Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-40379 | ||
Entity Registrant Name | FIVE STAR BANCORP | ||
Entity Central Index Key | 0001275168 | ||
Entity Tax Identification Number | 75-3100966 | ||
Entity Incorporation, State or Country Code | CA | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 300,600 | ||
Entity Common Stock, Shares Outstanding | 17,246,549 | ||
Auditor Name | Moss Adams LLP | ||
Auditor Location | San Francisco, California | ||
Auditor Firm ID | 659 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from financial institutions | $ 136,074 | $ 46,028 |
Interest-bearing deposits in banks | 289,255 | 244,465 |
Cash and cash equivalents | 425,329 | 290,493 |
Time deposits in banks | 14,464 | 23,705 |
Securities available-for-sale, at fair value | 148,807 | 114,949 |
Securities held-to-maturity, at amortized cost (fair value of $5,197 and $8,755 at December 31, 2021 and 2020, respectively) | 4,946 | 7,979 |
Loans held for sale | 10,671 | 4,820 |
Loans held for investment, net of allowance for loan losses of $23,243 and $22,189 at December 31, 2021 and 2020, respectively | 1,911,217 | 1,480,970 |
Federal Home Loan Bank of San Francisco (“FHLB”) stock | 6,723 | 6,232 |
Premises and equipment, net | 1,773 | 1,663 |
Bank-owned life insurance (“BOLI”) | 11,203 | 8,662 |
Interest receivable and other assets | 21,628 | 14,292 |
Assets | 2,556,761 | 1,953,765 |
Deposits | ||
Non-interest-bearing | 902,118 | 701,079 |
Interest-bearing | 1,383,772 | 1,082,922 |
Total deposits | 2,285,890 | 1,784,001 |
Subordinated notes, net | 28,386 | 28,320 |
Interest payable and other liabilities | 7,439 | 7,669 |
Total liabilities | 2,321,715 | 1,819,990 |
Shareholders’ equity | ||
Preferred stock, no par value; 10,000,000 shares authorized; zero issued and outstanding at December 31, 2021 and 2020, respectively | ||
Common stock, no par value; 100,000,000 shares authorized; 17,224,848 shares issued and outstanding at December 31, 2021; 11,000,273 shares issued and outstanding at December 31, 2020 | 218,444 | 110,082 |
Retained earnings | 17,168 | 22,348 |
Accumulated other comprehensive (loss) income, net | (566) | 1,345 |
Total shareholders’ equity | 235,046 | 133,775 |
Liabilities and Shareholders Equity | $ 2,556,761 | $ 1,953,765 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Debt Securities, Held-to-maturity, Fair Value | $ 5,197 | $ 8,755 |
Loans and Leases Receivable, Allowance | $ 23,243 | $ 22,189 |
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 17,224,848 | 11,000,273 |
Common Stock, Shares, Outstanding | 17,224,848 | 11,000,273 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income | ||
Loans, including fees | $ 78,894 | $ 71,405 |
Taxable securities | 1,321 | 1,287 |
Nontaxable securities | 821 | 500 |
Interest-bearing deposits in other banks | 547 | 1,198 |
Interest and dividend income | 81,583 | 74,390 |
Interest expense | ||
Deposits | 2,199 | 7,407 |
Subordinated notes | 1,773 | 1,773 |
Interest expense | 3,972 | 9,180 |
Net interest income | 77,611 | 65,210 |
Provision for loan losses | 1,700 | 9,000 |
Net interest income after provision for loan losses | 75,911 | 56,210 |
Non-interest income | ||
Service charges on deposit accounts | 424 | 367 |
Net gain on sale of securities | 724 | 1,438 |
Gain on sale of loans | 4,082 | 4,145 |
Loan-related fees | 639 | 2,309 |
FHLB stock dividends | 372 | 321 |
Earnings on BOLI | 237 | 220 |
Other | 802 | 502 |
Noninterest Income | 7,280 | 9,302 |
Non-interest expense | ||
Salaries and employee benefits | 19,825 | 16,084 |
Occupancy and equipment | 1,938 | 1,715 |
Data processing and software | 2,494 | 1,982 |
Federal Deposit Insurance Corporation (“FDIC”) insurance | 700 | 1,137 |
Professional services | 3,792 | 1,960 |
Advertising and promotional | 1,300 | 1,102 |
Loan-related expenses | 1,045 | 732 |
Other operating expenses | 4,949 | 3,545 |
Noninterest expense | 36,043 | 28,257 |
Income before provision for income taxes | 47,148 | 37,255 |
Provision for income taxes | 4,707 | 1,327 |
Net income | $ 42,441 | $ 35,928 |
Basic earnings per share | $ 2.83 | $ 3.57 |
Diluted earnings per share | $ 2.83 | $ 3.57 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Net income | $ 42,441 | $ 35,928 |
Net unrealized holding (loss) gain on securities available-for-sale during the period | (1,475) | 2,860 |
Reclassification adjustment for net realized gains included in net income | (724) | (1,438) |
Income tax (benefit) expense related to other comprehensive (loss) income | (288) | 51 |
Other comprehensive (loss) income | (1,911) | 1,371 |
Total comprehensive income | $ 40,530 | $ 37,299 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 96,114 | $ 12,789 | $ (26) | $ 108,877 |
Beginning Balance, Shares at Dec. 31, 2019 | 9,674,875 | |||
Net income | 35,928 | 35,928 | ||
Other comprehensive loss | 1,371 | 1,371 | ||
Stock offering | $ 12,500 | 12,500 | ||
Stock offering, Shares | 1,250,000 | |||
Stock issued under stock award plans | ||||
Stock issued under stock award plans, Shares | 9,398 | |||
Stock compensation expense | $ 316 | 316 | ||
Director stock compensation expense | $ 252 | 252 | ||
Director stock compensation expense, Shares | 16,000 | |||
Common stock issued | $ 900 | 900 | ||
Common stock issued, Shares | 50,000 | |||
Cash dividends paid ($4.55 per share) | (26,369) | (26,369) | ||
Ending balance, value at Dec. 31, 2020 | $ 110,082 | 22,348 | 1,345 | 133,775 |
Ending Balance, Shares at Dec. 31, 2020 | 11,000,273 | |||
Net income | 42,441 | 42,441 | ||
Other comprehensive loss | (1,911) | (1,911) | ||
Stock offering | $ 111,243 | 111,243 | ||
Stock offering, Shares | 6,054,750 | |||
Stock issued under stock award plans | ||||
Stock issued under stock award plans, Shares | 132,707 | |||
Stock compensation expense | $ 594 | 594 | ||
Director stock compensation expense | $ 846 | 846 | ||
Director stock compensation expense, Shares | 41,640 | |||
Restricted stock forfeitures | ||||
Stock forfeitures, Shares | (4,522) | |||
Reclassification of retained deficit | $ (4,321) | 4,321 | ||
Cash dividends paid ($4.55 per share) | (51,942) | (51,942) | ||
Ending balance, value at Dec. 31, 2021 | $ 218,444 | $ 17,168 | $ (566) | $ 235,046 |
Ending Balance, Shares at Dec. 31, 2021 | 17,224,848 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 4.55 | $ 2.63 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 42,441 | $ 35,928 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,700 | 9,000 |
Loans originated for sale | (48,169) | (98,399) |
Gain on sale of loans | (4,082) | (4,145) |
Proceeds from sale of loans | 43,024 | 108,149 |
Net gain on sale of securities | (724) | (1,438) |
Earnings on BOLI | (237) | (220) |
Stock compensation expense | 594 | 316 |
Director stock compensation expense | 846 | 252 |
Change in deferred loan fees | (1,689) | 2,367 |
Amortization and accretion of security premiums and discounts | 1,561 | 1,138 |
Amortization of subordinated notes issuance costs | 66 | 67 |
Depreciation and amortization | 607 | 461 |
Deferred taxes | (4,001) | (143) |
Net changes in: | ||
Interest receivable and other assets | (3,050) | (3,548) |
Interest payable and other liabilities | (230) | 1,690 |
Net cash provided by operating activities | 28,657 | 51,475 |
Cash flows from investing activities: | ||
Proceeds from sale of securities available-for-sale | 47,096 | 46,406 |
Maturities, prepayments, and calls of securities available-for-sale | 18,732 | 16,118 |
Purchases of securities available-for-sale | (99,686) | (97,571) |
Increase (decrease) in time deposits in banks | 9,241 | (3,761) |
Loan originations, net of repayments | (426,882) | (330,837) |
Purchase of premises and equipment | (717) | (833) |
Purchase of FHLB stock | (491) | (1,152) |
Purchase of BOLI | (2,304) | (1,000) |
Net cash used in investing activities | (455,011) | (372,630) |
Cash flows from financing activities: | ||
Net change in deposits | 501,889 | 472,251 |
Proceeds from issuance of common stock | 111,243 | 13,400 |
FHLB repayment | (25,000) | |
Cash dividends paid | (51,942) | (26,369) |
Net cash provided by financing activities | 561,190 | 434,282 |
Net change in cash and cash equivalents | 134,836 | 113,127 |
Cash and cash equivalents at beginning of period | 290,493 | 177,366 |
Cash and cash equivalents at end of period | 425,329 | 290,493 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 4,505 | 9,713 |
Income taxes paid | 10,450 | 1,655 |
Supplemental disclosure of noncash investing and financing activities: | ||
Transfer from loans held for investment to loans held for sale | 4,820 | 6,527 |
Unrealized (loss) gain on securities | (2,199) | 1,422 |
Disposal of premises and equipment | 515 | |
Reclassification of retained deficit | $ 4,321 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
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 Board of Governors of the Federal Reserve System (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 a broad range of banking products and services to customers who are predominately small and medium-sized businesses, professionals, and individuals primarily in the Northern California region. Its primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit. 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. The Company publicly filed a Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with its IPO (the “Registration Statement”), which was declared effective by the SEC on May 4, 2021. In connection with the IPO, the Company issued 6,054,750 20.00 111,243,000 109,082,000 Basis of Financial Statement Presentation and Consolidation The accompanying 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. The 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. 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 a smaller reporting company, and, as such, may take advantage of specified reduced reporting requirements 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 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. Other estimates include fair value measurements, valuation of servicing assets, and deferred tax asset valuation. Cash and Cash Equivalents The Company defines cash and cash equivalents as cash, due from financial institutions, interest-bearing deposits in banks with short term original maturities, and federal funds sold. Generally, federal funds are sold for one-day periods, if at all. At times throughout the year, balances can exceed FDIC insurance limits. The Company has not experienced any historical losses associated with balances maintained with financial institutions in excess of FDIC insurance limits, and management continues to monitor the financial condition of the major financial institutions where these funds are held. Securities Available-for-Sale Available-for-sale securities consist of bonds, notes, and debentures not classified as trading securities or held-to-maturity securities. Securities are classified as available-for-sale if the Company intends and has the ability to hold those securities for a period of time, but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Securities available-for-sale are carried at fair value. Unrealized holding gains or losses are included in other comprehensive income as a separate component of shareholders’ equity, net of tax. Realized gains or losses, determined based on the cost of specific securities sold, are included in earnings. Premiums are amortized over the life of the security, or if a callable bond, over the earliest call date, and discounts are accreted over the life of the related investment security as an adjustment to interest income using the effective interest method. Interest income is recognized when earned. Investments with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates, or both. At each consolidated financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other-than-temporary. Various factors are considered in the assessment, including the nature of the investment, the cause of the impairment, the severity and duration of the impairment, credit ratings, and other credit-related factors such as third-party guarantees and volatility of the security’s fair value. This assessment also includes a determination as to whether the Company intends to sell the security, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an other-than-temporary impairment (“OTTI”) write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. For debt securities that are considered to be OTTI and that the Company does not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, the amount of impairment is separated into the amount that is credit-related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is calculated as the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of the future expected cash flows is deemed to be due to factors that are not credit-related and is recognized in other comprehensive income. Securities Held-to-Maturity Securities are classified as held-to-maturity if the Company has both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost adjusted for amortization of premium to the earliest callable call date and accretion of discount, computed by the effective interest method over the life of the related investment. Loans and Allowance for Loan Losses Loans are reported at the principal amount outstanding, net of deferred loan fees and costs and the allowance for loan losses. Interest on loans is accrued daily based on the principal outstanding. Loan fees, net of certain direct costs of origination, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. During the years ended December 31, 2021 and 2020, salaries and employee benefits totaling $ 5,198,000 3,194,000 Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Accrual of interest on loans is discontinued either when reasonable doubt exists as to the full and timely collection of interest or principal or when a loan becomes contractually past due by 90 days or more with respect to interest or principal. When a loan is placed on non-accrual status, all interest previously accrued, but not collected, is reversed against current period interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The allowance for loan losses represents the estimated probable incurred loan losses in the Company’s loan portfolio. The allowance for loan losses is established through a provision for loan losses charged to operations. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries of previously charged off amounts, if any, are credited to the allowance for loan losses. The allowance for loan losses is evaluated on a regular basis by management and is based on management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The Audit Committee of the board of directors reviews the adequacy of the allowance at least quarterly. The allowance consists of: (i) specific allowances for individually identified impaired loans (ASC 310-10, Receivables Contingencies – Loss Contingencies The first component, specific allowances, results from the analysis of identified problem credits and the evaluation of sources of repayment, including collateral, as applicable. Through management’s ongoing credit monitoring process, individual loans are identified that have conditions indicating the borrower may be unable to pay all amounts due in accordance with contractual terms. These loans are evaluated for impairment individually by management. Management considers an originated loan to be impaired when it is probable that collection of all amounts due according to the contractual terms of the loan agreement is unlikely. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Interest income is recognized on impaired loans in the same manner as non-accrual loans. When the fair value of the impaired loan is less than the recorded investment in the loan, the difference is recorded as an impairment through the establishment of a specific allowance. For loans determined to be impaired, the extent of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at origination, based on the loan’s observable market price, or based on the fair value of the collateral if the loan is collateral dependent or if foreclosure is imminent. Generally, with problem credits that are collateral dependent, management obtains appraisals of the collateral at least annually. Appraisals may be obtained more frequently if management believes the collateral value is subject to market volatility, if a specific event has occurred to the collateral, or if the Company believes foreclosure is imminent. The second component, general allowances, is an estimate of the probable inherent losses in each loan pool with similar risk characteristics. This analysis encompasses the entire loan portfolio, excluding individually identified impaired loans. The model determines general allowances by loan segment based on quantitative (loss history) and qualitative risk factors. The third component, unallocated allowances, is maintained to cover other uncertainties that could affect management’s estimate of probable losses. The unallocated allowances reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. While management believes the best information available is used to determine the allowance for loan losses, the results of operations could be significantly affected if circumstances differ substantially from the assumptions used in determining the allowance. A decline in local and national economic conditions, or significant changes in other assumptions, could result in a material increase in the allowance for loan losses and may adversely affect the Company’s financial condition and results of operations. While the Company believes the estimates and assumptions used in the determination of the adequacy of the allowance for loan losses are reasonable, there can be no assurance that such estimates and assumptions will not be proved incorrect in the future, that the actual amounts of future provisions will not exceed the amounts of past provisions, or that any increased provisions that may be required will not adversely impact the financial condition and results of operations of the Company. The Company considers a loan to be a troubled debt restructure (“TDR”) when the Company has granted a concession and the borrower is experiencing financial difficulty. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. A TDR loan generally is kept on non-accrual status until, among other criteria, the borrower has paid for six consecutive months with no payment defaults, at which time the TDR may be placed back on accrual status. In conjunction with the passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as well as the revised interagency guidance issued in April 2020, the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by the Coronavirus (Revised),” banks have been provided the option, for loans meeting specific criteria, to temporarily suspend certain requirements under GAAP related to TDRs for a limited time to account for the effects of COVID-19. As a result, the Company has not recognized eligible COVID-19 loan modifications as TDRs. The CARES Act, as amended by the Consolidated Appropriations Act, specified that COVID-19 related loan modifications executed between March 1, 2020 and the earlier of: (i) 60 days after the date of termination of the national emergency declared by the President; and (ii) January 1, 2022, on loans that were current as of December 31, 2019 are not TDRs. Additionally, loans qualifying for these modifications are not required to be reported as delinquent, non-accrual, impaired, or criticized solely as a result of a COVID-19 loan modification. Federal Home Loan Bank Stock Federal Home Loan Bank stock represents the Company’s investment in the stock of the Federal Home Loan Bank of San Francisco (“FHLB”) and is carried at par value. While technically these are considered equity securities, there is no market for the FHLB stock. Therefore, the shares are considered as other investment securities. Management periodically evaluates FHLB stock for OTTI. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as: (i) the significance of any decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted; (ii) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (iii) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (iv) the liquidity position of the FHLB. Both cash and stock dividends are reported as non-interest income. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives using a straight-line basis. The normal estimated lives used in determining depreciation are as follows: Schedule of Useful Life of Premises and Equipment Equipment 3 12 years Furniture and Fixtures 5 10 years Leasehold Improvements 5 15 years Automobiles 3 5 years Leasehold improvements are amortized over the lesser of the useful life of the asset or the remaining term of the lease. The straight-line method of depreciation is followed for all assets for financial reporting purposes, but accelerated methods are used for tax purposes. