Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 12, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38483 | |
Entity Registrant Name | BAYCOM CORP | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 37-1849111 | |
Entity Address, Address Line One | 500 Ygnacio Valley Road | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Walnut Creek | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94596 | |
City Area Code | 925 | |
Local Phone Number | 476-1800 | |
Title of 12(b) Security | Common Stock, no par value per share | |
Trading Symbol | BCML | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,579,114 | |
Entity Central Index Key | 0001730984 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | true | |
Amendment Description | EXPLANATORY NOTE REGARDING RESTATEMENT BayCom, a California corporation, is filing this Amendment No. 1 to its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 ("Amended Report") to reflect a restatement of the consolidated financial statements contained in the Company's original Quarterly Report on Form 10-Q for that period filed with the Securities and Exchange Commission ("SEC") on May 16, 2022 (the "Original Report"). Restatement of Previously Issued Consolidated Financial Statements On July 18, 2023, the audit committee of the Company's board of directors concluded that the Company's previously issued consolidated financial statements for the interim period ended March 31, 2023 and year ended December 31, 2022, as well as for the interim periods included in that fiscal year, should no longer be relied upon because of errors related to the accounting for unrealized losses on preferred equity securities that resulted in material misstatements of noninterest income and accumulated other comprehensive income. At the time of its purchase of the preferred equity securities for investment purposes, the Company inappropriately accounted for them as available for sale debt securities under Accounting Standards Codification ("ASC") Topic 320 – Investments-Debt Securities. As such, the changes in the fair value of these securities were not recorded as part of net income but rather as a component of shareholders' equity (in accumulated other comprehensive income, net of tax). However, as a result of subsequent research and third-party consultation, the Company determined that the securities should instead have been accounted for under ASC Topic 321 – Investments-Equity Securities. The result of this change in classification of the preferred equity securities is that the change in the fair value of the securities each quarter should have been recorded in noninterest income on the consolidated statements of income. As disclosed in the Original Report, the Company recorded the change, net of taxes, in the fair value of preferred equity securities totaling $1.3 million for the three months ended March 31, 2022 as part of Other Comprehensive loss, net of taxes, under ASC Topic 320 – Investments-Debt Securities rather than as part of non-interest income under ASC Topic 321 – Investments-Equity Securities. For additional information on the restatement, see Note 3 Restatement of Previously Issued Consolidated Financial Statements in the Notes to Condensed Consolidated Financial Statements contained in Part I, Item 1 of this Amended Report. Items Amended in this Filing We are filing this Amended Report in order to amend the following items of the Original Report to the extent necessary to reflect the adjustments discussed above and make corresponding revisions to the financial data appearing elsewhere in the Original Report: • Part I, Item 1. Financial Statements • Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations • Part I, Item 4. Controls and Procedures Except as indicated above, no other information in the Original Report is amended hereby. In order to preserve the nature and character of the disclosures set forth in the Original Report, except as expressly noted above, this Amended Report speaks as of the date of the filing of the Original Report, and we have not updated the disclosures in this Amended Report to speak as of a later date. All information contained in this Amended Report is subject to updating and supplementing as provided in filings with the SEC subsequent to the filing date of the Original Report. Accordingly, this Amended Report should be read in conjunction with our filings made with the SEC subsequent to the filing date of the Original Report Control Considerations In connection with the above, our management has reassessed the effectiveness of our disclosure controls and procedures as of March 31, 2022, and we have included applicable disclosure in Part I, Item 4 herein, "Controls and Procedures." Management identified a material weakness in our internal control over financial reporting, as described in Part I, Item 4 of this Amended Report, resulting in the conclusion by our Chief Executive Officer and Chief Financial Officer that our disclosure controls and procedures were not effective as of March 31, 2022. Management has taken steps, and is continuing to take steps, to remediate this material weakness, as described under "Remediation Plan and Status" in Part I, Item 4 of this Amended Report. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Cash due from banks | $ 35,532 | $ 21,178 | ||
Federal funds sold and interest-bearing balances in banks | 391,667 | 358,509 | ||
Cash and cash equivalents | 427,199 | 379,687 | ||
Time deposits in banks | 3,336 | 3,585 | ||
Investment securities available-for-sale (AFS) | 167,975 | 155,658 | ||
Equity securities | 16,698 | 18,777 | ||
Federal Home Loan Bank ("FHLB") stock, at par | 10,679 | 8,385 | ||
Federal Reserve Bank ("FRB") stock, at par | 8,547 | 7,650 | ||
Loans held for sale | 970 | 6,470 | ||
Loans, net of allowance for credit losses | 1,986,228 | 1,647,190 | ||
Premises and equipment, net | 14,257 | 14,370 | ||
Other real estate owned ("OREO") | 21 | 21 | ||
Core deposit intangible, net | 6,750 | 6,489 | ||
Cash surrender value of bank owned life insurance ("BOLI") policies, net | 21,736 | 21,590 | ||
Right-of-use assets ("ROU"), net | 13,645 | 12,127 | ||
Goodwill | 38,838 | 38,838 | $ 38,838 | |
Interest receivable and other assets | 39,133 | 29,860 | ||
Total assets | 2,756,012 | 2,350,697 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Noninterest and interest bearing deposits | 2,330,395 | 1,985,239 | ||
Junior subordinated deferrable interest debentures, net | 8,423 | 8,403 | ||
Subordinated debt, net | 63,584 | 63,542 | ||
Salary continuation plan | 4,517 | 4,393 | ||
Lease liabilities | 14,177 | 12,657 | ||
Interest payable and other liabilities | 10,262 | 13,856 | ||
Total liabilities | 2,431,358 | 2,088,090 | ||
Commitments and contingencies (Note 19) | ||||
Shareholders' equity | ||||
Preferred stock | ||||
Common stock | 220,294 | 157,098 | ||
Additional paid in capital | 287 | 287 | ||
Accumulated other comprehensive loss, net of tax | (3,527) | 2,166 | ||
Retained earnings | 107,600 | 103,056 | ||
Total shareholders' equity | 324,654 | 262,607 | $ 254,550 | $ 252,591 |
Total liabilities and shareholders' equity | $ 2,756,012 | $ 2,350,697 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance for loan losses | ||||
Investment securities available-for-sale amortized cost | $ 172,927 | $ 153,062 | ||
Allowance for loan losses | $ 17,700 | $ 17,700 | $ 17,500 | $ 17,500 |
Preferred Stock | ||||
Preferred Stock, No Par Value | $ 0 | $ 0 | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Preferred Stock, Shares Outstanding | 0 | 0 | ||
Common Stock | ||||
Common Stock, No Par Value | $ 0 | $ 0 | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||
Common Stock, Shares, Issued | 13,677,729 | 10,680,386 | ||
Common Stock, Shares, Outstanding | 13,677,729 | 10,680,386 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income: | ||
Loans, including fees | $ 22,927 | $ 19,193 |
Investment securities | 1,608 | 868 |
FHLB dividends | 149 | 99 |
FRB dividends | 121 | 112 |
Total interest and dividend income | 24,805 | 20,272 |
Interest expense: | ||
Deposits | 1,470 | 1,206 |
Subordinated debt | 896 | 895 |
Junior subordinated debt | 86 | 87 |
Total interest expense | 2,452 | 2,188 |
Net interest income | 22,353 | 18,084 |
Provision for credit losses | 7 | 0 |
Net interest income after provision for credit losses | 22,346 | 18,084 |
Noninterest income: | ||
Gain on sale of loans | 1,137 | 576 |
Loss on equity securities | (1,768) | |
Loan servicing and other loan fees | 574 | 529 |
Income on investment in Small Business Investment Company ("SBIC") fund | 197 | 263 |
Gain on sale of OREO | 36 | |
Bargain purchase gain | 1,665 | |
Other income and fees | 196 | 229 |
Total noninterest income | 2,631 | 2,237 |
Noninterest expense: | ||
Salaries and employee benefits | 10,310 | 8,885 |
Occupancy and equipment | 2,426 | 1,815 |
Data processing | 2,273 | 1,484 |
Other expense | 3,312 | 1,901 |
Total noninterest expense | 18,321 | 14,085 |
Income before provision for income taxes | 6,656 | 6,236 |
Provision for income taxes | 1,427 | 1,704 |
Net income | $ 5,229 | $ 4,532 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 0.41 | $ 0.40 |
Weighted average shares outstanding (in shares) | 12,646,981 | 11,273,604 |
Diluted earnings per common share (in dollars per share) | $ 0.41 | $ 0.40 |
Weighted average shares outstanding (in shares) | 12,646,981 | 11,273,604 |
Service charges and other fees | ||
Noninterest income: | ||
Service charges and other fees | $ 630 | $ 604 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | ||
Net income | $ 5,229 | $ 4,532 |
Other comprehensive loss: | ||
Change in unrealized loss on available-for-sale securities | (7,993) | (1,101) |
Deferred tax benefit | 2,300 | 316 |
Other comprehensive loss, net of tax | (5,693) | (785) |
Total comprehensive income (loss) | $ (464) | $ 3,747 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income/(Loss) | Retained Earnings | Total |
Balance at Dec. 31, 2020 | $ 167,242 | $ 287 | $ 2,697 | $ 82,365 | $ 252,591 |
Balance (in shares) at Dec. 31, 2020 | 11,295,397 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,532 | 4,532 | |||
Other comprehensive loss, net | (785) | (785) | |||
Restricted stock granted (in shares) | 24,187 | ||||
Stock based compensation | $ 413 | 413 | |||
Repurchase of shares | $ (2,201) | (2,201) | |||
Repurchase of shares (in shares) | (132,123) | ||||
Balance at Mar. 31, 2021 | $ 165,454 | 287 | 1,912 | 86,897 | 254,550 |
Balance (in shares) at Mar. 31, 2021 | 11,187,461 | ||||
Balance at Dec. 31, 2021 | $ 157,098 | 287 | 2,166 | 103,056 | $ 262,607 |
Balance (in shares) at Dec. 31, 2021 | 10,680,386 | 10,680,386 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,229 | $ 5,229 | |||
Other comprehensive loss, net | (5,693) | (5,693) | |||
Restricted stock granted (in shares) | 22,473 | ||||
Restricted stock forfeited (in shares) | (532) | ||||
Issuance of common shares to acquire Pacific Enterprise Bancorp | $ 64,140 | 64,140 | |||
Issuance of common shares to acquire Pacific Enterprise Bancorp (in shares) | 3,032,579 | ||||
Cash dividends declared on common stock | (685) | (685) | |||
Stock based compensation | $ 324 | 324 | |||
Repurchase of shares | $ (1,268) | (1,268) | |||
Repurchase of shares (in shares) | (57,177) | ||||
Balance at Mar. 31, 2022 | $ 220,294 | $ 287 | $ (3,527) | $ 107,600 | $ 324,654 |
Balance (in shares) at Mar. 31, 2022 | 13,677,729 | 13,677,729 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 3 Months Ended |
Mar. 31, 2022 $ / shares | |
Stock Transactions, Parenthetical Disclosures [Abstract] | |
Cash dividends (in dollars per share) | $ 0.05 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 5,229 | $ 4,532 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 7 | 0 | |
Increase in deferred tax assets | 2,309 | (29) | |
Accretion on acquired loans | (231) | (642) | |
Gain on sale of loans | (1,137) | (576) | |
Proceeds from sale of loans | 10,936 | 6,800 | |
Loans originated for sale | (7,931) | (9,702) | |
Loss on sale of premises, net | (12) | ||
Gain on sale of OREO | (36) | ||
Bargain purchase gain | (1,665) | ||
Accretion on junior subordinated debentures | 20 | 21 | |
Increase in cash surrender value of life insurance policies | (146) | (165) | |
Amortization/accretion of premiums/discounts on investment securities, net | 137 | 109 | |
Loss on equity securities | 1,768 | ||
Depreciation and amortization | 486 | 520 | |
Core deposit intangible amortization | 495 | 454 | |
Stock based compensation expense | 325 | 413 | |
Decrease in deferred loan origination fees, net | (1,362) | 798 | |
Increase (decrease) in interest receivable and other assets | (432) | (2,768) | |
Increase in salary continuation plan, net | 124 | 91 | |
Decrease in interest payable and other liabilities | (6,086) | 843 | |
Net cash provided by operating activities | 2,846 | 651 | |
Cash flows from investing activities: | |||
Proceeds from maturities of interest bearing deposits in banks | 249 | 998 | |
Purchase of investment securities | (22,671) | (4,438) | |
Proceeds from the maturities, repayments and calls of investment securities | 2,475 | 7,420 | |
Proceeds from the sales of investment securities | 63 | ||
(Redemption) purchase of Federal Reserve Bank stock | 45 | (12) | |
(Decrease) increase in loans, net | 79,031 | 66,490 | |
Proceeds from sale of premises | 46 | ||
Proceeds from sale of OREO | 22 | 279 | |
Purchase of equipment and leasehold improvements, net | (174) | (397) | |
Net cash received for acquisitions | 18,423 | ||
Net cash (used in) provided by investing activities | 77,463 | 70,386 | |
Cash flows from financing activities: | |||
(Decrease) increase in noninterest and interest bearing deposits | 293,572 | 96,513 | |
Increase (decrease) in time deposits, net | (325,101) | (6,939) | |
Repurchase of common stock | (1,268) | (2,201) | |
Net cash provided by (used in) financing activities | (32,797) | 87,373 | |
Increase in cash and cash equivalents | 47,512 | 158,410 | |
Cash and cash equivalents at beginning of period | 379,687 | 299,329 | $ 299,329 |
Cash and cash equivalents at end of period | 427,199 | 457,739 | $ 379,687 |
Cash paid during the year for: | |||
Interest expense | 3,306 | 2,221 | |
Cash paid during the year for: | |||
Income taxes paid, net | 6,985 | 33 | |
Non-cash investing and financing activities: | |||
Change in unrealized loss on available-for-sale securities, net of tax | (5,693) | (785) | |
Recognition of ROU assets | 832 | ||
Recognition of lease liability | $ 833 | ||
Acquisition: | |||
Assets acquired, net of cash received | 440,785 | ||
Liabilities assumed | 380,055 | ||
Common stock issued | $ 64,140 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION BayCom Corp (the “Company”) is a bank holding company headquartered in Walnut Creek, California. United Business Bank (the “Bank”), the Company’s wholly owned banking subsidiary, is a California state-chartered bank which provides a broad range of financial services primarily to local small and mid-sized businesses, service professionals and individuals. In the 17 years of operation, the Bank has grown to 34 full-service banking branches with 16 locations in California, two in Washington, five in Central New Mexico and 11 in Colorado. The condensed consolidated financial statements include the accounts of the Company and the Bank. All intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements include all adjustments of a normal and recurring nature, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes normally included in annual financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Results of operations for interim periods are not necessarily indicative of results for the full year. Certain prior year information has been reclassified to conform to the current year presentation. None of the reclassifications impacted consolidated net income, earnings per share or shareholders’ equity. On April 5, 2012, the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company” we may delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We intend to take advantage of the benefits of this extended transition period. Accordingly, our condensed consolidated financial statements may not be comparable to companies that comply with such new or revised accounting standards. On February 1, 2022, the Company completed its acquisition of Pacific Enterprise Bancorp (“PEB”) and its wholly owned subsidiary of Pacific Enterprise Bank, headquartered in Irvine, California (“PEB Merger”). See “Note 4 – Acquisitions” for additional information on the PEB Merger. |
ACCOUNTING GUIDANCE NOT YET EFF
ACCOUNTING GUIDANCE NOT YET EFFECTIVE AND ADOPTED ACCOUNTING GUIDANCE | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
ACCOUNTING GUIDANCE NOT YET EFFECTIVE AND ADOPTED ACCOUNTING GUIDANCE | NOTE 2 - ACCOUNTING GUIDANCE NOT YET EFFECTIVE AND ADOPTED ACCOUNTING GUIDANCE Recent Accounting Guidance Not Yet Effective In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the initial guidance in November 2018, ASU No. 2018-19, April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, and March 2020, ASU 2020-03, all of which clarifies codification and corrects unintended application of the guidance. ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired (“PCI”) debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, public business entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU 2018-19 clarifies that receivables arising from operating leases are accounted for using lease guidance and not as financial instruments. ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. ASU 2019-05 allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. The amendments in these ASUs are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted for smaller reporting companies, such as the Company. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is reviewing the requirements of these ASUs and expects to begin developing and implementing processes and procedures to ensure it is fully compliant with the amendments at the adoption date. Upon adoption, the Company expects changes in the processes and procedures used to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The new guidance may result in an increase in the allowance for loan losses which will also reflect the new requirement to include the nonaccretable principal differences on purchased credit-impaired loans; however, the Company is still in the process of determining the magnitude of the change and its impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of reference Rate Reform on Financial Reporting In March 2022 the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures |
RESTATEMENT OF THE CONSOLIDATED
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Prior Period Adjustment [Abstract] | |
