Southern California Bancorp (BCAL) 10-K 15 Mar 24 2023 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Feb. 29, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-41684
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	84-3288397
Entity Address, Address Line One	12265 El Camino Real
Entity Address, Address Line Two	Suite 210
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
City Area Code	844
Local Phone Number	265-7622
Title of 12(b) Security	Common Stock, no par value per share
Trading Symbol	BCAL
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 154.9
Entity Common Stock, Shares Outstanding		18,431,409
Documents Incorporated by Reference	The information required by Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K will be found in the Company’s definitive proxy statement for its 2024 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, and such information is incorporated herein by this reference.
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0001795815
Entity Registrant Name	Southern California Bancorp \ CA

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2023
Audit Information [Abstract]
Auditor Name	Eide Bailly LLP
Auditor Location	Laguna Hills, California
Auditor Firm ID	286

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 33,008	$ 60,295
Federal funds and interest-bearing balances	53,785	26,465
Total cash and cash equivalents	86,793	86,760
Debt securities available for sale, at fair value (amortized cost of $136,366 and $121,652 at December 31, 2023 and 2022, respectively)	130,035	112,580
Debt securities held to maturity, at amortized cost, net of allowance of $0 for both periods (fair value of $50,432 and $47,906 at December 31, 2023 and 2022, respectively)	53,616	53,946
Loans held for sale	7,349	9,027
Loans held for investment	1,957,442	1,897,773
Allowance for loan losses	(22,569)	(17,099)
Loans held for investment, net	1,934,873	1,880,674
Restricted stock, at cost	16,055	14,543
Premises and equipment	13,270	14,334
Right-of-use asset	9,291	8,607
Goodwill	37,803	37,803
Core deposit intangible, net	1,195	1,584
Bank owned life insurance	38,918	37,972
Deferred taxes, net	11,137	10,699
Accrued interest and other assets	19,917	15,398
Total assets	2,360,252	2,283,927
LIABILITIES
Noninterest-bearing demand	675,098	923,899
Interest-bearing NOW accounts	381,943	209,625
Money market and savings accounts	636,685	668,602
Time deposits	249,830	129,779
Total deposits	1,943,556	1,931,905
Borrowings	102,865	67,770
Operating lease liability	12,117	11,055
Accrued interest and other liabilities	13,562	12,842
Total liabilities	2,072,100	2,023,572
Commitments and contingencies (Notes 5 and 12)
SHAREHOLDERS’ EQUITY
Preferred stock - 50,000,000 shares authorized, no par value; no shares issued and outstanding at December 31, 2023 and 2022	0	0
Common stock - 50,000,000 shares authorized, no par value; issued and outstanding 18,369,115 and 17,940,283 at December 31, 2023 and 2022	222,036	218,280
Retained earnings	70,575	48,516
Accumulated other comprehensive loss - net of taxes	(4,459)	(6,441)
Total shareholders’ equity	288,152	260,355
Total liabilities and shareholders’ equity	$ 2,360,252	$ 2,283,927

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Debt securities available-for-sale, at fair value, amortized cost	$ 136,366	$ 121,652
Debt securities held-to-maturity, at amortized cost, allowance	0	0
Debt securities held-to-maturity, at amortized cost, fair value	$ 50,432	$ 47,906
Preferred stock authorized (in shares)	50,000,000	50,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Common stock authorized (in shares)	50,000,000	50,000,000
Common stock issued (in shares)	18,369,115	17,940,283
Common stock outstanding (in shares)	18,369,115	17,940,283

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 113,951	$ 86,366
Interest on debt securities	3,497	2,013
Interest on tax-exempted debt securities	1,655	1,372
Interest on deposits at other financial institutions	3,357	2,896
Interest and dividends on other interest-earning assets	1,062	928
Total interest and dividend income	123,522	93,575
INTEREST EXPENSE
Interest on NOW, money market and savings accounts	20,161	3,793
Interest on time deposits	6,704	797
Interest on borrowings	2,519	1,199
Total interest expense	29,384	5,789
Net interest income	94,138	87,786
Provision for credit losses	915	5,956
Net interest income after provision for credit losses	93,223	81,830
NONINTEREST INCOME
Gain on sale of loans	831	1,349
Income from bank owned life insurance	946	1,490
Servicing and related income on loans, net	240	192
Loss on sale of available-for-sale debt securities	(974)	(994)
Loss on sale and disposal of fixed assets	0	(768)
Other charges and fees	390	610
Total noninterest income	3,379	3,675
NONINTEREST EXPENSE
Salaries and employee benefits	39,249	37,069
Occupancy and equipment	6,231	6,210
Data processing and communications	4,534	4,609
Legal, audit and professional	3,211	2,597
Regulatory assessments	1,508	1,550
Director and shareholder expenses	849	946
Merger and related expenses	0	1,177
Core deposit intangible amortization	389	438
Litigation settlements, net	0	5,525
Other expenses	3,775	3,401
Total noninterest expense	59,746	63,522
Income before income taxes	36,856	21,983
Income tax expense	10,946	5,870
Net income	$ 25,910	$ 16,113
Earnings per share:
Basic (in dollars per share)	$ 1.42	$ 0.90
Diluted (in dollars per share)	$ 1.39	$ 0.88
Service charges and fees on deposit accounts
NONINTEREST INCOME
Revenue	$ 1,202	$ 1,014
Interchange and ATM income
NONINTEREST INCOME
Revenue	$ 744	$ 782

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 25,910	$ 16,113
Unrealized gain (loss) on securities available for sale:
Change in net unrealized gain (loss)	1,767	(10,014)
Reclassification of loss recognized in net income	974	994
Unrealized gain (loss) on securities available for sale	2,741	(9,020)
Income tax expense (benefit):
Change in net unrealized gain (loss)	471	(2,911)
Reclassification of loss recognized in net income	288	294
Income tax benefit (expense)	759	(2,617)
Total other comprehensive income (loss), net of tax	1,982	(6,403)
Total comprehensive income, net of tax	$ 27,892	$ 9,710

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Adoption of ASU No. 2016-13	[1]	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Adoption of ASU No. 2016-13	[1]	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance (in shares) at Dec. 31, 2021					17,707,737
Beginning balance at Dec. 31, 2021	$ 246,528				$ 214,163		$ 32,403				$ (38)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	3,682				$ 3,682
Stock options exercised (in shares)					136,100
Stock options exercised	1,009				$ 1,009
Restricted stock units vested (in shares)					101,577
Repurchase of shares to cover stock option proceeds and tax liabilities (in shares)					(5,131)
Repurchase of shares to cover stock option proceeds and tax liabilities	(574)				$ (574)
Net income	16,113						16,113
Other comprehensive (loss) income	$ (6,403)										(6,403)
Ending balance (in shares) at Dec. 31, 2022	17,940,283				17,940,283	17,940,283
Ending balance at Dec. 31, 2022	$ 260,355	$ (3,851)		$ 256,504	$ 218,280	$ 218,280	48,516	$ (3,851)		$ 44,665	(6,441)	$ (6,441)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Stock-based compensation	$ 4,518				$ 4,518
Stock options exercised (in shares)					16,000
Stock options exercised	127				$ 127
Restricted stock units vested (in shares)					470,648
Repurchase of shares to cover stock option proceeds and tax liabilities (in shares)					(57,816)
Repurchase of shares to cover stock option proceeds and tax liabilities	(889)				$ (889)
Net income	25,910						25,910
Other comprehensive (loss) income	$ 1,982										1,982
Ending balance (in shares) at Dec. 31, 2023	18,369,115				18,369,115
Ending balance at Dec. 31, 2023	$ 288,152				$ 222,036		$ 70,575				$ (4,459)
[1]Related to the adoption of Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
OPERATING ACTIVITIES
Net income	$ 25,910	$ 16,113
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation on premises and equipment	1,530	1,563
Core deposit intangible amortization	389	438
Amortization of premiums of debt securities	260	823
Gain on sale of loans	(831)	(1,349)
Loss on sale and disposal of fixed assets	0	768
Loss on early debt extinguishment	0	347
Loans originated for sale	(9,240)	(28,470)
Proceeds from loans originated for sale	11,887	21,366
Provision for credit losses	915	5,956
Deferred income tax expense (benefit)	418	(2,550)
Impairment charges of right-of-use assets	134	136
Stock-based compensation	4,518	3,682
Increase in cash surrender value of bank owned life insurance	(946)	(869)
Income from bank owned life insurance	0	(621)
Loss on sale of debt securities	974	994
Accretion of net discounts and deferred loan fees	(1,972)	(3,793)
Net decrease in other items	(844)	(1,182)
Net cash provided by operating activities	33,102	13,352
INVESTING ACTIVITIES
Proceeds from bank owned life insurance death benefits	0	1,366
Proceeds from sale of debt securities available for sale	37,731	22,455
Proceeds from maturities and paydowns of debt securities available for sale	10,618	11,184
Proceeds from maturities and paydowns of debt securities held to maturity	0	74
Purchases of debt securities available for sale	(63,639)	(101,092)
Purchases of debt securities held to maturity	0	(54,267)
Net purchase of stock investments	(4,051)	(5,010)
Net fundings of loans	(59,334)	(390,686)
Proceeds from sale of loans held for investment	50	450
Proceeds from sales of premises and equipment	0	3,911
Purchases of premises and equipment	(302)	(1,081)
Net cash used in investing activities	(78,927)	(512,696)
FINANCING ACTIVITIES
Net increase (decrease) in deposits	11,620	(41,244)
Proceeds of Federal Home Loan Bank advances	92,000	50,000
Repayment of Federal Home Loan Bank advances	(57,000)	0
Repayment of other borrowings	0	(3,093)
Proceeds from exercise of stock options	127	1,009
Repurchase of common shares	(889)	(574)
Net cash provided by financing activities	45,858	6,098
Net change in cash and cash equivalents	33	(493,246)
Cash and cash equivalents at beginning of year	86,760	580,006
Cash and cash equivalents at end of year	86,793	86,760
Supplemental Disclosures of Cash Flow Information:
Interest paid	29,027	5,552
Taxes paid	12,373	7,954
Lease liability arising from obtaining right-of-use assets	3,193	4,349
Net assets acquired in business combination:
Fair value of net assets acquired	0	(1,019)
Goodwill adjustments	$ 0	$ 1,019

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Southern California Bancorp is a California corporation incorporated on October 2, 2019 and is registered with the Board of Governors of the Federal Reserve System as a bank holding company for Bank of Southern California, N.A. under the Bank Holding Company Act of 1956, as amended. On May 15, 2020, the Company completed a reorganization whereby Bank of Southern California, N.A. became a wholly-owned subsidiary of the Company. Bank of Southern California, N.A. began business operations in December 2001 under the name Ramona National Bank. The Bank changed its name to First Business Bank, N.A. in 2006 and to Bank of Southern California, N.A. in 2010. The Bank operates under a federal charter and its primary regulator is the Office of the Comptroller of the Currency (“OCC”). The words “we,” ”us,” ”our,” or the ”Company” refer to Southern California Bancorp and Bank of Southern California, N.A. collectively and on a consolidated basis. References herein to “Southern California Bancorp,” “SCB,” “Bancorp” or the “holding company,” refer to Southern California Bancorp on a stand-alone basis. References to the “Bank” refer to Bank of Southern California, N.A. As a relationship-focused community bank, the Bank offers a range of financial products and services to individuals, professionals, and small- to medium-sized businesses through its 13 branch offices serving Orange, Los Angeles, San Diego and Ventura counties, as well as the Inland Empire. Many of the banking offices have been acquired through a number of acquisitions. On May 11, 2023, our common stock became listed on the Nasdaq Capital Market under the symbol BCAL. Prior to that date, our common stock was quoted under the same symbol on the OTC Pink Open Market. Basis of Presentation The accompanying consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-K and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for financial reporting. Certain reclassifications have been made to the December 31, 2022 consolidated financial statements to conform to the 2023 presentation. These reclassifications included $506 thousand of the provision for loan losses on unfunded commitments previously reported in noninterest expense was reclassified to provision for credit losses in the accompanying consolidated statements of income. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change are the determination of the allowance for credit losses, the fair value of assets and liabilities acquired in business combinations and related purchase price allocation, the valuation of acquired loans, the valuation of goodwill and separately identifiable intangible assets associated with mergers and acquisitions, loan sales and servicing of financial assets and deferred tax assets and liabilities. Operating Segments We operate one reportable segment — commercial banking. The factors considered in making this determination include all of the banking products and services offered by the Company are available in each branch of the Company, all branches are located within the same economic environment, management does not allocate resources based on the performance of different lending or transaction activities and how information is reviewed by the chief executive officer and other key decision makers. As a result, we determined that all services we offer relate to commercial banking. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, and federal funds and interest-bearing balances represent primarily cash held at the Federal Reserve Bank of San Francisco, Pacific Coast Bankers’ Bank and Federal Home Loan Bank of San Francisco. The Board of Governors of the Federal Reserve System (“Federal Reserve”) has cash reserve requirements for depository institutions based on the amount of deposits held. At December 31, 2023, the Bank had no required cash balance held by the Federal Reserve. The Company maintains amounts due from banks that exceed federally insured limits. The Company has not experienced any losses in such accounts. Debt Securities Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities classified as held-to-maturity securities are carried at amortized cost. Debt securities classified as “available-for-sale” may be sold prior to maturity due to changes in interest rates, prepayment risks, and availability of alternative investments, or to meet our liquidity needs. Debt securities not classified as held-to-maturity securities nor as available-for-sale securities are classified as trading securities. Available-for-sale debt securities and trading debt securities are recorded at fair value. Unrealized gains or losses on available-for-sale securities are excluded from net income and reported as an amount net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Premiums or discounts on held-to-maturity and available-for-sale debt securities are amortized or accreted into income using the interest method. Realized gains or losses on sales of held-to-maturity or available-for-sale securities are recorded using the specific identification method. Debt securities held-to-maturity and available-for-sale are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When debt securities held-to-maturity and available-for-sale are placed on nonaccrual status, unpaid interest recognized as interest income is reversed. Prior to January 1, 2023, Management evaluated securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: OTTI related to credit loss, which must be recognized in the income statement and OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The related write-downs are included in earnings as realized losses. Effective January 1, 2023, upon the adoption of ASU 2016-13, both held-to-maturity debt securities and available-for-sale debt securities are subject to the current expected credit losses (“CECL”) methodology. The assessment of expected credit losses for held-to-maturity debt securities under CECL is performed on a collective basis when similar risk characteristics exist, and expected credit losses must be recognized at the time of purchase or designation. CECL requires the consideration of credit losses even when the risk of loss is remote. The assessment of expected credit losses for available-for-sale debt securities is performed on an individual security basis, whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. Restricted Stock Investments The Bank is a member of the Federal Home Loan Bank (”FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors. In addition, the Bank is a member of its regional Federal Reserve. FHLB and Federal Reserve stock are carried at cost, classified as a restricted stock, at cost, in the consolidated balance sheets and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as interest and dividends on other interest-earning assets in the accompanying consolidated statements of income. Other Equity Securities Without A Readily Determinable Fair Value The Company also has restricted securities in the form of capital stock invested in two different banker’s bank stocks and other limited partnership investments. These investments do not have a readily determinable fair value, and they are measured at equity method of accounting when its ownership interest in such investments exceed 5% or carried at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer. Investments in tax credit are recorded net of accumulated amortization, using the proportional amortization method. Any impairment will be recorded through earnings. These investments are included in other assets in the accompanying consolidated balance sheets. Loans Held for Sale Loans held for sale are comprised of SBA loans originated and intended for sale in the secondary market. These loans are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains or losses realized on the sales of SBA loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the carrying value of the loans sold, adjusted for any servicing asset or liability. Gains and losses on sales of SBA loans are included in gain on sale of loans in the accompanying consolidated statements of income. Loans Held for Investment Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances reduced by any charge-offs and net of any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Purchase discounts and premiums and net deferred loan origination fees and costs on loans are accreted or amortized in interest income as an adjustment of yield, using the interest method, over the expected life of the loans. Amortization of deferred loan fees and costs are discontinued when a loan is placed on nonaccrual status. Nonaccrual Loans Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is generally discontinued when principal or interest is past due 90 days based on the contractual terms of the loan or earlier when, in the opinion of management, there is reasonable doubt as to collectability. On a case-by-case basis, loans past due 90 days may remain on accrual, if the loan is well collateralized, actively in process of collection and, in the opinion of management, likely to be paid current within the next payment cycle. When loans are placed on nonaccrual status, all interest previously accrued but not collected is generally reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Interest accruals are resumed on such loans only when they are brought current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectable as to all principal and interest. Allowance for Credit Losses (“ACL”) Loans held for investment — An ACL on loans is the Company’s estimate of expected lifetime credit losses for its loans held for investment at the time of origination or acquisition and is maintained at a level deemed appropriate by management to provide for expected lifetime credit losses in the portfolio. The ACL on loans consists of: (i) a specific allowance established for current expected credit losses on loans individually evaluated, (ii) a quantitative allowance for current expected credit losses based on the portfolio and expected economic conditions over a reasonable and supportable forecast period that reverts back to long-term trends to cover the expected life of the loan, (iii) a qualitative allowance including management judgment to capture factors and trends that are not adequately reflected in the quantitative allowance, and (iv) the ACL for off-balance sheet credit exposure for unfunded loan commitments (described in Allowance for Credit Losses - Off-Balance Sheet Credit Exposure). The ACL on loans held for investment represents the portion of the loans’ amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loans’ contractual life. Amortized cost does not include accrued interest, which management elected to exclude from the estimate of expected credit losses. Provision for credit losses for loans held for investment is included in provision for credit losses in the consolidated statements of income. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Subsequent recoveries, if any, are credited to the ACL. Credit losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income. Estimating expected credit losses requires management to use relevant forward-looking information, including the use of reasonable and supportable forecasts. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. The Company measures the ACL on loans using a discounted cash flow methodology, which utilizes pool-level assumptions and cash flow projections on an individual loan basis, which is then aggregated at the portfolio segment level and supplemented by a qualitative reserve that is applied to each portfolio segment level. The Company’s loan portfolio consists of the following segments, based on regulatory call codes and related risk ratings: Construction and land development loans are typically adjustable rate residential and commercial construction loans to builders, developers and other investors, with terms generally limited to 12 to 36 months. These loans generally require payment in full upon the sale or refinance of the property. Construction and development loans generally carry a higher degree of risk because repayment depends on the ultimate completion of the project and usually on the subsequent sale or refinance of the property, unless the project is user-owned which may then convert to a conventional term loan. Specific material risks may include (i) unforeseen delays in the building or the project, (ii) cost overruns or inadequate contingency reserves, (iii) poor management of construction process, (iv) inferior or improper construction techniques, (v) changes in the economic environment during the construction period, (vi) a downturn in the real estate market, (vii) rising interest rates which may impact the sale of the property and its price, and (viii) failure to sell or stabilize completed projects in a timely manner. The Company attempts to reduce risks associated with construction and land development loans by obtaining personal guarantees and by keeping the maximum loan-to-value (“LTV”) ratio at or below 75%, depending on the project type. Many of the construction and land development loans include interest reserves built into the loan commitment. For owner-occupied commercial construction loans, periodic cash payments for interest are required from the borrower’s cash flow. Real estate loans are secured by single family residential properties (one to four units), multifamily residential properties (five or more units), owner-occupied CRE, and non-owner-occupied CRE. Real estate loans are subject to the same general risks as other loans and may also be impacted by changing demographics, collateral maintenance, and product supply and demand. Rising interest rates, as well as other factors arising after a loan has been made, could negatively affect not only property values but also a borrower’s cash flow, creditworthiness, and ability to repay the loan. Increasing interest rates can impact real estate values as rising rates generally cause a similar movement in capitalization rates which can cause real estate collateral values to decline. The Company usually obtains a security interest in real estate, in addition to any other available collateral, in order to increase the likelihood of the ultimate repayment of the loan. The Company does not underwrite closed-end term consumer loans secured by a borrower’s residence. Junior liens may be considered in connection with a consumer home equity line of credit (“HELOC”), or as additional collateral support for SBA and other business loans. The Company’s commercial and industrial (“C&I”) loans are generally made to businesses located in the Southern California region and surrounding communities. These loans are made to finance operations, to provide working capital, or for specific purposes such as to finance the purchase of assets or equipment or to finance accounts receivable and inventory. The Company’s C&I loans may be secured (other than by real estate) or unsecured. They may take the form of single payment, installment, or lines of credit. These loans are generally based on the financial strength and integrity of the borrower and guarantor(s) and generally (with some exceptions) are collateralized by short-term assets such as accounts receivable, inventory, equipment, or a borrower’s other business assets. Commercial term loans are typically made to provide working capital to finance the acquisition of fixed assets, refinance short-term debt originally used to purchase fixed assets or, in rare cases, to finance the purchase of businesses. Consumer loans consist of loans to individuals for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. Consumer loans are underwritten based on the borrower’s income, current debt level, past credit history, and the availability and value of collateral. Consumer rates are both fixed and variable, with negotiable terms. The Company’s installment loans typically amortize over periods up to 5 years. Although the Company typically requires monthly payments of interest and a portion of the principal on its loan products, the Company will offer consumer loans with a single maturity date when a specific source of repayment is available. Consumer loans are generally considered to have greater risk than first or second mortgages on real estate because they may be unsecured, or, if they are secured, the value of the collateral may be difficult to assess and more likely to decrease in value than real estate. The Company’s ACL model incorporates assumptions for prepayment/curtailment rates, probability of default (“PD”), and loss given default (“LGD”) to project each loan’s cash flow throughout its entire life cycle. An initial reserve amount is determined based on the difference between the amortized cost basis of each loan and the present value of all future cash flows. The initial reserve amount is then aggregated at loan segment level to derive the segment level quantitative loss rates. For prepayment and curtailment rates, the Company utilized Abrigo’s benchmark since the adoption on January 1, 2023 through the second quarter of 2023 and switched to the Company’s own historical prepayment and curtailment experience covering from December 2020 through August 2023 beginning September 2023. Quarterly PD is forecasted using a regression model that incorporates certain economic variables as inputs. The LGD is derived from PD using the Frye-Jacobs index provided by the Company’s third-party model provider. Reasonable and supportable forecasts are used to predict current and future economic conditions. Management elected to use a four quarter reasonable and supportable forecast period followed by an eight quarter straight-line reversion period. After twelve quarters of forecast plus reversion period, the probability of default is assumed to remain unchanged for the remaining life of the loan. The Company uses numerous key macroeconomic variables within the economic forecast scenarios from Moody’s Analytics. These economic forecast scenarios are based on past events, current conditions, and the likelihood of future events occurring. These scenarios include a baseline forecast which represents their best estimate of future economic activity. Moody’s Analytics also provides nine alternative scenarios, including five direct variations of the baseline scenario and four more extensive departures from their baseline forecast, including a slower growth, a stagflation, a next cycle recession and a low oil price scenario. Management recognizes the non-linearity of credit losses relative to economic performance and believes the use of multiple probability-weighted economic scenarios is appropriate in estimating credit losses over the forecast period. This approach is based on certain assumptions. The first assumption is that no single forecast of the economy, however detailed or complex, is completely accurate over a reasonable forecast timeframe and is subject to revisions over time. By considering multiple scenarios, management believes some of the uncertainty associated with a single scenario approach can be mitigated. Management periodically evaluates economic scenarios, determines whether to utilize multiple probability-weighted scenarios in the Company’s ACL model, and, if multiple scenarios are utilized, evaluates and determines the weighting for each scenario used in the Company’s ACL model, and thus the scenarios and weightings of each scenario may change in future periods. Economic scenarios as well as assumptions within those scenarios can vary based on changes in current and expected economic conditions. The ACL process involves subjective and complex judgments and is reflective of significant uncertainties that could potentially result in materially different results under different assumptions and conditions. In addition to the aforementioned quantitative model, management periodically considers the need for qualitative adjustments to the ACL. Such qualitative adjustments may be related to and include, but are not limited to factors such as: differences in segment-specific risk characteristics, periods wherein current conditions and reasonable and supportable forecasts of economic conditions differ from the conditions that existed at the time of the estimated loss calculation, model limitations and management’s overall assessment of the adequacy of the ACL. Qualitative risk factors are periodically evaluated by management. Generally, the measurement of the ACL is performed by collectively evaluating loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated individually for credit loss and are not included in the evaluation process discussed above. Expected credit losses on all individually evaluated loans are measured, primarily through the evaluation of estimated cash flows expected to be collected, or collateral values measured by reference to an observable market value, if one exists, or the fair value of the collateral for a collateral-dependent loan. The Company selects the measurement method on a loan-by-loan basis except that collateral-dependent loans for which foreclosure is probable are measured at the net realizable value of the collateral. Cash receipts on individually evaluated loans for which the accrual of interest has been discontinued are applied first to principal and then to interest income. Prior to the adoption of ASC Topic 326, individually evaluated loans were referred to as impaired loans. Amounts are charged-off when available information confirms that specific loans or portions thereof, are uncollectible. This methodology for determining charge-offs is consistently applied to each loan segment. Loans with terms that have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are evaluated for an ACL utilizing one of the methodologies above. Held-to-Maturity Debt Securities — An ACL is established for losses on held-to-maturity debt securities at the time of purchase or designation, and is updated each period to reflect management’s expectations of CECL as of the date of the consolidated balance sheets. The ACL is estimated collectively for groups of debt securities with similar risk characteristics, and is determined at the individual security level when the Company deems a security to no longer possess shared risk characteristics. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. For debt securities where the Company has reason to believe the credit loss exposure is remote, a zero credit loss assumption is applied. Such debt securities were municipal securities, and historically have had limited credit loss experience. The Company does not anticipate any credit related losses in this investment portfolio. Changes in the ACL on held-to-maturity debt securities are recorded as a component of the provision for credit losses in the consolidated statements of income. Losses are charged against the ACL when management believes the lack of collectibility of a held-to-maturity debt security is confirmed. Available-for-Sale Debt Securities — An ACL is established for losses on available-for-sale debt securities on an individual basis, whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. The portion of the decline attributable to credit losses is recognized through an ACL, and changes in the ACL on available-for-sale debt securities are recorded as a component of the provision for credit losses in the consolidated statements of income. The portion of decline in fair value below the amortized cost basis not attributable to credit is recognized through other comprehensive income (loss), net of applicable taxes. Off-Balance Sheet Credit Exposures — The Company also maintains a separate allowance for credit losses for off-balance sheet commitments, which totaled $933 thousand and $1.3 million at December 31, 2023 and 2022, respectively. Beginning January 1, 2023, management estimates anticipated losses using expected loss factors consistent with those used for the ACL methodology for loans described above, and utilization assumptions based on historical experience. Provision for credit losses for off-balance sheet commitments is included in provision for credit losses in the consolidated statements of income and added to the allowance for off-balance sheet commitments, which is included in accrued interest payable and other liabilities in the consolidated balance sheets. Loan Modifications, Refinancings and Restructurings Prior to the adoption of ASU 2022-02, a loan was classified as a TDR when the Company granted a concession to a borrower experiencing financial difficulties that it otherwise would not consider under its normal lending policies under ASC Subtopic 310-40, Troubled Debt Restructurings by Creditors. Upon the adoption of ASU 2022-02 on January 1, 2023, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. The Company considers some of the indicators that a borrower is experiencing financial difficulty to be: currently in payment default on any of their debt, declaring bankruptcy, having issues continuing as a going concern, insufficient cash flow to service all debt service requirements, inability to obtain funds from other sources at a market rate for similar debt to non-troubled borrowers, and currently classified as substandard loans that are categorized as having well-defined weaknesses. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. If the refinancing or restructuring is deemed to be a new loan, unamortized net fees or costs from the original loan and any prepayment penalties are recognized in interest income when the new loan is granted. In addition, a new effective interest rate will be determined. If the refinancing or restructuring is deemed to be a modification, the investment in the new loan is comprised of the remaining net investment in the original loan, any additional funds advanced to the borrower, any fees received, and direct loan origination costs associated with the refinancing or restructuring. The effective interest rate of the loan is recalculated based upon the amortized cost basis of the new loan and its revised contractual cash flows. A modification may vary by program and by borrower-specific characteristics, and may include interest rate reductions, principal forgiveness, term extensions, payment delays and any combinations of the above, and is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company applies the same credit loss methodology it uses for similar loans that were not modified. GAAP requires that certain types of modifications be reported, which consist of (1) principal forgiveness; (2) interest rate reduction; (3) other-than-insignificant payment delay; (4) term extension; and any combination of the above. Since adoption of ASU 2022-02 on January 1, 2023, the Company did not have any loan modifications under ASU 2022-02. At December 31, 2022, the Company did not have any loans that have been modified and classified as TDRs under previous GAAP. Other Real Estate Owned Real estate acquired by foreclosure or deed in lieu of foreclosure is recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis by a charge to the ALL, if necessary. Subsequent to foreclosure, OREO is carried at the lower of the Company’s carrying value of the property or its fair value, less estimated carrying costs and costs of disposition. Fair value is generally based on current appraisals, which are frequently adjusted by management to reflect current conditions and estimated selling costs. Write-downs are expensed and recognized as a valuation allowance. Operating expenses of such properties, net of related income, and gains and losses on their disposition are included in other operating expenses. There were no foreclosures in process as of December 31, 2023 and 2022. Bank Owned Life Insurance Bank owned life insurance is recorded at the amount th