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. Other Real Estate Real estate properties acquired through, or in lieu of, loan foreclosure, are classified as other real estate owned (OREO), are to be sold and are initially recorded at fair value of the property at the date of foreclosure less estimated selling costs. Any write-downs in value are recorded against the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed, and any revisions in the estimate of fair value are reported as adjustments to the carrying value of the real estate, provided the adjusted carrying amount does not exceed the original amount at foreclosure. Subsequent valuation adjustments are recognized as OREO write-downs. Revenues and expenses incurred from OREO property management are recorded in non-interest income and non-interest expense, respectively. During 2021 and 2020, the Bank did not foreclose on any loans. BOLI BOLI is recorded at the amount that can be realized under the insurance contract at the consolidated balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Increases in contract value are recorded as non-interest income, and insurance proceeds received are recorded as a reduction of the contract value. Long-Term Assets Premises, equipment, and other long-term assets are reviewed for impairment when events indicate that their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are adjusted to reflect their fair value. Equity Investments Equity investments with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Equity investments without readily determinable fair values are carried at cost, less impairment, if any, and adjusted for changes resulting from observable price changes in orderly transactions for the identical or similar investment. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Transfers of Financial Assets Transfers of an entire financial asset, a group of financial assets, or a participating interest in an entire financial asset, are accounted for as sales when control has been relinquished. Control is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of more than trivial conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Included in the loan portfolio are loans guaranteed by the Small Business Administration (“SBA”), the Farm Service Agency (“FSA”), the Federal Agriculture Mortgage Corporation (“Farmer Mac”) and the United States Department of Agriculture (“USDA”), of which the guaranteed portion is expected to be sold in the secondary market in exchange for a one-time premium. At the time the guaranteed portion of the loan is sold, the unguaranteed portion and related right to service the entire loan is retained with the Company, to earn future servicing income. The loans held for sale are accounted for at the lower of cost or fair value, using the aggregate method. Government guaranteed loans held for sale totaled $ 10,671,000 4,820,000 Servicing rights acquired through the origination of loans, which are subsequently sold with servicing rights retained, are recognized as separate assets or liabilities. Servicing assets and liabilities are initially recorded at fair value and are subsequently amortized in proportion to, and over the period of, the related net servicing income or expense. The amortized assets are assessed for impairment or increased obligations at the loan level, based on the fair value on a periodic basis. Loan Commitments and Related Financial Instruments Financial instruments include off-balance-sheet credit instruments, such as commitments to make loans, and financial standby letters of credit issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. 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. Reserves for unfunded commitments are included as a component of Interest payable and other liabilities on the consolidated balance sheets. Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards (“RSAs”) issued to executives, directors, and employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the grant date fair value of stock options, while the fair value of the Company’s common stock at the date of grant is used for RSAs. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Supplemental Executive Retirement Plan The Bank has entered into a non-qualified retirement plan for the Chief Executive Officer based on a continuation of employment. The present value of annual post-retirement payments is allocated to expense over the years of required service. Income Taxes The Company has historically elected to be taxed for U. S. federal income tax purposes as an S Corporation. In conjunction with the IPO, the Company filed consents from the requisite amount of shareholders to revoke its S Corporation election with the Internal Revenue Service (the “IRS”), resulting in the commencement of taxation as a C Corporation for U.S. federal and California state income tax purposes in the second quarter of fiscal year 2021. Upon termination of the Company’s S Corporation status, the Company commenced paying U.S. federal income tax and a higher California state income tax on taxable earnings for each year (including the short year beginning on the date the Company’s status as an S Corporation terminated). As a result of the termination of S Corporation status, deferred tax assets and liabilities were recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of the change in tax rates resulting from becoming a C Corporation was recognized in net income in the year ended December 31, 2021. The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Company accounts for uncertain tax positions in accordance with FASB ASC Topic No. 740, Accounting for Uncertainty in Income Taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood greater than 50% of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Derivatives All derivative instruments are recorded at fair value. If derivative instruments are designated as hedges of fair values, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges, if any, are recorded in other comprehensive income or loss and reclassified to earnings when the hedged transaction is reflected in earnings. Comprehensive Income or Loss Comprehensive income or loss consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available-for-sale, net of tax, which are also recognized as separate components of shareholders’ equity. 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 RSAs. Diluted EPS includes the dilutive effect of additional potential common shares related to unvested RSAs using the treasury stock method. During the years ended December 31, 2021 and 2020, there were no outstanding stock options. The Company has two forms of outstanding common stock: common stock and unvested RSAs. Following the Company’s IPO, holders of unvested RSAs receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings; therefore the RSAs are considered participating securities. However, under the two-class method, the difference in EPS is not significant for these participating securities. Schedule of Earning Per Share (in thousands, except share and per share data) 2021 2020 Net income $ 42,441 $ 35,928 Weighted average basic common shares outstanding 14,972,637 10,063,183 Add: Dilutive effects of assumed vesting of restricted stock 22,576 — Weighted average diluted common shares outstanding 14,995,213 10,063,183 Income per common share: Basic EPS $ 2.83 $ 3.57 Diluted EPS $ 2.83 $ 3.57 Anti-dilutive shares, which are excluded from the dilutive EPS calculation, were deemed to be immaterial. For the year ended December 31, 2020, 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 year ended December 31, 2021, pro forma EPS is calculated by applying an effective tax rate of 19.80%, which is the actual effective tax rate, excluding the effects of the discrete deferred tax adjustment of $4,638,000, as discussed in Note 11, Income Taxes. The following reconciliation table provides a detailed calculation of pro forma EPS: Schedule of Pro forma Earning Per Share (in thousands, except share and per share data) 2021 2020 Net income before provision for income taxes - GAAP $ 47,148 $ 37,255 Actual/pro forma provision for income taxes (9,335 ) (11,013 ) Actual/pro forma net income 37,813 26,242 Weighted average basic common shares outstanding 14,972,637 10,063,183 Add: Dilutive effects of assumed vesting of restricted stock 22,576 — Weighted average diluted common shares outstanding 14,995,213 10,063,183 Income per common share: Basic EPS $ 2.53 $ 2.61 Diluted EPS $ 2.52 $ 2.61 Subordinated Notes The subordinated notes are recorded at par with related debt issuance costs reported as a direct reduction from the carrying amount. Issuance costs are amortized over the remaining maturity of the notes and reflected in interest expense. Fair Value of Financial Instruments The consolidated financial statements include various estimated fair value information as of December 31, 2021 and 2020. Such information, which pertains to the Company’s financial instruments, does not purport to represent the aggregate net fair value of the Company. Further, the fair value estimates are based on various assumptions, methodologies, and subjective considerations, which vary widely among different financial institutions, and are subject to change. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company bases the fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Securities available-for-sale, and derivatives, if any, are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record certain assets at fair value on a non-recurring basis, such as loans held for sale, certain collateral dependent impaired loans held for investment and held-to-maturity securities that are other-than-temporarily impaired. These non-recurring fair value adjustments typically involve write-downs of individual assets due to application of lower of cost or fair value account |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2021 | |
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 Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, Codification Improvements to Topic 842, Leases Leases (Topic 842): Targeted Improvements Leases (Topic 842): Lessors- Certain Leases with Variable Lease Payments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) Reference Rate Reform (Topic 848), |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 3: 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 Government National Mortgage Association (the “GNMA”) and the SBA, and securities issued by U.S. government-sponsored enterprises (“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 December 31, 2021 and 2020 is presented below. Schedule of Securities Held-To-Maturity Gross Unrealized (in thousands) Amortized Cost Gains (Losses) Fair Value 2021 Obligations of states and political subdivisions 4,946 251 — 5,197 Total held-to-maturity $ 4,946 $ 251 $ — $ 5,197 2020 Obligations of states and political subdivisions 7,979 776 — 8,755 Total held-to-maturity $ 7,979 $ 776 $ — $ 8,755 For securities issued by states and political subdivisions, for OTTI purposes, 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 December 31, 2021 and 2020 is presented below. Schedule of Securities Available-for-Sale Gross Unrealized (in thousands) Amortized Cost Gains (Losses) Fair Value 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 2020 U.S. government agencies $ 32,069 $ 111 $ (352 ) $ 31,828 Mortgage-backed securities 23,601 338 (7 ) 23,932 Obligations of states and political subdivisions 57,137 1,291 (8 ) 58,420 Collateralized mortgage obligations 748 21 — 769 Total available-for-sale $ 113,555 $ 1,761 $ (367 ) $ 114,949 The amortized cost and fair value of investment debt securities by contractual maturity at December 31, 2021 and 2020 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. Schedule of Investment Securities by Contractual Maturity 2021 2020 Held-to-Maturity Available-for-Sale Held-to-Maturity Available-for-Sale (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 491 $ 516 $ — $ — $ 494 $ 543 $ — $ — After one but within five years 951 999 507 522 2,143 2,351 1,141 1,206 After five years through ten years 3,504 3,682 3,697 3,748 2,755 3,023 8,340 8,599 After ten years — — 40,528 40,867 2,587 2,838 47,656 48,615 Investment securities not due at a single maturity date: U.S. government agencies — — 19,824 19,682 — — 32,069 31,828 Mortgage-backed securities — — 82,517 81,513 — — 23,601 23,932 Collateralized mortgage obligations — — 537 540 — — 748 769 Corporate bonds — — 2,000 1,935 — — — — Total $ 4,946 $ 5,197 $ 149,610 $ 148,807 $ 7,979 $ 8,755 $ 113,555 $ 114,949 Sales proceeds of investment securities and gross realized gains and/or losses are shown in the following table: Schedule of Investment Securities Available-for-Sale Gross Realized Gain and Losses (in thousands) 2021 2020 Available-for-sale: Sales proceeds $ 47,096 $ 46,406 Gross realized gains 724 1,438 Pledged investment securities (in thousands) 2021 2020 Pledged to the State of California: Secure deposits of public funds and borrowings $ 63,363 $ 52,897 Total pledged investment securities $ 63,363 $ 52,897 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 December 31, 2021 and 2020: < 12 continuous months ≥ 12 continuous months Total securities (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss 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 ) 2020 U.S. government agencies $ 10,800 $ (56 ) $ 15,195 $ (296 ) $ 25,995 $ (352 ) Mortgage-backed securities 1,786 (7 ) — — 1,786 (7 ) Obligations of states and political subdivisions 3,922 (8 ) — — 3,922 (8 ) Total temporarily impaired securities $ 16,508 $ (71 ) $ 15,195 $ (296 ) $ 31,703 $ (367 ) There were 91 31 16 75 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 OTTI. 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 were no held-to-maturity securities in a continuous loss position at December 31, 2021 or 2020. Obligations issued or guaranteed by government agencies such as the GNMA and the SBA or GSEs under conservatorship such as the FNMA and the 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 6,723,000 6,232,000 372,000 321,000 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 4: Loans and Allowance for Loan Losses The following table presents the balance of each major product type within the Company’s portfolio as of the dates indicated. Schedule of Loan Portfolio (in thousands) 2021 2020 Real estate: Commercial $ 1,586,232 $ 1,002,497 Commercial land and development 7,376 10,600 Commercial construction 54,214 91,760 Residential construction 7,388 11,914 Residential 28,562 30,431 Farmland 54,805 50,164 Commercial: Secured 137,062 138,676 Unsecured 21,136 17,526 Paycheck Protection Program (“PPP”) 22,124 147,965 Consumer and other 17,167 4,921 Subtotal 1,936,066 1,506,454 Less: Net deferred loan fees 1,606 3,295 Less: Allowance for loan losses 23,243 22,189 Total loans, net $ 1,911,217 $ 1,480,970 Allowance for Loan Losses Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Bank has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: commercial, real estate, and consumer. The Company further sub-divides these segments into classes based on the associated risks within those segments. Commercial loans are divided into the following two classes: unsecured and secured loans. Real estate loans are divided into the following six classes: commercial real estate, commercial land and development, commercial construction, residential construction, residential real estate, and farmland. For each class of loans, management exercises significant judgment to determine the estimation method that fits the credit risk characteristics of its portfolio segment. The Company uses an internally developed model in this process. Management must use judgment in establishing additional input metrics for the modeling processes. The models and assumptions used to determine the allowance are independently validated and reviewed, at least annually, to ensure that their theoretical foundation, assumptions, data integrity, computational processes, reporting practices, and end-user controls are appropriate and properly documented. CARES Act and PPP Loans Pursuant to the CARES Act, which was passed in March 2020, the Company funded over 1,500 loans to eligible small businesses and non-profit organizations who participated in the PPP administered by the SBA. PPP loans have terms of two or five years and earn interest at 1.00%. In addition, the Bank received a fee of 1.00% to 5.00% from the SBA depending on the loan amount, which was netted with loan origination costs and amortized into interest income under the effective yield method over the contractual life of the loan. The recognition of fees and costs is accelerated when the loan is forgiven by the SBA and/or paid off prior to maturity. PPP loans are fully guaranteed by the SBA and are expected to be forgiven by the SBA if they meet the requirements of the program. The balance of PPP loans at December 31, 2021 and 2020 was $ 22,124,000 147,965,000 The CARES Act also required the SBA to make payments on new and existing 7(a) loans for a period of six months. These were not deferments but rather full payments of principal and interest for which the borrower will not be responsible for in the future. As of December 31, 2021 and 2020, the principal outstanding on loans receiving one or more of these payments under the CARES Act was $ 46,601,000 51,237,000 Underwriting Commercial loans Real estate loans Construction loans Residential real estate loans Farmland loans Consumer loans Concentrations The Company’s customers are primarily located in the Greater Sacramento and North Valley regions of California. As of December 31, 2021, approximately 90% of the Company’s loans were real estate related, 9% were commercial, and less than 1% were consumer. 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 Loans rated watch Loans rated substandard Loans rated doubtful The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2021: Schedule of Loan by credit quality (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 The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2020: (in thousands) Pass Watch Substandard Doubtful Total Real estate: Commercial $ 950,118 $ 16,836 $ 35,543 $ — $ 1,002,497 Commercial land and development 10,600 — — — 10,600 Commercial construction 85,860 5,900 — — 91,760 Residential construction 11,914 — — — 11,914 Residential 30,248 — 183 — 30,431 Farmland 50,164 — — — 50,164 Commercial: Secured 136,992 1,552 132 — 138,676 Unsecured 17,526 — — — 17,526 PPP 147,965 — — — 147,965 Consumer 4,921 — — — 4,921 Total $ 1,446,308 $ 24,288 $ 35,858 $ — $ 1,506,454 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 December 31, 2021 consisted of the following: Schedule of Age Analysis of Past Due Loan Past Due (in thousands) 30-89 Days Greater Than 90 Days Total Past Due Current Total Loans Receivable 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 loans $ 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. The age analysis of past due loans by class as of December 31, 2020 consisted of the following: Past Due (in thousands) 30-89 Days Greater Than 90 Days Total Past Due Current Total Loans Receivable Real estate: Commercial $ — $ — $ — $ 1,002,497 $ 1,002,497 Commercial land and development — — — 10,600 10,600 Commercial construction — — — 91,760 91,760 Residential construction — — — 11,914 11,914 Residential — — — 30,431 30,431 Farmland — — — 50,164 50,164 Commercial: Secured — — — 138,676 138,676 Unsecured — — — 17,526 17,526 PPP — — — 147,965 147,965 Consumer and other 137 — 137 4,784 4,921 Total loans $ 137 $ — $ 137 $ 1,506,317 $ 1,506,454 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, 2020. Impaired Loans Information related to impaired loans as of December 31, 2021 and 2020 consisted of the following: Schedule of Impaired Loans by class of Loans (in thousands) Recorded Unpaid Related Average Interest 2021 Real estate: Commercial $ 122 $ 122 $ — $ 130 $ — Residential 178 178 — 181 — Commercial: Secured 288 288 172 306 — Total impaired loans $ 588 $ 588 $ 172 $ 617 $ — 2020 Real estate: Commercial $ 137 $ 137 $ — $ 69 $ — Residential 183 183 — 92 — Commercial: Secured 132 132 — 65 — Total impaired loans $ 452 $ 452 $ — $ 226 $ — No collateral dependent loans were in process of foreclosure at December 31, 2021 or 2020. In addition, the weighted average loan-to-value of impaired, collateral dependent loans was approximately 70.67% and 50.51% at December 31, 2021 and 2020, respectively. Non-accrual loans, segregated by class, are as follows as of December 31, 2021 and 2020: Schedule of Nonaccural Loans, segregated by class (in thousands) 2021 2020 Real estate: Commercial $ 122 $ 137 Residential 178 183 Commercial: Secured 288 132 Total non-accrual loans $ 588 $ 452 The amount of foregone interest income related to non-accrual loans was $ 33,000 35,000 Troubled Debt Restructuring The Companys loan portfolio may include certain loans that have been modified in a TDR, which are loans for which concessions in terms have been granted because of the borrowers financial difficulties. These concessions typically result from the Companys 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 borrowers 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 December 31, 2021 or 2020. 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, 2019; and (iii) executed between March 1, 2020, and the earlier of: (i) 60 days after the date of termination of the federal national emergency; or (ii) January 1, 2022. 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 December 31, 2021, six borrowing relationships with six loans totaling $12,156,000 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. Schedule of activity in the allowance for loan losses Real Estate Commercial (in thousands) Comml Comml Comml Resid Resid Farm- Secured Unsec PPP Consu Unal Total 2021 Beginning balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 Charge-offs — — — — — — (822 ) — — (321 ) — (1,143 ) Recoveries — — — — — — 263 — — 234 — 497 Provision (recapture) 3,511 (27 ) (450 ) (37 ) (28 ) 30 (2,058 ) 28 — 344 387 1,700 Ending balance $ 12,869 $ 50 $ 371 $ 50 $ 192 $ 645 $ 6,859 $ 207 $ — $ 889 $ 1,111 $ 23,243 2020 Beginning balance $ 6,331 $ 109 $ 661 $ 116 $ 224 $ 1,382 $ 4,976 $ 88 $ — $ 601 $ 427 $ 14,915 Charge-offs — — — — — — (1,604 ) — — (559 ) — (2,163 ) Recoveries — — — — 90 — 176 — — 171 — 437 Provision (recapture) 3,027 (32 ) 160 (29 ) (94 ) (767 ) 5,928 91 — 419 297 9,000 Ending balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 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 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 2020 Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 9,358 77 821 87 220 615 9,476 179 — 632 724 22,189 Ending balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 Loans: Ending balance individually evaluated for impairment $ 137 $ — $ — $ — $ 183 $ — $ 132 $ — $ — $ — $ — $ 452 Ending balance collectively evaluated for impairment 1,002,360 10,600 91,760 11,914 30,248 50,164 138,544 17,526 147,965 4,921 — 1,506,002 Ending balance $ 1,002,497 $ 10,600 $ 91,760 $ 11,914 $ 30,431 $ 50,164 $ 138,676 $ 17,526 $ 147,965 $ 4,921 $ — $ 1,506,454 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 $ 941,160,000 1,093,513,000 33,391,000 61,635,000 |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net | Note 5: Premises and Equipment, Net Premises and equipment, net, were as follows as of December 31, 2021 and 2020: Schedule of Premises and Equipment (in thousands) 2021 2020 Furniture, fixtures, and equipment $ 3,314 $ 3,057 Tenant improvements 1,973 2,027 Premises and Equipment, Gross 5,287 5,084 Less: Accumulated depreciation and amortization 3,514 3,421 Premises and equipment, net $ 1,773 $ 1,663 Depreciation expense for occupancy, furniture, fixtures, and equipment was $ 607,000 461,000 |