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS | NOTE 3 – RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS On July 18, 2023, the audit committee of the Company’s board of directors concluded that the Company’s previously issued unaudited interim consolidated financial statements for the period ended March 31, 2023 and the consolidated financial statements for the year ended December 31, 2022, as well as for the unaudited interim periods included in that fiscal year, should no longer be relied upon because of errors related to the accounting for unrealized losses on preferred equity securities that resulted in material misstatements of noninterest income and accumulated other comprehensive income. At the time of its purchase of the preferred equity securities for investment purposes, the Company inappropriately accounted for them as available for sale debt securities under Accounting Standards Codification (“ASC”) Topic 320 – Investments-Debt Securities Investments-Equity Securities As disclosed in the Original Report, the Company recorded the change, net of taxes, in the fair value of preferred equity securities totaling $1.3 million for the three months ended March 31, 2022 as part of Other Comprehensive loss, net of taxes, under ASC Topic 320 – Investments-Debt Securities Investments-Equity Securities In addition to the below, various footnotes reflect the effects of these restatements including, but not limited to, Note 4, Acquisitions and Note 5, Investment Securities. The tables below show the effects of the restatement on the Company’s condensed consolidated balance sheets, condensed consolidated statements of income, condensed consolidated statements of comprehensive loss, condensed consolidated statements of changes in shareholders’ equity, and condensed consolidated statement of cash flows as of and for the quarter ended March 31, 2022 (in thousands, except for per share data): March 31, 2022 Consolidated Balance Sheet (As Previously Reported) Adjustments (As Restated) ASSETS Cash and due from banks $ 35,532 $ — $ 35,532 Federal funds sold 391,667 — 391,667 Cash and cash equivalents 427,199 — 427,199 Interest bearing deposits in banks 3,336 — 3,336 Investment securities available-for-sale 184,673 (16,698) 167,975 Equity securities — 16,698 16,698 Federal Home Loan Bank ("FHLB") stock, at par 10,679 — 10,679 Federal Reserve Bank ("FRB") stock, at par 8,547 — 8,547 Loans held for sale 970 — 970 Loans, net of allowance for loan losses of $17,700 at March 31, 2022 and $17,700 December 31, 2021 1,986,228 — 1,986,228 Premises and equipment, net 14,257 — 14,257 Other real estate owned ("OREO") 21 — 21 Core deposit intangible, net 6,750 — 6,750 Cash surrender value of bank owned life insurance ("BOLI") policies, net 21,736 — 21,736 Right-of-use assets ("ROU"), net 13,645 — 13,645 Goodwill 38,838 — 38,838 Interest receivable and other assets 39,133 — 39,133 Total assets $ 2,756,012 $ — $ 2,756,012 LIABILITIES AND SHAREHOLDERS’ EQUITY Noninterest and interest bearing deposits $ 2,330,395 $ — $ 2,330,395 Junior subordinated deferrable interest debentures, net 8,423 — 8,423 Subordinated debt, net 63,584 — 63,584 Salary continuation plan 4,517 — 4,517 Lease liabilities 14,177 — 14,177 Interest payable and other liabilities 10,262 — 10,262 Total liabilities 2,431,358 — 2,431,358 Commitments and contingencies (Note 19) Shareholders' equity Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding at both March 31, 2022 and December 31, 2021 — — — Common stock, no par value; 100,000,000 shares authorized; 13,677,729 and 10,680,386 shares issued outstanding 220,294 — 220,294 Additional paid in capital 287 — 287 Accumulated other comprehensive loss, net of tax (4,786) 1,259 (3,527) Retained earnings 108,859 (1,259) 107,600 Total shareholders’ equity 324,654 — 324,654 Total liabilities and shareholders’ equity $ 2,756,012 $ — $ 2,756,012 Three months ended March 31, 2022 Consolidated Statement of Income (As Previously Reported) Adjustments (As Restated) Interest income: Loans, including fees $ 22,927 $ — $ 22,927 Investment securities and interest bearing deposits in banks 1,608 — 1,608 FHLB dividends 149 — 149 FRB dividends 121 — 121 Total interest and dividend income 24,805 — 24,805 Interest expense: Deposits 1,470 — 1,470 Subordinated debt 896 — 896 Other borrowings 86 — 86 Total interest expense 2,452 — 2,452 Net interest income 22,353 — 22,353 Provision for loan losses 7 — 7 Net interest income after provision for loan losses 22,346 — 22,346 Noninterest income: Gain on sale of loans 1,137 — 1,137 Loss on equity securities — (1,768) (1,768) Service charges and other fees 630 — 630 Loan servicing and other loan fees 574 — 574 Income on investment in Small Business Investment Company (“SBIC”) fund 197 — 197 Bargain purchase gain 1,665 — 1,665 Other income and fees 196 — 196 Total noninterest income 4,399 (1,768) 2,631 Noninterest expense: Salaries and employee benefits 10,310 — 10,310 Occupancy and equipment 2,426 — 2,426 Data processing 2,273 — 2,273 Other expense 3,312 — 3,312 Total noninterest expense 18,321 — 18,321 Income before provision for income taxes 8,424 (1,768) 6,656 Provision for income taxes 1,936 (509) 1,427 Net income $ 6,488 $ (1,259) $ 5,229 Earnings per common share: Basic earnings per common share $ 0.51 $ (0.10) $ 0.41 Weighted average shares outstanding 12,646,981 12,646,981 12,646,981 Three months ended March 31, 2022 Consolidated Statement of Comprehensive Loss (As Previously Reported) Adjustments (As Restated) Net income $ 6,488 $ (1,259) $ 5,229 Other comprehensive loss: Change in unrealized loss on available-for-sale securities (9,761) 1,768 (7,993) Deferred tax benefit 2,809 (509) 2,300 Other comprehensive loss, net of tax (6,952) 1,259 (5,693) Total comprehensive loss $ (464) $ — $ (464) Three months ended March 31, 2022 Consolidated Statement of Cash Flow Changes (As Previously Reported) Adjustments (As Restated) Cash flows from operating activities: Net income $ 6,488 (1,259) 5,229 Adjustments to reconcile net income to net cash provided by operating activities: Decrease in deferred tax assets 2,818 (509) 2,309 Loss on equity securities — 1,768 1,768 Net cash provided by operating activities 2,846 — 2,846 Non-cash investing and financing activities: Change in unrealized loss on available-for-sale securities, net of tax $ (6,952) $ 1,259 $ (5,693) |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 4 – ACQUISITIONS Acquisition of Pacific Enterprise Bancorp (“PEB”) On February 1, 2022, the Company completed the PEB Merger. As of the acquisition date, PEB merged into the Company and Pacific Enterprise Bank, PEB’s wholly owned bank subsidiary, merged into United Business Bank. The acquisition expanded the Company’s market share in California with one branch in Irvine. Pursuant to the merger agreement, at the effective time of the PEB Merger, BayCom paid aggregate consideration to PEB shareholders of approximately $64.1 million consisting of 3,032,579 shares of BayCom common stock and $275,000 in cash. Noninterest income for the current quarter included $1.6 million in bargain purchase gain, offset by $3.1 million of nonrecurring acquisition-related expenses included in noninterest expense related to the Company’s acquisition of PEB. The following table summarizes the fair value of the assets acquired and liabilities assumed at the acquisition date: PEB Acquisition Date February 1, 2022 Fair value of assets: Cash and due from banks $ 5,350 Total cash and cash equivalents 5,350 Interest bearing deposits in banks 13,348 Investment securities available-for-sale 3 FHLB stock, at par 2,294 FRB stock, at par 942 Loans, net 412,851 Premises and equipment, net 221 Core deposit intangible 756 Deferred tax assets, net 1,192 Interest receivable and other assets 9,178 Total assets acquired 446,135 Liabilities: Deposits Noninterest bearing 60,006 Interest bearing 316,679 Total Deposits 376,685 Interest payable and other liabilities 3,370 Total liabilities assumed 380,055 Stock consideration 64,140 Cash consideration 275 Bargain purchase gain $ 1,665 The following table presents the net assets acquired and the estimated fair value adjustments, which resulted in bargain purchase gain at the acquisition date: PEB Acquisition Date February 1, 2022 Book value of net assets acquired $ 61,469 Fair value adjustments: Loans, net 5,840 Premises and equipment, net 26 Core deposit intangible 756 Time deposits (869) Reserve for unfunded commitments 283 Write-up right-of-use asset 439 Total purchase accounting adjustments 6,475 Tax effect of purchase accounting adjustments at 27.9% (1,864) Fair value of assets acquired 66,080 Value of stock issued/cash paid for stock options 64,415 Bargain purchase gain $ (1,665) Pro Forma Results of Operations The operating results of the Company for the three months ended March 31, 2022 in the condensed consolidated statements of income include the operating results of PEB, since its acquisition date. The following table represents the net interest income, net income, basic and diluted earnings per share, as if the PEB Merger was effective January 1, 2021. The unaudited pro forma information in the following table is intended for informational purposes only and is not necessarily indicative of future operating results or operating results that would have occurred had the mergers been completed at the beginning of the respective years. No assumptions have been applied to the pro forma results of operation regarding possible revenue enhancements, expense efficiencies or asset dispositions. Unaudited pro forma net interest income, net income and earnings per share are presented below: Three Months Ended March 31, 2022 (As Restated) 2021 Net interest income $ 23,205 $ 24,271 Net income 1,869 6,084 Basic earnings per share $ 0.14 $ 0.42 Diluted earnings per share 0.14 0.42 These amounts include the third-party acquisition related-expenses, accretion of the discounts on acquired loans and amortization of the fair value mark adjustments on core deposit intangible. Acquisition expenses Acquisition expenses are recognized as incurred and continue until all systems are converted and operational functions become fully integrated. No third-party acquisition expenses were recognized in the consolidated statements of income for the three months ended March 31, 2021. The Company recognized third-party acquisition expenses for the three months ended March 31, 2022, as follows: Severance expense $ 556 Occupancy expense 375 Data processing 1,073 Professional fees 724 Other expenses 347 Total $ 3,075 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 5 – INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities available-for-sale at the dates indicated are summarized as follows: Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value March 31, 2022 (As Restated) U.S. Government Agencies $ 1,509 $ — $ (1) $ 1,508 Municipal securities 23,541 56 (1,066) 22,531 Mortgage-backed securities 36,445 323 (1,474) 35,294 Collateralized mortgage obligations 30,602 96 (1,277) 29,421 SBA securities 5,680 36 (64) 5,652 Corporate bonds 75,150 356 (1,937) 73,569 Total $ 172,927 $ 867 $ (5,819) $ 167,975 Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value December 31, 2021 U.S. Government Agencies $ 1,510 $ — $ — $ 1,510 Municipal securities 23,646 493 (16) 24,123 Mortgage-backed securities 33,973 1,333 (210) 35,096 Collateralized mortgage obligations 27,228 436 (158) 27,506 SBA securities 6,055 53 (20) 6,088 Corporate bonds 60,650 851 (166) 61,335 Total $ 153,062 $ 3,166 $ (570) $ 155,658 During the three months ended March 31, 2022, the Company sold one available-for-sale securities for minimal realized gains and did not The estimated fair value and gross unrealized losses for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position at the dates indicated are as follows: Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized fair value loss fair value loss fair value loss March 31, 2022 (As Restated) U.S. Government Agencies $ 1,508 $ (1) $ — $ — $ 1,508 $ (1) Municipal securities 14,198 (1,066) — — 14,198 (1,066) Mortgage-backed securities 18,877 (1,076) 2,740 (398) 21,617 (1,474) Collateralized mortgage obligations 18,474 (1,092) 2,059 (185) 20,533 (1,277) SBA securities 1,194 (44) 976 (20) 2,170 (64) Corporate bonds 50,313 (1,937) — — 50,313 (1,937) Total $ 104,564 $ (5,216) $ 5,775 $ (603) $ 110,339 $ (5,819) Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized fair value loss fair value loss fair value loss December 31, 2021 Municipal securities $ 3,932 $ (16) $ — $ — $ 3,932 $ (16) Mortgage-backed securities 2,954 (111) 2,133 (99) 5,087 (210) Collateralized mortgage obligations 9,236 (108) 1,605 (50) 10,841 (158) SBA securities 134 — 1,058 (20) 1,192 (20) Corporate bonds 23,084 (166) — — 23,084 (166) Total $ 39,340 $ (401) $ 4,796 $ (169) $ 44,136 $ (570) At March 31, 2022, the Company held 330 investment securities, of which 20 were in an unrealized loss position for more than twelve months and 145 were in an unrealized loss position for less than twelve months. These temporary unrealized losses relate principally to current interest rates for similar types of securities. The Company anticipates full recovery of amortized cost with respect to these securities at maturity or sooner in the event of a more favorable market interest rate environment. The amortized cost and estimated fair value of securities available-for-sale at the dates indicated by contractual maturity are shown below. 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. March 31, 2022 December 31, 2021 Amortized Estimated Amortized Estimated cost fair value cost fair value (As Restated) (As Restated) Available-for-sale Due in one year or less $ 861 $ 861 $ 862 $ 865 Due after one through five years 23,297 23,229 23,519 24,173 Due after five years through ten years 88,707 85,952 79,116 79,993 Due after ten years 60,062 57,933 49,565 50,627 Total $ 172,927 $ 167,975 $ 153,062 $ 155,658 Equity securities months ended March 31, 2021. Equity securities were $16.7 million as of March 31, 2022, compared to $18.8 million as of December 31, 2021. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
LOANS | NOTE 6 – LOANS The Company’s loan portfolio at the dates indicated is summarized below: March 31, December 31, 2022 2021 Commercial and industrial $ 313,556 $ 230,177 Construction and land 20,854 13,371 Commercial real estate 1,564,305 1,299,684 Residential 102,079 118,423 Consumer 3,675 5,138 Total loans 2,004,469 1,666,793 Net deferred loan fees (541) (1,903) Allowance for loan losses (17,700) (17,700) Net loans $ 1,986,228 $ 1,647,190 During the first quarter of 2022, the Bank continued its participation in the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”), by processing applications for PPP loan forgiveness. The Company’s total impaired loans, including nonaccrual loans TDR loans, and accreting purchase credit impaired (“PCI”) loans that have experienced post-acquisition declines in cash flows expected to be collected are summarized as follows: Commercial Construction Commercial and industrial and land real estate Residential Consumer Total March 31, 2022 Recorded investment in impaired loans: With no specific allowance recorded $ 184 $ 36 $ 5,451 $ 1,632 $ — $ 7,303 With a specific allowance recorded 5,538 — 259 128 — 5,925 Total recorded investment in impaired loans $ 5,722 $ 36 $ 5,710 $ 1,760 $ — $ 13,228 Specific allowance on impaired loans $ 1,277 $ — $ 259 $ 10 $ — 1,546 December 31, 2021 Recorded investment in impaired loans: With no specific allowance recorded $ 112 $ 36 $ 5,015 $ 1,441 $ — $ 6,604 With a specific allowance recorded 681 — 262 146 — 1,089 Total recorded investment in impaired loans $ 793 $ 36 $ 5,277 $ 1,587 $ — $ 7,693 Specific allowance on impaired loans $ 681 $ — $ 224 $ 25 $ — $ 930 Three months ended March 31, 2022 Average recorded investment in impaired loans $ 3,237 $ 812 $ 5,493 $ 898 $ — $ 10,440 Interest recognized 1 — 6 8 — 15 Three months ended March 31, 2021 Average recorded investment in impaired loans 915 36 6,073 2,628 — 9,652 Interest recognized 1 — 58 4 — 63 Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Impaired loans on accrual are comprised solely of TDR loans performing under modified loan agreements, whose principal and interest is determined to be collectible. Nonaccrual loans are loans where principal and interest have been determined to not be fully collectible. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR loan. TDR loans are generally placed on nonaccrual status at the time of restructuring and included in impaired loans. These loans are returned to accrual status after the borrower demonstrates performance with the modified terms for a sustained period of time (generally six months) and has the capacity to continue to perform in accordance with the modified terms of the restructured debt. For the three months ended March 31, 2022 and 2021, the Company recorded no charge-offs related to TDR loans. During the three months ended March 31, 2022 and 2021, there were no TDR loans for which there was a payment default within the first 12 months of the modification. As of March 31, 2022 and December 31, 2021, TDR loans had a related allowance of $878,000 and $31,000, respectively. As of March 31, 2022 and December 31, 2021, $794,000 and $805,000, respectively, of TDR loans were performing in accordance with their modified terms. All TDR loans are also included in the loans individually evaluated for impairment as part of the calculation of the allowance for loan losses. There were no commitments to lend additional amounts to borrowers with outstanding loans that are classified as TDR loans at March 31, 2022. A summary of TDR loans by type of concession and type of loan, as of the periods indicated: Number of Rate Term Rate & term loans modification modification modification Total March 31, 2022 Commercial and industrial 3 $ — $ 4,881 $ — $ 4,881 Construction and land — — — — — Commercial real estate 4 — 2,191 — 2,191 Residential 1 — 128 — 128 Consumer — — — — — Total 8 $ — $ 7,200 $ — $ 7,200 Number of Rate Term Rate & term loans modification modification modification Total March 31, 2021 Commercial and industrial 2 $ — $ 29 $ — $ 29 Construction and land — — — — — Commercial real estate 3 — 1,422 — 1,422 Residential 1 — 150 — 150 Consumer — — — — — Total 6 $ — $ 1,601 $ — $ 1,601 There was one loan modified as a TDR during the three months ended March 31, 2022. There were two loans modified as TDRs during the three months ended March 31, 2021. Risk Rating System The Company evaluates and assigns a risk grade to each loan based on certain criteria to assess the credit quality of each loan. The assignment of a risk rating is done for each individual loan. Loans are graded from inception and on a continuing basis until the debt is repaid. Any adverse or beneficial trends will trigger a review of the loan risk rating. Each loan is assigned a risk grade based on its characteristics. Loans with low to average credit risk are assigned a lower risk grade than those with higher credit risk as determined by the individual loan characteristics. The Company’s Pass loans includes loans with acceptable business or individual credit risk where the borrower’s operations, cash flow or financial condition provides evidence of low to average levels of risk. Loans that are assigned higher risk grades are loans that exhibit the following characteristics: Special Mention loans have potential weaknesses that deserve close attention. If left uncorrected, these potential weaknesses may result in a deterioration of the repayment prospects for the loan or in the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. A Special Mention rating is a temporary rating, pending the occurrence of an event that would cause the risk rating either to improve or to be downgraded. Loans in this category would be characterized by any of the following situations: ● Credit that is currently protected but is potentially a weak asset; ● Credit that is difficult to manage because of an inadequate loan agreement, the condition of and/or control over collateral, failure to obtain proper documentation, or any other deviation from product lending practices; and ● Adverse financial trends. Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged. Loans classified substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. The potential loss does not have to be recognizable in an individual credit for that credit to be risk rated Substandard. A loan can be fully and adequately secured and still be considered Substandard. Some characteristics of Substandard loans are: ● Inability to service debt from ordinary and recurring cash flow; ● Chronic delinquency; ● Reliance upon alternative sources of repayment; ● Term loans that are granted on liberal terms because the borrower cannot service normal payments for that type of debt; ● Repayment dependent upon the liquidation of collateral; ● Inability to perform as agreed, but adequately protected by collateral; ● Necessity to renegotiate payments to a non-standard level to ensure performance; and ● The borrower is bankrupt, or for any other reason, future repayment is dependent on court action. Doubtful loans have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and value, highly questionable and improbable. Doubtful loans have a high probability of loss, yet certain important and reasonably specific pending factors may work toward the strengthening of the credit. Losses are recognized as charges to the allowance when the loan or portion of the loan is considered uncollectible or at the time of foreclosure. Recoveries on loans previously charged off are credited to the allowance for loan losses. The following tables present the internally assigned risk grade by class of loans at the dates indicated: Special Pass Mention Substandard Doubtful Total March 31, 2022 Commercial and industrial $ 300,516 $ 3,740 $ 9,300 $ — $ 313,556 Construction and land 17,830 2,988 36 — 20,854 Commercial real estate 1,505,699 53,433 5,173 — 1,564,305 Residential 98,742 1,527 1,810 — 102,079 Consumer 3,653 — 22 — 3,675 Total $ 1,926,440 $ 61,688 $ 16,341 $ — $ 2,004,469 Special Pass Mention Substandard Doubtful Total December 31, 2021 Commercial and industrial $ 216,611 $ 9,178 $ 4,388 $ — $ 230,177 Construction and land 13,264 71 36 — 13,371 Commercial real estate 1,264,269 28,438 6,977 — 1,299,684 Residential 115,534 1,250 1,639 — 118,423 Consumer 5,116 — 22 — 5,138 Total $ 1,614,794 $ 38,937 $ 13,062 $ — $ 1,666,793 The following tables provide an aging of the Company’s loans receivable as of the dates indicated: Recorded 90 Days investment > 30–59 Days 60–89 Days or more Total Total loans 90 days and past due past due past due past due Current PCI loans receivable accruing March 31, 2022 Commercial and industrial $ 5,828 $ 236 $ 653 $ 6,717 $ 302,380 $ 4,459 $ 313,556 $ — Construction and land 337 — 36 373 19,034 1,447 20,854 — Commercial real estate 109 697 3,119 3,925 1,536,959 23,421 1,564,305 — Residential 729 321 1,002 2,052 98,457 1,570 102,079 117 Consumer — 221 — 221 3,454 — 3,675 — Total $ 7,003 $ 1,475 $ 4,810 $ 13,288 $ 1,960,284 $ 30,897 $ 2,004,469 $ 117 Recorded 90 Days investment > 30–59 Days 60–89 Days or more Total Total loans 90 days and past due past due past due past due Current PCI loans receivable accruing December 31, 2021 Commercial and industrial $ 275 $ 10 $ 606 $ 891 $ 228,980 $ 306 $ 230,177 $ — Construction and land — 338 36 374 12,997 — 13,371 — Commercial real estate 196 410 2,621 3,227 1,286,311 10,146 1,299,684 — Residential 1,442 21 1,031 2,494 114,162 1,767 118,423 — Consumer 3 — — 3 5,135 — 5,138 — Total $ 1,916 $ 779 $ 4,294 $ 6,989 $ 1,647,585 $ 12,219 $ 1,666,793 $ — The balance of nonaccrual loans guaranteed by a government agency, which reduces the Company’s credit exposure, was $822,000 at March 31, 2022 compared to $841,000 at December 31, 2021. At March 31, 2022 and December 31, 2021, nonaccrual loans included $5.6 million and $6.9 million, respectively, of loans 30-89 days past due and $2.2 million and $2.5 million of loans less than 30 days past due, respectively. At March 31, 2022, nonaccrual loans 30-89 days past due of $5.6 million was primarily comprised of one $4.9 million commercial and industrial loan restructured as a TDR during the three months ended March 31, 2022 and seven smaller loans, and the $2.2 million of loans less than 30 days past due are comprised of 11 loans. All of these loans were placed on nonaccrual due to concerns over the financial condition of the borrowers. There was one loan totaling $117,000 that was 90 days or more past due and still accruing at March 31, 2022, compared to no loans at December 31, 2021. Interest foregone on nonaccrual loans was approximately $84,600 for the three months ended March 31, 2022 compared to $88,300 for the three months ended March 31, 2021. Purchased Credit Impaired Loans In connection with the Company's acquisitions, the contractual amount and timing of undiscounted principal and interest payments and the estimated amount and timing of undiscounted expected principal and interest payments were used to estimate the fair value of PCI loans at the acquisition date. The difference between these two amounts represented the nonaccretable difference. On the acquisition date, the amount by which the undiscounted expected cash flows exceed the estimated fair value of the acquired loans is the “accretable yield”. The accretable yield is then measured at each financial reporting date and represented the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. For PCI loans the accretable yield is accreted into interest income over the life of the estimated remaining cash flows. At each financial reporting date, the carrying value of each PCI loan is compared to an updated estimate of expected principal payment or recovery on each loan. To the extent that the loan carrying amount exceeds the updated expected principal payment or recovery, a provision of loan loss would be recorded as a charge to income and an allowance for loan loss established. The unpaid principal balance and carrying value of the Company’s PCI loans at the dates indicated are as follows: March 31, 2022 December 31, 2021 Unpaid Unpaid principal Carrying principal Carrying balance value balance value Commercial and industrial $ 5,587 $ 4,459 $ 546 $ 306 Construction and land 1,667 1,447 — — Commercial real estate 25,751 23,421 11,519 10,146 Residential 1,943 1,570 2,202 1,767 Total $ 34,948 $ 30,897 $ 14,267 $ 12,219 The following table reflects the changes in the accretable yield of PCI loans Three months ended March 31, 2022 2021 Balance at beginning of period $ 508 $ 383 Additions 1,277 — Removals (48) (65) Accretion (50) (230) Balance at end of period $ 1,687 $ 88 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2022 | |
Allowance for Loan Losses [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 7 – ALLOWANCE FOR LOAN LOSSES The following tables summarize the Company’s allowance for loan losses and loan balances individually and collectively evaluated for impairment by type of loan as of or for the three months ended March 31, 2022 and 2021: Commercial Construction Commercial and industrial and land real estate Residential Consumer Total March 31, 2022 Allowance for loan losses Beginning balance $ 3,261 $ 175 $ 12,709 $ 1,536 $ 19 $ 17,700 Charge-offs — — (1) (6) (3) (10) Recoveries 3 — — — — 3 Provision for (reversal of) loan losses 235 (37) 264 (457) 2 7 Ending balance $ 3,499 $ 138 $ 12,972 $ 1,073 $ 18 $ 17,700 Allowance for loan losses by methodology: Loans individually evaluated for impairment $ 1,277 $ — $ 259 $ 128 $ — $ 1,664 Loans collectively evaluated for impairment 2,222 138 12,713 945 18 16,036 PCI loans — — — — — — Loans receivable by methodology: Individually evaluated for impairment $ 5,723 $ 36 $ 5,710 $ 1,759 $ — $ 13,228 Collectively evaluated for impairment 303,374 19,371 1,535,174 98,750 3,675 1,960,344 PCI loans 4,459 1,447 23,421 1,570 — 30,897 Total loans $ 313,556 $ 20,854 $ 1,564,305 $ 102,079 $ 3,675 $ 2,004,469 Commercial Construction Commercial and industrial and land real estate Residential Consumer Total March 31, 2021 Allowance for loan losses Beginning balance $ 4,042 $ 378 $ 11,211 $ 1,856 $ 13 $ 17,500 Charge-offs (2) — — — — (2) Recoveries 2 — — — — 2 Provision for (reversal of) loan losses (223) (113) 36 291 9 — Ending balance $ 3,819 $ 265 $ 11,247 $ 2,147 $ 22 $ 17,500 Allowance for loan losses by methodology: Loans individually evaluated for impairment $ 490 $ — $ 116 $ 20 $ — $ 626 Loans collectively evaluated for impairment 3,218 265 11,131 2,127 22 16,763 PCI loans 111 — — — — 111 Loans receivable by methodology: Individually evaluated for impairment $ 978 $ 36 $ 6,079 $ 3,524 $ — $ 10,617 Collectively evaluated for impairment 322,330 14,539 1,078,547 141,909 6,832 1,564,157 PCI loans 638 48 11,135 2,252 — 14,073 Total loans $ 323,946 $ 14,623 $ 1,095,761 $ 147,685 $ 6,832 $ 1,588,847 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 8 – PREMISES AND EQUIPMENT Premises and equipment consisted of the following at the dates indicated: March 31, December 31, 2022 2021 Premises owned $ 11,115 $ 11,015 Leasehold improvements 2,619 2,608 Furniture, fixtures and equipment 6,462 6,201 Less accumulated depreciation and amortization (5,939) (5,454) Total premises and equipment, net $ 14,257 $ 14,370 Depreciation and amortization included in occupancy and equipment expense totaled $507,000 and $502,000 for the three months ended March 31, 2022 and 2021, respectively. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 9 – LEASES The Company leases 19 branches under noncancelable operating leases. These leases expire on various dates through 2030. The Company’s leases often have an option to renew one or more times, at the Company’s discretion, following the expiration of the initial term. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company uses the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. The below maturity schedule represents the undiscounted lease payments for the five-year period and thereafter as of March 31, 2022: For remainder of 2022 $ 3,832 2023 3,466 2024 2,952 2025 2,039 2026 1,296 Thereafter 2,563 Total undiscounted cash flows 16,148 Less: interest (1,971) Present value of lease payments $ 14,177 The following table presents the weighted average lease term and discount rate at the date indicated: March 31, 2022 Weighted-average remaining lease term 5.1 years Weighted-average discount rate 2.41 % |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 10 – GOODWILL AND INTANGIBLE ASSETS Goodwill is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and the liabilities assumed as of the acquisition date. Goodwill and other intangible assets are assessed for impairment annually or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible represents the estimated future benefit of deposits related to an acquisition and is booked separately from the related deposits and amortized over an estimated useful live of seven Goodwill The Company’s policy is to assess goodwill for impairment at the reporting unit level on an annual basis or between annual assessments if a triggering event occurs or circumstances change that would more likely than not Changes in the Company's goodwill at March 31, 2022 and December 31, 2021 are as follows: March 31, December 31, 2022 2021 Balance at beginning of period $ 38,838 $ 38,838 Acquired goodwill — — Impairment — — Balance at end of period $ 38,838 $ 38,838 Core Deposit Intangible Changes in the Company’s core deposit intangible at March 31, 2022 and December 31, 2021 were as follows: March 31, December 31, 2022 2021 Balance at beginning of period $ 6,489 $ 8,302 Additions 756 — Less amortization (495) (1,813) Balance at end of period $ 6,750 $ 6,489 Estimated annual amortization expense at March 31, 2022 is as follows: For remainder of 2022 $ 1,549 2023 1,286 2024 1,222 2025 948 2026 455 Thereafter 1,290 Total $ 6,750 |
INTEREST RECEIVABLE AND OTHER A
INTEREST RECEIVABLE AND OTHER ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
INTEREST RECEIVABLE AND OTHER ASSETS | NOTE 11 – INTEREST RECEIVABLE AND OTHER ASSETS The Company’s interest receivable and other assets at the dates indicated consisted of the following: March 31, December 31, 2022 2021 Tax assets, net $ 11,391 $ 10,573 Accrued interest receivable 8,262 5,929 Investment in Small Business Investment Company ("SBIC") fund 4,929 4,731 Investment in Community Reinvestment Act fund 2,000 — Prepaid assets 1,076 1,598 Servicing assets 2,365 1,947 Investment in Low Income Housing Tax Credit ("LIHTC") partnerships, net 2,981 3,129 Investment in statutory trusts 485 484 Other assets 5,644 1,469 Total $ 39,133 $ 29,860 |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 12 – DEPOSITS The Company’s deposits consisted of the following at the dates indicated: March 31, December 31, 2022 2021 Demand deposits $ 783,110 $ 710,137 NOW accounts and savings 476,077 484,847 Money market 760,359 568,094 Time deposits 310,849 222,161 Total $ 2,330,395 $ 1,985,239 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 13 - BORROWINGS Other borrowings The Company has Federal Funds lines with four corresponding banks. Cumulative available commitments totaled $65.0 million at both March 31, 2022 and December 31, 2021. There were no amounts outstanding under these facilities at both March 31, 2022 and December 31, 2021. Junior subordinated deferrable interest debentures – In connection with its previous acquisitions, the Company acquired junior subordinated deferrable interest debentures, totaling $8.4 net of mark-to-market adjustments March 31, 2022 with a weighted average interest rate of 3.44% , compared to $8.4 million with a weighted average rate of 2.79% at December 31, 2021 . The junior subordinated deferrable interest debentures have a stated maturity term of 30 years . Subordinated debt the aggregate principal amount of the Notes. The offering of the Notes closed on August 10, 2020. The Notes initially bears a fixed interest rate of 5.25% per year. Commencing on September 15, 2025, the interest rate on the Notes resets quarterly to the three-month Secured Overnight Financing rate plus a spread of 521 basis points (5.21%), payable quarterly in arrears. Interest on the Notes is payable semi-annually on March 15 and September 15 of each year through September 15, 2025 and quarterly thereafter on March 15, June 15, September 15 and December 15 of each year through the maturity date or early redemption date. The Company, at its option, may redeem the Notes, in whole or in part, on any interest payment date on or after September 15, 2025, without a premium. At March 31, 2022 and December 31, 2021, the Company had outstanding Notes, net of cost to issue, totaling $63.6 million and $63.5 million, respectively. |
INTEREST PAYABLE AND OTHER LIAB
INTEREST PAYABLE AND OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
INTEREST PAYABLE AND OTHER LIABILITIES | NOTE 14 – INTEREST PAYABLE AND OTHER LIABILITIES The Company’s interest payable and other liabilities at the dates indicated consisted of the following: March 31, December 31, 2022 2021 Accrued expenses $ 5,634 $ 7,339 Accounts payable 412 506 Reserve for unfunded commitments 315 315 Accrued interest payable 344 1,180 Other liabilities 3,557 4,516 Total $ 10,262 $ 13,856 |
OTHER EXPENSES
OTHER EXPENSES | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSES | NOTE 15 – OTHER EXPENSES The Company’s other expenses for the periods indicated consisted of the following: Three months ended March 31, 2022 2021 Professional fees $ 1,306 $ 434 Core deposit premium amortization 495 454 Marketing and promotions 296 64 Stationery and supplies 92 107 Insurance (including FDIC premiums) 231 210 Communication and postage 224 214 Loan default related expense 39 14 Director fees 84 76 Bank service charges 66 56 Courier expense 175 176 Other 304 96 Total $ 3,312 $ 1,901 |
EQUITY INCENTIVE PLANS
