities | 209,662 | 188,106 |
Net change in cash and cash equivalents | 79,635 | 144,099 |
Cash and cash equivalents at beginning of period | 425,329 | 290,493 |
Cash and cash equivalents at end of period | 504,964 | 434,592 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 932 | 1,170 |
Supplemental disclosure of noncash investing and financing activities: | ||
Transfer from loans held for investment to loans held for sale | 10,671 | 4,820 |
Unrealized (loss) gain on securities | (9,438) | 1,797 |
Operating lease liabilities recorded in conjunction with adoption of ASC 842 | 5,221 | 0 |
ROUA recorded in conjunction with adoption of ASC 842 | 4,974 | 0 |
Cumulative effect of adoption of ASC 842 on retained earnings | 19,558 | |
Accounting Standards Update 2016-02 Cumulative Effect, Period of Adoption | ||
Supplemental disclosure of noncash investing and financing activities: | ||
Cumulative effect of adoption of ASC 842 on retained earnings | 68 | 0 |
Employee | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock compensation expense for employee and directors | 169 | 62 |
Director | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock compensation expense for employee and directors | $ 108 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1: Basis of Presentation Nature of Operations and Principles of Consolidation Five Star Bank (the “Bank”) was chartered on October 26, 1999 and began operations on December 20, 1999. Five Star Bancorp (“Bancorp” or the “Company”) was incorporated on September 16, 2002 and subsequently obtained approval from the Federal Reserve to be a bank holding company in connection with its acquisition of the Bank. The Company became the sole shareholder of the Bank on June 2, 2003 in a statutory merger, pursuant to which each outstanding share of the Bank’s common stock was exchanged for one share of common stock of the Company. The Company, through the Bank, provides financial services to customers who are predominately small and middle-market businesses, professionals, and individuals residing in the Northern California region. The Company's primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit, and its primary deposit products are checking accounts, savings accounts, money market accounts, and term certificate accounts. The Bank currently has seven branch offices in Roseville, Natomas, Rancho Cordova, Redding, Elk Grove, Chico, and Yuba City, and two loan production offices in Santa Rosa and Sacramento. The Company terminated its status as a Subchapter S corporation as of May 5, 2021, in connection with the Company’s Initial Public Offering (“IPO”) and became a taxable C Corporation. Prior to that date, as an S Corporation, the Company had no U.S. federal income tax expense. On April 9, 2021, the Company publicly filed a Registration Statement on Form S-1 with the SEC in connection with its IPO (the “Registration Statement”), which was subsequently amended on April 26, 2021 and May 3, 2021. The Registration Statement was declared effective by the SEC on May 4, 2021. In connection with the IPO, the Company issued 6,054,750 shares of common stock, no par value, which included 789,750 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $20.00 per share and began trading on the Nasdaq Global Select Market on May 5, 2021. On May 7, 2021, the closing date of the IPO, the Company received total net proceeds of $111.2 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $109.1 million. Basis of Financial Statement Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Regulation S-X. These interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in shareholders’ equity, and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2021, and the notes thereto, as filed in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 25, 2022. The unaudited consolidated financial statements include Five Star Bancorp and its wholly owned subsidiary, Five Star Bank. All significant intercompany transactions and balances are eliminated in consolidation. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2022. While the Company’s chief decision-makers monitor the revenue streams of the various products and services, operations are managed, and financial performance is evaluated, on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry. The Company qualifies as an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, and, as such, may take advantage of specified reduced reporting requirements and deferred accounting standards adoption dates, and is relieved of other significant requirements that are otherwise generally applicable to other public companies. Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited consolidated financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses is the most significant accounting estimate reflected in the Company’s consolidated financial statements. Earnings Per Share (“EPS”) Basic EPS is net income divided by the weighted average number of common shares outstanding during the period less average unvested restricted stock awards (“RSAs”). Diluted EPS includes the dilutive effect of additional potential common shares related to unvested RSAs using the treasury stock method. The Company has two forms of outstanding common stock: common stock and unvested RSAs. Holders of unvested RSAs receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings, and therefore the RSAs are considered participating securities. However, under the two-class method, the difference in EPS is not significant for these participating securities. Three months ended (in thousands, except per share data) March 31, March 31, Net income $ 9,862 $ 10,278 Weighted average basic common shares outstanding 17,102,508 10,998,041 Add: Dilutive effects of assumed vesting of restricted stock 62,011 — Weighted average diluted common shares outstanding 17,164,519 10,998,041 Income per common share: Basic EPS $ 0.58 $ 0.93 Diluted EPS $ 0.58 $ 0.93 During the three months ended March 31, 2022 and 2021, there were no outstanding stock options. Anti-dilutive shares, which are excluded from the dilutive EPS calculation, were deemed to be immaterial. For the three months ended March 31, 2021, pro forma EPS is calculated by applying a C Corporation effective tax rate of 29.56% to net income before provision for income taxes and using the determined pro forma net income balance to calculate EPS. For the three months ended March 31, 2022, pro forma EPS is actual EPS given that the Company was a C Corporation for the entire three-month period. The following reconciliation table provides a detailed calculation of pro forma EPS: Three months ended (in thousands, except per share data) March 31, March 31, Net income before provision for income taxes - GAAP $ 13,522 $ 10,660 Less: Actual/pro forma provision for income taxes 3,660 3,151 Actual/pro forma net income $ 9,862 $ 7,509 Weighted average basic common shares outstanding 17,102,508 10,998,041 Add: Dilutive effects of assumed vesting of restricted stock 62,011 — Weighted average diluted common shares outstanding 17,164,519 10,998,041 Income per common share: Basic EPS (actual/pro forma) $ 0.58 $ 0.68 Diluted EPS (actual/pro forma) $ 0.58 $ 0.68 Reclassifications Certain amounts reported in previous consolidated financial statements have been reclassified to conform to current period presentation. These reclassifications did not affect previously reported amounts of net income, total assets, or total shareholders’ equity. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Note 2: Recently Issued Accounting Standards The following reflect recent accounting standards that are pending adoption by the Company. As discussed in Note 1, Basis of Presentation, the Company qualifies as an emerging growth company, and as such, has elected to use the extended transition period for complying with new or revised accounting standards and is not subject to the new or revised accounting standards applicable to public companies during the extended transition period. The accounting standards discussed below reflect effective dates for the Company as an emerging growth company with the extended transition period. Accounting Standards Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU 2016-02, which, among other things, requires lessees to recognize most leases on the balance sheet, thus increasing reported assets and liabilities. Lessor accounting remains substantially similar to historical GAAP. The FASB has issued incremental guidance to Topic 842 standard through ASU No. 2018-10, 2018-11, and 2021-05. The Company has elected to use the transition relief approach as provided in ASU 2018-11, which permits the Company to use January 1, 2022 as both the application date and the adoption date, rather than the modified retrospective approach. The Company also elected certain relief options offered within the new standard, which include the package of practical expedients, the option not to recognize an ROUA and lease liability that arise from short-term leases (i.e., leases with terms of 12 months or less), and the option of hindsight when determining lease term. Substantially all of the Company’s lease agreements are considered operating leases and were not previously recognized on the Company’s balance sheets. As of January 1, 2022, the Company recorded an ROUA and corresponding lease liability for all applicable operating leases. While the guidance increased the Company’s gross assets and liabilities, the adoption of ASU 2016-02 did not have a material impact on the consolidated statements of income or the consolidated statements of cash flows. See Note 11, Commitments and Contingencies, for more information. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The primary objective of the amendments in this update is to simplify the application of hedge accounting. More specifically, the amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Furthermore, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, amendments in this update require an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. Hedge ineffectiveness is no longer separately measured and reported. The amendments in this update were effective for the Company beginning on January 1, 2022. The impact of adopting this ASU was immaterial to the Company’s consolidated financial statements. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The standard will replace the “incurred loss” model with a “current expected credit loss” (“CECL”) model. The CECL model will apply to estimated credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. The CECL model is based on lifetime expected losses, rather than incurred losses, and requires the recognition of credit loss expense in the consolidated statement of income and a related allowance for credit losses on the consolidated statement of condition at the time of origination or purchase of a loan receivable or held-to-maturity debt security. Likewise, subsequent changes in this estimate are recorded through credit loss expense and related allowance. The CECL model requires the use of not only relevant historical experience and current conditions, but reasonable and supportable forecasts of future events and circumstances, incorporating a broad range of information in developing credit loss estimates, which could result in significant changes to both the timing and amount of credit loss expense and allowance. Under ASU 2016-13, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost. Estimated credit losses are recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income. The ASU also expands the disclosure requirements regarding assumptions, models, and methods for estimating the allowance for loan losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. In March 2022, the FASB issued ASU No. 2022-02, which eliminates the recognition and measurement guidance on troubled debt restructurings and requires enhanced disclosures about loan modifications for borrowers experiencing financial difficulties. ASU 2016-13, and subsequently, ASU 2022-02, are effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While the Company believes the change from an incurred loss model to a CECL model has the potential to increase the allowance for loan losses at the adoption date, the Company cannot reasonably quantify the impact of the adoption of the amendments to its financial condition or results of operations at this time due to the complexity of and extensive changes resulting from these amendments. The Company is working with a third-party vendor to identify data gaps and determine the appropriate methodologies and resources to utilize in preparation for its transition to the new accounting standard, including but not limited to the use of certain tools to forecast future economic conditions that affect the cash flows of loans over their lifetime. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) . The amendments in this ASU are elective and provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. Additionally, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which refines the scope of ASC 848 and clarifies its guidance, permitting entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements, and calculating price alignment interest in connection with reference rate reform activities under way in global financial markets. The amendments in these ASUs may be elected as of March 12, 2020 through December 31, 2022. An entity may choose to elect the amendments in these updates at an interim period subsequent to March 12, 2020, with adoption methods varying based on transaction type. The Company has not elected to apply these amendments; however, the Company is assessing the applicability of the ASUs and continues to monitor guidance for reference rate reform from FASB and its impact on the Company’s consolidated financial statements. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair Value Hierarchy and Fair Value Measurement Accounting standards require the Company 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 (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2 : Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 : Significant unobservable inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The following table summarizes the Company’s assets and liabilities that were required to be recorded at fair value on a recurring basis. (in thousands) Carrying Quoted Prices in Significant Significant Measurement Categories: Changes in Fair Value Recorded In 1 March 31, 2022 Assets: Securities available-for-sale: U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds $ 134,813 $ — $ 134,813 $ — OCI Derivatives – interest rate swap 58 — 58 — NI Liabilities: Derivatives – interest rate swap 58 — 58 — NI December 31, 2021 Assets: Securities available-for-sale: U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds $ 148,807 $ — $ 148,807 $ — OCI Derivatives – interest rate swap 92 — 92 — NI Liabilities: Derivatives – interest rate swap 92 — 92 — NI 1 Other comprehensive income (“OCI”) or net income (“NI”). Available-for-sale securities are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1) are used to determine the fair value of available-for-sale securities. If quoted market prices are not available, management obtains pricing information from a reputable third-party service provider, who may utilize valuation techniques that use current market-based or independently sourced parameters, such as bid/ask prices, dealer-quoted prices, interest rates, benchmark yield curves, prepayment speeds, probability of default, loss severity, and credit spreads (Level 2). Level 2 securities include U.S. agencies' or government-sponsored enterprises’ ("GSEs") debt securities, mortgage-backed securities, government agency issued bonds, privately issued collateralized mortgage obligations, and corporate bonds. As of March 31, 2022 and December 31, 2021, there were no Level 1 or Level 3 available-for-sale securities. On a recurring basis, derivative financial instruments are recorded at fair value, which is based on the income approach using observable Level 2 market inputs, reflecting market expectations of future interest rates as of the measurement date. Standard valuation techniques are used to calculate the present value of the future expected cash flows assuming an orderly transaction. Valuation adjustments may be made to reflect both the Company’s credit risk and the counterparties’ credit risk in determining the fair value of the derivatives. A similar credit risk adjustment, correlated to the credit standing of the counterparty, is made when collateral posted by the counterparty does not fully cover their liability to the Company. Certain financial assets may be measured at fair value on a non-recurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as collateral dependent impaired loans and other real estate owned (“OREO”). As of March 31, 2022 and December 31, 2021, the Company did not carry any assets measured at fair value on a