Bank-owned Life Insurance
Bank-owned Life Insurance | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Bank-owned Life Insurance | Note 6: Bank-owned Life Insurance The Company owns life insurance policies on the lives of certain current and former officers designated by the board of directors to fund our employee benefit programs. Death benefits provided under the specific terms of these insurance policies are estimated to be $ 26,956,000 11,203,000 8,662,000 237,000 220,000 |
Interest Receivable and Other A
Interest Receivable and Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Interest Receivable And Other Assets | |
Interest Receivable and Other Assets | Note 7: Interest Receivable and Other Assets Interest receivable and other assets (in thousands) 2021 2020 Interest receivable $ 5,332 $ 5,422 Equity investments 5,741 3,757 Servicing assets 2,215 2,083 Other assets 8,340 3,030 Interest Receivable and Other Assets $ 21,628 $ 14,292 Servicing assets represent the assets related to servicing loans for others, including collecting payments, maintaining escrow accounts, disbursing payments to investors, and conducting foreclosure proceedings. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers. The Company serviced loans with unpaid principal balances of $194,649,000 and $187,834,000 as of December 31, 2021 and 2020, respectively, on behalf of others. |
Interest-Bearing Deposits
Interest-Bearing Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Interest-bearing Deposits | |
Interest-Bearing Deposits | Note 8: Interest-Bearing Deposits Interest-bearing deposits consisted of the following as of December 31, 2021 and 2020: Schedule of Interest-bearing deposits (in thousands) 2021 2020 Savings $ 88,536 $ 49,714 Money market 912,558 839,053 Interest checking accounts 278,406 146,553 Time, $250 or more 77,868 7,568 Other time 26,404 40,034 Total interest-bearing deposits $ 1,383,772 $ 1,082,922 Time deposits totaled $ 104,272,000 47,602,000 Schedule of Maturities of Time Deposits (in thousands) 2022 $ 103,334 2023 911 2024 26 2025 — 2026 1 Total time deposits $ 104,272 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 Federal Deposit Insurance Corporation (“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. There were no one-way deposits at December 31, 2021 and 2020. The composition of network deposits as of December 31, 2021 and 2020 was as follows: Schedule of Composition of Network Deposits (in thousands) 2021 2020 CDARS $ 22,411 $ 35,534 ICS 307,636 261,127 Total network deposits $ 330,047 $ 296,661 Interest expense recognized on interest-bearing deposits (in thousands) 2021 2020 Savings $ 74 $ 94 Money market 1,797 5,750 Interest checking accounts 155 374 Time, $250 or more 42 797 Other time 131 392 Total interest expense on interest-bearing deposits $ 2,199 $ 7,407 |
Long Term Debt and Other Borrow
Long Term Debt and Other Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long Term Debt and Other Borrowings | Note 9: Long Term Debt and Other Borrowings Subordinated notes 3,750,000 The Company has $25,000,000 in principal of fixed-to-floating rate subordinated notes to certain qualified investors, of which $8,000,000 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, for 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 rate plus 404.4 basis points (4.25% as of December 31, 2021) until maturity. The notes include a right of prepayment, on or after September 28, 2022 and, 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 regulatory capital purposes. Debt issuance costs incurred in conjunction with the notes were $ 642,000 280,000 28,386,000 28,320,000 Other borrowings 696,285,000 at December 31, 2021 and $ 519,274,000 at December 31, 2020. At December 31, 2021 and 2020, the Company had no outstanding borrowings. As of December 31, 2021 and 2020, the Company had letters of credit issued on its behalf totaling $ 420,500,000 and $ 293,500,000 , respectively, as discussed below. As of December 31, 2021, letters of credit totaling $ 80,500,000 340,000,000 13,500,000 280,000,000 275,785,000 284,810,000 At December 31, 2021, the Company had five unsecured federal funds lines of credit totaling $150,000,000 with five of its correspondent banks, respectively. At December 31, 2020, the Company had three unsecured federal funds lines of credit totaling $ 75,000,000 with three of its correspondent banks, respectively. There were no amounts outstanding at December 31, 2021 and 2020. At December 31, 2021 and 2020, the Company had the ability to borrow from the Federal Reserve Discount Window 16,999,000 25,881,000 |
401(k) Benefit Plan
401(k) Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
401(k) Benefit Plan | Note 10: 401(k) Benefit Plan A 401(k) benefit plan covers substantially all employees and allows voluntary employee contributions up to the lesser of 80% of compensation or the annually adjusted IRS dollar limit. These voluntary contributions are matched equal to 100% of the first 3% of the employee’s compensation contributed and 50% of contributions exceeding 3% of eligible compensation, not to exceed 5% of the total eligible compensation. The employees’ voluntary contributions and the Company’s matching contributions are 100% vested immediately. The expense related to matching employees’ contributions for 2021 and 2020 was $ 593,000 465,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11: Income Taxes The Company terminated its status as a Subchapter S corporation as of May 5, 2021, in connection with its 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 an effective state income tax rate and corresponding tax expense. In conjunction with the termination of the Subchapter S corporation status, the C Corporation deferred tax assets and liabilities were estimated for future tax consequences attributable to differences between the financial statement carrying amounts of the Company’s existing assets and liabilities and their respective tax bases. The deferred tax assets and liabilities were measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of the change in tax rates resulting from becoming a C Corporation was recognized as a $4,638,000 increase to the net deferred tax asset to $ 5,370,000 4,638,000 The provision for income tax (in thousands) 2021 2020 Statutory U.S. federal income tax $ 9,901 $ 7,824 Increase (decrease) resulting from: Benefit of S Corporation status (4,884 ) (7,824 ) State taxes 4,045 1,327 Deferred tax asset adjustment (4,638 ) — Other 283 — Provision for income taxes $ 4,707 $ 1,327 For the year ended December 31, 2021, the Companys effective tax rate differed from the statutory California tax rate of 3.50% used prior to May 5, 2021 and the statutory federal and state tax rate, net of federal benefit, of 29.56% used May 5, 2021 and after, as the effective tax rate primarily represents the weighted average rate between the S Corporation tax rate of 3.50% and the C Corporation tax rate of 29.56% based on the number of days the Company was each type of corporation during 2021. The components of the consolidated provision for income taxes (in thousands) 2021 2020 Current tax expense Federal $ 6,178 $ — State 2,530 1,468 Current $ 8,708 $ 1,468 Deferred tax benefit Federal $ (3,561 ) $ — State (440 ) (141 ) Deferred $ (4,001 ) (141 ) Provision for income taxes $ 4,707 $ 1,327 Deferred tax assets and liabilities (in thousands) 2021 2020 Deferred tax assets: Allowance for credit losses $ 7,398 $ 777 Supplemental employee retirement plan 521 52 Gain on available-for-sale assets 151 5 Net unrealized loss on securities available-for-sale 237 — Accrual to cash adjustment — 13 Depreciation — 43 Other 562 — Deferred tax assets 8,869 890 Deferred tax liabilities: Deferred loan fees (2,927 ) (177 ) Net unrealized gain on securities available-for-sale — (49 ) State tax (379 ) — Depreciation (419 ) — Other (228 ) (31 ) Deferred tax liabilities (3,953 ) (257 ) Net deferred tax asset $ 4,916 $ 633 No deferred tax asset valuation allowance was established during 2021 or 2020, as management believes it is more likely than not the Company will realize the benefits of these deductible differences as of December 31, 2021 and 2020. No unrecognized tax benefits were outstanding as of December 31, 2021 or 2020. The Company files tax returns in the U.S. federal and California state jurisdictions. The Company is no longer subject to examinations for years before 2017. There were no interest or penalties in 2021 and 2020. It is the Company’s policy to record such accruals in its income taxes accounts. During 2021, the Company paid approximately $27,000,000 to shareholders of record as of May 3, 2021, for the Accumulated Adjustments Account (AAA) payout under the Companys Tax Sharing Agreement. The AAA represents previously taxed, but undistributed, earnings. As of December 31, 2021, the balance of the Companys AAA was estimated to be approximately $4,877,000 and is subject to adjustment upon completion of the 2021 tax return, which could be material. The balance in the AAA account represents the remaining amount of previously taxed but undistributed earnings of the Company. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12: Related Party Transactions During the normal course of business, the Company may enter into transactions with related parties, including directors, executive officers, principal shareholders, and their businesses or affiliates. 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. The following is a summary of loans to related parties in 2021 and 2020: Schedule of Related Party Transactions (in thousands) 2021 2020 Beginning balance $ 2,048 $ 1,348 New loans or advance 7,828 280 Loans issued in prior years to new related parties — 695 Repayments (458 ) (275 ) Ending balance $ 9,418 $ 2,048 At December 31, 2021 and 2020, deposits from related parties (directors, executive officers, and principal shareholders) totaled $ 32,410,000 42,466,000 12,000 27,000 During 2021, nine of the Companys directors were each granted 4,500 fully vested shares of the Companys stock for the payment of director fees in addition to their standard cash compensation, totaling 40,500 shares with a combined fair value of $810,000, and one director was granted 1,140 fully vested shares of the Companys stock, with a fair value of $36,000, upon retirement. Additionally, during 2021, ten directors purchased a total of 190,071 shares for $3,985,000. During 2020, eight of the Companys directors were each granted 2,000 fully vested shares of the Companys stock for the payment of director fees in addition to their standard cash compensation, totaling 16,000 shares with a combined fair value of $252,000. Additionally, during 2020, two new directors purchased 50,000 shares for $900,000. Additional transactions with related parties are described in Note 15, Commitments and Contingencies. |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Equity Incentive Plan | Note 13: Equity Incentive Plan In April 2021, the Company’s board of directors and shareholders approved the Five Star Bancorp 2021 Equity Incentive Plan (the “Equity Incentive Plan”). The Equity Incentive Plan provides for the grant of stock options, stock appreciation rights, performance awards, restricted stock, restricted stock units, and other stock-based awards that the Compensation Committee determines are consistent with the purpose of the Equity Incentive Plan and the interests of the Company. Awards may be granted to the Company’s executives and other key employees, directors, and other service providers, and are designed to align the interests of the Equity Incentive Plan’s participants with the interests of our shareholders. The stock options granted under the Equity Incentive Plan may be either non-statutory stock options or incentive stock options. There were no stock options outstanding at December 31, 2021 or 2020, respectively. The total number of shares of our common stock reserved and available for grant and issuance pursuant to the Equity Incentive Plan will not exceed 1,700,000 Stock-Based Compensation 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 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, or seven years (as defined in the respective agreements). All RSAs were granted at the fair value of common stock at the time of the award. The RSAs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the service period. The Company granted 174,347 and 11,398 restricted shares during the years ended December 31, 2021 and 2020, respectively. In addition, 4,522 and no restricted shares were forfeited during the years ended December 31, 2021 and 2020, respectively. Non-cash stock compensation expense recognized for the years ended December 31, 2021 and 2020 was $1,440,000 and $568,000, respectively. In 2021, the Company granted a total of 41,640 fully vested shares to members of the board of directors as compensation for their service. In 2020, the Company granted 2,000 fully vested shares to the Chief Executive Officer for service as a member of the board of directors and 1,250 fully vested shares to another officer as a discretionary grant. At December 31, 2021 and 2020, respectively, there were 127,751 and 11,568 unvested restricted shares. As of December 31, 2021, there was approximately $2,204,000 of unrecognized compensation expense related to the 127,751 unvested restricted shares. The holders of unvested RSAs are entitled to dividends on 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 years ended December 31, 2021 and 2020 was immaterial. The following table summarizes information about unvested restricted shares 2021 2020 Shares Weighted Shares Weighted Beginning of the period balance 11,568 $ 21.25 15,794 $ 21.03 Shares granted 174,347 19.97 11,398 20.14 Shares vested (53,642 ) 20.35 (15,624 ) 20.23 Shares forfeited (4,522 ) 19.33 — — End of the period balance 127,751 $ 19.95 11,568 $ 21.25 |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders’ Equity | Note 14: Shareholders’ Equity Dividends During the year ended December 31, 2021, the Company declared cash dividends on its common shares totaling $ 24,975,000 On May 20, 2021, as a result of the Company’s conversion to a C Corporation, the board of directors declared an aggregate distribution of $ 26,967,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15: 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 amount of unfunded loan commitments and standby letters of credit not reflected in the consolidated balance sheets are as follows: Schedule of Unfunded Loan Commitments and Standby Letter of Credit (in thousands) 2021 2020 Commercial lines of credit $ 137,354 $ 107,231 Undisbursed construction loans 46,584 50,442 Undisbursed commercial real estate loans 47,793 39,946 Agricultural lines of credit 9,955 11,553 Undisbursed agricultural real estate loans 3,427 5,945 Other 3,764 920 Total commitments and standby letters of credit $ 248,877 $ 216,037 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 $100,000 as of December 31, 2021 and 2020, which is recorded in interest payable and other liabilities in the consolidated balance sheets. Concentrations of credit risk In management’s judgment, a concentration of loans exists in real estate related loans, which represented approximately 89.31% of the Company’s loan portfolio at December 31, 2021 and 79.23% of the Company’s loan portfolio at December 31, 2020. 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 64 1,166,728,000 51.04% 154,988,000 6.78% Correspondent banking agreements 147,219,000 118,003,000 Leases The Company leases office space for its banking operations under non-cancelable operating leases of various terms. The leases expire at various dates through 2032 and provide for renewal options from zero to five years. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties. One of the leases provides for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, while the remaining leases include pre-defined rental increases over the term of the lease. 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 the 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 was $ 140,000 225,000 The following table shows the future minimum lease payments and weighted average remaining lease terms under the Company’s operating lease arrangements as of December 31, 2021. Schedule of Future Minimum Lease Payment and Weighted Average Remaining Lease (in thousands) 2022 $ 1,025 2023 978 2024 951 2025 733 2026 604 Thereafter 1,094 Total $ 5,385 Weighted average remaining term (in years) 4.64 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. |
Capital Requirements and Restri
Capital Requirements and Restrictions on Retained Earnings | 12 Months Ended |
Dec. 31, 2021 | |