EQUITY INCENTIVE PLANS | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY INCENTIVE PLANS | NOTE 16 – EQUITY INCENTIVE PLANS Equity Incentive Plans 2017 Omnibus Equity Incentive Plan The shareholders approved the Omnibus Equity Incentive Plan (“2017 Plan”) in November 2017. The 2017 Plan provides for the awarding by the Company’s Board of Directors of equity incentive awards to employees and non-employee directors. An equity incentive award may be an option, stock appreciation rights, restricted stock units, stock award, other stock-based award or performance award granted under the 2017 Plan. Factors considered by the Board in awarding equity incentives to officers and employees include the performance of the Company, the employee’s or officer’s job performance, the importance of his or her position, and his or her contribution to the organization’s goals for the award period. Generally, awards are restricted and have a vesting period of no longer than ten years. Subject to adjustment as provided in the 2017 Plan, the maximum number of shares of common stock that may be delivered pursuant to awards granted under the 2017 Plan is 450,000 . The 2017 Plan provides for an annual restricted stock grant limits to officers, employees and directors. The annual stock grant limit per person for officers and employees is the lessor of 50,000 shares or a value of $2.0 million, and per person for directors, the maximum is 25,000 shares. All unvested restricted shares outstanding vest in the event of a change in control of the Company. Awarded shares of restricted stock vest over (i) a one-year period following the date of grant, in the case of the non-employee directors, and (ii) a three-year or five-year period following the date of grant, with the initial vesting occurring on the one-year anniversary of the date of grant, in the case of the executive officers. As of March 31, 2022, a total of 95,381 shares were available for future issuance under the 2017 Plan. 2014 Omnibus Equity Incentive Plan In 2014, the shareholders approved the Omnibus Equity Incentive Plan (the “2014 Plan”). A total of 148,962 equity incentive awards were granted under the 2014 Plan. The awards are shares of restricted stock and have a vesting period of one The Company recognizes compensation expense for the restricted stock awards based on the fair value of the shares at the award date. For the three months ended March 31, 2022 and 2021, total compensation expense for these plans was $324,000 and $413,000, respectively. As of March 31, 2022, there was $1.5 million of total unrecognized compensation cost related to non-vested shares granted as restricted stock awards. The cost is expected to be recognized over the remaining weighted-average vesting period of approximately three years. The following table provides the restricted stock grant activity for the periods indicated: 2022 2021 Weighted-average Weighted-average grant date grant date Shares fair value Shares fair value Non-vested at January 1, 139,275 $ 16.29 204,515 $ 17.71 Granted 22,473 18.79 24,187 15.17 Vested (15,560) 18.34 (14,164) 18.50 Forfeited (532) 18.79 — — Non-Vested, at March 31, 145,656 $ 16.45 214,538 $ 16.06 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 17 – FAIR VALUE MEASUREMENT ASC Topic 820, “Fair Value Measurement,” defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: Level 1 Level 2 Level 3 We use fair value to measure certain assets and liabilities on a recurring basis, primarily securities available-for-sale. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period and such measurements are therefore considered “nonrecurring” for purposes of disclosing our fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for impaired loans and other real estate owned and also to record impairment on certain assets, such as goodwill, core deposit intangible, and other long-lived assets. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the lowest level of inputs that is significant to the measurement is used to determine the hierarchy for the entire asset or liability. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with our quarterly valuation process. There were no transfers between levels during 2022 or 2021. The following assets are measured at fair value on a recurring basis as of the dates indicated: Total Level 1 Level 2 Level 3 March 31, 2022 U.S. Government Agencies $ 1,508 $ — $ 1,508 $ — Municipal securities 22,531 — 22,531 — Mortgage-backed securities 35,294 — 35,294 — Collateralized mortgage obligations 29,421 — 29,421 — SBA securities 5,652 — 5,652 — Corporate bonds 73,569 — 73,569 — Equity securities 16,698 16,698 — — Total $ 184,673 $ 16,698 $ 167,975 $ — Total Level 1 Level 2 Level 3 December 31, 2021 U.S. Government Agencies $ 1,510 $ — $ 1,510 $ — Municipal securities 24,123 — 24,123 — Mortgage-backed securities 35,096 — 35,096 — Collateralized mortgage obligations 27,506 — 27,506 — SBA securities 6,088 — 6,088 — Corporate bonds 61,335 — 61,335 — Equity securities 18,777 18,777 — — Total $ 174,435 $ 18,777 $ 155,658 $ — The following assets are measured at fair value on a nonrecurring basis as of the dates indicated: Total Level 1 Level 2 Level 3 March 31, 2022 Performing impaired loans $ 794 $ — $ — $ 794 Nonperforming impaired loans 12,434 — — 12,434 OREO 21 — — 21 Total $ 13,249 $ — $ — $ 13,249 Total Level 1 Level 2 Level 3 December 31, 2021 Performing impaired loans $ 805 $ — $ — $ 805 Nonperforming impaired loans 6,888 — — 6,888 OREO 21 — — 21 Total $ 7,714 $ — $ — $ 7,714 The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise and liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. When the fair value of the collateral is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value or the appraised value contains a significant assumption and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. The Company records OREO at fair value on a nonrecurring basis based on the collateral value of the property. When the fair value of the collateral is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the OREO as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value or the appraised value contains a significant assumption, and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also incorporates assumptions regarding market trends or other relevant factors and selling and commission costs ranging from 5% to 7%. Such adjustments and assumptions are typically significant and result in a Level 3 classification of the inputs for determining fair value. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 18 – FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value disclosure for financial instruments: Carrying Fair Fair value measurements amount value Level 1 Level 2 Level 3 March 31, 2022 Financial assets: Cash and cash equivalents $ 427,199 $ 427,199 $ 427,199 $ — $ — Interest bearing deposits in banks 3,336 3,336 3,336 — — Investment securities available-for-sale 167,975 167,975 — 167,975 — Equity securities 16,698 16,698 16,698 — — Investment in FHLB and FRB Stock 19,226 19,226 19,226 — — Loans held for sale 970 970 — 970 — Loans, net 1,986,228 1,991,792 — — 1,991,792 Accrued interest receivable 8,262 8,262 — 8,262 — Financial liabilities: Deposits 2,330,395 2,332,443 — 2,332,443 — Junior subordinated deferrable interest debentures, net 8,423 8,640 — — 8,640 Subordinated debt, net 63,584 63,584 — 63,584 — Accrued interest payable 344 344 — 344 — Off-balance sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit 89,054 88,739 — — 88,739 Carrying Fair Fair value measurements amount value Level 1 Level 2 Level 3 December 31, 2021 Financial assets: Cash and cash equivalents $ 379,687 $ 379,687 $ 379,687 $ — $ — Interest bearing deposits in banks 3,585 3,585 3,585 — — Investment securities available-for-sale 155,658 155,658 — 155,658 — Equity securities 18,777 18,777 18,777 Investment in FHLB and FRB Stock 16,035 16,035 16,035 — — Loans held for sale 6,470 6,470 — 6,470 — Loans, net 1,647,190 1,659,811 — — 1,659,811 Accrued interest receivable 5,929 5,929 — 5,929 — Financial liabilities: Deposits 1,985,239 1,986,651 — 1,986,651 — Junior subordinated deferrable interest debentures, net 8,403 8,612 — — 8,612 Subordinated debt, net 63,542 63,542 — 63,542 — Accrued interest payable 1,180 1,180 — 1,180 — Off-balance sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit 104,139 103,824 — — 103,824 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 – COMMITMENTS AND CONTINGENCIES Lending and Letter of Credit Commitments We operate in a highly regulated environment. From time to time we are a party to various claims and litigation matters incidental to the conduct of our business. We are not presently party to any legal proceedings where we believe the resolution would have a material adverse effect on our business, financial condition, or results of operations. Nevertheless, given the nature, scope and complexity of the extensive legal and regulatory landscape applicable to our business (including laws and regulations governing consumer protection, fair lending, fair labor, privacy, information security and anti-money laundering and anti-terrorism laws), we, like all banking organizations, are subject to heightened legal and regulatory compliance and litigation risk. In the normal course of business, the Company enters into various commitments to extend credit, which are not reflected in the financial statements. These commitments consist of the undisbursed balance on personal, commercial lines, including commercial real estate secured lines of credit, and of undisbursed funds on construction and development loans. The Company also issues standby letter of credit commitments, primarily for the third-party performance obligations of clients. The following table presents a summary of commitments described above as of the dates indicated: March 31, December 31, 2022 2021 Commitments to extend credit $ 86,292 $ 100,686 Standby letters of credit 2,762 3,453 Total commitments $ 89,054 $ 104,139 Commitments generally have fixed expiration dates or other termination clauses. The actual liquidity needs or the credit risk that the Company will experience will be lower than the contractual amount of commitments to extend credit because a significant portion of these commitments are expected to expire without being drawn upon. The commitments are generally variable rate and include unfunded home equity lines of credit, commercial real estate construction where disbursement is made over the course of construction, commercial revolving lines of credit, and unsecured personal lines of credit. The Company’s outstanding loan commitments are made using the same underwriting standards as comparable outstanding loans. The reserve associated with these commitments included in interest payable and other liabilities on the consolidated balance sheets was Commercial Real Estate Concentrations At March 31, 2022 and December 31, 2021, in management’s judgment, a concentration of loans existed in commercial real estate related loans. The Company’s commercial real estate loans are secured by owner-occupied and non-owner occupied commercial real estate and multifamily properties. Although management believes that loans within these concentrations have no more than the normal risk of collectability, a decline in the performance of the economy in general or a decline in real estate value in the Company’s primary market areas in particular, could have an adverse impact on collectability Other Assets The Company has commitments to fund investments in LIHTC partnerships and an SBIC fund. At March 31, 2022, the remaining commitments to the LIHTC partnerships and the SBIC fund were approximately $3.2 million and $122,000, respectively. At December 31, 2021, the remaining commitments to the LIHTC partnerships and the SBIC fund were $2.3 million and $122,000 , respectively. Deposits At March 31, 2022, approximately $265.9 million, or 11.4%, of the Company's deposits were derived from its top ten depositors. At December 31, 2021, approximately $198.6 million, or 10.0%, of the Company's deposits were derived from its top ten depositors. Local Agency Deposits and Other Advances In the normal course of business, the Company accepts deposits from local agencies. The Company is required to provide collateral for certain local agency deposits in the states of California, Colorado, New Mexico and Washington. At both March 31, 2022 and December 31, 2021, the FHLB issued letters of credit on behalf of the Company totaling $42.0 million as collateral for local agency deposits. |
RESTATEMENT OF THE CONSOLIDAT_2
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Prior Period Adjustment [Abstract] | |
Schedule of effect of the restatement on financial statements | The tables below show the effects of the restatement on the Company’s condensed consolidated balance sheets, condensed consolidated statements of income, condensed consolidated statements of comprehensive loss, condensed consolidated statements of changes in shareholders’ equity, and condensed consolidated statement of cash flows as of and for the quarter ended March 31, 2022 (in thousands, except for per share data): March 31, 2022 Consolidated Balance Sheet (As Previously Reported) Adjustments (As Restated) ASSETS Cash and due from banks $ 35,532 $ — $ 35,532 Federal funds sold 391,667 — 391,667 Cash and cash equivalents 427,199 — 427,199 Interest bearing deposits in banks 3,336 — 3,336 Investment securities available-for-sale 184,673 (16,698) 167,975 Equity securities — 16,698 16,698 Federal Home Loan Bank ("FHLB") stock, at par 10,679 — 10,679 Federal Reserve Bank ("FRB") stock, at par 8,547 — 8,547 Loans held for sale 970 — 970 Loans, net of allowance for loan losses of $17,700 at March 31, 2022 and $17,700 December 31, 2021 1,986,228 — 1,986,228 Premises and equipment, net 14,257 — 14,257 Other real estate owned ("OREO") 21 — 21 Core deposit intangible, net 6,750 — 6,750 Cash surrender value of bank owned life insurance ("BOLI") policies, net 21,736 — 21,736 Right-of-use assets ("ROU"), net 13,645 — 13,645 Goodwill 38,838 — 38,838 Interest receivable and other assets 39,133 — 39,133 Total assets $ 2,756,012 $ — $ 2,756,012 LIABILITIES AND SHAREHOLDERS’ EQUITY Noninterest and interest bearing deposits $ 2,330,395 $ — $ 2,330,395 Junior subordinated deferrable interest debentures, net 8,423 — 8,423 Subordinated debt, net 63,584 — 63,584 Salary continuation plan 4,517 — 4,517 Lease liabilities 14,177 — 14,177 Interest payable and other liabilities 10,262 — 10,262 Total liabilities 2,431,358 — 2,431,358 Commitments and contingencies (Note 19) Shareholders' equity Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding at both March 31, 2022 and December 31, 2021 — — — Common stock, no par value; 100,000,000 shares authorized; 13,677,729 and 10,680,386 shares issued outstanding 220,294 — 220,294 Additional paid in capital 287 — 287 Accumulated other comprehensive loss, net of tax (4,786) 1,259 (3,527) Retained earnings 108,859 (1,259) 107,600 Total shareholders’ equity 324,654 — 324,654 Total liabilities and shareholders’ equity $ 2,756,012 $ — $ 2,756,012 Three months ended March 31, 2022 Consolidated Statement of Income (As Previously Reported) Adjustments (As Restated) Interest income: Loans, including fees $ 22,927 $ — $ 22,927 Investment securities and interest bearing deposits in banks 1,608 — 1,608 FHLB dividends 149 — 149 FRB dividends 121 — 121 Total interest and dividend income 24,805 — 24,805 Interest expense: Deposits 1,470 — 1,470 Subordinated debt 896 — 896 Other borrowings 86 — 86 Total interest expense 2,452 — 2,452 Net interest income 22,353 — 22,353 Provision for loan losses 7 — 7 Net interest income after provision for loan losses 22,346 — 22,346 Noninterest income: Gain on sale of loans 1,137 — 1,137 Loss on equity securities — (1,768) (1,768) Service charges and other fees 630 — 630 Loan servicing and other loan fees 574 — 574 Income on investment in Small Business Investment Company (“SBIC”) fund 197 — 197 Bargain purchase gain 1,665 — 1,665 Other income and fees 196 — 196 Total noninterest income 4,399 (1,768) 2,631 Noninterest expense: Salaries and employee benefits 10,310 — 10,310 Occupancy and equipment 2,426 — 2,426 Data processing 2,273 — 2,273 Other expense 3,312 — 3,312 Total noninterest expense 18,321 — 18,321 Income before provision for income taxes 8,424 (1,768) 6,656 Provision for income taxes 1,936 (509) 1,427 Net income $ 6,488 $ (1,259) $ 5,229 Earnings per common share: Basic earnings per common share $ 0.51 $ (0.10) $ 0.41 Weighted average shares outstanding 12,646,981 12,646,981 12,646,981 Three months ended March 31, 2022 Consolidated Statement of Comprehensive Loss (As Previously Reported) Adjustments (As Restated) Net income $ 6,488 $ (1,259) $ 5,229 Other comprehensive loss: Change in unrealized loss on available-for-sale securities (9,761) 1,768 (7,993) Deferred tax benefit 2,809 (509) 2,300 Other comprehensive loss, net of tax (6,952) 1,259 (5,693) Total comprehensive loss $ (464) $ — $ (464) Three months ended March 31, 2022 Consolidated Statement of Cash Flow Changes (As Previously Reported) Adjustments (As Restated) Cash flows from operating activities: Net income $ 6,488 (1,259) 5,229 Adjustments to reconcile net income to net cash provided by operating activities: Decrease in deferred tax assets 2,818 (509) 2,309 Loss on equity securities — 1,768 1,768 Net cash provided by operating activities 2,846 — 2,846 Non-cash investing and financing activities: Change in unrealized loss on available-for-sale securities, net of tax $ (6,952) $ 1,259 $ (5,693) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of fair value of the assets acquired and liabilities assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed at the acquisition date: PEB Acquisition Date February 1, 2022 Fair value of assets: Cash and due from banks $ 5,350 Total cash and cash equivalents 5,350 Interest bearing deposits in banks 13,348 Investment securities available-for-sale 3 FHLB stock, at par 2,294 FRB stock, at par 942 Loans, net 412,851 Premises and equipment, net 221 Core deposit intangible 756 Deferred tax assets, net 1,192 Interest receivable and other assets 9,178 Total assets acquired 446,135 Liabilities: Deposits Noninterest bearing 60,006 Interest bearing 316,679 Total Deposits 376,685 Interest payable and other liabilities 3,370 Total liabilities assumed 380,055 Stock consideration 64,140 Cash consideration 275 Bargain purchase gain $ 1,665 The following table presents the net assets acquired and the estimated fair value adjustments, which resulted in bargain purchase gain at the acquisition date: PEB Acquisition Date February 1, 2022 Book value of net assets acquired $ 61,469 Fair value adjustments: Loans, net 5,840 Premises and equipment, net 26 Core deposit intangible 756 Time deposits (869) Reserve for unfunded commitments 283 Write-up right-of-use asset 439 Total purchase accounting adjustments 6,475 Tax effect of purchase accounting adjustments at 27.9% (1,864) Fair value of assets acquired 66,080 Value of stock issued/cash paid for stock options 64,415 Bargain purchase gain $ (1,665) |
Schedule of unaudited pro forma net interest income, net income and earnings per share | Unaudited pro forma net interest income, net income and earnings per share are presented below: Three Months Ended March 31, 2022 (As Restated) 2021 Net interest income $ 23,205 $ 24,271 Net income 1,869 6,084 Basic earnings per share $ 0.14 $ 0.42 Diluted earnings per share 0.14 0.42 |
Schedule of acquisition expenses | Severance expense $ 556 Occupancy expense 375 Data processing 1,073 Professional fees 724 Other expenses 347 Total $ 3,075 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair values of securities available-for-sale | Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value March 31, 2022 (As Restated) U.S. Government Agencies $ 1,509 $ — $ (1) $ 1,508 Municipal securities 23,541 56 (1,066) 22,531 Mortgage-backed securities 36,445 323 (1,474) 35,294 Collateralized mortgage obligations 30,602 96 (1,277) 29,421 SBA securities 5,680 36 (64) 5,652 Corporate bonds 75,150 356 (1,937) 73,569 Total $ 172,927 $ 867 $ (5,819) $ 167,975 Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value December 31, 2021 U.S. Government Agencies $ 1,510 $ — $ — $ 1,510 Municipal securities 23,646 493 (16) 24,123 Mortgage-backed securities 33,973 1,333 (210) 35,096 Collateralized mortgage obligations 27,228 436 (158) 27,506 SBA securities 6,055 53 (20) 6,088 Corporate bonds 60,650 851 (166) 61,335 Total $ 153,062 $ 3,166 $ (570) $ 155,658 |
Schedule of available-for-sale securities, continuous unrealized loss position, fair value | Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized fair value loss fair value loss fair value loss March 31, 2022 (As Restated) U.S. Government Agencies $ 1,508 $ (1) $ — $ — $ 1,508 $ (1) Municipal securities 14,198 (1,066) — — 14,198 (1,066) Mortgage-backed securities 18,877 (1,076) 2,740 (398) 21,617 (1,474) Collateralized mortgage obligations 18,474 (1,092) 2,059 (185) 20,533 (1,277) SBA securities 1,194 (44) 976 (20) 2,170 (64) Corporate bonds 50,313 (1,937) — — 50,313 (1,937) Total $ 104,564 $ (5,216) $ 5,775 $ (603) $ 110,339 $ (5,819) Less than 12 months 12 months or more Total Estimated Unrealized Estimated Unrealized Estimated Unrealized fair value loss fair value loss fair value loss December 31, 2021 Municipal securities $ 3,932 $ (16) $ — $ — $ 3,932 $ (16) Mortgage-backed securities 2,954 (111) 2,133 (99) 5,087 (210) Collateralized mortgage obligations 9,236 (108) 1,605 (50) 10,841 (158) SBA securities 134 — 1,058 (20) 1,192 (20) Corporate bonds 23,084 (166) — — 23,084 (166) Total $ 39,340 $ (401) $ 4,796 $ (169) $ 44,136 $ (570) |