non-recurring basis. Disclosures about Fair Value of Financial Instruments The table below is a summary of fair value estimates for financial instruments as of March 31, 2022 and December 31, 2021. The carrying amounts in the following table are recorded in the consolidated balance sheets under the indicated captions. Further, management has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements, such as BOLI. March 31, 2022 December 31, 2021 (in thousands) Carrying Fair Fair Value Carrying Fair Fair Value Financial assets: Cash and cash equivalents $ 504,964 $ 504,964 Level 1 $ 425,329 $ 425,329 Level 1 Time deposits in banks 14,464 14,464 Level 1 14,464 14,464 Level 1 Securities available-for-sale 134,813 134,813 Level 2 148,807 148,807 Level 2 Securities held-to-maturity 4,486 4,459 Level 3 4,946 5,197 Level 3 Loans held for sale 10,386 11,063 Level 2 10,671 11,217 Level 2 Loans held for investment, net of allowance for loan losses 2,056,254 1,993,626 Level 3 1,911,217 1,893,431 Level 3 FHLB stock and other investments 12,383 N/A N/A 12,464 N/A N/A Interest receivable 5,547 5,547 Level 2 5,332 5,332 Level 2 Interest rate swap 58 58 Level 2 92 92 Level 2 Financial liabilities: Deposits 2,503,092 2,349,536 Level 2 2,285,890 2,210,555 Level 2 Interest payable 79 79 Level 2 23 23 Level 2 Interest rate swap 58 58 Level 2 92 92 Level 2 Subordinated notes 28,403 28,403 Level 3 28,386 28,386 Level 3 The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at March 31, 2022 and December 31, 2021: Cash and cash equivalents and time deposits in banks : The carrying amount is estimated to be fair value due to the liquid nature of the assets and their short-term maturities. Investment securities : See discussion above for the methods and assumptions used by the Company to estimate the fair value of investment securities. Loans held for sale : For loans held for sale, the fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. Loans held for investment: For variable rate loans that reprice frequently with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, which use interest rates being offered at each reporting date for loans with similar terms to borrowers of comparable creditworthiness without considering widening credit spreads due to market illiquidity, which approximates the exit price notion. The allowance for loan losses is considered to be a reasonable estimate of loan discount for credit quality concerns. Interest receivable and payable : For interest receivable and payable, the carrying amount is estimated to be fair value. Derivatives - interest rate swap : See above for a discussion of the methods and assumptions used by the Company to estimate the fair value of derivatives. Deposits : The fair values for demand deposits are, by definition, equal to the amount payable on demand at the reporting date represented by their carrying amount. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow analysis that uses interest rates being offered at each reporting date by the Company for certificates with similar remaining maturities. For variable rate time deposits, cost approximates fair value. Subordinated Notes : The fair value is estimated by discounting the future cash flow using the current three-month LIBOR. The Company's subordinated notes are not registered securities and were issued through private placements, resulting in a Level 3 classification. The notes are recorded at carrying value. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The Company’s investment securities portfolio includes obligations of states and political subdivisions, securities issued by U.S. federal government agencies such as the Small Business Administration (the “SBA”), and securities issued by U.S. GSEs, such as the Federal National Mortgage Association (the “FNMA”), the Federal Home Loan Mortgage Corporation (the “FHLMC”), and the FHLB. The Company also invests in residential and commercial mortgage-backed securities, collateralized mortgage obligations issued or guaranteed by the GSEs, and corporate bonds, as reflected in the following tables. A summary of the amortized cost and fair value related to securities held-to-maturity as of March 31, 2022 and December 31, 2021 is presented below. (in thousands) Gross Unrealized Amortized Gains (Losses) Fair March 31, 2022 Obligations of states and political subdivisions $ 4,486 $ — $ (27) $ 4,459 Total held-to-maturity $ 4,486 $ — $ (27) $ 4,459 December 31, 2021 Obligations of states and political subdivisions $ 4,946 $ 251 $ — $ 5,197 Total held-to-maturity $ 4,946 $ 251 $ — $ 5,197 For securities issued by states and political subdivisions, management considers: (i) issuer and/or guarantor credit ratings, (ii) historical probability of default and loss given default rates for given bond ratings and remaining maturity, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) internal credit review of the financial information; and (v) whether or not such securities have credit enhancements such as guarantees, contain a defeasance clause, or are pre-refunded by the issuers. A summary of the amortized cost and fair value related to securities available-for-sale as of March 31, 2022 and December 31, 2021 is presented below. (in thousands) Amortized Gross Unrealized Fair Gains (Losses) March 31, 2022 U.S. government agencies $ 18,241 $ 95 $ (257) $ 18,079 Mortgage-backed securities 79,694 8 (6,210) 73,492 Obligations of states and political subdivisions 44,621 23 (3,713) 40,931 Collateralized mortgage obligations 504 — (21) 483 Corporate bonds 2,000 — (172) 1,828 Total available-for-sale $ 145,060 $ 126 $ (10,373) $ 134,813 December 31, 2021 U.S. government agencies $ 19,824 $ 60 $ (202) $ 19,682 Mortgage-backed securities 82,517 94 (1,098) 81,513 Obligations of states and political subdivisions 44,732 525 (120) 45,137 Collateralized mortgage obligations 537 3 — 540 Corporate bonds 2,000 — (65) 1,935 Total available-for-sale $ 149,610 $ 682 $ (1,485) $ 148,807 The amortized cost and fair value of investment debt securities by contractual maturity at March 31, 2022 and December 31, 2021 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties. (in thousands) March 31, 2022 December 31, 2021 Held-to-Maturity Available-for-Sale Held-to-Maturity Available-for-Sale Amortized Fair Value Amortized Fair Value Amortized Fair Value Amortized Fair Value Within one year $ 456 $ 454 $ — $ — $ 491 $ 516 $ — $ — After one but within five years 1,115 1,108 505 514 951 999 507 522 After five years through ten years 1,590 1,580 3,684 3,458 3,504 3,682 3,697 3,748 After ten years 1,325 1,317 40,432 36,959 — — 40,528 40,867 Investment securities not due at a single maturity date: U.S. government agencies — — 18,241 18,079 — — 19,824 19,682 Mortgage-backed securities — — 79,694 73,492 — — 82,517 81,513 Collateralized mortgage obligations — — 504 483 — — 537 540 Corporate bonds — — 2,000 1,828 — — 2,000 1,935 Total $ 4,486 $ 4,459 $ 145,060 $ 134,813 $ 4,946 $ 5,197 $ 149,610 $ 148,807 Sales of investment securities and gross gains and losses are shown in the following table: (in thousands) For the three months ended March 31, March 31, Available-for-sale: Sales proceeds $ 1,623 $ 11,456 Gross realized gains 5 182 Pledged investment securities are shown in the following table: (in thousands) March 31, December 31, Pledged to the State of California: Secure deposits of public funds and borrowings $ 57,423 $ 63,363 Total pledged investment securities $ 57,423 $ 63,363 The following table details the gross unrealized losses and fair values aggregated by investment category and length of time that individual available-for-sale securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021: (in thousands) < 12 continuous months ≥ 12 continuous months Total securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss March 31, 2022 U.S. government agencies $ 2,275 $ (77) $ 12,371 $ (180) $ 14,646 $ (257) Mortgage-backed securities 62,090 (5,122) 10,969 (1,088) 73,059 (6,210) Obligations of states and political subdivisions 37,803 (3,540) 1,791 (173) 39,594 (3,713) Collateralized mortgaged obligations 483 (21) — — 483 (21) Corporate bonds 1,828 (172) — — 1,828 (172) Total temporarily impaired securities $ 104,479 $ (8,932) $ 25,131 $ (1,441) $ 129,610 $ (10,373) December 31, 2021 U.S. government agencies $ — $ — $ 13,399 $ (202) $ 13,399 $ (202) Mortgage-backed securities 73,972 (1,046) 1,400 (52) 75,372 (1,098) Obligations of states and political subdivisions 14,014 (112) 407 (8) 14,421 (120) Corporate bonds 1,935 (65) — — 1,935 (65) Total temporarily impaired securities $ 89,921 $ (1,223) $ 15,206 $ (262) $ 105,127 $ (1,485) There were 150 and 91 available-for-sale securities in unrealized loss positions at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, the investment portfolio included 24 investment securities that had been in a continuous loss position for twelve months or more and 126 investment securities that had been in a loss position for less than twelve months. The Company periodically evaluates each available-for-sale investment security in an unrealized loss position to determine if the impairment is temporary or other than temporary and has determined that no investment security is other than temporarily impaired. The unrealized losses are due primarily to interest rate changes. The Company does not intend, and it is more likely than not that the Company will not be required, to sell the securities before the earlier of the forecasted recovery or the maturity of the underlying debt security. There was one held-to-maturity security in a continuous unrealized loss position at March 31, 2022. This security was in an unrealized loss position for less than 12 months. There were no held-to-maturity securities in a continuous loss position at December 31, 2021. Obligations issued or guaranteed by government agencies such as GNMA and SBA or GSEs under conservatorship such as FNMA and FHLMC are guaranteed or sponsored by agencies of the U.S. government and have strong credit profiles. The Company therefore expects to receive all contractual interest payments on time and believes the risk of credit losses on these securities is remote. The Company’s investment in obligations of states and political subdivisions are deemed credit worthy after management’s comprehensive analysis of the issuers’ latest financial information, credit ratings by major credit agencies, and/or credit enhancements. Non-Marketable Securities Included in Other Assets FHLB capital stock : As a member of the FHLB, the Company is required to maintain a minimum investment in FHLB capital stock determined by the board of directors of the FHLB. The minimum investment requirements can increase in the event the Company increases its total asset size or borrowings with the FHLB. Shares cannot be purchased or sold except between the FHLB and its members at the $100 per share par value. The Company held $6.7 million of FHLB stock at March 31, 2022 and December 31, 2021. The carrying amounts of these investments are reasonable estimates of fair value because the securities are restricted to member banks and do not have a readily determinable market value. Based on management’s analysis of the FHLB’s financial condition and certain qualitative factors, management determined that the FHLB stock was not impaired at March 31, 2022 and December 31, 2021. On February 16, 2022, FHLB announced a cash dividend for the fourth quarter of 2021 at an annualized dividend rate of 6.00%, which was paid on March 10, 2022. For the three months ended March 31, 2022 and 2021, cash dividends received on FHLB capital stock in the amount of $0.1 million were recorded as non-interest income on the consolidated statements of income. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan LossesThe Company’s loan portfolio is its largest class of earning assets and typically provides higher yields than other types of earning assets. Associated with the higher yields is an inherent amount of credit risk which the Company attempts to mitigate with strong underwriting. As of March 31, 2022 and December 31, 2021, the carrying value of total loans held for investment amounted to $2.1 billion and $1.9 billion, respectively. The following table presents the balance of each major product type within the Company’s portfolio as of the dates indicated. (in thousands) March 31, December 31, Real estate: Commercial $ 1,760,551 $ 1,586,232 Commercial land and development 9,090 7,376 Commercial construction 59,293 54,214 Residential construction 5,540 7,388 Residential 28,921 28,562 Farmland 49,903 54,805 Commercial: Secured 124,930 137,062 Unsecured 22,599 21,136 Paycheck Protection Program (“PPP”) 1,528 22,124 Consumer and other 19,044 17,167 Subtotal 2,081,399 1,936,066 Less: Net deferred loan fees 1,241 1,606 Less: Allowance for loan losses 23,904 23,243 Loans held for investment, net of allowance for loan losses $ 2,056,254 $ 1,911,217 Underwriting Commercial loans: Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Company’s management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. Commercial loans are primarily made 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. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Real estate loans: Real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected than other loans by conditions in the real estate market or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography, and risk grade criteria. Construction loans: With respect to construction loans that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the ultimate success of the project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property, or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are generally considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing. Residential real estate loans: Residential real estate loans are underwritten based upon the borrower’s income, credit history, and collateral. To monitor and manage residential loan risk, policies and procedures are developed and modified, as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Underwriting standards for home loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage, collection remedies, the number of such loans a borrower can have at one time, and documentation requirements. Farmland loans: Farmland loans are generally made to producers and processors of crops and livestock. Repayment is primarily from the sale of an agricultural product or service. Farmland loans are secured by real property and are susceptible to changes in market demand for specific commodities. This may be exacerbated by, among other things, industry changes, changes in the individual financial capacity of the business owner, general economic conditions, and changes in business cycles, as well as adverse weather conditions. Consumer loans: The Company purchased consumer loans underwritten utilizing credit scoring analysis to supplement the underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage, collection remedies, the number of such loans a borrower can have at one time, and documentation requirements. Credit Quality Indicators The Company has established a loan risk rating system to measure and monitor the quality of the loan portfolio. All loans are assigned a risk rating from the inception of the loan until the loan is paid off. The primary loan grades are as follows: Loans rated pass : These are loans to borrowers with satisfactory financial support, repayment capacity, and credit strength. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history, and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Company’s policy regarding debt service coverage ratios. These borrowers are capable of sustaining normal economic, market, or operational setbacks without significant financial impacts. Financial ratios and trends are acceptable. Negative external industry factors are generally not present. The loan may be secured, unsecured, or supported by non-real estate collateral for which the value is more difficult to determine and/or marketability is more uncertain. Loans rated watch : These are loans which have deficient loan quality and potentially significant issues, but losses do not appear to be imminent, and the issues are expected to be temporary in nature. The significant issues are typically: (i) a history of losses or events that threaten the borrower’s viability; (ii) a property with significant depreciation and/or marketability concerns; or (iii) poor or deteriorating credit, occasional late payments, and/or limited reserves but loan is generally kept current. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Loans rated substandard : These are loans which are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged (if any). Loans so classified exhibit a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected. The substandard loan category includes loans that management has determined not to be impaired, as well as loans that are impaired. Loans rated doubtful : These are loans for which the collection or liquidation of the entire debt is highly questionable or improbable. Typically, the possibility of loss is extremely high. The losses on these loans are deferred until all pending factors have been addressed. The following table summarizes the credit quality indicators related to the Company’s loans by class as of March 31, 2022: (in thousands) Pass Watch Substandard Doubtful Total Real estate: Commercial $ 1,751,563 $ 8,087 $ 901 $ — $ 1,760,551 Commercial land and development 9,090 — — — 9,090 Commercial construction 53,393 5,900 — — 59,293 Residential construction 5,540 — — — 5,540 Residential 28,744 — 177 — 28,921 Farmland 49,903 — — — 49,903 Commercial: Secured 122,996 14 1,920 — 124,930 Unsecured 22,599 — — — 22,599 PPP 1,528 — — — 1,528 Consumer 19,032 — 12 — 19,044 Total $ 2,064,388 $ 14,001 $ 3,010 $ — $ 2,081,399 The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2021: (in thousands) Pass Watch Substandard Doubtful Total Real estate: Commercial $ 1,575,006 $ 1,970 $ 9,256 $ — $ 1,586,232 Commercial land and development 7,376 — — — 7,376 Commercial construction 48,288 5,926 — — 54,214 Residential construction 7,388 — — — 7,388 Residential 28,384 — 178 — 28,562 Farmland 54,805 — — — 54,805 Commercial: Secured 135,131 751 1,180 — 137,062 Unsecured 21,136 — — — 21,136 PPP 22,124 — — — 22,124 Consumer 17,167 — — — 17,167 Total $ 1,916,805 $ 8,647 $ 10,614 $ — $ 1,936,066 Management regularly reviews the Company’s loans for accuracy of risk grades whenever new information is received. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk, and complexity. In addition, investor commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. Management monitors construction loans monthly and reviews other consumer loans based on delinquency. Management also reviews loans graded “watch” or worse, regardless of loan type, no less than quarterly. The age analysis of past due loans by class as of March 31, 2022 consisted of the following: (in thousands) Past Due 30-89 Greater Than Total Past Current Total Loans Real estate: Commercial $ — $ — $ — $ 1,760,551 $ 1,760,551 Commercial land and development — — — 9,090 9,090 Commercial construction — — — 59,293 59,293 Residential construction — — — 5,540 5,540 Residential — — — 28,921 28,921 Farmland — — — 49,903 49,903 Commercial: Secured 422 — 422 124,508 124,930 Unsecured — — — 22,599 22,599 PPP — — — 1,528 1,528 Consumer and other 127 — 127 18,917 19,044 Total $ 549 $ — $ 549 $ 2,080,850 $ 2,081,399 There were no loans between 60-89 days past due nor any loans greater than 90 days past due and still accruing as of March 31, 2022. The age analysis of past due loans by class as of December 31, 2021 consisted of the following: (in thousands) Past Due Total Past Current Total Loans 30-89 Greater Than Real estate: Commercial $ — $ — $ — $ 1,586,232 $ 1,586,232 Commercial land and development — — — 7,376 7,376 Commercial construction — — — 54,214 54,214 Residential construction — — — 7,388 7,388 Residential — — — 28,562 28,562 Farmland — — — 54,805 54,805 Commercial: Secured — — — 137,062 137,062 Unsecured — — — 21,136 21,136 PPP — — — 22,124 22,124 Consumer and other 334 — 334 16,833 17,167 Total $ 334 $ — $ 334 $ 1,935,732 $ 1,936,066 There were no loans between 60-89 days past due nor any loans greater than 90 days past due and still accruing as of December 31, 2021. Impaired Loans Information related to impaired loans as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 (in thousands) Recorded Unpaid Related Recorded Unpaid Related With no related allowance recorded: Real estate: Commercial $ 118 $ 118 $ — $ 122 $ 122 $ — Residential 177 177 — 178 178 — Commercial: Secured 111 111 — 116 116 — Consumer and other 12 12 — — — — $ 418 $ 418 $ — $ 416 $ 416 $ — With an allowance recorded: Commercial: Secured $ 922 $ 922 $ 639 $ 172 $ 172 $ 172 $ 922 $ 922 $ 639 $ 172 $ 172 $ 172 Total by category: Real estate: Commercial $ 118 $ 118 $ — $ 122 $ 122 $ — Residential 177 177 — 178 178 — Commercial: Secured 1,033 1,033 639 288 288 172 Consumer and other 12 12 — — — — Total impaired loans $ 1,340 $ 1,340 $ 639 $ 588 $ 588 $ 172 No collateral dependent loans were in process of foreclosure at March 31, 2022 or December 31, 2021. Information related to impaired loans for the three months ended March 31, 2022 and 2021 consisted of the following: Three months ended March 31, 2022 March 31, 2021 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate: Commercial $ 120 $ — $ 136 $ — Residential 178 — 182 — Commercial: Secured 174 — 129 — Consumer and other 25 — — — $ 497 $ — $ 447 $ — With an allowance recorded: Commercial: Secured $ 947 $ — $ — $ — Consumer and other — — 36 — $ 947 $ — $ 36 $ — Total by category: Real estate: Commercial $ 120 $ — $ 136 $ — Residential 178 — 182 — Commercial: Secured 1,121 — 129 — Consumer and other 25 — 36 — Total impaired loans $ 1,444 $ — $ 483 $ — Non-accrual loans, segregated by class, are as follows as of March 31, 2022 and December 31, 2021: (in thousands) March 31, December 31, Real estate: Commercial $ 118 $ 122 Residential 177 178 Commercial: Secured 1,033 288 Total non-accrual loans $ 1,328 $ 588 The amount of foregone interest income related to non-accrual loans was $18.3 thousand and $6.8 thousand for the three months ended March 31, 2022 and 2021, respectively. Troubled Debt Restructuring The Company’s loan portfolio may include certain loans that have been modified in a troubled debt restructuring (“TDR”), which are loans for which concessions in terms have been granted because of the borrowers’ financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are placed on non-accrual status at the time of restructure and may only be returned to accruing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. When a loan is modified, it is measured based upon the present value of future cash flows discounted at the effective interest rate of the original loan agreement or the fair value of collateral less selling costs if the loan is collateral dependent. If the value of the modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance or a charge-off of the loan. There were no loans outstanding with a TDR designation at March 31, 2022 or December 31, 2021. Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as subsequently amended by the Consolidated Appropriations Act, 2021, provided TDR relief for borrowers affected by the COVID-19 pandemic. Specifically, the CARES Act, as amended, specified that to be eligible not to be considered a TDR, a loan modification must be (i) related to the COVID-19 pandemic; (ii) executed on a loan that was not more than 30 days past due as of December 31, 2020; and (iii) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the federal national emergency; or (b) January 1, 2022. In accordance with section 4013 of the CARES Act, the Company elected to apply the temporary accounting relief provisions for loan modifications that met certain criteria, which would otherwise be designated TDRs under existing GAAP. As of March 31, 2022 and December 31, 2021, six borrowing relationships with six loans totaling $12.2 million were continuing to benefit from payment relief. The Company accrues and recognizes interest income on loans under payment relief based on the original contractual interest rates. When payments resume at the end of the relief period, the payments will generally be applied to accrued interest due until accrued interest is fully paid. The following table discloses activity in the allowance for loan losses for the periods presented. Real Estate Commercial (in thousands) Comml Comml Comml Resid Resid Farm- Secured Unsec PPP Consu Unal Total Three months ended March 31, 2022 Beginning balance $ 12,869 $ 50 $ 371 $ 50 $ 192 $ 645 $ 6,859 $ 207 $ — $ 889 $ 1,111 $ 23,243 Charge-offs — — — — — — (309) — — (67) — (376) Recoveries — — — — — — 46 — — 41 — 87 Provision (recapture) 999 16 59 (10) 16 (34) 443 39 — 225 (803) 950 Ending balance $ 13,868 $ 66 $ 430 $ 40 $ 208 $ 611 $ 7,039 $ 246 $ — $ 1,088 $ 308 $ 23,904 Three months ended March 31, 2021 Beginning balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 Charge-offs — — — — — — (255) — — — — (255) Recoveries — — — — — — 87 — — 50 — 137 Provision (recapture) 861 3 (317) (30) (32) (37) (390) 16 — (82) 208 200 Ending balance $ 10,219 $ 80 $ 504 $ 57 $ 188 $ 578 $ 8,918 $ 195 $ — $ 600 $ 932 $ 22,271 The following table summarizes the allocation of the allowance for loan losses by impairment methodology for the periods presented. Real Estate Commercial (in thousands) Comml Comml Comml Resid Resid Farm- Secured Unsec PPP Consu Unal Total As of March 31, 2022: Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ 639 $ — $ — $ — $ — $ 639 Loans collectively evaluated for impairment 13,868 66 430 40 208 611 6,400 246 — 1,088 308 23,265 Ending balance $ 13,868 $ 66 $ 430 $ 40 $ 208 $ 611 $ 7,039 $ 246 $ — $ 1,088 $ 308 $ 23,904 Loans: Ending balance individually evaluated for impairment $ 118 $ — $ — $ — $ 177 $ — $ 1,034 $ — $ — $ 12 $ — $ 1,341 Ending balance collectively evaluated for impairment 1,760,433 9,090 59,293 5,540 28,744 49,903 123,896 22,599 1,528 19,032 — 2,080,058 Ending balance $ 1,760,551 $ 9,090 $ 59,293 $ 5,540 $ 28,921 $ 49,903 $ 124,930 $ 22,599 $ 1,528 $ 19,044 $ — $ 2,081,399 As of December 31, 2021: Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ 172 $ — $ — $ — $ — $ 172 Loans collectively evaluated for impairment 12,869 50 371 50 192 645 6,687 207 — 889 1,111 23,071 Ending balance $ 12,869 $ 50 $ 371 $ 50 $ 192 $ 645 $ 6,859 $ 207 $ — $ 889 $ 1,111 $ 23,243 Loans: Ending balance individually evaluated for impairment $ 122 $ — $ — $ — $ 178 $ — $ 288 $ — $ — $ — $ — $ 588 Ending balance collectively evaluated for impairment 1,586,110 7,376 54,214 7,388 28,384 54,805 136,774 21,136 22,124 17,167 — 1,935,478 Ending balance $ 1,586,232 $ 7,376 $ 54,214 $ 7,388 $ 28,562 $ 54,805 $ 137,062 $ 21,136 $ 22,124 $ 17,167 $ — $ 1,936,066 Pledged Loans The Company’s FHLB line of credit is secured under terms of a collateral agreement by a pledge of certain qualifying loans with unpaid principal balances of $1.2 billion and $941.2 million at March 31, 2022 and December 31, 2021, respectively. In addition, the Company pledges eligible tenants in common loans, which totaled $29.7 million and $33.4 million at March 31, 2022 and December 31, 2021, respectively, to secure its borrowing capacity with the Federal Reserve Bank of San Francisco. See Note 8, Long Term Debt and Other Borrowings, for further discussion of these borrowings. Related Party Loans The Company has, and expects to have in the future, banking transactions in the ordinary course of its business with directors, officers, principal shareholders, and their businesses or associates. In accordance with applicable regulations and Bank policies, these loans are granted on substantially the same terms, including interest rates and collateral on loans, as those prevailing at the same time for comparable transactions with persons not related to the Company. Likewise, these transactions do not involve more than the normal risk of collectability or present other unfavorable features. Loan commitment to insiders and affiliates, net of cash collateral, totaled $8.9 million at March 31, 2022 and $9.7 million at December 31, 2021. |
Interest-Bearing Deposits
Interest-Bearing Deposits | 3 Months Ended |
Mar. 31, 2022 | |
Interest-bearing Deposits | |
Interest-Bearing Deposits | Interest-Bearing Deposits Interest-bearing deposits consisted of the following as of March 31, 2022 and December 31, 2021: (in thousands) March 31, December 31, Savings $ 92,370 $ 88,536 Money market 919,281 912,558 Interest checking 371,122 278,406 Time, $250 or more 152,877 77,868 Other time 26,157 26,404 Total interest-bearing deposits $ 1,561,807 $ 1,383,772 Time deposits totaled $179.0 million and $104.3 million as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, scheduled maturities of time deposits for the next five years were as follows: (in thousands) 2022 $ 177,996 2023 599 2024 438 2025 — 2026 1 Total time deposits $ 179,034 Total deposits include deposits offered through the IntraFi Network (formerly Promontory Interfinancial Network) that are comprised of Certificate of Deposit Account Registry Service® (“CDARS”) balances included in time deposits and Insured Cash Sweep® (“ICS”) balances included in money market deposits. Through this network, the Company offers customers access to FDIC-insured deposit products in aggregate amounts exceeding current insurance limits. When funds are deposited through CDARS and ICS on behalf of a customer, the Company has the option of receiving matching deposits through the network’s reciprocal deposit program or placing deposits “one-way,” for which the Company receives no matching deposits. The Company considers the reciprocal deposits to be in-market deposits, as distinguished from traditional out-of-market brokered deposits. The following table shows the composition of network deposits for March 31, 2022 and December 31, 2021. There were no one-way deposits at March 31, 2022 and December 31, 2021. The composition of network deposits as of March 31, 2022 and December 31, 2021 was as follows: (in thousands) March 31, December 31, CDARS $ 22,160 $ 22,411 ICS 327,384 307,636 Total network deposits $ 349,544 $ 330,047 At March 31, 2022 and December 31, 2021, deposits from related parties (directors, executive officers, and principal shareholders) totaled $39.6 million and $32.4 million, respectively. Interest expense recognized on interest-bearing deposits for periods ended March 31, 2022, and 2021 consisted of the following: Three months ended (in thousands) March 31, March 31, Savings $ 25 $ 15 Money market 367 582 Interest checking 70 38 Time, $250 or more 59 7 Other time 24 57 Total interest expense on interest-bearing deposits $ 545 $ 699 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space for its banking operations under non-cancelable operating leases of various terms. The leases expire at dates through 2032 and provide for renewal options from zero five The Company has a sublease agreement for space adjacent to the Redding location. The sublease has renewal terms extended to December 31, 2022. The Company leases its Sacramento loan production office from a partnership comprised of some of the Company’s shareholders and certain members of its board of directors. The Sacramento loan production office lease extends through April 2023. Additionally, the Company leased its Natomas branch from the same partnership of related parties until July 13, 2021, at which time ownership of the property was transferred to an unrelated third-party landlord. Rent expense paid to the partnership under these leases was insignificant for the three months ended March 31, 2022 and $0.1 million for the three months ended March 31, 2021. The Company adopted ASU 2016-02, Leases (Topic 842) as of January 1, 2022, which requires the Company to record an ROUA on the consolidated balance sheets for those leases that convey rights to control use of identified assets for a period of time in exchange for consideration. The Company is also required to record a lease liability on the consolidated balance sheets for the present value of future payment commitments. All of the Company’s leases are comprised of operating leases in which the Company is the lessee of real estate property for branches and operations. The Company elected not to include short-term leases (i.e., leases with initial terms of 12 months or less) within the ROUA and lease liability. Known or determinable adjustments to the required minimum future lease payments were included in the calculation of the Company’s ROUA and lease liability. Adjustments to the required minimum future lease payments that are variable and will not be determinable until a future period, if any, such as changes in the Consumer Price Index, are included as variable lease costs. Additionally, expected variable payments for common area maintenance, taxes, and insurance were unknown and not determinable at lease commencement and, therefore, were not included in the determination of the Company’s ROUA or lease liability. The value of the ROUA and lease liability is impacted by the amount of the periodic payment required, length of the lease term, and the discount rate used to calculate the present value of the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROUA and lease liability. ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2022, the rate for the remaining lease term as of January 1, 2022 was used. The lease liability is reduced based on the discounted present value of remaining payments as of each reporting period. The ROUA value is measured using the lease liability as adjusted for prepaid or accrued lease payments and remaining lease incentives, unamortized direct costs, and impairment, if any. The following table presents the components of lease expense for the three months ended March 31, 2022: (in thousands) Three months ended March 31, 2022 Operating lease cost $ 285 Short-term lease cost — Variable lease cost — Sublease income (5) Total lease cost $ 280 Prior to the adoption of ASU 2016-02, rent expense under operating leases was $0.3 million during the three months ended March 31, 2021. Rent expense was partially offset by rent income of $5.2 thousand during the three months ended March 31, 2021. The following table presents the weighted average operating lease term and discount rate at March 31, 2022: March 31, 2022 Weighted average remaining lease term (in years) 5.87 years Weighted average discount rate 2.14 % The following table shows the future expected operating lease payments under the Company's operating lease agreements as of March 31, 2022: (in thousands) 2022 $ 803 2023 1,009 2024 984 2025 767 2026 665 Thereafter 1,107 Total expected operating lease payments 5,335 Discount for present value of expected cash flows (348) Lease liability at March 31, 2022 $ 4,987 |