Capital Requirements and Restrictions on Retained Earnings | Note 16: Capital Requirements and Restrictions on Retained Earnings The Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and the Bank’s prompt corrective action classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are generally not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the below table) of total capital, Tier 1 capital, and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets and of Tier 1 capital to average assets. The Company operates under the Small Bank Holding Company Policy Statement, and, accordingly, is exempt from the Federal Reserve’s generally applicable risk-based capital ratio and leverage ratio requirements. The Bank is required to meet a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.00% (a minimum of 4.50% plus a capital conservation buffer of 2.50%), a Tier 1 capital to risk-weighted assets ratio of at least 8.50% (a minimum of 6.00% plus a capital conservation buffer of 2.50%), a total capital to risk-weighted assets ratio of at least 10.50% (a minimum of 8.00% plus a capital conservation buffer of 2.50%), and a Tier 1 leverage ratio of at least 4.00%. Management believes that, as of December 31, 2021, the Company and the Bank met all capital adequacy requirements to which they are subject. As of December 31, 2021, the Bank was categorized as “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the below table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The principal source of cash for the Company is dividends from the Bank. Dividends from the Bank to the Company are restricted under California law to the lesser of: (a) the Bank’s retained earnings; or (b) the Bank’s net income for the latest three fiscal years, less dividends previously declared during that period. As of December 31, 2021 and 2020, the maximum amount available for dividend distribution under this restriction was approximately $15,464,000 and $15,624,000, respectively. If a proposed dividend exceeds the limit, the Bank may still pay a dividend to the Holding Company if it obtains approval from the California Department of Financial Protection and Innovation and the dividend does not exceed the greater of: (i) the retained earnings of the Bank; (ii) the net income of the Bank for its last fiscal year; or (iii) the net income of the Bank for its current fiscal year. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the following table: Capital Ratios for Bancorp Actual Ratio Required for Capital Adequacy Purposes 1 Ratio to be Well- Capitalized under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio 2021 Total capital (to risk-weighted assets) $ 285,128 13.98% $ 163,177 ≥ 8.00% N/A N/A Tier 1 capital (to risk-weighted assets) $ 233,397 11.44% $ 122,382 ≥ 6.00% N/A N/A Common equity tier 1 capital (to risk-weighted assets) $ 233,397 11.44% $ 91,787 ≥ 4.50% N/A N/A Tier 1 leverage $ 233,397 9.47% $ 98,600 ≥ 4.00% N/A N/A 2020 Total capital (to risk-weighted assets) $ 176,861 12.18% $ 116,138 ≥ 8.00% N/A N/A Tier 1 capital (to risk-weighted assets) $ 130,347 8.98% $ 87,103 ≥ 6.00% N/A N/A Common equity tier 1 capital (to risk-weighted assets) $ 130,347 8.98% $ 65,327 ≥ 4.50% N/A N/A Tier 1 leverage $ 130,347 6.58% $ 79,204 ≥ 4.00% N/A N/A Capital Ratios for the Bank Actual Ratio Required for Capital Adequacy Purposes Ratio to be Well- Capitalized under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio 2021 Total capital (to risk-weighted assets) $ 279,152 13.69% $ 163,078 ≥ 8.00% $ 203,848 ≥ 10.00 Tier 1 capital (to risk-weighted assets) $ 255,807 12.55% $ 122,309 ≥ 6.00% $ 163,078 ≥ 8.00% Common equity tier 1 capital (to risk-weighted assets) $ 255,807 12.55% $ 91,731 ≥ 4.50% $ 132,501 ≥ 6.50 Tier 1 leverage $ 255,807 10.38% $ 98,555 ≥ 4.00% $ 123,193 ≥ 5.00 2020 Total capital (to risk-weighted assets) $ 174,002 11.99 $ 116,114 ≥ 8.00 $ 145,143 ≥ 10.00 Tier 1 capital (to risk-weighted assets) $ 155,808 10.73% $ 87,086 ≥ 6.00% $ 116,114 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) $ 155,808 10.73 $ 65,314 ≥ 4.50% $ 94,343 ≥ 6.50 Tier 1 leverage $ 155,808 7.87% $ 79,199 ≥ 4.00% $ 98,998 ≥ 5.00% 1 Presented as if Bancorp were subject to Basel III capital requirements. The Company operates under the Small Bank Holding Company Policy Statement and therefore is not currently subject to generally applicable capital adequacy requirements. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Note 17: Fair Value of Assets and Liabilities The following table summarizes the Companys assets and liabilities that were carried at fair value on a recurring basis. Schedule of Fair Value Assets and Liabilities on Recurring Basis (in thousands) Carrying Quoted Prices in Significant Significant Measurement 1 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 2020 Assets: Securities available-for-sale: U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, and collateralized mortgage obligations $ 114,949 $ — $ 114,949 $ — OCI Derivatives – interest rate swap 149 — 149 — NI Liabilities: Derivatives – interest rate swap 149 — 149 $ — 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 agencies’ debt securities, mortgage-backed securities, government agency issued bonds, privately issued collateralized mortgage obligations, and corporate bonds. As of December 31, 2021 and 2020, there were no Level 1 or Level 3 securities and no transfers between Level 1 and Level 2 classifications for assets or liabilities measured at fair value on a recurring basis. The Company’s investment portfolio service bureau has developed a model for pricing available-for-sale debt securities. Information such as historical and current performance of the underlying collateral, deferral/default rates, collateral coverage ratios, break-even yield calculations, cash flow projections, liquidity, and credit premiums required by a market participant, as well as financial trend analysis with respect to the individual issuing financial institutions and insurance companies, are utilized in determining individual security valuations. Due to current market conditions, as well as the limited trading activity of the securities, the market value of the securities is highly sensitive to assumption changes and market volatility. The Company’s derivative is comprised of an interest rate swap for a structured lending arrangement and is reported at fair value utilizing Level 2 inputs. The Company obtains fair values from financial institutions that utilize internal models with observable market data inputs to estimate the values of these instruments (Level 2 inputs). The fair value of collateral dependent impaired loans and other real estate is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also incorporates assumptions regarding market trends or other relevant factors and selling and commission costs ranging from 5.00% to 7.00%. Such adjustments and assumptions are typically significant and result in a Level 3 classification of the inputs for determining fair value. 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 impaired loans that are collateral dependent and OREO. As of December 31, 2021 and 2020, 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 December 31, 2021 and 2020. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. 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. Schedule of fair value estimates for financial instruments December 31, 2021 December 31, 2020 (in thousands) Carrying Fair Fair Value Carrying Fair Fair Value Financial assets: Cash and cash equivalents $ 425,329 $ 425,329 Level 1 $ 290,493 $ 290,493 Level 1 Time deposits in banks 14,464 14,464 Level 1 23,705 23,705 Level 1 Securities available-for-sale 148,807 148,807 Level 2 114,949 114,949 Level 2 Securities held-to-maturity 4,946 5,197 Level 3 7,979 8,755 Level 3 Loans held for sale 10,671 11,217 Level 2 4,820 5,012 Level 2 Loans held for investment 1,911,217 1,893,431 Level 3 1,480,970 1,464,794 Level 3 FHLB stock and other investments 12,464 N/A N/A 9,989 N/A N/A Interest receivable 5,332 5,332 Level 2 5,422 5,422 Level 2 Interest rate swap 92 92 Level 2 149 149 Level 2 Financial liabilities: Deposits 2,285,890 2,210,555 Level 2 1,784,001 1,785,944 Level 2 Interest payable 23 23 Level 2 75 75 Level 2 Interest rate swap 92 92 Level 2 149 149 Level 2 Subordinated notes 28,386 28,386 Level 3 28,320 28,320 Level 3 The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at December 31, 2021 and 2020: Cash and cash equivalents and time deposits in banks Investment securities Loans held for sale Loans held for investment Interest receivable and payable Derivatives - interest rate swap Deposits Commitments to extend credit Subordinated notes |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | Note 18: Parent Company Only Condensed Financial Information CONDENSED BALANCE SHEETS December 31, 2021 and 2020 (In thousands) 2021 2020 ASSETS Cash and cash equivalents $ 5,636 $ 3,555 Investment in banking subsidiary 257,456 159,236 Other assets 922 291 Total assets $ 264,014 $ 163,082 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated notes and other liabilities $ 28,968 $ 29,307 Shareholders’ equity 235,046 133,775 Total liabilities and shareholders’ equity $ 264,014 $ 163,082 CONDENSED STATEMENTS OF INCOME Years ended December 31, 2021 and 2020 (In thousands) 2021 2020 Dividends from banking subsidiary $ 27,630 $ 28,077 Interest expense 1,773 1,773 Other expense 3,559 1,023 Income before income tax and undistributed banking subsidiary income 22,298 25,281 Income tax benefit 812 10 Equity in undistributed banking subsidiary income 19,331 10,637 Net income $ 42,441 $ 35,928 CONDENSED STATEMENTS OF CASH FLOWS Years ended December 31, 2021 and 2020 2021 2020 Cash flows from operating activities: Net income $ 42,441 $ 35,928 Adjustments to reconcile net income to net cash provided by operating activities: Stock compensation expense 594 316 Stock issued to directors 846 252 Equity in undistributed banking subsidiary income (19,331 ) (10,637 ) Amortization of subordinated notes issuance costs 66 67 Change in other assets (631 ) (203 ) Change in accrued expenses and other liabilities (405 ) 514 Net cash provided by operating activities 23,580 26,237 Cash flows from investing activities: Investment in subsidiary (80,800 ) (13,500 ) Net cash used in investing activities (80,800 ) (13,500 ) Cash flows from financing activities: Proceeds from sale of stock 111,243 13,400 Cash dividends paid (51,942 ) (26,369 ) Net cash provided by financing activities 59,301 (12,969 ) Net change in cash and cash equivalents 2,081 (232 ) Cash and cash equivalents at beginning of period 3,555 3,787 Cash and cash equivalents at end of period $ 5,636 $ 3,555 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19: Subsequent Events On January 20, 2022, the board of directors declared a $ 0.15 February 7, 2022 2,587,000 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 Board of Governors of the Federal Reserve System (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 a broad range of banking products and services to customers who are predominately small and medium-sized businesses, professionals, and individuals primarily in the Northern California region. Its primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit. 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. The Company publicly filed a Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with its IPO (the “Registration Statement”), which was declared effective by the SEC on May 4, 2021. In connection with the IPO, the Company issued 6,054,750 20.00 111,243,000 109,082,000 |
Basis of Financial Statement Presentation and Consolidation | Basis of Financial Statement Presentation and Consolidation The accompanying 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. The 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. 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 a smaller reporting company, and, as such, may take advantage of specified reduced reporting requirements and is relieved of other significant requirements that are otherwise generally applicable to other public companies. |
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 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. Other estimates include fair value measurements, valuation of servicing assets, and deferred tax asset valuation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company defines cash and cash equivalents as cash, due from financial institutions, interest-bearing deposits in banks with short term original maturities, and federal funds sold. Generally, federal funds are sold for one-day periods, if at all. At times throughout the year, balances can exceed FDIC insurance limits. The Company has not experienced any historical losses associated with balances maintained with financial institutions in excess of FDIC insurance limits, and management continues to monitor the financial condition of the major financial institutions where these funds are held. |
Securities Available-for-Sale | Securities Available-for-Sale Available-for-sale securities consist of bonds, notes, and debentures not classified as trading securities or held-to-maturity securities. Securities are classified as available-for-sale if the Company intends and has the ability to hold those securities for a period of time, but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Securities available-for-sale are carried at fair value. Unrealized holding gains or losses are included in other comprehensive income as a separate component of shareholders’ equity, net of tax. Realized gains or losses, determined based on the cost of specific securities sold, are included in earnings. Premiums are amortized over the life of the security, or if a callable bond, over the earliest call date, and discounts are accreted over the life of the related investment security as an adjustment to interest income using the effective interest method. Interest income is recognized when earned. Investments with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates, or both. At each consolidated financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other-than-temporary. Various factors are considered in the assessment, including the nature of the investment, the cause of the impairment, the severity and duration of the impairment, credit ratings, and other credit-related factors such as third-party guarantees and volatility of the security’s fair value. This assessment also includes a determination as to whether the Company intends to sell the security, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an other-than-temporary impairment (“OTTI”) write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. For debt securities that are considered to be OTTI and that the Company does not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, the amount of impairment is separated into the amount that is credit-related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is calculated as the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of the future expected cash flows is deemed to be due to factors that are not credit-related and is recognized in other comprehensive income. |
Securities Held-to-Maturity | Securities Held-to-Maturity Securities are classified as held-to-maturity if the Company has both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost adjusted for amortization of premium to the earliest callable call date and accretion of discount, computed by the effective interest method over the life of the related investment. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans are reported at the principal amount outstanding, net of deferred loan fees and costs and the allowance for loan losses. Interest on loans is accrued daily based on the principal outstanding. Loan fees, net of certain direct costs of origination, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. During the years ended December 31, 2021 and 2020, salaries and employee benefits totaling $ 5,198,000 3,194,000 Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Accrual of interest on loans is discontinued either when reasonable doubt exists as to the full and timely collection of interest or principal or when a loan becomes contractually past due by 90 days or more with respect to interest or principal. When a loan is placed on non-accrual status, all interest previously accrued, but not collected, is reversed against current period interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The allowance for loan losses represents the estimated probable incurred loan losses in the Company’s loan portfolio. The allowance for loan losses is established through a provision for loan losses charged to operations. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries of previously charged off amounts, if any, are credited to the allowance for loan losses. The allowance for loan losses is evaluated on a regular basis by management and is based on management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The Audit Committee of the board of directors reviews the adequacy of the allowance at least quarterly. The allowance consists of: (i) specific allowances for individually identified impaired loans (ASC 310-10, Receivables Contingencies – Loss Contingencies The first component, specific allowances, results from the analysis of identified problem credits and the evaluation of sources of repayment, including collateral, as applicable. Through management’s ongoing credit monitoring process, individual loans are identified that have conditions indicating the borrower may be unable to pay all amounts due in accordance with contractual terms. These loans are evaluated for impairment individually by management. Management considers an originated loan to be impaired when it is probable that collection of all amounts due according to the contractual terms of the loan agreement is unlikely. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Interest income is recognized on impaired loans in the same manner as non-accrual loans. When the fair value of the impaired loan is less than the recorded investment in the loan, the difference is recorded as an impairment through the establishment of a specific allowance. For loans determined to be impaired, the extent of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at origination, based on the loan’s observable market price, or based on the fair value of the collateral if the loan is collateral dependent or if foreclosure is imminent. Generally, with problem credits that are collateral dependent, management obtains appraisals of the collateral at least annually. Appraisals may be obtained more frequently if management believes the collateral value is subject to market volatility, if a specific event has occurred to the collateral, or if the Company believes foreclosure is imminent. The second component, general allowances, is an estimate of the probable inherent losses in each loan pool with similar risk characteristics. This analysis encompasses the entire loan portfolio, excluding individually identified impaired loans. The model determines general allowances by loan segment based on quantitative (loss history) and qualitative risk factors. The third component, unallocated allowances, is maintained to cover other uncertainties that could affect management’s estimate of probable losses. The unallocated allowances reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. While management believes the best information available is used to determine the allowance for loan losses, the results of operations could be significantly affected if circumstances differ substantially from the assumptions used in determining the allowance. A decline in local and national economic conditions, or significant changes in other assumptions, could result in a material increase in the allowance for loan losses and may adversely affect the Company’s financial condition and results of operations. While the Company believes the estimates and assumptions used in the determination of the adequacy of the allowance for loan losses are reasonable, there can be no assurance that such estimates and assumptions will not be proved incorrect in the future, that the actual amounts of future provisions will not exceed the amounts of past provisions, or that any increased provisions that may be required will not adversely impact the financial condition and results of operations of the Company. The Company considers a loan to be a troubled debt restructure (“TDR”) when the Company has granted a concession and the borrower is experiencing financial difficulty. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. A TDR loan generally is kept on non-accrual status until, among other criteria, the borrower has paid for six consecutive months with no payment defaults, at which time the TDR may be placed back on accrual status. In conjunction with the passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as well as the revised interagency guidance issued in April 2020, the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by the Coronavirus (Revised),” banks have been provided the option, for loans meeting specific criteria, to temporarily suspend certain requirements under GAAP related to TDRs for a limited time to account for the effects of COVID-19. As a result, the Company has not recognized eligible COVID-19 loan modifications as TDRs. The CARES Act, as amended by the Consolidated Appropriations Act, specified that COVID-19 related loan modifications executed between March 1, 2020 and the earlier of: (i) 60 days after the date of termination of the national emergency declared by the President; and (ii) January 1, 2022, on loans that were current as of December 31, 2019 are not TDRs. Additionally, loans qualifying for these modifications are not required to be reported as delinquent, non-accrual, impaired, or criticized solely as a result of a COVID-19 loan modification. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank stock represents the Company’s investment in the stock of the Federal Home Loan Bank of San Francisco (“FHLB”) and is carried at par value. While technically these are considered equity securities, there is no market for the FHLB stock. Therefore, the shares are considered as other investment securities. Management periodically evaluates FHLB stock for OTTI. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as: (i) the significance of any decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted; (ii) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (iii) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (iv) the liquidity position of the FHLB. Both cash and stock dividends are reported as non-interest income. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives using a straight-line basis. The normal estimated lives used in determining depreciation are as follows: Schedule of Useful Life of Premises and Equipment Equipment 3 12 years Furniture and Fixtures 5 10 years Leasehold Improvements 5 15 years Automobiles 3 5 years Leasehold improvements are amortized over the lesser of the useful life of the asset or the remaining term of the lease. The straight-line method of depreciation is followed for all assets for financial reporting purposes, but accelerated methods are used for tax purposes. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. |