Schedule of investments classified by contractual maturity date | March 31, 2022 December 31, 2021 Amortized Estimated Amortized Estimated cost fair value cost fair value (As Restated) (As Restated) Available-for-sale Due in one year or less $ 861 $ 861 $ 862 $ 865 Due after one through five years 23,297 23,229 23,519 24,173 Due after five years through ten years 88,707 85,952 79,116 79,993 Due after ten years 60,062 57,933 49,565 50,627 Total $ 172,927 $ 167,975 $ 153,062 $ 155,658 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of accounts, notes, loans and financing receivable | The Company’s loan portfolio at the dates indicated is summarized below: March 31, December 31, 2022 2021 Commercial and industrial $ 313,556 $ 230,177 Construction and land 20,854 13,371 Commercial real estate 1,564,305 1,299,684 Residential 102,079 118,423 Consumer 3,675 5,138 Total loans 2,004,469 1,666,793 Net deferred loan fees (541) (1,903) Allowance for loan losses (17,700) (17,700) Net loans $ 1,986,228 $ 1,647,190 |
Schedule of impaired financing receivables | The Company’s total impaired loans, including nonaccrual loans TDR loans, and accreting purchase credit impaired (“PCI”) loans that have experienced post-acquisition declines in cash flows expected to be collected are summarized as follows: Commercial Construction Commercial and industrial and land real estate Residential Consumer Total March 31, 2022 Recorded investment in impaired loans: With no specific allowance recorded $ 184 $ 36 $ 5,451 $ 1,632 $ — $ 7,303 With a specific allowance recorded 5,538 — 259 128 — 5,925 Total recorded investment in impaired loans $ 5,722 $ 36 $ 5,710 $ 1,760 $ — $ 13,228 Specific allowance on impaired loans $ 1,277 $ — $ 259 $ 10 $ — 1,546 December 31, 2021 Recorded investment in impaired loans: With no specific allowance recorded $ 112 $ 36 $ 5,015 $ 1,441 $ — $ 6,604 With a specific allowance recorded 681 — 262 146 — 1,089 Total recorded investment in impaired loans $ 793 $ 36 $ 5,277 $ 1,587 $ — $ 7,693 Specific allowance on impaired loans $ 681 $ — $ 224 $ 25 $ — $ 930 Three months ended March 31, 2022 Average recorded investment in impaired loans $ 3,237 $ 812 $ 5,493 $ 898 $ — $ 10,440 Interest recognized 1 — 6 8 — 15 Three months ended March 31, 2021 Average recorded investment in impaired loans 915 36 6,073 2,628 — 9,652 Interest recognized 1 — 58 4 — 63 |
Schedule of debtor troubled debt restructuring, current period | A summary of TDR loans by type of concession and type of loan, as of the periods indicated: Number of Rate Term Rate & term loans modification modification modification Total March 31, 2022 Commercial and industrial 3 $ — $ 4,881 $ — $ 4,881 Construction and land — — — — — Commercial real estate 4 — 2,191 — 2,191 Residential 1 — 128 — 128 Consumer — — — — — Total 8 $ — $ 7,200 $ — $ 7,200 Number of Rate Term Rate & term loans modification modification modification Total March 31, 2021 Commercial and industrial 2 $ — $ 29 $ — $ 29 Construction and land — — — — — Commercial real estate 3 — 1,422 — 1,422 Residential 1 — 150 — 150 Consumer — — — — — Total 6 $ — $ 1,601 $ — $ 1,601 |
Schedule of financing receivable credit quality indicators | The following tables present the internally assigned risk grade by class of loans at the dates indicated: Special Pass Mention Substandard Doubtful Total March 31, 2022 Commercial and industrial $ 300,516 $ 3,740 $ 9,300 $ — $ 313,556 Construction and land 17,830 2,988 36 — 20,854 Commercial real estate 1,505,699 53,433 5,173 — 1,564,305 Residential 98,742 1,527 1,810 — 102,079 Consumer 3,653 — 22 — 3,675 Total $ 1,926,440 $ 61,688 $ 16,341 $ — $ 2,004,469 Special Pass Mention Substandard Doubtful Total December 31, 2021 Commercial and industrial $ 216,611 $ 9,178 $ 4,388 $ — $ 230,177 Construction and land 13,264 71 36 — 13,371 Commercial real estate 1,264,269 28,438 6,977 — 1,299,684 Residential 115,534 1,250 1,639 — 118,423 Consumer 5,116 — 22 — 5,138 Total $ 1,614,794 $ 38,937 $ 13,062 $ — $ 1,666,793 |
Schedule of past due financing receivables | The following tables provide an aging of the Company’s loans receivable as of the dates indicated: Recorded 90 Days investment > 30–59 Days 60–89 Days or more Total Total loans 90 days and past due past due past due past due Current PCI loans receivable accruing March 31, 2022 Commercial and industrial $ 5,828 $ 236 $ 653 $ 6,717 $ 302,380 $ 4,459 $ 313,556 $ — Construction and land 337 — 36 373 19,034 1,447 20,854 — Commercial real estate 109 697 3,119 3,925 1,536,959 23,421 1,564,305 — Residential 729 321 1,002 2,052 98,457 1,570 102,079 117 Consumer — 221 — 221 3,454 — 3,675 — Total $ 7,003 $ 1,475 $ 4,810 $ 13,288 $ 1,960,284 $ 30,897 $ 2,004,469 $ 117 Recorded 90 Days investment > 30–59 Days 60–89 Days or more Total Total loans 90 days and past due past due past due past due Current PCI loans receivable accruing December 31, 2021 Commercial and industrial $ 275 $ 10 $ 606 $ 891 $ 228,980 $ 306 $ 230,177 $ — Construction and land — 338 36 374 12,997 — 13,371 — Commercial real estate 196 410 2,621 3,227 1,286,311 10,146 1,299,684 — Residential 1,442 21 1,031 2,494 114,162 1,767 118,423 — Consumer 3 — — 3 5,135 — 5,138 — Total $ 1,916 $ 779 $ 4,294 $ 6,989 $ 1,647,585 $ 12,219 $ 1,666,793 $ — |
Schedule of purchase credit impaired loans | The unpaid principal balance and carrying value of the Company’s PCI loans at the dates indicated are as follows: March 31, 2022 December 31, 2021 Unpaid Unpaid principal Carrying principal Carrying balance value balance value Commercial and industrial $ 5,587 $ 4,459 $ 546 $ 306 Construction and land 1,667 1,447 — — Commercial real estate 25,751 23,421 11,519 10,146 Residential 1,943 1,570 2,202 1,767 Total $ 34,948 $ 30,897 $ 14,267 $ 12,219 |
Schedule of changes in the accretable yield of PCI loans | Three months ended March 31, 2022 2021 Balance at beginning of period $ 508 $ 383 Additions 1,277 — Removals (48) (65) Accretion (50) (230) Balance at end of period $ 1,687 $ 88 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Allowance for Loan Losses [Abstract] | |
Schedule of Allowance for credit losses for loan losses | The following tables summarize the Company’s allowance for loan losses and loan balances individually and collectively evaluated for impairment by type of loan as of or for the three months ended March 31, 2022 and 2021: Commercial Construction Commercial and industrial and land real estate Residential Consumer Total March 31, 2022 Allowance for loan losses Beginning balance $ 3,261 $ 175 $ 12,709 $ 1,536 $ 19 $ 17,700 Charge-offs — — (1) (6) (3) (10) Recoveries 3 — — — — 3 Provision for (reversal of) loan losses 235 (37) 264 (457) 2 7 Ending balance $ 3,499 $ 138 $ 12,972 $ 1,073 $ 18 $ 17,700 Allowance for loan losses by methodology: Loans individually evaluated for impairment $ 1,277 $ — $ 259 $ 128 $ — $ 1,664 Loans collectively evaluated for impairment 2,222 138 12,713 945 18 16,036 PCI loans — — — — — — Loans receivable by methodology: Individually evaluated for impairment $ 5,723 $ 36 $ 5,710 $ 1,759 $ — $ 13,228 Collectively evaluated for impairment 303,374 19,371 1,535,174 98,750 3,675 1,960,344 PCI loans 4,459 1,447 23,421 1,570 — 30,897 Total loans $ 313,556 $ 20,854 $ 1,564,305 $ 102,079 $ 3,675 $ 2,004,469 Commercial Construction Commercial and industrial and land real estate Residential Consumer Total March 31, 2021 Allowance for loan losses Beginning balance $ 4,042 $ 378 $ 11,211 $ 1,856 $ 13 $ 17,500 Charge-offs (2) — — — — (2) Recoveries 2 — — — — 2 Provision for (reversal of) loan losses (223) (113) 36 291 9 — Ending balance $ 3,819 $ 265 $ 11,247 $ 2,147 $ 22 $ 17,500 Allowance for loan losses by methodology: Loans individually evaluated for impairment $ 490 $ — $ 116 $ 20 $ — $ 626 Loans collectively evaluated for impairment 3,218 265 11,131 2,127 22 16,763 PCI loans 111 — — — — 111 Loans receivable by methodology: Individually evaluated for impairment $ 978 $ 36 $ 6,079 $ 3,524 $ — $ 10,617 Collectively evaluated for impairment 322,330 14,539 1,078,547 141,909 6,832 1,564,157 PCI loans 638 48 11,135 2,252 — 14,073 Total loans $ 323,946 $ 14,623 $ 1,095,761 $ 147,685 $ 6,832 $ 1,588,847 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | Premises and equipment consisted of the following at the dates indicated: March 31, December 31, 2022 2021 Premises owned $ 11,115 $ 11,015 Leasehold improvements 2,619 2,608 Furniture, fixtures and equipment 6,462 6,201 Less accumulated depreciation and amortization (5,939) (5,454) Total premises and equipment, net $ 14,257 $ 14,370 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of maturity of undiscounted lease payments | For remainder of 2022 $ 3,832 2023 3,466 2024 2,952 2025 2,039 2026 1,296 Thereafter 2,563 Total undiscounted cash flows 16,148 Less: interest (1,971) Present value of lease payments $ 14,177 |
Schedule of weighted average operating lease term and discount rate | March 31, 2022 Weighted-average remaining lease term 5.1 years Weighted-average discount rate 2.41 % |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of company's goodwill | March 31, December 31, 2022 2021 Balance at beginning of period $ 38,838 $ 38,838 Acquired goodwill — — Impairment — — Balance at end of period $ 38,838 $ 38,838 |
Schedule of finite-lived intangible assets | March 31, December 31, 2022 2021 Balance at beginning of period $ 6,489 $ 8,302 Additions 756 — Less amortization (495) (1,813) Balance at end of period $ 6,750 $ 6,489 |
Schedule of estimated core deposit intangible amortization | For remainder of 2022 $ 1,549 2023 1,286 2024 1,222 2025 948 2026 455 Thereafter 1,290 Total $ 6,750 |
INTEREST RECEIVABLE AND OTHER_2
INTEREST RECEIVABLE AND OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Interest receivable and other assets | The Company’s interest receivable and other assets at the dates indicated consisted of the following: March 31, December 31, 2022 2021 Tax assets, net $ 11,391 $ 10,573 Accrued interest receivable 8,262 5,929 Investment in Small Business Investment Company ("SBIC") fund 4,929 4,731 Investment in Community Reinvestment Act fund 2,000 — Prepaid assets 1,076 1,598 Servicing assets 2,365 1,947 Investment in Low Income Housing Tax Credit ("LIHTC") partnerships, net 2,981 3,129 Investment in statutory trusts 485 484 Other assets 5,644 1,469 Total $ 39,133 $ 29,860 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Deposits | The Company’s deposits consisted of the following at the dates indicated: March 31, December 31, 2022 2021 Demand deposits $ 783,110 $ 710,137 NOW accounts and savings 476,077 484,847 Money market 760,359 568,094 Time deposits 310,849 222,161 Total $ 2,330,395 $ 1,985,239 |
INTEREST PAYABLE AND OTHER LI_2
INTEREST PAYABLE AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of interest payable and other liabilities | March 31, December 31, 2022 2021 Accrued expenses $ 5,634 $ 7,339 Accounts payable 412 506 Reserve for unfunded commitments 315 315 Accrued interest payable 344 1,180 Other liabilities 3,557 4,516 Total $ 10,262 $ 13,856 |
OTHER EXPENSES (Tables)
OTHER EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of other expenses | The Company’s other expenses for the periods indicated consisted of the following: Three months ended March 31, 2022 2021 Professional fees $ 1,306 $ 434 Core deposit premium amortization 495 454 Marketing and promotions 296 64 Stationery and supplies 92 107 Insurance (including FDIC premiums) 231 210 Communication and postage 224 214 Loan default related expense 39 14 Director fees 84 76 Bank service charges 66 56 Courier expense 175 176 Other 304 96 Total $ 3,312 $ 1,901 |
EQUITY INCENTIVE PLANS (Tables)
EQUITY INCENTIVE PLANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of nonvested restricted stock units activity | The following table provides the restricted stock grant activity for the periods indicated: 2022 2021 Weighted-average Weighted-average grant date grant date Shares fair value Shares fair value Non-vested at January 1, 139,275 $ 16.29 204,515 $ 17.71 Granted 22,473 18.79 24,187 15.17 Vested (15,560) 18.34 (14,164) 18.50 Forfeited (532) 18.79 — — Non-Vested, at March 31, 145,656 $ 16.45 214,538 $ 16.06 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets measured on recurring basis | Total Level 1 Level 2 Level 3 March 31, 2022 U.S. Government Agencies $ 1,508 $ — $ 1,508 $ — Municipal securities 22,531 — 22,531 — Mortgage-backed securities 35,294 — 35,294 — Collateralized mortgage obligations 29,421 — 29,421 — SBA securities 5,652 — 5,652 — Corporate bonds 73,569 — 73,569 — Equity securities 16,698 16,698 — — Total $ 184,673 $ 16,698 $ 167,975 $ — Total Level 1 Level 2 Level 3 December 31, 2021 U.S. Government Agencies $ 1,510 $ — $ 1,510 $ — Municipal securities 24,123 — 24,123 — Mortgage-backed securities 35,096 — 35,096 — Collateralized mortgage obligations 27,506 — 27,506 — SBA securities 6,088 — 6,088 — Corporate bonds 61,335 — 61,335 — Equity securities 18,777 18,777 — — Total $ 174,435 $ 18,777 $ 155,658 $ — |
Schedule of fair value measurements, nonrecurring | Total Level 1 Level 2 Level 3 March 31, 2022 Performing impaired loans $ 794 $ — $ — $ 794 Nonperforming impaired loans 12,434 — — 12,434 OREO 21 — — 21 Total $ 13,249 $ — $ — $ 13,249 Total Level 1 Level 2 Level 3 December 31, 2021 Performing impaired loans $ 805 $ — $ — $ 805 Nonperforming impaired loans 6,888 — — 6,888 OREO 21 — — 21 Total $ 7,714 $ — $ — $ 7,714 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair value of financial instruments | Carrying Fair Fair value measurements amount value Level 1 Level 2 Level 3 March 31, 2022 Financial assets: Cash and cash equivalents $ 427,199 $ 427,199 $ 427,199 $ — $ — Interest bearing deposits in banks 3,336 3,336 3,336 — — Investment securities available-for-sale 167,975 167,975 — 167,975 — Equity securities 16,698 16,698 16,698 — — Investment in FHLB and FRB Stock 19,226 19,226 19,226 — — Loans held for sale 970 970 — 970 — Loans, net 1,986,228 1,991,792 — — 1,991,792 Accrued interest receivable 8,262 8,262 — 8,262 — Financial liabilities: Deposits 2,330,395 2,332,443 — 2,332,443 — Junior subordinated deferrable interest debentures, net 8,423 8,640 — — 8,640 Subordinated debt, net 63,584 63,584 — 63,584 — Accrued interest payable 344 344 — 344 — Off-balance sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit 89,054 88,739 — — 88,739 Carrying Fair Fair value measurements amount value Level 1 Level 2 Level 3 December 31, 2021 Financial assets: Cash and cash equivalents $ 379,687 $ 379,687 $ 379,687 $ — $ — Interest bearing deposits in banks 3,585 3,585 3,585 — — Investment securities available-for-sale 155,658 155,658 — 155,658 — Equity securities 18,777 18,777 18,777 Investment in FHLB and FRB Stock 16,035 16,035 16,035 — — Loans held for sale 6,470 6,470 — 6,470 — Loans, net 1,647,190 1,659,811 — — 1,659,811 Accrued interest receivable 5,929 5,929 — 5,929 — Financial liabilities: Deposits 1,985,239 1,986,651 — 1,986,651 — Junior subordinated deferrable interest debentures, net 8,403 8,612 — — 8,612 Subordinated debt, net 63,542 63,542 — 63,542 — Accrued interest payable 1,180 1,180 — 1,180 — Off-balance sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit 104,139 103,824 — — 103,824 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lending and letter of credit commitments | March 31, December 31, 2022 2021 Commitments to extend credit $ 86,292 $ 100,686 Standby letters of credit 2,762 3,453 Total commitments $ 89,054 $ 104,139 |
BASIS OF PRESENTATION - General
BASIS OF PRESENTATION - General Information (Details) | 3 Months Ended |
Mar. 31, 2022 location | |
Years of operation | 17 years |
Number of offices and branches | 34 |
CALIFORNIA | |
Number of offices and branches | 16 |
WASHINGTON | |
Number of offices and branches | 2 |
NEW MEXICO | |
Number of offices and branches | 5 |
COLORADO | |
Number of offices and branches | 11 |
BASIS OF PRESENTATION- Business
BASIS OF PRESENTATION- Business Combinations (Details) | Feb. 01, 2022 |
Pacific Enterprise Bancorp | |
Business Acquisition, Date of Acquisition [Abstract] | |
Business Acquisition, Effective Date of Acquisition | Feb. 01, 2022 |
ACCOUNTING GUIDANCE NOT YET E_2
ACCOUNTING GUIDANCE NOT YET EFFECTIVE AND ADOPTED ACCOUNTING GUIDANCE (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings | $ 107,600 | $ 103,056 |
Accounting Standards Update 2016-13 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | false | |
Accounting Standards Update 2020-04 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | false | |
Accounting Standards Update 2022-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | false |
RESTATEMENT OF THE CONSOLIDAT_3
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Prior Period Adjustment [Abstract] | |
Fair value of preferred equity securities | $ 1.3 |
RESTATEMENT OF THE CONSOLIDAT_4
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Cash and due from banks | $ 35,532 | $ 21,178 | ||
Federal funds sold | 391,667 | 358,509 | ||
Cash and cash equivalents | 427,199 | 379,687 | ||
Interest bearing deposits in banks | 3,336 | 3,585 | ||
Investment securities available-for-sale (AFS) | 167,975 | 155,658 | ||
Equity securities | 16,698 | 18,777 | ||
Federal Home Loan Bank ("FHLB") stock, at par | 10,679 | 8,385 | ||
Federal Reserve Bank ("FRB") stock, at par | 8,547 | 7,650 | ||
Loans held for sale | 970 | 6,470 | ||
Loans, net of allowance for credit losses | 1,986,228 | 1,647,190 | ||
Premises and equipment, net | 14,257 | 14,370 | ||
Other real estate owned ("OREO") | 21 | 21 | ||
Core deposit intangible, net | 6,750 | 6,489 | ||
Cash surrender value of bank owned life insurance ("BOLI") policies, net | 21,736 | 21,590 | ||
Right-of-use assets ("ROU"), net | 13,645 | 12,127 | ||
Goodwill | 38,838 | 38,838 | $ 38,838 | |
Interest receivable and other assets | 39,133 | 29,860 | ||
Total assets | 2,756,012 | 2,350,697 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Noninterest and interest bearing deposits | 2,330,395 | 1,985,239 | ||
Junior subordinated deferrable interest debentures, net | 8,423 | 8,403 | ||
Subordinated debt, net | 63,584 | 63,542 | ||
Salary continuation plan | 4,517 | 4,393 | ||
Lease liabilities | 14,177 | 12,657 | ||
Interest payable and other liabilities | 10,262 | 13,856 | ||
Total liabilities | 2,431,358 | 2,088,090 | ||
Commitments and contingencies (Note 19) | ||||
Shareholders' equity | ||||
Preferred stock | ||||
Common stock | 220,294 | 157,098 | ||
Additional paid in capital | 287 | 287 | ||
Accumulated other comprehensive loss, net of tax | (3,527) | 2,166 | ||
Retained earnings | 107,600 | 103,056 | ||
Total shareholders' equity | 324,654 | 262,607 | $ 254,550 | $ 252,591 |
Total liabilities and shareholders' equity | 2,756,012 | $ 2,350,697 | ||
Previously Reported | ||||
ASSETS | ||||
Cash and due from banks | 35,532 | |||
Federal funds sold | 391,667 | |||
Cash and cash equivalents | 427,199 | |||
Interest bearing deposits in banks | 3,336 | |||
Investment securities available-for-sale (AFS) | 184,673 | |||
Federal Home Loan Bank ("FHLB") stock, at par | 10,679 | |||