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	INVESTMENT SECURITIES Debt Securities Debt securities have been classified as either held-to-maturity or available-for-sale in the consolidated balance sheets according to management’s intent. The amortized cost of held-to-maturity debt securities and their estimated fair values at December 31, 2023 and 2022 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair December 31, 2023 Taxable municipal $ 551 $ — $ (73) $ 478 Tax exempt bank-qualified municipals 53,065 25 (3,136) 49,954 $ 53,616 $ 25 $ (3,209) $ 50,432 December 31, 2022 Taxable municipal $ 550 $ — $ (105) $ 445 (dollars in thousands) Amortized Cost Gross Gross Estimated Fair Tax exempt bank-qualified municipals 53,396 — (5,935) 47,461 $ 53,946 $ — $ (6,040) $ 47,906 The amortized cost of available-for-sale debt securities and their estimated fair values at December 31, 2023 and 2022 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair December 31, 2023 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 77,031 $ 631 $ (3,228) $ 74,434 SBA securities 5,886 5 (109) 5,782 U.S. Treasury 2,760 — (343) 2,417 U.S. Agency 2,000 — (330) 1,670 Collateralized mortgage obligations 46,330 173 (3,002) 43,501 Taxable municipal 1,528 — (107) 1,421 Tax exempt bank-qualified municipals 831 — (21) 810 $ 136,366 $ 809 $ (7,140) $ 130,035 December 31, 2022 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 27,029 $ — $ (3,734) $ 23,295 SBA securities 7,988 16 (132) 7,872 U.S. Treasury 6,652 — (700) 5,952 U.S. Agency 7,025 — (842) 6,183 Collateralized mortgage obligations 47,778 20 (3,375) 44,423 Taxable municipals 4,403 36 (211) 4,228 Tax exempt bank-qualified municipals 20,777 163 (313) 20,627 $ 121,652 $ 235 $ (9,307) $ 112,580 During the years ended December 31, 2023 and 2022, there were no transfers between held-to-maturity and available-for-sale debt securities. At December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of our shareholders’ equity. Accrued interest receivable on held-to-maturity and available-for-sale debt securities totaled $788 thousand and $1.1 million at December 31, 2023 and 2022, respectively, and is included within accrued interest receivable and other assets in the consolidated balance sheets. Accrued interest receivable is excluded from the ACL. At December 31, 2023, held-to-maturity debt securities with an amortized cost of $53.6 million were pledged to the Federal Reserve Bank as collateral for a $47.3 million line of credit. There were no debt securities pledged at December 31, 2022. See Note 8 – Borrowing Arrangements for additional information regarding the FHLB and Federal Reserve secured lines of credit. Contractual Maturities The amortized cost and estimated fair value of all held-to-maturity and available-for-sale debt securities as of December 31, 2023 by contractual maturities 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. Held-to-Maturity Available-for-Sale (dollars in thousands) Amortized Estimated Fair Amortized Estimated Fair Due in one year or less $ — $ — $ 520 $ 513 Due after one year through five years — — 5,608 5,122 Due after five years through ten years 12,915 12,297 20,219 18,066 Due after ten years 40,701 38,135 110,019 106,334 $ 53,616 $ 50,432 $ 136,366 $ 130,035 Realized Gains and Losses The following table presents gross realized gains and losses, and related proceeds, for sales and calls of available-for-sale debt securities for the years ended December 31, 2023 and 2022: (dollars in thousands) 2023 2022 Gross gains on sales and calls $ 209 $ — Gross losses on sales and calls (1,183) (994) Loss on sale of available-for-sale debt securities $ (974) $ (994) Proceeds from sales and calls $ 37,737 $ 22,455 Unrealized Gains and Losses The gross unrealized losses and related estimated fair values of all available-for-sale debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022 are summarized as follows: Less than 12 Months 12 Months or Longer Total (dollars in thousands) Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses Estimated December 31, 2023: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (160) $ 23,738 $ (3,068) $ 20,951 $ (3,228) $ 44,689 SBA securities (8) 2,193 (101) 1,790 (109) 3,983 U.S. Treasury — — (343) 2,417 (343) 2,417 Agency — — (330) 1,670 (330) 1,670 Collateralized mortgage obligations (311) 15,684 (2,691) 23,360 (3,002) 39,044 Taxable municipals — — (107) 921 (107) 921 Tax exempt bank-qualified municipals — — (21) 810 (21) 810 $ (479) $ 41,615 $ (6,661) $ 51,919 $ (7,140) $ 93,534 December 31, 2022: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (1,337) $ 9,888 $ (2,397) $ 13,407 $ (3,734) $ 23,295 SBA securities (1) 202 (131) 2,258 (132) 2,460 U.S. Treasury (277) 3,563 (423) 2,389 (700) 5,952 Agency (51) 474 (791) 5,709 (842) 6,183 Collateralized mortgage obligations (2,169) 35,331 (1,206) 6,029 (3,375) 41,360 Taxable municipals (75) 3,318 (136) 373 (211) 3,691 Tax exempt bank-qualified municipals (313) 14,081 — — (313) 14,081 $ (4,223) $ 66,857 $ (5,084) $ 30,165 $ (9,307) $ 97,022 As of December 31, 2023, the Company had a total of 76 available-for-sale debt securities in a gross unrealized loss position totaling $7.1 million, consisting of 58 securities with total unrealized losses of $6.7 million that had been in a continual loss position for twelve months and over. As of December 31, 2022, the Company had a total of 88 available-for-sale debt securities in a gross unrealized loss position totaling $9.3 million, consisting of 43 securities with total unrealized losses of $5.1 million that had been in a continual loss position for twelve months and over. Such unrealized losses on these investment securities have not been recognized into income. Unrealized losses on available-for-sale debt securities are recognized in shareholders’ equity as accumulated other comprehensive loss. At December 31, 2023, the Company had a net unrealized loss on available-for-sale debt securities of $6.3 million, or $4.5 million net of tax in accumulated other comprehensive loss, compared to a net unrealized loss of $9.1 million, or $6.4 million net of tax in accumulated other comprehensive loss, at December 31, 2022. Allowance for Credit Losses on Debt Securities For available-for-sale debt securities with unrealized losses, management considered the financial condition of the issuer and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. The Company’s available-for-sale debt securities consisted of U.S. Treasury, U.S. government and agency and government sponsored enterprise securities, and municipals, which historically have had limited credit loss experience. In addition, the Company reviewed the credit rating of the municipal securities. At December 31, 2023, the total fair value of taxable municipal and tax exempt bank-qualified municipal securities was $1.4 million and $810 thousand, respectively. At December 31, 2023, these securities rated AA and above totaled $1.4 million and rated A+ totaled $810 thousand. At December 31, 2023, 58 held-to-maturity debt securities with fair values totaling $48.3 million had gross unrealized losses totaling $3.2 million, compared to 61 held-to-maturity debt securities with fair values totaling $47.9 million had gross unrealized losses totaling $6.0 million at December 31, 2022. The Company has the intent and ability to hold the securities classified as held-to-maturity until they mature, at which time the Company will receive full value for the securities. The held-to-maturity debt securities only consisted of the municipal securities. At December 31, 2023, these held-to-maturity debt securities rated AA and above totaled $47.0 million and rated AA- totaled $3.4 million. Management evaluates securities in an unrealized loss position at least on a quarterly basis, and determined that the unrealized losses at December 31, 2023 related to each investment were primarily attributable to factors other than credit related, including changes in interest rates driven by the Federal Reserve’s policy to fight against inflation and general volatility in market conditions. As such, the Company applied a zero credit loss assumption for these securities and no provision for credit losses was recorded for held-to-maturity or available-for-sale debt securities during the year ended December 31, 2023. At December 31, 2022, management evaluated held-to-maturity and available-for-sale debt securities for OTTI, taking into consideration the extent and length of time the fair value has been less than cost, the financial condition of the issuer and whether the Company has the intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2022, no unrealized losses were deemed to be other-than-temporary. Restricted Stock As a member of the Federal Reserve System, the Company must hold stock of the Federal Reserve Bank of San Francisco in an amount equal to 3% of the Company’s common stock and additional paid-in capital. In addition, as a member of the Federal Home Loan Bank (“FHLB”) of San Francisco, the Company is required to own stock of the FHLB based on the Company’s outstanding mortgage assets and outstanding advances from the FHLB. The table below summarizes the Company’s restricted stock investments at December 31: (dollars in thousands) 2023 2022 Federal Reserve Bank $ 7,430 $ 7,318 Federal Home Loan Bank 8,625 7,225 $ 16,055 $ 14,543 During the year ended December 31, 2023, the Company purchased $112 thousand of Federal Reserve Bank stock, and purchased $1.4 million of FHLB stock. Other Equity Securities Without A Readily Determinable Fair Value The Company also has equity securities in the form of capital stock invested in two different banker’s bank stocks which totaled $351 thousand at December 31, 2023 and 2022. These equity securities are reported in accrued interest receivable and other assets in the consolidated balance sheets. At December 31, 2023 and 2022, the Company evaluated the carrying value of these equity securities and determined that they were not impaired, and no loss related to changes in the fair value of these equity securities was recognized. The Company has other equity investments and an investment in a technology venture capital fund focused on the intersection of fintech and community banking. At December 31, 2023 and 2022, the balance of these investments, which is included in accrued interest receivable and other assets in the consolidated balance sheets, was $7.0 million and $4.6 million, respectively. These equity securities are measured using the equity method of accounting when the Company’s ownership interest in such investments exceeds 5%, or carried at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer. Cash distributions from the investments that are considered return of capital are recorded as a reduction of the Company’s investment. During the year ended December 31, 2023, the Company made $2.3 million of net capital contributions to these equity investments. During the year ended December 31, 2022, the Company made $2.8 million of net capital contributions to these equity investments. During the years ended December 31, 2023 and 2022, the Company evaluated the carrying value of these equity investments and determined they were not impaired, and no loss was recognized related to changes in the fair value. The Company has also invested in a limited partnership that operates affordable housing projects that qualify for and have received an allocation of federal and/or state low-income housing tax credits. This tax credit investment is reported in accrued interest receivable and other assets in the consolidated balance sheets, and is recorded net of accumulated amortization, using the proportional amortization method. Total estimated tax credits allocated and other benefits recognized, and proportional amortization expense recognized were $170 thousand, and $126 thousand, respectively for the year ended December 31, 2023. The aggregate funding commitment for this investment was $2.0 million at December 31, 2023 and 2022. The unfunded portion of these investments totaled $1.5 million and $1.9 million at December 31, 2023 and 2022, respectively, and is included in other liabilities in the consolidated balance sheets. For the years ended December 31, 2023 and 2022, the Company made capital contributions of $349 thousand, and $122 thousand, respectively. At December 31, 2023 and 2022, the Company evaluated the carrying value of this tax credit equity investment and determined it was not impaired, and no loss was recognized related to changes in the fair value.

LOANS AND ALLOWANCE FOR CREDIT

LOANS AND ALLOWANCE FOR CREDIT LOSSES	12 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
LOANS AND ALLOWANCE FOR CREDIT LOSSES	LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Held for Investment The Company’s loan portfolio consists primarily of loans to borrowers within its Southern California markets in San Diego, Orange, Ventura, Los Angeles, and Riverside counties, as well as the Inland Empire. Although the Company seeks to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses are among the principal industries in the Company’s market area. The Company’s loan portfolio in real estate secured credit represented 83% and 82% of total loans at December 31, 2023 and 2022, respectively. The Company also originates SBA loans either for sale to institutional investors or for retention in the loan portfolio. Loans identified as held for sale are carried at the lower of cost or market value and separately designated as such in the consolidated financial statements. A portion of the Company’s revenues are from origination of loans guaranteed by the SBA under its various programs and sale of the guaranteed portions of the loans. Funding for these loans depends on annual appropriations by the U.S. Congress. The composition of the Company’s loan portfolio at December 31 and 2022 was as follows: (dollars in thousands) 2023 2022 Construction and land development $ 243,521 $ 239,067 Real estate - other: 1-4 family residential 143,903 144,322 Multifamily residential 221,247 218,606 Commercial real estate and other 1,024,243 958,676 Commercial and industrial (1) 320,142 331,644 Consumer 4,386 5,458 Loans (2) 1,957,442 1,897,773 Allowance for credit losses - loans (22,569) (17,099) Net loans $ 1,934,873 $ 1,880,674 1. Includes PPP loans with total outstanding principal of $1.3 million and $3.6 million and net unearned fees of $31 thousand and $76 thousand at December 31, 2023 and 2022. 2. Loans held for investment includes net unearned fees of $2.3 million and $3.3 million and net unearned discount of $1.4 million and $1.8 million at December 31, 2023 and 2022. The Company has pledged $1.38 billion of loans with FHLB under a blanket lien, of which an unpaid principal balance of $893.8 million was considered as eligible collateral under this secured borrowing arrangement and loans with unpaid principal balances totaling $116.8 million were pledged as collateral under a secured borrowing arrangement with the Federal Reserve as of December 31, 2023. See Note 8 – Borrowing Arrangements for additional information regarding the FHLB and Federal Reserve Bank secured lines of credit. Loans Held for Sale At December 31, 2023 and 2022, the Company had loans held for sale, consisting of SBA 7(a) loans totaling $7.3 million and $9.0 million, respectively. The Company accounts for loans held for sale at the lower of carrying value or fair value. At December 31, 2023 and 2022, the fair value of loans held for sale totaled $7.8 million and $9.6 million, respectively. Credit Quality Indicators The Company categorizes loans using risk ratings based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. Larger, non-homogeneous loans such as CRE and C&I loans are analyzed individually for risk rating assessment. For purposes of risk classification, 1-4 Family Residential loans for investment purposes are evaluated with CRE loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass - Loans classified as pass include loans not meeting the risk ratings defined below. Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The risk category of loans by class of loans and origination year as of December 31, 2023 follows: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total December 31, 2023 Construction and land development Pass $ 25,113 $ 127,496 $ 71,199 $ 17,022 $ 2,071 $ 528 $ — $ — $ 243,429 Special mention — — — — — — — — — Substandard — — — — — 92 — — 92 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development 25,113 127,496 71,199 17,022 2,071 620 — — 243,521 Real estate - other: 1-4 family residential Pass 24,928 35,670 20,207 6,887 4,884 15,582 35,645 100 143,903 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1-4 family residential 24,928 35,670 20,207 6,887 4,884 15,582 35,645 100 143,903 Multifamily residential Pass 18,803 61,677 73,365 5,712 27,292 21,245 149 — 208,243 Special mention — — — — — — — — — Substandard — 13,004 — — — — — — 13,004 Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily residential 18,803 74,681 73,365 5,712 27,292 21,245 149 — 221,247 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Commercial real estate and other Pass 76,434 304,524 287,245 57,736 51,992 203,976 36,543 1,626 1,020,076 Special mention — 2,701 — — — — 295 — 2,996 Substandard — — — — — 1,171 — — 1,171 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate and other 76,434 307,225 287,245 57,736 51,992 205,147 36,838 1,626 1,024,243 Commercial and industrial Pass 46,701 70,658 12,883 7,095 8,266 13,715 153,712 1,877 314,907 Special mention — — — — — — — — — Substandard — 346 64 — 1,208 121 3,097 399 5,235 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and industrial 46,701 71,004 12,947 7,095 9,474 13,836 156,809 2,276 320,142 Consumer Pass 163 — 39 91 6 11 4,076 — 4,386 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 163 — 39 91 6 11 4,076 — 4,386 Total loans $ 192,142 $ 616,076 $ 465,002 $ 94,543 $ 95,719 $ 256,441 $ 233,517 $ 4,002 $ 1,957,442 Total loans Pass $ 192,142 $ 600,025 $ 464,938 $ 94,543 $ 94,511 $ 255,057 $ 230,125 $ 3,603 $ 1,934,944 Special mention — 2,701 — — — — 295 — 2,996 Substandard — 13,350 64 — 1,208 1,384 3,097 399 19,502 Doubtful — — — — — — — — — Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Loss — — — — — — — — — Total loans $ 192,142 $ 616,076 $ 465,002 $ 94,543 $ 95,719 $ 256,441 $ 233,517 $ 4,002 $ 1,957,442 A summary of gross charge-offs by class of loans and origination year for the year ended December 31, 2023 follows: Term Loans Gross Charge-offs by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Construction and land development $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - other: 1-4 family residential — — — — — (12) — — (12) Multifamily residential — (1,267) — — — — — — (1,267) Commercial real estate and other — — — — — — — — — Commercial and industrial — — — (15) — (9) — — (24) Consumer — — — — — — — — — Total loans $ — $ (1,267) $ — $ (15) $ — $ (21) $ — $ — $ (1,303) There were no loans classified as doubtful or loss at December 31, 2022. The risk category of loans by class of loans as of December 31, 2022 follows: (dollars in thousands) Pass Special Substandard Total December 31, 2022 Construction and land development $ 238,965 $ — $ 102 $ 239,067 Real estate - other: 1-4 family residential 143,284 999 39 144,322 Multifamily residential 218,606 — — 218,606 Commercial real estate and other 956,649 — 2,027 958,676 Commercial and industrial 323,999 6,057 1,588 331,644 Consumer 5,458 — — 5,458 $ 1,886,961 $ 7,056 $ 3,756 $ 1,897,773 Past Due Loans A summary of past due loans as of December 31, 2023 and 2022 follows: Accruing Loans (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Past Due Total Current Nonaccrual Total December 31, 2023 Construction and land development $ — $ — $ — $ — $ 243,521 $ — $ 243,521 Real estate - other: 1-4 family residential — — — — 143,903 — 143,903 Multifamily residential — — — — 208,243 13,004 221,247 Commercial real estate and other — — — — 1,024,243 — 1,024,243 Commercial and industrial 19 — — 19 320,123 — 320,142 Consumer — — — — 4,386 — 4,386 $ 19 $ — $ — $ 19 $ 1,944,419 $ 13,004 $ 1,957,442 Accruing Loans (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Past Due Total Current Nonaccrual Total December 31, 2022 Construction and land development $ — $ — $ — $ — $ 239,067 $ — $ 239,067 Real estate - other: 1-4 family residential — — — — 144,283 39 144,322 Multifamily residential — — — — 218,606 — 218,606 Commercial real estate and other — — — — 958,674 2 958,676 Commercial and industrial — — — — 331,644 — 331,644 Consumer — — — — 5,458 — 5,458 $ — $ — $ — $ — $ 1,897,732 $ 41 $ 1,897,773 Nonaccrual Loans A summary of total nonaccrual loans and the amount of nonaccrual loans with no related ACL as of December 31, 2023 and 2022 follows: December 31, 2023 December 31, 2022 (dollars in thousands) Total Nonaccrual Total Nonaccrual Construction and land development $ — $ — $ — $ — Real estate - other: 1-4 family residential — — 39 — Multifamily residential 13,004 13,004 — — Commercial real estate and other — — 2 — Commercial and industrial — — — — Consumer — — — — $ 13,004 $ 13,004 $ 41 $ — Collateral dependent Loans Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Estimates for costs to sell are included in the determination of the ACL when liquidation of the collateral is anticipated. In cases where the loan is well secured and the estimated value of the collateral exceeds the amortized cost of the loan, no ACL is recorded. At December 31, 2023, a $13.0 million multifamily residential loan was classified as a collateral dependent loan, and was collateralized by three investment multifamily properties. Based on the most recent appraisals, the combined "As-Is" collateral value, after accounting for estimated selling costs, the estimated net collateral value was lower than the loan’s net carrying value resulting in a $1.3 million charge-off during 2023. There were no collateral dependent loans at December 31, 2022. Allowance for Credit Losses - Loans On January 1, 2023, the Company adopted ASU 2016-13 using the modified retrospective method through a cumulative effect adjustment to retained earnings. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with the probable incurred loss accounting standards. The ACL consists of: (i) a specific allowance established for CECL on loans individually evaluated, (ii) a quantitative allowance for current expected loan losses based on the portfolio and expected economic conditions over a reasonable and supportable forecast period that reverts back to long-term trends to cover the expected life of the loan, and (iii) a qualitative allowance including management judgment to capture factors and trends that are not adequately reflected in the quantitative allowance. For prepayment and curtailment rates, the Company utilized a third-party vendor’s benchmark prepayment and curtailment rate since the adoption on January 1, 2023 through the second quarter of 2023. The Company switched to its own historical prepayment and curtailment experience covering the period from December 2020 through August 2023 to estimate the ACL beginning September 2023. Starting in the third quarter of 2023, the Company reduced the probability-weighted forecast from a three- scenario forecast to a two-scenario forecast, representing a base-case scenario and one downside scenario, to estimate the ACL. The stagflation scenario was removed. The Company utilized economic forecasts released by Moody’s Analytics during the second week of December 2023. These forecasts which suggested a modest improvement from the September 2023 forecasts in their outlook based on the current economic data, which included the impact of the financial system turmoil and related governmental and other reactions to the rising interest rate environment, ongoing inflationary pressures throughout the U.S. economy, general uncertainty concerning future economic conditions, and the potential for recessionary conditions. The underlying assumptions in the Moody’s economic forecasts supporting the baseline forecast remained consistent in the expectation that the Federal Reserve is done raising rates and will continue to reduce the Federal Reserve’s balance sheet through quantitative tightening at its current pace of $100 billion per month, ultimately reducing it from $8 trillion to $5 trillion. This resulted in a modest change in Moody’s expectation that the Federal Reserve will postpone its first rate drop from the fourth quarter of 2024 to the second quarter of 2024, and that a Fed funds rate of 5.25% combined with continued reductions in the Federal Reserve’s balance sheet will be sufficient to slow the economy and bring inflation back to the Federal Reserve’s target rate of 2% without tipping the economy into recession. The December 2023 forecast assumes that the federal government avoids a shutdown in the fourth quarter and remains in continuous operation through 2024. This change in assumption from September 2023 imparts a small boost to fourth-quarter GDP of around 0.2 percentage point. The outlook for Gross Domestic Product (“GDP”) growth was improved to 2.4% in 2023 and 1.7% in 2024. This is consistent with the Federal Reserve’s outlook for economic growth of 2.6% for 2023 and 1.4% for 2024, and consistent with the Conference Board’s forecast for GDP growth of 2.2% for 2023 but comes in higher than 0.9% for 2024. The Company also considered remarks made by Chairman Powell after the most recent Fed meeting and the Conference Board Forecast that was released on December 13, 2023 to support the review of the underlying assumptions supporting each Moody’s economic forecast scenario. Chairman Powell has recently noted that rates were likely at or near their peak for this tightening cycle. His remarks were in line with the Moody’s forecast. At the December 2023 meeting, the Fed held the Fed funds rate steady in its range of 5.25% to 5.5% for the third consecutive meeting. The Company reviewed assumptions underlying the stagflation scenario, which assumed that, in reaction to a resurgence in inflation, the Federal Reserve would raise the Fed funds rate another 300 basis points in the first quarter of 2024, tipping the economy into a more extreme recession leading to a 5.4% unemployment rate in the first quarter of 2024. Ultimately, in this scenario, the Federal Reserve is predicted to respond with more aggressive rate hikes in 2024, precipitating a deep recession beginning in the fourth quarter of 2024. The Company viewed the risks to these forecasts to include an aggressive rate hike in 2024, an unanticipated resurgence in inflation, a significant decline in consumer and business confidence, or additional geopolitical turmoil that could impact future economic activity. Given the current economic backdrop of a slowing economy driven by lower consumer, business and government spending, the end of all pandemic related stimulus, a softening labor market and an upcoming presidential election year, management continued to believe the assumptions underlying the stagflation scenario are more extreme, and highly unlikely to happen. The decision was made in September 30, 2023 to remove the stagflation scenario from the probability-weighted scenarios to estimate the ACL remained unchanged at December 31, 2023. Accrued interest receivable on loans receivable, net, totaled $6.4 million and $5.7 million at December 31, 2023 and 2022, respectively, and is included within accrued interest and other assets Allowance for Credit Losses - Unfunded Loan Commitments The allowance for credit losses for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. The Company evaluates the loss exposure for unfunded loan commitments to extend credit following the same principles used for the ACL, with consideration for experienced utilization rates on client credit lines and the inherently lower risk of unfunded loan commitments relative to disbursed commitments. The Company recognized a negative provision for unfunded loan commitments of $816 thousand for the year ended December 31, 2023 and a provision for unfunded loan commitments of $506 thousand for the year ended December 31, 2022. The provision for unfunded loan commitments is included in the provision for credit losses in the consolidated statements of income. The reserve for unfunded loan commitments was $933 thousand and $1.3 million at December 31, 2023 and 2022, respectively. The reserve for unfunded loan commitments is included in accrued interest and other liabilities in the consolidated balance sheets. A summary of the changes in the ACL for loans and unfunded commitments for the periods indicated follows: Year Ended (dollars in thousands) 2023 2022 Allowance for loan losses (ALL) Balance, beginning of period $ 17,099 $ 11,657 Adoption of ASU No. 2016-13 (1) 5,027 — Provision for loan losses 1,731 5,450 Charge-offs (1,303) (21) Recoveries 15 13 Net charge-offs (1,288) (8) Balance, end of period $ 22,569 $ 17,099 Reserve for unfunded loan commitments Balance, beginning of period $ 1,310 $ 804 Adoption of ASU No. 2016-13 (1) 439 — (Reversal of) provision for unfunded commitment losses (816) 506 Balance, end of period 933 1,310 Allowance for credit losses (ACL), end of period $ 23,502 $ 18,409 (1) Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, the Company’s methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology. A summary of changes in the ALL by loan portfolio segment for the periods indicated follows: (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Year Ended December 31, 2023 Beginning of period $ 2,301 $ 11,691 $ 3,079 $ 28 $ 17,099 Adoption of ASU No. 2016-13 (1) 881 2,983 1,132 31 5,027 (Reversal of) provision for loan losses (1,150) 2,885 40 (44) 1,731 Charge-offs — (1,279) (24) — (1,303) Recoveries — — 15 — 15 Net charge-offs — (1,279) (9) — (1,288) End of period $ 2,032 $ 16,280 $ 4,242 $ 15 $ 22,569 Year Ended December 31, 2022 Beginning of period $ 666 $ 8,441 $ 2,548 $ 2 $ 11,657 Provision for loan losses 1,635 3,250 539 26 5,450 Charge-offs — — (21) — (21) Recoveries — — 13 — 13 Net charge-offs — — (8) — (8) End of period $ 2,301 $ 11,691 $ 3,079 $ 28 $ 17,099 (1) Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, the Company’s methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology.