Long Term Debt and Other Borrow
Long Term Debt and Other Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long Term Debt and Other Borrowings | Long Term Debt and Other Borrowings Subordinated notes : On November 8, 2019, the Company completed a private placement of $3.8 million of fixed-to-floating rate subordinated notes to certain qualified investors. All of the debt was purchased by four existing members of the board of directors or their affiliates. The notes were used for general corporate purposes, capital management, and to support future growth. The subordinated notes have a maturity date of September 15, 2027 and bear interest, payable semi-annually, at the rate of 5.50% per annum until September 15, 2022. On that date, the interest rate will be adjusted to float at a rate equal to the three-month LIBOR plus 354.4 basis points (4.38% as of March 31, 2022) until maturity. The notes include a right of prepayment, on or after September 15, 2022 or, in certain limited circumstances, before that date. The indebtedness evidenced by the subordinated notes, including principal and interest, is unsecured and subordinate and junior in right to payment to general and secured creditors and depositors of the Company. On September 28, 2017, the Company completed a private placement of $25.0 million of fixed-to-floating rate subordinated notes to certain qualified investors, of which $8.0 million is owned by an entity that is controlled by a member of the board of directors and three principal shareholders. The notes were used for general corporate purposes, capital management, and to support future growth. The subordinated notes have a maturity date of September 15, 2027 and bear interest, payable semi-annually, at the rate of 6.00% per annum until September 15, 2022. On that date, the interest rate will be adjusted to float at a rate equal to the three-month LIBOR plus 404.4 basis points (4.88% as of March 31, 2022) until maturity. The notes include a right of prepayment, on or after September 15, 2022 or, in certain limited circumstances, before that date. The indebtedness evidenced by the subordinated notes, including principal and interest, is unsecured and subordinate and junior in right to payment to general and secured creditors and depositors of the Company. The subordinated notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes. Debt issuance costs incurred in conjunction with the notes were $0.6 million, of which $0.3 million has been amortized through March 31, 2022. The Company reflects debt issuance costs as a direct deduction from the face of the note. The debt issuance costs are amortized into interest expense through the maturity period. At March 31, 2022 and December 31, 2021, the Company’s subordinated debt outstanding was $28.4 million. Other borrowings: In 2005, and through an amendment in 2014, the Company entered into an agreement with the FHLB which granted the FHLB a blanket lien on all loans receivable (except for construction and agricultural loans) as collateral for a borrowing line. Based on the dollar volume of qualifying loan collateral, the Company had a total financing availability of $855.9 million at March 31, 2022 and $696.3 million at December 31, 2021. At March 31, 2022 and December 31, 2021, the Company had no outstanding borrowings. As of March 31, 2022 and December 31, 2021, the Company had letters of credit (“LCs”) issued on its behalf totaling $495.5 million and $420.5 million, respectively, as discussed below. At March 31, 2022 and December 31, 2021, LCs totaling $155.5 million and $80.5 million, respectively, were pledged to secure State of California deposits and $340.0 million were pledged to secure local agency deposits. The LCs issued reduced the Company’s available borrowing capacity to $360.4 million and $275.8 million as of March 31, 2022 and December 31, 2021, respectively. At December 31, 2021, the Company had five unsecured federal funds lines of credit totaling $150.0 million with five of its correspondent banks, respectively. During the quarter ended March 31, 2022, the borrowing capacity of one of the Company's existing unsecured federal funds lines of credit was increased by $10.0 million. As a result, at March 31, 2022, the Company had five unsecured federal funds lines of credit totaling $160.0 million with five of its correspondent banks, respectively. There were no amounts outstanding at March 31, 2022 and December 31, 2021. At March 31, 2022 and December 31, 2021, the Company had the ability to borrow from the Federal Reserve Discount Window. At March 31, 2022 and December 31, 2021, the borrowing capacity under this arrangement was $18.0 million and $17.0 million, respectively. There were no amounts outstanding at March 31, 2022 and December 31, 2021. The borrowing line is secured by liens on the Company’s construction and agricultural loan portfolios. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company terminated its status as a Subchapter S Corporation as of May 5, 2021, in connection with the IPO and became a taxable C Corporation. Prior to that date, as an S Corporation, the Company had no U.S. federal income tax expense. As such, any periods prior to May 5, 2021 will only reflect a state income tax rate and corresponding tax expense. Pro forma net income is calculated by adding back S Corporation tax to net income and using a combined C Corporation statutory tax rate for federal and state income taxes of 29.56%. For the 2022 period presented below, the tax rate reflects the actual effective tax rate for the three months ended March 31, 2022, as the Company was a C Corporation for the entire period. The following reconciliation table provides a detailed calculation of pro forma provision for income taxes: For the three months ended (in thousands) March 31, March 31, Net income before provision for income taxes $ 13,522 $ 10,660 Effective/pro forma tax rate 27.07 % 29.56 % Actual/pro forma provision for income taxes $ 3,660 $ 3,151 The provision for income tax for the three months ended March 31, 2022 and 2021 differs from the statutory federal rate of 21.00% due to the following items, which relate primarily to the Company’s conversion from an S Corporation to a C Corporation during the second quarter of 2021: For the three months ended (in thousands) March 31, March 31, Statutory U.S. federal income tax $ 2,840 $ 2,239 Increase (decrease) resulting from: Benefit of S Corporation status — (2,239) State taxes 1,157 382 Other (337) — Provision for income taxes $ 3,660 $ 382 For the three months ended March 31, 2022, the Company’s federal and state statutory tax rate, net of federal benefit, of 29.56%, differed from the statutory California tax rate of 3.50% used for the three months ended March 31, 2021 due to the termination of the Company's Subchapter S Corporation status as of May 5, 2021. |
Shareholders_ Equity
Shareholders’ Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Dividends On January 20, 2022, the board of directors declared a $0.15 per common share dividend, totaling $2.6 million. On March 17, 2022, based on the filing of the Company's final S Corporation tax return, the board of directors declared a $0.45 per common share dividend to shareholders of record as of May 3, 2021, totaling $4.9 million, which was the remaining balance of the Company's accumulated adjustments account, and is described in further detail in the Company’s Proxy Statement filed with the SEC and mailed to shareholders on April 6, 2022. Stock-Based Incentive Arrangement The Company’s stock-based compensation consists of RSAs granted under its historical stock-based incentive arrangement (the “Historical Incentive Plan”) and RSAs issued under the Five Star Bancorp 2021 Equity Incentive Plan (the "Equity Incentive Plan"). The Historical Incentive Plan consisted of RSAs for certain executive officers of the Company. The arrangement provided that these executive officers would receive shares of restricted common stock of the Company that vested over three years, with the number of shares granted based upon achieving certain performance objectives. These objectives included, but were not limited to, net income adjusted for the provision for loan losses, deposit growth, efficiency ratio, net interest margin, and asset quality. Compensation expense for RSAs granted under the Historical Incentive Plan is recognized over the service period, which is equal to the vesting period of the shares based on the fair value of the shares at issue date. In connection with its IPO in May 2021, the Company granted RSAs under the Equity Incentive Plan to employees, officers, executives, and non-employee directors. Shares granted to non-employee directors vested immediately upon grant, while shares granted to employees, officers, and executives vest ratably over three five The Company granted 22,201 and 9,454 restricted shares during the three months ended March 31, 2022 and 2021, respectively. In addition, 850 and 2,722 restricted shares were forfeited during the three months ended March 31, 2022 and 2021, respectively. Non-cash stock compensation expense recognized for the three months ended March 31, 2022 and 2021 was $0.3 million and $0.1 million, respectively. At March 31, 2022 and 2021, respectively, there were 138,856 and 6,296 unvested restricted shares. As of March 31, 2022, there was approximately $2.5 million of unrecognized compensation expense related to the 138,856 unvested restricted shares. The holders of unvested RSAs are entitled to dividends at the same per-share ratio as holders of common stock. Tax benefits for dividends paid on unvested RSAs are recorded as tax benefits in the consolidated statements of income with a corresponding decrease to current taxes payable. The impact of tax benefits for dividends paid on unvested restricted stock on the Company’s consolidated statements of income for the three months ended March 31, 2022 and 2021 was immaterial. The following table summarizes information about unvested restricted shares: For the three months ended March 31, 2022 2021 Shares Weighted Shares Weighted Beginning of the period balance 127,751 $ 19.95 11,568 $ 21.25 Shares granted 22,201 28.50 9,454 18.00 Shares vested (10,246) 24.85 (12,004) 20.45 Shares forfeited (850) 20.00 (2,722) 18.88 End of the period balance 138,856 $ 20.95 6,296 $ 18.91 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Substantially all of these commitments are at variable interest rates, based on an index, and have fixed expiration dates. Off-balance sheet risk to loan loss exists up to the face amount of these instruments, although material losses are not anticipated. The Company uses the same credit policies in making commitments to originate loans and lines of credit as it does for on-balance sheet instruments, including obtaining collateral at exercise of the commitment. The contractual amounts of unfunded loan commitments and standby letters of credit not reflected in the consolidated balance sheets are as follows: (in thousands) March 31, December 31, Commercial lines of credit $ 116,857 $ 137,354 Undisbursed construction loans 48,918 46,584 Undisbursed commercial real estate loans 65,592 47,793 Agricultural lines of credit 11,608 9,955 Undisbursed agricultural real estate loans 3,428 3,427 Other 3,040 3,764 Total commitments and standby letters of credit $ 249,443 $ 248,877 The Company records an allowance for loan losses on unfunded loan commitments at the consolidated balance sheet date based on estimates of the probability that these commitments will be drawn upon according to historical utilization experience of the different types of commitments and historical loss rates determined for pooled funded loans. The allowance for loan losses on unfunded commitments totaled $0.1 million as of March 31, 2022 and December 31, 2021, which is recorded in interest payable and other liabilities in the consolidated balance sheets. Concentrations of credit risk : The Company grants real estate mortgage, real estate construction, commercial, and consumer loans to customers primarily in Northern California. Although the Company has a diversified loan portfolio, a substantial portion is secured by commercial and residential real estate. In management’s judgment, a concentration of loans exists in real estate related loans, which represented approximately 91.98% of the Company’s loans held for investment at March 31, 2022 and 89.87% of the Company’s loans held for investment at December 31, 2021. Although management believes such concentrations have no more than the normal risk of collectability, a substantial decline in the economy in general, or a decline in real estate values in the Company’s primary market areas in particular, could have an adverse impact on the collectability of these loans. Personal and business incomes represent the primary source of repayment for the majority of these loans. Deposit concentrations : At March 31, 2022, the Company had 66 deposit relationships that exceeded $5.0 million each, totaling $1.2 billion, or approximately 46.75% of total deposits. The Company’s largest single deposit relationship at March 31, 2022 totaled $182.4 million, or approximately 7.29% of total deposits. Management maintains the Company’s liquidity position and lines of credit with correspondent banks to mitigate the risk of large withdrawals by this group of large depositors. Contingencies : The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company. Correspondent banking agreements : The Company maintains funds on deposit with other FDIC-insured financial institutions under correspondent banking agreements. Uninsured deposits through these agreements totaled $77.3 million and $147.2 million at March 31, 2022 and December 31, 2021, respectively. Litigation Matters The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn April 21, 2022, the board of directors declared a $0.15 per common share dividend, totaling $2.6 million. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation Five Star Bank (the “Bank”) was chartered on October 26, 1999 and began operations on December 20, 1999. Five Star Bancorp (“Bancorp” or the “Company”) was incorporated on September 16, 2002 and subsequently obtained approval from the Federal Reserve to be a bank holding company in connection with its acquisition of the Bank. The Company became the sole shareholder of the Bank on June 2, 2003 in a statutory merger, pursuant to which each outstanding share of the Bank’s common stock was exchanged for one share of common stock of the Company. The Company, through the Bank, provides financial services to customers who are predominately small and middle-market businesses, professionals, and individuals residing in the Northern California region. The Company's primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit, and its primary deposit products are checking accounts, savings accounts, money market accounts, and term certificate accounts. The Bank currently has seven branch offices in Roseville, Natomas, Rancho Cordova, Redding, Elk Grove, Chico, and Yuba City, and two loan production offices in Santa Rosa and Sacramento. The Company terminated its status as a Subchapter S corporation as of May 5, 2021, in connection with the Company’s Initial Public Offering (“IPO”) and became a taxable C Corporation. Prior to that date, as an S Corporation, the Company had no U.S. federal income tax expense. On April 9, 2021, the Company publicly filed a Registration Statement on Form S-1 with the SEC in connection with its IPO (the “Registration Statement”), which was subsequently amended on April 26, 2021 and May 3, 2021. The Registration Statement was declared effective by the SEC on May 4, 2021. In connection with the IPO, the Company issued 6,054,750 shares of common stock, no par value, which included 789,750 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $20.00 per share and began trading on the Nasdaq Global Select Market on May 5, 2021. On May 7, 2021, the closing date of the IPO, the Company received total net proceeds of $111.2 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $109.1 million. |