Federal Reserve Bank ("FRB") stock, at par | 8,547 | |||
Loans held for sale | 970 | |||
Loans, net of allowance for credit losses | 1,986,228 | |||
Premises and equipment, net | 14,257 | |||
Other real estate owned ("OREO") | 21 | |||
Core deposit intangible, net | 6,750 | |||
Cash surrender value of bank owned life insurance ("BOLI") policies, net | 21,736 | |||
Right-of-use assets ("ROU"), net | 13,645 | |||
Goodwill | 38,838 | |||
Interest receivable and other assets | 39,133 | |||
Total assets | 2,756,012 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Noninterest and interest bearing deposits | 2,330,395 | |||
Junior subordinated deferrable interest debentures, net | 8,423 | |||
Subordinated debt, net | 63,584 | |||
Salary continuation plan | 4,517 | |||
Lease liabilities | 14,177 | |||
Interest payable and other liabilities | 10,262 | |||
Total liabilities | 2,431,358 | |||
Commitments and contingencies (Note 19) | ||||
Shareholders' equity | ||||
Preferred stock | ||||
Common stock | 220,294 | |||
Additional paid in capital | 287 | |||
Accumulated other comprehensive loss, net of tax | (4,786) | |||
Retained earnings | 108,859 | |||
Total shareholders' equity | 324,654 | |||
Total liabilities and shareholders' equity | 2,756,012 | |||
Revision of Prior Period, Adjustment | ||||
ASSETS | ||||
Investment securities available-for-sale (AFS) | (16,698) | |||
Equity securities | 16,698 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Commitments and contingencies (Note 19) | ||||
Shareholders' equity | ||||
Preferred stock | ||||
Accumulated other comprehensive loss, net of tax | 1,259 | |||
Retained earnings | $ (1,259) |
RESTATEMENT OF THE CONSOLIDAT_5
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS - Consolidated Balance Sheet (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance for loan losses | ||||
Investment securities available-for-sale amortized cost | $ 172,927 | $ 153,062 | ||
Allowance for loan losses | $ 17,700 | $ 17,700 | $ 17,500 | $ 17,500 |
Preferred Stock | ||||
Preferred Stock, No Par Value | $ 0 | $ 0 | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Preferred Stock, Shares Outstanding | 0 | 0 | ||
Common Stock | ||||
Common Stock, No Par Value | $ 0 | $ 0 | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||
Common Stock, Shares, Issued | 13,677,729 | 10,680,386 | ||
Common Stock, Shares, Outstanding | 13,677,729 | 10,680,386 |
RESTATEMENT OF THE CONSOLIDAT_6
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS - Consolidated Statement of Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income: | ||
Loans, including fees | $ 22,927 | $ 19,193 |
Investment securities and interest bearing deposits in banks | 1,608 | 868 |
FHLB dividends | 149 | 99 |
FRB dividends | 121 | 112 |
Total interest and dividend income | 24,805 | 20,272 |
Interest expense: | ||
Deposits | 1,470 | 1,206 |
Subordinated debt | 896 | 895 |
Other borrowings | 86 | 87 |
Total interest expense | 2,452 | 2,188 |
Net interest income | 22,353 | 18,084 |
Provision for credit losses | 7 | 0 |
Net interest income after provision for credit losses | 22,346 | 18,084 |
Noninterest income: | ||
Gain on sale of loans | 1,137 | 576 |
Loss on equity securities | (1,768) | |
Loan servicing and other loan fees | 574 | 529 |
Income on investment in Small Business Investment Company ("SBIC") fund | 197 | 263 |
Gain on sale of OREO | 36 | |
Bargain purchase gain | 1,665 | |
Other income and fees | 196 | 229 |
Total noninterest income | 2,631 | 2,237 |
Noninterest expense: | ||
Salaries and employee benefits | 10,310 | 8,885 |
Occupancy and equipment | 2,426 | 1,815 |
Data processing | 2,273 | 1,484 |
Other expense | 3,312 | 1,901 |
Total noninterest expense | 18,321 | 14,085 |
Income before provision for income taxes | 6,656 | 6,236 |
Provision for income taxes | 1,427 | 1,704 |
Net income | $ 5,229 | $ 4,532 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 0.41 | $ 0.40 |
Weighted average shares outstanding (in shares) | 12,646,981 | 11,273,604 |
Diluted earnings per common share (in dollars per share) | $ 0.41 | $ 0.40 |
Weighted average shares outstanding (in shares) | 12,646,981 | 11,273,604 |
Service charges and other fees | ||
Noninterest income: | ||
Service charges and other fees | $ 630 | $ 604 |
Previously Reported | ||
Interest income: | ||
Loans, including fees | 22,927 | |
Investment securities and interest bearing deposits in banks | 1,608 | |
FHLB dividends | 149 | |
FRB dividends | 121 | |
Total interest and dividend income | 24,805 | |
Interest expense: | ||
Deposits | 1,470 | |
Subordinated debt | 896 | |
Other borrowings | 86 | |
Total interest expense | 2,452 | |
Net interest income | 22,353 | |
Provision for credit losses | 7 | |
Net interest income after provision for credit losses | 22,346 | |
Noninterest income: | ||
Gain on sale of loans | 1,137 | |
Loan servicing and other loan fees | 574 | |
Income on investment in Small Business Investment Company ("SBIC") fund | 197 | |
Bargain purchase gain | 1,665 | |
Other income and fees | 196 | |
Total noninterest income | 4,399 | |
Noninterest expense: | ||
Salaries and employee benefits | 10,310 | |
Occupancy and equipment | 2,426 | |
Data processing | 2,273 | |
Other expense | 3,312 | |
Total noninterest expense | 18,321 | |
Income before provision for income taxes | 8,424 | |
Provision for income taxes | 1,936 | |
Net income | $ 6,488 | |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 0.51 | |
Weighted average shares outstanding (in shares) | 12,646,981 | |
Diluted earnings per common share (in dollars per share) | $ 0.51 | |
Weighted average shares outstanding (in shares) | 12,646,981 | |
Previously Reported | Service charges and other fees | ||
Noninterest income: | ||
Service charges and other fees | $ 630 | |
Revision of Prior Period, Adjustment | ||
Noninterest income: | ||
Loss on equity securities | (1,768) | |
Total noninterest income | (1,768) | |
Noninterest expense: | ||
Income before provision for income taxes | (1,768) | |
Provision for income taxes | (509) | |
Net income | $ (1,259) | |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ (0.10) | |
Weighted average shares outstanding (in shares) | 12,646,981 | |
Diluted earnings per common share (in dollars per share) | $ (0.10) | |
Weighted average shares outstanding (in shares) | 12,646,981 |
RESTATEMENT OF THE CONSOLIDAT_7
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS - Consolidated Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | ||
Net income | $ 5,229 | $ 4,532 |
Other comprehensive loss: | ||
Change in unrealized loss on available-for-sale securities | (7,993) | (1,101) |
Deferred tax benefit | 2,300 | 316 |
Other comprehensive loss, net of tax | (5,693) | (785) |
Total comprehensive income (loss) | (464) | $ 3,747 |
Previously Reported | ||
Net income | ||
Net income | 6,488 | |
Other comprehensive loss: | ||
Change in unrealized loss on available-for-sale securities | (9,761) | |
Deferred tax benefit | 2,809 | |
Other comprehensive loss, net of tax | (6,952) | |
Total comprehensive income (loss) | (464) | |
Revision of Prior Period, Adjustment | ||
Net income | ||
Net income | (1,259) | |
Other comprehensive loss: | ||
Change in unrealized loss on available-for-sale securities | 1,768 | |
Deferred tax benefit | (509) | |
Other comprehensive loss, net of tax | $ 1,259 |
RESTATEMENT OF THE CONSOLIDAT_8
RESTATEMENT OF THE CONSOLIDATED FINANCIAL STATEMENTS - Consolidated Statement of Cash Flow Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 5,229 | $ 4,532 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 7 | 0 |
Increase in deferred tax assets | 2,309 | (29) |
Loss on equity securities | 1,768 | |
Net cash provided by operating activities | 2,846 | 651 |
Non-cash investing and financing activities: | ||
Change in unrealized loss on available-for-sale securities, net of tax | (5,693) | $ (785) |
Previously Reported | ||
Cash flows from operating activities: | ||
Net income | 6,488 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 7 | |
Increase in deferred tax assets | 2,818 | |
Net cash provided by operating activities | 2,846 | |
Non-cash investing and financing activities: | ||
Change in unrealized loss on available-for-sale securities, net of tax | (6,952) | |
Revision of Prior Period, Adjustment | ||
Cash flows from operating activities: | ||
Net income | (1,259) | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Increase in deferred tax assets | (509) | |
Loss on equity securities | 1,768 | |
Non-cash investing and financing activities: | ||
Change in unrealized loss on available-for-sale securities, net of tax | $ 1,259 |
ACQUISITIONS - General Informat
ACQUISITIONS - General Information (Details) $ in Thousands | 3 Months Ended | ||
Feb. 01, 2022 USD ($) location shares | Mar. 31, 2022 USD ($) location | Mar. 31, 2021 USD ($) | |
Business Combination, Description [Abstract] | |||
Number of offices and branches | location | 34 | ||
Bargain purchase gain | $ 1,665 | ||
Acquisition related expenses | 3,075 | $ 0 | |
Pacific Enterprise Bancorp [Member] | |||
Business Combination, Description [Abstract] | |||
Transaction value | $ 64,100 | ||
Number of offices and branches | location | 1 | ||
Cash consideration | $ 275 | ||
Stock consideration | shares | 3,032,579 | ||
Bargain purchase gain | $ 1,665 | 1,600 | |
Acquisition related expenses | $ 3,100 |
ACQUISITIONS - Assets Acquired
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 01, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liabilities: | ||||
Bargain purchase gain | $ 1,665 | |||
Goodwill | 38,838 | $ 38,838 | $ 38,838 | |
Tax effect of accounting adjustments, rate | 27.90% | |||
Previously Reported | ||||
Liabilities: | ||||
Bargain purchase gain | 1,665 | |||
Goodwill | 38,838 | |||
Pacific Enterprise Bancorp | ||||
Liabilities: | ||||
Fair value of net assets acquired | $ 61,469 | |||
Fair value of assets acquired | 66,080 | |||
Value of stock issued/cash paid for stock options | 64,415 | |||
Bargain purchase gain | 1,665 | $ 1,600 | ||
Pacific Enterprise Bancorp | Previously Reported | ||||
Fair value of assets: | ||||
Cash and due from banks | 5,350 | |||
Total cash and cash equivalents | 5,350 | |||
Interest bearing deposits in banks | 13,348 | |||
Investment securities available-for-sale | 3 | |||
FHLB stock, at par | 2,294 | |||
FRB stock, at par | 942 | |||
Loans, net | 412,851 | |||
Premises and equipment, net | 221 | |||
Core deposit intangible | 756 | |||
Deferred tax assets, net | 1,192 | |||
Interest receivable and other assets | 9,178 | |||
Total assets acquired | 446,135 | |||
Liabilities: | ||||
Noninterest bearing | 60,006 | |||
Interest bearing | 316,679 | |||
Total Deposits | 376,685 | |||
Interest payable and other liabilities | 3,370 | |||
Total liabilities assumed | 380,055 | |||
Pacific Enterprise Bancorp | Revision of Prior Period, Adjustment | ||||
Fair value of assets: | ||||
Loans, net | 5,840 | |||
Premises and equipment, net | 26 | |||
Core deposit intangible | 756 | |||
Time deposits | (869) | |||
Reserve for unfunded commitments | 283 | |||
Liabilities: | ||||
Write-up right-of-use asset | 439 | |||
Fair value of net assets acquired | 6,475 | |||
Tax effect of purchase accounting adjustments | $ (1,864) |
ACQUISITIONS - Consideration Tr
ACQUISITIONS - Consideration Transferred (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 01, 2022 | Mar. 31, 2022 | |
Business Combination, Consideration Transferred [Abstract] | ||
Bargain purchase gain | $ 1,665 | |
Pacific Enterprise Bancorp | ||
Business Combination, Consideration Transferred [Abstract] | ||
Stock consideration | $ 64,140 | |
Cash consideration | 275 | |
Bargain purchase gain | $ 1,665 | $ 1,600 |
ACQUISITIONS - Pro Forma (Detai
ACQUISITIONS - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net interest income | $ 23,205 | $ 24,271 |
Net income | $ 1,869 | $ 6,084 |
Basic earnings per share (in dollars per share) | $ 0.14 | $ 0.42 |
Diluted earnings per share (in dollars per share) | $ 0.14 | $ 0.42 |
ACQUISITIONS - Acquisition Expe
ACQUISITIONS - Acquisition Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Severance expense | $ 556 | |
Occupancy expense | 375 | |
Data processing | 1,073 | |
Professional fees | 724 | |
Other expenses | 347 | |
Total | 3,075 | $ 0 |
Pacific Enterprise Bancorp | ||
Business Acquisition [Line Items] | ||
Total | $ 3,100 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 172,927 | $ 153,062 |
Gross unrealized gains | 867 | 3,166 |
Gross unrealized losses | (5,819) | (570) |
Estimated fair value | 167,975 | 155,658 |
U.S. Government Agencies | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 1,509 | 1,510 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1) | |
Estimated fair value | 1,508 | 1,510 |
Municipal securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 23,541 | 23,646 |
Gross unrealized gains | 56 | 493 |
Gross unrealized losses | (1,066) | (16) |
Estimated fair value | 22,531 | 24,123 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 36,445 | 33,973 |
Gross unrealized gains | 323 | 1,333 |
Gross unrealized losses | (1,474) | (210) |
Estimated fair value | 35,294 | 35,096 |
Collateralized mortgage obligation | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 30,602 | 27,228 |
Gross unrealized gains | 96 | 436 |
Gross unrealized losses | (1,277) | (158) |
Estimated fair value | 29,421 | 27,506 |
SBA securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 5,680 | 6,055 |
Gross unrealized gains | 36 | 53 |
Gross unrealized losses | (64) | (20) |
Estimated fair value | 5,652 | 6,088 |
Corporate Bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 75,150 | 60,650 |
Gross unrealized gains | 356 | 851 |
Gross unrealized losses | (1,937) | (166) |
Estimated fair value | $ 73,569 | $ 61,335 |
INVESTMENT SECURITIES - Realize
INVESTMENT SECURITIES - Realized Gains (Details) - security | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Number of available for sale debt securities sold | 1 | 0 |
INVESTMENT SECURITIES - Estimat
INVESTMENT SECURITIES - Estimated Fair Value and Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated fair value | $ 104,564 | $ 39,340 |
12 months or more, Estimated fair value | 5,775 | 4,796 |
Total, Estimated fair value | 110,339 | 44,136 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized loss | (5,216) | (401) |
12 months or more, Unrealized loss | (603) | (169) |
Total, Unrealized loss | (5,819) | (570) |
U.S. Government Agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated fair value | 1,508 | |
12 months or more, Estimated fair value | 0 | |
Total, Estimated fair value | 1,508 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized loss | (1) | |
12 months or more, Unrealized loss | 0 | |
Total, Unrealized loss | (1) | |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated fair value | 14,198 | 3,932 |
12 months or more, Estimated fair value | 0 | |
Total, Estimated fair value | 14,198 | 3,932 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized loss | (1,066) | (16) |
12 months or more, Unrealized loss | 0 | |
Total, Unrealized loss | (1,066) | (16) |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated fair value | 18,877 | 2,954 |
12 months or more, Estimated fair value | 2,740 | 2,133 |
Total, Estimated fair value | 21,617 | 5,087 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized loss | (1,076) | (111) |
12 months or more, Unrealized loss | (398) | (99) |
Total, Unrealized loss | (1,474) | (210) |
Collateralized mortgage obligation | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated fair value | 18,474 | 9,236 |
12 months or more, Estimated fair value | 2,059 | 1,605 |
Total, Estimated fair value | 20,533 | 10,841 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized loss | (1,092) | (108) |
12 months or more, Unrealized loss | (185) | (50) |
Total, Unrealized loss | (1,277) | (158) |
SBA securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated fair value | 1,194 | 134 |
12 months or more, Estimated fair value | 976 | 1,058 |
Total, Estimated fair value | 2,170 | 1,192 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized loss | (44) | |
12 months or more, Unrealized loss | (20) | (20) |
Total, Unrealized loss | (64) | (20) |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, Estimated fair value | 50,313 | 23,084 |
12 months or more, Estimated fair value | 0 | |
Total, Estimated fair value | 50,313 | 23,084 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Unrealized loss | (1,937) | (166) |
12 months or more, Unrealized loss | 0 | |
Total, Unrealized loss | $ (1,937) | $ (166) |
INVESTMENT SECURITIES - Unreali
INVESTMENT SECURITIES - Unrealized Loss Positions (Details) | Mar. 31, 2022 security |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 330 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | 20 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Positions | 145 |
INVESTMENT SECURITIES - Amort_2
INVESTMENT SECURITIES - Amortized Cost and Estimated Fair Value of Available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale: Amortized Cost | ||
Due in one year or less (remainder of year) | $ 861 | |
Due in one year or less | 0 | $ 862 |
Due after one through five years | 23,297 | 23,519 |
Due after five years through ten years | 88,707 | 79,116 |
Due after ten years | 60,062 | 49,565 |
Total | 172,927 | 153,062 |
Available-for-sale: Fair Value | ||
Due in one year or less (remainder of year) | 861 | |
Due in one year or less | 0 | 865 |
Due after one through five years | 23,229 | 24,173 |
Due after five years through ten years | 85,952 | 79,993 |
Due after ten years | 57,933 | 50,627 |
Total | $ 167,975 | $ 155,658 |
INVESTMENT SECURITIES - Equity
INVESTMENT SECURITIES - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net loss on equity securities | $ (1,768) | |
Equity securities | $ 16,698 | $ 18,777 |
LOANS - Loan Portfolio (Details
LOANS - Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 2,004,469 | $ 1,666,793 | $ 1,588,847 | |
Net deferred loan fees | (541) | (1,903) | ||
Allowance for loan losses | (17,700) | (17,700) | (17,500) | $ (17,500) |
Net Loans | 1,986,228 | 1,647,190 | ||
Commercial Portfolio Segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 313,556 | 230,177 | 323,946 | |
Allowance for loan losses | (3,499) | (3,261) | (3,819) | (4,042) |
Construction and Land Portfolio Segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 20,854 | 13,371 | 14,623 | |
Allowance for loan losses | (138) | (175) | (265) | (378) |
Commercial Real Estate Portfolio Segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 1,564,305 | 1,299,684 | 1,095,761 | |
Allowance for loan losses | (12,972) | (12,709) | (11,247) | (11,211) |
Residential Portfolio Segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 102,079 | 118,423 | 147,685 | |
Allowance for loan losses | (1,073) | (1,536) | (2,147) | (1,856) |
Consumer Portfolio Segment | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total loans | 3,675 | 5,138 | 6,832 | |
Allowance for loan losses | $ (18) | $ (19) | $ (22) | $ (13) |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financing Receivable, Impaired [Line Items] | |||