TRANSFERS AND SERVICING OF FINA

TRANSFERS AND SERVICING OF FINANCIAL ASSETS	12 Months Ended
	Dec. 31, 2023
Transfers and Servicing [Abstract]
TRANSFERS AND SERVICING OF FINANCIAL ASSETS	TRANSFERS AND SERVICING OF FINANCIAL ASSETS The Company has originated loans that are serviced for others, including loans partially guaranteed by the SBA, some of which have been sold in the secondary market, as well as CRE loans, C&I loans participated with various other financial institutions and the special purpose vehicle (“SPV”) participations for the Main Street loans. The loans serviced for others are accounted for as sales and are therefore not included in the accompanying consolidated balance sheets. Loans serviced for others totaled $58.8 million and $59.4 million at December 31, 2023 and 2022. This includes SBA loans serviced for others of $35.4 million at December 31, 2023, and $30.3 million at December 31, 2022, for which there was a related servicing asset of $546 thousand and $514 thousand, respectively. Consideration for each SBA loan sale includes the cash received and a related servicing asset. The Company receives servicing fees ranging from 0.25% to 1.00% for the services provided over the life of the loan. The servicing asset is based on the estimated fair value of these future cash flows to be collected. The risks inherent in SBA servicing assets primarily relates to accelerated prepayment of loans in excess of what was originally modeled driven by changes in interest rates and a reduction in the estimated future cash flows. The servicing asset activity includes additions from loan sales with servicing retained, and reductions from amortization as the serviced loans are repaid and servicing fees are earned. A summary of change in the SBA servicing asset for the years ended December 31, 2023 and 2022 follows: (dollars in thousands) 2023 2022 Balance, beginning of period $ 514 $ 170 Additions 216 422 Amortization (1) (184) (78) Balance, end of period $ 546 $ 514 (1) Amortization included accelerated amortization of $92 thousand and $40 thousand for the years ended December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, SBA 7(a) loans sold totaled $10.9 million, resulting in total gains on sale of SBA loans of $874 thousand. SBA 7(a) loans sold during the year ended December 31, 2022 totaled $20.0 million, resulting in total gains on sale of SBA loans of $1.3 million, respectively. The fair value of the servicing asset approximated the carrying value at December 31, 2023 and 2022, respectively. The significant assumptions used in the valuation of the SBA servicing asset at December 31, 2023 and 2022 included: (dollars in thousands) December 31, December 31, Discount rate: Range 10.5% – 26.2% 13.9% – 34.3% Weighted average 16.1% 19.1% Prepayment speed: Range 11.2% – 48.1% 9.7% – 41.2% Weighted average 19.0% 17.0% The following table presents the components of net servicing fees, included in servicing and related income on loans, net (dollars in thousands) 2023 2022 Contractually specified fees $ 410 $ 203 Amortization (184) (78) Net servicing fees $ 226 $ 125

PREMISES AND EQUIPMENT AND LEAS

PREMISES AND EQUIPMENT AND LEASES	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT AND LEASES	PREMISES AND EQUIPMENT AND LEASES A summary of premises and equipment as of December 31 follows: (dollars in thousands) 2023 2022 Land $ 5,386 $ 5,386 Building 4,766 4,766 Leasehold improvements 5,584 5,351 Furniture & fixtures 2,377 2,228 Computer & other equipment 3,732 3,648 21,845 21,379 Less: Accumulated depreciation and amortization (8,575) (7,045) Total $ 13,270 $ 14,334 Depreciation and amortization expense on premises and equipment was $1.5 million and $1.6 million for the years ended December 31, 2023 and 2022. During the year ended December 31, 2022, the Company sold a building and related fixed assets that were acquired as part of the Bank of Santa Clarita (“BSCA”) acquisition in 2021, and recorded a loss on sale of $768 thousand. Substantially all leases are operating leases for corporate offices and branch locations and loan production offices. The amount of the lease liability and ROU asset is impacted by the lease term and the discount rate applied to determine the present value of future lease payments. The remaining terms of operating leases range from 6 months to 9.5 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term by varying amounts. The exercise of renewal options is at the sole discretion of the Company. Renewal option periods were not included in the measurement of ROU assets and lease liabilities as they were not considered reasonably certain of exercise at commencement. During the year ended December 31, 2023, management decided to vacate the first floor of the branch office in Del Mar, California and recorded an impairment of ROU assets of $134 thousand. The impairment of the ROU assets was based on a discounted cash flow of lease payments net of sublease income. During the year ended December 31, 2022, the Company recognized $136 thousand impairment of ROU assets for the branch office in La Jolla, California. Management decided to halt the opening of a new branch office in La Jolla, California and the impairment charges are included in occupancy and equipment expenses in the consolidated statements of income. The ROU assets, lease liabilities and supplemental information at December 31 are shown below. (dollars in thousands) 2023 2022 Operating lease ROU assets $ 9,291 $ 8,607 Operating lease liability $ 12,117 $ 11,055 Weighted average remaining lease term, in years 5.49 5.69 Weighted average discount rate 5.6 % 5.6 % The Company’s lease expense is recorded in premises and occupancy expense in the consolidated statements of income. The following table presents the components of lease expense for the years ended December 31: (dollars in thousands) 2023 2022 Lease costs: Operating lease $ 2,894 $ 2,569 Short-term lease — 177 Total lease costs $ 2,894 $ 2,746 Other information: Cash paid for amounts included in lease liabilities $ 2,814 $ 2,615 ROU assets obtained for new operating lease obligations $ 3,193 $ 4,349 Lease liabilities as of December 31, 2023, mature as indicated below: (dollars in thousands) Amount Twelve months ending December 31: 2024 $ 2,727 2025 2,530 2026 2,355 2027 2,252 2028 1,884 Thereafter 2,297 Total future minimum lease payments 14,045 Less: imputed interest 1,928 Present value of net future minimum lease payments $ 12,117

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is the excess purchase price over the fair value of all identifiable assets and liabilities acquired and totals $37.8 million at December 31, 2023 and 2022. Goodwill is reviewed for impairment at least annually during the fourth quarter of each fiscal year. Due to the banking industry turmoil and the resulting volatility in our stock price during the first quarter of 2023, the Company performed an analysis of goodwill that consisted of quantitative assessments to determine if it was more likely than not that the carrying values of each reporting unit exceeded their estimated fair values. The results of these analyses indicated that no impairment of goodwill existed as of March 31, 2023. The Company performed a qualitative assessment for potential impairment as of December 31, 2023, and as a result of that assessment had determined that there has been no impairment to the goodwill. The following table presents changes in the carrying amount of goodwill for the periods indicated: (dollars in thousands) 2023 2022 Beginning of the year $ 37,803 $ 36,784 Adjustments to goodwill (1) — 1,019 End of year $ 37,803 $ 37,803 (1) During the year ended December 31, 2022, the Bank finalized its allocation of purchase consideration to the net assets acquired from BSCA resulting in a $1.0 million increase to goodwill. Core deposit intangibles are amortized over periods of 5.0 to 7.8 years. As of December 31, 2023, the weighted-average remaining amortization period for core deposit intangibles was approximately 6.1 years. The Company performed the annual impairment analysis for the core deposit intangibles during the third quarter of 2023. The results indicated there was an impairment in the savings account core deposit intangible acquired from Bank of Santa Clarita, which resulted in the acceleration of the remaining amortization of $38 thousand at September 30, 2023. The following table presents the changes in core deposit intangibles for the years ended December 31: (dollars in thousands) 2023 2022 Gross balance, beginning of year $ 4,185 $ 4,185 Additions — — Gross balance, end of year $ 4,185 $ 4,185 Accumulated amortization: Balance, beginning of year $ (2,601) $ (2,163) Amortization (389) (438) Balance, end of period (2,990) (2,601) Net core deposit intangible, end of year $ 1,195 $ 1,584 Future estimated amortization expense for each of the next five years is as follows: (dollars in thousands) Amount 2024 $ 258 2025 237 2026 217 2027 205 2028 134 Thereafter 144 $ 1,195

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2023
Deposits [Abstract]
DEPOSITS	DEPOSITS The Company offers the Insured Cash Sweep (“ICS”) product, providing customers with FDIC insurance coverage at ICS network institutions. As of December 31, 2023, ICS deposits increased to $274.1 million, or 14.1% of total deposits, compared to $65.5 million, or 3.4% of total deposits at December 31, 2022. Time deposits that exceeded the FDIC insurance limit of $250,000 amounted to $122.6 million and $84.6 million as of December 31, 2023 and 2022. Brokered time deposits totaled $107.8 million and $20.7 million as of December 31, 2023 and December 31, 2022, respectively. The Company participates in a state public deposits program that allows it to receive deposits from the state or from political subdivisions within the state in amounts that would not be covered by the FDIC. This program provides a stable source of funding to the Company. As of December 31, 2023 and 2022, total collateralized deposits, including the deposits of State of California and their public agencies, were $72.7 million and $14.4 million, respectively, and were collateralized by letters of credit issued by the FHLB under the Company’s secured line of credit with the FHLB. See Note 8 – Borrowing Arrangements for additional information regarding the FHLB secured line of credit. At December 31, 2023, the scheduled maturities of time deposits are as follows: (dollars in thousands) Amount 2024 $ 232,059 2025 13,610 2026 4,077 2027 73 2028 11 $ 249,830

BORROWING ARRANGEMENTS

BORROWING ARRANGEMENTS	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
BORROWING ARRANGEMENTS	BORROWING ARRANGEMENTS A summary of outstanding borrowings as of December 31 follows: (dollars in thousands) 2023 2022 FHLB advances $ 85,000 $ 50,000 Subordinated notes 17,865 17,770 Total borrowings $ 102,865 $ 67,770 Federal Home Loan Bank Secured Line of Credit At December 31, 2023, the Company had a secured line of credit of $499.2 million from the FHLB, of which $339.2 million was available. This secured borrowing arrangement is collateralized under a blanket lien on qualifying real estate loans and is subject to the Company providing adequate collateral and continued compliance with the Advances and Security Agreement and other eligibility requirements established by the FHLB. At December 31, 2023, the Company had pledged qualifying loans with an unpaid principal balance of $893.8 million for this line. In addition, at December 31, 2023, the Company used $75.0 million of its secured FHLB borrowing capacity by having the FHLB issue letters of credit to meet collateral requirements for deposits from the State of California and other public agencies. The Company had an overnight borrowing of $85 million with an interest rate of 5.70% and $50 million with an interest rate of 4.65% at December 31, 2023 and 2022, respectively. Federal Reserve Bank Secured Line of Credit At December 31, 2023, the Company had credit availability of $141.6 million at the Federal Reserve discount window to the extent of collateral pledged. At December 31, 2023, the Company had pledged held-to-maturity debt securities with an amortized cost of $53.6 million as collateral, and qualifying loans with an unpaid principal balance of $116.8 million as collateral through the Borrower-in- Custody (“BIC”) program. The Company had no discount window borrowings at December 31, 2023 and 2022. In March 2023, the Federal Reserve announced the creation of a new Bank Term Funding Program (“BTFP”) which provides an additional source of liquidity against high quality securities, in an effort to minimize the need for banks to quickly sell securities at a loss in times of stress. The BTFP offers advances for a term of up to one year to eligible borrowers that pledge U.S. Treasuries, agency debt, mortgage-backed securities, and other qualifying assets as collateral. The rate for term advances will be the one-year overnight index swap rate plus 10 basis points; the rate will be fixed for the term of the advance on the day the advance is made. Borrowers may prepay advances (including for purposes of refinancing) at any time without penalty. At December 31, 2023, the Company did not establish any borrowing capacity through the BTFP program. The program expires on March 11, 2024. On January 24, 2024, the Federal Reserve announced the BTFP will cease making new loans as scheduled on March 11, 2024. After expiration of the BTFP, depositories can access funds to manage liquidity risk through the Federal Reserve’s discount window. Federal Funds Unsecured Lines of Credit At December 31, 2023, the Company had three overnight unsecured credit lines from correspondent banks totaling $75.0 million. The lines are subject to annual review. There were no outstanding borrowings under these lines at December 31, 2023 and 2022. Fixed-to-Floating Rate Subordinated Notes On May 28, 2020, the Company issued $18 million of 5.50% Fixed-to-Floating Rate Subordinated Notes Due 2030 (the “Notes”). The Notes mature March 25, 2030 and accrue interest at a fixed rate of 5.50% through the fixed-rate period to March 26, 2025, after which interest accrues at a floating rate of 90-day SOFR plus 350 basis points, until maturity, unless redeemed early, at the Company’s option, after the end of the fixed-rate period. Issuance costs of $475 thousand were incurred and are being amortized over the first 5-year fixed term of the Notes; unamortized issuance costs at December 31, 2023 and 2022, were $135 thousand and $230 thousand, respectively. The net unamortized issuance costs are netted against the balance and recorded in borrowings in the consolidated balance sheets. The amortization expenses are recorded in the interest expense on the consolidated statements of income. At December 31, 2023, the Company was in compliance with all covenants and terms of the Notes. Junior Subordinated Debentures In the acquisition of CalWest Bancorp, the Company assumed $3.1 million of junior subordinated deferrable interest debentures (the “Junior Subordinated Debentures”) which were issued to CalWest Statutory Trust I (the “Trust”). The Company also acquired a 3% common interest in the Trust, which was comprised of mandatorily redeemable preferred securities. At acquisition, the Junior Subordinated Debentures were valued at a premium of $408 thousand which was included in the initial carrying value of subordinated securities, which was being amortized over the remaining term of the borrowing. The Junior Subordinated Debentures mature September 17, 2033. In June of 2022, the Company decided to fully redeem the Junior Subordinated Debentures before the maturity date. The Company recorded a loss of $347 thousand related to the unamortized premium at the time of early redemption in the other expenses of the consolidated statements of income for the year ended December 31, 2022.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The income tax expense for the years ended December 31, is comprised of the following: (dollars in thousands) 2023 2022 Current tax expense: Federal $ 6,791 $ 5,257 State 3,737 3,163 Total current tax expense 10,528 8,420 Deferred taxes: Federal 108 (1,631) State 310 (919) Total deferred taxes 418 (2,550) Total income tax expense $ 10,946 $ 5,870 A comparison of the federal statutory income tax rates to the Company’s effective income tax rates at December 31 follows: 2023 2022 (dollars in thousands) Amount Rate Amount Rate Statutory federal income tax provision $ 7,740 21.0 % $ 4,617 21.0 % State taxes 3,399 9.2 % 1,819 8.3 % Employee stock-based compensation (696) (1.9) % (163) (0.8) % Tax exempt interest income (314) (0.9) % (283) (1.3) % Excess Executive Compensation 895 2.4 % — 0.0 % Bank owned life insurance (199) (0.5) % (313) (1.4) % Net benefit related to tax credit equity investment (45) (0.1) % — 0.0 % Other 166 0.5 % 193 0.9 % $ 10,946 29.7 % $ 5,870 26.7 % For the years ended December 31, 2023 and 2022, income tax expense was $10.9 million and $5.9 million resulting in an effective income tax rate of 29.7% and 26.7%. Differences in the statutory tax rate of 29.6% for the years ended December 31, 2023 and 2022 as compared to the effective tax rate are a result of the tax effect of stock-based compensation, BOLI income, tax-exempt interest income, and excess executive compensation. There was no tax effect of excess executive compensation for the year ended December 31, 2022. The Company is subject to federal income and California franchise tax. Income tax returns for the years ended after December 31, 2019 are open to audit by federal authorities and income tax returns for the years ending after December 31, 2018 are open to audit by California authorities. There were no interest and penalties related to unrecognized tax benefits in income tax expense at December 31, 2023 and 2022. The total amount of unrecognized tax benefits was zero at December 31, 2023 and 2022. Deferred taxes are a result of differences between income tax accounting and generally accepted accounting principles with respect to income and expense recognition. The following is a summary of the components of the net deferred tax asset accounts recognized in the accompanying consolidated balance sheets at December 31: (dollars in thousands) 2023 2022 Deferred tax assets: Allowance for loan losses $ 6,661 $ 5,036 Organizational expenses 78 85 Stock-based compensation 959 1,203 Fair value adjustment on acquired loans 257 298 Net operating loss carryforward 1,431 1,544 Accrued expenses 867 718 California franchise tax 858 674 Operating Lease liabilities 3,582 3,268 Unrealized loss on securities available for sale 1,871 2,633 Other 534 388 Total deferred tax assets 17,098 15,847 Deferred tax liabilities: Deferred loan costs (1,092) (1,202) Core deposit intangibles (565) (649) Depreciation differences (994) (361) Right of use asset (2,747) (2,544) Other (563) (392) Total deferred tax liabilities (5,961) (5,148) Net deferred tax assets $ 11,137 $ 10,699 Section 382 of the Internal Revenue Code imposes an annual limitation on a corporation’s ability to use any net unrealized built-in losses and other tax attributes, such as net operating loss and tax credit carryforwards, when it undergoes a greater than 50% ownership change over a designated testing period not to exceed three years. On June 29, 2020, California Assembly Bill 85 (A.B. 85) was signed into law. A.B. 85 suspends the use of the net operating loss (“NOL”) for the 2020, 2021, and 2022 tax years. For NOL incurred in tax years before 2020 for which a deduction is denied, the carryover period is extended by three years. On February 9, 2022, Senate Bill 113 (“S.B. 113”) S.B. 113 was signed into law, and among other changes, S.B. 113 reinstates the California NOL deductions for tax years beginning in 2022, in effect shortening the suspension period for NOL deductions from A.B. 85 by one year. As a result of the acquisition of CalWest, the Company has federal and California Section 382 limited net operating loss carryforwards of approximately $4.6 million and $5.4 million at December 31, 2023, which are scheduled to begin expiring in 2029 for federal and 2031 for California. The federal and California net operating loss carryforwards are subject to annual limitations of $381 thousand each year. The Company expects to fully utilize the recorded federal and California net operating loss carryforwards before they expire.

EARNINGS PER SHARE (_EPS_)

EARNINGS PER SHARE (“EPS”)	12 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE (“EPS”)	EARNINGS PER SHARE (“EPS”) The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute EPS: (dollars in thousands, except share and per share data) 2023 2022 Net income $ 25,910 $ 16,113 Weighted average common shares outstanding - basic 18,246,164 17,821,545 Dilutive effect of outstanding: Stock options and unvested stock grants 410,578 406,742 Weighted average common shares outstanding - diluted 18,656,742 18,228,287 Earnings per common share - basic $ 1.42 $ 0.90 Earnings per common share - diluted $ 1.39 $ 0.88 The Company’s only performance based restricted stock grants were vested when the performance conditions had been met on March 1, 2023. A total of 275,171 performance based restricted stock grants were vested and included in the computation of basic EPS for the year ended December 31, 2023 because the performance conditions had been met, but they were excluded in the computation of diluted EPS for the year ended December 31, 2022 because the performance conditions had not been met. At December 31, 2023 and 2022, there were 71,508 and 160,809 restricted stock units and 6,460 and 24,842 stock options, respectively, that were not included in the computation of diluted earnings per share, because they were anti-dilutive.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company has granted loans to certain directors and their related interests with which they are associated. In the Company’s opinion, all loans and loan commitments to such parties are made on substantially the same terms including interest rates, and collateral, as those prevailing at the time for comparable transactions with unrelated clients. The balance of these loans outstanding and activity in related party loans for the periods ended December 31, 2023 and 2022 follows: (dollars in thousands) 2023 2022 Balance at beginning of year $ 8,073 $ 10,259 New credit granted — — Repayments (1) (2,145) (2,186) Balance at end of year $ 5,928 $ 8,073 (1) During the year ended December 31, 2022, one loan with outstanding balance of $636 thousand was paid off. Directors and related interests deposits at December 31, 2023 and 2022, amounted to approximately $16.4 million and $4.7 million. The Company leases the Ramona branch office from a principal shareholder and member of our Board of Directors under an operating lease expiring in 2027 on terms considered to be prevailing in the market at the time of the lease. Total lease expense for each of 2023 and 2022 was $44 thousand and $43 thousand and future minimum lease payments under the lease were $151 thousand as of December 31, 2023.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES In the ordinary course of business, the Company enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit and standby letters of credit. Those instruments involve to varying degrees, elements of credit and interest rate risk not recognized in the Company’s financial statements. Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Company evaluates each client’s credit worthiness on a case-by-case basis. Collateral may or may not be required based on management’s credit evaluation of the customer. The majority of the Company’s commitments to extend credit and standby letters of credit are secured by real estate. The Company’s exposure to loan loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for loans reflected in the consolidated financial statements. The Company had the following outstanding financial commitments whose contractual amount represents potential credit risk at December 31: (dollars in thousands) 2023 2022 Commitments to extend credit $ 405,854 $ 596,349 Letters of credit issued to customers 4,939 4,794 Commitments to contribute capital to other equity investments 3,170 6,041 $ 413,963 $ 607,184 The Company entered into deferred compensation agreements with certain key officers. Under these agreements, the Company is obligated to provide, upon retirement, a 10-year benefit to the officers. The annual benefits range from $20 thousand to $75 thousand. The estimated present value of future benefits to be paid is being accrued over the period from the effective date of the agreements until the expected retirement dates of the participants. The expense incurred for these agreements in 2023 and 2022 was $322 thousand and $328 thousand, respectively. The Company is a beneficiary of life insurance policies that have been purchased as a method of financing the obligated benefits under these agreements. In the normal course of business, the Company is named or threatened to be named as a defendant in various legal actions. The ultimate outcome with respect to these legal matters and claims cannot be determined. At this time, the Company believes that liability, if any, is not likely to be material to the consolidated balance sheets or consolidated statements of income.

STOCK-BASED COMPENSATION PLAN

STOCK-BASED COMPENSATION PLAN	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION PLAN	STOCK-BASED COMPENSATION PLAN In contemplation of the holding company reorganization, in November 2019 the Company’s Board of Directors adopted the Southern California Bancorp 2019 Omnibus Equity Incentive Plan (the “2019 Plan”). The 2019 Plan was approved by shareholders in April 2020 with a maximum number of shares of common stock that may be issued or paid out under the plan of 2,200,000. In addition, upon the completion of the bank holding company reorganization in 2020, the Bank’s 2001 Stock Option Plan and 2011 Omnibus Equity Incentive Plan were terminated and all outstanding and unexpired stock options and all shares of restricted stock outstanding under the terminated plans became equivalent awards of the Company under the 2019 Plan. In October 2020, the maximum number of shares under the 2019 Plan was increased by 300,000 to 2,500,000. In June 2021, the maximum number of shares under the 2019 Plan was increased by 900,000 to 3,400,000. In addition, the 2019 Plan permits the Company to grant additional stock options and restricted share units. The Plan provides for the granting to eligible participants such incentive awards as the Board of Directors or a committee established by the Board (the “Committee”), in its sole discretion, to administer the Plan. The Board has the power to determine the terms of the awards, including the exercise price, the number of shares subject to each award, the vesting and exercisability of the awards and the form of consideration payable upon exercise. Stock options expire no later than ten years from the date of the grant. The 2019 Plan provides for accelerated vesting if there is a change of control, as defined in the Plan. Restricted stock units generally vest over a period of one Total stock-based compensation cost related to stock options and restricted share units was $4.5 million and $3.7 million in 2023 and 2022, respectively. Stock Options As of December 31, 2023, there was $47 thousand of total unrecognized compensation cost related to the outstanding stock options. The intrinsic value of stock options exercised was approximately $117 thousand and $1.1 million in 2023 and 2022, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. There were no options granted during the years ended December 31, 2023 and 2022. A summary of changes in outstanding stock options during the years ended December 31, 2023 and 2022 are presented below: (dollars in thousands, except share data) Shares Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic December 31, 2023 Outstanding at beginning of year 326,868 $ 9.53 Exercised (16,000) $ 7.93 Forfeited (38,055) $ 11.89 Outstanding at end of year 272,813 $ 9.30 3.2 Years $ 2,196 Options exercisable 252,013 $ 9.07 3.0 Years $ 2,085 (dollars in thousands, except share data) Shares Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic December 31, 2022 Outstanding at beginning of year 536,651 $ 9.36 Exercised (136,100) $ 7.41 Forfeited (73,683) $ 12.18 Outstanding at end of year 326,868 $ 9.53 4.3 Years $ 2,385 Options exercisable 279,213 $ 9.13 3.9 Years $ 2,151 Restricted Stock Units A summary of the changes in outstanding unvested restricted stock units during the years ended December 31, 2023 and 2022 is presented below: December 31, 2023 Restricted Weighted Average Grant Date Fair Value Unvested at beginning of year 959,337 $ 11.55 Granted 205,422 $ 16.58 Vested (1) (470,648) $ 11.19 Forfeited (56,212) $ 15.23 Unvested at end of year 637,899 $ 13.11 (1) Included the vesting of performance-based awards totaling 275,171 shares, with a weighted average grant date fair value of $9.29 for the year ended December 31, 2023. December 31, 2022 Restricted Weighted Average Grant Date Fair Value Unvested at beginning of year 1,010,501 $ 10.55 Granted 257,378 $ 15.31 Vested (131,269) $ 11.69 Forfeited (177,273) $ 11.20 Unvested at end of year 959,337 $ 11.55 On March 1, 2023, the Board confirmed that all performance conditions for the performance-based restricted stock units totaling 275,171 shares had been satisfied and accelerated vesting in full. For the years ended December 31, 2023 and 2022, the Company recorded stock-based compensation expense totaling $792 thousand and $843 thousand, respectively. As of December 31, 2023, the Company did not have any outstanding unvested restricted stock units subject to various financial performance conditions. As of December 31, 2023, there was $5.5 million of total unrecognized compensation expense related to the outstanding restricted stock units that will be recognized over the weighted-average period of 2.1 years. The total grant date fair value of restricted stock units vested during 2023 and 2022 was $5.3 million and $1.5 million, respectively. Related tax benefits were approximately $710 thousand and $191 thousand for the years ended December 31, 2023 and 2022. Future levels of compensation cost recognized related to stock-based compensation awards may be impacted by new awards and/or modifications, repurchases and cancellations of existing awards. Under the terms of the 2019 Plan, vested options generally expire ninety days after the director or employee terminates the service affiliation with the Company.