Basis of Financial Statement Presentation and Consolidation | Basis of Financial Statement Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Regulation S-X. These interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in shareholders’ equity, and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2021, and the notes thereto, as filed in the Company’s Annual Report on Form 10-K, which was filed with the SEC on February 25, 2022. The unaudited consolidated financial statements include Five Star Bancorp and its wholly owned subsidiary, Five Star Bank. All significant intercompany transactions and balances are eliminated in consolidation. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2022. While the Company’s chief decision-makers monitor the revenue streams of the various products and services, operations are managed, and financial performance is evaluated, on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry. |
Use of Estimates | Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited consolidated financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses is the most significant accounting estimate reflected in the Company’s consolidated financial statements. |
Earnings Per Share (“EPS”) | Earnings Per Share (“EPS”) Basic EPS is net income divided by the weighted average number of common shares outstanding during the period less average unvested restricted stock awards (“RSAs”). Diluted EPS includes the dilutive effect of additional potential common shares related to unvested RSAs using the treasury stock method. The Company has two forms of outstanding common stock: common stock and unvested RSAs. Holders of unvested RSAs receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings, and therefore the RSAs are considered participating securities. However, under the two-class method, the difference in EPS is not significant for these participating securities. Three months ended (in thousands, except per share data) March 31, March 31, Net income $ 9,862 $ 10,278 Weighted average basic common shares outstanding 17,102,508 10,998,041 Add: Dilutive effects of assumed vesting of restricted stock 62,011 — Weighted average diluted common shares outstanding 17,164,519 10,998,041 Income per common share: Basic EPS $ 0.58 $ 0.93 Diluted EPS $ 0.58 $ 0.93 During the three months ended March 31, 2022 and 2021, there were no outstanding stock options. Anti-dilutive shares, which are excluded from the dilutive EPS calculation, were deemed to be immaterial. |
Leases | The Company adopted ASU 2016-02, Leases (Topic 842) as of January 1, 2022, which requires the Company to record an ROUA on the consolidated balance sheets for those leases that convey rights to control use of identified assets for a period of time in exchange for consideration. The Company is also required to record a lease liability on the consolidated balance sheets for the present value of future payment commitments. All of the Company’s leases are comprised of operating leases in which the Company is the lessee of real estate property for branches and operations. The Company elected not to include short-term leases (i.e., leases with initial terms of 12 months or less) within the ROUA and lease liability. Known or determinable adjustments to the required minimum future lease payments were included in the calculation of the Company’s ROUA and lease liability. Adjustments to the required minimum future lease payments that are variable and will not be determinable until a future period, if any, such as changes in the Consumer Price Index, are included as variable lease costs. Additionally, expected variable payments for common area maintenance, taxes, and insurance were unknown and not determinable at lease commencement and, therefore, were not included in the determination of the Company’s ROUA or lease liability. The value of the ROUA and lease liability is impacted by the amount of the periodic payment required, length of the lease term, and the discount rate used to calculate the present value of the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROUA and lease liability. ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2022, the rate for the remaining lease term as of January 1, 2022 was used. The lease liability is reduced based on the discounted present value of remaining payments as of each reporting period. The ROUA value is measured using the lease liability as adjusted for prepaid or accrued lease payments and remaining lease incentives, unamortized direct costs, and impairment, if any. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share | Three months ended (in thousands, except per share data) March 31, March 31, Net income $ 9,862 $ 10,278 Weighted average basic common shares outstanding 17,102,508 10,998,041 Add: Dilutive effects of assumed vesting of restricted stock 62,011 — Weighted average diluted common shares outstanding 17,164,519 10,998,041 Income per common share: Basic EPS $ 0.58 $ 0.93 Diluted EPS $ 0.58 $ 0.93 |
Schedule of Pro Forma Earning Per Share | The following reconciliation table provides a detailed calculation of pro forma EPS: Three months ended (in thousands, except per share data) March 31, March 31, Net income before provision for income taxes - GAAP $ 13,522 $ 10,660 Less: Actual/pro forma provision for income taxes 3,660 3,151 Actual/pro forma net income $ 9,862 $ 7,509 Weighted average basic common shares outstanding 17,102,508 10,998,041 Add: Dilutive effects of assumed vesting of restricted stock 62,011 — Weighted average diluted common shares outstanding 17,164,519 10,998,041 Income per common share: Basic EPS (actual/pro forma) $ 0.58 $ 0.68 Diluted EPS (actual/pro forma) $ 0.58 $ 0.68 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table summarizes the Company’s assets and liabilities that were required to be recorded at fair value on a recurring basis. (in thousands) Carrying Quoted Prices in Significant Significant Measurement Categories: Changes in Fair Value Recorded In 1 March 31, 2022 Assets: Securities available-for-sale: U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds $ 134,813 $ — $ 134,813 $ — OCI Derivatives – interest rate swap 58 — 58 — NI Liabilities: Derivatives – interest rate swap 58 — 58 — NI December 31, 2021 Assets: Securities available-for-sale: U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds $ 148,807 $ — $ 148,807 $ — OCI Derivatives – interest rate swap 92 — 92 — NI Liabilities: Derivatives – interest rate swap 92 — 92 — NI 1 Other comprehensive income (“OCI”) or net income (“NI”). |
Summary of Fair Value Estimates for Financial Instruments by Balance Sheet Grouping | The table below is a summary of fair value estimates for financial instruments as of March 31, 2022 and December 31, 2021. The carrying amounts in the following table are recorded in the consolidated balance sheets under the indicated captions. Further, management has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements, such as BOLI. March 31, 2022 December 31, 2021 (in thousands) Carrying Fair Fair Value Carrying Fair Fair Value Financial assets: Cash and cash equivalents $ 504,964 $ 504,964 Level 1 $ 425,329 $ 425,329 Level 1 Time deposits in banks 14,464 14,464 Level 1 14,464 14,464 Level 1 Securities available-for-sale 134,813 134,813 Level 2 148,807 148,807 Level 2 Securities held-to-maturity 4,486 4,459 Level 3 4,946 5,197 Level 3 Loans held for sale 10,386 11,063 Level 2 10,671 11,217 Level 2 Loans held for investment, net of allowance for loan losses 2,056,254 1,993,626 Level 3 1,911,217 1,893,431 Level 3 FHLB stock and other investments 12,383 N/A N/A 12,464 N/A N/A Interest receivable 5,547 5,547 Level 2 5,332 5,332 Level 2 Interest rate swap 58 58 Level 2 92 92 Level 2 Financial liabilities: Deposits 2,503,092 2,349,536 Level 2 2,285,890 2,210,555 Level 2 Interest payable 79 79 Level 2 23 23 Level 2 Interest rate swap 58 58 Level 2 92 92 Level 2 Subordinated notes 28,403 28,403 Level 3 28,386 28,386 Level 3 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Debt Securities Held-to-maturity | A summary of the amortized cost and fair value related to securities held-to-maturity as of March 31, 2022 and December 31, 2021 is presented below. (in thousands) Gross Unrealized Amortized Gains (Losses) Fair March 31, 2022 Obligations of states and political subdivisions $ 4,486 $ — $ (27) $ 4,459 Total held-to-maturity $ 4,486 $ — $ (27) $ 4,459 December 31, 2021 Obligations of states and political subdivisions $ 4,946 $ 251 $ — $ 5,197 Total held-to-maturity $ 4,946 $ 251 $ — $ 5,197 |
Summary of Debt Securities Available-for-sale | A summary of the amortized cost and fair value related to securities available-for-sale as of March 31, 2022 and December 31, 2021 is presented below. (in thousands) Amortized Gross Unrealized Fair Gains (Losses) March 31, 2022 U.S. government agencies $ 18,241 $ 95 $ (257) $ 18,079 Mortgage-backed securities 79,694 8 (6,210) 73,492 Obligations of states and political subdivisions 44,621 23 (3,713) 40,931 Collateralized mortgage obligations 504 — (21) 483 Corporate bonds 2,000 — (172) 1,828 Total available-for-sale $ 145,060 $ 126 $ (10,373) $ 134,813 December 31, 2021 U.S. government agencies $ 19,824 $ 60 $ (202) $ 19,682 Mortgage-backed securities 82,517 94 (1,098) 81,513 Obligations of states and political subdivisions 44,732 525 (120) 45,137 Collateralized mortgage obligations 537 3 — 540 Corporate bonds 2,000 — (65) 1,935 Total available-for-sale $ 149,610 $ 682 $ (1,485) $ 148,807 |
Summary of Investment Debt Securities by Contractual Maturity | The amortized cost and fair value of investment debt securities by contractual maturity at March 31, 2022 and December 31, 2021 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties. (in thousands) March 31, 2022 December 31, 2021 Held-to-Maturity Available-for-Sale Held-to-Maturity Available-for-Sale Amortized Fair Value Amortized Fair Value Amortized Fair Value Amortized Fair Value Within one year $ 456 $ 454 $ — $ — $ 491 $ 516 $ — $ — After one but within five years 1,115 1,108 505 514 951 999 507 522 After five years through ten years 1,590 1,580 3,684 3,458 3,504 3,682 3,697 3,748 After ten years 1,325 1,317 40,432 36,959 — — 40,528 40,867 Investment securities not due at a single maturity date: U.S. government agencies — — 18,241 18,079 — — 19,824 19,682 Mortgage-backed securities — — 79,694 73,492 — — 82,517 81,513 Collateralized mortgage obligations — — 504 483 — — 537 540 Corporate bonds — — 2,000 1,828 — — 2,000 1,935 Total $ 4,486 $ 4,459 $ 145,060 $ 134,813 $ 4,946 $ 5,197 $ 149,610 $ 148,807 |
Schedule of Realized Gain (Loss) | Sales of investment securities and gross gains and losses are shown in the following table: (in thousands) For the three months ended March 31, March 31, Available-for-sale: Sales proceeds $ 1,623 $ 11,456 Gross realized gains 5 182 |
Schedule of Pledged Investment Securities | Pledged investment securities are shown in the following table: (in thousands) March 31, December 31, Pledged to the State of California: Secure deposits of public funds and borrowings $ 57,423 $ 63,363 Total pledged investment securities $ 57,423 $ 63,363 |
Schedule of Unrealized Losses and Fair Value of Available-for-sale Securities | The following table details the gross unrealized losses and fair values aggregated by investment category and length of time that individual available-for-sale securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021: (in thousands) < 12 continuous months ≥ 12 continuous months Total securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss March 31, 2022 U.S. government agencies $ 2,275 $ (77) $ 12,371 $ (180) $ 14,646 $ (257) Mortgage-backed securities 62,090 (5,122) 10,969 (1,088) 73,059 (6,210) Obligations of states and political subdivisions 37,803 (3,540) 1,791 (173) 39,594 (3,713) Collateralized mortgaged obligations 483 (21) — — 483 (21) Corporate bonds 1,828 (172) — — 1,828 (172) Total temporarily impaired securities $ 104,479 $ (8,932) $ 25,131 $ (1,441) $ 129,610 $ (10,373) December 31, 2021 U.S. government agencies $ — $ — $ 13,399 $ (202) $ 13,399 $ (202) Mortgage-backed securities 73,972 (1,046) 1,400 (52) 75,372 (1,098) Obligations of states and political subdivisions 14,014 (112) 407 (8) 14,421 (120) Corporate bonds 1,935 (65) — — 1,935 (65) Total temporarily impaired securities $ 89,921 $ (1,223) $ 15,206 $ (262) $ 105,127 $ (1,485) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents the balance of each major product type within the Company’s portfolio as of the dates indicated. (in thousands) March 31, December 31, Real estate: Commercial $ 1,760,551 $ 1,586,232 Commercial land and development 9,090 7,376 Commercial construction 59,293 54,214 Residential construction 5,540 7,388 Residential 28,921 28,562 Farmland 49,903 54,805 Commercial: Secured 124,930 137,062 Unsecured 22,599 21,136 Paycheck Protection Program (“PPP”) 1,528 22,124 Consumer and other 19,044 17,167 Subtotal 2,081,399 1,936,066 Less: Net deferred loan fees 1,241 1,606 Less: Allowance for loan losses 23,904 23,243 Loans held for investment, net of allowance for loan losses $ 2,056,254 $ 1,911,217 |
Summary of Credit Quality Indicators | The following table summarizes the credit quality indicators related to the Company’s loans by class as of March 31, 2022: (in thousands) Pass Watch Substandard Doubtful Total Real estate: Commercial $ 1,751,563 $ 8,087 $ 901 $ — $ 1,760,551 Commercial land and development 9,090 — — — 9,090 Commercial construction 53,393 5,900 — — 59,293 Residential construction 5,540 — — — 5,540 Residential 28,744 — 177 — 28,921 Farmland 49,903 — — — 49,903 Commercial: Secured 122,996 14 1,920 — 124,930 Unsecured 22,599 — — — 22,599 PPP 1,528 — — — 1,528 Consumer 19,032 — 12 — 19,044 Total $ 2,064,388 $ 14,001 $ 3,010 $ — $ 2,081,399 The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2021: (in thousands) Pass Watch Substandard Doubtful Total Real estate: Commercial $ 1,575,006 $ 1,970 $ 9,256 $ — $ 1,586,232 Commercial land and development 7,376 — — — 7,376 Commercial construction 48,288 5,926 — — 54,214 Residential construction 7,388 — — — 7,388 Residential 28,384 — 178 — 28,562 Farmland 54,805 — — — 54,805 Commercial: Secured 135,131 751 1,180 — 137,062 Unsecured 21,136 — — — 21,136 PPP 22,124 — — — 22,124 Consumer 17,167 — — — 17,167 Total $ 1,916,805 $ 8,647 $ 10,614 $ — $ 1,936,066 |
Summary of Age Analysis of Past Due Loans | The age analysis of past due loans by class as of March 31, 2022 consisted of the following: (in thousands) Past Due 30-89 Greater Than Total Past Current Total Loans Real estate: Commercial $ — $ — $ — $ 1,760,551 $ 1,760,551 Commercial land and development — — — 9,090 9,090 Commercial construction — — — 59,293 59,293 Residential construction — — — 5,540 5,540 Residential — — — 28,921 28,921 Farmland — — — 49,903 49,903 Commercial: Secured 422 — 422 124,508 124,930 Unsecured — — — 22,599 22,599 PPP — — — 1,528 1,528 Consumer and other 127 — 127 18,917 19,044 Total $ 549 $ — $ 549 $ 2,080,850 $ 2,081,399 The age analysis of past due loans by class as of December 31, 2021 consisted of the following: (in thousands) Past Due Total Past Current Total Loans 30-89 Greater Than Real estate: Commercial $ — $ — $ — $ 1,586,232 $ 1,586,232 Commercial land and development — — — 7,376 7,376 Commercial construction — — — 54,214 54,214 Residential construction — — — 7,388 7,388 Residential — — — 28,562 28,562 Farmland — — — 54,805 54,805 Commercial: Secured — — — 137,062 137,062 Unsecured — — — 21,136 21,136 PPP — — — 22,124 22,124 Consumer and other 334 — 334 16,833 17,167 Total $ 334 $ — $ 334 $ 1,935,732 $ 1,936,066 |
Schedule of Impaired Loans | Information related to impaired loans as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 (in thousands) Recorded Unpaid Related Recorded Unpaid Related With no related allowance recorded: Real estate: Commercial $ 118 $ 118 $ — $ 122 $ 122 $ — Residential 177 177 — 178 178 — Commercial: Secured 111 111 — 116 116 — Consumer and other 12 12 — — — — $ 418 $ 418 $ — $ 416 $ 416 $ — With an allowance recorded: Commercial: Secured $ 922 $ 922 $ 639 $ 172 $ 172 $ 172 $ 922 $ 922 $ 639 $ 172 $ 172 $ 172 Total by category: Real estate: Commercial $ 118 $ 118 $ — $ 122 $ 122 $ — Residential 177 177 — 178 178 — Commercial: Secured 1,033 1,033 639 288 288 172 Consumer and other 12 12 — — — — Total impaired loans $ 1,340 $ 1,340 $ 639 $ 588 $ 588 $ 172 No collateral dependent loans were in process of foreclosure at March 31, 2022 or December 31, 2021. Information related to impaired loans for the three months ended March 31, 2022 and 2021 consisted of the following: Three months ended March 31, 2022 March 31, 2021 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate: Commercial $ 120 $ — $ 136 $ — Residential 178 — 182 — Commercial: Secured 174 — 129 — Consumer and other 25 — — — $ 497 $ — $ 447 $ — With an allowance recorded: Commercial: Secured $ 947 $ — $ — $ — Consumer and other — — 36 — $ 947 $ — $ 36 $ — Total by category: Real estate: Commercial $ 120 $ — $ 136 $ — Residential 178 — 182 — Commercial: Secured 1,121 — 129 — Consumer and other 25 — 36 — Total impaired loans $ 1,444 $ — $ 483 $ — |
