Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38437 | ||
Entity Registrant Name | OP BANCORP | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 81-3114676 | ||
Entity Address, Address Line One | 1000 Wilshire Blvd | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90017 | ||
City Area Code | 213 | ||
Local Phone Number | 892-9999 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | OPBK | ||
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 | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 101,500 | ||
Entity Common Stock, Shares Outstanding | 14,956,399 | ||
Entity Central Index Key | 0001722010 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 173 |
Auditor Name | Crowe LLP |
Auditor Location | Costa Mesa, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 91,216 | $ 82,972 |
Available-for-sale debt securities, at fair value | 194,250 | 209,809 |
Other investments | 16,276 | 12,098 |
Loans held for sale | 1,795 | 44,335 |
Loans receivable, net of allowance for credit losses of $21,993 and $19,241 as of December 31, 2023 and 2022, respectively | 1,743,852 | 1,659,051 |
Premises and equipment, net | 5,248 | 4,400 |
Accrued interest receivable | 8,259 | 7,180 |
Servicing assets | 11,741 | 12,759 |
Company owned life insurance | 22,233 | 21,613 |
Deferred tax assets, net | 13,309 | 14,316 |
Operating right-of-use assets | 8,497 | 9,097 |
Other assets | 31,054 | 16,867 |
Total assets | 2,147,730 | 2,094,497 |
Deposits [Abstract] | ||
Noninterest-bearing | 522,751 | 701,584 |
Interest-bearing: | ||
Money market and others | 399,018 | 526,321 |
Time deposits greater than $250 | 433,892 | 356,197 |
Other time deposits | 451,897 | 301,669 |
Total deposits | 1,807,558 | 1,885,771 |
Federal Home Loan Bank advances | 105,000 | 0 |
Accrued interest payable | 12,628 | 2,771 |
Operating lease liabilities | 9,341 | 10,213 |
Other liabilities | 20,577 | 18,826 |
Total liabilities | 1,955,104 | 1,917,581 |
Shareholders’ equity | ||
Preferred stock no par value; 10,000,000 shares authorized; no shares issued or outstanding as of December 31 2023 and 2022 | 0 | 0 |
Common stock – no par value; 50,000,000 shares authorized as of December 31, 2023 and 2022; 15,000,436 and 15,270,344 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 76,280 | 79,326 |
Additional paid-in capital | 10,942 | 9,743 |
Retained earnings | 120,855 | 105,690 |
Accumulated other comprehensive loss | (15,451) | (17,843) |
Total shareholders’ equity | 192,626 | 176,916 |
Total liabilities and shareholders' equity | $ 2,147,730 | $ 2,094,497 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Loans receivable, net of allowance | $ 21,993 | $ 19,241 |
Preferred stock, par value (USD per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares, issued (in shares) | 15,270,344 | 15,000,436 |
Common stock, shares, outstanding (in shares) | 15,270,344 | 15,000,436 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 110,463 | $ 82,864 | $ 62,448 |
Interest on available-for-sale debt securities | 6,131 | 3,351 | 1,085 |
Other interest income | 5,071 | 1,997 | 625 |
Total interest income | 121,665 | 88,212 | 64,158 |
Interest expense | |||
Interest on deposits | 49,435 | 11,210 | 3,132 |
Interest on borrowings | 3,543 | 91 | 0 |
Total interest expense | 52,978 | 11,301 | 3,132 |
Net interest income | 68,687 | 76,911 | 61,026 |
Provision for credit losses | 1,651 | 2,976 | 522 |
Net interest income after provision for credit losses | 67,036 | 73,935 | 60,504 |
NONINTEREST INCOME | |||
Service charges on deposits | 2,123 | 1,675 | 1,562 |
Loan servicing fees, net of amortization | 2,449 | 2,416 | 1,953 |
Gain on sale of loans | 7,843 | 12,285 | 11,313 |
Other income | 1,766 | 1,243 | 1,189 |
Total noninterest income | 14,181 | 17,619 | 16,017 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 29,593 | 27,189 | 21,253 |
Occupancy and equipment | 6,490 | 5,964 | 5,213 |
Data processing and communication | 2,109 | 2,085 | 2,000 |
Professional fees | 1,571 | 1,620 | 1,192 |
FDIC insurance and regulatory assessments | 1,457 | 813 | 583 |
Promotion and advertising | 614 | 543 | 684 |
Directors’ fees | 680 | 682 | 593 |
Foundation donation and other contributions | 2,400 | 3,393 | 2,890 |
Other expenses | 2,812 | 2,541 | 1,457 |
Total noninterest expense | 47,726 | 44,830 | 35,865 |
INCOME BEFORE INCOME TAX EXPENSE | 33,491 | 46,724 | 40,656 |
Income tax expense | 9,573 | 13,414 | 11,816 |
Net income | $ 23,918 | $ 33,310 | $ 28,840 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 1.55 | $ 2.15 | $ 1.89 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 1.55 | $ 2.14 | $ 1.88 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 23,918 | $ 33,310 | $ 28,840 |
Other comprehensive income (loss) | |||
Change in unrealized gain (loss) on available-for-sale debt securities | 3,397 | (23,634) | (2,891) |
Tax effect | (1,005) | 6,988 | 854 |
Total other comprehensive income (loss) | 2,392 | (16,646) | (2,037) |
Comprehensive income | $ 26,310 | $ 16,664 | $ 26,803 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative effect related to adoption of ASC 326, net of tax | Pre-ASU 2016-13 | Common Stock | Common Stock Pre-ASU 2016-13 | Additional Paid-in Capital | Additional Paid-in Capital Pre-ASU 2016-13 | Retained Earnings | Retained Earnings Cumulative effect related to adoption of ASC 326, net of tax | Retained Earnings Pre-ASU 2016-13 | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Pre-ASU 2016-13 |
Beginning balance (shares) at Dec. 31, 2020 | 15,016,700 | |||||||||||
Beginning balance at Dec. 31, 2020 | $ 143,366 | $ 78,657 | $ 8,521 | $ 55,348 | $ 840 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 28,840 | 28,840 | ||||||||||
Other comprehensive (loss) income | (2,037) | (2,037) | ||||||||||
Stock issued under stock-based compensation plans, net of forfeitures (in shares) | 124,938 | |||||||||||
Stock issued under stock-based compensation plans, net of forfeitures | 89 | $ 89 | ||||||||||
Stock-based compensation, net | $ 124 | 124 | ||||||||||
Repurchase of common stock (shares) | (3,830) | |||||||||||
Repurchase of common stock | $ (28) | |||||||||||
Cash dividends declared | (5,132) | (5,132) | ||||||||||
Ending balance (shares) at Dec. 31, 2021 | 15,137,808 | |||||||||||
Ending balance at Dec. 31, 2021 | 165,222 | $ 78,718 | 8,645 | 79,056 | (1,197) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 33,310 | 33,310 | ||||||||||
Other comprehensive (loss) income | (16,646) | (16,646) | ||||||||||
Stock issued under stock-based compensation plans, net of forfeitures (in shares) | 132,536 | |||||||||||
Stock issued under stock-based compensation plans, net of forfeitures | 527 | $ 608 | (81) | |||||||||
Stock-based compensation, net | 1,179 | 1,179 | ||||||||||
Cash dividends declared | (6,676) | (6,676) | ||||||||||
Ending balance (shares) at Dec. 31, 2022 | 15,270,344 | 15,270,344 | ||||||||||
Ending balance at Dec. 31, 2022 | 176,916 | $ 175,432 | $ 79,326 | $ 79,326 | 9,743 | $ 9,743 | 105,690 | $ (1,484) | $ 104,206 | (17,843) | $ (17,843) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 23,918 | 23,918 | ||||||||||
Other comprehensive (loss) income | 2,392 | 2,392 | ||||||||||
Stock issued under stock-based compensation plans, net of forfeitures (in shares) | 178,576 | |||||||||||
Stock issued under stock-based compensation plans, net of forfeitures | 790 | $ 888 | (98) | |||||||||
Stock-based compensation, net | $ 1,297 | 1,297 | ||||||||||
Repurchase of common stock (shares) | (448,484) | |||||||||||
Repurchase of common stock | $ (3,934) | |||||||||||
Cash dividends declared | (7,269) | (7,269) | ||||||||||
Ending balance (shares) at Dec. 31, 2023 | 15,000,436 | |||||||||||
Ending balance at Dec. 31, 2023 | $ 192,626 | $ 76,280 | $ 10,942 | $ 120,855 | $ (15,451) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (USD per share) | $ 0.48 | $ 0.44 | $ 0.34 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 23,918 | $ 33,310 | $ 28,840 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Provision for credit losses | 1,651 | 2,976 | 522 |
Depreciation and amortization of premises and equipment | 1,336 | 1,367 | 1,314 |
Amortization of net premiums on securities | 235 | 629 | 882 |
Amortization of servicing assets | 4,418 | 4,385 | 3,536 |
Accretion of net discounts on loans | (2,840) | (4,868) | (4,847) |
Amortization of low income housing partnerships | 1,325 | 697 | 522 |
Stock-based compensation | 1,297 | 1,179 | 558 |
Deferred income taxes | 626 | 1,081 | (2,312) |
Gain on sale of loans | (7,843) | (12,285) | (11,313) |
Earnings on company owned life insurance | (620) | (479) | (255) |
Net change in fair value of equity investment with readily determinable fair value | (48) | 431 | 108 |
Origination of loans held for sale | (107,610) | (137,642) | (177,042) |
Proceeds from sales of loans held for sale | 154,593 | 196,531 | 122,520 |
Net change in: | |||
Accrued interest receivable | (1,079) | (2,396) | 242 |
Other assets | (7,543) | 269 | 5,793 |
Accrued interest payable | 9,857 | 2,213 | (463) |
Other liabilities | (3,831) | (3,664) | 3,117 |
Net cash provided by operating activities | 67,842 | 83,734 | (28,278) |
Cash flows from investing activities | |||
Net change in loans receivable | (57,932) | (138,998) | (123,069) |
Proceeds from matured, called, or paid-down securities available for sale | 24,368 | 32,191 | 35,941 |
Purchase of company owned life insurance | 0 | (10,000) | 0 |
Purchase of loans | (27,604) | (225,133) | (97,631) |
Purchase of available-for-sale debt securities | (5,647) | (115,819) | (98,368) |
Purchase of equity investments | (85) | (53) | 0 |
Purchase of Federal Home Loan Bank stock | (4,045) | (1,477) | (963) |
Purchase of premises and equipment, net | (2,184) | (1,412) | (1,125) |
Investment in low income housing partnerships | (2,843) | (1,076) | (829) |
Net cash used in investing activities | (75,972) | (461,777) | (286,044) |
Cash flows from financing activities | |||
Net change in deposits | (78,213) | 351,705 | 333,976 |
Cash received from stock option exercises | 888 | 608 | 89 |
Proceeds from Federal Home Loan Bank advances | 105,000 | 0 | 0 |
Repayment of Federal Home Loan Bank advances | 0 | 0 | (5,000) |
Repurchase of common stock | (3,934) | 0 | (28) |
Cash dividend paid on common stock | (7,269) | (6,676) | (5,132) |
Payments related to tax-withholding for vested restricted stock awards | (98) | (81) | (434) |
Net cash provided by financing activities | 16,374 | 345,556 | 323,471 |
Net change in cash and cash equivalents | 8,244 | (32,487) | 9,149 |
Cash and cash equivalents at beginning of period | 82,972 | 115,459 | 106,310 |
Cash and cash equivalents at end of period | 91,216 | 82,972 | 115,459 |
Supplemental cash flow information: | |||
Income taxes | 8,393 | 14,493 | 10,778 |
Interest | 43,121 | 9,088 | 3,595 |
Supplemental non-cash disclosure: | |||
Initial recognition of right-of-use assets | 1,369 | 1,961 | 3,708 |
New commitments to low income housing partnership investments | $ 6,000 | $ 5,000 | $ 3,500 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Business Description: OP Bancorp is a California corporation that was formed to acquire 100.00% of the voting equity of Open Bank (the “Bank”) and commenced operation as a bank holding company on June 1, 2016. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of OP Bancorp. OP Bancorp has no operations other than ownership of the Bank. The Bank is a California state-chartered and FDIC-insured financial institution, which began its operations on June 10, 2005. Headquartered in downtown Los Angeles, California, OP Bancorp operates primarily in the traditional banking business arena that includes accepting deposits and making loans and investments. OP Bancorp’s primary deposit products are demand and time deposits, and the primary lending products are commercial business loans to small to medium sized businesses. OP Bancorp is operating with 11 full-service branches. Basis of Presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Concentration of Risk: Most of the Company’s customers are located within Los Angeles County and the surrounding area. The concentration of loans originated in this area may subject the Company to the risk of adverse impacts of economic, regulatory or other developments that could occur in Southern California. The Company has significant concentration in commercial real estate loans. The Company obtains what it believes to be sufficient collateral to secure potential losses. The extent and value of the collateral obtained varies based upon the details underlying each loan agreement. Cash Flows: Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions. Securities: Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available-for-sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Securities available for sale are measured at fair value and are subject to impairment testing. For securities available for sale in an unrealized loss position, management evaluates whether the decline in fair value has resulted in from a credit-related loss or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. Management (1) recognizes an allowance for credit losses by a charge to earnings for the credit-related component of the decline in fair value, and (2) recognize in other comprehensive income (loss) any non-credit related components of the fair value decline. If the amount of the amortized cost basis expected to be recovered increases in a future period, the valuation reserve would be reduced, but not more than the amount of the current existing reserve for that security. Other investments: Other investments includes the followings : (i) Federal Home Loan Bank (“FHLB”) Stock - the Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; (ii) Pacific Coast Bankers Bank (“PCBB”) Stock - the Bank is a member of PCBB. PCBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; and (iii) the Company’s investment in a mutual fund to satisfy the Company’s requirements under the Community Reinvestment Act (“CRA”). CRA mutual fund is reported at fair value. Unrealized gains and losses on a CRA fund are recognized in other income in the Consolidated Statements of Income. Loans Held for Sale: Certain Small Business Administration (“SBA”) loans that may be sold prior to maturity are designated as held for sale at origination and are recorded at the lower of their cost or fair value less costs to sell, determined on an aggregate basis. A valuation allowance is established if the market value of such loans is lower than their cost, and operations are charged or credited for valuation adjustments. Origination fees on loans held for sale, net of certain costs of processing and closing the loans, are deferred until the time of sale and are included in the computation of the gain or loss from the sales of the related loans. A portion of the premium on sale of SBA loans is recognized as gains on sales of loans at the time of the sale. These loans are generally sold with servicing retained. Loans Receivable: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs and an allowance for credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable, deferred loan fees and costs, and unearned income. The accrual of interest income on commercial real estate and other commercial and industrial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses: The Company employs a modeled approach that takes into account current and future economic conditions to estimate lifetime expected losses on a collective basis. With the adoption of Current Expected Credit Losses, the Company elected not to consider accrued interest receivable in its estimated credit losses because the Company writes off uncollectible accrued interest receivable in a timely manner. The Company considers writing off accrued interest amounts once the amounts become 90 days past due to be considered within a timely manner. The Company has elected to write off accrued interest receivable by reversing interest income. The Company uses transition matrices to develop the Probability of Default ("PD") and Loss Given Default ("LGD") approach, incorporating quantitative factors and qualitative considerations in the calculation of the allowance for credit losses for collectively assessed loans. The model provides forecasts of PD and LGD based on national unemployment rates using regression analysis. The Company incorporates future economic conditions using a weighted multiple scenario approach: baseline and adverse. The Company applies a reasonable and supportable period of one year for the baseline scenario and two years for the adverse scenario, after which loss assumptions revert to historical loss information through a one-year reversion period for the baseline scenario and a two-year reversion period for the adverse scenario. Additionally, the Company aggregated loan portfolio based on similar risk characteristic. The Company elected to use the Call Report codes and loan risk ratings for loan segmentation in allowance for credit losses. The Company used the following assumptions in a sensitivity analysis of our allowance for credit losses: unemployment rate forecast based on supervisory severely adverse scenario, 0% prepayment rates, loan risk grade changes of commercial real estate and commercial and industrial loan portfolio in worst case scenario based on the Company history, and applying a 100% weighting to severely adverse scenario. The analysis demonstrates the sensitivity to the allowance for credit losses to key quantitative assumptions and it is not intended to estimate changes in the overall allowance for credit losses and it does not capture all the potential unknown variables that could arise in the forecast period, but it provides an approximation of a possible outcome under hypothetical severe conditions. In order to quantify the credit risk impact of other trends and changes within the loan portfolio, the Company utilizes qualitative adjustments to the modeled estimated loss approaches. Included in the qualitative portion of our analysis of the allowance for credit losses are key inputs including GDP, unemployment rates, interest rates, asset quality ratios, loan portfolio concentration, California house price index and commercial real estate price index. The parameters for making adjustments are established under a Credit Risk Matrix that provides different possible scenarios for each of the factors listed below. The Credit Risk Matrix and the possible scenarios enable the Bank to qualitatively adjust the loss rates. This matrix considers the following nine factors, which are patterned after the guidelines provided under the Federal Financial Institutions Examination Council Interagency Policy Statement on the Allowance for Credit Losses, updated to reflect the adoption of Current Expected Credit Losses: • Changes in lending policies and procedures, including changes in underwriting standards and practices for collection, charge-offs, and recoveries; • Actual and expected changes in national and local economic and business conditions and developments in which the institution operates that affect the collectivity of loans; • Changes in the nature and volume of the loan portfolio; • Changes in the experience, ability, and depth of lending management and staff; • Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified loans; • Changes in the quality of the credit review function; • Changes in the value of the underlying collateral for loans that are not collateral-dependent; • The existence, growth, and effect of any concentrations of credit, and • The effect of other external factors, such as the regulatory, legal and technological environments; competition; and events such as natural disasters. The Company segments loans primarily by Call Report codes (collateral type) and loan risk ratings, considering that the same type of loans share considerable similar risk characteristics. For loans that do not share similar risk characteristics such as nonaccrual loans above $500 thousand, the Company evaluates these loans on an individual basis in accordance with ASC 326. Such nonaccrual loans are considered to have different risk profiles than performing loans and are therefore evaluated individually. The Company elected to collectively assess nonaccrual loans with balances below $500 thousand along with the performing and accrual loans, in order to reduce the operational burden of individually assessing small nonaccrual loans with immaterial balances. For individually assessed loans, the allowance for credit losses is measured using either 1) the present value of future cash flows discounted at the loan’s effective interest rate; or 2) the fair value of the collateral, if the loan is collateral-dependent. For the collateral-dependent loans, the Company obtains a new appraisal to determine the fair value of collateral. The appraisals are based on an “as-is” valuation. To ensure that appraised values remain current, the Company obtains updated appraisals every twelve months from a qualified independent appraiser. If the fair value of the collateral is less than the amortized balance of the loan, the Company recognizes an allowance for credit losses with a corresponding charge to the provision for credit losses. The Company maintains a separate allowance for credit losses for its off-balance sheet commitments. The Company uses an estimated funding rate to allocate an allowance to undrawn exposures. This funding rate is used as a credit conversion factor to capture how much undrawn lines of credit can potentially become drawn at any point. The funding rate is determined based on a look-back period of 8 quarters. Credit loss is not estimated for off-balance sheet commitments that are unconditionally cancellable by the Company. Servicing Assets: When SBA loans are sold with servicing retained, servicing assets are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the assets as compared to their carrying amount. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in the valuation allowances are reported with other income on the income statement. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds, default rates, and losses. Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of servicing assets is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. Company Owned Life Insurance: The Company has purchased life insurance policies on certain key executives. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of 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. Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation. Equipment and furnishings are depreciated over 3 to 10 years, and leasehold improvements are amortized over the lesser of the terms of the respective leases or the estimated useful lives. The straight-line method of depreciation is used for financial reporting purposes. Repairs and maintenance are charged to operating expenses as incurred. Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial 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. Low Income Housing Partnership Investments: The Company records the low income housing partnership investments, net of amortization, using the proportional amortization method and the Company reports it to other assets on the Consolidated Balance Sheets. The Company recognizes tax credits in income tax expense on the Consolidated Statement of Income. The commitments to fund the low income housing partnership investments are also recorded and included to other liabilities on the Consolidated Balance Sheets. The Company utilizes the year to date tax credits on the Company’s income tax returns for the year. Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees based on the fair value of the awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of the grant is used for restricted stock awards. 