With no specific allowance recorded | $ 7,303 | $ 6,604 | |
With a specific allowance recorded | 5,925 | 1,089 | |
Total recorded investment in impaired loans | 13,228 | 7,693 | |
Specific allowance on impaired loans | 1,546 | 930 | |
Average recorded investment in impaired loans | 10,440 | $ 9,652 | |
Interest recognized | 15 | 63 | |
Commercial Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
With no specific allowance recorded | 184 | 112 | |
With a specific allowance recorded | 5,538 | 681 | |
Total recorded investment in impaired loans | 5,722 | 793 | |
Specific allowance on impaired loans | 1,277 | 681 | |
Average recorded investment in impaired loans | 3,237 | 915 | |
Interest recognized | 1 | 1 | |
Construction and Land Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
With no specific allowance recorded | 36 | 36 | |
With a specific allowance recorded | 0 | 0 | |
Total recorded investment in impaired loans | 36 | 36 | |
Specific allowance on impaired loans | 0 | 0 | |
Average recorded investment in impaired loans | 812 | 36 | |
Interest recognized | 0 | 0 | |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
With no specific allowance recorded | 5,451 | 5,015 | |
With a specific allowance recorded | 259 | 262 | |
Total recorded investment in impaired loans | 5,710 | 5,277 | |
Specific allowance on impaired loans | 259 | 224 | |
Average recorded investment in impaired loans | 5,493 | 6,073 | |
Interest recognized | 6 | 58 | |
Residential Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
With no specific allowance recorded | 1,632 | 1,441 | |
With a specific allowance recorded | 128 | 146 | |
Total recorded investment in impaired loans | 1,760 | 1,587 | |
Specific allowance on impaired loans | 10 | 25 | |
Average recorded investment in impaired loans | 898 | 2,628 | |
Interest recognized | 8 | 4 | |
Consumer Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
With no specific allowance recorded | 0 | 0 | |
With a specific allowance recorded | 0 | 0 | |
Total recorded investment in impaired loans | 0 | 0 | |
Specific allowance on impaired loans | 0 | $ 0 | |
Average recorded investment in impaired loans | 0 | 0 | |
Interest recognized | $ 0 | $ 0 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings - General Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Receivables [Abstract] | |||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | $ 0 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | 0 | $ 0 | |
Financing Receivable, TDR Loans, Allowance for Loan Losses | 878 | $ 31 | |
Loans and Leases Receivable Performing Nonaccrual of Interest | $ 794 | $ 805 |
LOANS - Troubled Debt Restruc_2
LOANS - Troubled Debt Restructurings - Modified as TDR Loans (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 USD ($) loan | Mar. 31, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Modified Loans, Number | loan | 1 | 2 |
Financing Receivable, Troubled Debt Restructuring, Loans, Number | loan | 8 | 6 |
Financing Receivable, Troubled Debt Restructuring, Modified Loans | $ 7,200 | $ 1,601 |
Extended Maturity [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Modified Loans | $ 7,200 | $ 1,601 |
Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Loans, Number | loan | 3 | 2 |
Financing Receivable, Troubled Debt Restructuring, Modified Loans | $ 4,881 | $ 29 |
Commercial Portfolio Segment | Extended Maturity [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Modified Loans | $ 4,881 | $ 29 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Loans, Number | loan | 4 | 3 |
Financing Receivable, Troubled Debt Restructuring, Modified Loans | $ 2,191 | $ 1,422 |
Commercial Real Estate Portfolio Segment | Extended Maturity [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Modified Loans | $ 2,191 | $ 1,422 |
Residential Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Loans, Number | loan | 1 | 1 |
Financing Receivable, Troubled Debt Restructuring, Modified Loans | $ 128 | $ 150 |
Residential Portfolio Segment | Extended Maturity [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Troubled Debt Restructuring, Modified Loans | $ 128 | $ 150 |
LOANS - Aging (Details)
LOANS - Aging (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Financing Receivable, Past Due [Line Items] | |||
PCD loans | $ 30,897 | ||
PCI Loans | 30,897 | $ 12,219 | |
Total loans | 2,004,469 | 1,666,793 | $ 1,588,847 |
Recorded Investment > 90 Days and Accruing | 117 | 0 | |
Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 13,288 | 6,989 | |
Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 7,003 | 1,916 | |
Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 1,475 | 779 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 4,810 | 4,294 | |
PCI Loans | 117,000,000 | 0 | |
Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 1,960,284 | 1,647,585 | |
Commercial Portfolio Segment | |||
Financing Receivable, Past Due [Line Items] | |||
PCD loans | 4,459 | ||
PCI Loans | 4,459 | 306 | |
Total loans | 313,556 | 230,177 | 323,946 |
Recorded Investment > 90 Days and Accruing | 0 | 0 | |
Commercial Portfolio Segment | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 6,717 | 891 | |
Commercial Portfolio Segment | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 5,828 | 275 | |
Commercial Portfolio Segment | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 236 | 10 | |
Commercial Portfolio Segment | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 653 | 606 | |
Commercial Portfolio Segment | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 302,380 | 228,980 | |
Construction and Land Portfolio Segment | |||
Financing Receivable, Past Due [Line Items] | |||
PCD loans | 1,447 | ||
PCI Loans | 1,447 | 0 | |
Total loans | 20,854 | 13,371 | 14,623 |
Recorded Investment > 90 Days and Accruing | 0 | 0 | |
Construction and Land Portfolio Segment | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 373 | 374 | |
Construction and Land Portfolio Segment | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 337 | 0 | |
Construction and Land Portfolio Segment | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 0 | 338 | |
Construction and Land Portfolio Segment | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 36 | 36 | |
Construction and Land Portfolio Segment | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 19,034 | 12,997 | |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Past Due [Line Items] | |||
PCD loans | 23,421 | ||
PCI Loans | 23,421 | 10,146 | |
Total loans | 1,564,305 | 1,299,684 | 1,095,761 |
Recorded Investment > 90 Days and Accruing | 0 | 0 | |
Commercial Real Estate Portfolio Segment | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 3,925 | 3,227 | |
Commercial Real Estate Portfolio Segment | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 109 | 196 | |
Commercial Real Estate Portfolio Segment | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 697 | 410 | |
Commercial Real Estate Portfolio Segment | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 3,119 | 2,621 | |
Commercial Real Estate Portfolio Segment | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 1,536,959 | 1,286,311 | |
Residential Portfolio Segment | |||
Financing Receivable, Past Due [Line Items] | |||
PCD loans | 1,570 | ||
PCI Loans | 1,570 | 1,767 | |
Total loans | 102,079 | 118,423 | 147,685 |
Recorded Investment > 90 Days and Accruing | 117 | 0 | |
Residential Portfolio Segment | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 2,052 | 2,494 | |
Residential Portfolio Segment | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 729 | 1,442 | |
Residential Portfolio Segment | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 321 | 21 | |
Residential Portfolio Segment | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 1,002 | 1,031 | |
Residential Portfolio Segment | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 98,457 | 114,162 | |
Consumer Portfolio Segment | |||
Financing Receivable, Past Due [Line Items] | |||
PCI Loans | 0 | ||
Total loans | 3,675 | 5,138 | $ 6,832 |
Recorded Investment > 90 Days and Accruing | 0 | 0 | |
Consumer Portfolio Segment | Financial Asset, Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 221 | 3 | |
Consumer Portfolio Segment | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 0 | 3 | |
Consumer Portfolio Segment | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 221 | 0 | |
Consumer Portfolio Segment | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | 0 | 0 | |
Consumer Portfolio Segment | Financial Asset, Not Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Loans receivable | $ 3,454 | $ 5,135 |
LOANS - Nonaccrual Loans - Guar
LOANS - Nonaccrual Loans - Guaranteed (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | $ 30,897 | $ 12,219 |
US Government Agency Insured Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | $ 822 | $ 841 |
LOANS - Nonaccrual Loans - Agin
LOANS - Nonaccrual Loans - Aging (Details) $ in Thousands | Mar. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | $ 30,897 | $ 12,219 |
Recorded Investment > 90 Days and Accruing | 117 | 0 |
Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | 4,459 | 306 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Construction and Land Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | 1,447 | 0 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Commercial Real Estate Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | 23,421 | 10,146 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Residential Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | 1,570 | 1,767 |
Recorded Investment > 90 Days and Accruing | 117 | 0 |
Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Financial Asset, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | 5,600 | 6,900 |
Financial Asset, 30 to 89 Days Past Due [Member] | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | $ 4,900 | |
Financing Receivable, Nonaccrual, Loans, Number | loan | 1 | |
Financial Asset, 1 to 29 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | $ 2,200 | 2,500 |
Financing Receivable, Nonaccrual, Loans, Number | loan | 11 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Nonaccrual | $ 117,000,000 | $ 0 |
Financing Receivable, Nonaccrual, Loans, Number | loan | 1 |
LOANS - Nonaccrual Loans - Gene
LOANS - Nonaccrual Loans - General Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loans and Leases Receivable, Other Information [Abstract] | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 84,600 | $ 88,300 |
ALLOWANCE FOR LOAN LOSSES - Rol
ALLOWANCE FOR LOAN LOSSES - Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 17,700 | $ 17,500 |
Charge-offs | (10) | (2) |
Recoveries | 3 | 2 |
Provision for (reversal of) loan losses | 7 | 0 |
Ending balance | 17,700 | 17,500 |
Commercial Portfolio Segment | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 3,261 | 4,042 |
Charge-offs | 0 | (2) |
Recoveries | 3 | 2 |
Provision for (reversal of) loan losses | 235 | (223) |
Ending balance | 3,499 | 3,819 |
Construction and Land Portfolio Segment | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 175 | 378 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision for (reversal of) loan losses | (37) | (113) |
Ending balance | 138 | 265 |
Commercial Real Estate Portfolio Segment | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 12,709 | 11,211 |
Charge-offs | (1) | 0 |
Recoveries | 0 | 0 |
Provision for (reversal of) loan losses | 264 | 36 |
Ending balance | 12,972 | 11,247 |
Residential Portfolio Segment | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,536 | 1,856 |
Charge-offs | (6) | 0 |
Recoveries | 0 | 0 |
Provision for (reversal of) loan losses | (457) | 291 |
Ending balance | 1,073 | 2,147 |
Consumer Portfolio Segment | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 19 | 13 |
Charge-offs | (3) | 0 |
Recoveries | 0 | 0 |
Provision for (reversal of) loan losses | 2 | 9 |
Ending balance | $ 18 | $ 22 |
ALLOWANCE FOR LOAN LOSSES - Add
ALLOWANCE FOR LOAN LOSSES - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans individually evaluated for impairment | $ 1,664 | $ 626 | ||
Loans collectively evaluated for impairment | 16,036 | 16,763 | ||
Allowance for loan losses | 17,700 | $ 17,700 | 17,500 | $ 17,500 |
Individually evaluated | 13,228 | 10,617 | ||
Collectively evaluated | 1,960,344 | 1,564,157 | ||
Total loans | 2,004,469 | 1,666,793 | 1,588,847 | |
Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Allowance for loan losses | 0 | 111 | ||
Total loans | 30,897 | 14,073 | ||
Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans individually evaluated for impairment | 1,277 | 490 | ||
Loans collectively evaluated for impairment | 2,222 | 3,218 | ||
Allowance for loan losses | 3,499 | 3,261 | 3,819 | 4,042 |
Individually evaluated | 5,723 | 978 | ||
Collectively evaluated | 303,374 | 322,330 | ||
Total loans | 313,556 | 230,177 | 323,946 | |
Commercial Portfolio Segment | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Allowance for loan losses | 0 | 111 | ||
Total loans | 4,459 | 638 | ||
Construction and Land Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 138 | 265 | ||
Allowance for loan losses | 138 | 175 | 265 | 378 |
Individually evaluated | 36 | 36 | ||
Collectively evaluated | 19,371 | 14,539 | ||
Total loans | 20,854 | 13,371 | 14,623 | |
Construction and Land Portfolio Segment | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Allowance for loan losses | 0 | 0 | ||
Total loans | 1,447 | 48 | ||
Commercial Real Estate Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans individually evaluated for impairment | 259 | 116 | ||
Loans collectively evaluated for impairment | 12,713 | 11,131 | ||
Allowance for loan losses | 12,972 | 12,709 | 11,247 | 11,211 |
Individually evaluated | 5,710 | 6,079 | ||
Collectively evaluated | 1,535,174 | 1,078,547 | ||
Total loans | 1,564,305 | 1,299,684 | 1,095,761 | |
Commercial Real Estate Portfolio Segment | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Allowance for loan losses | 0 | 0 | ||
Total loans | 23,421 | 11,135 | ||
Residential Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans individually evaluated for impairment | 128 | 20 | ||
Loans collectively evaluated for impairment | 945 | 2,127 | ||
Allowance for loan losses | 1,073 | 1,536 | 2,147 | 1,856 |
Individually evaluated | 1,759 | 3,524 | ||
Collectively evaluated | 98,750 | 141,909 | ||
Total loans | 102,079 | 118,423 | 147,685 | |
Residential Portfolio Segment | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Allowance for loan losses | 0 | 0 | ||
Total loans | 1,570 | 2,252 | ||
Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 18 | 22 | ||
Allowance for loan losses | 18 | 19 | 22 | $ 13 |
Individually evaluated | 0 | 0 | ||
Collectively evaluated | 3,675 | 6,832 | ||
Total loans | 3,675 | $ 5,138 | 6,832 | |
Consumer Portfolio Segment | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Allowance for loan losses | 0 | 0 | ||
Total loans | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES - Amo
ALLOWANCE FOR LOAN LOSSES - Amortized Cost And Allowance For Credit Losses For Loans On Non-accrual Status (Details) $ in Thousands | Mar. 31, 2022 USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total non-accrual | $ 30,897 |
Commercial Portfolio Segment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total non-accrual | 4,459 |
Construction and Land Portfolio Segment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total non-accrual | 1,447 |
Commercial Real Estate Portfolio Segment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total non-accrual | 23,421 |
Residential Portfolio Segment | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total non-accrual | $ 1,570 |
PREMISES AND EQUIPMENT - Tabula
PREMISES AND EQUIPMENT - Tabular Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (5,939) | $ (5,454) |
Total premises and equipment, net | 14,257 | 14,370 |
Premises owned | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 11,115 | 11,015 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,619 | 2,608 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 6,462 | $ 6,201 |
PREMISES AND EQUIPMENT - Deprec
PREMISES AND EQUIPMENT - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Depreciation, Depletion and Amortization [Abstract] | ||
Depreciation and amortization included in occupancy and equipment expense | $ 507 | $ 502 |
LEASES - General Information (D
LEASES - General Information (Details) | Mar. 31, 2022 location |
Lessee, Lease, Description [Line Items] | |
Number of offices and branches | 34 |
Noncancelable Operating Leases [Member] | |
Lessee, Lease, Description [Line Items] | |
Number of offices and branches | 19 |
LEASES - Maturity (Details)
LEASES - Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
For the remainder of 2023 | $ 3,832 | |
2024 | 3,466 | |
2025 | 2,952 | |
2026 | 2,039 | |
2027 | 1,296 | |
Thereafter | 2,563 | |
Total undiscounted cash flows | 16,148 | |
Less: interest | (1,971) | |
Present value of lease payments | $ 14,177 | $ 12,657 |
LEASES - Weighted Average Opera
LEASES - Weighted Average Operating Lease Term and Discount Rate (Details) | Mar. 31, 2022 |
Leases [Abstract] | |
Weighted-average remaining lease term | 5 years 1 month 6 days |
Weighted-average discount rate | 2.41% |
LEASES - Rental Expense (Detail
LEASES - Rental Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income and Expenses, Lessee [Abstract] | ||
Operating lease expense | $ 1,300 | $ 810 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 38,838 | $ 38,838 |
Impairment | 0 | 0 |
Balance at end of period | $ 38,838 | $ 38,838 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Changes in Core Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Balance at beginning of period | $ 6,489 | ||
Less amortization | (495) | $ (454) | |
Balance at end of period | 6,750 | $ 6,489 | |
Core Deposits [Member] | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance at beginning of period | 6,489 | $ 8,302 | 8,302 |
Additions | 756 | ||
Less amortization | (495) | (1,813) | |
Balance at end of period | $ 6,750 | $ 6,489 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Estimated Annual Amortization (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
For the remainder of 2023 | $ 1,549 | |
2024 | 1,286 | |
2025 | 1,222 | |
2026 | 948 | |
2027 | 455 | |
Thereafter | 1,290 | |
Total | $ 6,750 | $ 6,489 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Core Deposit Intangible (Details) - Core Deposits [Member] | 3 Months Ended |
Mar. 31, 2022 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
INTEREST RECEIVABLE AND OTHER_3
INTEREST RECEIVABLE AND OTHER ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Tax assets, net | $ 11,391 | $ 10,573 |
Accrued interest receivable | 8,262 | 5,929 |
Investment in Small Business Investment Company ("SBIC") fund | 4,929 | 4,731 |
Investment in Community Reinvestment Act fund | 2,000 | |
Prepaid assets | 1,076 | 1,598 |
Servicing assets | 2,365 | 1,947 |
Investment in Low Income Housing Tax Credit ("LIHTC") partnerships, net | 2,981 | 3,129 |
Investment in statutory trusts | 485 | 484 |