Schedule of Non-accrual Loans | Non-accrual loans, segregated by class, are as follows as of March 31, 2022 and December 31, 2021: (in thousands) March 31, December 31, Real estate: Commercial $ 118 $ 122 Residential 177 178 Commercial: Secured 1,033 288 Total non-accrual loans $ 1,328 $ 588 |
Disclosure of Activity in the Allowance For Loan Losses | The following table discloses activity in the allowance for loan losses for the periods presented. Real Estate Commercial (in thousands) Comml Comml Comml Resid Resid Farm- Secured Unsec PPP Consu Unal Total Three months ended March 31, 2022 Beginning balance $ 12,869 $ 50 $ 371 $ 50 $ 192 $ 645 $ 6,859 $ 207 $ — $ 889 $ 1,111 $ 23,243 Charge-offs — — — — — — (309) — — (67) — (376) Recoveries — — — — — — 46 — — 41 — 87 Provision (recapture) 999 16 59 (10) 16 (34) 443 39 — 225 (803) 950 Ending balance $ 13,868 $ 66 $ 430 $ 40 $ 208 $ 611 $ 7,039 $ 246 $ — $ 1,088 $ 308 $ 23,904 Three months ended March 31, 2021 Beginning balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 Charge-offs — — — — — — (255) — — — — (255) Recoveries — — — — — — 87 — — 50 — 137 Provision (recapture) 861 3 (317) (30) (32) (37) (390) 16 — (82) 208 200 Ending balance $ 10,219 $ 80 $ 504 $ 57 $ 188 $ 578 $ 8,918 $ 195 $ — $ 600 $ 932 $ 22,271 The following table summarizes the allocation of the allowance for loan losses by impairment methodology for the periods presented. Real Estate Commercial (in thousands) Comml Comml Comml Resid Resid Farm- Secured Unsec PPP Consu Unal Total As of March 31, 2022: Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ 639 $ — $ — $ — $ — $ 639 Loans collectively evaluated for impairment 13,868 66 430 40 208 611 6,400 246 — 1,088 308 23,265 Ending balance $ 13,868 $ 66 $ 430 $ 40 $ 208 $ 611 $ 7,039 $ 246 $ — $ 1,088 $ 308 $ 23,904 Loans: Ending balance individually evaluated for impairment $ 118 $ — $ — $ — $ 177 $ — $ 1,034 $ — $ — $ 12 $ — $ 1,341 Ending balance collectively evaluated for impairment 1,760,433 9,090 59,293 5,540 28,744 49,903 123,896 22,599 1,528 19,032 — 2,080,058 Ending balance $ 1,760,551 $ 9,090 $ 59,293 $ 5,540 $ 28,921 $ 49,903 $ 124,930 $ 22,599 $ 1,528 $ 19,044 $ — $ 2,081,399 As of December 31, 2021: Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ 172 $ — $ — $ — $ — $ 172 Loans collectively evaluated for impairment 12,869 50 371 50 192 645 6,687 207 — 889 1,111 23,071 Ending balance $ 12,869 $ 50 $ 371 $ 50 $ 192 $ 645 $ 6,859 $ 207 $ — $ 889 $ 1,111 $ 23,243 Loans: Ending balance individually evaluated for impairment $ 122 $ — $ — $ — $ 178 $ — $ 288 $ — $ — $ — $ — $ 588 Ending balance collectively evaluated for impairment 1,586,110 7,376 54,214 7,388 28,384 54,805 136,774 21,136 22,124 17,167 — 1,935,478 Ending balance $ 1,586,232 $ 7,376 $ 54,214 $ 7,388 $ 28,562 $ 54,805 $ 137,062 $ 21,136 $ 22,124 $ 17,167 $ — $ 1,936,066 |
Interest-Bearing Deposits (Tabl
Interest-Bearing Deposits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Interest-bearing Deposits | |
Schedule of Interest-Bearing Deposits. | Interest-bearing deposits consisted of the following as of March 31, 2022 and December 31, 2021: (in thousands) March 31, December 31, Savings $ 92,370 $ 88,536 Money market 919,281 912,558 Interest checking 371,122 278,406 Time, $250 or more 152,877 77,868 Other time 26,157 26,404 Total interest-bearing deposits $ 1,561,807 $ 1,383,772 |
Time Deposit Maturities | As of March 31, 2022, scheduled maturities of time deposits for the next five years were as follows: (in thousands) 2022 $ 177,996 2023 599 2024 438 2025 — 2026 1 Total time deposits $ 179,034 |
Schedule of Composition of Network Deposits | The composition of network deposits as of March 31, 2022 and December 31, 2021 was as follows: (in thousands) March 31, December 31, CDARS $ 22,160 $ 22,411 ICS 327,384 307,636 Total network deposits $ 349,544 $ 330,047 |
Interest Expense Recognized on Interest-Bearing Deposits | Interest expense recognized on interest-bearing deposits for periods ended March 31, 2022, and 2021 consisted of the following: Three months ended (in thousands) March 31, March 31, Savings $ 25 $ 15 Money market 367 582 Interest checking 70 38 Time, $250 or more 59 7 Other time 24 57 Total interest expense on interest-bearing deposits $ 545 $ 699 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table presents the components of lease expense for the three months ended March 31, 2022: (in thousands) Three months ended March 31, 2022 Operating lease cost $ 285 Short-term lease cost — Variable lease cost — Sublease income (5) Total lease cost $ 280 |
Schedule of Weighted Average Lease Term and Discount Rate | The following table presents the weighted average operating lease term and discount rate at March 31, 2022: March 31, 2022 Weighted average remaining lease term (in years) 5.87 years Weighted average discount rate 2.14 % |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table shows the future expected operating lease payments under the Company's operating lease agreements as of March 31, 2022: (in thousands) 2022 $ 803 2023 1,009 2024 984 2025 767 2026 665 Thereafter 1,107 Total expected operating lease payments 5,335 Discount for present value of expected cash flows (348) Lease liability at March 31, 2022 $ 4,987 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Pro Forma Provision of Income Taxes | The following reconciliation table provides a detailed calculation of pro forma provision for income taxes: For the three months ended (in thousands) March 31, March 31, Net income before provision for income taxes $ 13,522 $ 10,660 Effective/pro forma tax rate 27.07 % 29.56 % Actual/pro forma provision for income taxes $ 3,660 $ 3,151 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income tax for the three months ended March 31, 2022 and 2021 differs from the statutory federal rate of 21.00% due to the following items, which relate primarily to the Company’s conversion from an S Corporation to a C Corporation during the second quarter of 2021: For the three months ended (in thousands) March 31, March 31, Statutory U.S. federal income tax $ 2,840 $ 2,239 Increase (decrease) resulting from: Benefit of S Corporation status — (2,239) State taxes 1,157 382 Other (337) — Provision for income taxes $ 3,660 $ 382 |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Nonvested Restricted Stock Shares | The following table summarizes information about unvested restricted shares: For the three months ended March 31, 2022 2021 Shares Weighted Shares Weighted Beginning of the period balance 127,751 $ 19.95 11,568 $ 21.25 Shares granted 22,201 28.50 9,454 18.00 Shares vested (10,246) 24.85 (12,004) 20.45 Shares forfeited (850) 20.00 (2,722) 18.88 End of the period balance 138,856 $ 20.95 6,296 $ 18.91 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Other Commitments | The contractual amounts of unfunded loan commitments and standby letters of credit not reflected in the consolidated balance sheets are as follows: (in thousands) March 31, December 31, Commercial lines of credit $ 116,857 $ 137,354 Undisbursed construction loans 48,918 46,584 Undisbursed commercial real estate loans 65,592 47,793 Agricultural lines of credit 11,608 9,955 Undisbursed agricultural real estate loans 3,428 3,427 Other 3,040 3,764 Total commitments and standby letters of credit $ 249,443 $ 248,877 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | May 07, 2021 | May 05, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock, price per share (in usd per share) | $ 20 | |||
Proceeds from issuance initial public offering | $ 111.2 | |||
Sale of stock, consideration received on transaction | $ 109.1 | |||
Effective/pro forma tax rate | 29.56% | 27.07% | 29.56% | |
IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares sold (in shares) | 6,054,750 | |||
Over-Allotment Option | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares sold (in shares) | 789,750 |
Basis of Presentation - Earning
Basis of Presentation - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net income | $ 9,862 | $ 10,278 |
Weighted average basic common shares outstanding (in shares) | 17,102,508 | 10,998,041 |
Add: Dilutive effects of assumed vesting of restricted stock (in shares) | 62,011 | 0 |
Weighted average diluted common shares outstanding (in shares) | 17,164,519 | 10,998,041 |
Income per common share: | ||
Basic EPS (in USD per share) | $ 0.58 | $ 0.93 |
Diluted EPS (in USD per share) | $ 0.58 | $ 0.93 |
Basis of Presentation - Pro For
Basis of Presentation - Pro Forma EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net income before provision for income taxes - GAAP | $ 13,522 | $ 10,660 |
Less: Actual/pro forma provision for income taxes | 3,660 | 3,151 |
Actual/pro forma net income | $ 9,862 | $ 7,509 |
Weighted average basic common shares outstanding (in shares) | 17,102,508 | 10,998,041 |
Add: Dilutive effects of assumed vesting of restricted stock (in shares) | 62,011 | 0 |
Weighted average diluted common shares outstanding (in shares) | 17,164,519 | 10,998,041 |
Income per common share: | ||
Basic EPS (actual/pro forma) (in USD per share) | $ 0.58 | $ 0.68 |
Diluted EPS (actual/pro forma) (in USD per share) | $ 0.58 | $ 0.68 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 134,813 | $ 148,807 |
Carrying Value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 134,813 | 148,807 |
Assets: | U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 134,813 | 148,807 |
Assets: | U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Assets: | U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 134,813 | 148,807 |
Assets: | U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Assets: | Derivatives – interest rate swap | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate swap | 58 | 92 |
Assets: | Derivatives – interest rate swap | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate swap | 0 | 0 |
Assets: | Derivatives – interest rate swap | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate swap | 58 | 92 |
Assets: | Derivatives – interest rate swap | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate swap | 0 | 0 |
Liabilities: | Derivatives – interest rate swap | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate swap | 58 | 92 |
Liabilities: | Derivatives – interest rate swap | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate swap | 0 | 0 |
Liabilities: | Derivatives – interest rate swap | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate swap | 58 | 92 |
Liabilities: | Derivatives – interest rate swap | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives – interest rate swap | $ 0 | $ 0 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Fair Value Estimates for Financial Instruments by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Securities available-for-sale, at fair value | $ 134,813 | $ 148,807 |
Securities held-to-maturity | 4,459 | 5,197 |
Carrying Amounts | ||
Financial assets: | ||
Cash and cash equivalents | 504,964 | 425,329 |
Time deposits in banks | 14,464 | 14,464 |
Securities available-for-sale, at fair value | 134,813 | 148,807 |
Securities held-to-maturity | 4,486 | 4,946 |
Loans held for sale | 10,386 | 10,671 |
Loans held for investment, net of allowance for loan losses | 2,056,254 | 1,911,217 |
FHLB stock and other investments | 12,383 | 12,464 |
Interest receivable | 5,547 | 5,332 |
Interest rate swap | 58 | 92 |
Financial liabilities: | ||
Deposits | 2,503,092 | 2,285,890 |
Interest payable | 79 | 23 |
Interest rate swap | 58 | 92 |
Subordinated notes | 28,403 | 28,386 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 504,964 | 425,329 |
Time deposits in banks | 14,464 | 14,464 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale, at fair value | 134,813 | 148,807 |
Loans held for sale | 11,063 | 11,217 |
Interest receivable | 5,547 | 5,332 |
Interest rate swap | 58 | 92 |
Financial liabilities: | ||
Deposits | 2,349,536 | 2,210,555 |
Interest payable | 79 | 23 |
Interest rate swap | 58 | 92 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities held-to-maturity | 4,459 | 5,197 |
Loans held for investment, net of allowance for loan losses | 1,993,626 | 1,893,431 |
Financial liabilities: | ||
Subordinated notes | $ 28,403 | $ 28,386 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Securities Held-to-maturity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Marketable Securities [Line Items] | ||
Securities held-to-maturity, at carrying value | $ 4,486 | $ 4,946 |
Gross unrealized gains | 0 | 251 |
Gross unrealized losses | (27) | 0 |
Securities held-to-maturity | 4,459 | 5,197 |
Obligations of states and political subdivisions | ||
Marketable Securities [Line Items] | ||
Securities held-to-maturity, at carrying value | 4,486 | 4,946 |
Gross unrealized gains | 0 | 251 |
Gross unrealized losses | (27) | 0 |
Securities held-to-maturity | $ 4,459 | $ 5,197 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value of Securities Available-for-sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 145,060 | $ 149,610 |
Gross unrealized gains | 126 | 682 |
Gross unrealized losses | (10,373) | (1,485) |
Fair Value | 134,813 | 148,807 |
U.S. government agencies | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 18,241 | 19,824 |
Gross unrealized gains | 95 | 60 |
Gross unrealized losses | (257) | (202) |
Fair Value | 18,079 | 19,682 |
Mortgage-backed securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 79,694 | 82,517 |
Gross unrealized gains | 8 | 94 |
Gross unrealized losses | (6,210) | (1,098) |
Fair Value | 73,492 | 81,513 |
Obligations of states and political subdivisions | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 44,621 | 44,732 |
Gross unrealized gains | 23 | 525 |
Gross unrealized losses | (3,713) | (120) |
Fair Value | 40,931 | 45,137 |
Collateralized mortgage obligations | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 504 | 537 |
Gross unrealized gains | 0 | 3 |
Gross unrealized losses | (21) | 0 |
Fair Value | 483 | 540 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 2,000 | 2,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (172) | (65) |
Fair Value | $ 1,828 | $ 1,935 |
Investment Securities - Amort_3
Investment Securities - Amortized Cost and Fair Value of Investment Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Within one year | $ 456 | $ 491 |
After one but within five years | 1,115 | 951 |
After five years through ten years | 1,590 | 3,504 |
After ten years | 1,325 | 0 |
Fair Value | ||
Within one year | 454 | 516 |
After one but within five years | 1,108 | 999 |
After five years through ten years | 1,580 | 3,682 |
After ten years | 1,317 | 0 |
Amortized Cost | ||
Within one year | 0 | 0 |
After one but within five years | 505 | 507 |
After five years through ten years | 3,684 | 3,697 |
After ten years | 40,432 | 40,528 |
Fair Value | ||
Within one year | 0 | 0 |
After one but within five years | 514 | 522 |
After five years through ten years | 3,458 | 3,748 |
After ten years | 36,959 | 40,867 |
Securities held-to-maturity, at carrying value | 4,486 | 4,946 |
Securities held-to-maturity | 4,459 | 5,197 |
Securities available-for-sale, at amortized cost | 145,060 | 149,610 |
Securities available-for-sale, at fair value | 134,813 | 148,807 |
U.S. government agencies | ||
Fair Value | ||
Securities held-to-maturity, at carrying value | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Securities available-for-sale, at amortized cost | 18,241 | 19,824 |
Securities available-for-sale, at fair value | 18,079 | 19,682 |
Mortgage-backed securities | ||
Fair Value | ||
Securities held-to-maturity, at carrying value | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Securities available-for-sale, at amortized cost | 79,694 | 82,517 |
Securities available-for-sale, at fair value | 73,492 | 81,513 |
Collateralized mortgage obligations | ||
Fair Value | ||
Securities held-to-maturity, at carrying value | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Securities available-for-sale, at amortized cost | 504 | 537 |
Securities available-for-sale, at fair value | 483 | 540 |
Corporate bonds | ||
Fair Value | ||
Securities held-to-maturity, at carrying value | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Securities available-for-sale, at amortized cost | 2,000 | 2,000 |
Securities available-for-sale, at fair value | $ 1,828 | $ 1,935 |
Investment Securities - Sales o
Investment Securities - Sales of Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sales proceeds | $ 1,623 | $ 11,456 |
Gross realized gains | $ 5 | $ 182 |
Investment Securities - Pledged
Investment Securities - Pledged Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Total pledged investment securities | $ 57,423 | $ 63,363 |