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. Earnings per Common Share: Basic and diluted earnings per share is based on the two-class method prescribed in ASC Topic 260, Earnings Per Share (ASC 260). Stock options and restricted stock awards are considered outstanding for this calculation unless unearned. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock-based compensation plans. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. 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. 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 is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. There were no interest or penalties recognized in the years ended December 31, 2023 or 2022. Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on available-for-sale ("AFS") debt securities, which are also recognized as separate components of shareholders’ equity, net of tax. 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. Management does not believe there now are such matters that will have a material effect on the financial statements. Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 13—Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. Operating Segments: While the 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. New Accounting Pronouncements Adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-13, Financial Instruments — Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . The Company adopted ASU 2016-13 using a modified retrospective approach on January 1, 2023 without electing the fair value option on eligible financial instruments under ASU 2019-05. The Company replaced the current incurred loss accounting model with the Current Expected Credit Losses ("CECL") approach for financial instruments measured at amortized cost and other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable forecasts. The adoption of this ASU increased the allowance for credit losses by $1.9 million and allowance for off-balance sheet commitments by $184 thousand. The Company also recorded a deferred tax assets of $624 thousand and a decrease to opening retained earnings of $1.5 million on January 1, 2023. The increase to allowance for credit losses was primarily longer duration of home mortgage loans, offset primarily by shorter duration of commercial and industrial ("C&I") loans. The Company did not record an allowance for credit losses on the Company’s available-for-sale debt securities as a result of this adoption. Disclosures for periods after January 1, 2023 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable standards and the accounting policies. The following table illustrates the impact of ASU 2016-13: January 1, 2023, Adoption Date ($ in thousands) As Reported Pre-ASU 2016-13 Impact Assets: Loans: Commercial real estate $ 7,826 $ 6,951 $ 875 SBA—real estate 1,369 1,607 (238) SBA—non-real estate 65 207 (142) C&I 1,323 1,643 (320) Home mortgage 10,579 8,826 1,753 Consumer 3 7 (4) Allowance for credit losses on loans $ 21,165 $ 19,241 $ 1,924 Liabilities: Allowance for credit losses on off-balance sheet commitments $ 446 $ 262 $ 184 FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. ("ASU 2022-02") . ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification (“ASC”) Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, ASU 2022-02 requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. The Company adopted ASU 2022-02 on January 1, 2023, and the adoption of ASU 2022-02 did not have a significant impact on its consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . This ASU permits reporting entities to elect to account for tax equity investments, regardless of the tax credit program for which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense. A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The Company adopted ASU 2023-02 on January 1, 2024, and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncement under Evaluation In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of available-for-sale ("AFS") debt securities as of December 31, 2023 and 2022: December 31, 2023 ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 48,318 $ — $ (4,441) $ 43,877 Residential collateralized mortgage obligations 162,142 67 (17,750) 144,459 Municipal securities - tax exempt 5,726 189 (1) 5,914 Total AFS debt securities $ 216,186 $ 256 $ (22,192) $ 194,250 December 31, 2022 ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 55,189 $ — $ (5,425) $ 49,764 Residential collateralized mortgage obligations 179,953 1 (19,909) 160,045 Total AFS debt securities $ 235,142 $ 1 $ (25,334) $ 209,809 There were no sales of AFS debt securities during the years ended December 31, 2023 and 2022. The amortized cost and estimated fair value of AFS debt securities as of December 31, 2023, by contractual maturity, are shown below: ($ in thousands) Amortized Fair After one year through five years $ 1,334 $ 1,282 After five years through ten years 3,304 3,022 After ten years 211,548 189,946 Total AFS debt securities $ 216,186 $ 194,250 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of December 31, 2023 and 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss as of December 31, 2023 and 2022: December 31, 2023 Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 6,488 $ (59) $ 37,389 $ (4,382) $ 43,877 $ (4,441) Residential collateralized mortgage obligations 25,439 (177) 105,963 (17,573) 131,402 (17,750) Municipal securities - tax exempt 1,842 (1) — — 1,842 (1) Total AFS debt securities $ 33,769 $ (237) $ 143,352 $ (21,955) $ 177,121 $ (22,192) December 31, 2022 Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 26,347 $ (1,485) $ 23,417 $ (3,940) $ 49,764 $ (5,425) Residential collateralized mortgage obligations 81,320 (3,888) 71,604 (16,021) 152,924 (19,909) Total AFS debt securities $ 107,667 $ (5,373) $ 95,021 $ (19,961) $ 202,688 $ (25,334) As a result of the Company's adoption of ASU 2016-13 on January 1, 2023, available-for-sale debt securities are measured at fair value and are subject to impairment testing. A security is impaired if the fair value of the security is less than its amortized cost basis. When an available-for-sale debt security is considered impaired, the Company must determine if the decline in fair value has resulted from a credit-related loss or other factors and then, (1) recognize an allowance for credit losses by a charge to earnings for the credit-related component of the decline in fair value, and (2) recognize in other comprehensive income (loss) any non-credit related components of the fair value decline. If the amount of the amortized cost basis expected to be recovered increases in a future period, the valuation reserve would be reduced, but not more than the amount of the current existing reserve for that security. As of December 31, 2023, the Company's AFS debt securities consisted of 86 securities, of which 82 were in an unrealized loss position. The unrealized losses from the decline in fair value is attributable to changes in interest rates, and not credit quality. The issuers of the AFS debt securities are of high credit quality. Approximately 97% of the AFS debt securities are residential mortgage-backed securities and residential collateralized mortgage obligations that were issued by U.S. government-sponsored agencies, such as Ginnie Mae, Fannie Mae and Freddie Mac. The remaining 3% of the AFS debt securities are tax-exempt municipal securities. We believe that the unrealized losses presented in the previous tables are temporary and no credit losses are expected. As a result, the Company expects full collection of the carrying amount of these securities, does not intend to sell the securities in an unrealized loss position, and it was more-likely-than-not the Company will not have to sell these securities prior to recovery of amortized cost. Accordingly, for available-for-sale debt securities, the Company did not record allowance for credit losses on January 1, 2023 and did not have allowance for credit losses as of December 31, 2023. As of December 31, 2023 or 2022, there were no pledged securities to secure public deposits, borrowing and letters of credit from FHLB and the Board of Governors of the Federal Reserve System, and for other purposes required or permitted by law. The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheets as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 FHLB stock $ 12,528 $ 8,483 Pacific Coast Bankers Bank ("PCBB") stock 190 190 Mutual fund - Community Reinvestment Act ("CRA") qualified 3,463 3,330 Time deposits placed in other banks 95 95 Total other investments $ 16,276 $ 12,098 The Company has equity investment in a mutual fund with readily determinable fair value of $3.5 million and $3.3 million as of December 31, 2023 and 2022, respectively, which is measured at fair value with changes in fair value recorded in net income. The Company invested in the mutual fund for CRA purposes. For the mutual fund, the Company recorded a $48 thousand unrealized gain and a $431 thousand unrealized loss for the years ended December 31, 2023 and 2022, respectively. The unrealized gains (losses) of the mutual fund are included in Other income in the Consolidated Statements of Income. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses on Loans | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses on Loans | Loans and Allowance for Credit Losses on Loans The following table presents the composition of the loan portfolio as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 Commercial real estate $ 885,585 $ 842,208 SBA—real estate 224,695 221,340 SBA—non-real estate 14,997 13,377 C&I 120,970 116,951 Home mortgage 518,024 482,949 Consumer 1,574 1,467 Gross loans receivable 1,765,845 1,678,292 Allowance for credit losses (21,993) (19,241) Loans receivable, net (1) $ 1,743,852 $ 1,659,051 (1) Includes net deferred loan costs and unamortized premiums of $140 thousand and $160 thousand as of December 31, 2023 and 2022, respectively. No loans were outstanding to related parties as of December 31, 2023 and 2022. The following table summarizes the activity in the allowance for credit losses on loans by portfolio segment for the years ended December 31, 2023, 2022 and 2021: ($ in thousands) Commercial Real Estate SBA— Real Estate SBA — Non- Real Estate C&I Home Mortgage Consumer Total Balance as of January 1, 2021 $ 8,505 $ 1,802 $ 278 $ 2,563 $ 2,185 $ 19 $ 15,352 Provision for (reversal of) loan losses (1) (355) 279 54 285 706 (10) 959 Charge-offs — (59) (136) — — — (195) Recoveries — — 3 — — 4 7 Balance as of December 31, 2021 8,150 2,022 199 2,848 2,891 13 16,123 Provision for (reversal of) loan losses (1) (1,199) (409) 66 (1,205) 5,935 (7) 3,181 Charge-offs — (14) (127) — — — (141) Recoveries — 8 69 — — 1 78 Balance as of December 31, 2022 6,951 1,607 207 1,643 8,826 7 19,241 Impact of CECL adoption 875 (238) (142) (320) 1,753 (4) 1,924 Provision for (reversal of) credit losses 723 321 73 (11) 466 10 1,582 Charge-offs (686) (46) (35) (97) — — (864) Recoveries 52 13 44 — — 1 110 Balance as of December 31, 2023 $ 7,915 $ 1,657 $ 147 $ 1,215 $ 11,045 $ 14 $ 21,993 (1) Excludes reversal of uncollectible accrued interest receivable of $205 thousand and $438 thousand for the year ended December 31, 2022 and 2021, respectively. The following table presents the allowance for credit losses on loans and recorded investment (not including accrued interest receivable) by portfolio segment and impairment methodology as of December 31, 2023 and 2022: ($ in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total As of December 31, 2023 Allowance for credit losses: Commercial real estate $ — $ 7,915 $ 7,915 SBA—real estate 355 1,302 1,657 SBA—non-real estate — 147 147 C&I — 1,215 1,215 Home mortgage — 11,045 11,045 Consumer — 14 14 Total $ 355 $ 21,638 $ 21,993 Loans (1) : Commercial real estate $ — $ 885,585 $ 885,585 SBA—real estate 2,923 221,772 224,695 SBA—non-real estate — 14,997 14,997 C&I — 120,970 120,970 Home mortgage 2,241 515,783 518,024 Consumer — 1,574 1,574 Total $ 5,164 $ 1,760,681 $ 1,765,845 As of December 31, 2022 Allowance for credit losses: Commercial real estate $ — $ 6,951 $ 6,951 SBA—real estate — 1,607 1,607 SBA—non-real estate — 207 207 C&I 279 1,364 1,643 Home mortgage — 8,826 8,826 Consumer — 7 7 Total $ 279 $ 18,962 $ 19,241 Loans (1) : Commercial real estate $ — $ 842,208 $ 842,208 SBA—real estate 423 220,917 221,340 SBA—non-real estate — 13,377 13,377 C&I 279 116,672 116,951 Home mortgage — 482,949 482,949 Consumer — 1,467 1,467 Total $ 702 $ 1,677,590 $ 1,678,292 (1) Excludes accrued interest receivables of $7.3 million and $6.4 million as of December 31, 2023 and 2022, respectively. The following table presents the recorded investment in impaired loans and the specific allowance for loan losses as of December 31, 2022. December 31, 2022 (1) ($ in thousands) Unpaid Principal Balance Recorded Recorded Related SBA—real estate $ 423 $ 423 $ — $ — C&I 279 — 279 279 Total $ 702 $ 423 $ 279 $ 279 (1) The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans was not considered to be material Collateral-dependent loans are loans where repayment is expected to be provided solely by the sale of the underlying collateral and there are no other available and reliable sources of repayment. The estimated credit losses for these loans are based on the collateral’s fair value less selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less selling costs at the time of foreclosure. As of December 31, 2023, there were $5.2 million of collateral-dependent loans which are primarily secured by residential and commercial real estate, as well as equipment. The allowance for credit losses allocated to these loans as of December 31, 2023 was $355 thousand. The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2023, for which repayment is expected to be obtained through the sale of the underlying collateral. ($ in thousands) Hotel / Motel Single-Family Residential Total SBA—real estate $ 2,923 $ — $ 2,923 Home mortgage — 2,241 2,241 Total $ 2,923 $ 2,241 $ 5,164 The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio as of December 31, 2023 and 2022: ($ in thousands) Nonaccrual Loans with a Related Allowance for Credit Losses Nonaccrual Loans without a Related Allowance for Credit Losses Total Nonaccrual Loans 90 or More Days Past Due & Still Accruing Total (1) As of December 31, 2023 SBA—real estate $ 2,302 $ 1,136 $ 3,438 $ — $ 3,438 SBA—non-real estate 154 — 154 — 154 Home mortgage 249 2,241 2,490 — 2,490 Total $ 2,705 $ 3,377 $ 6,082 $ — $ 6,082 As of December 31, 2022 SBA—real estate $ 423 $ — $ 423 SBA—non-real estate 51 — 51 C&I 279 — 279 Home mortgage 1,280 — 1,280 Total $ 2,033 $ — $ 2,033 (1) Excludes guaranteed portion of SBA loans of $2.0 million and $1.0 million as of December 31, 2023 and 2022 , respectively. Nonaccrual loans and loans past due 90 or more days and still accruing interest include both homogeneous loans that are collectively and individually evaluated for impairment and individually classified impaired loans. The following table represents the aging analysis of the recorded investment in past due loans as of December 31, 2023 and 2022: ($ in thousands) 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due (1) Loans Not Past Due Total (2) As of December 31, 2023 Commercial real estate $ — $ — $ — $ — $ 885,585 $ 885,585 SBA—real estate 1,868 932 1,983 4,783 219,912 224,695 SBA—non-real estate 154 — — 154 14,843 14,997 C&I — — — — 120,970 120,970 Home mortgage 4,076 2,730 2,491 9,297 508,727 518,024 Consumer — — — — 1,574 1,574 Total $ 6,098 $ 3,662 $ 4,474 $ 14,234 $ 1,751,611 $ 1,765,845 As of December 31, 2022 Commercial real estate $ — $ — $ — $ — $ 842,208 $ 842,208 SBA—real estate 199 175 — 374 220,966 221,340 SBA—non-real estate 38 — 26 64 13,313 13,377 C&I — — — — 116,951 116,951 Home mortgage 1,707 1,522 342 3,571 479,378 482,949 Consumer — — — — 1,467 1,467 Total $ 1,944 $ 1,697 $ 368 $ 4,009 $ 1,674,283 $ 1,678,292 (1) Excludes guaranteed portion of SBA loans of $1.9 million and $924 thousand as of December 31, 2023 and 2022, respectively.. (2) Excludes accrued interest receivables of $7.3 million and $6.4 million as of December 31, 2023 and 2022, respectively. Loan Modifications to Borrowers Experiencing Financial Difficult: On January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” , which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty, unless those loans do not share the same risk characteristics with other loans in the portfolio. Provided that is not the case, these modifications are included in their respective cohort and the allowance for credit losses is estimated on a pooled basis consistent with the other loans with similar risk characteristics. Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, other than insignificant payment deferrals, other than insignificant term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The disclosure below provide information on loan modification to borrowers experiencing financial difficulty. No charge-offs of previously modified loans were recorded for the year ended December 31, 2023. The following table presents the amortized cost of modified loans and the financial effects of the modification as of December 31, 2023 by loan class and modification type: Financial Effects of Loan Modification ($ in thousands) Payment Delay Term Extension Total Percentage to Each Loan Type Weighted-Average Payment Deferral (in years) Commercial real estate $ — $ 625 $ 625 0.07 % 1.0 SBA—real estate 5,378 — 5,378 2.39 % 0.8 SBA—non-real estate 131 — 131 0.87 % 0.2 Home mortgage 354 — 354 0.07 % 0.5 Total $ 5,863 $ 625 $ 6,488 The Company tracks the performance of modified loans. A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. There were no loans that received a modification during the three year ended December 31, 2023 that subsequently defaulted. The following table presents the performance of loans that were modified as of December 31, 2023 since the adoption of ASU 2022-02 on January 1, 2023: ($ in thousands) Current 30-89 Days Past Due > 90 Days Past Due Total Commercial real estate $ 625 $ — $ — $ 625 SBA—real estate 4,641 — 737 5,378 SBA—non-real estate 131 — — 131 Home mortgage 354 — — 354 Total $ 5,751 $ — $ 737 $ 6,488 The Company had no additional commitments to lend to borrowers whose loans were modified as of December 31, 2023. Credit Quality Indicators : The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For consumer loans, a credit grade is established at inception, and generally only adjusted based on performance. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention—Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard—Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The following table presents the loan portfolio's amortized cost by loan type, risk rating and year of origination as of December 31, 2023: December 31, 2023 Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans Total (1) ($ in thousands) 2023 2022 2021 2020 2019 Prior Commercial real estate Pass $ 97,114 $ 207,860 $ 154,872 $ 97,137 $ 138,908 $ 163,320 $ 21,059 $ — $ 880,270 Special mention — — — — — — — — — Substandard — 319 — — — 4,996 — — 5,315 Doubtful — — — — — — — — — Subtotal $ 97,114 $ 208,179 $ 154,872 $ 97,137 $ 138,908 $ 168,316 $ 21,059 $ — $ 885,585 Current period charge-offs $ — $ 457 $ 121 $ — $ 91 $ 17 $ — $ — $ 686 SBA— real estate Pass $ 31,920 $ 44,504 $ 26,188 $ 22,732 $ 28,244 $ 64,442 $ — $ — $ 218,030 Special mention — — — — — 1,428 — — 1,428 Substandard — 1,787 1,079 1,136 — 1,235 — — 5,237 Doubtful — — — — — — — — — Subtotal $ 31,920 $ 46,291 $ 27,267 $ 23,868 $ 28,244 $ 67,105 $ — $ — $ 224,695 Current period charge-offs $ — $ — $ 46 $ — $ — $ — $ — $ — $ 46 SBA—non-real estate Pass $ 5,408 $ 2,584 $ 200 $ 1,556 $ 950 $ 3,423 $ — $ — $ 14,121 Special mention — — — — — — — — — Substandard — 591 — — — 187 — — 778 Doubtful — — — — — 98 — — 98 Subtotal $ 5,408 $ 3,175 $ 200 $ 1,556 $ 950 $ 3,708 $ — $ — $ 14,997 Current period charge-offs $ — $ — $ — $ — $ — $ 35 $ — $ — $ 35 C&I Pass $ 15,117 $ 17,939 $ 22,098 $ 4,695 $ 1,720 $ 1,734 $ 55,106 $ 2,561 $ 120,970 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Subtotal $ 15,117 $ 17,939 $ 22,098 $ 4,695 $ 1,720 $ 1,734 $ 55,106 $ 2,561 $ 120,970 Current period charge-offs $ 17 $ — $ 80 $ — $ — $ — $ — $ — $ 97 Home mortgage Pass $ 72,182 $ 304,346 $ 79,585 $ 18,634 $ 8,939 $ 31,848 $ — $ — $ 515,534 Special mention — — — — — — — — — Substandard — 2,241 249 — — — — — 2,490 Doubtful — — — — — — — — — Subtotal $ 72,182 $ 306,587 $ 79,834 $ 18,634 $ 8,939 $ 31,848 $ — $ — $ 518,024 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Pass $ 4 $ — $ — $ — $ 77 $ — $ 1,493 $ — $ 1,574 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Subtotal $ 4 $ — $ — $ — $ 77 $ — $ 1,493 $ — $ 1,574 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 221,745 $ 577,233 $ 282,943 $ 144,754 $ 178,838 $ 264,767 $ 77,658 $ 2,561 $ 1,750,499 Special mention — — — — — 1,428 — — 1,428 Substandard — 4,938 1,328 1,136 — 6,418 — — 13,820 Doubtful — — — — — 98 — — 98 Subtotal $ 221,745 $ 582,171 $ 284,271 $ 145,890 $ 178,838 $ 272,711 $ 77,658 $ 2,561 $ 1,765,845 Current period charge-offs $ 17 $ 457 $ 247 $ — $ 91 $ 52 $ — $ — $ 864 (1) Excludes accrued interest receivables The following table presents the loan portfolio's amortized cost by loan type and risk rating of as of December 31, 2022: ($ in thousands) Pass Special Mention Substandard Doubtful Total (1) Commercial real estate $ 841,645 $ 563 $ — $ — $ 842,208 SBA—real estate 220,348 — 992 — 221,340 SBA—non-real estate 12,897 — 480 — 13,377 C&I 116,396 — 279 276 116,951 Home mortgage 481,669 — 1,280 — 482,949 Consumer 1,467 — — — 1,467 Total $ 1,674,422 $ 563 $ 3,031 $ 276 $ 1,678,292 (1) Excludes accrued interest receivables |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following table presents information regarding the premises and equipment as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 Leasehold improvements $ 9,135 $ 7,998 Furniture and fixtures 4,814 3,983 Equipment and others 3,504 3,288 Total premises and equipment 17,453 15,269 Accumulated depreciation (12,205) (10,869) Total premises and equipment, net $ 5,248 $ 4,400 |
Servicing Assets
Servicing Assets | 12 Months Ended |
Dec. 31, 2023 | |
Servicing Asset [Abstract] | |