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2023
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
REGULATORY MATTERS	REGULATORY MATTERS At December 31, 2023 and 2022, the Company qualified for treatment under the Small Bank Holding Company Policy Statement (Regulation Y, Appendix C) and, therefore, is not subject to consolidated capital rules at the bank holding company level. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Banks considered to be “adequately capitalized” are required to maintain a minimum total capital ratio of 8.0%, a minimum Tier 1 capital ratio of 6.0%, a minimum common equity Tier 1 capital ratio of 4.5%, and a minimum leverage ratio of 4.0%. Banks considered to be “well capitalized” must maintain a minimum total capital ratio of 10.0%, a minimum Tier 1 capital ratio of 8.0%, a minimum common equity Tier 1 capital ratio of 6.5%, and a minimum leverage ratio of 5.0%. As of December 31, 2023 and 2022, the Bank is “well capitalized” under the regulatory framework for prompt corrective action (“PCA”). There are no conditions or events that management believes have changed the Bank’s categories. Management believes, as of December 31, 2023 and 2022, that the Bank met all capital adequacy requirements to which we are subject. Basel III, the comprehensive regulatory capital rules for U.S. banking organizations, requires all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of common equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. Effective January 1, 2019, the capital conservation buffer increased by 0.625% to its fully phased-in 2.5%, such that the common equity Tier 1, Tier 1 and total capital ratio minimums inclusive of the capital conservation buffers were 7.0%, 8.5%, and 10.5% at December 31, 2023. At December 31, 2023, the Bank was in compliance with the capital conservation buffer requirements. To be categorized as well-capitalized, the Bank must maintain minimum ratios as set forth in the table below. The following table also sets forth the Bank’s actual capital amounts and ratios: Amount of Capital Required To be To be Well- Adequately Capitalized under Actual Capitalized PCA Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023: Total Capital (to Risk-Weighted Assets) $ 289,743 13.51 % $ 171,575 8.0 % $ 214,469 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 270,341 12.61 % 128,681 6.0 % 171,575 8.0 % CET1 Capital (to Risk-Weighted Assets) 270,341 12.61 % 96,511 4.5 % 139,405 6.5 % Tier 1 Capital (to Average Assets) 270,341 11.65 % 92,818 4.0 % 116,022 5.0 % As of December 31, 2022: Total Capital (to Risk-Weighted Assets) $ 260,788 11.97 % $ 174,256 8.0 % $ 217,820 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 242,379 11.13 % 130,692 6.0 % 174,256 8.0 % CET1 Capital (to Risk-Weighted Assets) 242,379 11.13 % 98,019 4.5 % 141,583 6.5 % Tier 1 Capital (to Average Assets) 242,379 10.62 % 91,297 4.0 % 114,122 5.0 % The primary source of funds for the Company is dividends from the Bank. Under federal law, the Bank may not declare a dividend in excess of its undivided profits if, absent the approval of the OCC, the Bank’s primary banking regulator, the total amount of dividends declared by the Bank in any calendar year exceeds the total of the Bank’s retained net income of that current period, year to date, combined with its retained net income for the preceding two years. The Bank also is prohibited from declaring or paying any dividend if, after making the dividend, the Bank would be considered “undercapitalized” (as defined by reference to other OCC regulations). Federal bank regulatory agencies have authority to prohibit banking institutions from paying dividends if those agencies determine that, based on the financial condition of the bank, such payment will constitute an unsafe or unsound practice. The Federal Reserve limits the amount of dividends that bank holding companies may pay on common stock to income available over the past year, and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. It is also the Federal Reserve’s policy that bank holding companies should not maintain dividend levels that undermine their ability to be a source of strength to its banking subsidiaries. Additionally, in consideration of the current financial and economic environment, the Federal Reserve has indicated that bank holding companies should carefully review their dividend policies.

FAIR VALUE

FAIR VALUE	12 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value of financial instruments Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business, and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments: Cash and Due from Banks : The carrying amounts of cash and short-term instruments approximate fair values because of the liquidity of these instruments. Fed Funds and Interest-Bearing Balances : The carrying amount is assumed to be the fair value given the short-term nature of these deposits. Debt Securities Held to Maturity and Available for Sale : The fair values of securities held to maturity and available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Loans Held for Sale : The fair value of loans held-for-sale is based on commitments outstanding from investors as well as what secondary market investors are currently offering for portfolios with similar characteristics. Loans Held for Investment, net : The fair value of loans, which is based on an exit price notion, is generally determined using an income based approach based on discounted cash flow analysis. This approach utilizes the contractual maturity of the loans and market indications of interest rates, prepayment speeds, defaults and credit risk in determining fair value. If an individually evaluated loan has had a charge-off or if the fair value of the collateral is less than the recorded investment in the loan, we establish a specific reserve and report the loan as nonrecurring Level 3. 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. For the fair value of collateral dependent individually evaluated loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral based on recent real estate appraisals, less costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. New appraisals in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Restricted Stock Investments : Investments in FHLB and Federal Reserve stocks are recorded at cost and measured for impairment. Ownership of FHLB and Federal Reserve stocks are restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB and Federal Reserve stock is equal to the carrying amount. Other Equity Securities : The fair value of equity securities is based on quoted prices in active markets for identical assets to determine the fair value. If quoted prices are not available to determine fair value, the Company estimates the fair values by using independent pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Other Real Estate Owned : Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of the carrying amount or fair value, less costs to sell. The fair value of OREO is generally based on recent real estate appraisals or broker opinions, obtained from independent third parties, which are frequently adjusted by management to reflect current conditions and estimated selling costs. Accrued Interest Receivable : The fair value of accrued interest receivable approximates their carrying amounts. Deposits : The fair values disclosed for demand deposits, including interest and non-interest demand accounts, savings, and certain types of money market accounts are, by definition based on carrying value. Fair value for fixed-rate certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities on time deposits. Early withdrawal of fixed-rate certificates of deposit is not expected to be significant. Borrowings : The fair values of the Company’s overnight borrowings from Federal Home Loan Bank approximates their carrying value as the advances were recently borrowed at market rate. The fair value of fixed-rated term borrowings is estimated using a discounted cash flow through the remaining maturity dates based on the current borrowing rates for similar types of borrowing arrangements. The fair values of subordinated debt are based on rates currently available to the Company for debt with similar terms and remaining maturities. Accrued Interest Payable : The fair value of accrued interest payable approximates their carrying amounts. Off-Balance Sheet Financial Instruments : The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. The fair value of these financial instruments is not material. The estimated fair value hierarchy level and estimated fair value of financial instruments at December 31, 2023 and 2022, is summarized as follows: 2023 2022 Estimated Estimated Fair Value Carrying Fair Carrying Fair (dollars in thousands) Hierarchy Value Value Value Value Financial assets: Cash and due from banks Level 1 $ 33,008 $ 33,008 $ 60,295 $ 60,295 Fed funds and interest-bearing balances Level 1 53,785 53,785 26,465 26,465 Debt securities available for sale Level 1/2 130,035 130,035 112,580 112,580 Debt securities held to maturity Level 2 53,616 50,432 53,946 47,906 Loans held for sale Level 2 7,349 7,834 9,027 9,616 Loans held for investment, net Level 3 1,934,873 1,883,154 1,880,674 1,836,782 Restricted stock, at cost Level 2 16,055 16,055 14,543 14,543 Other equity securities Level 2 9,187 9,187 6,974 6,974 Accrued interest receivable Level 2 7,301 7,301 6,868 6,868 Financial liabilities: Deposits Level 2 1,943,556 1,943,007 1,931,905 1,929,947 Borrowings Level 2 102,865 102,447 67,770 67,387 Accrued interest payable Level 2 477 477 215 215 Recurring fair value measurements The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value on a recurring basis at the periods indicated: Recurring Fair Value Measurements (dollars in thousands) Level 1 Level 2 Level 3 Total December 31, 2023 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 74,434 $ — $ 74,434 SBA securities — 5,782 — 5,782 U.S. Treasury 2,417 — — 2,417 U.S. Agency — 1,670 — 1,670 Collateralized mortgage obligations — 43,501 — 43,501 Taxable municipal — 1,421 — 1,421 Tax exempt bank-qualified municipals — 810 — 810 $ 2,417 $ 127,618 $ — $ 130,035 December 31, 2022 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 23,295 $ — $ 23,295 SBA securities — 7,872 — 7,872 U.S. Treasury 5,952 — — 5,952 U.S. Agency — 6,183 — 6,183 Collateralized mortgage obligations — 44,423 — 44,423 Taxable municipal — 4,228 — 4,228 Tax exempt bank-qualified municipals — 20,627 — 20,627 $ 5,952 $ 106,628 $ — $ 112,580 Nonrecurring fair value measurements The Company may also be required, from time to time, to measure certain other assets and liabilities on a nonrecurring basis in accordance with generally accepted accounting principles. For the valuation of the collateral-dependent loans, the Company relies primarily on third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. Depending on the type of underlying collateral, valuations may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. As of December 31, 2023, the Company’s individually evaluated collateral dependent loan was evaluated based on the fair value of its underlying collateral from the most recent appraisals available to management. The Company took a partial charge-off of $1.3 million on the individually evaluated loan based on recent real estate or property appraisals during the year ended December 31, 2023. The Company did not have any nonrecurring fair value measurements at December 31, 2022. The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2023. Fair Value Measurement Level Quoted Prices in Active Markets for Significant Other Significant Fair Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Value (Level 1) (Level 2) (Level 3) December 31, 2023 Collateral dependent loans (1) : Multifamily Residential $ 13,000 $ — $ — $ 13,000 (1) Collateral-dependent loans whose fair value is based upon appraisals. Quantitative information about Level 3 fair value measurements measured on a non-recurring basis are summarized below as of December 31, 2023. Asset Fair Valuation Unobservable Range % (dollars in thousands) Value Technique Input (Weighted Average) December 31, 2023 Multifamily Residential $ 13,000 Income approach Capitalization rate 3.84%-4.94% (4.50%)

CONDENSED FINANCIAL INFORMATION

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY	12 Months Ended
	Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY	CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY Southern California Bancorp was organized in 2020 to serve as the holding company for Bank of Southern California, N.A., its wholly owned subsidiary. The earnings of the subsidiary are recognized using the equity method of accounting. The following tables present the parent company only condensed balance sheets at December 31, 2023 and 2022 and the related condensed statements of income and condensed statements of cash flows for the years ended December 31, 2023 and 2022. Southern California Bancorp (Parent Company Only) CONDENSED BALANCE SHEETS December 31, (dollars in thousands) 2023 2022 ASSETS Cash $ 3,586 $ 3,177 Investment in bank Subsidiary 301,455 274,714 Other investments 910 315 Accrued interest and other assets 110 214 Total assets $ 306,061 $ 278,420 December 31, (dollars in thousands) 2023 2022 LIABILITIES Subordinated debt and other borrowings $ 17,865 $ 17,770 Accrued interest and other liabilities 44 295 Total liabilities 17,909 18,065 SHAREHOLDERS’ EQUITY Common stock 222,036 218,280 Retained earnings 70,575 48,516 Accumulated other comprehensive loss, net of taxes (4,459) (6,441) Total shareholders’ equity 288,152 260,355 Total liabilities and shareholders’ equity $ 306,061 $ 278,420 Southern California Bancorp (Parent Company Only) CONDENSED STATEMENTS OF INCOME Year Ended December 31, (dollars in thousands) 2023 2022 INCOME Other interest and dividends $ — $ 2 Dividends from bank subsidiary 2,000 3,000 Total income 2,000 3,002 EXPENSES Interest on borrowings 1,085 1,155 Merger and related expenses — 1 Other noninterest expense 487 655 Total expenses 1,572 1,811 Income before income taxes 428 1,191 Income tax benefit 501 519 Income before equity in undistributed earnings of bank subsidiary 929 1,710 Equity in undistributed earnings of bank subsidiary 24,981 14,403 Net income $ 25,910 $ 16,113 Southern California Bancorp (Parent Company Only) CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, (dollars in thousands) 2023 2022 OPERATING ACTIVITIES Net Income $ 25,910 $ 16,113 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of debt issuance costs 95 95 Amortization of junior subordinated debentures fair value adjustment — 12 Loss on early debt extinguishment — 347 Equity in undistributed earnings of bank subsidiary (24,981) (14,403) Other items (147) 481 Net cash provided by operating activities 877 2,645 INVESTING ACTIVITIES Proceeds from junior subordinated debentures investment — 93 Net purchase of other equity investments (595) (315) Net cash used in investing activities (595) (222) FINANCING ACTIVITIES Repayment of other borrowings — (3,093) Proceeds from exercise of stock options $ 127 1,009 Net cash provided by (used in) financing activities 127 (2,084) Increase in cash and cash equivalents 409 339 Cash and cash equivalents, beginning of year 3,177 2,838 Cash and cash equivalents, end of year $ 3,586 $ 3,177

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company has evaluated subsequent events for recognition and disclosure through March 15, 2024, the date the consolidated financial statements were available to be issued. On January 30, 2024, the Company announced the execution of a definitive merger agreement with California BanCorp (NASDAQ: CALB), the holding company for California Bank of Commerce, pursuant to which California BanCorp will merge into Southern California Bancorp in an all-stock merger valued at approximately $233.6 million based on the closing price of Southern California Bancorp on January 29, 2024. Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of Southern California Bancorp and California BanCorp, each outstanding share of California BanCorp common stock will be exchanged for the right to receive 1.590 shares of Southern California Bancorp common stock. As a result of the transaction, Southern California Bancorp shareholders will own approximately 57.1% of the outstanding shares of the combined company and California BanCorp shareholders will own approximately 42.9% of the outstanding shares of the combined company. These amounts are subject to fair value adjustments upon the close of the Merger. The transaction is expected to close in the third quarter of 2024, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals and approvals from Southern California Bancorp and California BanCorp shareholders. At December 31, 2023, California BanCorp had total loans of $1.56 billion, total assets of $1.99 billion, total deposits of $1.63 billion, and total equity of $196.0 million. Except as noted, there have been no other subsequent events that occurred from December 31, 2023 through March 15, 2024 that would require disclosure in this report or would be required to be recognized in the consolidated financial statements as of December 31, 2023.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income	$ 25,910	$ 16,113