CALIFORNIA | ||
Total pledged investment securities | $ 57,423 | $ 63,363 |
Investment Securities - Availab
Investment Securities - Available-for-sale Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Less than twelve continuous months, fair value | $ 104,479 | $ 89,921 |
Less than twelve continuous months, unrealized loss | (8,932) | (1,223) |
Twelve continuous months or longer, fair value | 25,131 | 15,206 |
Twelve continuous months or longer, unrealized loss | (1,441) | (262) |
Total securities in a loss position, fair value | 129,610 | 105,127 |
Total securities in a loss position, unrealized loss | (10,373) | (1,485) |
U.S. government agencies | ||
Marketable Securities [Line Items] | ||
Less than twelve continuous months, fair value | 2,275 | 0 |
Less than twelve continuous months, unrealized loss | (77) | 0 |
Twelve continuous months or longer, fair value | 12,371 | 13,399 |
Twelve continuous months or longer, unrealized loss | (180) | (202) |
Total securities in a loss position, fair value | 14,646 | 13,399 |
Total securities in a loss position, unrealized loss | (257) | (202) |
Mortgage-backed securities | ||
Marketable Securities [Line Items] | ||
Less than twelve continuous months, fair value | 62,090 | 73,972 |
Less than twelve continuous months, unrealized loss | (5,122) | (1,046) |
Twelve continuous months or longer, fair value | 10,969 | 1,400 |
Twelve continuous months or longer, unrealized loss | (1,088) | (52) |
Total securities in a loss position, fair value | 73,059 | 75,372 |
Total securities in a loss position, unrealized loss | (6,210) | (1,098) |
Obligations of states and political subdivisions | ||
Marketable Securities [Line Items] | ||
Less than twelve continuous months, fair value | 37,803 | 14,014 |
Less than twelve continuous months, unrealized loss | (3,540) | (112) |
Twelve continuous months or longer, fair value | 1,791 | 407 |
Twelve continuous months or longer, unrealized loss | (173) | (8) |
Total securities in a loss position, fair value | 39,594 | 14,421 |
Total securities in a loss position, unrealized loss | (3,713) | (120) |
Collateralized mortgage obligations | ||
Marketable Securities [Line Items] | ||
Less than twelve continuous months, fair value | 483 | |
Less than twelve continuous months, unrealized loss | (21) | |
Twelve continuous months or longer, fair value | 0 | |
Twelve continuous months or longer, unrealized loss | 0 | |
Total securities in a loss position, fair value | 483 | |
Total securities in a loss position, unrealized loss | (21) | |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Less than twelve continuous months, fair value | 1,828 | 1,935 |
Less than twelve continuous months, unrealized loss | (172) | (65) |
Twelve continuous months or longer, fair value | 0 | 0 |
Twelve continuous months or longer, unrealized loss | 0 | 0 |
Total securities in a loss position, fair value | 1,828 | 1,935 |
Total securities in a loss position, unrealized loss | $ (172) | $ (65) |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)security$ / shares | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)security | |
Marketable Securities [Line Items] | |||
Number of securities in unrealized loss positions | security | 150 | 91 | |
Number of investment securities in a continuous loss position for twelve months or more | security | 24 | ||
Investment securities in a loss position for less than twelve months | 126 | ||
Held-to-maturity securities in a continuous loss position for twelve months or less | security | 1 | 0 | |
FHLB stock price (in USD per share) | $ / shares | $ 100 | ||
FHLB Stock | $ 6,667 | $ 6,723 | |
Investment interest rate | 6.00% | ||
Noninterest income | $ 2,185 | $ 1,616 | |
FHLB stock dividends | 100 | $ 78 | |
Investment in Federal Home Loan Bank Stock | |||
Marketable Securities [Line Items] | |||
FHLB stock dividends | $ 102 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)loanborrowingRelationship | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Financing Receivable, Past Due [Line Items] | |||
Loans held for investment, net of allowance for loan losses | $ 2,056,254,000 | $ 1,911,217,000 | |
Loans greater than 90 days past due | 0 | 0 | |
Interest income related to non-accrual loans | $ 18,300 | $ 6,800 | |
Number of borrowing relationships, subject to deferment, CARES act | borrowingRelationship | 6 | ||
Number of loans, subject to deferment, CARES act | loan | 6 | ||
Loans and leases receivable, subject to deferment, CARES act | $ 12,200,000 | ||
Pledged loans | 1,200,000,000 | 941,200,000 | |
Total commitments and standby letters of credit | 249,443,000 | 248,877,000 | |
Unfunded Loan Commitment | Affiliated Entity | |||
Financing Receivable, Past Due [Line Items] | |||
Total commitments and standby letters of credit | 8,900,000 | 9,700,000 | |
FHLB of San Francisco | |||
Financing Receivable, Past Due [Line Items] | |||
Pledged loans | 29,700,000 | 33,400,000 | |
60 - 89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Loans between 60-89 days past due | $ 0 | $ 0 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Balance of Each Major Product Type (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | $ 2,081,399 | $ 1,936,066 | ||
Less: Net deferred loan fees | 1,241 | 1,606 | ||
Less: Allowance for loan losses | 23,904 | 23,243 | $ 22,271 | $ 22,189 |
Loans held for investment, net of allowance for loan losses | 2,056,254 | 1,911,217 | ||
Commercial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 1,760,551 | 1,586,232 | ||
Less: Allowance for loan losses | 13,868 | 12,869 | 10,219 | 9,358 |
Commercial land and development | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 9,090 | 7,376 | ||
Less: Allowance for loan losses | 66 | 50 | 80 | 77 |
Commercial construction | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 59,293 | 54,214 | ||
Less: Allowance for loan losses | 430 | 371 | 504 | 821 |
Residential construction | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 5,540 | 7,388 | ||
Less: Allowance for loan losses | 40 | 50 | 57 | 87 |
Residential | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 28,921 | 28,562 | ||
Less: Allowance for loan losses | 208 | 192 | 188 | 220 |
Farmland | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 49,903 | 54,805 | ||
Less: Allowance for loan losses | 611 | 645 | 578 | 615 |
Secured | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 124,930 | 137,062 | ||
Less: Allowance for loan losses | 7,039 | 6,859 | 8,918 | 9,476 |
Unsecured | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 22,599 | 21,136 | ||
Less: Allowance for loan losses | 246 | 207 | 195 | 179 |
Paycheck Protection Program (“PPP”) | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 1,528 | 22,124 | ||
Less: Allowance for loan losses | 0 | 0 | 0 | 0 |
Consumer and other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans held for investment | 19,044 | 17,167 | ||
Less: Allowance for loan losses | $ 1,088 | $ 889 | $ 600 | $ 632 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Credit Quality Indicators Related to the Company’s Loans by Class (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 2,081,399 | $ 1,936,066 |
Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,064,388 | 1,916,805 |
Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 14,001 | 8,647 |
Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,010 | 10,614 |
Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,760,551 | 1,586,232 |
Commercial | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,751,563 | 1,575,006 |
Commercial | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 8,087 | 1,970 |
Commercial | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 901 | 9,256 |
Commercial | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial land and development | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 9,090 | 7,376 |
Commercial land and development | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 9,090 | 7,376 |
Commercial land and development | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial land and development | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial land and development | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 59,293 | 54,214 |
Commercial construction | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 53,393 | 48,288 |
Commercial construction | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,900 | 5,926 |
Commercial construction | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,540 | 7,388 |
Residential construction | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,540 | 7,388 |
Residential construction | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential construction | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential construction | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 28,921 | 28,562 |
Residential | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 28,744 | 28,384 |
Residential | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 177 | 178 |
Residential | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 49,903 | 54,805 |
Farmland | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 49,903 | 54,805 |
Farmland | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Farmland | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Farmland | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Secured | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 124,930 | 137,062 |
Secured | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 122,996 | 135,131 |
Secured | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 14 | 751 |
Secured | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,920 | 1,180 |
Secured | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Unsecured | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 22,599 | 21,136 |
Unsecured | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 22,599 | 21,136 |
Unsecured | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Unsecured | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Unsecured | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Paycheck Protection Program (“PPP”) | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,528 | 22,124 |
Paycheck Protection Program (“PPP”) | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,528 | 22,124 |
Paycheck Protection Program (“PPP”) | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Paycheck Protection Program (“PPP”) | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Paycheck Protection Program (“PPP”) | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 19,044 | 17,167 |
Consumer and other | Pass | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 19,032 | 17,167 |
Consumer and other | Watch | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Consumer and other | Substandard | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 12 | 0 |
Consumer and other | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Age Analysis of Past Due Loans by Class (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 2,081,399 | $ 1,936,066 |
30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 549 | 334 |
Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 549 | 334 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,080,850 | 1,935,732 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,760,551 | 1,586,232 |
Commercial | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,760,551 | 1,586,232 |
Commercial land and development | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 9,090 | 7,376 |
Commercial land and development | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial land and development | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial land and development | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial land and development | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 9,090 | 7,376 |
Commercial construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 59,293 | 54,214 |
Commercial construction | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 59,293 | 54,214 |
Residential construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,540 | 7,388 |
Residential construction | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential construction | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,540 | 7,388 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 28,921 | 28,562 |
Residential | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 28,921 | 28,562 |
Farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 49,903 | 54,805 |
Farmland | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Farmland | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Farmland | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Farmland | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 49,903 | 54,805 |
Secured | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 124,930 | 137,062 |
Secured | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 422 | 0 |
Secured | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Secured | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 422 | 0 |
Secured | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 124,508 | 137,062 |
Unsecured | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 22,599 | 21,136 |
Unsecured | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Unsecured | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Unsecured | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Unsecured | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 22,599 | 21,136 |
Paycheck Protection Program (“PPP”) | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,528 | 22,124 |
Paycheck Protection Program (“PPP”) | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Paycheck Protection Program (“PPP”) | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Paycheck Protection Program (“PPP”) | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Paycheck Protection Program (“PPP”) | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,528 | 22,124 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 19,044 | 17,167 |
Consumer and other | 30-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 127 | 334 |
Consumer and other | Greater Than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Consumer and other | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 127 | 334 |
Consumer and other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 18,917 | $ 16,833 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | $ 418 | $ 416 | |
Recorded Investment, With an allowance recorded | 922 | 172 | |
Recorded Investment, Total | 1,340 | 588 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 418 | 416 | |
Unpaid Principal Balance, With an allowance recorded | 922 | 172 | |
Unpaid Principal Balance, Total | 1,340 | 588 | |
Related Allowance | 639 | 172 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 497 | $ 447 | |
Average Recorded Investment, With an allowance recorded | 947 | 36 | |
Average Recorded Investment, Total | 1,444 | 483 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |
Interest Income Recognized, With an allowance recorded | 0 | 0 | |
Interest Income Recognized, Total | 0 | 0 | |
Commercial | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 118 | 122 | |
Recorded Investment, Total | 118 | 122 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 118 | 122 | |
Unpaid Principal Balance, Total | 118 | 122 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 120 | 136 | |
Average Recorded Investment, Total | 120 | 136 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |
Interest Income Recognized, Total | 0 | 0 | |
Residential | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 177 | 178 | |
Recorded Investment, Total | 177 | 178 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 177 | 178 | |
Unpaid Principal Balance, Total | 177 | 178 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 178 | 182 | |
Average Recorded Investment, Total | 178 | 182 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |
Interest Income Recognized, Total | 0 | 0 | |
Secured | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 111 | 116 | |
Recorded Investment, With an allowance recorded | 922 | 172 | |
Recorded Investment, Total | 1,033 | 288 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 111 | 116 | |
Unpaid Principal Balance, With an allowance recorded | 922 | 172 | |
Unpaid Principal Balance, Total | 1,033 | 288 | |
Related Allowance | 639 | 172 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 174 | 129 | |
Average Recorded Investment, With an allowance recorded | 947 | 0 | |
Average Recorded Investment, Total | 1,121 | 129 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |
Interest Income Recognized, With an allowance recorded | 0 | 0 | |
Interest Income Recognized, Total | 0 | 0 | |
Consumer and other | |||
Recorded Investment | |||
Recorded Investment, With no related allowance recorded | 12 | 0 | |