Servicing Assets | Servicing Assets The Company recognizes the right to service SBA loans for others as servicing assets when the servicing income the Company receives is more than adequate compensation. Servicing assets are accounted for using the amortization method. Under this method, the Company amortizes the servicing assets over the period of the economic life of the assets arising from estimated net servicing revenue. The Company periodically stratifies its servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Based on the results of the impairment test, there was no valuation allowance for impairment as of December 31, 2023 and 2022. The following table presents an analysis of the changes in activity for loan servicing assets during the years ended December 31, 2023 and 2022: Year Ended December 31, ($ in thousands) 2023 2022 Beginning balance $ 12,759 $ 12,720 Additions from loans sold with servicing retained 3,400 4,424 Amortized to expense (4,418) (4,385) Ending balance $ 11,741 $ 12,759 The fair value of the servicing assets was $17.2 million as of December 31, 2023, which was determined using discount rates ranging from 3.75% to 11.00% and prepayment speeds ranging from 12.80% to 13.20%, depending on the stratification of the specific assets. The fair value of the servicing assets was $16.8 million as of December 31, 2022, which was determined using discount rates ranging from 4.40% to 9.90% and prepayment speeds ranging from 13.10% to 13.80% depending on the stratification of the specific assets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases As a lessee, the Company enters into leases of buildings and our real estate leases primarily relate to bank branches and office space from nonaffiliated parties with remaining lease terms ranging from 1 to 10 years years as of December 31, 2023. Certain lease arrangements contain extension option which are typically around 5 years. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of December 31, 2023 and 2022, operating right-of-use (“ROU”) assets were $8.5 million and $9.1 million, respectively, and related liabilities were $9.3 million and $10.2 million, respectively. Short-term operating leases, which are defined as leases with term of twelve months or less, were not recognized as ROU assets with related lease liabilities as permitted under ASU No. 2016-02. The lease payments on short-term operating leases are immaterial. The Company did not have any finance leases as of December 31, 2023 and 2022. Operating lease ROU assets represent the Company’s right to use the underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in occupancy expense in the consolidated statements of income. The Company’s occupancy expense also includes variable lease costs which is comprised of the Company's share of actual costs for utilities, common area maintenance, property taxes, and insurance that are not included in lease liabilities and are expensed as incurred. Variable lease costs can also include rent escalations based on changes to indices, such as the Consumer Price Index, where the Company estimates future rent increases and records the actual difference to variable costs. The table below summarizes total lease cost for the periods indicated : Year Ended December 31, ($ in thousands) 2023 2022 Operating lease cost $ 2,280 $ 2,046 Variable lease cost 844 859 Total lease cost $ 3,124 $ 2,905 The tables below summarize other information related to the Company’s operating leases as of the associated period: Year Ended December 31, ($ in thousands) 2023 2022 Operating right-of-use assets $ 8,497 $ 9,097 Operating lease liabilities 9,341 10,213 Weighted average remaining lease term - operating leases 5.5 years 6.3 years Weighted average discount rate - operating leases 2.47 % 2.44 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,511 $ 2,253 Rent expense was $3.1 million, $2.9 million and $2.6 million for the years ended December 31, 2023 and 2022 and 2021, respectively. The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the Consolidated Balance Sheets as of December 31, 2023: ($ in thousands) 2024 $ 2,586 2025 1,724 2026 2,085 2027 2,007 2028 1,598 Thereafter 1,925 Total lease payments 11,925 Discount to present value (2,584) Total lease liability $ 9,341 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits Time deposits that exceed the FDIC insurance limit of $250 thousand as of December 31, 2023 and 2022 were $433.9 million and $356.2 million, respectively. The following table presents the scheduled contractual maturities of time deposits as of December 31, 2023: ($ in thousands) 2024 $ 841,257 2025 26,563 2026 17,389 2027 325 2028 and thereafter 255 Total $ 885,789 Deposits from principal officers, directors, and their affiliates as of December 31, 2023 and 2022 were $1.8 million and $810 thousand, respectively. |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements As of December 31, 2023, the Company had $105.0 million advances from FHLB with a weighted average interest rate of 4.65% and a weighted average remaining term of 0.9 years, compared to no borrowings as of December 31, 2022. The Company has a letter of credit with the FHLB in the amount of $67.0 million to secure a public deposit as of both December 31, 2023 and 2022. The Company had available borrowing capacity from the following institutions as of December 31, 2023: ($ in thousands) FHLB $ 363,615 Federal Reserve Bank 182,989 Pacific Coast Bankers Bank 50,000 Zions Bank 25,000 First Horizon Bank 25,000 Total $ 646,604 The Company has pledged approximately $1.39 billion and $1.24 billion of loans as collateral for these lines of credit as of December 31, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the components of income taxes expense (benefit) for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, ($ in thousands) Year Ended 2023 2022 2021 Current income tax expense: Federal $ 6,238 $ 7,959 $ 9,243 State 3,332 4,374 4,885 Total current income tax expense 9,570 12,333 14,128 Deferred income tax expense (benefit): Federal 217 783 (1,614) State (214) 298 (698) Total deferred income tax expense (benefit) 3 1,081 (2,312) Total income tax expense $ 9,573 $ 13,414 $ 11,816 The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate for the periods indicated: Year Ended December 31, 2023 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: Meals and entertainment 0.2 — — State income taxes, net of federal tax benefit 8.0 8.4 8.5 Stock option expense and related excess tax benefits 0.1 — 0.1 Company owned life insurance (0.4) (0.2) (0.1) Other, net (0.3) (0.5) (0.4) Effective tax rate 28.6 % 28.7 % 29.1 % The significant components of deferred tax assets and liabilities are reflected in the following table: December 31, ($ in thousands) 2023 2022 Deferred tax assets: Organizational costs $ 18 $ 20 Allowance for credit losses 6,502 5,688 Loans held for sale — 852 Stock-based compensation 509 386 Accrued compensation 302 272 Lease liability 2,762 3,019 State taxes 675 989 Net unrealized loss on AFS debt securities 6,485 7,491 Nonaccrual loan interest income 224 46 Other 279 77 Total deferred tax assets 17,756 18,840 Deferred tax liabilities: Loan origination costs (1,110) (1,407) Depreciation (553) (423) Right of use asset (2,512) (2,689) Other (272) (5) Total deferred tax liabilities (4,447) (4,524) Net deferred tax asset $ 13,309 $ 14,316 A valuation allowance for deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and tax planning strategies which will create taxable income during the periods in which those temporary differences become deductible. Management reevaluated all positive and negative evidence that existed and concluded all deferred tax assets are realizable. Therefore, no valuation allowance was necessary as of December 31, 2023 and 2022. The Company is subject to U.S. Federal income tax as well as various state taxing jurisdictions. The Company is no longer subject to examination by Federal taxing authorities for tax years prior to 2020 and for state taxing authorities for tax years prior to 2019. There were no significant unrealized tax benefits recorded as of December 31, 2023 and 2022, and the Company does not expect any significant increase in unrealized tax benefits in the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance-Sheet Credit Risk : In the normal course of business, the Company enters into commitments to extend credit such as loan commitments and standby letters of credits (“SBLC”s). These commitments expose the Company to varying degrees of credit and market risk and are subject to the same credit and market risk limitation reviews as those instruments recorded on the Consolidated Balance Sheets. Loan commitments represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These commitments generally have fixed expiration dates or contain termination clauses in the event the customer’s credit quality deteriorates. Since many of the commitments are expected to expire without being drawn upon, the commitment amounts do not necessarily represent future funding requirements. The Company applies the same credit underwriting criteria to extend loans and commitments to customers. Each customer’s credit worthiness is evaluated on a case-by-case basis. Collateral may be obtained based on management’s assessment of a customer’s credit. Collateral may include securities, accounts receivable, inventory, property, plant and equipment, and income producing commercial or other properties. The following table presents the distribution of undisbursed credit-related commitments as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 Loan commitments $ 257,626 $ 265,110 Standby letter of credit 6,707 5,286 Commercial letter of credit 22 451 Total undisbursed credit related commitments $ 264,355 $ 270,847 The majority of these off-balance sheet commitments have a variable interest rate. Management does not anticipate any material losses as a result of these transactions. Investments in low-income housing partnership : The Company invests in qualified affordable housing partnerships. The following table shows the balance of the investments in low-income housing partnerships and the total unfunded commitments related to the investments in low-income housing partnerships as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 Investments in low-income housing partnerships $ 16,887 $ 12,212 Unfunded commitments to fund investments for low-income housing partnerships 11,905 8,748 These balances are reflected in the other assets and other liabilities lines on the Consolidated Balance Sheets. The Company expects to finish fulfilling these commitments during the year ending 2040. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credit and other benefits received and recognizes the amortization in income tax expense on the Consolidated Statements of Income. The Company recognized amortization expense of $1.3 million, $697 thousand and $522 thousand for the years ended December 31, 2023, 2022 and 2021, respectively. Additionally, the Company recognized tax credits and other benefits from the investments in low-income housing partnerships of $1.7 million, $926 thousand and $651 thousand for the years ended December 31, 2023, 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has three stock-based compensation plans currently in effect as of December 31, 2023, as described further below. Total compensation cost that has been charged against earnings for these plans for the years ended December 31, 2023, 2022 and 2021 was $1.3 million, $1.2 million and $558 thousand, respectively. 2005 Plan : In 2005, the Board of Directors and shareholders of the Bank approved a stock option plan for the benefit of directors and employees of the Bank (the “2005 Plan”). The 2005 Plan was assumed by the Company in 2016 at the time of the bank holding company reorganization. Under the 2005 Plan, the Bank was authorized to grant options to purchase up to 770,000 shares of the Company’s common stock. The exercise prices of the options may not be less than 100% of the fair value of the Company’s common stock at the date of grant. The options, when granted, vest either immediately or ratably over five years from the date of the grant and expire after ten years if not exercised. The 2005 Plan expired in 2015, and no future grants can be made under the 2005 Plan. A summary of the transactions under the 2005 Plan for the year ended December 31, 2023 is as follows: ($ in thousands, except share data) Number of Weighted Aggregate Outstanding, as of January 1, 2023 30,000 $ 6.18 $ 149 Options granted — — Options exercised (30,000) 6.18 Options forfeited — — Options expired — — Outstanding, as of December 31, 2023 — $ — $ — Fully vested and expected to vest — $ — $ — Vested — $ — $ — Information related to stock options exercised under the 2005 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2023 2022 2021 Intrinsic value of options exercised $ 86 $ 113 $ 231 Cash received from option exercises 128 128 64 Tax benefit realized from option exercised 2 2 27 2010 Plan : In 2010, the Board of Directors of the Bank approved a new equity incentive plan for granting stock options and restricted stock awards to key employees, officers, and non-employee directors of the Bank (the “2010 Plan”). In 2013, the 2010 Plan was amended and approved by the shareholders to increase the number of shares authorized to be issued under from 1,350,000 shares to 2,500,000 shares of common stock. The 2010 Plan was assumed by the Company in 2016 at the time of the bank holding company reorganization. The exercise prices of stock options granted under the plan may not be less than 100% of the fair value of the Company’s stock at the date of grant. The options, when granted, vest ratably over five years from the date of the grant and expire after ten years if not exercised. The 2010 Plan expired in August 2020, and no further grants can be made under the 2010 Plan. Restricted stock awards issued under the 2010 Plan may or may not be subject to vesting provisions. Owners of the restricted stock awards shall have all of the rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date. A summary of the stock options outstanding under the 2010 Plan for the year ended December 31, 2023 is as follows: ($ in thousands, except share data) Number of Weighted Aggregate Outstanding, as of January 1, 2023 150,000 $ 8.00 $ 474 Options granted — — Options exercised (90,000) 8.00 Options forfeited — — Options expired — — Outstanding, as of December 31, 2023 60,000 $ 8.00 $ 177 Fully vested and expected to vest 60,000 $ 8.00 $ 177 Vested 60,000 $ 8.00 $ 177 Information related to stock options exercised under the 2010 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2023 2022 2021 Intrinsic value of options exercised $ 186 $ 224 $ 86 Cash received from option exercises 720 480 25 Tax provision realized from option exercised (3) — — The weighted average remaining contractual term of stock options outstanding as of December 31, 2023 was 0.3 years. The weighted average remaining contractual term of stock options that were exercisable as of December 31, 2023 was 0.3 years. A summary of the changes in the Company's non-vested restricted stock awards under the 2010 Plan for the year ended December 31, 2023 is as follows: ($ in thousands, except share data) Shares Issued Weighted Average Grant Date Fair Value Aggregate Non-vested, as of January 1, 2023 14,500 $ 8.66 $ 162 Awards granted — — Awards vested (4,500) 6.37 Awards forfeited — — Non-vested, as of December 31, 2023 10,000 $ 9.69 $ 110 Information related to vested restricted stock awards under the 2010 Plan for the periods indicated follows: Year Ended December 31, 2023 2022 2021 Tax benefit (provision) realized from awards vested $ 4 $ — $ (85) As of December 31, 2023, the Company had approximately $18 thousand of unrecognized compensation cost related to unvested restricted stock awards under the 2010 Plan. The Company expects to recognize these costs over a weighted average period of 0.9 years. 2021 Plan : In 2021, the Board of Directors of the Company approved a new equity incentive plan for granting stock options and restricted stock awards to key employees, officers, and non-employee directors of the Company and the Bank (the “2021 Plan”). The 2021 Plan was approved by the Company’s shareholders at the 2021 Annual Meeting. The number of shares authorized to be issued under the 2021 Plan was 1,500,000 shares of the Company’s common stock. The exercise prices of stock options granted under the plan may not be less than 100.00% of the fair value of the Company’s stock at the date of grant. There are no stock options granted under the 2021 Plan as of December 31, 2023. Restricted stock awards issued under the 2021 Plan may or may not be subject to vesting provisions. Owners of the restricted stock awards shall have all rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date. A summary of the changes in the Company’s non-vested restricted stock awards under the 2021 Plan for the year ended December 31, 2023 is as follows: ($ in thousands, except share data) Shares Issued Weighted Aggregate Non-vested, as of January 1, 2023 317,366 $ 11.60 $ 3,542 Awards granted 36,280 8.35 Awards vested (67,295) 10.33 Awards forfeited (7,500) 12.90 Non-vested, as of December 31, 2023 278,851 $ 11.45 $ 3,053 Information related to vested restricted stock awards under the 2021 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2023 2022 2021 Tax benefit (provision) realized from awards vested $ (34) $ 12 $ — There were 1,111,457 shares available for future grants of either stock options or restricted stock awards under the 2021 Plan as of December 31, 2023. The Company had approximately $1.7 million of unrecognized compensation cost related to unvested restricted stock awards under the 2021 Plan as of December 31, 2023. The Company expects to recognize these costs over a weighted average period of 1.6 years. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company sponsors a defined contribution plan, 401(k) profit sharing plan (the “401(k) Plan”), designed to provide retirement benefits financed by participant contributions, as well as contributions from the Company. Employees are eligible to participate in the 401(k) Plan as of the first day of the first calendar month after the date they have completed three months of service with the Company and have attained the age of 18. Each employee is allowed to contribute to the 401(k) Plan up to the maximum percentage allowable, not to exceed the limits of applicable IRS Code Sections. Each year, the Company may, in its discretion, make matching contributions to the 401(k) Plan. Total employer contributions to the 401(k) Plan amounted to $986 thousand, $867 thousand and $752 thousand for the years ended December 31, 2023 and 2022 and 2021, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date and is determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Assets and liabilities recorded at fair value on a recurring basis, such as AFS securities and equity investments. Additionally, from time to time, the Company records fair value adjustments on a nonrecurring basis. These nonrecurring adjustments typically involve application of lower of cost or fair value accounting and write-downs of individual assets. The Company classifies its assets and liabilities recorded at fair value as one of the following three categories and a financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement: Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. Securities AFS : The fair values of investment securities are determined by matrix pricing, which is a mathematical technique used 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). Management obtains the fair values of investment securities on a monthly basis from a third-party pricing service. Other Investment: The Company has an equity investment with readily determinable fair value. The fair value for the equity investment with readily determinable fair value is obtained from unadjusted quoted prices in active markets on the date of measurement and classified as Level 1. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 are summarized below: Fair Value Measure on a Recurring Basis ($ in thousands) Total Quoted Significant Other Significant December 31, 2023 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 43,877 $ — $ 43,877 $ — Residential collateralized mortgage obligations 144,459 — 144,459 — Municipal securities - tax exempt 5,914 — 5,914 — Other investments: Mutual fund - CRA qualified 3,463 3,463 — — December 31, 2022 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 49,764 $ — $ 49,764 $ — Residential collateralized mortgage obligations 160,045 — 160,045 — Other investments: Mutual fund - CRA qualified 3,330 3,330 — — There were no transfers of assets or liabilities between the Level 1 and Level 2 classifications for the years ended December 31, 2023 or 2022. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or fair value and write-downs of individual assets. Collateral-dependent loans : Collateral-dependent loans are loans where repayment is expected to be provided solely by the sale of the underlying collateral and there are no other available and reliable sources of repayment. Prior to the adoption of ASU 2016-13, impaired loans were evaluated and valued at the time the loan was identified as impaired, at the lower of cost or fair value. Fair value for both collateral-dependent and impaired loans are measured based on the value of the collateral securing these loans and are classified at a Level 3 in the fair value hierarchy. Collateral may include real estate, or business assets including equipment, inventory and accounts receivable. The value of real estate collateral is determined based on an appraisal by qualified licensed appraisers hired by the Company. The value of business equipment is based on an appraisal by qualified licensed appraisers hired by the Company if significant, or the equipment’s net book value on the business’ financial statements. Inventory and accounts receivable collateral are valued based on independent field examiner review or aging reports. Appraisals may utilize a single valuation approach or a combination or approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Appraised values are reviewed by management using historical knowledge, market considerations, and knowledge of the client and client’s business. The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of December 31, 2023 and 2022: Fair Value Measure on a Nonrecurring Basis ($ in thousands) Total Quoted Significant Other Significant December 31, 2023 Collateral-dependent loans: SBA—real estate $ 1,432 $ — $ — $ 1,432 Total $ 1,432 $ — $ — $ 1,432 December 31, 2022 Impaired loans: SBA—real estate $ 423 $ — $ — $ 423 Total $ 423 $ — $ — $ 423 Total The following table presents the increase (decrease) in value of certain assets held at the end of the respective reporting periods presented for which a nonrecurring fair value adjustment was recognized during the period presented: Year Ended December 31, ($ in thousands) 2023 2022 2021 Collateral-dependent loans: SBA—real estate $ — $ 28 $ 105 Total $ — $ 28 $ 105 The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of December 31, 2023 and 2022: ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) December 31, 2023 Collateral-dependent loans: SBA—real estate $ 1,432 Income approach - income capitalization Capitalization rate 9.3% to 11.0% 9.9% December 31, 2022 Impaired loans: SBA—real estate $ 423 Income approach - income capitalization Capitalization rate 11.5% 11.5% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of December 31, 2023 and 2022. Financial Instruments : The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of December 31, 2023 and 2022 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets: December 31, 2023 ($ in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 91,216 $ 91,216 $ — $ — $ 91,216 Loans receivable, net 1,743,852 — — 1,793,258 1,793,258 Accrued interest receivable, net 8,259 69 859 7,331 8,259 Other investments: FHLB and PCBB stock 12,718 N/A N/A N/A N/A Time deposits placed 95 — 95 — 95 Servicing assets 11,741 — — 17,218 17,218 Financial liabilities: Deposits 1,807,558 — 1,808,444 — 1,808,444 FHLB advances 105,000 — 104,231 — 104,231 Accrued interest payable 12,628 — 12,628 — 12,628 December 31, 2022 ($ in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 82,972 $ 82,972 $ — $ — $ 82,972 Loans held for sale 44,335 — 47,217 — 47,217 Loans receivable, net 1,659,051 — — 1,626,036 1,626,036 Accrued interest receivable, net 7,180 51 716 6,413 7,180 Other investments: FHLB and PCBB stock 8,673 N/A N/A N/A N/A Time deposits placed 95 — 95 — 95 Servicing assets 12,759 — — 16,845 16,845 Financial liabilities: Deposits 1,885,771 — 1,880,508 — 1,880,508 Accrued interest payable 2,771 — 2,771 — 2,771 |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Matters | Regulatory Capital Matters The Bank is subject to certain risk-based capital and leverage ratio requirements under the U.S. Basel III capital rules administered by the federal and state banking agencies. Failure to be well-capitalized or to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on the Company's operations or financial condition. The Basel III capital rules also require the Bank to maintain a capital conservation buffer of 2.50% above the minimum risk-based capital ratios in order to absorb losses during periods of economic stress, effective January 1, 2019. Banking institutions with a ratio of common equity tier 1 capital to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends. equity repurchases and compensation based on the amount of the shortfall. Management believes that as of December 31, 2023 and 2022, the Bank met all capital adequacy requirements to which they are subject to. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: December 31, 2023 Actual (1) Required for Minimum ($ in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 229,544 13.77 % N/A N/A N/A N/A Bank 227,773 13.66 $ 133,353 8.00 % $ 166,691 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 208,707 12.52 N/A N/A N/A N/A Bank 206,936 12.41 100,014 6.00 133,353 8.00 Common equity Tier 1 capital (to risk-weighted Consolidated 208,707 12.52 N/A N/A N/A N/A Bank 206,936 12.41 75,011 4.50 108,349 6.50 Tier 1 capital (to average assets) Consolidated 208,707 9.57 N/A N/A N/A N/A Bank 206,936 9.49 87,207 4.00 109,008 5.00 (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. December 31, 2022 Actual (1) Required for Minimum ($ in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 213,862 13.06 % N/A N/A N/A N/A Bank 211,981 12.94 $ 131,020 8.00 % $ 163,775 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 194,358 11.87 N/A N/A N/A N/A Bank 192,477 11.75 98,265 6.00 131,020 8.00 Common equity Tier 1 capital (to risk-weighted Consolidated 194,358 11.87 N/A N/A N/A N/A Bank 192,477 11.75 73,699 4.50 106,454 6.50 Tier 1 capital (to average assets) Consolidated 194,358 9.38 N/A N/A N/A N/A Bank 192,477 9.29 82,836 4.00 103,545 5.00 (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic EPS is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. The Company grants restricted stock awards, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Company's common stock. These restricted stock awards meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS. Diluted EPS incorporates the potential impact of contingently issuable shares. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under two-class method was more dilutive. The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, ($ in thousands, except share and per share data) 2023 2022 2021 Basic Net income $ 23,918 $ 33,310 $ 28,840 Distributed and undistributed earnings allocated to participating securities (476) (704) (330) Net income allocated to common shares $ 23,442 $ 32,606 $ 28,510 Weighted average common shares outstanding 15,149,597 15,171,240 15,087,686 Basic earnings per common share $ 1.55 $ 2.15 $ 1.89 Diluted Net income allocated to common shares $ 23,442 $ 32,606 $ 28,510 Weighted average common shares outstanding for basic earnings per common share 15,149,597 15,171,240 15,087,686 Add: Dilutive effects of assumed exercises of stock options 9,260 60,178 67,661 Average shares and dilutive potential common shares 15,158,857 15,231,418 15,155,347 Diluted earnings per common share $ 1.55 $ 2.14 $ 1.88 No share of common stock was antidilutive for the years ended December 31, 2023, 2022 and 2021. |