Other Real Estate | Other Real Estate Real estate properties acquired through, or in lieu of, loan foreclosure, are classified as other real estate owned (OREO), are to be sold and are initially recorded at fair value of the property at the date of foreclosure less estimated selling costs. Any write-downs in value are recorded against the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed, and any revisions in the estimate of fair value are reported as adjustments to the carrying value of the real estate, provided the adjusted carrying amount does not exceed the original amount at foreclosure. Subsequent valuation adjustments are recognized as OREO write-downs. Revenues and expenses incurred from OREO property management are recorded in non-interest income and non-interest expense, respectively. During 2021 and 2020, the Bank did not foreclose on any loans. |
BOLI | BOLI BOLI is recorded at the amount that can be realized under the insurance contract at the consolidated balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Increases in contract value are recorded as non-interest income, and insurance proceeds received are recorded as a reduction of the contract value. |
Long-Term Assets | Long-Term Assets Premises, equipment, and other long-term assets are reviewed for impairment when events indicate that their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are adjusted to reflect their fair value. |
Equity Investments | Equity Investments Equity investments with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Equity investments without readily determinable fair values are carried at cost, less impairment, if any, and adjusted for changes resulting from observable price changes in orderly transactions for the identical or similar investment. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of an entire financial asset, a group of financial assets, or a participating interest in an entire financial asset, are accounted for as sales when control has been relinquished. Control is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of more than trivial conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Included in the loan portfolio are loans guaranteed by the Small Business Administration (“SBA”), the Farm Service Agency (“FSA”), the Federal Agriculture Mortgage Corporation (“Farmer Mac”) and the United States Department of Agriculture (“USDA”), of which the guaranteed portion is expected to be sold in the secondary market in exchange for a one-time premium. At the time the guaranteed portion of the loan is sold, the unguaranteed portion and related right to service the entire loan is retained with the Company, to earn future servicing income. The loans held for sale are accounted for at the lower of cost or fair value, using the aggregate method. Government guaranteed loans held for sale totaled $ 10,671,000 4,820,000 Servicing rights acquired through the origination of loans, which are subsequently sold with servicing rights retained, are recognized as separate assets or liabilities. Servicing assets and liabilities are initially recorded at fair value and are subsequently amortized in proportion to, and over the period of, the related net servicing income or expense. The amortized assets are assessed for impairment or increased obligations at the loan level, based on the fair value on a periodic basis. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance-sheet credit instruments, such as commitments to make loans, and financial standby letters of credit issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. 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. Reserves for unfunded commitments are included as a component of Interest payable and other liabilities on the consolidated balance sheets. |
Stock-Based Compensation | Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards (“RSAs”) issued to executives, directors, and employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the grant date fair value of stock options, while the fair value of the Company’s common stock at the date of grant is used for RSAs. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Supplemental Executive Retirement Plan | Supplemental Executive Retirement Plan The Bank has entered into a non-qualified retirement plan for the Chief Executive Officer based on a continuation of employment. The present value of annual post-retirement payments is allocated to expense over the years of required service. |
Income Taxes | Income Taxes The Company has historically elected to be taxed for U. S. federal income tax purposes as an S Corporation. In conjunction with the IPO, the Company filed consents from the requisite amount of shareholders to revoke its S Corporation election with the Internal Revenue Service (the “IRS”), resulting in the commencement of taxation as a C Corporation for U.S. federal and California state income tax purposes in the second quarter of fiscal year 2021. Upon termination of the Company’s S Corporation status, the Company commenced paying U.S. federal income tax and a higher California state income tax on taxable earnings for each year (including the short year beginning on the date the Company’s status as an S Corporation terminated). As a result of the termination of S Corporation status, deferred tax assets and liabilities were recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of the change in tax rates resulting from becoming a C Corporation was recognized in net income in the year ended December 31, 2021. The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Company accounts for uncertain tax positions in accordance with FASB ASC Topic No. 740, Accounting for Uncertainty in Income Taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood greater than 50% of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. |
Derivatives | Derivatives All derivative instruments are recorded at fair value. If derivative instruments are designated as hedges of fair values, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges, if any, are recorded in other comprehensive income or loss and reclassified to earnings when the hedged transaction is reflected in earnings. |
Comprehensive Income or Loss | Comprehensive Income or Loss Comprehensive income or loss consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available-for-sale, net of tax, which are also recognized as separate components of shareholders’ equity. |
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 RSAs. Diluted EPS includes the dilutive effect of additional potential common shares related to unvested RSAs using the treasury stock method. During the years ended December 31, 2021 and 2020, there were no outstanding stock options. The Company has two forms of outstanding common stock: common stock and unvested RSAs. Following the Company’s IPO, holders of unvested RSAs receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings; therefore the RSAs are considered participating securities. However, under the two-class method, the difference in EPS is not significant for these participating securities. Schedule of Earning Per Share (in thousands, except share and per share data) 2021 2020 Net income $ 42,441 $ 35,928 Weighted average basic common shares outstanding 14,972,637 10,063,183 Add: Dilutive effects of assumed vesting of restricted stock 22,576 — Weighted average diluted common shares outstanding 14,995,213 10,063,183 Income per common share: Basic EPS $ 2.83 $ 3.57 Diluted EPS $ 2.83 $ 3.57 Anti-dilutive shares, which are excluded from the dilutive EPS calculation, were deemed to be immaterial. For the year ended December 31, 2020, 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 year ended December 31, 2021, pro forma EPS is calculated by applying an effective tax rate of 19.80%, which is the actual effective tax rate, excluding the effects of the discrete deferred tax adjustment of $4,638,000, as discussed in Note 11, Income Taxes. The following reconciliation table provides a detailed calculation of pro forma EPS: Schedule of Pro forma Earning Per Share (in thousands, except share and per share data) 2021 2020 Net income before provision for income taxes - GAAP $ 47,148 $ 37,255 Actual/pro forma provision for income taxes (9,335 ) (11,013 ) Actual/pro forma net income 37,813 26,242 Weighted average basic common shares outstanding 14,972,637 10,063,183 Add: Dilutive effects of assumed vesting of restricted stock 22,576 — Weighted average diluted common shares outstanding 14,995,213 10,063,183 Income per common share: Basic EPS $ 2.53 $ 2.61 Diluted EPS $ 2.52 $ 2.61 |
Subordinated Notes | Subordinated Notes The subordinated notes are recorded at par with related debt issuance costs reported as a direct reduction from the carrying amount. Issuance costs are amortized over the remaining maturity of the notes and reflected in interest expense. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The consolidated financial statements include various estimated fair value information as of December 31, 2021 and 2020. Such information, which pertains to the Company’s financial instruments, does not purport to represent the aggregate net fair value of the Company. Further, the fair value estimates are based on various assumptions, methodologies, and subjective considerations, which vary widely among different financial institutions, and are subject to change. |
Fair Value Measurements | Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company bases the fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Securities available-for-sale, and derivatives, if any, are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record certain assets at fair value on a non-recurring basis, such as loans held for sale, certain collateral dependent impaired loans held for investment and held-to-maturity securities that are other-than-temporarily impaired. These non-recurring fair value adjustments typically involve write-downs of individual assets due to application of lower of cost or fair value accounting. 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 Level 2 Level 3 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). As a result, if other assumptions had been used, the Companys recorded earnings or disclosures could have been materially different from those reflected in these consolidated financial statements. |
Subsequent Events | Subsequent Events The Company has evaluated events and transactions subsequent to December 31, 2021 for recognition or disclosure. |
Reclassifications | Reclassifications Certain amounts reported in previous consolidated financial statements have been reclassified to conform to current year presentation. These reclassifications did not affect previously reported amounts of net income, total assets, or total shareholders’ equity. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Useful Life of Premises and Equipment | Schedule of Useful Life of Premises and Equipment |
Basis of Presentation | Equipment 3 12 years Furniture and Fixtures 5 10 years Leasehold Improvements 5 15 years Automobiles 3 5 years |
Schedule of Earning Per Share | Schedule of Earning Per Share |
Basis of Presentation (Details 2) | (in thousands, except share and per share data) 2021 2020 Net income $ 42,441 $ 35,928 Weighted average basic common shares outstanding 14,972,637 10,063,183 Add: Dilutive effects of assumed vesting of restricted stock 22,576 — Weighted average diluted common shares outstanding 14,995,213 10,063,183 Income per common share: Basic EPS $ 2.83 $ 3.57 Diluted EPS $ 2.83 $ 3.57 |
Schedule of Pro forma Earning Per Share | For the year ended December 31, 2020, 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 year ended December 31, 2021, pro forma EPS is calculated by applying an effective tax rate of 19.80%, which is the actual effective tax rate, excluding the effects of the discrete deferred tax adjustment of $4,638,000, as discussed in Note 11, Income Taxes. The following reconciliation table provides a detailed calculation of pro forma EPS: Schedule of Pro forma Earning Per Share |
Basis of Presentation (Details 3) | (in thousands, except share and per share data) 2021 2020 Net income before provision for income taxes - GAAP $ 47,148 $ 37,255 Actual/pro forma provision for income taxes (9,335 ) (11,013 ) Actual/pro forma net income 37,813 26,242 Weighted average basic common shares outstanding 14,972,637 10,063,183 Add: Dilutive effects of assumed vesting of restricted stock 22,576 — Weighted average diluted common shares outstanding 14,995,213 10,063,183 Income per common share: Basic EPS $ 2.53 $ 2.61 Diluted EPS $ 2.52 $ 2.61 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Securities Held-To-Maturity | A summary of the amortized cost and fair value related to securities held-to-maturity as of December 31, 2021 and 2020 is presented below. Schedule of Securities Held-To-Maturity |
Investment Securities | Gross Unrealized (in thousands) Amortized Cost Gains (Losses) Fair Value 2021 Obligations of states and political subdivisions 4,946 251 — 5,197 Total held-to-maturity $ 4,946 $ 251 $ — $ 5,197 2020 Obligations of states and political subdivisions 7,979 776 — 8,755 Total held-to-maturity $ 7,979 $ 776 $ — $ 8,755 |
Schedule of Securities Available-for-Sale | A summary of the amortized cost and fair value related to securities available-for-sale as of December 31, 2021 and 2020 is presented below. Schedule of Securities Available-for-Sale |
Investment Securities (Details 2) | Gross Unrealized (in thousands) Amortized Cost Gains (Losses) Fair Value 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 2020 U.S. government agencies $ 32,069 $ 111 $ (352 ) $ 31,828 Mortgage-backed securities 23,601 338 (7 ) 23,932 Obligations of states and political subdivisions 57,137 1,291 (8 ) 58,420 Collateralized mortgage obligations 748 21 — 769 Total available-for-sale $ 113,555 $ 1,761 $ (367 ) $ 114,949 |
Schedule of Investment Securities by Contractual Maturity | The amortized cost and fair value of investment debt securities by contractual maturity at December 31, 2021 and 2020 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. Schedule of Investment Securities by Contractual Maturity |
Investment Securities (Details 3) | 2021 2020 Held-to-Maturity Available-for-Sale Held-to-Maturity Available-for-Sale (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Within one year $ 491 $ 516 $ — $ — $ 494 $ 543 $ — $ — After one but within five years 951 999 507 522 2,143 2,351 1,141 1,206 After five years through ten years 3,504 3,682 3,697 3,748 2,755 3,023 8,340 8,599 After ten years — — 40,528 40,867 2,587 2,838 47,656 48,615 Investment securities not due at a single maturity date: U.S. government agencies — — 19,824 19,682 — — 32,069 31,828 Mortgage-backed securities — — 82,517 81,513 — — 23,601 23,932 Collateralized mortgage obligations — — 537 540 — — 748 769 Corporate bonds — — 2,000 1,935 — — — — Total $ 4,946 $ 5,197 $ 149,610 $ 148,807 $ 7,979 $ 8,755 $ 113,555 $ 114,949 |
Schedule of Investment Securities Available-for-Sale Gross Realized Gain and Losses | Sales proceeds of investment securities and gross realized gains and/or losses are shown in the following table: Schedule of Investment Securities Available-for-Sale Gross Realized Gain and Losses |
Investment Securities (Details 4) | (in thousands) 2021 2020 Available-for-sale: Sales proceeds $ 47,096 $ 46,406 Gross realized gains 724 1,438 |
Pledged investment securities | Pledged investment securities |
Investment Securities (Details 5) | (in thousands) 2021 2020 Pledged to the State of California: Secure deposits of public funds and borrowings $ 63,363 $ 52,897 Total pledged investment securities $ 63,363 $ 52,897 |
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 December 31, 2021 and 2020: | 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 December 31, 2021 and 2020: |
Investment Securities (Details 6) | < 12 continuous months ≥ 12 continuous months Total securities (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss 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 ) 2020 U.S. government agencies $ 10,800 $ (56 ) $ 15,195 $ (296 ) $ 25,995 $ (352 ) Mortgage-backed securities 1,786 (7 ) — — 1,786 (7 ) Obligations of states and political subdivisions 3,922 (8 ) — — 3,922 (8 ) Total temporarily impaired securities $ 16,508 $ (71 ) $ 15,195 $ (296 ) $ 31,703 $ (367 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | The following table presents the balance of each major product type within the Company’s portfolio as of the dates indicated. Schedule of Loan Portfolio |
Loans and Allowance for Loan Losses | (in thousands) 2021 2020 Real estate: Commercial $ 1,586,232 $ 1,002,497 Commercial land and development 7,376 10,600 Commercial construction 54,214 91,760 Residential construction 7,388 11,914 Residential 28,562 30,431 Farmland 54,805 50,164 Commercial: Secured 137,062 138,676 Unsecured 21,136 17,526 Paycheck Protection Program (“PPP”) 22,124 147,965 Consumer and other 17,167 4,921 Subtotal 1,936,066 1,506,454 Less: Net deferred loan fees 1,606 3,295 Less: Allowance for loan losses 23,243 22,189 Total loans, net $ 1,911,217 $ 1,480,970 |
Schedule of Loan by credit quality | The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2021: Schedule of Loan by credit quality (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 The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2020: (in thousands) Pass Watch Substandard Doubtful Total Real estate: Commercial $ 950,118 $ 16,836 $ 35,543 $ — $ 1,002,497 Commercial land and development 10,600 — — — 10,600 Commercial construction 85,860 5,900 — — 91,760 Residential construction 11,914 — — — 11,914 Residential 30,248 — 183 — 30,431 Farmland 50,164 — — — 50,164 Commercial: Secured 136,992 1,552 132 — 138,676 Unsecured 17,526 — — — 17,526 PPP 147,965 — — — 147,965 Consumer 4,921 — — — 4,921 Total $ 1,446,308 $ 24,288 $ 35,858 $ — $ 1,506,454 |
[custom:DisclosureLoansAndAllowanceForLoanLossesDetails2Abstract] | (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 The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2020: (in thousands) Pass Watch Substandard Doubtful Total Real estate: Commercial $ 950,118 $ 16,836 $ 35,543 $ — $ 1,002,497 Commercial land and development 10,600 — — — 10,600 Commercial construction 85,860 5,900 — — 91,760 Residential construction 11,914 — — — 11,914 Residential 30,248 — 183 — 30,431 Farmland 50,164 — — — 50,164 Commercial: Secured 136,992 1,552 132 — 138,676 Unsecured 17,526 — — — 17,526 PPP 147,965 — — — 147,965 Consumer 4,921 — — — 4,921 Total $ 1,446,308 $ 24,288 $ 35,858 $ — $ 1,506,454 |
Schedule of Age Analysis of Past Due Loan | The age analysis of past due loans by class as of December 31, 2021 consisted of the following: Schedule of Age Analysis of Past Due Loan Past Due (in thousands) 30-89 Days Greater Than 90 Days Total Past Due Current Total Loans Receivable 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 loans $ 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. The age analysis of past due loans by class as of December 31, 2020 consisted of the following: Past Due (in thousands) 30-89 Days Greater Than 90 Days Total Past Due Current Total Loans Receivable Real estate: Commercial $ — $ — $ — $ 1,002,497 $ 1,002,497 Commercial land and development — — — 10,600 10,600 Commercial construction — — — 91,760 91,760 Residential construction — — — 11,914 11,914 Residential — — — 30,431 30,431 Farmland — — — 50,164 50,164 Commercial: Secured — — — 138,676 138,676 Unsecured — — — 17,526 17,526 PPP — — — 147,965 147,965 Consumer and other 137 — 137 4,784 4,921 Total loans $ 137 $ — $ 137 $ 1,506,317 $ 1,506,454 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, 2020. |
[custom:DisclosureLoansAndAllowanceForLoanLossesDetails3Abstract] | Past Due (in thousands) 30-89 Days Greater Than 90 Days Total Past Due Current Total Loans Receivable 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 loans $ 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. The age analysis of past due loans by class as of December 31, 2020 consisted of the following: Past Due (in thousands) 30-89 Days Greater Than 90 Days Total Past Due Current Total Loans Receivable Real estate: Commercial $ — $ — $ — $ 1,002,497 $ 1,002,497 Commercial land and development — — — 10,600 10,600 Commercial construction — — — 91,760 91,760 Residential construction — — — 11,914 11,914 Residential — — — 30,431 30,431 Farmland — — — 50,164 50,164 Commercial: Secured — — — 138,676 138,676 Unsecured — — — 17,526 17,526 PPP — — — 147,965 147,965 Consumer and other 137 — 137 4,784 4,921 Total loans $ 137 $ — $ 137 $ 1,506,317 $ 1,506,454 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, 2020. |