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-K and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for financial reporting. Certain reclassifications have been made to the December 31, 2022 consolidated financial statements to conform to the 2023 presentation. These reclassifications included $506 thousand of the provision for loan losses on unfunded commitments previously reported in noninterest expense was reclassified to provision for credit losses in the accompanying consolidated statements of income.
Principles of Consolidations	Principles of Consolidation
Use of Estimates in the Preparation of Consolidated Financial Statements	Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change are the determination of the allowance for credit losses, the fair value of assets and liabilities acquired in business combinations and related purchase price allocation, the valuation of acquired loans, the valuation of goodwill and separately identifiable intangible assets associated with mergers and acquisitions, loan sales and servicing of financial assets and deferred tax assets and liabilities.
Operating Segments	Operating Segments We operate one reportable segment — commercial banking. The factors considered in making this determination include all of the banking products and services offered by the Company are available in each branch of the Company, all branches are located within the same economic environment, management does not allocate resources based on the performance of different lending or transaction activities and how information is reviewed by the chief executive officer and other key decision makers. As a result, we determined that all services we offer relate to commercial banking.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, and federal funds and interest-bearing balances represent primarily cash held at the Federal Reserve Bank of San Francisco, Pacific Coast Bankers’ Bank and Federal Home Loan Bank of San Francisco. The Board of Governors of the Federal Reserve System (“Federal Reserve”) has cash reserve requirements for depository institutions based on the amount of deposits held. At December 31, 2023, the Bank had no required cash balance held by the Federal Reserve. The Company maintains amounts due from banks that exceed federally insured limits. The Company has not experienced any losses in such accounts.
Debt Securities	Debt Securities Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities classified as held-to-maturity securities are carried at amortized cost. Debt securities classified as “available-for-sale” may be sold prior to maturity due to changes in interest rates, prepayment risks, and availability of alternative investments, or to meet our liquidity needs. Debt securities not classified as held-to-maturity securities nor as available-for-sale securities are classified as trading securities. Available-for-sale debt securities and trading debt securities are recorded at fair value. Unrealized gains or losses on available-for-sale securities are excluded from net income and reported as an amount net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Premiums or discounts on held-to-maturity and available-for-sale debt securities are amortized or accreted into income using the interest method. Realized gains or losses on sales of held-to-maturity or available-for-sale securities are recorded using the specific identification method. Debt securities held-to-maturity and available-for-sale are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When debt securities held-to-maturity and available-for-sale are placed on nonaccrual status, unpaid interest recognized as interest income is reversed. Prior to January 1, 2023, Management evaluated securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: OTTI related to credit loss, which must be recognized in the income statement and OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The related write-downs are included in earnings as realized losses. Effective January 1, 2023, upon the adoption of ASU 2016-13, both held-to-maturity debt securities and available-for-sale debt securities are subject to the current expected credit losses (“CECL”) methodology. The assessment of expected credit losses for held-to-maturity debt securities under CECL is performed on a collective basis when similar risk characteristics exist, and expected credit losses must be recognized at the time of purchase or designation. CECL requires the consideration of credit losses even when the risk of loss is remote. The assessment of expected credit losses for available-for-sale debt securities is performed on an individual security basis, whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors.
Restricted Stock Investments and Other Equity Securities Without A Readily Determinable Fair Value	Restricted Stock Investments The Bank is a member of the Federal Home Loan Bank (”FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors. In addition, the Bank is a member of its regional Federal Reserve. FHLB and Federal Reserve stock are carried at cost, classified as a restricted stock, at cost, in the consolidated balance sheets and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as interest and dividends on other interest-earning assets in the accompanying consolidated statements of income. Other Equity Securities Without A Readily Determinable Fair Value
Loans Held For Sale	Loans Held for Sale Loans held for sale are comprised of SBA loans originated and intended for sale in the secondary market. These loans are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains or losses realized on the sales of SBA loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the carrying value of the loans sold, adjusted for any servicing asset or liability. Gains and losses on sales of SBA loans are included in gain on sale of loans in the accompanying consolidated statements of income.
Loans Held for Investment	Loans Held for Investment Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances reduced by any charge-offs and net of any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Purchase discounts and premiums and net deferred loan origination fees and costs on loans are accreted or amortized in interest income as an adjustment of yield, using the interest method, over the expected life of the loans. Amortization of deferred loan fees and costs are discontinued when a loan is placed on nonaccrual status.
Nonaccrual Loans, Allowance for Credit Losses ("ACL"), and Off-Balance Sheet Credit Exposures	Nonaccrual Loans Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is generally discontinued when principal or interest is past due 90 days based on the contractual terms of the loan or earlier when, in the opinion of management, there is reasonable doubt as to collectability. On a case-by-case basis, loans past due 90 days may remain on accrual, if the loan is well collateralized, actively in process of collection and, in the opinion of management, likely to be paid current within the next payment cycle. When loans are placed on nonaccrual status, all interest previously accrued but not collected is generally reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Interest accruals are resumed on such loans only when they are brought current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectable as to all principal and interest. Allowance for Credit Losses (“ACL”) Loans held for investment — An ACL on loans is the Company’s estimate of expected lifetime credit losses for its loans held for investment at the time of origination or acquisition and is maintained at a level deemed appropriate by management to provide for expected lifetime credit losses in the portfolio. The ACL on loans consists of: (i) a specific allowance established for current expected credit losses on loans individually evaluated, (ii) a quantitative allowance for current expected credit losses based on the portfolio and expected economic conditions over a reasonable and supportable forecast period that reverts back to long-term trends to cover the expected life of the loan, (iii) a qualitative allowance including management judgment to capture factors and trends that are not adequately reflected in the quantitative allowance, and (iv) the ACL for off-balance sheet credit exposure for unfunded loan commitments (described in Allowance for Credit Losses - Off-Balance Sheet Credit Exposure). The ACL on loans held for investment represents the portion of the loans’ amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loans’ contractual life. Amortized cost does not include accrued interest, which management elected to exclude from the estimate of expected credit losses. Provision for credit losses for loans held for investment is included in provision for credit losses in the consolidated statements of income. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Subsequent recoveries, if any, are credited to the ACL. Credit losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income. Estimating expected credit losses requires management to use relevant forward-looking information, including the use of reasonable and supportable forecasts. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. The Company measures the ACL on loans using a discounted cash flow methodology, which utilizes pool-level assumptions and cash flow projections on an individual loan basis, which is then aggregated at the portfolio segment level and supplemented by a qualitative reserve that is applied to each portfolio segment level. The Company’s loan portfolio consists of the following segments, based on regulatory call codes and related risk ratings: Construction and land development loans are typically adjustable rate residential and commercial construction loans to builders, developers and other investors, with terms generally limited to 12 to 36 months. These loans generally require payment in full upon the sale or refinance of the property. Construction and development loans generally carry a higher degree of risk because repayment depends on the ultimate completion of the project and usually on the subsequent sale or refinance of the property, unless the project is user-owned which may then convert to a conventional term loan. Specific material risks may include (i) unforeseen delays in the building or the project, (ii) cost overruns or inadequate contingency reserves, (iii) poor management of construction process, (iv) inferior or improper construction techniques, (v) changes in the economic environment during the construction period, (vi) a downturn in the real estate market, (vii) rising interest rates which may impact the sale of the property and its price, and (viii) failure to sell or stabilize completed projects in a timely manner. The Company attempts to reduce risks associated with construction and land development loans by obtaining personal guarantees and by keeping the maximum loan-to-value (“LTV”) ratio at or below 75%, depending on the project type. Many of the construction and land development loans include interest reserves built into the loan commitment. For owner-occupied commercial construction loans, periodic cash payments for interest are required from the borrower’s cash flow. Real estate loans are secured by single family residential properties (one to four units), multifamily residential properties (five or more units), owner-occupied CRE, and non-owner-occupied CRE. Real estate loans are subject to the same general risks as other loans and may also be impacted by changing demographics, collateral maintenance, and product supply and demand. Rising interest rates, as well as other factors arising after a loan has been made, could negatively affect not only property values but also a borrower’s cash flow, creditworthiness, and ability to repay the loan. Increasing interest rates can impact real estate values as rising rates generally cause a similar movement in capitalization rates which can cause real estate collateral values to decline. The Company usually obtains a security interest in real estate, in addition to any other available collateral, in order to increase the likelihood of the ultimate repayment of the loan. The Company does not underwrite closed-end term consumer loans secured by a borrower’s residence. Junior liens may be considered in connection with a consumer home equity line of credit (“HELOC”), or as additional collateral support for SBA and other business loans. The Company’s commercial and industrial (“C&I”) loans are generally made to businesses located in the Southern California region and surrounding communities. These loans are made to finance operations, to provide working capital, or for specific purposes such as to finance the purchase of assets or equipment or to finance accounts receivable and inventory. The Company’s C&I loans may be secured (other than by real estate) or unsecured. They may take the form of single payment, installment, or lines of credit. These loans are generally based on the financial strength and integrity of the borrower and guarantor(s) and generally (with some exceptions) are collateralized by short-term assets such as accounts receivable, inventory, equipment, or a borrower’s other business assets. Commercial term loans are typically made to provide working capital to finance the acquisition of fixed assets, refinance short-term debt originally used to purchase fixed assets or, in rare cases, to finance the purchase of businesses. Consumer loans consist of loans to individuals for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. Consumer loans are underwritten based on the borrower’s income, current debt level, past credit history, and the availability and value of collateral. Consumer rates are both fixed and variable, with negotiable terms. The Company’s installment loans typically amortize over periods up to 5 years. Although the Company typically requires monthly payments of interest and a portion of the principal on its loan products, the Company will offer consumer loans with a single maturity date when a specific source of repayment is available. Consumer loans are generally considered to have greater risk than first or second mortgages on real estate because they may be unsecured, or, if they are secured, the value of the collateral may be difficult to assess and more likely to decrease in value than real estate. The Company’s ACL model incorporates assumptions for prepayment/curtailment rates, probability of default (“PD”), and loss given default (“LGD”) to project each loan’s cash flow throughout its entire life cycle. An initial reserve amount is determined based on the difference between the amortized cost basis of each loan and the present value of all future cash flows. The initial reserve amount is then aggregated at loan segment level to derive the segment level quantitative loss rates. For prepayment and curtailment rates, the Company utilized Abrigo’s benchmark since the adoption on January 1, 2023 through the second quarter of 2023 and switched to the Company’s own historical prepayment and curtailment experience covering from December 2020 through August 2023 beginning September 2023. Quarterly PD is forecasted using a regression model that incorporates certain economic variables as inputs. The LGD is derived from PD using the Frye-Jacobs index provided by the Company’s third-party model provider. Reasonable and supportable forecasts are used to predict current and future economic conditions. Management elected to use a four quarter reasonable and supportable forecast period followed by an eight quarter straight-line reversion period. After twelve quarters of forecast plus reversion period, the probability of default is assumed to remain unchanged for the remaining life of the loan. The Company uses numerous key macroeconomic variables within the economic forecast scenarios from Moody’s Analytics. These economic forecast scenarios are based on past events, current conditions, and the likelihood of future events occurring. These scenarios include a baseline forecast which represents their best estimate of future economic activity. Moody’s Analytics also provides nine alternative scenarios, including five direct variations of the baseline scenario and four more extensive departures from their baseline forecast, including a slower growth, a stagflation, a next cycle recession and a low oil price scenario. Management recognizes the non-linearity of credit losses relative to economic performance and believes the use of multiple probability-weighted economic scenarios is appropriate in estimating credit losses over the forecast period. This approach is based on certain assumptions. The first assumption is that no single forecast of the economy, however detailed or complex, is completely accurate over a reasonable forecast timeframe and is subject to revisions over time. By considering multiple scenarios, management believes some of the uncertainty associated with a single scenario approach can be mitigated. Management periodically evaluates economic scenarios, determines whether to utilize multiple probability-weighted scenarios in the Company’s ACL model, and, if multiple scenarios are utilized, evaluates and determines the weighting for each scenario used in the Company’s ACL model, and thus the scenarios and weightings of each scenario may change in future periods. Economic scenarios as well as assumptions within those scenarios can vary based on changes in current and expected economic conditions. The ACL process involves subjective and complex judgments and is reflective of significant uncertainties that could potentially result in materially different results under different assumptions and conditions. In addition to the aforementioned quantitative model, management periodically considers the need for qualitative adjustments to the ACL. Such qualitative adjustments may be related to and include, but are not limited to factors such as: differences in segment-specific risk characteristics, periods wherein current conditions and reasonable and supportable forecasts of economic conditions differ from the conditions that existed at the time of the estimated loss calculation, model limitations and management’s overall assessment of the adequacy of the ACL. Qualitative risk factors are periodically evaluated by management. Generally, the measurement of the ACL is performed by collectively evaluating loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated individually for credit loss and are not included in the evaluation process discussed above. Expected credit losses on all individually evaluated loans are measured, primarily through the evaluation of estimated cash flows expected to be collected, or collateral values measured by reference to an observable market value, if one exists, or the fair value of the collateral for a collateral-dependent loan. The Company selects the measurement method on a loan-by-loan basis except that collateral-dependent loans for which foreclosure is probable are measured at the net realizable value of the collateral. Cash receipts on individually evaluated loans for which the accrual of interest has been discontinued are applied first to principal and then to interest income. Prior to the adoption of ASC Topic 326, individually evaluated loans were referred to as impaired loans. Amounts are charged-off when available information confirms that specific loans or portions thereof, are uncollectible. This methodology for determining charge-offs is consistently applied to each loan segment. Loans with terms that have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are evaluated for an ACL utilizing one of the methodologies above. Held-to-Maturity Debt Securities — An ACL is established for losses on held-to-maturity debt securities at the time of purchase or designation, and is updated each period to reflect management’s expectations of CECL as of the date of the consolidated balance sheets. The ACL is estimated collectively for groups of debt securities with similar risk characteristics, and is determined at the individual security level when the Company deems a security to no longer possess shared risk characteristics. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. For debt securities where the Company has reason to believe the credit loss exposure is remote, a zero credit loss assumption is applied. Such debt securities were municipal securities, and historically have had limited credit loss experience. The Company does not anticipate any credit related losses in this investment portfolio. Changes in the ACL on held-to-maturity debt securities are recorded as a component of the provision for credit losses in the consolidated statements of income. Losses are charged against the ACL when management believes the lack of collectibility of a held-to-maturity debt security is confirmed. Available-for-Sale Debt Securities — An ACL is established for losses on available-for-sale debt securities on an individual basis, whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. The portion of the decline attributable to credit losses is recognized through an ACL, and changes in the ACL on available-for-sale debt securities are recorded as a component of the provision for credit losses in the consolidated statements of income. The portion of decline in fair value below the amortized cost basis not attributable to credit is recognized through other comprehensive income (loss), net of applicable taxes. Off-Balance Sheet Credit Exposures — The Company also maintains a separate allowance for credit losses for off-balance sheet commitments, which totaled $933 thousand and $1.3 million at December 31, 2023 and 2022, respectively. Beginning January 1, 2023, management estimates anticipated losses using expected loss factors consistent with those used for the ACL methodology for loans described above, and utilization assumptions based on historical experience. Provision for credit losses for off-balance sheet commitments is included in provision for credit losses in the consolidated statements of income and added to the allowance for off-balance sheet commitments, which is included in accrued interest payable and other liabilities in the consolidated balance sheets.
Loan Modifications, Refinancings and Restructurings	Loan Modifications, Refinancings and Restructurings Prior to the adoption of ASU 2022-02, a loan was classified as a TDR when the Company granted a concession to a borrower experiencing financial difficulties that it otherwise would not consider under its normal lending policies under ASC Subtopic 310-40, Troubled Debt Restructurings by Creditors. Upon the adoption of ASU 2022-02 on January 1, 2023, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. The Company considers some of the indicators that a borrower is experiencing financial difficulty to be: currently in payment default on any of their debt, declaring bankruptcy, having issues continuing as a going concern, insufficient cash flow to service all debt service requirements, inability to obtain funds from other sources at a market rate for similar debt to non-troubled borrowers, and currently classified as substandard loans that are categorized as having well-defined weaknesses. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. If the refinancing or restructuring is deemed to be a new loan, unamortized net fees or costs from the original loan and any prepayment penalties are recognized in interest income when the new loan is granted. In addition, a new effective interest rate will be determined. If the refinancing or restructuring is deemed to be a modification, the investment in the new loan is comprised of the remaining net investment in the original loan, any additional funds advanced to the borrower, any fees received, and direct loan origination costs associated with the refinancing or restructuring. The effective interest rate of the loan is recalculated based upon the amortized cost basis of the new loan and its revised contractual cash flows. A modification may vary by program and by borrower-specific characteristics, and may include interest rate reductions, principal forgiveness, term extensions, payment delays and any combinations of the above, and is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company applies the same credit loss methodology it uses for similar loans that were not modified. GAAP requires that certain types of modifications be reported, which consist of (1) principal forgiveness; (2) interest rate reduction; (3) other-than-insignificant payment delay; (4) term extension; and any combination of the above. Since adoption of ASU 2022-02 on January 1, 2023, the Company did not have any loan modifications under ASU 2022-02. At December 31, 2022, the Company did not have any loans that have been modified and classified as TDRs under previous GAAP.
Other Real Estate Owned	Other Real Estate Owned Real estate acquired by foreclosure or deed in lieu of foreclosure is recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis by a charge to the ALL, if necessary. Subsequent to foreclosure, OREO is carried at the lower of the Company’s carrying value of the property or its fair value, less estimated carrying costs and costs of disposition. Fair value is generally based on current appraisals, which are frequently adjusted by management to reflect current conditions and estimated selling costs. Write-downs are expensed and recognized as a valuation allowance. Operating
Bank Owned Life Insurance	Bank Owned Life Insurance Bank owned life insurance is recorded at the amount that can be realized under insurance contracts at the date of the consolidated balance sheets, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity.
Loan Sales and Servicing of Financial Assets	Loan Sales and Servicing of Financial Assets The Company originates SBA loans that may be sold in the secondary market. Servicing rights are recognized separately when they are acquired through sale of loans. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sale of loans. Fair value is based on a valuation model that calculates the present value of estimated future cash flows from the servicing assets. The valuation model uses assumptions that market participants would use in estimating cash flows from servicing assets, such as the cost to service, discount rates and prepayment speeds (Level 3 fair value inputs). The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing fee income, which is reported in the consolidated statements of income with servicing and related income on loans, net, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of servicing rights and changes in the valuation allowance are netted against loan servicing income.
Premises and Equipment	Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which ranges from three forty-five
Right-of-Use (”ROU”) Assets and Lease Liabilities	Right-of-Use (”ROU”) Assets and Lease Liabilities The Company has operating leases for its branches and administrative facilities. The Company determines if an arrangement contains a lease at contract inception and recognizes a ROU asset and
Employee Benefit Plans	Employee Benefit Plans The Company has a retirement savings 401(k) plan in which substantially all employees may participate. Pursuant to the Company’s safe harbor election, matching contributions up to 4.0% of salary are made to the plan. Total contribution expense for the plan was $932 thousand in 2023 and $875 thousand in 2022 and is included in salaries and employee benefits expense in the consolidated statements of income. Deferred compensation and supplemental retirement plan expense is recognized over the years of service.
Advertising Costs	Advertising Costs
Income Taxes	Income Taxes Deferred income taxes are computed using the asset and liability method, which recognizes a liability or asset representing the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. A valuation allowance is established to reduce the deferred tax asset to the level at which it is “more likely than not” that the tax asset or benefits will be realized. Realization of tax benefits of deductible temporary differences and operating loss carryforwards depend on having sufficient taxable income of an appropriate character within the carryforward periods. The Company has adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return and provides that the tax effects from an uncertain tax position can be recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Management believes that all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the consolidated financial statements. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. We reclassify stranded tax effects from accumulated other comprehensive income to retained earnings in periods in which there is a change in corporate income tax rates.
Comprehensive Income	Comprehensive Income
Financial Instruments	Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded, or related fees are incurred or received.
Earnings Per Share ("EPS")	Earnings Per Share (“EPS”)
Business Combinations	Business Combinations Business combinations are accounted for using the acquisition method of accounting under ASC Topic 805 - Business Combinations . Under the acquisition method, the Company measures the identifiable assets acquired, including identifiable intangible assets, and liabilities assumed in a business combination at fair value on acquisition date. Goodwill is generally determined as the excess of the fair value of the consideration transferred, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. The Company accounts for merger-related costs, which may include advisory, legal, accounting, valuation, other professional fees, data conversion fees, contract termination charges and branch consolidation costs, as expenses in the periods in which the costs are incurred and the services are received.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill and other intangible assets acquired in a purchase business combination and determined to have indefinite useful lives are not amortized but tested for impairment no less than annually or when circumstances arise indicating impairment may have occurred. Goodwill is the only intangible asset with an indefinite life recorded in the Company’s consolidated balance sheets. The determination of whether impairment has occurred, includes the considerations of a number of factors including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows, and current market data. Any impairment identified as part of this testing is recognized through a charge to net income. The Company has selected to perform its annual impairment test in the fourth quarter of each fiscal year. There was no impairment recognized related to goodwill for the years ended December 31, 2023 and 2022. Core deposit intangible (”CDI”) is a measure of the value of depositor relationships resulting from whole bank acquisitions. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. CDI is amortized on an accelerated method over an estimated useful life of 5.0 to 7.8 years.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and the amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the consolidated financial statements at December 31, 2023.
Revenue Recognition - Noninterest Income	Revenue Recognition – Noninterest Income The core principle of Topic 606, Revenue from Contracts with Customers, is that an entity recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. Topic 606 requires entities to exercise more judgment when considering the terms of a contract than under Topic 605, Revenue Recognition . Topic 606 applies to all contracts with customers to provide goods or services in the ordinary course of business, except for contracts that are specifically excluded from its scope. Topic 606 does not apply to revenue associated with interest income on financial instruments, including loans and securities. Additionally, certain noninterest income streams, such as income from BOLI and gain and losses on sales of investment securities and loans, are out of the scope of Topic 606. Topic 606 is applicable to noninterest revenue streams such as (i) service charges and fees on deposit accounts, including account maintenance, transaction-based and overdraft services, and (ii) interchange fees, which represent fees earned when a debit card issued by the Company is used. These revenue streams are largely transaction-based and revenue is recognized upon completion of a transaction. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized in noninterest income in the consolidated statements of income. Gains/losses on the sale of OREO are included in non-interest income/expense in the consolidated statements of income and are generally recognized when the performance obligation is complete. This is typically at delivery of control over the property to the buyer at the time of each real estate closing.
Stock-Based Compensation	Stock-Based Compensation
Fair Value Measurement	Fair Value Measurement Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measure certain assets and liabilities on a fair value basis, in accordance with ASC Topic 820, “Fair Value Measurement.” Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, ASC Topic 825, “Financial Instruments” requires disclosure of the fair value of financial assets and financial liabilities, including both those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis and a non-recurring basis. ASC Topic 820, establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value of financial instruments Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business, and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments: Cash and Due from Banks : The carrying amounts of cash and short-term instruments approximate fair values because of the liquidity of these instruments. Fed Funds and Interest-Bearing Balances : The carrying amount is assumed to be the fair value given the short-term nature of these deposits. Debt Securities Held to Maturity and Available for Sale : The fair values of securities held to maturity and available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Loans Held for Sale : The fair value of loans held-for-sale is based on commitments outstanding from investors as well as what secondary market investors are currently offering for portfolios with similar characteristics. Loans Held for Investment, net : The fair value of loans, which is based on an exit price notion, is generally determined using an income based approach based on discounted cash flow analysis. This approach utilizes the contractual maturity of the loans and market indications of interest rates, prepayment speeds, defaults and credit risk in determining fair value. If an individually evaluated loan has had a charge-off or if the fair value of the collateral is less than the recorded investment in the loan, we establish a specific reserve and report the loan as nonrecurring Level 3. 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. For the fair value of collateral dependent individually evaluated loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral based on recent real estate appraisals, less costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. New appraisals in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Restricted Stock Investments : Investments in FHLB and Federal Reserve stocks are recorded at cost and measured for impairment. Ownership of FHLB and Federal Reserve stocks are restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB and Federal Reserve stock is equal to the carrying amount. Other Equity Securities : The fair value of equity securities is based on quoted prices in active markets for identical assets to determine the fair value. If quoted prices are not available to determine fair value, the Company estimates the fair values by using independent pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Other Real Estate Owned : Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of the carrying amount or fair value, less costs to sell. The fair value of OREO is generally based on recent real estate appraisals or broker opinions, obtained from independent third parties, which are frequently adjusted by management to reflect current conditions and estimated selling costs. Accrued Interest Receivable : The fair value of accrued interest receivable approximates their carrying amounts. Deposits : The fair values disclosed for demand deposits, including interest and non-interest demand accounts, savings, and certain types of money market accounts are, by definition based on carrying value. Fair value for fixed-rate certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities on time deposits. Early withdrawal of fixed-rate certificates of deposit is not expected to be significant. Borrowings : The fair values of the Company’s overnight borrowings from Federal Home Loan Bank approximates their carrying value as the advances were recently borrowed at market rate. The fair value of fixed-rated term borrowings is estimated using a discounted cash flow through the remaining maturity dates based on the current borrowing rates for similar types of borrowing arrangements. The fair values of subordinated debt are based on rates currently available to the Company for debt with similar terms and remaining maturities. Accrued Interest Payable : The fair value of accrued interest payable approximates their carrying amounts. Off-Balance Sheet Financial Instruments : The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. The fair value of these financial instruments is not material.
Recently Adopted Accounting Guidance and Recent Accounting Guidance Not Yet Effective	Recently Adopted Accounting Guidance On January 1, 2023, the Company adopted Accounting Standard Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), which replaces the incurred loss impairment methodology with a methodology that reflects current expected credit losses (“CECL”) and requires consideration of historical experience, current conditions and reasonable and supportable forecasts to estimate expected credit losses for financial assets held at the reporting date. The measurement of expected credit losses under the CECL is applicable to financial assets measured at amortized cost, including loans, held-to-maturity debt securities and off-balance sheet credit exposures. ASU 2016-13 also requires credit losses on available-for-sale debt securities be measured through an allowance for credit losses. If the measurement indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses ("ACL") is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. In addition, ASU 2016-13 modifies the other-than-temporary impairment (“OTTI”) model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for reversal of credit impairments in future periods based on improvements in credit. The Company elected to account for accrued interest receivable separately from the amortized cost of loans and investment securities. The Company elected the CECL phase-in option provided by regulatory capital rules, which delays the impact of CECL on regulatory capital over a three-year transition period. Concurrent with the adoption of ASU 2016-13, the Company adopted ASU 2022-02, Financial Instruments—Credit Losses (Topic 326) Troubled Debt Restructurings (“TDR”) and Vintage Disclosures, which eliminated TDR accounting prospectively for all loan modifications occurring on or after January 1, 2023 and added additional disclosure requirements for current period gross charge-offs by year of origination. It also prescribes guidance for reporting modifications for certain loan refinancings and restructurings made to borrowers experiencing financial difficulty. Loans that were considered a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the superseded TDR accounting guidance until the loan is paid off, liquidated, or subsequently modified. The Company adopted ASU 2016-13 using the modified retrospective transition approach, and recorded a net decrease of $3.9 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment, reflecting an initial adjustment to the ACL of $5.5 million, which included a $5.0 million increase in the ACL - loans and a $439 thousand increase in reserve for unfunded commitments, net of related deferred tax assets arising from temporary differences of $1.6 million, commonly referred to as the “Day 1” adjustment. This Day 1 adjustment reflects the development of the CECL models to estimate lifetime expected credit losses on the loans held for investment and unfunded commitments primarily using a lifetime loss methodology and management’s current expectation of future economic conditions. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with the probable incurred loss accounting standards. As permitted under ASC 326, the Company elected to maintain the same loan segments that it previously identified prior to adoption of CECL. At adoption of CECL and continuing through December 31, 2023, the Company did not record an ACL on available-for-sale debt securities or held-to-maturity debt securities as these investment portfolios primarily consisted of debt securities explicitly or implicitly backed by the U.S. government or state and local governments, and historically have had no credit loss experience. Refer to Note 2 – Investment Securities , for more information. The following table presents the impact of adopting ASU 2016-13 on January 1, 2023: (dollars in thousands) Pre-CECL Adoption Impact of CECL Adoption As Reported under CECL Assets: Allowance for credit losses - loans Construction and land development $ 2,301 $ 881 $ 3,182 Real estate - other: 1-4 family residential 972 424 1,396 Multifamily residential 1,331 (279) 1,052 Commercial real estate and other 9,388 2,838 12,226 Commercial and industrial 3,079 1,132 4,211 Consumer 28 31 59 $ 17,099 $ 5,027 $ 22,126 Liabilities: Allowance for credit losses - unfunded loan commitments $ 1,310 $ 439 $ 1,749 On March 12, 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020 and may be adopted through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarifies that all derivative instruments affected by the changes to interest rates used for discounting, margining or contract price alignment, regardless of whether they reference LIBOR or another rate expected to be discontinued as a result of reference rate reform, an entity may apply certain practical expedients in Topic 848. ASU 2020-04 and 2021-01 are elective and can be adopted between March 12, 2020 and December 31, 2022. In December 2022, the FASB issued ASU 2022-06, "Deferral of the Sunset Date of Topic 848", which extends the temporary relief provision period and allows companies to defer the adoption to December 31, 2024. The Company currently does not have any hedge accounting for hedging relationships that meet the stated criteria, and implemented its transition plan as of June 30, 2023. The adoption of the above ASUs did not have a material impact to the consolidated financial statements. Recent Accounting Guidance Not Yet Effective In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements. This standard requires entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. The standard is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within these fiscal years. As the Company does not have any such common control leases, adoption of this standard will not have a material impact to the consolidated financial statements. In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, a consensus of the Emerging Issues Task Force. The amendments in this update allow the option for an entity to apply the proportional amortization method of accounting to other equity investments that are made for the primary purpose of receiving tax credits or other income tax benefits, if certain conditions are met. Prior to this update, the application of the proportional amortization method of accounting was only limited to low-income housing tax credit (“LIHTC”) structured investments. The proportional amortization method of accounting results in the amortization of applicable investments, as well as the related income tax credits or other income tax benefits received, being presented on a single line in the consolidated statements of income, income tax expense. Under this update, an entity has the option to apply the proportional amortization method of accounting to applicable investments on a tax-credit-program-by-tax-credit-program basis. In addition, the amendments in this update require that all tax equity investments accounted for using the proportional amortization method use the delayed equity contribution guidance in paragraph 323-740-25-3, requiring a liability be recognized for delayed equity contributions that are unconditional and legally binding or for equity contributions that are contingent upon a future event when that contingent event becomes probable. Under this update, LIHTC structured investments for which the proportional amortization method is not applied can no longer be accounted for using the delayed equity contribution guidance. Further, this update specifies that impairment of LIHTC structure investments not accounted for using the equity method must apply the impairment guidance in Subtopic 323-10 - Investments - Equity Method and Joint Ventures - Overall. This update also clarifies that for LIHTC structure investments not accounted for under the proportional amortization method or the equity method, an entity shall account for them under Topic 321 - Investments - Equity Securities. The amendments in this update also require additional disclosures in interim and annual periods concerning investments for which the proportional amortization method is applied, including (i) the nature of tax equity investments, and (ii) the effect of tax equity investments and related income tax credits and other income tax benefits on the financial position and results of operations. The provisions of this update are effective for the Company for interim and annual periods beginning December 15, 2023. Early adoption is permitted. At December 31, 2023, the Company has one equity investment that is made for the primary purpose of receiving tax credits, and it is accounted for using the proportional amortization method of accounting. Refer to Note 2 – Investment Securities , for more information. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements–Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in this update modify the disclosure or presentation requirements for a variety of topics in the codification. Certain amendments represent clarifications to or technical corrections of the current requirements. The following is a summary of the topics included in the update and which pertain to the Company: 1.Statement of cash flows (Topic 230): Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows; 2.Accounting changes and error corrections (Topic 250): Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements; 3.Earnings per share (Topic 260): Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods, and amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings per share computation; 4.Commitments (Topic 440): Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized; and 5.Debt (Topic 470): Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. For public business entities, the amendments in ASU 2023-06 are effective on the date which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation and S-X or Regulation S-K, the pending content of the related amendment will be removed from the codification and will not become effective for any entity. Early adoption is not permitted and the amendments are required to be applied on a prospective basis. The Company expects the adoption of this standard will not have a material impact on its Consolidated Financial Statements.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Impact of Adopting ASU 2016-13	The following table presents the impact of adopting ASU 2016-13 on January 1, 2023: (dollars in thousands) Pre-CECL Adoption Impact of CECL Adoption As Reported under CECL Assets: Allowance for credit losses - loans Construction and land development $ 2,301 $ 881 $ 3,182 Real estate - other: 1-4 family residential 972 424 1,396 Multifamily residential 1,331 (279) 1,052 Commercial real estate and other 9,388 2,838 12,226 Commercial and industrial 3,079 1,132 4,211 Consumer 28 31 59 $ 17,099 $ 5,027 $ 22,126 Liabilities: Allowance for credit losses - unfunded loan commitments $ 1,310 $ 439 $ 1,749

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Amortized Cost and Fair Value of Held-to-Maturity Debt Securities	The amortized cost of held-to-maturity debt securities and their estimated fair values at December 31, 2023 and 2022 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair December 31, 2023 Taxable municipal $ 551 $ — $ (73) $ 478 Tax exempt bank-qualified municipals 53,065 25 (3,136) 49,954 $ 53,616 $ 25 $ (3,209) $ 50,432 December 31, 2022 Taxable municipal $ 550 $ — $ (105) $ 445 (dollars in thousands) Amortized Cost Gross Gross Estimated Fair Tax exempt bank-qualified municipals 53,396 — (5,935) 47,461 $ 53,946 $ — $ (6,040) $ 47,906
Amortized Cost and Fair Value of Available-for-Sale Debt Securities	The amortized cost of available-for-sale debt securities and their estimated fair values at December 31, 2023 and 2022 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair December 31, 2023 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 77,031 $ 631 $ (3,228) $ 74,434 SBA securities 5,886 5 (109) 5,782 U.S. Treasury 2,760 — (343) 2,417 U.S. Agency 2,000 — (330) 1,670 Collateralized mortgage obligations 46,330 173 (3,002) 43,501 Taxable municipal 1,528 — (107) 1,421 Tax exempt bank-qualified municipals 831 — (21) 810 $ 136,366 $ 809 $ (7,140) $ 130,035 December 31, 2022 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 27,029 $ — $ (3,734) $ 23,295 SBA securities 7,988 16 (132) 7,872 U.S. Treasury 6,652 — (700) 5,952 U.S. Agency 7,025 — (842) 6,183 Collateralized mortgage obligations 47,778 20 (3,375) 44,423 Taxable municipals 4,403 36 (211) 4,228 Tax exempt bank-qualified municipals 20,777 163 (313) 20,627 $ 121,652 $ 235 $ (9,307) $ 112,580
Schedule of Debt Securities Classified by Contractual Maturities	The amortized cost and estimated fair value of all held-to-maturity and available-for-sale debt securities as of December 31, 2023 by contractual maturities 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. Held-to-Maturity Available-for-Sale (dollars in thousands) Amortized Estimated Fair Amortized Estimated Fair Due in one year or less $ — $ — $ 520 $ 513 Due after one year through five years — — 5,608 5,122 Due after five years through ten years 12,915 12,297 20,219 18,066 Due after ten years 40,701 38,135 110,019 106,334 $ 53,616 $ 50,432 $ 136,366 $ 130,035
Schedule of Gross Realized Gains (Losses) of Available-for-Sale Debt Securities	The following table presents gross realized gains and losses, and related proceeds, for sales and calls of available-for-sale debt securities for the years ended December 31, 2023 and 2022: (dollars in thousands) 2023 2022 Gross gains on sales and calls $ 209 $ — Gross losses on sales and calls (1,183) (994) Loss on sale of available-for-sale debt securities $ (974) $ (994) Proceeds from sales and calls $ 37,737 $ 22,455
Gross Unrealized Losses and Estimated Fair Values of Available-for-Sale Debt Securities	The gross unrealized losses and related estimated fair values of all available-for-sale debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022 are summarized as follows: Less than 12 Months 12 Months or Longer Total (dollars in thousands) Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses Estimated December 31, 2023: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (160) $ 23,738 $ (3,068) $ 20,951 $ (3,228) $ 44,689 SBA securities (8) 2,193 (101) 1,790 (109) 3,983 U.S. Treasury — — (343) 2,417 (343) 2,417 Agency — — (330) 1,670 (330) 1,670 Collateralized mortgage obligations (311) 15,684 (2,691) 23,360 (3,002) 39,044 Taxable municipals — — (107) 921 (107) 921 Tax exempt bank-qualified municipals — — (21) 810 (21) 810 $ (479) $ 41,615 $ (6,661) $ 51,919 $ (7,140) $ 93,534 December 31, 2022: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (1,337) $ 9,888 $ (2,397) $ 13,407 $ (3,734) $ 23,295 SBA securities (1) 202 (131) 2,258 (132) 2,460 U.S. Treasury (277) 3,563 (423) 2,389 (700) 5,952 Agency (51) 474 (791) 5,709 (842) 6,183 Collateralized mortgage obligations (2,169) 35,331 (1,206) 6,029 (3,375) 41,360 Taxable municipals (75) 3,318 (136) 373 (211) 3,691 Tax exempt bank-qualified municipals (313) 14,081 — — (313) 14,081 $ (4,223) $ 66,857 $ (5,084) $ 30,165 $ (9,307) $ 97,022
Summary of Restricted Stock Investments	The table below summarizes the Company’s restricted stock investments at December 31: (dollars in thousands) 2023 2022 Federal Reserve Bank $ 7,430 $ 7,318 Federal Home Loan Bank 8,625 7,225 $ 16,055 $ 14,543