Parent Company Condensed Financ
Parent Company Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Condensed Financial Statements | Parent Company Condensed Financial Statements The following tables present the Parent Company-only condensed financial statements: Condensed Balance Sheets December 31, ($ in thousands) 2023 2022 Assets Cash and cash equivalents $ 1,653 $ 1,559 Investment in bank subsidiary 190,855 175,035 Deferred tax assets — 21 Other assets 177 301 Total assets $ 192,685 $ 176,916 Liabilities and shareholders' equity Other liabilities $ 59 $ — Shareholders’ equity 192,626 176,916 Total liabilities and shareholders' equity $ 192,685 $ 176,916 Condensed Statements of Income and Comprehensive Income Year Ended December 31, ($ in thousands) 2023 2022 2021 Income Dividends from bank subsidiary $ 11,789 $ 6,675 $ 5,123 Expense Salaries and employee benefits 227 219 226 Occupancy and equipment 49 49 65 FDIC insurance and regulatory assessments — — 8 Directors’ fees 228 214 135 Other expense 445 395 169 Total expense 949 877 603 Income before income tax benefit and undistributed net income of bank subsidiary 10,840 5,798 4,520 Income tax benefit 252 202 141 Equity in undistributed net income of bank subsidiary 12,826 27,310 24,178 Net income 23,918 33,310 28,839 Other comprehensive income (loss), net of tax 2,392 (16,646) (2,037) Comprehensive income $ 26,310 $ 16,664 $ 26,802 Condensed Statements of Cash Flows Year Ended December 31, ($ in thousands) 2023 2022 2021 Cash flows from operating activities Net income $ 23,918 $ 33,310 $ 28,839 Adjustments: Equity in undistributed net loss of bank subsidiary (24,615) (33,985) (29,301) Change in other assets 145 (164) (124) Change in other liabilities 59 (33) (414) Net cash used in operating activities (493) (872) (1,000) Cash flows from investing activities Net cash from investing activities — — — Cash flows from financing activities Repurchase of common stock (3,934) — (28) Cash dividend paid on common stock (7,269) (6,674) (5,132) Proceeds from subsidiaries 11,789 6,675 5,123 Net cash provided by (used in) financing activities 586 1 (37) Net change in cash and cash equivalents 93 (871) (1,037) Cash and cash equivalents at beginning of year 1,560 2,431 3,468 Cash and cash equivalents at end of year $ 1,653 $ 1,560 $ 2,431 |
Business and Basis of Present_2
Business and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: |
Use of Estimates | Use of Estimates: |
Concentration of Risk | Concentration of Risk: Most of the Company’s customers are located within Los Angeles County and the surrounding area. The concentration of loans originated in this area may subject the Company to the risk of adverse impacts of economic, regulatory or other developments that could occur in Southern California. The Company has significant concentration in commercial real estate loans. The Company obtains what it believes to be sufficient collateral to secure potential losses. The extent and value of the collateral obtained varies based upon the details underlying each loan agreement. |
Cash Flows | Cash Flows: Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions. |
Securities | Securities: Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available-for-sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Securities available for sale are measured at fair value and are subject to impairment testing. For securities available for sale in an unrealized loss position, management evaluates whether the decline in fair value has resulted in from a credit-related loss or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. Management (1) recognizes an allowance for credit losses by a charge to earnings for the credit-related component of the decline in fair value, and (2) recognize in other comprehensive income (loss) any non-credit related components of the fair value decline. If the amount of the amortized cost basis expected to be recovered increases in a future period, the valuation reserve would be reduced, but not more than the amount of the current existing reserve for that security. |
Other investments | Other investments: Other investments includes the followings : (i) Federal Home Loan Bank (“FHLB”) Stock - the Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; (ii) Pacific Coast Bankers Bank (“PCBB”) Stock - the Bank is a member of PCBB. PCBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; and (iii) the Company’s investment in a mutual fund to satisfy the Company’s requirements under the Community Reinvestment Act (“CRA”). CRA mutual fund is reported at fair value. Unrealized gains and losses on a CRA fund are recognized in other income in the Consolidated Statements of Income. |
Loans Held for Sale | Loans Held for Sale: Certain Small Business Administration (“SBA”) loans that may be sold prior to maturity are designated as held for sale at origination and are recorded at the lower of their cost or fair value less costs to sell, determined on an aggregate basis. A valuation allowance is established if the market value of such loans is lower than their cost, and operations are charged or credited for valuation adjustments. Origination fees on loans held for sale, net of certain costs of processing and closing the loans, are deferred until the time of sale and are included in the computation of the gain or loss from the sales of the related loans. A portion of the premium on sale of SBA loans is recognized as gains on sales of loans at the time of the sale. These loans are generally sold with servicing retained. |
Loans Receivable and Allowance for Credit Losses | Loans Receivable: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs and an allowance for credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable, deferred loan fees and costs, and unearned income. The accrual of interest income on commercial real estate and other commercial and industrial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses: The Company employs a modeled approach that takes into account current and future economic conditions to estimate lifetime expected losses on a collective basis. With the adoption of Current Expected Credit Losses, the Company elected not to consider accrued interest receivable in its estimated credit losses because the Company writes off uncollectible accrued interest receivable in a timely manner. The Company considers writing off accrued interest amounts once the amounts become 90 days past due to be considered within a timely manner. The Company has elected to write off accrued interest receivable by reversing interest income. The Company uses transition matrices to develop the Probability of Default ("PD") and Loss Given Default ("LGD") approach, incorporating quantitative factors and qualitative considerations in the calculation of the allowance for credit losses for collectively assessed loans. The model provides forecasts of PD and LGD based on national unemployment rates using regression analysis. The Company incorporates future economic conditions using a weighted multiple scenario approach: baseline and adverse. The Company applies a reasonable and supportable period of one year for the baseline scenario and two years for the adverse scenario, after which loss assumptions revert to historical loss information through a one-year reversion period for the baseline scenario and a two-year reversion period for the adverse scenario. Additionally, the Company aggregated loan portfolio based on similar risk characteristic. The Company elected to use the Call Report codes and loan risk ratings for loan segmentation in allowance for credit losses. The Company used the following assumptions in a sensitivity analysis of our allowance for credit losses: unemployment rate forecast based on supervisory severely adverse scenario, 0% prepayment rates, loan risk grade changes of commercial real estate and commercial and industrial loan portfolio in worst case scenario based on the Company history, and applying a 100% weighting to severely adverse scenario. The analysis demonstrates the sensitivity to the allowance for credit losses to key quantitative assumptions and it is not intended to estimate changes in the overall allowance for credit losses and it does not capture all the potential unknown variables that could arise in the forecast period, but it provides an approximation of a possible outcome under hypothetical severe conditions. In order to quantify the credit risk impact of other trends and changes within the loan portfolio, the Company utilizes qualitative adjustments to the modeled estimated loss approaches. Included in the qualitative portion of our analysis of the allowance for credit losses are key inputs including GDP, unemployment rates, interest rates, asset quality ratios, loan portfolio concentration, California house price index and commercial real estate price index. The parameters for making adjustments are established under a Credit Risk Matrix that provides different possible scenarios for each of the factors listed below. The Credit Risk Matrix and the possible scenarios enable the Bank to qualitatively adjust the loss rates. This matrix considers the following nine factors, which are patterned after the guidelines provided under the Federal Financial Institutions Examination Council Interagency Policy Statement on the Allowance for Credit Losses, updated to reflect the adoption of Current Expected Credit Losses: • Changes in lending policies and procedures, including changes in underwriting standards and practices for collection, charge-offs, and recoveries; • Actual and expected changes in national and local economic and business conditions and developments in which the institution operates that affect the collectivity of loans; • Changes in the nature and volume of the loan portfolio; • Changes in the experience, ability, and depth of lending management and staff; • Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified loans; • Changes in the quality of the credit review function; • Changes in the value of the underlying collateral for loans that are not collateral-dependent; • The existence, growth, and effect of any concentrations of credit, and • The effect of other external factors, such as the regulatory, legal and technological environments; competition; and events such as natural disasters. The Company segments loans primarily by Call Report codes (collateral type) and loan risk ratings, considering that the same type of loans share considerable similar risk characteristics. For loans that do not share similar risk characteristics such as nonaccrual loans above $500 thousand, the Company evaluates these loans on an individual basis in accordance with ASC 326. Such nonaccrual loans are considered to have different risk profiles than performing loans and are therefore evaluated individually. The Company elected to collectively assess nonaccrual loans with balances below $500 thousand along with the performing and accrual loans, in order to reduce the operational burden of individually assessing small nonaccrual loans with immaterial balances. For individually assessed loans, the allowance for credit losses is measured using either 1) the present value of future cash flows discounted at the loan’s effective interest rate; or 2) the fair value of the collateral, if the loan is collateral-dependent. For the collateral-dependent loans, the Company obtains a new appraisal to determine the fair value of collateral. The appraisals are based on an “as-is” valuation. To ensure that appraised values remain current, the Company obtains updated appraisals every twelve months from a qualified independent appraiser. If the fair value of the collateral is less than the amortized balance of the loan, the Company recognizes an allowance for credit losses with a corresponding charge to the provision for credit losses. The Company maintains a separate allowance for credit losses for its off-balance sheet commitments. The Company uses an estimated funding rate to allocate an allowance to undrawn exposures. This funding rate is used as a credit conversion factor to capture how much undrawn lines of credit can potentially become drawn at any point. The funding rate is determined based on a look-back period of 8 quarters. Credit loss is not estimated for off-balance sheet commitments that are unconditionally cancellable by the Company. |
Servicing Assets | Servicing Assets: When SBA loans are sold with servicing retained, servicing assets are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the assets as compared to their carrying amount. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in the valuation allowances are reported with other income on the income statement. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds, default rates, and losses. Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of servicing assets is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. |
Company Owned Life Insurance | Company Owned Life Insurance: The Company has purchased life insurance policies on certain key executives. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of 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. |
Premises and Equipment | Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation. Equipment and furnishings are depreciated over 3 to 10 years, and leasehold improvements are amortized over the lesser of the terms of the respective leases or the estimated useful lives. The straight-line method of depreciation is used for financial reporting purposes. Repairs and maintenance are charged to operating expenses as incurred. |
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 commercial 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. |
Low Income Housing Partnership Investments | Low Income Housing Partnership Investments: The Company records the low income housing partnership investments, net of amortization, using the proportional amortization method and the Company reports it to other assets on the Consolidated Balance Sheets. The Company recognizes tax credits in income tax expense on the Consolidated Statement of Income. The commitments to fund the low income housing partnership investments are also recorded and included to other liabilities on the Consolidated Balance Sheets. The Company utilizes the year to date tax credits on the Company’s income tax returns for the year. |
Stock-Based Compensation | Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees based on the fair value of the awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of the grant is used for restricted stock awards. 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. |
Earnings per Common Share | Earnings per Common Share: Basic and diluted earnings per share is based on the two-class method prescribed in ASC Topic 260, Earnings Per Share (ASC 260). Stock options and restricted stock awards are considered outstanding for this calculation unless unearned. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock-based compensation plans. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. |
Income Taxes | 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. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on available-for-sale ("AFS") debt securities, which are also recognized as separate components of shareholders’ equity, net of tax. |
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. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 13—Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Operating Segments | Operating Segments: While the 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. |
New Accounting Pronouncements Adopted and Recently Issued Accounting Pronouncements under Evaluation | New Accounting Pronouncements Adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-13, Financial Instruments — Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . The Company adopted ASU 2016-13 using a modified retrospective approach on January 1, 2023 without electing the fair value option on eligible financial instruments under ASU 2019-05. The Company replaced the current incurred loss accounting model with the Current Expected Credit Losses ("CECL") approach for financial instruments measured at amortized cost and other commitments to extend credit. CECL requires the immediate recognition of estimated credit losses expected to occur over the estimated remaining life of the asset. The forward-looking concept of CECL requires loss estimates to consider historical experience, current conditions and reasonable and supportable forecasts. FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. ("ASU 2022-02") . ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification (“ASC”) Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, ASU 2022-02 requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. The Company adopted ASU 2022-02 on January 1, 2023, and the adoption of ASU 2022-02 did not have a significant impact on its consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . This ASU permits reporting entities to elect to account for tax equity investments, regardless of the tax credit program for which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense. A reporting entity makes an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The Company adopted ASU 2023-02 on January 1, 2024, and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncement under Evaluation In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU amends the disclosure requirements for income taxes, including the requirement for further disaggregation of the income tax rate reconciliation and income taxes paid disclosures. The amendments in this guidance must be applied prospectively, with the option to apply retrospectively. This guidance is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and the adoption is not expected to have a significant impact on the consolidated financial statements. Loan Modifications to Borrowers Experiencing Financial Difficult: On January 1, 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” , which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications to borrowers experiencing financial difficulty, unless those loans do not share the same risk characteristics with other loans in the portfolio. Provided that is not the case, these modifications are included in their respective cohort and the allowance for credit losses is estimated on a pooled basis consistent with the other loans with similar risk characteristics. |
Business and Basis of Present_3
Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Accounting Standards Update and Change in Accounting Principle | The following table illustrates the impact of ASU 2016-13: January 1, 2023, Adoption Date ($ in thousands) As Reported Pre-ASU 2016-13 Impact Assets: Loans: Commercial real estate $ 7,826 $ 6,951 $ 875 SBA—real estate 1,369 1,607 (238) SBA—non-real estate 65 207 (142) C&I 1,323 1,643 (320) Home mortgage 10,579 8,826 1,753 Consumer 3 7 (4) Allowance for credit losses on loans $ 21,165 $ 19,241 $ 1,924 Liabilities: Allowance for credit losses on off-balance sheet commitments $ 446 $ 262 $ 184 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Fair Value, and Corresponding Amounts of Gross Unrealized Gains and Losses for Available for Sale Securities | The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of available-for-sale ("AFS") debt securities as of December 31, 2023 and 2022: December 31, 2023 ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 48,318 $ — $ (4,441) $ 43,877 Residential collateralized mortgage obligations 162,142 67 (17,750) 144,459 Municipal securities - tax exempt 5,726 189 (1) 5,914 Total AFS debt securities $ 216,186 $ 256 $ (22,192) $ 194,250 December 31, 2022 ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 55,189 $ — $ (5,425) $ 49,764 Residential collateralized mortgage obligations 179,953 1 (19,909) 160,045 Total AFS debt securities $ 235,142 $ 1 $ (25,334) $ 209,809 |
Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity | The amortized cost and estimated fair value of AFS debt securities as of December 31, 2023, by contractual maturity, are shown below: ($ in thousands) Amortized Fair After one year through five years $ 1,334 $ 1,282 After five years through ten years 3,304 3,022 After ten years 211,548 189,946 Total AFS debt securities $ 216,186 $ 194,250 |