Schedule of Impaired Loans by class of Loans | Information related to impaired loans as of December 31, 2021 and 2020 consisted of the following: Schedule of Impaired Loans by class of Loans |
Loans and Allowance for Loan Losses (Details 4) | (in thousands) Recorded Unpaid Related Average Interest 2021 Real estate: Commercial $ 122 $ 122 $ — $ 130 $ — Residential 178 178 — 181 — Commercial: Secured 288 288 172 306 — Total impaired loans $ 588 $ 588 $ 172 $ 617 $ — 2020 Real estate: Commercial $ 137 $ 137 $ — $ 69 $ — Residential 183 183 — 92 — Commercial: Secured 132 132 — 65 — Total impaired loans $ 452 $ 452 $ — $ 226 $ — |
Schedule of Nonaccural Loans, segregated by class | Non-accrual loans, segregated by class, are as follows as of December 31, 2021 and 2020: Schedule of Nonaccural Loans, segregated by class |
Loans and Allowance for Loan Losses (Details 5) | (in thousands) 2021 2020 Real estate: Commercial $ 122 $ 137 Residential 178 183 Commercial: Secured 288 132 Total non-accrual loans $ 588 $ 452 |
Schedule of activity in the allowance for loan losses | The following table discloses activity in the allowance for loan losses for the periods presented. Schedule of activity in the allowance for loan losses Real Estate Commercial (in thousands) Comml Comml Comml Resid Resid Farm- Secured Unsec PPP Consu Unal Total 2021 Beginning balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 Charge-offs — — — — — — (822 ) — — (321 ) — (1,143 ) Recoveries — — — — — — 263 — — 234 — 497 Provision (recapture) 3,511 (27 ) (450 ) (37 ) (28 ) 30 (2,058 ) 28 — 344 387 1,700 Ending balance $ 12,869 $ 50 $ 371 $ 50 $ 192 $ 645 $ 6,859 $ 207 $ — $ 889 $ 1,111 $ 23,243 2020 Beginning balance $ 6,331 $ 109 $ 661 $ 116 $ 224 $ 1,382 $ 4,976 $ 88 $ — $ 601 $ 427 $ 14,915 Charge-offs — — — — — — (1,604 ) — — (559 ) — (2,163 ) Recoveries — — — — 90 — 176 — — 171 — 437 Provision (recapture) 3,027 (32 ) 160 (29 ) (94 ) (767 ) 5,928 91 — 419 297 9,000 Ending balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 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 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 2020 Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 9,358 77 821 87 220 615 9,476 179 — 632 724 22,189 Ending balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 Loans: Ending balance individually evaluated for impairment $ 137 $ — $ — $ — $ 183 $ — $ 132 $ — $ — $ — $ — $ 452 Ending balance collectively evaluated for impairment 1,002,360 10,600 91,760 11,914 30,248 50,164 138,544 17,526 147,965 4,921 — 1,506,002 Ending balance $ 1,002,497 $ 10,600 $ 91,760 $ 11,914 $ 30,431 $ 50,164 $ 138,676 $ 17,526 $ 147,965 $ 4,921 $ — $ 1,506,454 |
[custom:DisclosureLoansAndAllowanceForLoanLossesDetails6Abstract] | Real Estate Commercial (in thousands) Comml Comml Comml Resid Resid Farm- Secured Unsec PPP Consu Unal Total 2021 Beginning balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 Charge-offs — — — — — — (822 ) — — (321 ) — (1,143 ) Recoveries — — — — — — 263 — — 234 — 497 Provision (recapture) 3,511 (27 ) (450 ) (37 ) (28 ) 30 (2,058 ) 28 — 344 387 1,700 Ending balance $ 12,869 $ 50 $ 371 $ 50 $ 192 $ 645 $ 6,859 $ 207 $ — $ 889 $ 1,111 $ 23,243 2020 Beginning balance $ 6,331 $ 109 $ 661 $ 116 $ 224 $ 1,382 $ 4,976 $ 88 $ — $ 601 $ 427 $ 14,915 Charge-offs — — — — — — (1,604 ) — — (559 ) — (2,163 ) Recoveries — — — — 90 — 176 — — 171 — 437 Provision (recapture) 3,027 (32 ) 160 (29 ) (94 ) (767 ) 5,928 91 — 419 297 9,000 Ending balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 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 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 2020 Ending allowance balance allocated to: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 9,358 77 821 87 220 615 9,476 179 — 632 724 22,189 Ending balance $ 9,358 $ 77 $ 821 $ 87 $ 220 $ 615 $ 9,476 $ 179 $ — $ 632 $ 724 $ 22,189 Loans: Ending balance individually evaluated for impairment $ 137 $ — $ — $ — $ 183 $ — $ 132 $ — $ — $ — $ — $ 452 Ending balance collectively evaluated for impairment 1,002,360 10,600 91,760 11,914 30,248 50,164 138,544 17,526 147,965 4,921 — 1,506,002 Ending balance $ 1,002,497 $ 10,600 $ 91,760 $ 11,914 $ 30,431 $ 50,164 $ 138,676 $ 17,526 $ 147,965 $ 4,921 $ — $ 1,506,454 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment, net, were as follows as of December 31, 2021 and 2020: Schedule of Premises and Equipment |
Premises and Equipment, Net | (in thousands) 2021 2020 Furniture, fixtures, and equipment $ 3,314 $ 3,057 Tenant improvements 1,973 2,027 Premises and Equipment, Gross 5,287 5,084 Less: Accumulated depreciation and amortization 3,514 3,421 Premises and equipment, net $ 1,773 $ 1,663 |
Interest Receivable and Other_2
Interest Receivable and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interest Receivable And Other Assets | |
Interest receivable and other assets | Interest receivable and other assets |
Interest Receivable and Other Assets | (in thousands) 2021 2020 Interest receivable $ 5,332 $ 5,422 Equity investments 5,741 3,757 Servicing assets 2,215 2,083 Other assets 8,340 3,030 Interest Receivable and Other Assets $ 21,628 $ 14,292 |
Interest-Bearing Deposits (Tabl
Interest-Bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interest-bearing Deposits | |
Schedule of Interest-bearing deposits | Interest-bearing deposits consisted of the following as of December 31, 2021 and 2020: Schedule of Interest-bearing deposits |
Interest Bearing Deposits | (in thousands) 2021 2020 Savings $ 88,536 $ 49,714 Money market 912,558 839,053 Interest checking accounts 278,406 146,553 Time, $250 or more 77,868 7,568 Other time 26,404 40,034 Total interest-bearing deposits $ 1,383,772 $ 1,082,922 |
Schedule of Maturities of Time Deposits | Schedule of Maturities of Time Deposits |
Interest Bearing Deposits (Details 2) | (in thousands) 2022 $ 103,334 2023 911 2024 26 2025 — 2026 1 Total time deposits $ 104,272 |
Schedule of Composition of Network Deposits | Schedule of Composition of Network Deposits |
Interest Bearing Deposits (Details 3) | (in thousands) 2021 2020 CDARS $ 22,411 $ 35,534 ICS 307,636 261,127 Total network deposits $ 330,047 $ 296,661 |
Interest expense recognized on interest-bearing deposits | Interest expense recognized on interest-bearing deposits |
Interest Bearing Deposits (Details 4) | (in thousands) 2021 2020 Savings $ 74 $ 94 Money market 1,797 5,750 Interest checking accounts 155 374 Time, $250 or more 42 797 Other time 131 392 Total interest expense on interest-bearing deposits $ 2,199 $ 7,407 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
The provision for income tax | The provision for income tax |
Income Taxes | (in thousands) 2021 2020 Statutory U.S. federal income tax $ 9,901 $ 7,824 Increase (decrease) resulting from: Benefit of S Corporation status (4,884 ) (7,824 ) State taxes 4,045 1,327 Deferred tax asset adjustment (4,638 ) — Other 283 — Provision for income taxes $ 4,707 $ 1,327 |
The components of the consolidated provision for income taxes | The components of the consolidated provision for income taxes |
Income Taxes (Details 2) | (in thousands) 2021 2020 Current tax expense Federal $ 6,178 $ — State 2,530 1,468 Current $ 8,708 $ 1,468 Deferred tax benefit Federal $ (3,561 ) $ — State (440 ) (141 ) Deferred $ (4,001 ) (141 ) Provision for income taxes $ 4,707 $ 1,327 |
Deferred tax assets and liabilities | Deferred tax assets and liabilities |
Income Taxes (Details 3) | (in thousands) 2021 2020 Deferred tax assets: Allowance for credit losses $ 7,398 $ 777 Supplemental employee retirement plan 521 52 Gain on available-for-sale assets 151 5 Net unrealized loss on securities available-for-sale 237 — Accrual to cash adjustment — 13 Depreciation — 43 Other 562 — Deferred tax assets 8,869 890 Deferred tax liabilities: Deferred loan fees (2,927 ) (177 ) Net unrealized gain on securities available-for-sale — (49 ) State tax (379 ) — Depreciation (419 ) — Other (228 ) (31 ) Deferred tax liabilities (3,953 ) (257 ) Net deferred tax asset $ 4,916 $ 633 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Schedule of Related Party Transactions |
Related Party Transactions | (in thousands) 2021 2020 Beginning balance $ 2,048 $ 1,348 New loans or advance 7,828 280 Loans issued in prior years to new related parties — 695 Repayments (458 ) (275 ) Ending balance $ 9,418 $ 2,048 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
table summarizes information about unvested restricted shares | The following table summarizes information about unvested restricted shares |
Equity Incentive Plan | 2021 2020 Shares Weighted Shares Weighted Beginning of the period balance 11,568 $ 21.25 15,794 $ 21.03 Shares granted 174,347 19.97 11,398 20.14 Shares vested (53,642 ) 20.35 (15,624 ) 20.23 Shares forfeited (4,522 ) 19.33 — — End of the period balance 127,751 $ 19.95 11,568 $ 21.25 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Unfunded Loan Commitments and Standby Letter of Credit | Schedule of Unfunded Loan Commitments and Standby Letter of Credit |
Commitments and Contingencies | (in thousands) 2021 2020 Commercial lines of credit $ 137,354 $ 107,231 Undisbursed construction loans 46,584 50,442 Undisbursed commercial real estate loans 47,793 39,946 Agricultural lines of credit 9,955 11,553 Undisbursed agricultural real estate loans 3,427 5,945 Other 3,764 920 Total commitments and standby letters of credit $ 248,877 $ 216,037 |
Schedule of Future Minimum Lease Payment and Weighted Average Remaining Lease | The following table shows the future minimum lease payments and weighted average remaining lease terms under the Company’s operating lease arrangements as of December 31, 2021. Schedule of Future Minimum Lease Payment and Weighted Average Remaining Lease |
Commitments and Contingencies (Details 2) | (in thousands) 2022 $ 1,025 2023 978 2024 951 2025 733 2026 604 Thereafter 1,094 Total $ 5,385 Weighted average remaining term (in years) 4.64 |
Capital Requirements and Rest_2
Capital Requirements and Restrictions on Retained Earnings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the following table: | The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the following table: |
Capital Requirements and Restrictions on Retained Earnings | Capital Ratios for Bancorp Actual Ratio Required for Capital Adequacy Purposes 1 Ratio to be Well- Capitalized under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio 2021 Total capital (to risk-weighted assets) $ 285,128 13.98% $ 163,177 ≥ 8.00% N/A N/A Tier 1 capital (to risk-weighted assets) $ 233,397 11.44% $ 122,382 ≥ 6.00% N/A N/A Common equity tier 1 capital (to risk-weighted assets) $ 233,397 11.44% $ 91,787 ≥ 4.50% N/A N/A Tier 1 leverage $ 233,397 9.47% $ 98,600 ≥ 4.00% N/A N/A 2020 Total capital (to risk-weighted assets) $ 176,861 12.18% $ 116,138 ≥ 8.00% N/A N/A Tier 1 capital (to risk-weighted assets) $ 130,347 8.98% $ 87,103 ≥ 6.00% N/A N/A Common equity tier 1 capital (to risk-weighted assets) $ 130,347 8.98% $ 65,327 ≥ 4.50% N/A N/A Tier 1 leverage $ 130,347 6.58% $ 79,204 ≥ 4.00% N/A N/A Capital Ratios for the Bank Actual Ratio Required for Capital Adequacy Purposes Ratio to be Well- Capitalized under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio 2021 Total capital (to risk-weighted assets) $ 279,152 13.69% $ 163,078 ≥ 8.00% $ 203,848 ≥ 10.00 Tier 1 capital (to risk-weighted assets) $ 255,807 12.55% $ 122,309 ≥ 6.00% $ 163,078 ≥ 8.00% Common equity tier 1 capital (to risk-weighted assets) $ 255,807 12.55% $ 91,731 ≥ 4.50% $ 132,501 ≥ 6.50 Tier 1 leverage $ 255,807 10.38% $ 98,555 ≥ 4.00% $ 123,193 ≥ 5.00 2020 Total capital (to risk-weighted assets) $ 174,002 11.99 $ 116,114 ≥ 8.00 $ 145,143 ≥ 10.00 Tier 1 capital (to risk-weighted assets) $ 155,808 10.73% $ 87,086 ≥ 6.00% $ 116,114 ≥ 8.00 Common equity tier 1 capital (to risk-weighted assets) $ 155,808 10.73 $ 65,314 ≥ 4.50% $ 94,343 ≥ 6.50 Tier 1 leverage $ 155,808 7.87% $ 79,199 ≥ 4.00% $ 98,998 ≥ 5.00% |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities on Recurring Basis | The following table summarizes the Companys assets and liabilities that were carried at fair value on a recurring basis. Schedule of Fair Value Assets and Liabilities on Recurring Basis |
Fair Value of Assets and Liabilities | (in thousands) Carrying Quoted Prices in Significant Significant Measurement 1 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 2020 Assets: Securities available-for-sale: U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, and collateralized mortgage obligations $ 114,949 $ — $ 114,949 $ — OCI Derivatives – interest rate swap 149 — 149 — NI Liabilities: Derivatives – interest rate swap 149 — 149 $ — NI |
Schedule of fair value estimates for financial instruments | Schedule of fair value estimates for financial instruments |
Fair Value of Assets and Liabilities (Details 2) | December 31, 2021 December 31, 2020 (in thousands) Carrying Fair Fair Value Carrying Fair Fair Value Financial assets: Cash and cash equivalents $ 425,329 $ 425,329 Level 1 $ 290,493 $ 290,493 Level 1 Time deposits in banks 14,464 14,464 Level 1 23,705 23,705 Level 1 Securities available-for-sale 148,807 148,807 Level 2 114,949 114,949 Level 2 Securities held-to-maturity 4,946 5,197 Level 3 7,979 8,755 Level 3 Loans held for sale 10,671 11,217 Level 2 4,820 5,012 Level 2 Loans held for investment 1,911,217 1,893,431 Level 3 1,480,970 1,464,794 Level 3 FHLB stock and other investments 12,464 N/A N/A 9,989 N/A N/A Interest receivable 5,332 5,332 Level 2 5,422 5,422 Level 2 Interest rate swap 92 92 Level 2 149 149 Level 2 Financial liabilities: Deposits 2,285,890 2,210,555 Level 2 1,784,001 1,785,944 Level 2 Interest payable 23 23 Level 2 75 75 Level 2 Interest rate swap 92 92 Level 2 149 149 Level 2 Subordinated notes 28,386 28,386 Level 3 28,320 28,320 Level 3 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS December 31, 2021 and 2020 (In thousands) |
Parent Company Only Condensed Financial Information | 2021 2020 ASSETS Cash and cash equivalents $ 5,636 $ 3,555 Investment in banking subsidiary 257,456 159,236 Other assets 922 291 Total assets $ 264,014 $ 163,082 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated notes and other liabilities $ 28,968 $ 29,307 Shareholders’ equity 235,046 133,775 Total liabilities and shareholders’ equity $ 264,014 $ 163,082 |
CONDENSED STATEMENTS OF INCOME | CONDENSED STATEMENTS OF INCOME Years ended December 31, 2021 and 2020 (In thousands) |
Parent Company Only Condensed Financial Information (Details 2) | 2021 2020 Dividends from banking subsidiary $ 27,630 $ 28,077 Interest expense 1,773 1,773 Other expense 3,559 1,023 Income before income tax and undistributed banking subsidiary income 22,298 25,281 Income tax benefit 812 10 Equity in undistributed banking subsidiary income 19,331 10,637 Net income $ 42,441 $ 35,928 |
CONDENSED STATEMENTS OF CASH FLOWS | CONDENSED STATEMENTS OF CASH FLOWS Years ended December 31, 2021 and 2020 |
Parent Company Only Condensed Financial Information (Details 3) | 2021 2020 Cash flows from operating activities: Net income $ 42,441 $ 35,928 Adjustments to reconcile net income to net cash provided by operating activities: Stock compensation expense 594 316 Stock issued to directors 846 252 Equity in undistributed banking subsidiary income (19,331 ) (10,637 ) Amortization of subordinated notes issuance costs 66 67 Change in other assets (631 ) (203 ) Change in accrued expenses and other liabilities (405 ) 514 Net cash provided by operating activities 23,580 26,237 Cash flows from investing activities: Investment in subsidiary (80,800 ) (13,500 ) Net cash used in investing activities (80,800 ) (13,500 ) Cash flows from financing activities: Proceeds from sale of stock 111,243 13,400 Cash dividends paid (51,942 ) (26,369 ) Net cash provided by financing activities 59,301 (12,969 ) Net change in cash and cash equivalents 2,081 (232 ) Cash and cash equivalents at beginning of period 3,555 3,787 Cash and cash equivalents at end of period $ 5,636 $ 3,555 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Land Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Land Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Automobiles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Automobiles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Basis of Presentation (Details
Basis of Presentation (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net income | $ 42,441 | $ 35,928 |
Weighted average basic common shares outstanding | 14,972,637 | 10,063,183 |
Add: Dilutive effects of assumed vesting of restricted stock | 22,576 | |
Weighted average diluted common shares outstanding | 14,995,213 | 10,063,183 |
Income per common share: | ||
Basic EPS | $ 2.83 | $ 3.57 |
Diluted EPS | $ 2.83 | $ 3.57 |
Basis of Presentation (Detail_2
Basis of Presentation (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net income before provision for income taxes - GAAP | $ 47,148 | $ 37,255 |
Actual/pro forma provision for income taxes | (9,335) | (11,013) |
Actual/pro forma net income | $ 37,813 | $ 26,242 |
Weighted average basic common shares outstanding | 14,972,637 | 10,063,183 |
Add: Dilutive effects of assumed vesting of restricted stock | 22,576 | |
Weighted average diluted common shares outstanding | 14,995,213 | 10,063,183 |
Income per common share: | ||
Basic EPS | $ 2.53 | $ 2.61 |
Diluted EPS | $ 2.52 | $ 2.61 |
Basis of Presentation (Detail_3
Basis of Presentation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 07, 2021 | May 05, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from Loan Originations | $ 426,882 | $ 330,837 | ||
Financing Receivable, Held-for-Sale, Not Part of Disposal Group, after Valuation Allowance | 10,671 | 4,820 | ||
Salaries And Employee Benefit [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Proceeds from Loan Originations | $ 5,198 | $ 3,194 | ||
IPO [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of Stock, Description of Transaction | The Company publicly filed a Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with its IPO (the “Registration Statement”), which 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 $111,243,000. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $109,082,000. | |||
Sale of Stock, Number of Shares Issued in Transaction | 6,054,750 | |||
Sale of Stock, Price Per Share | $ 20 | |||
Sale of Stock, Consideration Received Per Transaction | $ 111,243 | |||
Sale of Stock, Consideration Received on Transaction | $ 109,082 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Marketable Securities [Line Items] | ||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | $ 4,946 | $ 7,979 |
Debt Securities, Held-to-maturity, Fair Value | 5,197 | 8,755 |
Held to Maturity Securities Gross Unrealized Gains | 251 | 776 |
Held to Maturity Securities Gross Unrealized Loss | ||
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | 4,946 | 7,979 |
Debt Securities, Held-to-maturity, Fair Value | 5,197 | 8,755 |
Held to Maturity Securities Gross Unrealized Gains | 251 | 776 |
Held to Maturity Securities Gross Unrealized Loss |
Investment Securities (Details
Investment Securities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 149,610 | $ 113,555 |
Available-for-sale Securities | 148,807 | 114,949 |
Available-for-sale Securities, Gross Unrealized Gain | 682 | 1,761 |
Available-for-sale Securities, Gross Unrealized Loss | 1,485 | (367) |
Available-for-sale Securities, Gross Unrealized Loss | (1,485) | 367 |
US Government Agencies Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 19,824 | 32,069 |
Available-for-sale Securities | 19,682 | 31,828 |
Available-for-sale Securities, Gross Unrealized Gain | 60 | 111 |
Available-for-sale Securities, Gross Unrealized Loss | (202) | (352) |
Available-for-sale Securities, Gross Unrealized Loss | 202 | 352 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 82,517 | 23,601 |
Available-for-sale Securities | 81,513 | 23,932 |
Available-for-sale Securities, Gross Unrealized Gain | 94 | 338 |
Available-for-sale Securities, Gross Unrealized Loss | (1,098) | (7) |
Available-for-sale Securities, Gross Unrealized Loss | 1,098 | 7 |
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 44,732 | 57,137 |
Available-for-sale Securities | 45,137 | 58,420 |
Available-for-sale Securities, Gross Unrealized Gain | 525 | 1,291 |
Available-for-sale Securities, Gross Unrealized Loss | (120) | (8) |
Available-for-sale Securities, Gross Unrealized Loss | 120 | 8 |
Collateralized Debt Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 537 | 748 |
Available-for-sale Securities | 540 | 769 |
Available-for-sale Securities, Gross Unrealized Gain | 3 | 21 |