LOANS AND ALLOWANCE FOR CREDI_2

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)	12 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Summary of Loan Portfolio	The composition of the Company’s loan portfolio at December 31 and 2022 was as follows: (dollars in thousands) 2023 2022 Construction and land development $ 243,521 $ 239,067 Real estate - other: 1-4 family residential 143,903 144,322 Multifamily residential 221,247 218,606 Commercial real estate and other 1,024,243 958,676 Commercial and industrial (1) 320,142 331,644 Consumer 4,386 5,458 Loans (2) 1,957,442 1,897,773 Allowance for credit losses - loans (22,569) (17,099) Net loans $ 1,934,873 $ 1,880,674 1. Includes PPP loans with total outstanding principal of $1.3 million and $3.6 million and net unearned fees of $31 thousand and $76 thousand at December 31, 2023 and 2022. 2. Loans held for investment includes net unearned fees of $2.3 million and $3.3 million and net unearned discount of $1.4 million and $1.8 million at December 31, 2023 and 2022.
Schedule of Risk Category of Loans by Class and Origination Year	The risk category of loans by class of loans and origination year as of December 31, 2023 follows: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total December 31, 2023 Construction and land development Pass $ 25,113 $ 127,496 $ 71,199 $ 17,022 $ 2,071 $ 528 $ — $ — $ 243,429 Special mention — — — — — — — — — Substandard — — — — — 92 — — 92 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development 25,113 127,496 71,199 17,022 2,071 620 — — 243,521 Real estate - other: 1-4 family residential Pass 24,928 35,670 20,207 6,887 4,884 15,582 35,645 100 143,903 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1-4 family residential 24,928 35,670 20,207 6,887 4,884 15,582 35,645 100 143,903 Multifamily residential Pass 18,803 61,677 73,365 5,712 27,292 21,245 149 — 208,243 Special mention — — — — — — — — — Substandard — 13,004 — — — — — — 13,004 Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily residential 18,803 74,681 73,365 5,712 27,292 21,245 149 — 221,247 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Commercial real estate and other Pass 76,434 304,524 287,245 57,736 51,992 203,976 36,543 1,626 1,020,076 Special mention — 2,701 — — — — 295 — 2,996 Substandard — — — — — 1,171 — — 1,171 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate and other 76,434 307,225 287,245 57,736 51,992 205,147 36,838 1,626 1,024,243 Commercial and industrial Pass 46,701 70,658 12,883 7,095 8,266 13,715 153,712 1,877 314,907 Special mention — — — — — — — — — Substandard — 346 64 — 1,208 121 3,097 399 5,235 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and industrial 46,701 71,004 12,947 7,095 9,474 13,836 156,809 2,276 320,142 Consumer Pass 163 — 39 91 6 11 4,076 — 4,386 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 163 — 39 91 6 11 4,076 — 4,386 Total loans $ 192,142 $ 616,076 $ 465,002 $ 94,543 $ 95,719 $ 256,441 $ 233,517 $ 4,002 $ 1,957,442 Total loans Pass $ 192,142 $ 600,025 $ 464,938 $ 94,543 $ 94,511 $ 255,057 $ 230,125 $ 3,603 $ 1,934,944 Special mention — 2,701 — — — — 295 — 2,996 Substandard — 13,350 64 — 1,208 1,384 3,097 399 19,502 Doubtful — — — — — — — — — Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Loss — — — — — — — — — Total loans $ 192,142 $ 616,076 $ 465,002 $ 94,543 $ 95,719 $ 256,441 $ 233,517 $ 4,002 $ 1,957,442 A summary of gross charge-offs by class of loans and origination year for the year ended December 31, 2023 follows: Term Loans Gross Charge-offs by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Construction and land development $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - other: 1-4 family residential — — — — — (12) — — (12) Multifamily residential — (1,267) — — — — — — (1,267) Commercial real estate and other — — — — — — — — — Commercial and industrial — — — (15) — (9) — — (24) Consumer — — — — — — — — — Total loans $ — $ (1,267) $ — $ (15) $ — $ (21) $ — $ — $ (1,303) There were no loans classified as doubtful or loss at December 31, 2022. The risk category of loans by class of loans as of December 31, 2022 follows: (dollars in thousands) Pass Special Substandard Total December 31, 2022 Construction and land development $ 238,965 $ — $ 102 $ 239,067 Real estate - other: 1-4 family residential 143,284 999 39 144,322 Multifamily residential 218,606 — — 218,606 Commercial real estate and other 956,649 — 2,027 958,676 Commercial and industrial 323,999 6,057 1,588 331,644 Consumer 5,458 — — 5,458 $ 1,886,961 $ 7,056 $ 3,756 $ 1,897,773
Summary of Past Due Loans	A summary of past due loans as of December 31, 2023 and 2022 follows: Accruing Loans (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Past Due Total Current Nonaccrual Total December 31, 2023 Construction and land development $ — $ — $ — $ — $ 243,521 $ — $ 243,521 Real estate - other: 1-4 family residential — — — — 143,903 — 143,903 Multifamily residential — — — — 208,243 13,004 221,247 Commercial real estate and other — — — — 1,024,243 — 1,024,243 Commercial and industrial 19 — — 19 320,123 — 320,142 Consumer — — — — 4,386 — 4,386 $ 19 $ — $ — $ 19 $ 1,944,419 $ 13,004 $ 1,957,442 Accruing Loans (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Past Due Total Current Nonaccrual Total December 31, 2022 Construction and land development $ — $ — $ — $ — $ 239,067 $ — $ 239,067 Real estate - other: 1-4 family residential — — — — 144,283 39 144,322 Multifamily residential — — — — 218,606 — 218,606 Commercial real estate and other — — — — 958,674 2 958,676 Commercial and industrial — — — — 331,644 — 331,644 Consumer — — — — 5,458 — 5,458 $ — $ — $ — $ — $ 1,897,732 $ 41 $ 1,897,773
Summary of Nonaccrual Loans	A summary of total nonaccrual loans and the amount of nonaccrual loans with no related ACL as of December 31, 2023 and 2022 follows: December 31, 2023 December 31, 2022 (dollars in thousands) Total Nonaccrual Total Nonaccrual Construction and land development $ — $ — $ — $ — Real estate - other: 1-4 family residential — — 39 — Multifamily residential 13,004 13,004 — — Commercial real estate and other — — 2 — Commercial and industrial — — — — Consumer — — — — $ 13,004 $ 13,004 $ 41 $ —
Summary of Changes in Allowance for Credit Losses	A summary of the changes in the ACL for loans and unfunded commitments for the periods indicated follows: Year Ended (dollars in thousands) 2023 2022 Allowance for loan losses (ALL) Balance, beginning of period $ 17,099 $ 11,657 Adoption of ASU No. 2016-13 (1) 5,027 — Provision for loan losses 1,731 5,450 Charge-offs (1,303) (21) Recoveries 15 13 Net charge-offs (1,288) (8) Balance, end of period $ 22,569 $ 17,099 Reserve for unfunded loan commitments Balance, beginning of period $ 1,310 $ 804 Adoption of ASU No. 2016-13 (1) 439 — (Reversal of) provision for unfunded commitment losses (816) 506 Balance, end of period 933 1,310 Allowance for credit losses (ACL), end of period $ 23,502 $ 18,409 (1) Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, the Company’s methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology. A summary of changes in the ALL by loan portfolio segment for the periods indicated follows: (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Year Ended December 31, 2023 Beginning of period $ 2,301 $ 11,691 $ 3,079 $ 28 $ 17,099 Adoption of ASU No. 2016-13 (1) 881 2,983 1,132 31 5,027 (Reversal of) provision for loan losses (1,150) 2,885 40 (44) 1,731 Charge-offs — (1,279) (24) — (1,303) Recoveries — — 15 — 15 Net charge-offs — (1,279) (9) — (1,288) End of period $ 2,032 $ 16,280 $ 4,242 $ 15 $ 22,569 Year Ended December 31, 2022 Beginning of period $ 666 $ 8,441 $ 2,548 $ 2 $ 11,657 Provision for loan losses 1,635 3,250 539 26 5,450 Charge-offs — — (21) — (21) Recoveries — — 13 — 13 Net charge-offs — — (8) — (8) End of period $ 2,301 $ 11,691 $ 3,079 $ 28 $ 17,099 (1) Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, the Company’s methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology.

TRANSFERS AND SERVICING OF FI_2

TRANSFERS AND SERVICING OF FINANCIAL ASSETS (Tables)	12 Months Ended
	Dec. 31, 2023
Transfers and Servicing [Abstract]
Summary of Change in SBA Servicing Asset	A summary of change in the SBA servicing asset for the years ended December 31, 2023 and 2022 follows: (dollars in thousands) 2023 2022 Balance, beginning of period $ 514 $ 170 Additions 216 422 Amortization (1) (184) (78) Balance, end of period $ 546 $ 514 (1)
Significant Valuation Assumptions for the SBA Servicing Asset	The significant assumptions used in the valuation of the SBA servicing asset at December 31, 2023 and 2022 included: (dollars in thousands) December 31, December 31, Discount rate: Range 10.5% – 26.2% 13.9% – 34.3% Weighted average 16.1% 19.1% Prepayment speed: Range 11.2% – 48.1% 9.7% – 41.2% Weighted average 19.0% 17.0%
Components of Net Servicing Fees Included in Noninterest Income	The following table presents the components of net servicing fees, included in servicing and related income on loans, net (dollars in thousands) 2023 2022 Contractually specified fees $ 410 $ 203 Amortization (184) (78) Net servicing fees $ 226 $ 125

PREMISES AND EQUIPMENT AND LE_2

PREMISES AND EQUIPMENT AND LEASES (Tables)	12 Months Ended
	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Summary of Premises and Equipment	A summary of premises and equipment as of December 31 follows: (dollars in thousands) 2023 2022 Land $ 5,386 $ 5,386 Building 4,766 4,766 Leasehold improvements 5,584 5,351 Furniture & fixtures 2,377 2,228 Computer & other equipment 3,732 3,648 21,845 21,379 Less: Accumulated depreciation and amortization (8,575) (7,045) Total $ 13,270 $ 14,334
Summary of ROU Assets, Lease Liabilities and Supplemental Information	The ROU assets, lease liabilities and supplemental information at December 31 are shown below. (dollars in thousands) 2023 2022 Operating lease ROU assets $ 9,291 $ 8,607 Operating lease liability $ 12,117 $ 11,055 Weighted average remaining lease term, in years 5.49 5.69 Weighted average discount rate 5.6 % 5.6 %
Summary of Lease Expense	The following table presents the components of lease expense for the years ended December 31: (dollars in thousands) 2023 2022 Lease costs: Operating lease $ 2,894 $ 2,569 Short-term lease — 177 Total lease costs $ 2,894 $ 2,746 Other information: Cash paid for amounts included in lease liabilities $ 2,814 $ 2,615 ROU assets obtained for new operating lease obligations $ 3,193 $ 4,349
Summary of Lease Liabilities	Lease liabilities as of December 31, 2023, mature as indicated below: (dollars in thousands) Amount Twelve months ending December 31: 2024 $ 2,727 2025 2,530 2026 2,355 2027 2,252 2028 1,884 Thereafter 2,297 Total future minimum lease payments 14,045 Less: imputed interest 1,928 Present value of net future minimum lease payments $ 12,117

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Changes in Goodwill	The following table presents changes in the carrying amount of goodwill for the periods indicated: (dollars in thousands) 2023 2022 Beginning of the year $ 37,803 $ 36,784 Adjustments to goodwill (1) — 1,019 End of year $ 37,803 $ 37,803 (1) During the year ended December 31, 2022, the Bank finalized its allocation of purchase consideration to the net assets acquired from BSCA resulting in a $1.0 million
Summary of Changes in Core Deposit Intangibles	The following table presents the changes in core deposit intangibles for the years ended December 31: (dollars in thousands) 2023 2022 Gross balance, beginning of year $ 4,185 $ 4,185 Additions — — Gross balance, end of year $ 4,185 $ 4,185 Accumulated amortization: Balance, beginning of year $ (2,601) $ (2,163) Amortization (389) (438) Balance, end of period (2,990) (2,601) Net core deposit intangible, end of year $ 1,195 $ 1,584
Future Estimated Amortization Expense	Future estimated amortization expense for each of the next five years is as follows: (dollars in thousands) Amount 2024 $ 258 2025 237 2026 217 2027 205 2028 134 Thereafter 144 $ 1,195

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2023
Deposits [Abstract]
Scheduled Maturities of Time Deposits	At December 31, 2023, the scheduled maturities of time deposits are as follows: (dollars in thousands) Amount 2024 $ 232,059 2025 13,610 2026 4,077 2027 73 2028 11 $ 249,830

BORROWING ARRANGEMENTS (Tables)

BORROWING ARRANGEMENTS (Tables)	12 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Summary of Outstanding Borrowings	A summary of outstanding borrowings as of December 31 follows: (dollars in thousands) 2023 2022 FHLB advances $ 85,000 $ 50,000 Subordinated notes 17,865 17,770 Total borrowings $ 102,865 $ 67,770

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense	The income tax expense for the years ended December 31, is comprised of the following: (dollars in thousands) 2023 2022 Current tax expense: Federal $ 6,791 $ 5,257 State 3,737 3,163 Total current tax expense 10,528 8,420 Deferred taxes: Federal 108 (1,631) State 310 (919) Total deferred taxes 418 (2,550) Total income tax expense $ 10,946 $ 5,870
Schedule of Effective Income Tax Rate Reconciliation	A comparison of the federal statutory income tax rates to the Company’s effective income tax rates at December 31 follows: 2023 2022 (dollars in thousands) Amount Rate Amount Rate Statutory federal income tax provision $ 7,740 21.0 % $ 4,617 21.0 % State taxes 3,399 9.2 % 1,819 8.3 % Employee stock-based compensation (696) (1.9) % (163) (0.8) % Tax exempt interest income (314) (0.9) % (283) (1.3) % Excess Executive Compensation 895 2.4 % — 0.0 % Bank owned life insurance (199) (0.5) % (313) (1.4) % Net benefit related to tax credit equity investment (45) (0.1) % — 0.0 % Other 166 0.5 % 193 0.9 % $ 10,946 29.7 % $ 5,870 26.7 %
Summary of Components of Net Deferred Tax Assets	The following is a summary of the components of the net deferred tax asset accounts recognized in the accompanying consolidated balance sheets at December 31: (dollars in thousands) 2023 2022 Deferred tax assets: Allowance for loan losses $ 6,661 $ 5,036 Organizational expenses 78 85 Stock-based compensation 959 1,203 Fair value adjustment on acquired loans 257 298 Net operating loss carryforward 1,431 1,544 Accrued expenses 867 718 California franchise tax 858 674 Operating Lease liabilities 3,582 3,268 Unrealized loss on securities available for sale 1,871 2,633 Other 534 388 Total deferred tax assets 17,098 15,847 Deferred tax liabilities: Deferred loan costs (1,092) (1,202) Core deposit intangibles (565) (649) Depreciation differences (994) (361) Right of use asset (2,747) (2,544) Other (563) (392) Total deferred tax liabilities (5,961) (5,148) Net deferred tax assets $ 11,137 $ 10,699

EARNINGS PER SHARE (_EPS_) (Tab

EARNINGS PER SHARE (“EPS”) (Tables)	12 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Reconciliation of Net Income and Shares Outstanding to Compute EPS	The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute EPS: (dollars in thousands, except share and per share data) 2023 2022 Net income $ 25,910 $ 16,113 Weighted average common shares outstanding - basic 18,246,164 17,821,545 Dilutive effect of outstanding: Stock options and unvested stock grants 410,578 406,742 Weighted average common shares outstanding - diluted 18,656,742 18,228,287 Earnings per common share - basic $ 1.42 $ 0.90 Earnings per common share - diluted $ 1.39 $ 0.88

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Related Party Loans Outstanding	The balance of these loans outstanding and activity in related party loans for the periods ended December 31, 2023 and 2022 follows: (dollars in thousands) 2023 2022 Balance at beginning of year $ 8,073 $ 10,259 New credit granted — — Repayments (1) (2,145) (2,186) Balance at end of year $ 5,928 $ 8,073 (1) During the year ended December 31, 2022, one loan with outstanding balance of $636 thousand was paid off.

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Outstanding Financial Commitments Representing Potential Credit Risk	The Company had the following outstanding financial commitments whose contractual amount represents potential credit risk at December 31: (dollars in thousands) 2023 2022 Commitments to extend credit $ 405,854 $ 596,349 Letters of credit issued to customers 4,939 4,794 Commitments to contribute capital to other equity investments 3,170 6,041 $ 413,963 $ 607,184

STOCK-BASED COMPENSATION PLAN (

STOCK-BASED COMPENSATION PLAN (Tables)	12 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Changes in Outstanding Stock Options	A summary of changes in outstanding stock options during the years ended December 31, 2023 and 2022 are presented below: (dollars in thousands, except share data) Shares Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic December 31, 2023 Outstanding at beginning of year 326,868 $ 9.53 Exercised (16,000) $ 7.93 Forfeited (38,055) $ 11.89 Outstanding at end of year 272,813 $ 9.30 3.2 Years $ 2,196 Options exercisable 252,013 $ 9.07 3.0 Years $ 2,085 (dollars in thousands, except share data) Shares Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic December 31, 2022 Outstanding at beginning of year 536,651 $ 9.36 Exercised (136,100) $ 7.41 Forfeited (73,683) $ 12.18 Outstanding at end of year 326,868 $ 9.53 4.3 Years $ 2,385 Options exercisable 279,213 $ 9.13 3.9 Years $ 2,151
Summary of Changes in Outstanding Unvested Restricted Stock Units	A summary of the changes in outstanding unvested restricted stock units during the years ended December 31, 2023 and 2022 is presented below: December 31, 2023 Restricted Weighted Average Grant Date Fair Value Unvested at beginning of year 959,337 $ 11.55 Granted 205,422 $ 16.58 Vested (1) (470,648) $ 11.19 Forfeited (56,212) $ 15.23 Unvested at end of year 637,899 $ 13.11 (1) Included the vesting of performance-based awards totaling 275,171 shares, with a weighted average grant date fair value of $9.29 for the year ended December 31, 2023. December 31, 2022 Restricted Weighted Average Grant Date Fair Value Unvested at beginning of year 1,010,501 $ 10.55 Granted 257,378 $ 15.31 Vested (131,269) $ 11.69 Forfeited (177,273) $ 11.20 Unvested at end of year 959,337 $ 11.55

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2023
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Summary of Capital Amounts and Ratios	The following table also sets forth the Bank’s actual capital amounts and ratios: Amount of Capital Required To be To be Well- Adequately Capitalized under Actual Capitalized PCA Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023: Total Capital (to Risk-Weighted Assets) $ 289,743 13.51 % $ 171,575 8.0 % $ 214,469 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 270,341 12.61 % 128,681 6.0 % 171,575 8.0 % CET1 Capital (to Risk-Weighted Assets) 270,341 12.61 % 96,511 4.5 % 139,405 6.5 % Tier 1 Capital (to Average Assets) 270,341 11.65 % 92,818 4.0 % 116,022 5.0 % As of December 31, 2022: Total Capital (to Risk-Weighted Assets) $ 260,788 11.97 % $ 174,256 8.0 % $ 217,820 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 242,379 11.13 % 130,692 6.0 % 174,256 8.0 % CET1 Capital (to Risk-Weighted Assets) 242,379 11.13 % 98,019 4.5 % 141,583 6.5 % Tier 1 Capital (to Average Assets) 242,379 10.62 % 91,297 4.0 % 114,122 5.0 %

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy and Fair Value of Financial Instruments	The estimated fair value hierarchy level and estimated fair value of financial instruments at December 31, 2023 and 2022, is summarized as follows: 2023 2022 Estimated Estimated Fair Value Carrying Fair Carrying Fair (dollars in thousands) Hierarchy Value Value Value Value Financial assets: Cash and due from banks Level 1 $ 33,008 $ 33,008 $ 60,295 $ 60,295 Fed funds and interest-bearing balances Level 1 53,785 53,785 26,465 26,465 Debt securities available for sale Level 1/2 130,035 130,035 112,580 112,580 Debt securities held to maturity Level 2 53,616 50,432 53,946 47,906 Loans held for sale Level 2 7,349 7,834 9,027 9,616 Loans held for investment, net Level 3 1,934,873 1,883,154 1,880,674 1,836,782 Restricted stock, at cost Level 2 16,055 16,055 14,543 14,543 Other equity securities Level 2 9,187 9,187 6,974 6,974 Accrued interest receivable Level 2 7,301 7,301 6,868 6,868 Financial liabilities: Deposits Level 2 1,943,556 1,943,007 1,931,905 1,929,947 Borrowings Level 2 102,865 102,447 67,770 67,387 Accrued interest payable Level 2 477 477 215 215
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis	The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value on a recurring basis at the periods indicated: Recurring Fair Value Measurements (dollars in thousands) Level 1 Level 2 Level 3 Total December 31, 2023 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 74,434 $ — $ 74,434 SBA securities — 5,782 — 5,782 U.S. Treasury 2,417 — — 2,417 U.S. Agency — 1,670 — 1,670 Collateralized mortgage obligations — 43,501 — 43,501 Taxable municipal — 1,421 — 1,421 Tax exempt bank-qualified municipals — 810 — 810 $ 2,417 $ 127,618 $ — $ 130,035 December 31, 2022 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 23,295 $ — $ 23,295 SBA securities — 7,872 — 7,872 U.S. Treasury 5,952 — — 5,952 U.S. Agency — 6,183 — 6,183 Collateralized mortgage obligations — 44,423 — 44,423 Taxable municipal — 4,228 — 4,228 Tax exempt bank-qualified municipals — 20,627 — 20,627 $ 5,952 $ 106,628 $ — $ 112,580
Schedule of Fair Value of Assets and Liabilities Measured on Nonrecurring Basis	The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2023. Fair Value Measurement Level Quoted Prices in Active Markets for Significant Other Significant Fair Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Value (Level 1) (Level 2) (Level 3) December 31, 2023 Collateral dependent loans (1) : Multifamily Residential $ 13,000 $ — $ — $ 13,000 (1) Collateral-dependent loans whose fair value is based upon appraisals.
Summary of Quantitative Information About Fair Value Measurements Measured on Nonrecurring Basis	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis are summarized below as of December 31, 2023. Asset Fair Valuation Unobservable Range % (dollars in thousands) Value Technique Input (Weighted Average) December 31, 2023 Multifamily Residential $ 13,000 Income approach Capitalization rate 3.84%-4.94% (4.50%)

CONDENSED FINANCIAL INFORMATI_2

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY (Tables)	12 Months Ended
	Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]
CONDENSED BALANCE SHEETS	CONDENSED BALANCE SHEETS December 31, (dollars in thousands) 2023 2022 ASSETS Cash $ 3,586 $ 3,177 Investment in bank Subsidiary 301,455 274,714 Other investments 910 315 Accrued interest and other assets 110 214 Total assets $ 306,061 $ 278,420 December 31, (dollars in thousands) 2023 2022 LIABILITIES Subordinated debt and other borrowings $ 17,865 $ 17,770 Accrued interest and other liabilities 44 295 Total liabilities 17,909 18,065 SHAREHOLDERS’ EQUITY Common stock 222,036 218,280 Retained earnings 70,575 48,516 Accumulated other comprehensive loss, net of taxes (4,459) (6,441) Total shareholders’ equity 288,152 260,355 Total liabilities and shareholders’ equity $ 306,061 $ 278,420
CONDENSED STATEMENTS OF INCOME	CONDENSED STATEMENTS OF INCOME Year Ended December 31, (dollars in thousands) 2023 2022 INCOME Other interest and dividends $ — $ 2 Dividends from bank subsidiary 2,000 3,000 Total income 2,000 3,002 EXPENSES Interest on borrowings 1,085 1,155 Merger and related expenses — 1 Other noninterest expense 487 655 Total expenses 1,572 1,811 Income before income taxes 428 1,191 Income tax benefit 501 519 Income before equity in undistributed earnings of bank subsidiary 929 1,710 Equity in undistributed earnings of bank subsidiary 24,981 14,403 Net income $ 25,910 $ 16,113
CONDENSED STATEMENTS OF CASH FLOWS	CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, (dollars in thousands) 2023 2022 OPERATING ACTIVITIES Net Income $ 25,910 $ 16,113 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of debt issuance costs 95 95 Amortization of junior subordinated debentures fair value adjustment — 12 Loss on early debt extinguishment — 347 Equity in undistributed earnings of bank subsidiary (24,981) (14,403) Other items (147) 481 Net cash provided by operating activities 877 2,645 INVESTING ACTIVITIES Proceeds from junior subordinated debentures investment — 93 Net purchase of other equity investments (595) (315) Net cash used in investing activities (595) (222) FINANCING ACTIVITIES Repayment of other borrowings — (3,093) Proceeds from exercise of stock options $ 127 1,009 Net cash provided by (used in) financing activities 127 (2,084) Increase in cash and cash equivalents 409 339 Cash and cash equivalents, beginning of year 3,177 2,838 Cash and cash equivalents, end of year $ 3,586 $ 3,177

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands			3 Months Ended	12 Months Ended
		Jan. 01, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) office investment segment	Dec. 31, 2022 USD ($)		Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of branch offices | office				13
Reclassification of provision for loan losses on unfunded commitments in noninterest expense into provision for credit losses				$ 915	$ 5,956
Reclassification of provision for loan losses on unfunded commitments out of noninterest expense				$ (59,746)	(63,522)
Number of reportable segments | segment				1
Number of capital stock investments | investment				2
Allowance for credit losses for off-balance sheet commitments		$ 1,310		$ 933	1,310		$ 804
Foreclosures in process				$ 0	0
401(k) matching contributions, percent of salary				4%
401(k) contribution expense				$ 932	875
Reclassification of realized losses on sales of securities				974	994
Reclassification of realized losses on sales of securities, tax benefit				288	294
Goodwill impairment			$ 0	0	0
Litigation settlement, net				0	5,525
Decrease in retained earnings				(288,152)	(260,355)		(246,528)
Allowance for credit losses - loans		17,099		22,569	17,099		11,657
Deferred taxes, net				$ 11,137	10,699
Number of equity investments made for the primary purposes of receiving tax credits | investment				1
Construction and land development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Maximum LTV ratio				75%
Allowance for credit losses - loans		2,301		$ 2,032	2,301		666
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loan term				5 years
Allowance for credit losses - loans		28		$ 15	28		2
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Core deposit intangibles, amortization period				5 years
Minimum | Furniture and Equipment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives				3 years
Minimum | Premises
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives				45 years
Minimum | Construction and land development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loan term				12 months
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Core deposit intangibles, amortization period				7 years 9 months 18 days
Maximum | Furniture and Equipment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives				7 years
Maximum | Premises
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives				55 years
Maximum | Construction and land development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loan term				36 months
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in retained earnings				$ (70,575)	(48,516)		$ (32,403)
Adoption of ASU No. 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses for off-balance sheet commitments		439			439
Decrease in retained earnings	[1]				3,851
Adjustment to allowance for credit losses		5,500
Allowance for credit losses - loans		5,027			5,027
Deferred taxes, net		1,600
Adoption of ASU No. 2016-13 | Construction and land development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		881			881
Adoption of ASU No. 2016-13 | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		31			31
Adoption of ASU No. 2016-13 | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in retained earnings		$ 3,900			3,851	[1]
Reclassification, Other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification of provision for loan losses on unfunded commitments in noninterest expense into provision for credit losses					506
Reclassification of provision for loan losses on unfunded commitments out of noninterest expense					$ 506
[1]Related to the adoption of Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of Adopting ASU 2016-13 (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	$ 22,569	$ 17,099	$ 17,099	$ 11,657
Allowance for credit losses - unfunded loan commitments	933	1,310	1,310	804
Construction and land development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	2,032	2,301	2,301	666
Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	16,280		11,691	8,441
Commercial and industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	4,242	3,079	3,079	2,548
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	$ 15	28	28	$ 2
1-4 family residential | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		972
Multifamily residential | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		1,331
Commercial real estate and other | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		9,388
Impact of CECL Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		5,027	5,027
Allowance for credit losses - unfunded loan commitments		439	439
Impact of CECL Adoption | Construction and land development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		881	881
Impact of CECL Adoption | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans			2,983
Impact of CECL Adoption | Commercial and industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		1,132	1,132
Impact of CECL Adoption | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		31	$ 31
Impact of CECL Adoption | 1-4 family residential | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		424
Impact of CECL Adoption | Multifamily residential | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		(279)
Impact of CECL Adoption | Commercial real estate and other | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		2,838
As Reported under CECL
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		22,126
Allowance for credit losses - unfunded loan commitments		1,749
As Reported under CECL | Construction and land development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		3,182
As Reported under CECL | Commercial and industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		4,211
As Reported under CECL | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		59
As Reported under CECL | 1-4 family residential | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		1,396
As Reported under CECL | Multifamily residential | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		1,052
As Reported under CECL | Commercial real estate and other | Real estate - other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		$ 12,226