Schedule of Unrealized Losses on AFS Debt Securities | The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss as of December 31, 2023 and 2022: December 31, 2023 Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 6,488 $ (59) $ 37,389 $ (4,382) $ 43,877 $ (4,441) Residential collateralized mortgage obligations 25,439 (177) 105,963 (17,573) 131,402 (17,750) Municipal securities - tax exempt 1,842 (1) — — 1,842 (1) Total AFS debt securities $ 33,769 $ (237) $ 143,352 $ (21,955) $ 177,121 $ (22,192) December 31, 2022 Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 26,347 $ (1,485) $ 23,417 $ (3,940) $ 49,764 $ (5,425) Residential collateralized mortgage obligations 81,320 (3,888) 71,604 (16,021) 152,924 (19,909) Total AFS debt securities $ 107,667 $ (5,373) $ 95,021 $ (19,961) $ 202,688 $ (25,334) |
Schedule of Other Investments | The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheets as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 FHLB stock $ 12,528 $ 8,483 Pacific Coast Bankers Bank ("PCBB") stock 190 190 Mutual fund - Community Reinvestment Act ("CRA") qualified 3,463 3,330 Time deposits placed in other banks 95 95 Total other investments $ 16,276 $ 12,098 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses on Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Composition of Loan Portfolio | The following table presents the composition of the loan portfolio as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 Commercial real estate $ 885,585 $ 842,208 SBA—real estate 224,695 221,340 SBA—non-real estate 14,997 13,377 C&I 120,970 116,951 Home mortgage 518,024 482,949 Consumer 1,574 1,467 Gross loans receivable 1,765,845 1,678,292 Allowance for credit losses (21,993) (19,241) Loans receivable, net (1) $ 1,743,852 $ 1,659,051 (1) Includes net deferred loan costs and unamortized premiums of $140 thousand and $160 thousand as of December 31, 2023 and 2022, respectively. The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2023, for which repayment is expected to be obtained through the sale of the underlying collateral. ($ in thousands) Hotel / Motel Single-Family Residential Total SBA—real estate $ 2,923 $ — $ 2,923 Home mortgage — 2,241 2,241 Total $ 2,923 $ 2,241 $ 5,164 |
Schedule of Activity in Allowance for Loan Losses by Portfolio Segment | The following table summarizes the activity in the allowance for credit losses on loans by portfolio segment for the years ended December 31, 2023, 2022 and 2021: ($ in thousands) Commercial Real Estate SBA— Real Estate SBA — Non- Real Estate C&I Home Mortgage Consumer Total Balance as of January 1, 2021 $ 8,505 $ 1,802 $ 278 $ 2,563 $ 2,185 $ 19 $ 15,352 Provision for (reversal of) loan losses (1) (355) 279 54 285 706 (10) 959 Charge-offs — (59) (136) — — — (195) Recoveries — — 3 — — 4 7 Balance as of December 31, 2021 8,150 2,022 199 2,848 2,891 13 16,123 Provision for (reversal of) loan losses (1) (1,199) (409) 66 (1,205) 5,935 (7) 3,181 Charge-offs — (14) (127) — — — (141) Recoveries — 8 69 — — 1 78 Balance as of December 31, 2022 6,951 1,607 207 1,643 8,826 7 19,241 Impact of CECL adoption 875 (238) (142) (320) 1,753 (4) 1,924 Provision for (reversal of) credit losses 723 321 73 (11) 466 10 1,582 Charge-offs (686) (46) (35) (97) — — (864) Recoveries 52 13 44 — — 1 110 Balance as of December 31, 2023 $ 7,915 $ 1,657 $ 147 $ 1,215 $ 11,045 $ 14 $ 21,993 (1) Excludes reversal of uncollectible accrued interest receivable of $205 thousand and $438 thousand for the year ended December 31, 2022 and 2021, respectively. The following table presents the allowance for credit losses on loans and recorded investment (not including accrued interest receivable) by portfolio segment and impairment methodology as of December 31, 2023 and 2022: ($ in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total As of December 31, 2023 Allowance for credit losses: Commercial real estate $ — $ 7,915 $ 7,915 SBA—real estate 355 1,302 1,657 SBA—non-real estate — 147 147 C&I — 1,215 1,215 Home mortgage — 11,045 11,045 Consumer — 14 14 Total $ 355 $ 21,638 $ 21,993 Loans (1) : Commercial real estate $ — $ 885,585 $ 885,585 SBA—real estate 2,923 221,772 224,695 SBA—non-real estate — 14,997 14,997 C&I — 120,970 120,970 Home mortgage 2,241 515,783 518,024 Consumer — 1,574 1,574 Total $ 5,164 $ 1,760,681 $ 1,765,845 As of December 31, 2022 Allowance for credit losses: Commercial real estate $ — $ 6,951 $ 6,951 SBA—real estate — 1,607 1,607 SBA—non-real estate — 207 207 C&I 279 1,364 1,643 Home mortgage — 8,826 8,826 Consumer — 7 7 Total $ 279 $ 18,962 $ 19,241 Loans (1) : Commercial real estate $ — $ 842,208 $ 842,208 SBA—real estate 423 220,917 221,340 SBA—non-real estate — 13,377 13,377 C&I 279 116,672 116,951 Home mortgage — 482,949 482,949 Consumer — 1,467 1,467 Total $ 702 $ 1,677,590 $ 1,678,292 (1) Excludes accrued interest receivables of $7.3 million and $6.4 million as of December 31, 2023 and 2022, respectively. The following table presents the recorded investment in impaired loans and the specific allowance for loan losses as of December 31, 2022. December 31, 2022 (1) ($ in thousands) Unpaid Principal Balance Recorded Recorded Related SBA—real estate $ 423 $ 423 $ — $ — C&I 279 — 279 279 Total $ 702 $ 423 $ 279 $ 279 (1) The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans was not considered to be material |
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment | The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio as of December 31, 2023 and 2022: ($ in thousands) Nonaccrual Loans with a Related Allowance for Credit Losses Nonaccrual Loans without a Related Allowance for Credit Losses Total Nonaccrual Loans 90 or More Days Past Due & Still Accruing Total (1) As of December 31, 2023 SBA—real estate $ 2,302 $ 1,136 $ 3,438 $ — $ 3,438 SBA—non-real estate 154 — 154 — 154 Home mortgage 249 2,241 2,490 — 2,490 Total $ 2,705 $ 3,377 $ 6,082 $ — $ 6,082 As of December 31, 2022 SBA—real estate $ 423 $ — $ 423 SBA—non-real estate 51 — 51 C&I 279 — 279 Home mortgage 1,280 — 1,280 Total $ 2,033 $ — $ 2,033 (1) Excludes guaranteed portion of SBA loans of $2.0 million and $1.0 million as of December 31, 2023 and 2022 , respectively. |
Schedule of Aging Analysis of Recorded Investment in Past Due Loans | The following table represents the aging analysis of the recorded investment in past due loans as of December 31, 2023 and 2022: ($ in thousands) 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due (1) Loans Not Past Due Total (2) As of December 31, 2023 Commercial real estate $ — $ — $ — $ — $ 885,585 $ 885,585 SBA—real estate 1,868 932 1,983 4,783 219,912 224,695 SBA—non-real estate 154 — — 154 14,843 14,997 C&I — — — — 120,970 120,970 Home mortgage 4,076 2,730 2,491 9,297 508,727 518,024 Consumer — — — — 1,574 1,574 Total $ 6,098 $ 3,662 $ 4,474 $ 14,234 $ 1,751,611 $ 1,765,845 As of December 31, 2022 Commercial real estate $ — $ — $ — $ — $ 842,208 $ 842,208 SBA—real estate 199 175 — 374 220,966 221,340 SBA—non-real estate 38 — 26 64 13,313 13,377 C&I — — — — 116,951 116,951 Home mortgage 1,707 1,522 342 3,571 479,378 482,949 Consumer — — — — 1,467 1,467 Total $ 1,944 $ 1,697 $ 368 $ 4,009 $ 1,674,283 $ 1,678,292 (1) Excludes guaranteed portion of SBA loans of $1.9 million and $924 thousand as of December 31, 2023 and 2022, respectively.. (2) Excludes accrued interest receivables of $7.3 million and $6.4 million as of December 31, 2023 and 2022, respectively. |
Schedule of Financing Receivable, Modified | The following table presents the amortized cost of modified loans and the financial effects of the modification as of December 31, 2023 by loan class and modification type: Financial Effects of Loan Modification ($ in thousands) Payment Delay Term Extension Total Percentage to Each Loan Type Weighted-Average Payment Deferral (in years) Commercial real estate $ — $ 625 $ 625 0.07 % 1.0 SBA—real estate 5,378 — 5,378 2.39 % 0.8 SBA—non-real estate 131 — 131 0.87 % 0.2 Home mortgage 354 — 354 0.07 % 0.5 Total $ 5,863 $ 625 $ 6,488 The following table presents the performance of loans that were modified as of December 31, 2023 since the adoption of ASU 2022-02 on January 1, 2023: ($ in thousands) Current 30-89 Days Past Due > 90 Days Past Due Total Commercial real estate $ 625 $ — $ — $ 625 SBA—real estate 4,641 — 737 5,378 SBA—non-real estate 131 — — 131 Home mortgage 354 — — 354 Total $ 5,751 $ — $ 737 $ 6,488 |
Schedule of Credit Risk Ratings by Portfolio Segment | The following table presents the loan portfolio's amortized cost by loan type, risk rating and year of origination as of December 31, 2023: December 31, 2023 Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans Total (1) ($ in thousands) 2023 2022 2021 2020 2019 Prior Commercial real estate Pass $ 97,114 $ 207,860 $ 154,872 $ 97,137 $ 138,908 $ 163,320 $ 21,059 $ — $ 880,270 Special mention — — — — — — — — — Substandard — 319 — — — 4,996 — — 5,315 Doubtful — — — — — — — — — Subtotal $ 97,114 $ 208,179 $ 154,872 $ 97,137 $ 138,908 $ 168,316 $ 21,059 $ — $ 885,585 Current period charge-offs $ — $ 457 $ 121 $ — $ 91 $ 17 $ — $ — $ 686 SBA— real estate Pass $ 31,920 $ 44,504 $ 26,188 $ 22,732 $ 28,244 $ 64,442 $ — $ — $ 218,030 Special mention — — — — — 1,428 — — 1,428 Substandard — 1,787 1,079 1,136 — 1,235 — — 5,237 Doubtful — — — — — — — — — Subtotal $ 31,920 $ 46,291 $ 27,267 $ 23,868 $ 28,244 $ 67,105 $ — $ — $ 224,695 Current period charge-offs $ — $ — $ 46 $ — $ — $ — $ — $ — $ 46 SBA—non-real estate Pass $ 5,408 $ 2,584 $ 200 $ 1,556 $ 950 $ 3,423 $ — $ — $ 14,121 Special mention — — — — — — — — — Substandard — 591 — — — 187 — — 778 Doubtful — — — — — 98 — — 98 Subtotal $ 5,408 $ 3,175 $ 200 $ 1,556 $ 950 $ 3,708 $ — $ — $ 14,997 Current period charge-offs $ — $ — $ — $ — $ — $ 35 $ — $ — $ 35 C&I Pass $ 15,117 $ 17,939 $ 22,098 $ 4,695 $ 1,720 $ 1,734 $ 55,106 $ 2,561 $ 120,970 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Subtotal $ 15,117 $ 17,939 $ 22,098 $ 4,695 $ 1,720 $ 1,734 $ 55,106 $ 2,561 $ 120,970 Current period charge-offs $ 17 $ — $ 80 $ — $ — $ — $ — $ — $ 97 Home mortgage Pass $ 72,182 $ 304,346 $ 79,585 $ 18,634 $ 8,939 $ 31,848 $ — $ — $ 515,534 Special mention — — — — — — — — — Substandard — 2,241 249 — — — — — 2,490 Doubtful — — — — — — — — — Subtotal $ 72,182 $ 306,587 $ 79,834 $ 18,634 $ 8,939 $ 31,848 $ — $ — $ 518,024 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Pass $ 4 $ — $ — $ — $ 77 $ — $ 1,493 $ — $ 1,574 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Subtotal $ 4 $ — $ — $ — $ 77 $ — $ 1,493 $ — $ 1,574 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 221,745 $ 577,233 $ 282,943 $ 144,754 $ 178,838 $ 264,767 $ 77,658 $ 2,561 $ 1,750,499 Special mention — — — — — 1,428 — — 1,428 Substandard — 4,938 1,328 1,136 — 6,418 — — 13,820 Doubtful — — — — — 98 — — 98 Subtotal $ 221,745 $ 582,171 $ 284,271 $ 145,890 $ 178,838 $ 272,711 $ 77,658 $ 2,561 $ 1,765,845 Current period charge-offs $ 17 $ 457 $ 247 $ — $ 91 $ 52 $ — $ — $ 864 (1) Excludes accrued interest receivables The following table presents the loan portfolio's amortized cost by loan type and risk rating of as of December 31, 2022: ($ in thousands) Pass Special Mention Substandard Doubtful Total (1) Commercial real estate $ 841,645 $ 563 $ — $ — $ 842,208 SBA—real estate 220,348 — 992 — 221,340 SBA—non-real estate 12,897 — 480 — 13,377 C&I 116,396 — 279 276 116,951 Home mortgage 481,669 — 1,280 — 482,949 Consumer 1,467 — — — 1,467 Total $ 1,674,422 $ 563 $ 3,031 $ 276 $ 1,678,292 (1) Excludes accrued interest receivables |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The following table presents information regarding the premises and equipment as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 Leasehold improvements $ 9,135 $ 7,998 Furniture and fixtures 4,814 3,983 Equipment and others 3,504 3,288 Total premises and equipment 17,453 15,269 Accumulated depreciation (12,205) (10,869) Total premises and equipment, net $ 5,248 $ 4,400 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Servicing Asset [Abstract] | |
Schedule of Activity for Loan Servicing Assets | The following table presents an analysis of the changes in activity for loan servicing assets during the years ended December 31, 2023 and 2022: Year Ended December 31, ($ in thousands) 2023 2022 Beginning balance $ 12,759 $ 12,720 Additions from loans sold with servicing retained 3,400 4,424 Amortized to expense (4,418) (4,385) Ending balance $ 11,741 $ 12,759 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The table below summarizes total lease cost for the periods indicated : Year Ended December 31, ($ in thousands) 2023 2022 Operating lease cost $ 2,280 $ 2,046 Variable lease cost 844 859 Total lease cost $ 3,124 $ 2,905 |
Schedule of Other Information Related to Operating Leases | The tables below summarize other information related to the Company’s operating leases as of the associated period: Year Ended December 31, ($ in thousands) 2023 2022 Operating right-of-use assets $ 8,497 $ 9,097 Operating lease liabilities 9,341 10,213 Weighted average remaining lease term - operating leases 5.5 years 6.3 years Weighted average discount rate - operating leases 2.47 % 2.44 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,511 $ 2,253 |
Schedule of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease liability | The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the Consolidated Balance Sheets as of December 31, 2023: ($ in thousands) 2024 $ 2,586 2025 1,724 2026 2,085 2027 2,007 2028 1,598 Thereafter 1,925 Total lease payments 11,925 Discount to present value (2,584) Total lease liability $ 9,341 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | The following table presents the scheduled contractual maturities of time deposits as of December 31, 2023: ($ in thousands) 2024 $ 841,257 2025 26,563 2026 17,389 2027 325 2028 and thereafter 255 Total $ 885,789 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings Available to the Company from Institutions | The Company had available borrowing capacity from the following institutions as of December 31, 2023: ($ in thousands) FHLB $ 363,615 Federal Reserve Bank 182,989 Pacific Coast Bankers Bank 50,000 Zions Bank 25,000 First Horizon Bank 25,000 Total $ 646,604 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The following table presents the components of income taxes expense (benefit) for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, ($ in thousands) Year Ended 2023 2022 2021 Current income tax expense: Federal $ 6,238 $ 7,959 $ 9,243 State 3,332 4,374 4,885 Total current income tax expense 9,570 12,333 14,128 Deferred income tax expense (benefit): Federal 217 783 (1,614) State (214) 298 (698) Total deferred income tax expense (benefit) 3 1,081 (2,312) Total income tax expense $ 9,573 $ 13,414 $ 11,816 |
Schedule of Effective Tax Rates Differ from Federal Statutory Rates | The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate for the periods indicated: Year Ended December 31, 2023 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: Meals and entertainment 0.2 — — State income taxes, net of federal tax benefit 8.0 8.4 8.5 Stock option expense and related excess tax benefits 0.1 — 0.1 Company owned life insurance (0.4) (0.2) (0.1) Other, net (0.3) (0.5) (0.4) Effective tax rate 28.6 % 28.7 % 29.1 % |
Schedule of Net Deferred Tax Assets Included in Statement of Financial Position | The significant components of deferred tax assets and liabilities are reflected in the following table: December 31, ($ in thousands) 2023 2022 Deferred tax assets: Organizational costs $ 18 $ 20 Allowance for credit losses 6,502 5,688 Loans held for sale — 852 Stock-based compensation 509 386 Accrued compensation 302 272 Lease liability 2,762 3,019 State taxes 675 989 Net unrealized loss on AFS debt securities 6,485 7,491 Nonaccrual loan interest income 224 46 Other 279 77 Total deferred tax assets 17,756 18,840 Deferred tax liabilities: Loan origination costs (1,110) (1,407) Depreciation (553) (423) Right of use asset (2,512) (2,689) Other (272) (5) Total deferred tax liabilities (4,447) (4,524) Net deferred tax asset $ 13,309 $ 14,316 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Distribution of Undisbursed Loan Commitments | The following table presents the distribution of undisbursed credit-related commitments as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 Loan commitments $ 257,626 $ 265,110 Standby letter of credit 6,707 5,286 Commercial letter of credit 22 451 Total undisbursed credit related commitments $ 264,355 $ 270,847 |
Schedule of Balance and Total Unfunded Commitments Related to Investment in Low Income Housing Partnerships | The following table shows the balance of the investments in low-income housing partnerships and the total unfunded commitments related to the investments in low-income housing partnerships as of December 31, 2023 and 2022: December 31, ($ in thousands) 2023 2022 Investments in low-income housing partnerships $ 16,887 $ 12,212 Unfunded commitments to fund investments for low-income housing partnerships 11,905 8,748 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Stock Options Activity | A summary of the transactions under the 2005 Plan for the year ended December 31, 2023 is as follows: ($ in thousands, except share data) Number of Weighted Aggregate Outstanding, as of January 1, 2023 30,000 $ 6.18 $ 149 Options granted — — Options exercised (30,000) 6.18 Options forfeited — — Options expired — — Outstanding, as of December 31, 2023 — $ — $ — Fully vested and expected to vest — $ — $ — Vested — $ — $ — A summary of the stock options outstanding under the 2010 Plan for the year ended December 31, 2023 is as follows: ($ in thousands, except share data) Number of Weighted Aggregate Outstanding, as of January 1, 2023 150,000 $ 8.00 $ 474 Options granted — — Options exercised (90,000) 8.00 Options forfeited — — Options expired — — Outstanding, as of December 31, 2023 60,000 $ 8.00 $ 177 Fully vested and expected to vest 60,000 $ 8.00 $ 177 Vested 60,000 $ 8.00 $ 177 |
Schedule of Information Related to Stock Option Plan | Information related to stock options exercised under the 2005 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2023 2022 2021 Intrinsic value of options exercised $ 86 $ 113 $ 231 Cash received from option exercises 128 128 64 Tax benefit realized from option exercised 2 2 27 Information related to stock options exercised under the 2010 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2023 2022 2021 Intrinsic value of options exercised $ 186 $ 224 $ 86 Cash received from option exercises 720 480 25 Tax provision realized from option exercised (3) — — |
Schedule of Changes in Non-vested Restricted Stock Awards | A summary of the changes in the Company's non-vested restricted stock awards under the 2010 Plan for the year ended December 31, 2023 is as follows: ($ in thousands, except share data) Shares Issued Weighted Average Grant Date Fair Value Aggregate Non-vested, as of January 1, 2023 14,500 $ 8.66 $ 162 Awards granted — — Awards vested (4,500) 6.37 Awards forfeited — — Non-vested, as of December 31, 2023 10,000 $ 9.69 $ 110 A summary of the changes in the Company’s non-vested restricted stock awards under the 2021 Plan for the year ended December 31, 2023 is as follows: ($ in thousands, except share data) Shares Issued Weighted Aggregate Non-vested, as of January 1, 2023 317,366 $ 11.60 $ 3,542 Awards granted 36,280 8.35 Awards vested (67,295) 10.33 Awards forfeited (7,500) 12.90 Non-vested, as of December 31, 2023 278,851 $ 11.45 $ 3,053 |
Schedule of Share Based Compensation Arrangement Information Related to Plan | Information related to vested restricted stock awards under the 2010 Plan for the periods indicated follows: Year Ended December 31, 2023 2022 2021 Tax benefit (provision) realized from awards vested $ 4 $ — $ (85) Information related to vested restricted stock awards under the 2021 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2023 2022 2021 Tax benefit (provision) realized from awards vested $ (34) $ 12 $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 are summarized below: Fair Value Measure on a Recurring Basis ($ in thousands) Total Quoted Significant Other Significant December 31, 2023 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 43,877 $ — $ 43,877 $ — Residential collateralized mortgage obligations 144,459 — 144,459 — Municipal securities - tax exempt 5,914 — 5,914 — Other investments: Mutual fund - CRA qualified 3,463 3,463 — — December 31, 2022 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 49,764 $ — $ 49,764 $ — Residential collateralized mortgage obligations 160,045 — 160,045 — Other investments: Mutual fund - CRA qualified 3,330 3,330 — — |
Schedule of Fair Value Hierarchy and Fair Value of Assets that Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis | The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of December 31, 2023 and 2022: Fair Value Measure on a Nonrecurring Basis ($ in thousands) Total Quoted Significant Other Significant December 31, 2023 Collateral-dependent loans: SBA—real estate $ 1,432 $ — $ — $ 1,432 Total $ 1,432 $ — $ — $ 1,432 December 31, 2022 Impaired loans: SBA—real estate $ 423 $ — $ — $ 423 Total $ 423 $ — $ — $ 423 Total |
Schedule of Increase (Decrease) In Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment | The following table presents the increase (decrease) in value of certain assets held at the end of the respective reporting periods presented for which a nonrecurring fair value adjustment was recognized during the period presented: Year Ended December 31, ($ in thousands) 2023 2022 2021 Collateral-dependent loans: SBA—real estate $ — $ 28 $ 105 Total $ — $ 28 $ 105 |