Available-for-sale Securities, Gross Unrealized Loss | ||
Available-for-sale Securities, Gross Unrealized Loss | ||
Corporate Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,000 | |
Available-for-sale Securities | 1,935 | |
Available-for-sale Securities, Gross Unrealized Gain | ||
Available-for-sale Securities, Gross Unrealized Loss | (65) | |
Available-for-sale Securities, Gross Unrealized Loss | $ 65 |
Investment Securities (Detail_2
Investment Securities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, Year One | $ 491 | $ 494 |
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, Year One | 516 | 543 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, Year One | ||
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, Year One | ||
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, after Year One through Five | 951 | 2,143 |
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five | 999 | 2,351 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five | 507 | 1,141 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five | 522 | 1,206 |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, after Year Five through Ten | 3,504 | 2,755 |
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 | 3,682 | 3,023 |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 | 3,697 | 8,340 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 | 3,748 | 8,599 |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, after Year 10 | 2,587 | |
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10 | 2,838 | |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 10 | 40,528 | 47,656 |
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10 | 40,867 | 48,615 |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | 4,946 | 7,979 |
Debt Securities, Held-to-maturity, Fair Value | 5,197 | 8,755 |
Available-for-sale Securities, Amortized Cost Basis | 149,610 | 113,555 |
Available-for-sale Securities | 148,807 | 114,949 |
US Government Agencies Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Available-for-sale Securities, Amortized Cost Basis | 19,824 | 32,069 |
Available-for-sale Securities | 19,682 | 31,828 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Marketable Securities [Line Items] | ||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Available-for-sale Securities, Amortized Cost Basis | 82,517 | 23,601 |
Available-for-sale Securities | 81,513 | 23,932 |
Collateralized Debt Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Available-for-sale Securities, Amortized Cost Basis | 537 | 748 |
Available-for-sale Securities | 540 | 769 |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Available-for-sale Securities, Amortized Cost Basis | 2,000 | |
Available-for-sale Securities | $ 1,935 |
Investment Securities (Detail_3
Investment Securities (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sales proceeds | $ 47,096 | $ 46,406 |
Gross realized gains | $ 724 | $ 1,438 |
Investment Securities (Detail_4
Investment Securities (Details 5) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Pledged Assets Separately Reported, Mortgage-Related Securities Available-for-sale or Held-for-investment | $ 63,363 | $ 52,897 |
California [Member] | ||
Pledged Assets Separately Reported, Mortgage-Related Securities Available-for-sale or Held-for-investment | $ 63,363 | $ 52,897 |
Investment Securities (Detail_5
Investment Securities (Details 6) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 89,921 | $ 16,508 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,223) | (71) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 15,206 | 15,195 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (262) | (296) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 105,127 | 31,703 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (1,485) | (367) |
US Government Agencies Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10,800 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (56) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 13,399 | 15,195 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (202) | (296) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 13,399 | 25,995 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (202) | (352) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 73,972 | 1,786 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,046) | (7) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,400 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (52) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 75,372 | 1,786 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (1,098) | (7) |
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 14,014 | 3,922 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (112) | (8) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 407 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (8) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 14,421 | 3,922 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (120) | $ (8) |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,935 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (65) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,935 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ (65) |
Investment Securities (Detail_6
Investment Securities (Details Narrative) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)Number | Dec. 31, 2020USD ($)Number | |
Investments, Debt and Equity Securities [Abstract] | ||
No. Of Securities, With Gross Unrealized Losses | 91 | 31 |
No. Of Securities, With Gross Unrealized Losses, Less Than 12 Months | 16 | |
No. Of Securities, With Gross Unrealized Losses, More Than 12 Months | 75 | |
Federal Home Loan Bank Stock | $ | $ 6,723 | $ 6,232 |
FHLB Stock Dividends | $ | $ 372 | $ 321 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | $ 1,936,066 | $ 1,506,454 | |
Less: Net deferred loan fees | 1,606 | 3,295 | |
Less: Allowance for loan losses | 23,243 | 22,189 | $ 14,915 |
Total loans, net | 1,911,217 | 1,480,970 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 1,586,232 | 1,002,497 | |
Less: Allowance for loan losses | 12,869 | 9,358 | 6,331 |
Real Estate Commercial Land and Development [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 7,376 | 10,600 | |
Less: Allowance for loan losses | 50 | 77 | 109 |
Real Estate Commercial Construction Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 54,214 | 91,760 | |
Less: Allowance for loan losses | 371 | 821 | 661 |
Real Estate Residential Construction Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 7,388 | 11,914 | |
Less: Allowance for loan losses | 50 | 87 | 116 |
Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 28,562 | 30,431 | |
Less: Allowance for loan losses | 192 | 220 | 224 |
Real Estate Farmland [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 54,805 | 50,164 | |
Less: Allowance for loan losses | 645 | 615 | 1,382 |
Secured Debt [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 137,062 | 138,676 | |
Less: Allowance for loan losses | 6,859 | 9,476 | 4,976 |
Unsecured Debt [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 21,136 | 17,526 | |
Less: Allowance for loan losses | 207 | 179 | 88 |
Paycheck Protection Program ("PPP") [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 22,124 | 147,965 | |
Less: Allowance for loan losses | |||
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Consumer and other | 17,167 | 4,921 | |
Less: Allowance for loan losses | $ 889 | $ 632 | $ 601 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,936,066 | $ 1,506,454 |
Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,916,805 | 1,446,308 |
Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 8,647 | 24,288 |
Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 10,614 | 35,858 |
Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,586,232 | 1,002,497 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,575,006 | 950,118 |
Commercial Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,970 | 16,836 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 9,256 | 35,543 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Commercial Land and Development [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7,376 | 10,600 |
Real Estate Commercial Land and Development [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7,376 | 10,600 |
Real Estate Commercial Land and Development [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Commercial Land and Development [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Commercial Land and Development [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Commercial Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 54,214 | 91,760 |
Real Estate Commercial Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 48,288 | 85,860 |
Real Estate Commercial Construction Loans [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,926 | 5,900 |
Real Estate Commercial Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Commercial Construction Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Residential Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7,388 | 11,914 |
Real Estate Residential Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 7,388 | 11,914 |
Real Estate Residential Construction Loans [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Residential Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Residential Construction Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 28,562 | 30,431 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 28,384 | 30,248 |
Residential Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 178 | 183 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 54,805 | 50,164 |
Real Estate Farmland [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 54,805 | 50,164 |
Real Estate Farmland [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Farmland [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Real Estate Farmland [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Secured Debt [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 137,062 | 138,676 |
Secured Debt [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 135,131 | 136,992 |
Secured Debt [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 751 | 1,552 |
Secured Debt [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 1,180 | 132 |
Secured Debt [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Unsecured Debt [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 21,136 | 17,526 |
Unsecured Debt [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 21,136 | 17,526 |
Unsecured Debt [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Unsecured Debt [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Unsecured Debt [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Paycheck Protection Program ("PPP") [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 22,124 | 147,965 |
Paycheck Protection Program ("PPP") [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 22,124 | 147,965 |
Paycheck Protection Program ("PPP") [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Paycheck Protection Program ("PPP") [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Paycheck Protection Program ("PPP") [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,167 | 4,921 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 17,167 | 4,921 |
Consumer Portfolio Segment [Member] | Watch [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total | ||
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 1,936,066 | $ 1,506,454 |
Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 334 | 137 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 334 | 137 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,935,732 | 1,506,317 |
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,586,232 | 1,002,497 |
Commercial Real Estate [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Commercial Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Commercial Real Estate [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Commercial Real Estate [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,586,232 | 1,002,497 |
Real Estate Commercial Land and Development [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,376 | 10,600 |
Real Estate Commercial Land and Development [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Commercial Land and Development [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Commercial Land and Development [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Commercial Land and Development [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,376 | 10,600 |
Real Estate Commercial Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 54,214 | 91,760 |
Real Estate Commercial Construction Loans [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Commercial Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Commercial Construction Loans [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Commercial Construction Loans [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 54,214 | 91,760 |
Real Estate Residential Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,388 | 11,914 |
Real Estate Residential Construction Loans [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Residential Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Residential Construction Loans [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Residential Construction Loans [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,388 | 11,914 |
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 28,562 | 30,431 |
Residential Real Estate [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Residential Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Residential Real Estate [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Residential Real Estate [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 28,562 | 30,431 |
Real Estate Farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 54,805 | 50,164 |
Real Estate Farmland [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Farmland [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Farmland [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Real Estate Farmland [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 54,805 | 50,164 |
Secured Debt [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 137,062 | 138,676 |
Secured Debt [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Secured Debt [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Secured Debt [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Secured Debt [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 137,062 | 138,676 |
Unsecured Debt [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 21,136 | 17,526 |
Unsecured Debt [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Unsecured Debt [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Unsecured Debt [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Unsecured Debt [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 21,136 | 17,526 |
Paycheck Protection Program ("PPP") [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 22,124 | 147,965 |
Paycheck Protection Program ("PPP") [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Paycheck Protection Program ("PPP") [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Paycheck Protection Program ("PPP") [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Paycheck Protection Program ("PPP") [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 22,124 | 147,965 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 17,167 | 4,921 |
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 334 | 137 |
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | ||
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 334 | 137 |
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 16,833 | $ 4,784 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | $ 588 | $ 452 |
Impaired Financing Receivable, Unpaid Principal Balance | 588 | 452 |
Impaired Financing Receivable, Related Allowance | 172 | |
Impaired Financing Receivable, Average Recorded Investment | 617 | 226 |
Impaired Financing Receivable, Interest Income, Accrual Method | ||
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 122 | 137 |
Impaired Financing Receivable, Unpaid Principal Balance | 122 | 137 |
Impaired Financing Receivable, Related Allowance | ||
Impaired Financing Receivable, Average Recorded Investment | 130 | 69 |
Impaired Financing Receivable, Interest Income, Accrual Method | ||
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 178 | 183 |
Impaired Financing Receivable, Unpaid Principal Balance | 178 | 183 |
Impaired Financing Receivable, Related Allowance | ||
Impaired Financing Receivable, Average Recorded Investment | 181 | 92 |
Impaired Financing Receivable, Interest Income, Accrual Method | ||
Secured Debt [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | 288 | 132 |
Impaired Financing Receivable, Unpaid Principal Balance | 288 | 132 |
Impaired Financing Receivable, Related Allowance | 172 | |
Impaired Financing Receivable, Average Recorded Investment | 306 | 65 |
Impaired Financing Receivable, Interest Income, Accrual Method |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | $ 588 | $ 452 |
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 122 | 137 |
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 178 | 183 |
Secured Debt [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | $ 288 | $ 132 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | $ 22,189 | $ 14,915 |
Charge-offs | (1,143) | (2,163) |
Recoveries | 497 | 437 |
Provision (recapture) | 1,700 | 9,000 |
Ending balance | 23,243 | 22,189 |
Loans individually evaluated for impairment | 172 | |
Loans collectively evaluated for impairment | 23,071 | 22,189 |
Ending balance | 23,243 | 22,189 |
Ending balance individually evaluated for impairment | 588 | 452 |
Ending balance collectively evaluated for impairment | 1,935,478 | 1,506,002 |
Consumer and other | 1,936,066 | 1,506,454 |
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 9,358 | 6,331 |
Charge-offs | ||
Recoveries | ||
Provision (recapture) | 3,511 | 3,027 |
Ending balance | 12,869 | 9,358 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 12,869 | 9,358 |
Ending balance | 12,869 | 9,358 |
Ending balance individually evaluated for impairment | 122 | 137 |
Ending balance collectively evaluated for impairment | 1,586,110 | 1,002,360 |
Consumer and other | 1,586,232 | 1,002,497 |
Real Estate Commercial Land and Development [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 77 | 109 |
Charge-offs | ||
Recoveries | ||
Provision (recapture) | (27) | (32) |
Ending balance | 50 | 77 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 50 | 77 |
Ending balance | 50 | 77 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 7,376 | 10,600 |
Consumer and other | 7,376 | 10,600 |
Real Estate Commercial Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 821 | 661 |
Charge-offs | ||
Recoveries | ||
Provision (recapture) | (450) | 160 |
Ending balance | 371 | 821 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 371 | 821 |
Ending balance | 371 | 821 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 54,214 | 91,760 |
Consumer and other | 54,214 | 91,760 |
Real Estate Residential Construction Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 87 | 116 |
Charge-offs | ||
Recoveries | ||
Provision (recapture) | (37) | (29) |
Ending balance | 50 | 87 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 50 | 87 |
Ending balance | 50 | 87 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 7,388 | 11,914 |
Consumer and other | 7,388 | 11,914 |
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 220 | 224 |
Charge-offs | ||
Recoveries | 90 | |
Provision (recapture) | (28) | (94) |
Ending balance | 192 | 220 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 192 | 220 |
Ending balance | 192 | 220 |
Ending balance individually evaluated for impairment | 178 | 183 |
Ending balance collectively evaluated for impairment | 28,384 | 30,248 |
Consumer and other | 28,562 | 30,431 |
Real Estate Farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 615 | 1,382 |
Charge-offs | ||
Recoveries | ||
Provision (recapture) | 30 | (767) |
Ending balance | 645 | 615 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 645 | 615 |
Ending balance | 645 | 615 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 54,805 | 50,164 |
Consumer and other | 54,805 | 50,164 |
Secured Debt [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 9,476 | 4,976 |
Charge-offs | (822) | (1,604) |
Recoveries | 263 | 176 |
Provision (recapture) | (2,058) | 5,928 |
Ending balance | 6,859 | 9,476 |
Loans individually evaluated for impairment | 172 | |
Loans collectively evaluated for impairment | 6,687 | 9,476 |
Ending balance | 6,859 | 9,476 |
Ending balance individually evaluated for impairment | 288 | 132 |
Ending balance collectively evaluated for impairment | 136,774 | 138,544 |
Consumer and other | 137,062 | 138,676 |
Unsecured Debt [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 179 | 88 |