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized Cost and Fair Value of Held-to-Maturity Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-Maturity, Amortized Cost	$ 53,616	$ 53,946
Gross Unrealized Gains	25	0
Gross Unrealized Losses	(3,209)	(6,040)
Estimated Fair Value	50,432	47,906
Taxable municipal
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-Maturity, Amortized Cost	551	550
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(73)	(105)
Estimated Fair Value	478	445
Tax exempt bank-qualified municipals
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-Maturity, Amortized Cost	53,065	53,396
Gross Unrealized Gains	25	0
Gross Unrealized Losses	(3,136)	(5,935)
Estimated Fair Value	$ 49,954	$ 47,461

INVESTMENT SECURITIES - Amort_2

INVESTMENT SECURITIES - Amortized Cost and Fair Value of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 136,366	$ 121,652
Gross Unrealized Gains	809	235
Gross Unrealized Losses	(7,140)	(9,307)
Estimated Fair Value	130,035	112,580
Mortgage-backed securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	77,031	27,029
Gross Unrealized Gains	631	0
Gross Unrealized Losses	(3,228)	(3,734)
Estimated Fair Value	74,434	23,295
SBA securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	5,886	7,988
Gross Unrealized Gains	5	16
Gross Unrealized Losses	(109)	(132)
Estimated Fair Value	5,782	7,872
U.S. Treasury
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	2,760	6,652
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(343)	(700)
Estimated Fair Value	2,417	5,952
U.S. Agency
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	2,000	7,025
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(330)	(842)
Estimated Fair Value	1,670	6,183
Collateralized mortgage obligations
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	46,330	47,778
Gross Unrealized Gains	173	20
Gross Unrealized Losses	(3,002)	(3,375)
Estimated Fair Value	43,501	44,423
Taxable municipal
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	1,528	4,403
Gross Unrealized Gains	0	36
Gross Unrealized Losses	(107)	(211)
Estimated Fair Value	1,421	4,228
Tax exempt bank-qualified municipals
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	831	20,777
Gross Unrealized Gains	0	163
Gross Unrealized Losses	(21)	(313)
Estimated Fair Value	$ 810	$ 20,627

INVESTMENT SECURITIES - Narrati

INVESTMENT SECURITIES - Narrative (Details) $ in Thousands			12 Months Ended
	Dec. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($) security	Dec. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Debt Securities, Available-for-Sale [Line Items]
Accrued interest receivable on debt securities	$ 788	$ 1,100	$ 788	$ 1,100
Held-to-maturity debt securities pledged as collateral	$ 53,616	$ 53,946	$ 53,616	$ 53,946
Number of available-for-sale debt securities in a gross unrealized loss position | security	76	88	76	88
Available-for-sale debt securities in a gross unrealized loss position	$ 7,140	$ 9,307	$ 7,140	$ 9,307
Number of available-for-sale debt securities with total unrealized losses in a continual loss position for 12 months or longer | security	58	43	58	43
Unrealized losses in a continual loss position for 12 months or longer	$ 6,661	$ 5,084	$ 6,661	$ 5,084
Net unrealized loss on available-for-sale debt securities	6,300	9,100
Net unrealized loss on available-for-sale debt securities, net of tax	4,500	6,400	4,500	6,400
Debt securities available for sale	$ 130,035	$ 112,580	$ 130,035	$ 112,580
Number of held-to-maturity debt securities | security	58	61	58	61
Debt securities held-to-maturity, unrealized loss position, fair value	$ 48,300	$ 47,900	$ 48,300	$ 47,900
Unrealized losses on held-to-maturity debt securities	3,209	6,040	3,209	6,040
Provision for credit losses on held-to-maturity debt securities			0
Provision for credit losses on available-for-sale debt securities			0
Other-than-temporary unrealized losses		0		0
Federal Reserve Bank stock purchased			112
FHLB stock purchased			1,400
Standard & Poor's, AA Rating And Above
Debt Securities, Available-for-Sale [Line Items]
Debt securities available for sale	1,400		1,400
Debt securities held-to-maturity	47,000		47,000
Standard & Poor's, A+ Rating
Debt Securities, Available-for-Sale [Line Items]
Debt securities available for sale	810		810
Standard & Poor's, AA- Rating
Debt Securities, Available-for-Sale [Line Items]
Debt securities held-to-maturity	3,400		3,400
Taxable municipal
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	551	550	551	550
Available-for-sale debt securities in a gross unrealized loss position	107	211	107	211
Unrealized losses in a continual loss position for 12 months or longer	107	136	107	136
Debt securities available for sale	1,421	4,228	1,421	4,228
Unrealized losses on held-to-maturity debt securities	73	105	73	105
Tax exempt bank-qualified municipals
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	53,065	53,396	53,065	53,396
Available-for-sale debt securities in a gross unrealized loss position	21	313	21	313
Unrealized losses in a continual loss position for 12 months or longer	21	0	21	0
Debt securities available for sale	810	20,627	810	20,627
Unrealized losses on held-to-maturity debt securities	3,136	5,935	3,136	5,935
Other Bank Stock
Debt Securities, Available-for-Sale [Line Items]
Equity securities without readily determinable fair values	351	351	351	351
Impairment loss from change in fair value of other equity securities			0	0
Other Equity Investments
Debt Securities, Available-for-Sale [Line Items]
Equity securities without readily determinable fair values	7,000	4,600	7,000	4,600
Impairment loss from change in fair value of other equity securities			0	0
Net capital contributions made to equity investments			2,300	2,800
Limited Partnership
Debt Securities, Available-for-Sale [Line Items]
Affordable housing projects, estimated tax credits allocated			170
Affordable housing projects, proportional amortization expense			126
Affordable housing projects, aggregate funding commitment	2,000	2,000	2,000	2,000
Affordable housing projects, unfunded portion of commitment	1,500	1,900	1,500	1,900
Affordable housing projects, capital contributions			349	122
Affordable housing projects, loss recognized on changes in fair value			0	0
Collateralized Line of Credit | Federal Reserve Bank | Line of Credit
Debt Securities, Available-for-Sale [Line Items]
Collateralized line of credit	47,300		47,300
Asset Pledged as Collateral | Federal Reserve Bank Advances
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	$ 53,600	$ 0	$ 53,600	$ 0

INVESTMENT SECURITIES - Schedul

INVESTMENT SECURITIES - Schedule of Debt Securities Classified by Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Held-to-Maturity, Amortized Cost
Due in one year or less	$ 0
Due after one year through five years	0
Due after five years through ten years	12,915
Due after ten years	40,701
Held-to-Maturity, Amortized Cost	53,616	$ 53,946
Held-to-Maturity, Estimated Fair Value
Due in one year or less	0
Due after one year through five years	0
Due after five years through ten years	12,297
Due after ten years	38,135
Held-to-Maturity, Estimated Fair Value	50,432	47,906
Available-for-Sale, Amortized Cost
Due in one year or less	520
Due after one year through five years	5,608
Due after five years through ten years	20,219
Due after ten years	110,019
Amortized Cost	136,366	121,652
Available-for-Sale, Estimated Fair Value
Due in one year or less	513
Due after one year through five years	5,122
Due after five years through ten years	18,066
Due after ten years	106,334
Available-for-Sale, Estimated Fair Value	$ 130,035	$ 112,580

INVESTMENT SECURITIES - Sched_2

INVESTMENT SECURITIES - Schedule of Gross Realized Gains (Losses) of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Gross gains on sales and calls	$ 209	$ 0
Gross losses on sales and calls	(1,183)	(994)
Loss on sale of available-for-sale debt securities	(974)	(994)
Proceeds from sales and calls	$ 37,737	$ 22,455

INVESTMENT SECURITIES - Gross U

INVESTMENT SECURITIES - Gross Unrealized Losses and Estimated Fair Values of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, gross unrealized losses	$ (479)	$ (4,223)
Less than 12 months, fair value	41,615	66,857
12 months or longer, gross unrealized losses	(6,661)	(5,084)
12 months or longer, fair value	51,919	30,165
Total, gross unrealized losses	(7,140)	(9,307)
Total, estimated fair value	93,534	97,022
Mortgage-backed securities
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, gross unrealized losses	(160)	(1,337)
Less than 12 months, fair value	23,738	9,888
12 months or longer, gross unrealized losses	(3,068)	(2,397)
12 months or longer, fair value	20,951	13,407
Total, gross unrealized losses	(3,228)	(3,734)
Total, estimated fair value	44,689	23,295
SBA securities
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, gross unrealized losses	(8)	(1)
Less than 12 months, fair value	2,193	202
12 months or longer, gross unrealized losses	(101)	(131)
12 months or longer, fair value	1,790	2,258
Total, gross unrealized losses	(109)	(132)
Total, estimated fair value	3,983	2,460
U.S. Treasury
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, gross unrealized losses	0	(277)
Less than 12 months, fair value	0	3,563
12 months or longer, gross unrealized losses	(343)	(423)
12 months or longer, fair value	2,417	2,389
Total, gross unrealized losses	(343)	(700)
Total, estimated fair value	2,417	5,952
Agency
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, gross unrealized losses	0	(51)
Less than 12 months, fair value	0	474
12 months or longer, gross unrealized losses	(330)	(791)
12 months or longer, fair value	1,670	5,709
Total, gross unrealized losses	(330)	(842)
Total, estimated fair value	1,670	6,183
Collateralized mortgage obligations
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, gross unrealized losses	(311)	(2,169)
Less than 12 months, fair value	15,684	35,331
12 months or longer, gross unrealized losses	(2,691)	(1,206)
12 months or longer, fair value	23,360	6,029
Total, gross unrealized losses	(3,002)	(3,375)
Total, estimated fair value	39,044	41,360
Taxable municipals
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, gross unrealized losses	0	(75)
Less than 12 months, fair value	0	3,318
12 months or longer, gross unrealized losses	(107)	(136)
12 months or longer, fair value	921	373
Total, gross unrealized losses	(107)	(211)
Total, estimated fair value	921	3,691
Tax exempt bank-qualified municipals
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]
Less than 12 months, gross unrealized losses	0	(313)
Less than 12 months, fair value	0	14,081
12 months or longer, gross unrealized losses	(21)	0
12 months or longer, fair value	810	0
Total, gross unrealized losses	(21)	(313)
Total, estimated fair value	$ 810	$ 14,081

INVESTMENT SECURITIES - Summary

INVESTMENT SECURITIES - Summary of Restricted Stock Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Federal Reserve Bank	$ 7,430	$ 7,318
Federal Home Loan Bank	8,625	7,225
Restricted stock investments	$ 16,055	$ 14,543

LOANS AND ALLOWANCE FOR CREDI_3

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) $ in Thousands			12 Months Ended
	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) property	Dec. 31, 2022 USD ($)	Jan. 01, 2023 USD ($)	Dec. 31, 2021 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged with FHLB under blanket lien	$ 1,380,000		$ 1,380,000
Loans	1,957,442	$ 1,897,773	1,957,442	$ 1,897,773
Loans held for sale	7,349	9,027	7,349	9,027
Fair value of loans held for sale	7,800	9,600	7,800	9,600
Loans classified as collateral dependent loans	13,004	41	13,004	41
Accrued interest and other assets	$ 6,400	$ 5,700	$ 6,400	$ 5,700
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued interest and other assets	Accrued interest and other assets	Accrued interest and other assets	Accrued interest and other assets
Provision (negative provision) for unfunded loan commitments			$ (816)	$ 506
Reserve for unfunded loan commitments	$ 933	$ 1,310	933	1,310	$ 1,310	$ 804
Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	0	0	0	0
Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	0	0	0	0
Federal Home Loan Bank Advances | Asset Pledged as Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	893,800		893,800
Federal Reserve Bank Advances | Asset Pledged as Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	116,800		116,800
Real estate - other | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	221,247	218,606	221,247	218,606
Loans classified as collateral dependent loans	13,004	$ 0	13,004	$ 0
Charge-off from impairment of collateral dependent loan	1,300		1,300
Real estate - other | Multifamily residential | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	0		0
Real estate - other | Multifamily residential | Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 0		$ 0
Real estate - other | Asset Pledged as Collateral | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of investment properties | property	3		3
Financing Receivable | Credit Concentration Risk | Real estate - other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans	83%	82%

LOANS AND ALLOWANCE FOR CREDI_4

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Loan Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	$ 1,957,442		$ 1,897,773
Allowance for credit losses	(22,569)	$ (17,099)	(17,099)	$ (11,657)
Loans held for investment, net	1,934,873		1,880,674
Net unearned fees	2,300		3,300
Net unearned discount	1,400		1,800
Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	243,521		239,067
Allowance for credit losses	(2,032)	(2,301)	(2,301)	(666)
Real estate - other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	(16,280)		(11,691)	(8,441)
Real estate - other | 1-4 family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	143,903		144,322
Allowance for credit losses		(972)
Real estate - other | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	221,247		218,606
Allowance for credit losses		(1,331)
Real estate - other | Commercial real estate and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	1,024,243		958,676
Allowance for credit losses		(9,388)
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	320,142		331,644
Allowance for credit losses	(4,242)	(3,079)	(3,079)	(2,548)
Commercial and industrial | PPP loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	1,300		3,600
Net unearned fees	31		76
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	4,386		5,458
Allowance for credit losses	$ (15)	$ (28)	$ (28)	$ (2)

LOANS AND ALLOWANCE FOR CREDI_5

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Risk Category of Loans by Class and Origination Year (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Term Loans Amortized Cost Basis by Origination Year
2023	$ 192,142
2022	616,076
2021	465,002
2020	94,543
2019	95,719
Prior	256,441
Revolving Loans Amortized Cost Basis	233,517
Revolving Loans Amortized Cost Basis Converted to Term During the Period	4,002
Loans held for investment	1,957,442	$ 1,897,773
Term Loans Gross Charge-offs by Origination Year
2023	0
2022	(1,267)
2021	0
2020	(15)
2019	0
Prior	(21)
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Total	(1,303)	(21)
Construction and land development
Term Loans Amortized Cost Basis by Origination Year
2023	25,113
2022	127,496
2021	71,199
2020	17,022
2019	2,071
Prior	620
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	243,521	239,067
Term Loans Gross Charge-offs by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Total	0	0
Real estate - other
Term Loans Gross Charge-offs by Origination Year
Total	(1,279)	0
Real estate - other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	24,928
2022	35,670
2021	20,207
2020	6,887
2019	4,884
Prior	15,582
Revolving Loans Amortized Cost Basis	35,645
Revolving Loans Amortized Cost Basis Converted to Term During the Period	100
Loans held for investment	143,903	144,322
Term Loans Gross Charge-offs by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	(12)
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Total	(12)
Real estate - other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	18,803
2022	74,681
2021	73,365
2020	5,712
2019	27,292
Prior	21,245
Revolving Loans Amortized Cost Basis	149
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	221,247	218,606
Term Loans Gross Charge-offs by Origination Year
2023	0
2022	(1,267)
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Total	(1,267)
Real estate - other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	76,434
2022	307,225
2021	287,245
2020	57,736
2019	51,992
Prior	205,147
Revolving Loans Amortized Cost Basis	36,838
Revolving Loans Amortized Cost Basis Converted to Term During the Period	1,626
Loans held for investment	1,024,243	958,676
Term Loans Gross Charge-offs by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Total	0
Commercial and industrial
Term Loans Amortized Cost Basis by Origination Year
2023	46,701
2022	71,004
2021	12,947
2020	7,095
2019	9,474
Prior	13,836
Revolving Loans Amortized Cost Basis	156,809
Revolving Loans Amortized Cost Basis Converted to Term During the Period	2,276
Loans held for investment	320,142	331,644
Term Loans Gross Charge-offs by Origination Year
2023	0
2022	0
2021	0
2020	(15)
2019	0
Prior	(9)
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Total	(24)	(21)
Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	163
2022	0
2021	39
2020	91
2019	6
Prior	11
Revolving Loans Amortized Cost Basis	4,076
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	4,386	5,458
Term Loans Gross Charge-offs by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Total	0	0
Pass
Term Loans Amortized Cost Basis by Origination Year
2023	192,142
2022	600,025
2021	464,938
2020	94,543
2019	94,511
Prior	255,057
Revolving Loans Amortized Cost Basis	230,125
Revolving Loans Amortized Cost Basis Converted to Term During the Period	3,603
Loans held for investment	1,934,944	1,886,961
Pass | Construction and land development
Term Loans Amortized Cost Basis by Origination Year
2023	25,113
2022	127,496
2021	71,199
2020	17,022
2019	2,071
Prior	528
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	243,429	238,965
Pass | Real estate - other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	24,928
2022	35,670
2021	20,207
2020	6,887
2019	4,884
Prior	15,582
Revolving Loans Amortized Cost Basis	35,645
Revolving Loans Amortized Cost Basis Converted to Term During the Period	100
Loans held for investment	143,903	143,284
Pass | Real estate - other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	18,803
2022	61,677
2021	73,365
2020	5,712
2019	27,292
Prior	21,245
Revolving Loans Amortized Cost Basis	149
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	208,243	218,606
Pass | Real estate - other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	76,434
2022	304,524
2021	287,245
2020	57,736
2019	51,992
Prior	203,976
Revolving Loans Amortized Cost Basis	36,543
Revolving Loans Amortized Cost Basis Converted to Term During the Period	1,626
Loans held for investment	1,020,076	956,649
Pass | Commercial and industrial
Term Loans Amortized Cost Basis by Origination Year
2023	46,701
2022	70,658
2021	12,883
2020	7,095
2019	8,266
Prior	13,715
Revolving Loans Amortized Cost Basis	153,712
Revolving Loans Amortized Cost Basis Converted to Term During the Period	1,877
Loans held for investment	314,907	323,999
Pass | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	163
2022	0
2021	39
2020	91
2019	6
Prior	11
Revolving Loans Amortized Cost Basis	4,076
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	4,386	5,458
Special mention
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	2,701
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	295
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	2,996	7,056
Special mention | Construction and land development
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	0
Special mention | Real estate - other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	999
Special mention | Real estate - other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	0
Special mention | Real estate - other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	2,701
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	295
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	2,996	0
Special mention | Commercial and industrial
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	6,057
Special mention | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	0
Substandard
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	13,350
2021	64
2020	0
2019	1,208
Prior	1,384
Revolving Loans Amortized Cost Basis	3,097
Revolving Loans Amortized Cost Basis Converted to Term During the Period	399
Loans held for investment	19,502	3,756
Substandard | Construction and land development
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	92
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	92	102
Substandard | Real estate - other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	39
Substandard | Real estate - other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	13,004
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	13,004	0
Substandard | Real estate - other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	1,171
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	1,171	2,027
Substandard | Commercial and industrial
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	346
2021	64
2020	0
2019	1,208
Prior	121
Revolving Loans Amortized Cost Basis	3,097
Revolving Loans Amortized Cost Basis Converted to Term During the Period	399
Loans held for investment	5,235	1,588
Substandard | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	0
Doubtful
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	0
Doubtful | Construction and land development
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Doubtful | Real estate - other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Doubtful | Real estate - other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Doubtful | Real estate - other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Doubtful | Commercial and industrial
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Doubtful | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Loss
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0	$ 0
Loss | Construction and land development
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Loss | Real estate - other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Loss | Real estate - other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Loss | Real estate - other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Loss | Commercial and industrial
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	0
Loss | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0
Loans held for investment	$ 0

LOANS AND ALLOWANCE FOR CREDI_6

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Past Due Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Loans	$ 1,957,442	$ 1,897,773
Nonaccrual	13,004	41
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	19	0
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	19	0
Current
Financing Receivable, Past Due [Line Items]
Loans	1,944,419	1,897,732
Construction and land development
Financing Receivable, Past Due [Line Items]
Loans	243,521	239,067
Nonaccrual	0	0
Construction and land development | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction and land development | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction and land development | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction and land development | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction and land development | Current
Financing Receivable, Past Due [Line Items]
Loans	243,521	239,067
Real estate - other | 1-4 family residential
Financing Receivable, Past Due [Line Items]
Loans	143,903	144,322
Nonaccrual	0	39
Real estate - other | 1-4 family residential | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | 1-4 family residential | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | 1-4 family residential | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | 1-4 family residential | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | 1-4 family residential | Current
Financing Receivable, Past Due [Line Items]
Loans	143,903	144,283
Real estate - other | Multifamily residential
Financing Receivable, Past Due [Line Items]
Loans	221,247	218,606
Nonaccrual	13,004	0
Real estate - other | Multifamily residential | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | Multifamily residential | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | Multifamily residential | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | Multifamily residential | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | Multifamily residential | Current
Financing Receivable, Past Due [Line Items]
Loans	208,243	218,606
Real estate - other | Commercial real estate and other
Financing Receivable, Past Due [Line Items]
Loans	1,024,243	958,676
Nonaccrual	0	2
Real estate - other | Commercial real estate and other | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | Commercial real estate and other | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | Commercial real estate and other | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | Commercial real estate and other | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real estate - other | Commercial real estate and other | Current
Financing Receivable, Past Due [Line Items]
Loans	1,024,243	958,674
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans	320,142	331,644
Nonaccrual	0	0
Commercial and industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	19	0
Commercial and industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial and industrial | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial and industrial | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	19	0
Commercial and industrial | Current
Financing Receivable, Past Due [Line Items]
Loans	320,123	331,644
Consumer
Financing Receivable, Past Due [Line Items]
Loans	4,386	5,458
Nonaccrual	0	0
Consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | Current
Financing Receivable, Past Due [Line Items]
Loans	$ 4,386	$ 5,458

LOANS AND ALLOWANCE FOR CREDI_7

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	$ 13,004	$ 41
Nonaccrual Loans with no ACL	13,004	0
Construction and land development
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	0	0
Nonaccrual Loans with no ACL	0	0
Real estate - other | 1-4 family residential
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	0	39
Nonaccrual Loans with no ACL	0	0
Real estate - other | Multifamily residential
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	13,004	0
Nonaccrual Loans with no ACL	13,004	0
Real estate - other | Commercial real estate and other
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	0	2
Nonaccrual Loans with no ACL	0	0
Commercial and industrial
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	0	0
Nonaccrual Loans with no ACL	0	0
Consumer
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	0	0
Nonaccrual Loans with no ACL	$ 0	$ 0

LOANS AND ALLOWANCE FOR CREDI_8

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Allowance for loan losses (ALL)
Balance, beginning of period	$ 17,099	$ 11,657
(Reversal of) provision for loan losses	1,731	5,450
Charge-offs	(1,303)	(21)
Recoveries	15	13
Net charge-offs	(1,288)	(8)
Balance, end of period	22,569	17,099
Reserve for unfunded loan commitments
Balance, beginning of period	1,310	804
(Reversal of) provision for unfunded commitment losses	(816)	506
Balance, end of period	933	1,310
Allowance for credit losses (ACL), end of period	23,502	18,409
Construction and Land Development
Allowance for loan losses (ALL)
Balance, beginning of period	2,301	666
(Reversal of) provision for loan losses	(1,150)	1,635
Charge-offs	0	0
Recoveries	0	0
Net charge-offs	0	0
Balance, end of period	2,032	2,301
Real Estate - Other
Allowance for loan losses (ALL)
Balance, beginning of period	11,691	8,441
(Reversal of) provision for loan losses	2,885	3,250
Charge-offs	(1,279)	0
Recoveries	0	0
Net charge-offs	(1,279)	0
Balance, end of period	16,280	11,691
Commercial & Industrial
Allowance for loan losses (ALL)
Balance, beginning of period	3,079	2,548
(Reversal of) provision for loan losses	40	539
Charge-offs	(24)	(21)
Recoveries	15	13
Net charge-offs	(9)	(8)
Balance, end of period	4,242	3,079
Consumer
Allowance for loan losses (ALL)
Balance, beginning of period	28	2
(Reversal of) provision for loan losses	(44)	26
Charge-offs	0	0
Recoveries	0	0
Net charge-offs	0	0
Balance, end of period	15	28
Adoption of ASU No. 2016-13
Allowance for loan losses (ALL)
Balance, beginning of period	5,027
Balance, end of period		5,027
Reserve for unfunded loan commitments
Balance, beginning of period	439
Balance, end of period		439
Adoption of ASU No. 2016-13 | Construction and Land Development
Allowance for loan losses (ALL)
Balance, beginning of period	881
Balance, end of period		881
Adoption of ASU No. 2016-13 | Real Estate - Other
Allowance for loan losses (ALL)
Balance, beginning of period	2,983
Balance, end of period		2,983
Adoption of ASU No. 2016-13 | Commercial & Industrial
Allowance for loan losses (ALL)
Balance, beginning of period	1,132
Balance, end of period		1,132
Adoption of ASU No. 2016-13 | Consumer
Allowance for loan losses (ALL)
Balance, beginning of period	$ 31
Balance, end of period		$ 31

TRANSFERS AND SERVICING OF FI_3

TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Servicing Assets at Fair Value [Line Items]
Loans serviced	$ 58,800	$ 59,400
Loans serviced with related servicing asset	35,400	30,300
Servicing asset	546	514	$ 170
Loans sold	10,900	20,000
Gain on sale of loans	$ 874	$ 1,300
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Servicing and related income on loans, net	Servicing and related income on loans, net
Minimum
Servicing Assets at Fair Value [Line Items]
Servicing fees, percent	0.25%
Maximum
Servicing Assets at Fair Value [Line Items]
Servicing fees, percent	1%

TRANSFERS AND SERVICING OF FI_4

TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Summary of Change in SBA Servicing Asset (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance, beginning of period	$ 514	$ 170
Additions	216	422
Amortization	(184)	(78)
Balance, end of period	546	514
Accelerated amortization	$ 92	$ 40

TRANSFERS AND SERVICING OF FI_5

TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Significant Valuation Assumptions for the SBA Servicing Asset (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Minimum
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	10.50%	13.90%
Prepayment speed (percent)	11.20%	9.70%
Maximum
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	26.20%	34.30%
Prepayment speed (percent)	48.10%	41.20%
Weighted average
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	16.10%	19.10%
Prepayment speed (percent)	19%	17%