Schedule of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements | The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of December 31, 2023 and 2022: ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) December 31, 2023 Collateral-dependent loans: SBA—real estate $ 1,432 Income approach - income capitalization Capitalization rate 9.3% to 11.0% 9.9% December 31, 2022 Impaired loans: SBA—real estate $ 423 Income approach - income capitalization Capitalization rate 11.5% 11.5% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of December 31, 2023 and 2022. |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | Financial Instruments : The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of December 31, 2023 and 2022 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets: December 31, 2023 ($ in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 91,216 $ 91,216 $ — $ — $ 91,216 Loans receivable, net 1,743,852 — — 1,793,258 1,793,258 Accrued interest receivable, net 8,259 69 859 7,331 8,259 Other investments: FHLB and PCBB stock 12,718 N/A N/A N/A N/A Time deposits placed 95 — 95 — 95 Servicing assets 11,741 — — 17,218 17,218 Financial liabilities: Deposits 1,807,558 — 1,808,444 — 1,808,444 FHLB advances 105,000 — 104,231 — 104,231 Accrued interest payable 12,628 — 12,628 — 12,628 December 31, 2022 ($ in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 82,972 $ 82,972 $ — $ — $ 82,972 Loans held for sale 44,335 — 47,217 — 47,217 Loans receivable, net 1,659,051 — — 1,626,036 1,626,036 Accrued interest receivable, net 7,180 51 716 6,413 7,180 Other investments: FHLB and PCBB stock 8,673 N/A N/A N/A N/A Time deposits placed 95 — 95 — 95 Servicing assets 12,759 — — 16,845 16,845 Financial liabilities: Deposits 1,885,771 — 1,880,508 — 1,880,508 Accrued interest payable 2,771 — 2,771 — 2,771 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer | The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: December 31, 2023 Actual (1) Required for Minimum ($ in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 229,544 13.77 % N/A N/A N/A N/A Bank 227,773 13.66 $ 133,353 8.00 % $ 166,691 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 208,707 12.52 N/A N/A N/A N/A Bank 206,936 12.41 100,014 6.00 133,353 8.00 Common equity Tier 1 capital (to risk-weighted Consolidated 208,707 12.52 N/A N/A N/A N/A Bank 206,936 12.41 75,011 4.50 108,349 6.50 Tier 1 capital (to average assets) Consolidated 208,707 9.57 N/A N/A N/A N/A Bank 206,936 9.49 87,207 4.00 109,008 5.00 (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. December 31, 2022 Actual (1) Required for Minimum ($ in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 213,862 13.06 % N/A N/A N/A N/A Bank 211,981 12.94 $ 131,020 8.00 % $ 163,775 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 194,358 11.87 N/A N/A N/A N/A Bank 192,477 11.75 98,265 6.00 131,020 8.00 Common equity Tier 1 capital (to risk-weighted Consolidated 194,358 11.87 N/A N/A N/A N/A Bank 192,477 11.75 73,699 4.50 106,454 6.50 Tier 1 capital (to average assets) Consolidated 194,358 9.38 N/A N/A N/A N/A Bank 192,477 9.29 82,836 4.00 103,545 5.00 (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, ($ in thousands, except share and per share data) 2023 2022 2021 Basic Net income $ 23,918 $ 33,310 $ 28,840 Distributed and undistributed earnings allocated to participating securities (476) (704) (330) Net income allocated to common shares $ 23,442 $ 32,606 $ 28,510 Weighted average common shares outstanding 15,149,597 15,171,240 15,087,686 Basic earnings per common share $ 1.55 $ 2.15 $ 1.89 Diluted Net income allocated to common shares $ 23,442 $ 32,606 $ 28,510 Weighted average common shares outstanding for basic earnings per common share 15,149,597 15,171,240 15,087,686 Add: Dilutive effects of assumed exercises of stock options 9,260 60,178 67,661 Average shares and dilutive potential common shares 15,158,857 15,231,418 15,155,347 Diluted earnings per common share $ 1.55 $ 2.14 $ 1.88 |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | The following tables present the Parent Company-only condensed financial statements: Condensed Balance Sheets December 31, ($ in thousands) 2023 2022 Assets Cash and cash equivalents $ 1,653 $ 1,559 Investment in bank subsidiary 190,855 175,035 Deferred tax assets — 21 Other assets 177 301 Total assets $ 192,685 $ 176,916 Liabilities and shareholders' equity Other liabilities $ 59 $ — Shareholders’ equity 192,626 176,916 Total liabilities and shareholders' equity $ 192,685 $ 176,916 |
Schedule of Condensed Statements of Income and Comprehensive Income | Condensed Statements of Income and Comprehensive Income Year Ended December 31, ($ in thousands) 2023 2022 2021 Income Dividends from bank subsidiary $ 11,789 $ 6,675 $ 5,123 Expense Salaries and employee benefits 227 219 226 Occupancy and equipment 49 49 65 FDIC insurance and regulatory assessments — — 8 Directors’ fees 228 214 135 Other expense 445 395 169 Total expense 949 877 603 Income before income tax benefit and undistributed net income of bank subsidiary 10,840 5,798 4,520 Income tax benefit 252 202 141 Equity in undistributed net income of bank subsidiary 12,826 27,310 24,178 Net income 23,918 33,310 28,839 Other comprehensive income (loss), net of tax 2,392 (16,646) (2,037) Comprehensive income $ 26,310 $ 16,664 $ 26,802 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, ($ in thousands) 2023 2022 2021 Cash flows from operating activities Net income $ 23,918 $ 33,310 $ 28,839 Adjustments: Equity in undistributed net loss of bank subsidiary (24,615) (33,985) (29,301) Change in other assets 145 (164) (124) Change in other liabilities 59 (33) (414) Net cash used in operating activities (493) (872) (1,000) Cash flows from investing activities Net cash from investing activities — — — Cash flows from financing activities Repurchase of common stock (3,934) — (28) Cash dividend paid on common stock (7,269) (6,674) (5,132) Proceeds from subsidiaries 11,789 6,675 5,123 Net cash provided by (used in) financing activities 586 1 (37) Net change in cash and cash equivalents 93 (871) (1,037) Cash and cash equivalents at beginning of year 1,560 2,431 3,468 Cash and cash equivalents at end of year $ 1,653 $ 1,560 $ 2,431 |
Business and Basis of Present_4
Business and Basis of Presentation - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) factor | Dec. 31, 2022 USD ($) | Jan. 01, 2023 USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Historical loss of reversion period, baseline scenario | 1 year | ||
Historical loss of reversion period, adverse scenario | 2 years | ||
Number of matrix factors | factor | 9 | ||
Non accrual loan | $ 500,000 | ||
Assess nonaccrual loans | 500,000 | ||
Interest and/or penalties related to income tax matters | 0 | $ 0 | |
Allowance for credit losses on off-balance sheet commitments | $ 446,000 | ||
Decrease to retained earnings | $ (120,855,000) | $ (105,690,000) | |
Impact | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Allowance for credit losses on off-balance sheet commitments | 184,000 | ||
Impact | Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Accounts receivable, allowance for credit loss | 1,900,000 | ||
Allowance for credit losses on off-balance sheet commitments | 184,000 | ||
Deferred tax assets | 624,000 | ||
Decrease to retained earnings | $ 1,500,000 | ||
Minimum | Equipment and Furnishings | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Equipment and furnishings, useful lives | 3 years | ||
Maximum | Equipment and Furnishings | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Equipment and furnishings, useful lives | 10 years | ||
Open Bank | OP Bancorp | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Percentage of voting equity interests acquired | 100% |
Business and Basis of Present_5
Business and Basis of Presentation - Schedule of New Accounting Pronouncements Adopted (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||||
Allowance for credit losses on loans | $ 21,993 | $ 21,165 | $ 19,241 | $ 16,123 | $ 15,352 |
Liabilities | |||||
Allowance for credit losses on off-balance sheet commitments | 446 | ||||
Real Estate | Commercial real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | 7,826 | ||||
Real Estate | SBA—real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | 1,369 | ||||
SBA—non-real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | 147 | 65 | 207 | 199 | 278 |
C&I | |||||
ASSETS | |||||
Allowance for credit losses on loans | 1,215 | 1,323 | 1,643 | 2,848 | 2,563 |
Home mortgage | |||||
ASSETS | |||||
Allowance for credit losses on loans | 11,045 | 10,579 | 8,826 | 2,891 | 2,185 |
Consumer | |||||
ASSETS | |||||
Allowance for credit losses on loans | $ 14 | 3 | $ 7 | $ 13 | $ 19 |
Pre-ASU 2016-13 | |||||
ASSETS | |||||
Allowance for credit losses on loans | 19,241 | ||||
Liabilities | |||||
Allowance for credit losses on off-balance sheet commitments | 262 | ||||
Pre-ASU 2016-13 | Real Estate | Commercial real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | 6,951 | ||||
Pre-ASU 2016-13 | Real Estate | SBA—real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | 1,607 | ||||
Pre-ASU 2016-13 | SBA—non-real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | 207 | ||||
Pre-ASU 2016-13 | C&I | |||||
ASSETS | |||||
Allowance for credit losses on loans | 1,643 | ||||
Pre-ASU 2016-13 | Home mortgage | |||||
ASSETS | |||||
Allowance for credit losses on loans | 8,826 | ||||
Pre-ASU 2016-13 | Consumer | |||||
ASSETS | |||||
Allowance for credit losses on loans | 7 | ||||
Impact | |||||
ASSETS | |||||
Allowance for credit losses on loans | 1,924 | ||||
Liabilities | |||||
Allowance for credit losses on off-balance sheet commitments | 184 | ||||
Impact | Real Estate | Commercial real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | 875 | ||||
Impact | Real Estate | SBA—real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | (238) | ||||
Impact | SBA—non-real estate | |||||
ASSETS | |||||
Allowance for credit losses on loans | (142) | ||||
Impact | C&I | |||||
ASSETS | |||||
Allowance for credit losses on loans | (320) | ||||
Impact | Home mortgage | |||||
ASSETS | |||||
Allowance for credit losses on loans | 1,753 | ||||
Impact | Consumer | |||||
ASSETS | |||||
Allowance for credit losses on loans | $ (4) |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost, Fair Value, and Corresponding Amounts of Gross Unrealized Gains and Losses for Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Securities [Line Items] | ||
Amortized Cost | $ 216,186 | $ 235,142 |
Gross Unrealized Gain | 256 | 1 |
Gross Unrealized Loss | (22,192) | (25,334) |
Fair Value | 194,250 | 209,809 |
Residential mortgage-backed securities | ||
Securities [Line Items] | ||
Amortized Cost | 48,318 | 55,189 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (4,441) | (5,425) |
Fair Value | 43,877 | 49,764 |
Residential collateralized mortgage obligations | ||
Securities [Line Items] | ||
Amortized Cost | 162,142 | 179,953 |
Gross Unrealized Gain | 67 | 1 |
Gross Unrealized Loss | (17,750) | (19,909) |
Fair Value | 144,459 | $ 160,045 |
Municipal securities - tax exempt | ||
Securities [Line Items] | ||
Amortized Cost | 5,726 | |
Gross Unrealized Gain | 189 | |
Gross Unrealized Loss | (1) | |
Fair Value | $ 5,914 |
Securities - Additional Informa
Securities - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | |
Securities [Line Items] | ||||
Proceeds from sale of available-for-sale securities | $ 0 | $ 0 | $ 0 | $ 0 |
Number of securities | loan | 86 | 86 | ||
Number of securities in unrealized loss position | loan | 82 | 82 | ||
Debt securities issued by US government sponsored agencies (percent) | 97% | 97% | ||
Debt securities that are tax exempt municipal securities (percent) | 3% | 3% | ||
Equity investment in mutual fund with readily determinable fair value | $ 3,500,000 | 3,300,000 | $ 3,500,000 | 3,300,000 |
Unrealized holding gain (losses) of mutual fund | 48,000 | (431,000) | ||
Collateral Pledged | ||||
Securities [Line Items] | ||||
Number of securities pledged as collateral | $ 0 | $ 0 | $ 0 | $ 0 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
After one year through five years | $ 1,334 | |
After five years through ten years | 3,304 | |
After ten years | 211,548 | |
Amortized Cost | 216,186 | $ 235,142 |
Fair Value | ||
After one year through five years | 1,282 | |
After five years through ten years | 3,022 | |
After ten years | 189,946 | |
Fair Value | $ 194,250 | $ 209,809 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses on AFS Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Securities [Line Items] | ||
Fair value, less than 12 months | $ 33,769 | $ 107,667 |
Unrealized losses, less than 12 months | (237) | (5,373) |
Fair value, 12 months or longer | 143,352 | 95,021 |
Unrealized losses, 12 months or longer | (21,955) | (19,961) |
Total fair value | 177,121 | 202,688 |
Total unrealized losses | (22,192) | (25,334) |
Residential mortgage-backed securities | ||
Securities [Line Items] | ||
Fair value, less than 12 months | 6,488 | 26,347 |
Unrealized losses, less than 12 months | (59) | (1,485) |
Fair value, 12 months or longer | 37,389 | 23,417 |
Unrealized losses, 12 months or longer | (4,382) | (3,940) |
Total fair value | 43,877 | 49,764 |
Total unrealized losses | (4,441) | (5,425) |
Residential collateralized mortgage obligations | ||
Securities [Line Items] | ||
Fair value, less than 12 months | 25,439 | 81,320 |
Unrealized losses, less than 12 months | (177) | (3,888) |
Fair value, 12 months or longer | 105,963 | 71,604 |
Unrealized losses, 12 months or longer | (17,573) | (16,021) |
Total fair value | 131,402 | 152,924 |
Total unrealized losses | (17,750) | $ (19,909) |
Municipal securities - tax exempt | ||
Securities [Line Items] | ||
Fair value, less than 12 months | 1,842 | |
Unrealized losses, less than 12 months | (1) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Total fair value | 1,842 | |
Total unrealized losses | $ (1) |
Securities - Schedule of Other
Securities - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Securities [Line Items] | ||
Mutual fund - Community Reinvestment Act ("CRA") qualified | $ 3,500 | $ 3,300 |
Other Investments | ||
Securities [Line Items] | ||
FHLB stock | 12,528 | 8,483 |
Pacific Coast Bankers Bank ("PCBB") stock | 190 | 190 |
Mutual fund - Community Reinvestment Act ("CRA") qualified | 3,463 | 3,330 |
Time deposits placed in other banks | 95 | 95 |
Total other investments | $ 16,276 | $ 12,098 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses on Loans - Schedule of Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | $ 1,765,845 | $ 1,678,292 | |||
Allowance for credit losses | (21,993) | $ (21,165) | (19,241) | $ (16,123) | $ (15,352) |
Loans receivable, net | 1,743,852 | 1,659,051 | |||
Deferred loan fees, unamortized premiums and unaccreted (discounts) | 140 | 160 | |||
Real Estate | Commercial real estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 885,585 | 842,208 | |||
Allowance for credit losses | (7,826) | ||||
Real Estate | SBA—real estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 224,695 | 221,340 | |||
Allowance for credit losses | (1,369) | ||||
SBA—non-real estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 14,997 | 13,377 | |||
Allowance for credit losses | (147) | (65) | (207) | (199) | (278) |
C&I | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 120,970 | 116,951 | |||
Allowance for credit losses | (1,215) | (1,323) | (1,643) | (2,848) | (2,563) |
Home mortgage | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 518,024 | 482,949 | |||
Allowance for credit losses | (11,045) | (10,579) | (8,826) | (2,891) | (2,185) |
Consumer | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Gross loans receivable | 1,574 | 1,467 | |||
Allowance for credit losses | $ (14) | $ (3) | $ (7) | $ (13) | $ (19) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses on Loans - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | |||||
Loans | $ 1,743,852,000 | $ 1,659,051,000 | |||
Collateral dependent loans | 1,765,845,000 | 1,678,292,000 | |||
Allowance for credit losses on loans | 21,993,000 | $ 21,165,000 | 19,241,000 | $ 16,123,000 | $ 15,352,000 |
Loan Borrowing | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Loans | 0 | $ 0 | |||
Collateralized Debt Obligations | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Collateral dependent loans | 5,200,000 | ||||
Allowance for credit losses on loans | $ 355,000 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses on Loans - Schedule of Activity in Allowance for Credit Losses on Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of allowance for loan losses | |||
Beginning balance | $ 19,241 | $ 16,123 | $ 15,352 |
Impact of CECL adoption | 1,924 | ||
Provision for (reversal of) credit losses | 1,582 | 3,181 | 959 |
Charge-offs | (864) | (141) | (195) |
Recoveries | 110 | 78 | 7 |
Ending balance | 21,993 | 19,241 | 16,123 |
Provision for credit losses | (1,651) | (2,976) | (522) |
Uncollectible Accrued Interest Receivable | |||
Analysis of allowance for loan losses | |||
Provision for credit losses | (205) | (438) | |
Commercial Real Estate | |||
Analysis of allowance for loan losses | |||
Beginning balance | 6,951 | 8,150 | 8,505 |
Impact of CECL adoption | 875 | ||
Provision for (reversal of) credit losses | 723 | (1,199) | (355) |
Charge-offs | (686) | 0 | 0 |
Recoveries | 52 | 0 | 0 |
Ending balance | 7,915 | 6,951 | 8,150 |
SBA—real estate | |||
Analysis of allowance for loan losses | |||
Beginning balance | 1,607 | 2,022 | 1,802 |
Impact of CECL adoption | (238) | ||
Provision for (reversal of) credit losses | 321 | (409) | 279 |
Charge-offs | (46) | (14) | (59) |
Recoveries | 13 | 8 | 0 |
Ending balance | 1,657 | 1,607 | 2,022 |
SBA—non-real estate | |||
Analysis of allowance for loan losses | |||
Beginning balance | 207 | 199 | 278 |
Impact of CECL adoption | (142) | ||
Provision for (reversal of) credit losses | 73 | 66 | 54 |
Charge-offs | (35) | (127) | (136) |
Recoveries | 44 | 69 | 3 |
Ending balance | 147 | 207 | 199 |
C&I | |||
Analysis of allowance for loan losses | |||
Beginning balance | 1,643 | 2,848 | 2,563 |
Impact of CECL adoption | (320) | ||
Provision for (reversal of) credit losses | (11) | (1,205) | 285 |
Charge-offs | (97) | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 1,215 | 1,643 | 2,848 |
Home mortgage | |||
Analysis of allowance for loan losses | |||
Beginning balance | 8,826 | 2,891 | 2,185 |
Impact of CECL adoption | 1,753 | ||
Provision for (reversal of) credit losses | 466 | 5,935 | 706 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 11,045 | 8,826 | 2,891 |
Consumer | |||
Analysis of allowance for loan losses | |||
Beginning balance | 7 | 13 | 19 |
Impact of CECL adoption | (4) | ||
Provision for (reversal of) credit losses | 10 | (7) | (10) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 1 | 1 | 4 |
Ending balance | $ 14 | $ 7 | $ 13 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses on Loans - Schedule of Allowance for Credit Losses on Loans and Recorded Investment by Portfolio Segment and Impairment Methodology (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for Loans Individually Evaluated for Impairment | $ 355 | $ 279 | |||
Allowance for Loan Collectively Evaluated for Impairment | 21,638 | 18,962 | |||
Allowance for loan losses, Total | 21,993 | $ 21,165 | 19,241 | $ 16,123 | $ 15,352 |
Loans Individually Evaluated for Impairment | 5,164 | 702 | |||
Loans Collectively Evaluated for Impairment | 1,760,681 | 1,677,590 | |||
Total | 1,765,845 | 1,678,292 | |||
Accrued interest receivable | 7,300 | 6,400 | |||
Commercial Real Estate | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | |||
Allowance for Loan Collectively Evaluated for Impairment | 7,915 | 6,951 | |||
Allowance for loan losses, Total | 7,915 | 6,951 | 8,150 | 8,505 | |
Loans Individually Evaluated for Impairment | 0 | 0 | |||
Loans Collectively Evaluated for Impairment | 885,585 | 842,208 | |||
Total | 885,585 | 842,208 | |||
SBA—real estate | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for Loans Individually Evaluated for Impairment | 355 | 0 | |||
Allowance for Loan Collectively Evaluated for Impairment | 1,302 | 1,607 | |||
Allowance for loan losses, Total | 1,657 | 1,607 | 2,022 | 1,802 | |
Loans Individually Evaluated for Impairment | 2,923 | 423 | |||
Loans Collectively Evaluated for Impairment | 221,772 | 220,917 | |||
Total | 224,695 | 221,340 | |||
SBA—non-real estate | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | |||
Allowance for Loan Collectively Evaluated for Impairment | 147 | 207 | |||
Allowance for loan losses, Total | 147 | 65 | 207 | 199 | 278 |
Loans Individually Evaluated for Impairment | 0 | 0 | |||
Loans Collectively Evaluated for Impairment | 14,997 | 13,377 | |||
Total | 14,997 | 13,377 | |||
C&I | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 279 | |||
Allowance for Loan Collectively Evaluated for Impairment | 1,215 | 1,364 | |||
Allowance for loan losses, Total | 1,215 | 1,323 | 1,643 | 2,848 | 2,563 |
Loans Individually Evaluated for Impairment | 0 | 279 | |||
Loans Collectively Evaluated for Impairment | 120,970 | 116,672 | |||
Total | 120,970 | 116,951 | |||
Home mortgage | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | |||
Allowance for Loan Collectively Evaluated for Impairment | 11,045 | 8,826 | |||
Allowance for loan losses, Total | 11,045 | 10,579 | 8,826 | 2,891 | 2,185 |
Loans Individually Evaluated for Impairment | 2,241 | 0 | |||
Loans Collectively Evaluated for Impairment | 515,783 | 482,949 | |||
Total | 518,024 | 482,949 | |||
Consumer | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | |||
Allowance for Loan Collectively Evaluated for Impairment | 14 | 7 | |||
Allowance for loan losses, Total | 14 | $ 3 | 7 | $ 13 | $ 19 |
Loans Individually Evaluated for Impairment | 0 | 0 | |||
Loans Collectively Evaluated for Impairment | 1,574 | 1,467 | |||
Total | $ 1,574 | $ 1,467 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses on Loans - Schedule of Recorded Investment of Individually Impaired Loans and Specific Allowance for Credit Losses (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Unpaid Principal Balance | $ 702 |
Recorded Investment With No Allowance | 423 |
Recorded Investment With Allowance | 279 |
Related Allowance | 279 |
SBA—real estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Unpaid Principal Balance | 423 |
Recorded Investment With No Allowance | 423 |
Recorded Investment With Allowance | 0 |
Related Allowance | 0 |
C&I | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Unpaid Principal Balance | 279 |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 279 |
Related Allowance | $ 279 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans - Schedule of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | $ 1,765,845 | $ 1,678,292 |
Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 5,164 | |
Commercial Real Estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 885,585 | 842,208 |
SBA—real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 224,695 | 221,340 |
SBA—real estate | Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 2,923 | |
Home mortgage | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 518,024 | $ 482,949 |
Home mortgage | Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 2,241 | |
Hotel / Motel | Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 2,923 | |
Hotel / Motel | SBA—real estate | Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 2,923 | |
Hotel / Motel | Home mortgage | Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | |
Single-Family Residential | Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 2,241 | |
Single-Family Residential | SBA—real estate | Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | |
Single-Family Residential | Home mortgage | Collateralized Mortgage-Backed Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | $ 2,241 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans - Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual Loans with a Related Allowance for Credit Losses | $ 2,705 | |
Nonaccrual Loans without a Related Allowance for Credit Losses | 3,377 | |
Total Nonaccrual Loans | 6,082 | $ 2,033 |
90 or More Days Past Due & Still Accruing | 0 | 0 |
Total | 6,082 | 2,033 |
Loans Insured or Guaranteed by non-US Government Authorities | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total | 2,000 | 1,000 |
SBA—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual Loans with a Related Allowance for Credit Losses | 2,302 | |
Nonaccrual Loans without a Related Allowance for Credit Losses | 1,136 | |
Total Nonaccrual Loans | 3,438 | 423 |
90 or More Days Past Due & Still Accruing | 0 | 0 |
Total | 3,438 | 423 |
SBA—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual Loans with a Related Allowance for Credit Losses | 154 | |
Nonaccrual Loans without a Related Allowance for Credit Losses | 0 | |
Total Nonaccrual Loans | 154 | 51 |
90 or More Days Past Due & Still Accruing | 0 | 0 |
Total | 154 | 51 |
Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual Loans with a Related Allowance for Credit Losses | 249 | |
Nonaccrual Loans without a Related Allowance for Credit Losses | 2,241 | |
Total Nonaccrual Loans | 2,490 | 1,280 |
90 or More Days Past Due & Still Accruing | 0 | 0 |
Total | $ 2,490 | 1,280 |
C&I | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Nonaccrual Loans | 279 | |
90 or More Days Past Due & Still Accruing | 0 | |
Total | $ 279 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses on Loans - Schedule of Aging Analysis of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | $ 1,765,845 | $ 1,678,292 |