Recorded Investment, Total | 12 | 0 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 12 | 0 | |
Unpaid Principal Balance, Total | 12 | 0 | |
Related Allowance | 0 | $ 0 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 25 | 0 | |
Average Recorded Investment, With an allowance recorded | 0 | 36 | |
Average Recorded Investment, Total | 25 | 36 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |
Interest Income Recognized, With an allowance recorded | 0 | 0 | |
Interest Income Recognized, Total | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Non-accrual Loans Segregated by Class (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | $ 1,328 | $ 588 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 118 | 122 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 177 | 178 |
Secured | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | $ 1,033 | $ 288 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 23,243 | $ 22,189 | |
Charge-offs | (376) | (255) | |
Recoveries | 87 | 137 | |
Provision (recapture) | 950 | 200 | |
Ending balance | 23,904 | 22,271 | |
Loans individually evaluated for impairment | 639 | $ 172 | |
Loans collectively evaluated for impairment | 23,265 | 23,071 | |
Ending balance | 23,904 | 23,243 | |
Loans: | |||
Ending balance individually evaluated for impairment | 1,341 | 588 | |
Ending balance collectively evaluated for impairment | 2,080,058 | 1,935,478 | |
Loans held for investment | 2,081,399 | 1,936,066 | |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 12,869 | 9,358 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | 999 | 861 | |
Ending balance | 13,868 | 10,219 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 13,868 | 12,869 | |
Ending balance | 13,868 | 12,869 | |
Loans: | |||
Ending balance individually evaluated for impairment | 118 | 122 | |
Ending balance collectively evaluated for impairment | 1,760,433 | 1,586,110 | |
Loans held for investment | 1,760,551 | 1,586,232 | |
Commercial land and development | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 50 | 77 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | 16 | 3 | |
Ending balance | 66 | 80 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 66 | 50 | |
Ending balance | 66 | 50 | |
Loans: | |||
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 9,090 | 7,376 | |
Loans held for investment | 9,090 | 7,376 | |
Commercial construction | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 371 | 821 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | 59 | (317) | |
Ending balance | 430 | 504 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 430 | 371 | |
Ending balance | 430 | 371 | |
Loans: | |||
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 59,293 | 54,214 | |
Loans held for investment | 59,293 | 54,214 | |
Residential construction | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 50 | 87 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | (10) | (30) | |
Ending balance | 40 | 57 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 40 | 50 | |
Ending balance | 40 | 50 | |
Loans: | |||
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 5,540 | 7,388 | |
Loans held for investment | 5,540 | 7,388 | |
Residential | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 192 | 220 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | 16 | (32) | |
Ending balance | 208 | 188 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 208 | 192 | |
Ending balance | 208 | 192 | |
Loans: | |||
Ending balance individually evaluated for impairment | 177 | 178 | |
Ending balance collectively evaluated for impairment | 28,744 | 28,384 | |
Loans held for investment | 28,921 | 28,562 | |
Farmland | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 645 | 615 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | (34) | (37) | |
Ending balance | 611 | 578 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 611 | 645 | |
Ending balance | 611 | 645 | |
Loans: | |||
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 49,903 | 54,805 | |
Loans held for investment | 49,903 | 54,805 | |
Secured | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 6,859 | 9,476 | |
Charge-offs | (309) | (255) | |
Recoveries | 46 | 87 | |
Provision (recapture) | 443 | (390) | |
Ending balance | 7,039 | 8,918 | |
Loans individually evaluated for impairment | 639 | 172 | |
Loans collectively evaluated for impairment | 6,400 | 6,687 | |
Ending balance | 7,039 | 6,859 | |
Loans: | |||
Ending balance individually evaluated for impairment | 1,034 | 288 | |
Ending balance collectively evaluated for impairment | 123,896 | 136,774 | |
Loans held for investment | 124,930 | 137,062 | |
Unsecured | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 207 | 179 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | 39 | 16 | |
Ending balance | 246 | 195 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 246 | 207 | |
Ending balance | 246 | 207 | |
Loans: | |||
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 22,599 | 21,136 | |
Loans held for investment | 22,599 | 21,136 | |
Paycheck Protection Program (“PPP”) | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | 0 | 0 | |
Ending balance | 0 | 0 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 0 | 0 | |
Ending balance | 0 | 0 | |
Loans: | |||
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 1,528 | 22,124 | |
Loans held for investment | 1,528 | 22,124 | |
Consumer and other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 889 | 632 | |
Charge-offs | (67) | 0 | |
Recoveries | 41 | 50 | |
Provision (recapture) | 225 | (82) | |
Ending balance | 1,088 | 600 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 1,088 | 889 | |
Ending balance | 1,088 | 889 | |
Loans: | |||
Ending balance individually evaluated for impairment | 12 | 0 | |
Ending balance collectively evaluated for impairment | 19,032 | 17,167 | |
Loans held for investment | 19,044 | 17,167 | |
Unallocated | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,111 | 724 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision (recapture) | (803) | 208 | |
Ending balance | 308 | $ 932 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 308 | 1,111 | |
Ending balance | 308 | 1,111 | |
Loans: | |||
Ending balance individually evaluated for impairment | 0 | 0 | |
Ending balance collectively evaluated for impairment | 0 | 0 | |
Loans held for investment | $ 0 | $ 0 |
Interest Bearing Deposits - Int
Interest Bearing Deposits - Interest-Bearing Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Interest-bearing Deposits | ||
Savings | $ 92,370 | $ 88,536 |
Money market | 919,281 | 912,558 |
Interest checking | 371,122 | 278,406 |
Time, $250 or more | 152,877 | 77,868 |
Other time | 26,157 | 26,404 |
Total interest-bearing deposits | $ 1,561,807 | $ 1,383,772 |
Interest Bearing Deposits - Mat
Interest Bearing Deposits - Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Interest-bearing Deposits | ||
2022 | $ 177,996 | |
2023 | 599 | |
2024 | 438 | |
2025 | 0 | |
2026 | 1 | |
Total time deposits | $ 179,034 | $ 104,300 |
Interest Bearing Deposits - Com
Interest Bearing Deposits - Composition of Network Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Total network deposits | $ 349,544 | $ 330,047 |
CDARS | ||
Total network deposits | 22,160 | 22,411 |
ICS | ||
Total network deposits | $ 327,384 | $ 307,636 |
Interest Bearing Deposits - I_2
Interest Bearing Deposits - Interest Expense Recognized on Interest-bearing Deposits (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest-bearing Deposits | ||
Savings | $ 25,000 | $ 15,000 |
Money market | 367,000 | 582,000 |
Interest checking | 70,000 | 38,000 |
Time deposits minimum | 250,000 | |
Time, $250 or more | 59,000 | 7,000 |
Other time | 24,000 | 57,000 |
Total interest expense on interest-bearing deposits | $ 545,000 | $ 699,000 |
Interest-Bearing Deposits - Nar
Interest-Bearing Deposits - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Interest-bearing Deposits | ||
Interest-bearing domestic deposit, time deposits | $ 179,034 | $ 104,300 |
Related party deposit liabilities | $ 39,600 | $ 32,400 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Rent expense | $ 100,000 | |
Operating lease, rent income | 5,200 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Rent expense | $ 300,000 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal options term | 0 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal options term | 5 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 285 |
Short-term lease cost | 0 |
Variable lease cost | 0 |
Sublease income | (5) |
Total lease cost | $ 280 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Term and Discount Rate (Details) | Mar. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term (in years) | 5 years 10 months 13 days |
Weighted average discount rate (percent) | 2.14% |
Leases - Future Operating Lease
Leases - Future Operating Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 803 | |
2023 | 1,009 | |
2024 | 984 | |
2025 | 767 | |
2026 | 665 | |
Thereafter | 1,107 | |
Total expected operating lease payments | 5,335 | |
Discount for present value of expected cash flows | (348) | |
Operating lease liability | $ 4,987 | $ 0 |
Long Term Debt and Other Borr_2
Long Term Debt and Other Borrowings (Details) | Nov. 08, 2019USD ($) | Sep. 28, 2017USD ($) | Mar. 31, 2022USD ($)federalFundcorrespondentBank | Dec. 31, 2021USD ($)federalFundcorrespondentBank |
Debt Instrument [Line Items] | ||||
Subordinated notes, net | $ 28,403,000 | $ 28,386,000 | ||
Line of credit | $ 0 | $ 0 | ||
Number of unsecured federal funds | federalFund | 5 | 5 | ||
Number of correspondent banks | correspondentBank | 5 | 5 | ||
Number of unsecured federal funds with an increase in line of credit | federalFund | 1 | |||
Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 600,000 | |||
Amortization, debt issuance costs | $ 300,000 | |||
Subordinated Debt | Fixed-to-floating Rate Subordinated Notes Issued Nov 2019 | ||||
Debt Instrument [Line Items] | ||||
Subordinated notes, net | $ 3,800,000 | |||
Interest rate | 5.50% | |||
Floating interest rate | 4.38% | |||
Subordinated Debt | Fixed-to-floating Rate Subordinated Notes Issued Nov 2019 | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.544% | |||
Subordinated Debt | Fixed-to-floating Rate Subordinated Notes Issued Sep 2017 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 25,000,000 | |||
Floating interest rate | 4.88% | |||
Subordinated Debt | Fixed-to-floating Rate Subordinated Notes Issued Sep 2017 | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 4.044% | |||
Subordinated Debt | Entity Controlled by Member of Board of Directors and Three Shareholders | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 8,000,000 | |||
Subordinated Debt | Subordinated Notes Maturity Date of September 15, 2027 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.00% | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 855,900,000 | $ 696,300,000 | ||
Letters of credit amount | 495,500,000 | 420,500,000 | ||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit | 0 | 0 | ||
Remaining borrowing capacity | 360,400,000 | 275,800,000 | ||
Line of Credit | Secure State of California Deposits | ||||
Debt Instrument [Line Items] | ||||
Letters of credit amount | 155,500,000 | 80,500,000 | ||
Line of Credit | Secure Local Agency Deposit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit amount | 340,000,000 | 340,000,000 | ||
Line of Credit | Federal Reserve Discount Window | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 18,000,000 | 17,000,000 | ||
Line of credit outstanding | 0 | 0 | ||
Line of Credit | Unsecured Federal Funds Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit | 160,000,000 | $ 150,000,000 | ||
Increase to line of credit | $ 10,000,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | May 05, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Income Tax Disclosure [Abstract] | |||
Effective/pro forma tax rate | 29.56% | 27.07% | 29.56% |
Income Taxes - Pro Forma Provis
Income Taxes - Pro Forma Provision For Income Taxes (Details) - USD ($) $ in Thousands | May 05, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Income Tax Disclosure [Abstract] | |||
Net income before provision for income taxes | $ 13,522 | $ 10,660 | |
Effective/pro forma tax rate | 29.56% | 27.07% | 29.56% |
Actual/pro forma provision for income taxes | $ 3,660 | $ 3,151 |
Income Taxes - Provision For In
Income Taxes - Provision For Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory U.S. federal income tax | $ 2,840 | $ 2,239 |
Benefit of S Corporation status | 0 | (2,239) |
State taxes | 1,157 | 382 |
Other | (337) | 0 |
Provision for income taxes | $ 3,660 | $ 382 |
Shareholders_ Equity - Narrativ
Shareholders’ Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 17, 2022 | Jan. 20, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock declared (in USD per share) | $ 0.45 | $ 0.15 | ||
Dividends payable | $ 4,900 | $ 2,600 | ||
Grants in period (in shares) | 22,201 | 9,454 | ||
Stock compensation expense for employee and directors | $ 300 | $ 100 | ||
Unvested restricted shares (in shares) | 138,856 | 6,296 | ||
Unrecognized compensation expense | $ 2,500 | |||
Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense for employee and directors | $ 169 | $ 62 | ||
Employee | Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, payment award, vesting period (in years) | 5 years | |||
Employee | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, payment award, vesting period (in years) | 3 years | |||
Employee | Maximum | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, payment award, vesting period (in years) | 7 years | |||
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense for employee and directors | $ 108 | $ 0 | ||
Director | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, payment award, vesting period (in years) | 1 year | |||
Director | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, payment award, vesting period (in years) | 3 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 22,201 | 9,454 | ||
Forfeited in period (in shares) | 850 | 2,722 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Unvested Shares Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shares | ||
Grants in period (in shares) | 22,201 | 9,454 |
Restricted Stock | ||
Shares | ||
Beginning of the period balance (in shares) | 127,751 | 11,568 |
Grants in period (in shares) | 22,201 | 9,454 |
Vested in Period (in shares) | (10,246) | (12,004) |
Forfeited in period (in shares) | (850) | (2,722) |
End of the period balance (in shares) | 138,856 | 6,296 |
Weighted Average Grant Date Fair Value | ||
Beginning of the period balance (in USD per share) | $ 19.95 | $ 21.25 |
Shares granted (in USD per share) | 28.50 | 18 |
Shares vested (in USD per share) | 24.85 | 20.45 |
Shares forfeited (in USD per share) | 20 | 18.88 |
End of the period balance (in USD per share) | $ 20.95 | $ 18.91 |
Commitments and Contingencies -
Commitments and Contingencies - Unfunded Loan Commitments and Standby Letters of Credit (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | $ 249,443 | $ 248,877 |
Commercial lines of credit | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 116,857 | 137,354 |
Undisbursed construction loans | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 48,918 | 46,584 |
Undisbursed commercial real estate loans | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 65,592 | 47,793 |
Agricultural lines of credit | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 11,608 | 9,955 |
Undisbursed agricultural real estate loans | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 3,428 | 3,427 |
Other | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | $ 3,040 | $ 3,764 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)depositRelationship | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Other Commitments [Line Items] | ||||
Allowance for loan losses | $ 22,271,000 | $ 23,904,000 | $ 23,243,000 | $ 22,189,000 |
Real estate related loans percentage | 91.98% | 89.87% | ||
Number of deposits | depositRelationship | 66 | |||
Deposits over five million, total | $ 5,000,000 | |||
Deposits over five million, amount | $ 1,200,000,000 | |||
Percentage of deposits over five million deposits | 46.75% | |||
Largest single deposit | $ 182,400,000 | |||
Percentage of largest single deposit to total deposits | 7.29% | |||
Uninsured amount | $ 77,300,000 | $ 147,200,000 | ||
Rent expense | 100,000 | |||
Operating lease, rent income | $ 5,200 | |||
Unfunded Loan Commitment | ||||
Other Commitments [Line Items] | ||||
Allowance for loan losses | $ 100,000 | $ 100,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Apr. 21, 2022 | Mar. 17, 2022 | Jan. 20, 2022 |
Subsequent Event [Line Items] | |||
Common stock declared (in USD per share) | $ 0.45 | $ 0.15 | |
Dividends payable | $ 4,900 | $ 2,600 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock declared (in USD per share) | $ 0.15 | ||
Dividends payable | $ 2,600 |