TRANSFERS AND SERVICING OF FI_6

TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Components of Net Servicing Fees Included in Noninterest Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Transfers and Servicing [Abstract]
Contractually specified fees	$ 410	$ 203
Amortization	(184)	(78)
Net servicing fees	$ 226	$ 125

PREMISES AND EQUIPMENT AND LE_3

PREMISES AND EQUIPMENT AND LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 21,845	$ 21,379
Less: Accumulated depreciation and amortization	(8,575)	(7,045)
Premises and equipment	13,270	14,334
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	5,386	5,386
Building
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	4,766	4,766
Leasehold improvements
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	5,584	5,351
Furniture & fixtures
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	2,377	2,228
Computer & other equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 3,732	$ 3,648

PREMISES AND EQUIPMENT AND LE_4

PREMISES AND EQUIPMENT AND LEASES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Depreciation on premises and equipment	$ 1,530	$ 1,563
Loss on sale and disposal of fixed assets	0	768
ROU asset impairment	$ 134	$ 136
Minimum
Property, Plant and Equipment [Line Items]
Operating lease, remaining lease term	6 months
Maximum
Property, Plant and Equipment [Line Items]
Operating lease, remaining lease term	9 years 6 months

PREMISES AND EQUIPMENT AND LE_5

PREMISES AND EQUIPMENT AND LEASES - ROU Assets, Lease Liabilities and Supplemental Information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Operating lease ROU assets	$ 9,291	$ 8,607
Operating lease liability	$ 12,117	$ 11,055
Weighted average remaining lease term, in years	5 years 5 months 26 days	5 years 8 months 8 days
Weighted average discount rate	5.60%	5.60%

PREMISES AND EQUIPMENT AND LE_6

PREMISES AND EQUIPMENT AND LEASES - Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Lease costs:
Operating lease	$ 2,894	$ 2,569
Short-term lease	0	177
Total lease costs	2,894	2,746
Other information:
Cash paid for amounts included in lease liabilities	2,814	2,615
ROU assets obtained for new operating lease obligations	$ 3,193	$ 4,349

PREMISES AND EQUIPMENT AND LE_7

PREMISES AND EQUIPMENT AND LEASES - Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
2024	$ 2,727
2025	2,530
2026	2,355
2027	2,252
2028	1,884
Thereafter	2,297
Total future minimum lease payments	14,045
Less: imputed interest	1,928
Present value of net future minimum lease payments	$ 12,117	$ 11,055

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Goodwill			$ 37,803	$ 37,803	$ 36,784
Goodwill impairment		$ 0	$ 0	$ 0
Weighted-average remaining amortization period for core deposit intangibles			6 years 1 month 6 days
Accelerated amortization	$ 38
Minimum
Finite-Lived Intangible Assets [Line Items]
Core deposit intangibles, amortization period			5 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Core deposit intangibles, amortization period			7 years 9 months 18 days

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Goodwill [Roll Forward]
Beginning of the year	$ 37,803	$ 36,784
Adjustments to goodwill	0	1,019
End of year	37,803	37,803
Goodwill adjustments	$ 0	$ 1,019

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Changes in Core Deposit Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Roll Forward]
Gross balance, beginning of year	$ 4,185	$ 4,185
Additions	0	0
Gross balance, end of year	4,185	4,185
Accumulated amortization:
Balance, beginning of year	(2,601)	(2,163)
Amortization	(389)	(438)
Balance, end of period	(2,990)	(2,601)
Intangible assets, net	$ 1,195	$ 1,584

GOODWILL AND OTHER INTANGIBLE_6

GOODWILL AND OTHER INTANGIBLE ASSETS - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 258
2025	237
2026	217
2027	205
2028	134
Thereafter	144
Intangible assets, net	$ 1,195	$ 1,584

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Deposit Liability [Line Items]
ICS deposits	$ 274.1	$ 65.5
Percent of total deposits	14.10%	3.40%
Time deposits exceeding FDIC insurance limit	$ 122.6	$ 84.6
Brokered time deposits	107.8	20.7
Collateralized deposits		$ 14.4
Asset Pledged as Collateral | Letter of Credit
Deposit Liability [Line Items]
Collateralized deposits	$ 72.7

DEPOSITS - Scheduled Maturities

DEPOSITS - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
2024	$ 232,059
2025	13,610
2026	4,077
2027	73
2028	11
Time deposits	$ 249,830	$ 129,779

BORROWING ARRANGEMENTS - Summar

BORROWING ARRANGEMENTS - Summary of Outstanding Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
FHLB advances	$ 85,000	$ 50,000
Subordinated notes	17,865	17,770
Total borrowings	$ 102,865	$ 67,770

BORROWING ARRANGEMENTS - Narrat

BORROWING ARRANGEMENTS - Narrative (Details) $ in Thousands		1 Months Ended	12 Months Ended
	May 28, 2020 USD ($)	May 31, 2020 USD ($)	Dec. 31, 2023 USD ($) lineOfCredit	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
FHLB secured line of credit			$ 499,200
FHLB secured line of credit, amount available			339,200
Loans			1,957,442	$ 1,897,773
FHLB advances			$ 85,000	$ 50,000
FHLB advances, interest rate			5.70%	4.65%
Federal Reserve secured line of credit			$ 141,600
Held-to-maturity debt securities pledged as collateral			53,616	$ 53,946
Discount window borrowings			0	0
Borrowings			102,865	67,770
Loss on early debt extinguishment			0	347
CalWest Statutory Trust I
Debt Instrument [Line Items]
Ownership interest acquired		3%
Fixed-to-Floating Rate Subordinated Notes Due 2030
Debt Instrument [Line Items]
Subordinated notes issued	$ 18,000
Subordinated notes interest rate	5.50%
Issuance costs	$ 475		$ 135	230
Fixed amortization term	5 years
Fixed-to-Floating Rate Subordinated Notes Due 2030 | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable interest rate	3.50%
Junior Subordinated Debt | Junior Subordinated Debentures
Debt Instrument [Line Items]
Borrowings		$ 408
Junior Subordinated Debt | CalWest Bancorp | Junior Subordinated Debentures
Debt Instrument [Line Items]
Junior subordinated deferrable interest debentures assumed through acquisition		$ 3,100
Overnight Unsecured Line of Credit | Line of Credit
Debt Instrument [Line Items]
Number of overnight unsecured credit lines | lineOfCredit			3
Overnight unsecured credit lines			$ 75,000
Overnight unsecured credit lines, outstanding borrowings			0	0
Asset Pledged as Collateral | Federal Home Loan Bank Advances
Debt Instrument [Line Items]
FHLB secured line of credit, amount available			75,000
Loans			893,800
Asset Pledged as Collateral | Federal Reserve Bank Advances
Debt Instrument [Line Items]
Loans			116,800
Held-to-maturity debt securities pledged as collateral			$ 53,600	$ 0

INCOME TAXES - Components of In

INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Current tax expense:
Federal	$ 6,791	$ 5,257
State	3,737	3,163
Total current tax expense	10,528	8,420
Deferred taxes:
Federal	108	(1,631)
State	310	(919)
Total deferred taxes	418	(2,550)
Income tax expense	$ 10,946	$ 5,870

INCOME TAXES - Effective Income

INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Amount
Statutory federal income tax provision	$ 7,740	$ 4,617
State taxes	3,399	1,819
Employee stock-based compensation	(696)	(163)
Tax exempt interest income	(314)	(283)
Excess Executive Compensation	895	0
Bank owned life insurance	(199)	(313)
Net benefit related to tax credit equity investment	(45)	0
Other	166	193
Income tax expense	$ 10,946	$ 5,870
Rate
Statutory federal income tax provision	21%	21%
State taxes	9.20%	8.30%
Employee stock-based compensation	(1.90%)	(0.80%)
Tax exempt interest income	(0.90%)	(1.30%)
Excess Executive Compensation	2.40%	0%
Bank owned life insurance	(0.50%)	(1.40%)
Net benefit related to tax credit equity investment	(0.10%)	0%
Other	0.50%	0.90%
Effective income tax rate	29.70%	26.70%

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating Loss Carryforwards [Line Items]
Income tax expense	$ 10,946	$ 5,870
Effective income tax rate	29.70%	26.70%
Combined federal statutory, state, and local income tax rates	29.60%	29.60%
Interest and penalties related to unrecognized tax benefits	$ 0	$ 0
Unrecognized tax benefits	0	$ 0
Operating loss carryforwards, annual limitations on use	381
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	4,600
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 5,400

INCOME TAXES - Components of De

INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Allowance for loan losses	$ 6,661	$ 5,036
Organizational expenses	78	85
Stock-based compensation	959	1,203
Fair value adjustment on acquired loans	257	298
Net operating loss carryforward	1,431	1,544
Accrued expenses	867	718
California franchise tax	858	674
Operating Lease liabilities	3,582	3,268
Unrealized loss on securities available for sale	1,871	2,633
Other	534	388
Total deferred tax assets	17,098	15,847
Deferred tax liabilities:
Deferred loan costs	(1,092)	(1,202)
Core deposit intangibles	(565)	(649)
Depreciation differences	(994)	(361)
Right of use asset	(2,747)	(2,544)
Other	(563)	(392)
Total deferred tax liabilities	(5,961)	(5,148)
Net deferred tax assets	$ 11,137	$ 10,699

EARNINGS PER SHARE (_EPS_) - Re

EARNINGS PER SHARE (“EPS”) - Reconciliation of Net Income and Shares Outstanding to Compute EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Net income	$ 25,910	$ 16,113
Weighted average common shares outstanding - basic (in shares)	18,246,164	17,821,545
Dilutive effect of outstanding:
Stock options and unvested stock grants (in shares)	410,578	406,742
Weighted average common shares outstanding - diluted (in shares)	18,656,742	18,228,287
Earnings per common share - basic (in dollars per share)	$ 1.42	$ 0.90
Earnings per common share - diluted (in dollars per share)	$ 1.39	$ 0.88

EARNINGS PER SHARE (_EPS_) - Na

EARNINGS PER SHARE (“EPS”) - Narrative (Details) - shares			12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023
Performance-Based Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)			275,171
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	71,508	160,809
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	6,460	24,842

RELATED PARTY TRANSACTIONS - Re

RELATED PARTY TRANSACTIONS - Related Party Loans Outstanding (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) loan
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Roll Forward]
Balance at beginning of year	$ 1,897,773
Balance at end of year	1,957,442	$ 1,897,773
Related Party
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Roll Forward]
Balance at beginning of year	8,073	10,259
New credit granted	0	0
Repayments	(2,145)	(2,186)
Balance at end of year	$ 5,928	$ 8,073
Number of loans repaid during the period | loan		1
Loan amount repaid during the period		$ 636

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended	12 Months Ended		21 Months Ended
	Apr. 30, 2022	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023
Related Party Transaction [Line Items]
Interests deposits		$ 26,465	$ 53,785	$ 26,465	$ 53,785
Future minimum lease payments			14,045		14,045
Director
Related Party Transaction [Line Items]
Interests deposits		4,700	16,400	4,700	16,400
Director | Launchpad
Related Party Transaction [Line Items]
Committed investment	$ 2,000
Capital contributions		$ 315	595		910
Related Party
Related Party Transaction [Line Items]
Lease expense			44	$ 43
Future minimum lease payments			$ 151		$ 151

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Outstanding Financial Commitments Representing Potential Credit Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments to extend credit	$ 405,854	$ 596,349
Letters of credit issued to customers	4,939	4,794
Commitments to contribute capital to other equity investments	3,170	6,041
Outstanding financial commitments	$ 413,963	$ 607,184

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Other Commitments [Line Items]
Deferred compensation agreement, benefit term	10 years
Deferred compensation agreement, expense	$ 322	$ 328
Minimum
Other Commitments [Line Items]
Deferred compensation agreement, annual benefit	20
Maximum
Other Commitments [Line Items]
Deferred compensation agreement, annual benefit	$ 75

STOCK-BASED COMPENSATION PLAN -

STOCK-BASED COMPENSATION PLAN - Narrative (Details) - USD ($) $ in Thousands		1 Months Ended		12 Months Ended
	Mar. 01, 2023	Jun. 30, 2021	Oct. 31, 2020	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Apr. 30, 2020
Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost				$ 47
Intrinsic value of stock options exercised				$ 117	$ 1,100
Granted (in shares)				0	0
Stock Options and Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation cost				$ 4,500	$ 3,700
Performance-Based Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation cost				$ 792	$ 843
Vested (in shares)	275,171			275,171
Unvested outstanding (in shares)				0
Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost				$ 5,500
Vested (in shares)				470,648	131,269
Unvested outstanding (in shares)				637,899	959,337	1,010,501
Weighted-average period for recognition of unrecognized compensation cost				2 years 1 month 6 days
Grant date fair value of vested units				$ 5,300	$ 1,500
Tax benefits				$ 710	$ 191
2019 Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Maximum shares approved for issuance (in shares)		3,400,000	2,500,000				2,200,000
Increase in maximum shares approved for issuance (in shares)		900,000	300,000
2019 Plan | Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option expiration period				10 years
Expiration period of vested options following termination of service affiliation				90 days
2019 Plan | Restricted Stock Units | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock vesting period				1 year
2019 Plan | Restricted Stock Units | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock vesting period				5 years

STOCK-BASED COMPENSATION PLAN_2

STOCK-BASED COMPENSATION PLAN - Summary of Changes in Outstanding Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Shares
Outstanding at beginning of year (in shares)	326,868	536,651
Exercised (in shares)	(16,000)	(136,100)
Forfeited (in shares)	(38,055)	(73,683)
Outstanding at end of year (in shares)	272,813	326,868
Options exercisable (in shares)	252,013	279,213
Weighted Average Exercise Price
Outstanding at beginning of year (in dollars per share)	$ 9.53	$ 9.36
Exercised (in dollars per share)	7.93	7.41
Forfeited (in dollars per share)	11.89	12.18
Outstanding at end of year (in dollars per share)	9.30	9.53
Options exercisable (in dollars per share)	$ 9.07	$ 9.13
Weighted Average Remaining Contractual Term
Outstanding at end of year (years)	3 years 2 months 12 days	4 years 3 months 18 days
Options exercisable (years)	3 years	3 years 10 months 24 days
Aggregate Intrinsic Value
Outstanding at end of year	$ 2,196	$ 2,385
Options exercisable	$ 2,085	$ 2,151

STOCK-BASED COMPENSATION PLAN_3

STOCK-BASED COMPENSATION PLAN - Summary of Changes in Outstanding Unvested Restricted Stock Units (Details) - $ / shares		12 Months Ended
	Mar. 01, 2023	Dec. 31, 2023	Dec. 31, 2022
Restricted Stock Units
Restricted Shares
Unvested at beginning of year (in shares)		959,337	1,010,501
Granted (in shares)		205,422	257,378
Vested (in shares)		(470,648)	(131,269)
Forfeited (in shares)		(56,212)	(177,273)
Unvested at end of year (in shares)		637,899	959,337
Weighted Average Grant Date Fair Value
Unvested at beginning of year (in dollars per share)		$ 11.55	$ 10.55
Granted (in dollars per share)		16.58	15.31
Vested (in dollars per share)		11.19	11.69
Forfeited (in dollars per share)		15.23	11.20
Unvested at end of year (in dollars per share)		$ 13.11	$ 11.55
Vested (in shares)		470,648	131,269
Performance-Based Restricted Stock Units
Restricted Shares
Vested (in shares)	(275,171)	(275,171)
Unvested at end of year (in shares)		0
Weighted Average Grant Date Fair Value
Vested (in dollars per share)		$ 9.29
Vested (in shares)	275,171	275,171

REGULATORY MATTERS - Narrative

REGULATORY MATTERS - Narrative (Details)	Dec. 31, 2023	Dec. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Total Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized, Ratio	0.080	0.080
Tier 1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized, Ratio	0.060	0.060
CET1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized, Ratio	0.045	0.045
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Adequately Capitalized, Ratio	0.040	0.040
Total Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.100	0.100
Tier 1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.080	0.080
CET1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.065	0.065
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.050	0.050

REGULATORY MATTERS - Summary of

REGULATORY MATTERS - Summary of Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 289,743	$ 260,788
Total Capital (to Risk-Weighted Assets), Actual Ratio	0.1351	0.1197
Total Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 171,575	$ 174,256
Total Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized, Ratio	0.080	0.080
Total Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions	$ 214,469	$ 217,820
Total Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.100	0.100
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	$ 270,341	$ 242,379
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio	0.1261	0.1113
Tier 1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 128,681	$ 130,692
Tier 1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized, Ratio	0.060	0.060
Tier 1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions	$ 171,575	$ 174,256
Tier 1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.080	0.080
CET1 Capital (to Risk-Weighted Assets), Actual Amount	$ 270,341	$ 242,379
CET1 Capital (to Risk-Weighted Assets), Actual Ratio	0.1261	0.1113
CET1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 96,511	$ 98,019
CET1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized, Ratio	0.045	0.045
CET1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions	$ 139,405	$ 141,583
CET1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.065	0.065
Tier 1 Capital (to Average Assets), Actual Amount	$ 270,341	$ 242,379
Tier 1 Capital (to Average Assets), Actual Ratio	0.1165	0.1062
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Adequately Capitalized	$ 92,818	$ 91,297
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Adequately Capitalized, Ratio	0.040	0.040
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions	$ 116,022	$ 114,122
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.050	0.050

FAIR VALUE - Summary of Fair Va

FAIR VALUE - Summary of Fair Value Hierarchy and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financial assets:
Debt securities available for sale	$ 130,035	$ 112,580
Debt securities held to maturity	50,432	47,906
Loans held for sale	7,800	9,600
Accrued interest receivable	6,400	5,700
Level 1 | Carrying Value
Financial assets:
Cash and due from banks	33,008	60,295
Fed funds and interest-bearing balances	53,785	26,465
Level 1 | Estimated Fair Value
Financial assets:
Cash and due from banks	33,008	60,295
Fed funds and interest-bearing balances	53,785	26,465
Level 1 and Level 2 | Carrying Value
Financial assets:
Debt securities available for sale	130,035	112,580
Level 1 and Level 2 | Estimated Fair Value
Financial assets:
Debt securities available for sale	130,035	112,580
Level 2 | Carrying Value
Financial assets:
Debt securities held to maturity	53,616	53,946
Loans held for sale	7,349	9,027
Restricted stock, at cost	16,055	14,543
Other equity securities	9,187	6,974
Accrued interest receivable	7,301	6,868
Financial liabilities:
Deposits	1,943,556	1,931,905
Borrowings	102,865	67,770
Accrued interest payable	477	215
Level 2 | Estimated Fair Value
Financial assets:
Debt securities held to maturity	50,432	47,906
Loans held for sale	7,834	9,616
Restricted stock, at cost	16,055	14,543
Other equity securities	9,187	6,974
Accrued interest receivable	7,301	6,868
Financial liabilities:
Deposits	1,943,007	1,929,947
Borrowings	102,447	67,387
Accrued interest payable	477	215
Level 3 | Carrying Value
Financial assets:
Loans held for investment, net	1,934,873	1,880,674
Level 3 | Estimated Fair Value
Financial assets:
Loans held for investment, net	$ 1,883,154	$ 1,836,782

FAIR VALUE - Schedule of Fair V

FAIR VALUE - Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 130,035	$ 112,580
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	74,434	23,295
SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	5,782	7,872
U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	2,417	5,952
U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,670	6,183
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	43,501	44,423
Taxable municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,421	4,228
Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	810	20,627
Recurring Fair Value Measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	130,035	112,580
Recurring Fair Value Measurements | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	74,434	23,295
Recurring Fair Value Measurements | SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	5,782	7,872
Recurring Fair Value Measurements | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	2,417	5,952
Recurring Fair Value Measurements | U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,670	6,183
Recurring Fair Value Measurements | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	43,501	44,423
Recurring Fair Value Measurements | Taxable municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,421	4,228
Recurring Fair Value Measurements | Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	810	20,627
Level 1 | Recurring Fair Value Measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	2,417	5,952
Level 1 | Recurring Fair Value Measurements | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 1 | Recurring Fair Value Measurements | SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 1 | Recurring Fair Value Measurements | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	2,417	5,952
Level 1 | Recurring Fair Value Measurements | U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 1 | Recurring Fair Value Measurements | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 1 | Recurring Fair Value Measurements | Taxable municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 1 | Recurring Fair Value Measurements | Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 2 | Recurring Fair Value Measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	127,618	106,628
Level 2 | Recurring Fair Value Measurements | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	74,434	23,295
Level 2 | Recurring Fair Value Measurements | SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	5,782	7,872
Level 2 | Recurring Fair Value Measurements | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 2 | Recurring Fair Value Measurements | U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,670	6,183
Level 2 | Recurring Fair Value Measurements | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	43,501	44,423
Level 2 | Recurring Fair Value Measurements | Taxable municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,421	4,228
Level 2 | Recurring Fair Value Measurements | Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	810	20,627
Level 3 | Recurring Fair Value Measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 3 | Recurring Fair Value Measurements | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 3 | Recurring Fair Value Measurements | SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 3 | Recurring Fair Value Measurements | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 3 | Recurring Fair Value Measurements | U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 3 | Recurring Fair Value Measurements | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 3 | Recurring Fair Value Measurements | Taxable municipal
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Level 3 | Recurring Fair Value Measurements | Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 0	$ 0

FAIR VALUE - Narrative (Details

FAIR VALUE - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 130,035	$ 112,580
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale		$ 0
Fair Value, Nonrecurring | Real estate - other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Partial charge-off on loan	$ 1,300

FAIR VALUE - Schedule of Fair_2

FAIR VALUE - Schedule of Fair Value of Assets and Liabilities Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring - Real estate - other - Multifamily residential $ in Thousands	Dec. 31, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans, fair value	$ 13,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans, fair value	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans, fair value	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans, fair value	$ 13,000

FAIR VALUE - Summary of Quantit

FAIR VALUE - Summary of Quantitative Information About Fair Value Measurements Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring - Real estate - other - Multifamily residential $ in Thousands	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans, fair value	$ 13,000
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans, fair value	$ 13,000
Minimum | Level 3 | Capitalization rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Range % (Weighted Average)	0.0384
Maximum | Level 3 | Capitalization rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Range % (Weighted Average)	0.0494
Weighted average | Level 3 | Capitalization rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Range % (Weighted Average)	0.0450

CONDENSED FINANCIAL INFORMATI_3

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash	$ 86,793	$ 86,760
Accrued interest and other assets	19,917	15,398
Total assets	2,360,252	2,283,927
LIABILITIES
Subordinated debt and other borrowings	102,865	67,770
Accrued interest and other liabilities	13,562	12,842
Total liabilities	2,072,100	2,023,572
SHAREHOLDERS’ EQUITY
Common stock	222,036	218,280
Retained earnings	70,575	48,516
Accumulated other comprehensive loss, net of taxes	(4,459)	(6,441)
Total shareholders’ equity	288,152	260,355	$ 246,528
Total liabilities and shareholders’ equity	2,360,252	2,283,927
Parent Company
ASSETS
Cash	3,586	3,177
Investment in bank Subsidiary	301,455	274,714
Other investments	910	315
Accrued interest and other assets	110	214
Total assets	306,061	278,420
LIABILITIES
Subordinated debt and other borrowings	17,865	17,770
Accrued interest and other liabilities	44	295
Total liabilities	17,909	18,065
SHAREHOLDERS’ EQUITY
Common stock	222,036	218,280
Retained earnings	70,575	48,516
Accumulated other comprehensive loss, net of taxes	(4,459)	(6,441)
Total shareholders’ equity	288,152	260,355
Total liabilities and shareholders’ equity	$ 306,061	$ 278,420

CONDENSED FINANCIAL INFORMATI_4

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
INCOME
Other interest and dividends	$ 1,062	$ 928
Total interest and dividend income	123,522	93,575
EXPENSES
Interest on borrowings	2,519	1,199
Merger and related expenses	0	1,177
Other noninterest expense	3,775	3,401
Income before income taxes	36,856	21,983
Income tax benefit	(10,946)	(5,870)
Net income	25,910	16,113
Parent Company
INCOME
Other interest and dividends	0	2
Dividends from bank subsidiary	2,000	3,000
Total interest and dividend income	2,000	3,002
EXPENSES
Interest on borrowings	1,085	1,155
Merger and related expenses	0	1
Other noninterest expense	487	655
Total expenses	1,572	1,811
Income before income taxes	428	1,191
Income tax benefit	501	519
Income before equity in undistributed earnings of bank subsidiary	929	1,710
Equity in undistributed earnings of bank subsidiary	24,981	14,403
Net income	$ 25,910	$ 16,113

CONDENSED FINANCIAL INFORMATI_5

CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
OPERATING ACTIVITIES
Net income	$ 25,910	$ 16,113
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on early debt extinguishment	0	347
Other items	(844)	(1,182)
Net cash provided by operating activities	33,102	13,352
INVESTING ACTIVITIES
Net cash used in investing activities	(78,927)	(512,696)
FINANCING ACTIVITIES
Repayment of other borrowings	0	(3,093)
Proceeds from exercise of stock options	127	1,009
Net cash provided by financing activities	45,858	6,098
Net change in cash and cash equivalents	33	(493,246)
Cash and cash equivalents at beginning of year	86,760	580,006
Cash and cash equivalents at end of year	86,793	86,760
Parent Company
OPERATING ACTIVITIES
Net income	25,910	16,113
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of debt issuance costs	95	95
Amortization of junior subordinated debentures fair value adjustment	0	12
Loss on early debt extinguishment	0	347
Equity in undistributed earnings of bank subsidiary	(24,981)	(14,403)
Other items	(147)	481
Net cash provided by operating activities	877	2,645
INVESTING ACTIVITIES
Proceeds from junior subordinated debentures investment	0	93
Net purchase of other equity investments	(595)	(315)
Net cash used in investing activities	(595)	(222)
FINANCING ACTIVITIES
Repayment of other borrowings	0	(3,093)
Proceeds from exercise of stock options	127	1,009
Net cash provided by financing activities	127	(2,084)
Net change in cash and cash equivalents	409	339
Cash and cash equivalents at beginning of year	3,177	2,838
Cash and cash equivalents at end of year	$ 3,586	$ 3,177

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	Jan. 30, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Total loans		$ 1,934,873	$ 1,880,674
Total assets		2,360,252	2,283,927
Total deposits		1,943,556	1,931,905
Total equity		288,152	$ 260,355	$ 246,528
California BanCorp
Subsequent Event [Line Items]
Total loans		1,560,000
Total assets		1,990,000
Total deposits		1,630,000
Total equity		$ 196,000
Subsequent Event
Subsequent Event [Line Items]
Merger agreement, all-stock, value	$ 233,600
Merger agreement, common stock exchange ratio	159%
Subsequent Event | Southern California Bancorp Shareholders
Subsequent Event [Line Items]
Ownership interest in combined entity	57.10%
Subsequent Event | California BanCorp Shareholders
Subsequent Event [Line Items]
Ownership interest in combined entity	42.90%