Accrued interest receivable | 7,300 | 6,400 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 885,585 | 842,208 |
SBA—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 224,695 | 221,340 |
SBA—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 14,997 | 13,377 |
C&I | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 120,970 | 116,951 |
Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 518,024 | 482,949 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,574 | 1,467 |
Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 14,234 | 4,009 |
Total Past Due | Loans Insured or Guaranteed by non-US Government Authorities | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,900 | 924 |
Total Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
Total Past Due | SBA—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 4,783 | 374 |
Total Past Due | SBA—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 154 | 64 |
Total Past Due | C&I | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
Total Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 9,297 | 3,571 |
Total Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 6,098 | 1,944 |
30-59 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
30-59 Days Past Due | SBA—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,868 | 199 |
30-59 Days Past Due | SBA—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 154 | 38 |
30-59 Days Past Due | C&I | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
30-59 Days Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 4,076 | 1,707 |
30-59 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 3,662 | 1,697 |
60-89 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
60-89 Days Past Due | SBA—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 932 | 175 |
60-89 Days Past Due | SBA—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
60-89 Days Past Due | C&I | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
60-89 Days Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 2,730 | 1,522 |
60-89 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
> 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 4,474 | 368 |
> 90 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
> 90 Days Past Due | SBA—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,983 | 0 |
> 90 Days Past Due | SBA—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 26 |
> 90 Days Past Due | C&I | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
> 90 Days Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 2,491 | 342 |
> 90 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,751,611 | 1,674,283 |
Loans Not Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 885,585 | 842,208 |
Loans Not Past Due | SBA—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 219,912 | 220,966 |
Loans Not Past Due | SBA—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 14,843 | 13,313 |
Loans Not Past Due | C&I | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 120,970 | 116,951 |
Loans Not Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 508,727 | 479,378 |
Loans Not Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | $ 1,574 | $ 1,467 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses on Loans - Schedule of Modified Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 6,488 |
Current | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 5,751 |
30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
> 90 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 737 |
Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 5,863 |
Term Extension | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 625 |
Commercial Real Estate | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 625 |
Percentage to Each Loan Type | 0.07% |
Weighted-Average Payment Deferral (in years) | 1 year |
Commercial Real Estate | Current | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 625 |
Commercial Real Estate | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
Commercial Real Estate | > 90 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
Commercial Real Estate | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
Commercial Real Estate | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 625 |
SBA—real estate | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 5,378 |
Percentage to Each Loan Type | 2.39% |
Weighted-Average Payment Deferral (in years) | 9 months 18 days |
SBA—real estate | Current | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 4,641 |
SBA—real estate | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
SBA—real estate | > 90 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 737 |
SBA—real estate | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 5,378 |
SBA—real estate | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
SBA—non-real estate | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 131 |
Percentage to Each Loan Type | 0.87% |
Weighted-Average Payment Deferral (in years) | 2 months 12 days |
SBA—non-real estate | Current | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 131 |
SBA—non-real estate | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
SBA—non-real estate | > 90 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
SBA—non-real estate | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 131 |
SBA—non-real estate | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
Home mortgage | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 354 |
Percentage to Each Loan Type | 0.07% |
Weighted-Average Payment Deferral (in years) | 6 months |
Home mortgage | Current | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 354 |
Home mortgage | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
Home mortgage | > 90 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 0 |
Home mortgage | Payment Delay | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | 354 |
Home mortgage | Term Extension | |
Financing Receivable, Modified [Line Items] | |
Recorded investment in troubled debt restructurings | $ 0 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses on Loans - Schedule of Credit Risk Ratings by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Recorded Investment [Line Items] | |||
2023 | $ 221,745 | ||
2022 | 582,171 | ||
2021 | 284,271 | ||
2020 | 145,890 | ||
2019 | 178,838 | ||
Prior | 272,711 | ||
Revolving Loans | 77,658 | ||
Revolving Loans Converted to Term Loans | 2,561 | ||
Total | 1,765,845 | $ 1,678,292 | |
Current period charge-offs | |||
2023 | 17 | ||
2022 | 457 | ||
2021 | 247 | ||
2020 | 0 | ||
2019 | 91 | ||
Prior | 52 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | $ 864 | $ 141 | $ 195 |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accrued interest receivable | Accrued interest receivable | |
Accrued interest receivable | $ 7,300 | $ 6,400 | |
Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 221,745 | ||
2022 | 577,233 | ||
2021 | 282,943 | ||
2020 | 144,754 | ||
2019 | 178,838 | ||
Prior | 264,767 | ||
Revolving Loans | 77,658 | ||
Revolving Loans Converted to Term Loans | 2,561 | ||
Total | 1,750,499 | 1,674,422 | |
Special mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 1,428 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 1,428 | 563 | |
Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 4,938 | ||
2021 | 1,328 | ||
2020 | 1,136 | ||
2019 | 0 | ||
Prior | 6,418 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 13,820 | 3,031 | |
Doubtful | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 98 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 98 | 276 | |
Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 97,114 | ||
2022 | 208,179 | ||
2021 | 154,872 | ||
2020 | 97,137 | ||
2019 | 138,908 | ||
Prior | 168,316 | ||
Revolving Loans | 21,059 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 885,585 | 842,208 | |
Current period charge-offs | |||
2023 | 0 | ||
2022 | 457 | ||
2021 | 121 | ||
2020 | 0 | ||
2019 | 91 | ||
Prior | 17 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 686 | 0 | 0 |
Commercial Real Estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 97,114 | ||
2022 | 207,860 | ||
2021 | 154,872 | ||
2020 | 97,137 | ||
2019 | 138,908 | ||
Prior | 163,320 | ||
Revolving Loans | 21,059 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 880,270 | 841,645 | |
Commercial Real Estate | Special mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 563 | |
Commercial Real Estate | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 319 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 4,996 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 5,315 | 0 | |
Commercial Real Estate | Doubtful | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
SBA—real estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 31,920 | ||
2022 | 46,291 | ||
2021 | 27,267 | ||
2020 | 23,868 | ||
2019 | 28,244 | ||
Prior | 67,105 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 224,695 | 221,340 | |
Current period charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 46 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 46 | 14 | 59 |
SBA—real estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 31,920 | ||
2022 | 44,504 | ||
2021 | 26,188 | ||
2020 | 22,732 | ||
2019 | 28,244 | ||
Prior | 64,442 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 218,030 | 220,348 | |
SBA—real estate | Special mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 1,428 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 1,428 | 0 | |
SBA—real estate | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 1,787 | ||
2021 | 1,079 | ||
2020 | 1,136 | ||
2019 | 0 | ||
Prior | 1,235 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 5,237 | 992 | |
SBA—real estate | Doubtful | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
SBA—non-real estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 5,408 | ||
2022 | 3,175 | ||
2021 | 200 | ||
2020 | 1,556 | ||
2019 | 950 | ||
Prior | 3,708 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 14,997 | 13,377 | |
Current period charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 35 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 35 | 127 | 136 |
SBA—non-real estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 5,408 | ||
2022 | 2,584 | ||
2021 | 200 | ||
2020 | 1,556 | ||
2019 | 950 | ||
Prior | 3,423 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 14,121 | 12,897 | |
SBA—non-real estate | Special mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
SBA—non-real estate | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 591 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 187 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 778 | 480 | |
SBA—non-real estate | Doubtful | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 98 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 98 | 0 | |
C&I | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 15,117 | ||
2022 | 17,939 | ||
2021 | 22,098 | ||
2020 | 4,695 | ||
2019 | 1,720 | ||
Prior | 1,734 | ||
Revolving Loans | 55,106 | ||
Revolving Loans Converted to Term Loans | 2,561 | ||
Total | 120,970 | 116,951 | |
Current period charge-offs | |||
2023 | 17 | ||
2022 | 0 | ||
2021 | 80 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 97 | 0 | 0 |
C&I | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 15,117 | ||
2022 | 17,939 | ||
2021 | 22,098 | ||
2020 | 4,695 | ||
2019 | 1,720 | ||
Prior | 1,734 | ||
Revolving Loans | 55,106 | ||
Revolving Loans Converted to Term Loans | 2,561 | ||
Total | 120,970 | 116,396 | |
C&I | Special mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
C&I | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 279 | |
C&I | Doubtful | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 276 | |
Home mortgage | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 72,182 | ||
2022 | 306,587 | ||
2021 | 79,834 | ||
2020 | 18,634 | ||
2019 | 8,939 | ||
Prior | 31,848 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 518,024 | 482,949 | |
Current period charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | 0 |
Home mortgage | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 72,182 | ||
2022 | 304,346 | ||
2021 | 79,585 | ||
2020 | 18,634 | ||
2019 | 8,939 | ||
Prior | 31,848 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 515,534 | 481,669 | |
Home mortgage | Special mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
Home mortgage | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 2,241 | ||
2021 | 249 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 2,490 | 1,280 | |
Home mortgage | Doubtful | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
Consumer | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 4 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 77 | ||
Prior | 0 | ||
Revolving Loans | 1,493 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 1,574 | 1,467 | |
Current period charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | $ 0 |
Consumer | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 4 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 77 | ||
Prior | 0 | ||
Revolving Loans | 1,493 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 1,574 | 1,467 | |
Consumer | Special mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
Consumer | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | 0 | 0 | |
Consumer | Doubtful | |||
Financing Receivable Recorded Investment [Line Items] | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Total | $ 0 | $ 0 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses on Loans - Schedule of Amortized Cost by Loan Type (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | $ 1,765,845 | $ 1,678,292 |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accrued interest receivable | Accrued interest receivable |
Accrued interest receivable | $ 7,300 | $ 6,400 |
Pass | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 1,750,499 | 1,674,422 |
Special mention | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 1,428 | 563 |
Substandard | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 13,820 | 3,031 |
Doubtful | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 98 | 276 |
Commercial Real Estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 885,585 | 842,208 |
Commercial Real Estate | Pass | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 880,270 | 841,645 |
Commercial Real Estate | Special mention | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 563 |
Commercial Real Estate | Substandard | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 5,315 | 0 |
Commercial Real Estate | Doubtful | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 0 |
SBA—real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 224,695 | 221,340 |
SBA—real estate | Pass | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 218,030 | 220,348 |
SBA—real estate | Special mention | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 1,428 | 0 |
SBA—real estate | Substandard | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 5,237 | 992 |
SBA—real estate | Doubtful | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 0 |
SBA—non-real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 14,997 | 13,377 |
SBA—non-real estate | Pass | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 14,121 | 12,897 |
SBA—non-real estate | Special mention | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 0 |
SBA—non-real estate | Substandard | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 778 | 480 |
SBA—non-real estate | Doubtful | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 98 | 0 |
C&I | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 120,970 | 116,951 |
C&I | Pass | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 120,970 | 116,396 |
C&I | Special mention | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 0 |
C&I | Substandard | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 279 |
C&I | Doubtful | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 276 |
Home mortgage | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 518,024 | 482,949 |
Home mortgage | Pass | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 515,534 | 481,669 |
Home mortgage | Special mention | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 0 |
Home mortgage | Substandard | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 2,490 | 1,280 |
Home mortgage | Doubtful | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 0 |
Consumer | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 1,574 | 1,467 |
Consumer | Pass | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 1,574 | 1,467 |
Consumer | Special mention | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 0 |
Consumer | Substandard | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | 0 | 0 |
Consumer | Doubtful | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Total | $ 0 | $ 0 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total premises and equipment | $ 17,453 | $ 15,269 |
Accumulated depreciation | (12,205) | (10,869) |
Total premises and equipment, net | 5,248 | 4,400 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total premises and equipment | 9,135 | 7,998 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total premises and equipment | 4,814 | 3,983 |
Equipment and others | ||
Property Plant And Equipment [Line Items] | ||
Total premises and equipment | $ 3,504 | $ 3,288 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,300 | $ 1,400 | $ 1,300 |
Servicing Assets - Additional I
Servicing Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Assets At Amortized Value [Line Items] | ||
Valuation allowance for impairment | $ 0 | $ 0 |
Servicing assets | $ 17,218,000 | $ 16,845,000 |
Minimum | ||
Servicing Assets At Amortized Value [Line Items] | ||
Fair value of servicing assets, discount rates | 3.75% | 4.40% |
Fair value of servicing assets, prepayment speed | 12.80% | 13.10% |
Maximum | ||
Servicing Assets At Amortized Value [Line Items] | ||
Fair value of servicing assets, discount rates | 11% | 9.90% |
Fair value of servicing assets, prepayment speed | 13.20% | 13.80% |
Servicing Assets - Schedule of
Servicing Assets - Schedule of Activity for Loan Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of Changes in Activity | |||
Beginning balance | $ 12,759 | $ 12,720 | |
Amortized to expense | (4,418) | (4,385) | $ (3,536) |
Ending balance | 11,741 | 12,759 | $ 12,720 |
Loans Sold with Servicing Retained | |||
Analysis of Changes in Activity | |||
Additions from loans sold with servicing retained | $ 3,400 | $ 4,424 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | |||
Lease renewal term | 5 years | ||
Operating right-of-use assets | $ 8,497 | $ 9,097 | |
Operating lease liabilities | 9,341 | 10,213 | |
Operating lease rent expense | $ 3,100 | $ 2,900 | $ 2,600 |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Remaining operating lease terms | 1 year | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Remaining operating lease terms | 10 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,280 | $ 2,046 |
Variable lease cost | 844 | 859 |
Total lease cost | $ 3,124 | $ 2,905 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating right-of-use assets | $ 8,497 | $ 9,097 |
Operating lease liabilities | $ 9,341 | $ 10,213 |
Weighted average remaining lease term - operating leases | 5 years 6 months | 6 years 3 months 18 days |
Weighted average discount rate - operating leases | 2.47% | 2.44% |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 2,511 | $ 2,253 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease liability (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 2,586 | |
2025 | 1,724 | |
2026 | 2,085 | |
2027 | 2,007 | |
2028 | 1,598 | |
Thereafter | 1,925 | |
Total lease payments | 11,925 | |
Discount to present value | (2,584) | |
Total lease liability | $ 9,341 | $ 10,213 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Time Deposits [Line Items] | ||
Time deposits greater than $250 | $ 433,892 | $ 356,197 |
Principal Officers, Directors, and Affiliates | ||
Time Deposits [Line Items] | ||
Deposits from principal officers, directors, and their affiliates | $ 1,800 | $ 810 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Deposits [Abstract] | |
2024 | $ 841,257 |
2025 | 26,563 |
2026 | 17,389 |
2027 | 325 |
2028 and thereafter | 255 |
Total | $ 885,789 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Federal Home Loan Bank borrowings | $ 105,000 | $ 0 |
FHLB interest rate | 4.65% | |
Federal home loan bank, advances, remaining term | 10 months 24 days | |
Letter of credit | $ 67,000 | 67,000 |
Loans | 1,743,852 | 1,659,051 |
Asset Pledged as Collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans | $ 1,390,000 | $ 1,240,000 |
Borrowing Arrangements - Schedu
Borrowing Arrangements - Schedule of Borrowings Available to the Company from Institutions (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Amount of borrowings | $ 646,604 |
Federal Reserve Bank | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Amount of borrowings | 182,989 |
Pacific Coast Bankers Bank | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Amount of borrowings | 50,000 |
Zions Bank | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Amount of borrowings | 25,000 |
First Horizon Bank | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Amount of borrowings | 25,000 |
FHLB | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Amount of borrowings | $ 363,615 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax expense: | |||
Federal | $ 6,238 | $ 7,959 | $ 9,243 |
State | 3,332 | 4,374 | 4,885 |
Total current income tax expense | 9,570 | 12,333 | 14,128 |
Deferred income tax expense (benefit): | |||
Federal | 217 | 783 | (1,614) |
State | (214) | 298 | (698) |
Total deferred income tax expense (benefit) | 3 | 1,081 | (2,312) |
Total income tax expense | $ 9,573 | $ 13,414 | $ 11,816 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rates Differ from Federal Statutory Rates (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21% | 21% | 21% |
Increase (decrease) in tax rate resulting from: | |||
Meals and entertainment | 0.20% | 0% | 0% |
State income taxes, net of federal tax benefit | 8% | 8.40% | 8.50% |
Stock option expense and related excess tax benefits | 0.10% | 0% | 0.10% |
Company owned life insurance | (0.004) | (0.002) | (0.001) |
Other, net | (0.30%) | (0.50%) | (0.40%) |
Effective tax rate | 28.60% | 28.70% | 29.10% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets Included in Statement of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Organizational costs | $ 18 | $ 20 |
Allowance for credit losses | 6,502 | 5,688 |
Loans held for sale | 0 | 852 |
Stock-based compensation | 509 | 386 |
Accrued compensation | 302 | 272 |
Lease liability | 2,762 | 3,019 |
State taxes | 675 | 989 |
Net unrealized loss on AFS debt securities | 6,485 | 7,491 |
Nonaccrual loan interest income | 224 | 46 |
Other | 279 | 77 |
Total deferred tax assets | 17,756 | 18,840 |
Deferred tax liabilities: | ||
Loan origination costs | (1,110) | (1,407) |
Depreciation | (553) | (423) |
Right of use asset | (2,512) | (2,689) |
Other | (272) | (5) |
Total deferred tax liabilities | (4,447) | (4,524) |
Net deferred tax asset | $ 13,309 | $ 14,316 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Unrealized tax benefits | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Distribution of Undisbursed Credit-Related Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other commitment | $ 264,355 | $ 270,847 |
Standby letter of credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit outstanding | 6,707 | 5,286 |
Commercial letter of credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit outstanding | 22 | 451 |