Other assets | 5,644 | 1,469 |
Total | $ 39,133 | $ 29,860 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits, by Type [Abstract] | ||
Demand deposits | $ 783,110 | $ 710,137 |
NOW accounts and savings | 476,077 | 484,847 |
Money market | 760,359 | 568,094 |
Time deposits | 310,849 | 222,161 |
Total deposits | $ 2,330,395 | $ 1,985,239 |
BORROWINGS - Federal Home Loan
BORROWINGS - Federal Home Loan Bank (Details) - Federal Home Loan Bank of San Francisco [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 0 | $ 0 |
Federal Home Loan Bank of San Francisco, Secured Borrowing Facility [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, General Description of Terms | Bank has an approved secured borrowing facility with the Federal Home Loan Bank of San Francisco (the “FHLB”) for up to 25% of total assets for a term not to exceed five years under a blanket lien of certain types of loans. | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Percentage of Total Assets | 25% | |
Debt Instrument, Term | 5 years |
BORROWINGS - Federal Funds Line
BORROWINGS - Federal Funds Line - Commitments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Federal Funds Line, Cumulative Available Commitments [Member] | ||
Other Commitments [Line Items] | ||
Other Commitment | $ 65 | $ 65 |
BORROWINGS - Federal Funds Li_2
BORROWINGS - Federal Funds Line - Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 0 | $ 0 |
BORROWINGS - Junior Subordinate
BORROWINGS - Junior Subordinated Deferrable Interest Debentures (Details) - Junior Subordinated Debt [Member] - Floating Rate Junior Subordinated Deferrable Interest Debentures [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 8.4 | $ 8.4 |
Debt, Weighted Average Interest Rate | 3.44% | 2.79% |
Debt Instrument, Term | 30 years |
BORROWINGS - SUBORDINATED DEBT
BORROWINGS - SUBORDINATED DEBT (Details) - Subordinated Debt [Member] - Fixed-to-Floating Rate Subordinated Notes, 5.25 Percent, Due 2030 [Member] - USD ($) $ in Millions | Sep. 15, 2025 | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 06, 2020 |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 65 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||
Debt Instrument, Face Amount, Debt Issued, Percentage of Par | 100% | |||
Long-term Debt | $ 63.6 | $ 63.5 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Forecast [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 5.21% |
INTEREST PAYABLE AND OTHER LI_3
INTEREST PAYABLE AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Accrued expenses | $ 5,634 | $ 7,339 |
Accounts payable | 412 | 506 |
Reserve for unfunded commitments | 315 | 315 |
Accrued interest payable | 344 | 1,180 |
Other liabilities | 3,557 | 4,516 |
Total | $ 10,262 | $ 13,856 |
OTHER EXPENSES - Tabular Disclo
OTHER EXPENSES - Tabular Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Professional fees | $ 1,306 | $ 434 |
Core deposit premium amortization | 495 | 454 |
Marketing and promotions | 296 | 64 |
Stationery and supplies | 92 | 107 |
Insurance (including FDIC premiums) | 231 | 210 |
Communication and postage | 224 | 214 |
Loan default related expense | 39 | 14 |
Director fees | 84 | 76 |
Bank service charges | 66 | 56 |
Courier expense | 175 | 176 |
Other | 304 | 96 |
Total | $ 3,312 | $ 1,901 |
OTHER EXPENSES - Additional Inf
OTHER EXPENSES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Advertising Expense | $ 21 | $ 17 |
EQUITY INCENTIVE PLANS - Genera
EQUITY INCENTIVE PLANS - General Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 450,000 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 22,473 | 24,187 | |
2017 Omnibus Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized, Annual Stock Grant Limit Per Person, Officers and Employees | 50,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Amount Authorized, Annual Stock Grant Limit Per Person, Officers and Employees | $ 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized, Annual Stock Grant Limit Per Person, Directors | 25,000 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 95,381 | ||
2017 Omnibus Equity Incentive Plan [Member] | Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
2017 Omnibus Equity Incentive Plan [Member] | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year | ||
2017 Omnibus Equity Incentive Plan [Member] | Minimum | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
2017 Omnibus Equity Incentive Plan [Member] | Maximum | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
2014 Omnibus Equity Incentive Plan [Member] | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
2014 Omnibus Equity Incentive Plan [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
2014 Omnibus Equity Incentive Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 148,962 |
EQUITY INCENTIVE PLANS - Compen
EQUITY INCENTIVE PLANS - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement Compensation Expense Items [Abstract] | ||
Stock based compensation expense | $ 324 | $ 413 |
EQUITY INCENTIVE PLANS - Unreco
EQUITY INCENTIVE PLANS - Unrecognized Compensation Cost (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized [Abstract] | |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 1.5 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years |
EQUITY INCENTIVE PLANS - Restri
EQUITY INCENTIVE PLANS - Restricted Stock Grant Activity (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested (in shares) | 139,275 | 204,515 |
Granted (in shares) | 22,473 | 24,187 |
Vested (in shares) | (15,560) | (14,164) |
Forfeited (in shares) | (532) | |
Non-vested (in shares) | 145,656 | 214,538 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Non-vested (in dollars per share) | $ 16.29 | $ 17.71 |
Granted (in dollars per share) | 18.79 | 15.17 |
Vested (in dollars per share) | 18.34 | 18.50 |
Forfeited (in dollars per share) | 18.79 | 0 |
Non-vested (in dollars per share) | $ 16.45 | $ 16.06 |
FAIR VALUE MEASUREMENT - Recurr
FAIR VALUE MEASUREMENT - Recurring (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | $ 167,975 | $ 155,658 |
U.S. Government Agencies | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 1,508 | 1,510 |
Municipal securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 22,531 | 24,123 |
Mortgage-backed securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 35,294 | 35,096 |
Collateralized mortgage obligation | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 29,421 | 27,506 |
SBA securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 5,652 | 6,088 |
Corporate Bonds | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 73,569 | 61,335 |
Fair Value, Inputs, Level 2 [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 167,975 | 155,658 |
Fair Value, Measurements, Recurring [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 184,673 | 174,435 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agencies | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 1,508 | 1,510 |
Fair Value, Measurements, Recurring [Member] | Municipal securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 22,531 | 24,123 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 35,294 | 35,096 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligation | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 29,421 | 27,506 |
Fair Value, Measurements, Recurring [Member] | SBA securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 5,652 | 6,088 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 73,569 | 61,335 |
Fair Value, Measurements, Recurring [Member] | Equity Securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 16,698 | 18,777 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 16,698 | 18,777 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Government Agencies | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized mortgage obligation | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | SBA securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Bonds | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 16,698 | 18,777 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 167,975 | 155,658 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government Agencies | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 1,508 | 1,510 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 22,531 | 24,123 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 35,294 | 35,096 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligation | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 29,421 | 27,506 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | SBA securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 5,652 | 6,088 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 73,569 | 61,335 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Government Agencies | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized mortgage obligation | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | SBA securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Bonds | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities | ||
Investments, Fair Value Disclosure [Abstract] | ||
Investment securities available-for-sale (AFS) | $ 0 |
FAIR VALUE MEASUREMENT - Nonrec
FAIR VALUE MEASUREMENT - Nonrecurring (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | $ 13,228 | $ 7,693 | |
Individually evaluated | 13,228 | $ 10,617 | |
OREO | 21 | 21 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
OREO | 21 | 21 | |
Total | 13,249 | 7,714 | |
Fair Value, Measurements, Nonrecurring [Member] | Performing Financial Instruments [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | 794 | 805 | |
Fair Value, Measurements, Nonrecurring [Member] | Nonperforming Financial Instruments [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | 12,434 | 6,888 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
OREO | 0 | 0 | |
Total | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | Performing Financial Instruments [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | Nonperforming Financial Instruments [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
OREO | 0 | 0 | |
Total | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Performing Financial Instruments [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Nonperforming Financial Instruments [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
OREO | 21 | 21 | |
Total | 13,249 | 7,714 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Performing Financial Instruments [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | 794 | 805 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Nonperforming Financial Instruments [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Impaired Financing Receivable, Recorded Investment | $ 12,434 | $ 6,888 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Time deposits in banks | $ 3,336 | $ 3,585 |
Investment securities available-for-sale (AFS) | 167,975 | 155,658 |
Equity securities | 16,698 | 18,777 |
Accrued interest receivable | 8,262 | 5,929 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | 427,199 | 379,687 |
Time deposits in banks | 3,336 | 3,585 |
Equity securities | 16,698 | 18,777 |
Investment in FHLB and FRB Stock | 19,226 | 16,035 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities available-for-sale (AFS) | 167,975 | 155,658 |
Loans held for sale | 970 | 6,470 |
Accrued interest receivable | 8,262 | 5,929 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits | 2,332,443 | 1,986,651 |
Accrued interest payable | 344 | 1,180 |
Fair Value, Inputs, Level 2 [Member] | Fixed-to-Floating Rate Subordinated Notes, 5.25 Percent, Due 2030 [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Debt | 63,584 | 63,542 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Loans, net | 1,991,792 | 1,659,811 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Undisbursed loan commitments, lines of credit, standby letters of credit | 88,739 | 103,824 |
Fair Value, Inputs, Level 3 [Member] | Floating Rate Junior Subordinated Deferrable Interest Debentures [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Debt | 8,640 | 8,612 |
Reported Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | 427,199 | 379,687 |
Time deposits in banks | 3,336 | 3,585 |
Investment securities available-for-sale (AFS) | 167,975 | 155,658 |
Equity securities | 16,698 | 18,777 |
Investment in FHLB and FRB Stock | 19,226 | 16,035 |
Loans held for sale | 970 | 6,470 |
Loans, net | 1,986,228 | 1,647,190 |
Accrued interest receivable | 8,262 | 5,929 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits | 2,330,395 | 1,985,239 |
Accrued interest payable | 344 | 1,180 |
Undisbursed loan commitments, lines of credit, standby letters of credit | 89,054 | 104,139 |
Reported Value Measurement [Member] | Floating Rate Junior Subordinated Deferrable Interest Debentures [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Debt | 8,423 | 8,403 |
Reported Value Measurement [Member] | Fixed-to-Floating Rate Subordinated Notes, 5.25 Percent, Due 2030 [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Debt | 63,584 | 63,542 |
Estimate of Fair Value Measurement [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | 427,199 | 379,687 |
Time deposits in banks | 3,336 | 3,585 |
Investment securities available-for-sale (AFS) | 167,975 | 155,658 |
Equity securities | 16,698 | 18,777 |
Investment in FHLB and FRB Stock | 19,226 | 16,035 |
Loans held for sale | 970 | 6,470 |
Loans, net | 1,991,792 | 1,659,811 |
Accrued interest receivable | 8,262 | 5,929 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits | 2,332,443 | 1,986,651 |
Accrued interest payable | 344 | 1,180 |
Undisbursed loan commitments, lines of credit, standby letters of credit | 88,739 | 103,824 |
Estimate of Fair Value Measurement [Member] | Floating Rate Junior Subordinated Deferrable Interest Debentures [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Debt | 8,640 | 8,612 |
Estimate of Fair Value Measurement [Member] | Fixed-to-Floating Rate Subordinated Notes, 5.25 Percent, Due 2030 [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Debt | $ 63,584 | $ 63,542 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Off-balance Sheet Liabilities - Tabular Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 89,054 | $ 104,139 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 86,292 | 100,686 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 2,762 | $ 3,453 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Off-balance Sheet Liabilities - Reserve (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-09, Reserve, Off-balance Sheet Activity [Member] | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 315 | $ 315 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Low Income Housing Tax Credit Partnerships [Member] | ||
Other Commitments [Line Items] | ||
Other Commitment | $ 3,200 | $ 2,300 |
Small Business Investment Company [Member] | ||
Other Commitments [Line Items] | ||
Other Commitment | $ 122 | $ 122 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Deposits | $ 2,330,395 | $ 1,985,239 |
Deposits [Member] | Top Ten Depositors [Member] | ||
Concentration Risk [Line Items] | ||
Deposits | $ 265,900 | $ 198,600 |
Deposits [Member] | Deposits [Member] | Top Ten Depositors [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.40% | 10% |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Local Agency Deposits (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Federal Home Loan Bank, Letters of Credit | $ 42 | $ 42 |
LOANS - PCI Loans - Accretable
LOANS - PCI Loans - Accretable Yield - Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 508 | $ 383 |
Additions | 1,277 | 0 |
Removals | (48) | (65) |
Accretion | (50) | (230) |
Balance at end of period | $ 1,687 | $ 88 |
LOANS - Risk Grade (Details)
LOANS - Risk Grade (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | $ 2,004,469 | $ 1,666,793 | $ 1,588,847 |
Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,926,440 | 1,614,794 | |
Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 61,688 | 38,937 | |
Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 16,341 | 13,062 | |
Commercial Portfolio Segment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 313,556 | 230,177 | 323,946 |
Commercial Portfolio Segment | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 300,516 | 216,611 | |
Commercial Portfolio Segment | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 3,740 | 9,178 | |
Commercial Portfolio Segment | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 9,300 | 4,388 | |
Construction and Land Portfolio Segment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 20,854 | 13,371 | 14,623 |
Construction and Land Portfolio Segment | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 17,830 | 13,264 | |
Construction and Land Portfolio Segment | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 2,988 | 71 | |
Construction and Land Portfolio Segment | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 36 | 36 | |
Commercial Real Estate Portfolio Segment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,564,305 | 1,299,684 | 1,095,761 |
Commercial Real Estate Portfolio Segment | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,505,699 | 1,264,269 | |
Commercial Real Estate Portfolio Segment | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 53,433 | 28,438 | |
Commercial Real Estate Portfolio Segment | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 5,173 | 6,977 | |
Residential Portfolio Segment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 102,079 | 118,423 | 147,685 |
Residential Portfolio Segment | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 98,742 | 115,534 | |
Residential Portfolio Segment | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,527 | 1,250 | |
Residential Portfolio Segment | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,810 | 1,639 | |
Consumer Portfolio Segment | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 3,675 | 5,138 | $ 6,832 |
Consumer Portfolio Segment | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 3,653 | 5,116 | |
Consumer Portfolio Segment | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | $ 22 | $ 22 |
LOANS - PCI Loans - Unpaid Bala
LOANS - PCI Loans - Unpaid Balance and Carrying Amount (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Financing Receivable, Unpaid Principal Balance | $ 34,948 | $ 14,267 |
Financing Receivable, Nonaccrual | 30,897 | 12,219 |
Commercial Portfolio Segment | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 5,587 | 546 |
Financing Receivable, Nonaccrual | 4,459 | 306 |
Construction and Land Portfolio Segment | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,667 | |
Financing Receivable, Nonaccrual | 1,447 | 0 |
Commercial Real Estate Portfolio Segment | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 25,751 | 11,519 |
Financing Receivable, Nonaccrual | 23,421 | 10,146 |
Residential Portfolio Segment | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,943 | 2,202 |
Financing Receivable, Nonaccrual | $ 1,570 | 1,767 |
Consumer Portfolio Segment | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Financing Receivable, Nonaccrual | $ 0 |