Charge-offs | ||
Recoveries | ||
Provision (recapture) | 28 | 91 |
Ending balance | 207 | 179 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 207 | 179 |
Ending balance | 207 | 179 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 21,136 | 17,526 |
Consumer and other | 21,136 | 17,526 |
Paycheck Protection Program ("PPP") [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | ||
Charge-offs | ||
Recoveries | ||
Provision (recapture) | ||
Ending balance | ||
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | ||
Ending balance | ||
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 22,124 | 147,965 |
Consumer and other | 22,124 | 147,965 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 632 | 601 |
Charge-offs | (321) | (559) |
Recoveries | 234 | 171 |
Provision (recapture) | 344 | 419 |
Ending balance | 889 | 632 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 889 | 632 |
Ending balance | 889 | 632 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | 17,167 | 4,921 |
Consumer and other | 17,167 | 4,921 |
Unallocated Financing Receivables [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Beginning balance | 724 | 427 |
Charge-offs | ||
Recoveries | ||
Provision (recapture) | 387 | 297 |
Ending balance | 1,111 | 724 |
Loans individually evaluated for impairment | ||
Loans collectively evaluated for impairment | 1,111 | 724 |
Ending balance | 1,111 | 724 |
Ending balance individually evaluated for impairment | ||
Ending balance collectively evaluated for impairment | ||
Consumer and other |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | ||
Consumer and other | $ 1,936,066 | $ 1,506,454 |
Financing Receivable, Nonaccrual, Interest Income | 33 | 35 |
Long-term Line of Credit | 420,500 | 293,500 |
Federal Home Loan Bank of San Francisco [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Long-term Line of Credit | 941,160 | 1,093,513 |
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank | 33,391 | 61,635 |
Paycheck Protection Program ("PPP") [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Consumer and other | 22,124 | 147,965 |
Principal Amount Outstanding of Loans Held-in-portfolio | $ 46,601 | $ 51,237 |
Premises and Equipment, Net (De
Premises and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Furniture, fixtures, and equipment | $ 3,314 | $ 3,057 |
Tenant improvements | 1,973 | 2,027 |
Premises and Equipment, Gross | 5,287 | 5,084 |
Less: Accumulated depreciation and amortization | 3,514 | 3,421 |
Premises and equipment, net | $ 1,773 | $ 1,663 |
Premises and Equipment, Net (_2
Premises and Equipment, Net (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 607 | $ 461 |
Bank-owned Life Insurance (Deta
Bank-owned Life Insurance (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | ||
Life Settlement Contracts, Fair Value Method, Face Value | $ 26,956 | |
Bank Owned Life Insurance | 11,203 | $ 8,662 |
Bank Owned Life Insurance Income | $ 237 | $ 220 |
Interest Receivable and Other_3
Interest Receivable and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest Receivable And Other Assets | ||
Interest receivable | $ 5,332 | $ 5,422 |
Equity investments | 5,741 | 3,757 |
Servicing assets | 2,215 | 2,083 |
Other assets | 8,340 | 3,030 |
Interest Receivable and Other Assets | $ 21,628 | $ 14,292 |
Interest Bearing Deposits (Deta
Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest-bearing Deposits | ||
Savings | $ 88,536 | $ 49,714 |
Money market | 912,558 | 839,053 |
Interest checking accounts | 278,406 | 146,553 |
Time, $250 or more | 77,868 | 7,568 |
Other time | 26,404 | 40,034 |
Total interest-bearing deposits | $ 1,383,772 | $ 1,082,922 |
Interest Bearing Deposits (De_2
Interest Bearing Deposits (Details 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest-bearing Deposits | ||
2022 | $ 103,334 | |
2023 | 911 | |
2024 | 26 | |
2025 | ||
2026 | 1 | |
Total time deposits | $ 104,272 | $ 47,602 |
Interest Bearing Deposits (De_3
Interest Bearing Deposits (Details 3) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Total network deposits | $ 330,047 | $ 296,661 |
CDARS [Member] | ||
Total network deposits | 22,411 | 35,534 |
ICS [Member] | ||
Total network deposits | $ 307,636 | $ 261,127 |
Interest Bearing Deposits (De_4
Interest Bearing Deposits (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest-bearing Deposits | ||
Savings | $ 74 | $ 94 |
Money market | 1,797 | 5,750 |
Interest checking accounts | 155 | 374 |
Time, $250 or more | 42 | 797 |
Other time | 131 | 392 |
Total interest expense on interest-bearing deposits | $ 2,199 | $ 7,407 |
Interest-Bearing Deposits (Deta
Interest-Bearing Deposits (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest-bearing Deposits | ||
Interest-bearing Domestic Deposit, Time Deposits | $ 104,272 | $ 47,602 |
Long Term Debt and Other Borr_2
Long Term Debt and Other Borrowings (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 08, 2019 |
Debt Instrument [Line Items] | |||
Subordinated Debt | $ 28,386 | $ 28,320 | |
Debt Issuance Costs, Net | 642 | 280 | |
Line of Credit Facility, Maximum Borrowing Capacity | 696,285 | 519,274 | |
Long-term Line of Credit | 420,500 | 293,500 | |
Line of Credit Facility, Remaining Borrowing Capacity | 275,785 | 284,810 | |
Unsecured Federal Funds Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 75,000 | ||
Federal Reserve Discount Window | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 16,999 | 25,881 | |
Secure State Of California Deposits [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | 80,500 | 13,500 | |
Secure Local Agency Deposit [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 340,000 | $ 280,000 | |
Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Subordinated Debt | $ 3,750 |
401(k) Benefit Plan (Details Na
401(k) Benefit Plan (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 593 | $ 465 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory U.S. federal income tax | $ 9,901 | $ 7,824 |
Benefit of S Corporation status | (4,884) | (7,824) |
State taxes | 4,045 | 1,327 |
Deferred tax asset adjustment | (4,638) | |
Other | 283 | |
Provision for income taxes | $ 4,707 | $ 1,327 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax expense | ||
Federal | $ 6,178 | |
State | 2,530 | 1,468 |
Current | 8,708 | 1,468 |
Deferred tax benefit | ||
Federal | (3,561) | |
State | (440) | (141) |
Deferred | (4,001) | (141) |
Provision for income taxes | $ 4,707 | $ 1,327 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for credit losses | $ 7,398 | $ 777 |
Supplemental employee retirement plan | 521 | 52 |
Gain on available-for-sale assets | 151 | 5 |
Net unrealized loss on securities available-for-sale | 237 | |
Accrual to cash adjustment | 13 | |
Depreciation | 43 | |
Other | 562 | |
Deferred tax assets | 8,869 | 890 |
Deferred tax liabilities: | ||
Deferred loan fees | (2,927) | (177) |
Net unrealized gain on securities available-for-sale | (49) | |
State tax | (379) | |
Depreciation | (419) | |
Other | (228) | (31) |
Deferred tax liabilities | (3,953) | (257) |
Net deferred tax asset | $ 4,916 | $ 633 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Net of Valuation Allowance | $ 5,370 | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 4,638 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 2,048 | $ 1,348 |
New loans or advance | 7,828 | 280 |
Loans issued in prior years to new related parties | 695 | |
Repayments | (458) | (275) |
Ending balance | $ 9,418 | $ 2,048 |
Related Party Transactions (D_2
Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Due to Related Parties | $ 32,410 | $ 42,466 |
Property Management Fees Expenses | $ 12 | $ 27 |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning of the period balance | 11,568 | 15,794 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 21.25 | $ 21.03 |
Shares granted | 174,347 | 11,398 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 19.97 | $ 20.14 |
Shares vested | (53,642) | (15,624) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 20.35 | $ 20.23 |
Shares forfeited | (4,522) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 19.33 | |
End of the period balance | 127,751 | 11,568 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 19.95 | $ 21.25 |
Equity Incentive Plan (Details
Equity Incentive Plan (Details Narrative) | Dec. 31, 2021shares |
Retirement Benefits [Abstract] | |
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 1,700,000 |
Shareholders_ Equity (Details N
Shareholders’ Equity (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Equity [Abstract] | |
Dividends, Common Stock, Cash | $ 24,975 |
Aggregate Distribution for AAA Payout | $ 26,967 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | $ 248,877 | $ 216,037 |
Commercial Lines of Credit [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 137,354 | 107,231 |
Undisbursed Construction Loans [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 46,584 | 50,442 |
Undisbursed Commercial Real Estate Loans [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 47,793 | 39,946 |
Agricultural Lines of Credit [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 9,955 | 11,553 |
Undisbursed Agricultural Real Estate Loans [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | 3,427 | 5,945 |
Other Commitments [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total commitments and standby letters of credit | $ 3,764 | $ 920 |
Commitments and Contingencies_3
Commitments and Contingencies (Details 2) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 1,025 |
2023 | 978 |
2024 | 951 |
2025 | 733 |
2026 | 604 |
Thereafter | 1,094 |
Total | $ 5,385 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 7 months 20 days |
Commitments and Contingencies_4
Commitments and Contingencies (Details Narrative) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)Number | Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of Deposits | Number | 64 | |
[custom:DepositsOverFiveMillion-0] | $ 1,166,728 | |
[custom:PercentageOfDepositsOverFiveMillionToDeposits-0] | 51.04% | |
Largest Single Deposit | $ 154,988 | |
Percentage of Largest Single Deposit to Total Deposits | 6.78% | |
Cash, Uninsured Amount | $ 147,219 | $ 118,003 |
Operating Leases, Rent Expense | $ 140 | $ 225 |
Capital Requirements and Rest_3
Capital Requirements and Restrictions on Retained Earnings (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Banking Regulation, Total Capital, Actual | $ 285,128 | $ 176,861 | |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1398 | 0.1218 | |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | [1] | $ 163,177 | $ 116,138 |
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 233,397 | $ 130,347 | |
Banking Regulation, Tier One Risk-Based Capital Ratio, Actual | 0.1144 | 0.0898 | |
Banking Regulation, Tier One Risk-Based Capital, Capital Adequacy, Minimum | [1] | $ 122,382 | $ 87,103 |
Banking Regulation, Common Equity Tier One Risk-Based Capital, Actual | $ 233,397 | $ 130,347 | |
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Actual | 0.1144 | 0.0898 | |
Banking Regulation, Common Equity Tier One Risk-Based Capital, Capital Adequacy, Minimum | [1] | $ 91,787 | $ 65,327 |
Banking Regulation, Tier One Leverage Capital, Actual | $ 233,397 | $ 130,347 | |
Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.0947 | 0.0658 | |
Banking Regulation, Tier One Leverage Capital, Capital Adequacy, Minimum | [1] | $ 98,600 | $ 79,204 |
Subsidiaries [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Banking Regulation, Total Capital, Actual | $ 279,152 | $ 174,002 | |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1369 | 0.1199 | |
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum | $ 163,078 | $ 116,114 | |
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 255,807 | $ 155,808 | |
Banking Regulation, Tier One Risk-Based Capital Ratio, Actual | 0.1255 | 0.1073 | |
Banking Regulation, Tier One Risk-Based Capital, Capital Adequacy, Minimum | $ 122,309 | $ 87,086 | |
Banking Regulation, Common Equity Tier One Risk-Based Capital, Actual | $ 255,807 | $ 155,808 | |
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Actual | 0.1255 | 0.1073 | |
Banking Regulation, Common Equity Tier One Risk-Based Capital, Capital Adequacy, Minimum | $ 91,731 | $ 65,314 | |
Banking Regulation, Tier One Leverage Capital, Actual | $ 255,807 | $ 155,808 | |
Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.1038 | 0.0787 | |
Banking Regulation, Tier One Leverage Capital, Capital Adequacy, Minimum | $ 98,555 | $ 79,199 | |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | 203,848 | 145,143 | |
Banking Regulation, Tier One Risk-Based Capital, Well Capitalized, Minimum | 163,078 | 116,114 | |
Banking Regulation, Common Equity Tier One Risk-Based Capital, Well Capitalized, Minimum | 132,501 | 94,343 | |
Banking Regulation, Tier One Leverage Capital, Well Capitalized, Minimum | $ 123,193 | $ 98,998 | |
Minimum [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | [1] | 0.0800 | 0.0800 |
Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | [1] | 0.0600 | 0.0600 |
Banking Regulation, Common Equity Tier One Risk Based Capital Ratio, Capital Adequacy, Minimum | [1] | 0.0450 | 0.0450 |
Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | [1] | 0.0400 | 0.0400 |
Minimum [Member] | Subsidiaries [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.0800 | 0.0800 | |
Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.0600 | 0.0600 | |
Banking Regulation, Common Equity Tier One Risk Based Capital Ratio, Capital Adequacy, Minimum | 0.0450 | 0.0450 | |
Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.0400 | 0.0400 | |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.1000 | 0.1000 | |
Banking Regulation, Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.0800 | 0.0800 | |
Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.0650 | 0.0650 | |
Banking Regulation, Tier One Leverage Capital Ratio, Well Capitalized, Minimum | 0.0500 | 0.0500 | |
[1] | Presented as if Bancorp were subject to Basel III capital requirements. The Company operates under the Small Bank Holding Company Policy Statement and therefore is not currently subject to generally applicable capital adequacy requirements. |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 148,807 | $ 114,949 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 148,807 | 114,949 |
Assets, Total [Member] | US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | ||
Assets, Total [Member] | US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 148,807 | 114,949 |
Assets, Total [Member] | US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | ||
Assets, Total [Member] | US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 148,807 | 114,949 |
Assets, Total [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | ||
Assets, Total [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 92 | 149 |
Assets, Total [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | ||
Assets, Total [Member] | Interest Rate Swap [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 92 | 149 |
Liabilities, Total [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | ||
Liabilities, Total [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 92 | 149 |
Liabilities, Total [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | ||
Liabilities, Total [Member] | Interest Rate Swap [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 92 | $ 149 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 425,329 | $ 290,493 | $ 177,366 |
Time deposits in banks | 14,464 | 23,705 | |
Securities available-for-sale | 148,807 | 114,949 | |
Debt Securities, Available-for-sale | 148,807 | 114,949 | |
Securities held-to-maturity | 4,946 | 7,979 | |
Debt Securities, Held-to-maturity, Fair Value | 5,197 | 8,755 | |
Loans held for sale | 10,671 | 4,820 | |
Loans held for investment | 1,911,217 | 1,480,970 | |
Interest receivable | 21,628 | 14,292 | |
Deposits | 2,285,890 | 1,784,001 | |
Interest payable | 7,439 | 7,669 | |
Subordinated notes | 28,386 | 28,320 | |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 425,329 | 290,493 | |
Time deposits in banks | 14,464 | 23,705 | |
Securities available-for-sale | 148,807 | 114,949 | |
Securities held-to-maturity | 4,946 | 7,979 | |
Loans held for sale | 10,671 | 4,820 | |
Loans held for investment | 1,911,217 | 1,480,970 | |
FHLB stock and other investments | 12,464 | 9,989 | |
Interest receivable | 5,332 | 5,422 | |
Interest rate swap | 92 | 149 | |
Deposits | 2,285,890 | 1,784,001 | |
Interest payable | 23 | 75 | |
Interest rate swap | 92 | 149 | |
Subordinated notes | 28,386 | 28,320 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 425,329 | 290,493 | |
Time Deposit at Fair Value Disclosure | 14,464 | 23,705 | |
Debt Securities, Available-for-sale | 148,807 | 114,949 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Held-to-maturity, Fair Value | 5,197 | 8,755 | |
Accounts Receivable, Fair Value Disclosure | 5,332 | 5,422 | |
Interest Rate Swap, Fair Value | 92 | 149 | |
Accounts Payable, Fair Value Disclosure | 23 | 75 | |
Interest Rate Swap, Fair Value | 92 | 149 | |
Subordinated Debt Obligations, Fair Value Disclosure | 28,386 | 28,320 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans Held-for-sale, Fair Value Disclosure | 11,217 | 5,012 | |
Loans Receivable, Fair Value Disclosure | 1,893,431 | 1,464,794 | |
Deposits, Fair Value Disclosure | $ 2,210,555 | $ 1,785,944 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | |||
Cash and cash equivalents | $ 425,329 | $ 290,493 | $ 177,366 |
Other assets | 8,340 | 3,030 | |
Assets | 2,556,761 | 1,953,765 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Subordinated notes, net | 28,386 | 28,320 | |
Shareholders’ equity | 235,046 | 133,775 | 108,877 |
Liabilities and Shareholders Equity | 2,556,761 | 1,953,765 | |
Parent Company [Member] | |||
ASSETS | |||
Cash and cash equivalents | 5,636 | 3,555 | $ 3,787 |
Investment in banking subsidiary | 257,456 | 159,236 | |
Other assets | 922 | 291 | |
Assets | 264,014 | 163,082 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Subordinated notes, net | 28,968 | 29,307 | |
Shareholders’ equity | 235,046 | 133,775 | |
Liabilities and Shareholders Equity | $ 264,014 | $ 163,082 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | ||
Dividends from banking subsidiary | $ 81,583 | $ 74,390 |
Interest expense | 3,972 | 9,180 |
Income before provision for income taxes | 47,148 | 37,255 |
Income tax benefit | 4,707 | 1,327 |
Net income | 42,441 | 35,928 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Dividends from banking subsidiary | 27,630 | 28,077 |
Interest expense | 1,773 | 1,773 |
Other expense | 3,559 | 1,023 |
Income before provision for income taxes | 22,298 | 25,281 |
Income tax benefit | 812 | 10 |
Equity in undistributed banking subsidiary income | 19,331 | 10,637 |
Net income | $ 42,441 | $ 35,928 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 42,441 | $ 35,928 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock compensation expense | 594 | 316 |
Stock issued to directors | 846 | 252 |
Amortization of subordinated notes issuance costs | 66 | 67 |
Net cash provided by operating activities | 28,657 | 51,475 |
Cash flows from investing activities: | ||
Net cash used in investing activities | (455,011) | (372,630) |
Cash flows from financing activities: | ||
Proceeds from sale of stock | 111,243 | 13,400 |
Cash dividends paid | 51,942 | 26,369 |
Net cash provided by financing activities | 561,190 | 434,282 |
Net change in cash and cash equivalents | 134,836 | 113,127 |
Cash and cash equivalents at beginning of period | 290,493 | 177,366 |
Cash and cash equivalents at end of period | 425,329 | 290,493 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | 42,441 | 35,928 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock compensation expense | 594 | 316 |
Stock issued to directors | 846 | 252 |
Equity in undistributed banking subsidiary income | (19,331) | (10,637) |
Amortization of subordinated notes issuance costs | 66 | 67 |
Change in other assets | (631) | (203) |
Change in accrued expenses and other liabilities | (405) | 514 |
Net cash provided by operating activities | 23,580 | 26,237 |
Cash flows from investing activities: | ||
Investment in subsidiary | (80,800) | (13,500) |
Net cash used in investing activities | (80,800) | (13,500) |
Cash flows from financing activities: | ||
Proceeds from sale of stock | 111,243 | 13,400 |
Cash dividends paid | (51,942) | (26,369) |
Net cash provided by financing activities | 59,301 | (12,969) |
Net change in cash and cash equivalents | 2,081 | (232) |
Cash and cash equivalents at beginning of period | 3,555 | 3,787 |
Cash and cash equivalents at end of period | $ 5,636 | $ 3,555 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Feb. 14, 2022 | Jan. 20, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||||
Dividends, Common Stock | $ 51,942 | $ 26,369 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.15 | |||
Dividends Payable, Date of Record | Feb. 7, 2022 | |||
Dividends, Common Stock | $ 2,587 |