Loan commitments | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other commitment | $ 257,626 | $ 265,110 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Balance and Total Unfunded Commitments Related to Investment in Low Income Housing Partnerships (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Investments in low-income housing partnerships | $ 16,887 | $ 12,212 |
Unfunded commitments to fund investments for low-income housing partnerships | $ 11,905 | $ 8,748 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Recognized amortization expense | $ 1,325 | $ 697 | $ 522 |
Recognized tax credits and other benefits | $ 1,700 | $ 926 | $ 651 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) plan shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 31, 2013 shares | Dec. 31, 2010 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of stock-based compensation plans | plan | 3 | ||||
Share based compensation expense | $ | $ 1,300 | $ 1,200 | $ 558 | ||
2005 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation shares authorized under stock option plans (in shares) | 770,000 | ||||
Percent of the fair value options granted | 100% | ||||
Number of options outstanding, granted (in shares) | 0 | ||||
2005 Plan | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Stock options, when granted, expiration period | 10 years | ||||
2010 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation shares authorized under stock option plans (in shares) | 2,500,000 | 1,350,000 | |||
Percent of the fair value options granted | 100% | ||||
Weighted average remaining contractual term stock options outstanding | 3 months 18 days | ||||
Weighted average remaining contractual life for options exercisable | 3 months 18 days | ||||
Number of options outstanding, granted (in shares) | 0 | ||||
2010 Plan | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Stock options, when granted, expiration period | 10 years | ||||
2010 Plan | Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation costs related to unvested stock options | $ | $ 18 | ||||
Unrecognized compensation costs weighted average period | 10 months 24 days | ||||
2021 Plan | Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation shares authorized under stock option plans (in shares) | 1,500,000 | ||||
Percent of the fair value options granted | 100% | ||||
Unrecognized compensation costs weighted average period | 1 year 7 months 6 days | ||||
Number of options outstanding, granted (in shares) | 0 | ||||
Shares available for future grant (in shares) | 1,111,457 | ||||
Unrecognized compensation costs related to unvested restricted stock awards | $ | $ 1,700 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-based Compensation Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
2005 Plan | ||
Number of Options Outstanding | ||
Number of options outstanding, beginning of period (in shares) | 30,000 | |
Number of options outstanding, granted (in shares) | 0 | |
Number of options outstanding, exercised (in shares) | (30,000) | |
Number of options outstanding, forfeited (in shares) | 0 | |
Number of options outstanding, expired (in shares) | 0 | |
Number of options outstanding, ending of period (in shares) | 0 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, outstanding beginning (USD per share) | $ 6.18 | |
Weighted average exercise price, granted (USD per share) | 0 | |
Weighted average exercise price, exercised (USD per share) | 6.18 | |
Weighted average exercise price, forfeited (USD per share) | 0 | |
Weighted average exercise price, expired (USD per share) | 0 | |
Weighted average exercise price, outstanding ending (USD per share) | $ 0 | |
Stock Option Additional Disclosures | ||
Number of options outstanding, full vested and expected to vest (in shares) | 0 | |
Number of options outstanding, vested (in shares) | 0 | |
Weighted average exercise price, full vested and expected to vest (USD per share) | $ 0 | |
Weighted average exercise price, vested (USD per share) | $ 0 | |
Aggregate intrinsic value, outstanding | $ 0 | $ 149 |
Aggregate intrinsic value, fully vested and expected to vest | 0 | |
Aggregate intrinsic value, vested | $ 0 | |
2010 Plan | ||
Number of Options Outstanding | ||
Number of options outstanding, beginning of period (in shares) | 150,000 | |
Number of options outstanding, granted (in shares) | 0 | |
Number of options outstanding, exercised (in shares) | (90,000) | |
Number of options outstanding, forfeited (in shares) | 0 | |
Number of options outstanding, expired (in shares) | 0 | |
Number of options outstanding, ending of period (in shares) | 60,000 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, outstanding beginning (USD per share) | $ 8 | |
Weighted average exercise price, granted (USD per share) | 0 | |
Weighted average exercise price, exercised (USD per share) | 8 | |
Weighted average exercise price, forfeited (USD per share) | 0 | |
Weighted average exercise price, expired (USD per share) | 0 | |
Weighted average exercise price, outstanding ending (USD per share) | $ 8 | |
Stock Option Additional Disclosures | ||
Number of options outstanding, full vested and expected to vest (in shares) | 60,000 | |
Number of options outstanding, vested (in shares) | 60,000 | |
Weighted average exercise price, full vested and expected to vest (USD per share) | $ 8 | |
Weighted average exercise price, vested (USD per share) | $ 8 | |
Aggregate intrinsic value, outstanding | $ 177 | $ 474 |
Aggregate intrinsic value, fully vested and expected to vest | 177 | |
Aggregate intrinsic value, vested | $ 177 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Information Related to Stock Option Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash received from option exercises | $ 888 | $ 608 | $ 89 |
2005 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value of options exercised | 86 | 113 | 231 |
Cash received from option exercises | 128 | 128 | 64 |
Tax provision realized from option exercised | 2 | 2 | 27 |
2010 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value of options exercised | 186 | 224 | 86 |
Cash received from option exercises | 720 | 480 | 25 |
Tax provision realized from option exercised | (3) | 0 | 0 |
2010 Plan | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax provision realized from option exercised | 4 | 0 | (85) |
2021 Plan | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax provision realized from option exercised | $ (34) | $ 12 | $ 0 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Changes in Non-vested Restricted Stock Awards (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
2010 Plan | ||
Shares Issued | ||
Shares issued, non-vested beginning of period (in shares) | 14,500 | |
Shares issued, awards granted (in shares) | 0 | |
Shares issued, awards vested (in shares) | (4,500) | |
Shares issued, awards forfeited (in shares) | 0 | |
Shares issued, non-vested end of period (in shares) | 10,000 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, non-vested beginning of period (USD per share) | $ 8.66 | |
Weighted average grant date fair value, awards granted (USD per share) | 0 | |
Weighted average grant date fair value, awards vested (USD per share) | 6.37 | |
Weighted average grant date fair value, awards forfeited (USD per share) | 0 | |
Weighted average grant date fair value, non-vested end of period (USD per share) | $ 9.69 | |
Aggregate intrinsic value, non-vested end of year | $ 110 | $ 162 |
2021 Plan | ||
Shares Issued | ||
Shares issued, non-vested beginning of period (in shares) | 317,366 | |
Shares issued, awards granted (in shares) | 36,280 | |
Shares issued, awards vested (in shares) | (67,295) | |
Shares issued, awards forfeited (in shares) | (7,500) | |
Shares issued, non-vested end of period (in shares) | 278,851 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, non-vested beginning of period (USD per share) | $ 11.60 | |
Weighted average grant date fair value, awards granted (USD per share) | 8.35 | |
Weighted average grant date fair value, awards vested (USD per share) | 10.33 | |
Weighted average grant date fair value, awards forfeited (USD per share) | 12.90 | |
Weighted average grant date fair value, non-vested end of period (USD per share) | $ 11.45 | |
Aggregate intrinsic value, non-vested end of year | $ 3,053 | $ 3,542 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Employee minimum service period | 3 months | ||
Eligibility age of employees for plan | 18 years | ||
Employer contribution amount | $ 986 | $ 867 | $ 752 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | $ 194,250 | $ 209,809 |
Other investments: | ||
Mutual fund - CRA qualified | 3,500 | 3,300 |
Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 43,877 | 49,764 |
Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 144,459 | 160,045 |
Municipal securities - tax exempt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 5,914 | |
Recurring | ||
Other investments: | ||
Mutual fund - CRA qualified | 3,463 | 3,330 |
Recurring | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 43,877 | 49,764 |
Recurring | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 144,459 | 160,045 |
Recurring | Municipal securities - tax exempt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 5,914 | |
Recurring | Quoted Prices in Active Markets (Level 1) | ||
Other investments: | ||
Mutual fund - CRA qualified | 3,463 | 3,330 |
Recurring | Quoted Prices in Active Markets (Level 1) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets (Level 1) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring | Quoted Prices in Active Markets (Level 1) | Municipal securities - tax exempt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Other investments: | ||
Mutual fund - CRA qualified | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 43,877 | 49,764 |
Recurring | Significant Other Observable Inputs (Level 2) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 144,459 | 160,045 |
Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities - tax exempt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 5,914 | |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Other investments: | ||
Mutual fund - CRA qualified | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | $ 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Municipal securities - tax exempt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Fair Value Hierarchy and Fair Value of Assets that Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Impaired [Line Items] | ||
Impaired loans | $ 1,793,258 | $ 1,626,036 |
Quoted Prices in Active Markets (Level 1) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 1,793,258 | 1,626,036 |
Nonrecurring | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 1,432 | 423 |
Nonrecurring | SBA—real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 1,432 | 423 |
Nonrecurring | Quoted Prices in Active Markets (Level 1) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Nonrecurring | Quoted Prices in Active Markets (Level 1) | SBA—real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Nonrecurring | Significant Other Observable Inputs (Level 2) | SBA—real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 1,432 | 423 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | SBA—real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | $ 1,432 | $ 423 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Increase (Decrease) in Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment (Details) - Nonrecurring - Loans Receivable - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Impaired [Line Items] | |||
Collateral-dependent loans: | $ 0 | $ 28 | $ 105 |
SBA—real estate | |||
Financing Receivable Impaired [Line Items] | |||
Collateral-dependent loans: | $ 0 | $ 28 | $ 105 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Schedule of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,793,258 | $ 1,626,036 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,793,258 | 1,626,036 |
Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,432 | 423 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,432 | 423 |
Nonrecurring | SBA—real estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,432 | $ 423 |
Nonrecurring | SBA—real estate | Income approach - income capitalization | Measurement Input, Cap Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.115 | |
Nonrecurring | SBA—real estate | Minimum | Income approach - income capitalization | Measurement Input, Cap Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.093 | |
Nonrecurring | SBA—real estate | Maximum | Income approach - income capitalization | Measurement Input, Cap Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.110 | |
Nonrecurring | SBA—real estate | Weighted Average | Income approach - income capitalization | Measurement Input, Cap Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.099 | 0.115 |
Nonrecurring | SBA—real estate | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,432 | $ 423 |
Nonrecurring | SBA—real estate | Significant Unobservable Inputs (Level 3) | Income approach - income capitalization | Measurement Input, Cap Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,432 | $ 423 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and cash equivalents | $ 91,216 | $ 82,972 |
Loans held for sale | 47,217 | |
Loans receivable, net | 1,793,258 | 1,626,036 |
Accrued interest receivable, net | 8,259 | 7,180 |
Other investments: | ||
Time deposits placed | 95 | 95 |
Servicing assets | 17,218 | 16,845 |
Financial liabilities: | ||
Deposits | 1,808,444 | 1,880,508 |
FHLB advances | 104,231 | |
Accrued interest payable | 12,628 | 2,771 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 91,216 | 82,972 |
Loans held for sale | 44,335 | |
Loans receivable, net | 1,743,852 | 1,659,051 |
Accrued interest receivable, net | 8,259 | 7,180 |
Other investments: | ||
FHLB and PCBB stock | 12,718 | 8,673 |
Time deposits placed | 95 | 95 |
Servicing assets | 11,741 | 12,759 |
Financial liabilities: | ||
Deposits | 1,807,558 | 1,885,771 |
FHLB advances | 105,000 | |
Accrued interest payable | 12,628 | 2,771 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 91,216 | 82,972 |
Loans held for sale | 0 | |
Loans receivable, net | 0 | 0 |
Accrued interest receivable, net | 69 | 51 |
Other investments: | ||
Time deposits placed | 0 | 0 |
Servicing assets | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB advances | 0 | |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Loans held for sale | 47,217 | |
Loans receivable, net | 0 | 0 |
Accrued interest receivable, net | 859 | 716 |
Other investments: | ||
Time deposits placed | 95 | 95 |
Servicing assets | 0 | 0 |
Financial liabilities: | ||
Deposits | 1,808,444 | 1,880,508 |
FHLB advances | 104,231 | |
Accrued interest payable | 12,628 | 2,771 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Loans held for sale | 0 | |
Loans receivable, net | 1,793,258 | 1,626,036 |
Accrued interest receivable, net | 7,331 | 6,413 |
Other investments: | ||
Time deposits placed | 0 | 0 |
Servicing assets | 17,218 | 16,845 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB advances | 0 | |
Accrued interest payable | $ 0 | $ 0 |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) | Dec. 31, 2023 |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Capital conservation buffer | 2.50% |
Regulatory Capital Matters - Sc
Regulatory Capital Matters - Schedule of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), actual amount | $ 229,544 | $ 213,862 |
Tier 1 capital (to risk-weighted assets), actual amount | 208,707 | 194,358 |
Common equity Tier 1 capital (to risk-weighted assets), actual amount | 208,707 | 194,358 |
Tier 1 capital (to average assets), actual amount | $ 208,707 | $ 194,358 |
Total capital (to risk-weighted assets), actual ratio | 0.1377 | 0.1306 |
Tier 1 capital (to risk-weighted assets), actual ratio | 0.1252 | 0.1187 |
Common equity Tier 1 capital (to risk-weighted assets), actual ratio | 0.1252 | 0.1187 |
Tier 1 capital (to average assets), actual ratio | 0.0957 | 0.0938 |
Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), actual amount | $ 227,773 | $ 211,981 |
Tier 1 capital (to risk-weighted assets), actual amount | 206,936 | 192,477 |
Common equity Tier 1 capital (to risk-weighted assets), actual amount | 206,936 | 192,477 |
Tier 1 capital (to average assets), actual amount | $ 206,936 | $ 192,477 |
Total capital (to risk-weighted assets), actual ratio | 0.1366 | 0.1294 |
Tier 1 capital (to risk-weighted assets), actual ratio | 0.1241 | 0.1175 |
Common equity Tier 1 capital (to risk-weighted assets), actual ratio | 0.1241 | 0.1175 |
Tier 1 capital (to average assets), actual ratio | 0.0949 | 0.0929 |
Total capital (to risk-weighted assets), amount, required for capital adequacy purposes | $ 133,353 | $ 131,020 |
Tier 1 capital (to risk-weighted assets), amount, required for capital adequacy purposes | 100,014 | 98,265 |
Common equity Tier 1 capital (to risk-weighted assets), amount, required for capital adequacy purposes | 75,011 | 73,699 |
Tier 1 capital (to average assets), amount, required for capital adequacy purposes | $ 87,207 | $ 82,836 |
Total capital (to risk-weighted assets), ratio, required for capital adequacy purposes | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets), ratio, required for capital adequacy purposes | 0.0600 | 0.0600 |
Common equity Tier 1 capital (to risk-weighted assets), ratio, required for capital adequacy purposes | 0.0450 | 0.0450 |
Tier 1 capital (to average assets), ratio, required for capital adequacy purposes | 0.0400 | 0.0400 |
Total capital (to risk-weighted assets), amount, minimum to be considered "Well Capitalized" | $ 166,691 | $ 163,775 |
Tier 1 capital (to risk-weighted assets), amount, minimum to be considered "Well Capitalized" | 133,353 | 131,020 |
Common equity Tier 1 capital (to risk-weighted assets), amount, minimum to be considered "Well Capitalized" | 108,349 | 106,454 |
Tier 1 capital (to average assets), amount, minimum to be considered "Well Capitalized" | $ 109,008 | $ 103,545 |
Total capital (to risk-weighted assets), ratio, minimum to be considered "Well Capitalized" | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets), ratio, minimum to be considered "Well Capitalized" | 0.0800 | 0.0800 |
Common equity Tier 1 capital (to risk-weighted assets), ratio, minimum to be considered "Well Capitalized" | 0.0650 | 0.0650 |
Tier 1 capital (to average assets), ratio, minimum to be considered "Well Capitalized" | 0.0500 | 0.0500 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | |||
Net income | $ 23,918 | $ 33,310 | $ 28,840 |
Distributed and undistributed earnings allocated to participating securities | (476) | (704) | (330) |
Net income allocated to common shares | $ 23,442 | $ 32,606 | $ 28,510 |
Weighted average common shares outstanding (in shares) | 15,149,597 | 15,171,240 | 15,087,686 |
Basic earnings per common share (USD per share) | $ 1.55 | $ 2.15 | $ 1.89 |
Diluted | |||
Net income allocated to common shares | $ 23,442 | $ 32,606 | $ 28,510 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 15,149,597 | 15,171,240 | 15,087,686 |
Add: Dilutive effects of assumed exercises of stock options | 9,260 | 60,178 | 67,661 |
Average shares and dilutive potential common shares (in shares) | 15,158,857 | 15,231,418 | 15,155,347 |
Diluted earnings per common share (USD per share) | $ 1.55 | $ 2.14 | $ 1.88 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive shares of common stock excluded from computation of earnings per share (in shares) | 0 | 0 | 0 |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Statements - Schedule of Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Cash and cash equivalents | $ 91,216 | $ 82,972 | ||
Deferred tax assets | 13,309 | 14,316 | ||
Other assets | 31,054 | 16,867 | ||
Total assets | 2,147,730 | 2,094,497 | ||
Liabilities and shareholders' equity | ||||
Other liabilities | 20,577 | 18,826 | ||
Shareholders’ equity | 192,626 | 176,916 | $ 165,222 | $ 143,366 |
Total liabilities and shareholders' equity | 2,147,730 | 2,094,497 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 1,653 | 1,559 | ||
Investment in bank subsidiary | 190,855 | 175,035 | ||
Deferred tax assets | 0 | 21 | ||
Other assets | 177 | 301 | ||
Total assets | 192,685 | 176,916 | ||
Liabilities and shareholders' equity | ||||
Other liabilities | 59 | 0 | ||
Shareholders’ equity | 192,626 | 176,916 | ||
Total liabilities and shareholders' equity | $ 192,685 | $ 176,916 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Statements - Schedule of Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expense | |||
Salaries and employee benefits | $ 29,593 | $ 27,189 | $ 21,253 |
Occupancy and equipment | 6,490 | 5,964 | 5,213 |
FDIC insurance and regulatory assessments | 1,457 | 813 | 583 |
Directors’ fees | 680 | 682 | 593 |
Other expense | 2,812 | 2,541 | 1,457 |
Total noninterest expense | 47,726 | 44,830 | 35,865 |
INCOME BEFORE INCOME TAX EXPENSE | 33,491 | 46,724 | 40,656 |
Income tax benefit | (9,573) | (13,414) | (11,816) |
NET INCOME | 23,918 | 33,310 | 28,840 |
Other comprehensive income (loss), net of tax | 2,392 | (16,646) | (2,037) |
Comprehensive income | 26,310 | 16,664 | 26,803 |
Parent Company | |||
Income | |||
Dividends from bank subsidiary | 11,789 | 6,675 | 5,123 |
Expense | |||
Salaries and employee benefits | 227 | 219 | 226 |
Occupancy and equipment | 49 | 49 | 65 |
FDIC insurance and regulatory assessments | 0 | 0 | 8 |
Directors’ fees | 228 | 214 | 135 |
Other expense | 445 | 395 | 169 |
Total noninterest expense | 949 | 877 | 603 |
INCOME BEFORE INCOME TAX EXPENSE | 10,840 | 5,798 | 4,520 |
Income tax benefit | 252 | 202 | 141 |
Equity in undistributed net income of bank subsidiary | 12,826 | 27,310 | 24,178 |
NET INCOME | 23,918 | 33,310 | 28,839 |
Other comprehensive income (loss), net of tax | 2,392 | (16,646) | (2,037) |
Comprehensive income | $ 26,310 | $ 16,664 | $ 26,802 |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Statements - Schedule of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 23,918 | $ 33,310 | $ 28,840 |
Adjustments: | |||
Change in other assets | (7,543) | 269 | 5,793 |
Change in other liabilities | (3,831) | (3,664) | 3,117 |
Net cash provided by operating activities | 67,842 | 83,734 | (28,278) |
Cash flows from investing activities | |||
Net cash from investing activities | (75,972) | (461,777) | (286,044) |
Cash flows from financing activities | |||
Repurchase of common stock | (3,934) | 0 | (28) |
Cash dividend paid on common stock | (7,269) | (6,676) | (5,132) |
Net cash provided by financing activities | 16,374 | 345,556 | 323,471 |
Net change in cash and cash equivalents | 8,244 | (32,487) | 9,149 |
Cash and cash equivalents at beginning of period | 82,972 | 115,459 | 106,310 |
Cash and cash equivalents at end of period | 91,216 | 82,972 | 115,459 |
Parent Company | |||
Cash flows from operating activities | |||
Net income | 23,918 | 33,310 | 28,839 |
Adjustments: | |||
Equity in undistributed net loss of bank subsidiary | (24,615) | (33,985) | (29,301) |
Change in other assets | 145 | (164) | (124) |
Change in other liabilities | 59 | (33) | (414) |
Net cash provided by operating activities | (493) | (872) | (1,000) |
Cash flows from investing activities | |||
Net cash from investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Repurchase of common stock | (3,934) | 0 | (28) |
Cash dividend paid on common stock | (7,269) | (6,674) | (5,132) |
Proceeds from subsidiaries | 11,789 | 6,675 | 5,123 |
Net cash provided by financing activities | 586 | 1 | (37) |
Net change in cash and cash equivalents | 93 | (871) | (1,037) |
Cash and cash equivalents at beginning of period | 1,560 | 2,431 | 3,468 |
Cash and cash equivalents at end of period | $ 1,653 | $ 1,560 | $ 2,431 |