Southern California Bancorp (BCAL) 10-Q 9 Aug 23 2023 Q2 Quarterly report Financial data

COVER

COVER - shares	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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 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
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,302,373
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001795815
Current Fiscal Year End Date	--12-31
Entity Registrant Name	Southern California Bancorp \ CA

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 34,632	$ 60,295
Federal funds and interest-bearing balances	69,995	26,465
Total cash and cash equivalents	104,627	86,760
Debt securities available-for-sale, at fair value	119,875	112,580
Debt securities held-to-maturity, at amortized cost (fair value of $48,563 and $47,906 at June 30, 2023 and December 31, 2022)	53,782	53,946
Loans held for sale, at lower of cost or fair value	1,062	9,027
Loans held for investment	1,913,353	1,897,773
Allowance for credit losses	(22,502)	(17,099)
Loans held for investment, net	1,890,851	1,880,674
Restricted stock, at cost	15,997	14,543
Premises and equipment, net	13,919	14,334
Right-of-use asset	7,853	8,607
Goodwill	37,803	37,803
Core deposit intangible, net	1,403	1,584
Bank owned life insurance	38,428	37,972
Deferred taxes, net	11,666	10,699
Accrued interest receivable and other assets	11,917	15,398
Total assets	2,309,183	2,283,927
LIABILITIES
Noninterest-bearing demand	776,895	923,899
Interest-bearing NOW accounts	354,088	209,625
Money market and savings accounts	660,654	668,602
Time deposits	189,271	129,779
Total deposits	1,980,908	1,931,905
Borrowings	32,818	67,770
Operating lease liability	10,394	11,055
Accrued interest payable and other liabilities	11,314	12,842
Total liabilities	2,035,434	2,023,572
Commitments and contingencies (Note 11)
SHAREHOLDERS’ EQUITY
Preferred stock - 50,000,000 shares authorized, no par value; no shares issued and outstanding at June 30, 2023 and December 31, 2022	0	0
#REF!	220,702	218,280
Retained earnings	59,607	48,516
Accumulated other comprehensive loss - net of taxes	(6,560)	(6,441)
Total shareholders’ equity	273,749	260,355
Total liabilities and shareholders’ equity	$ 2,309,183	$ 2,283,927

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Debt securities held to maturity	$ 48,563	$ 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)	18,296,365	17,940,283
Common stock outstanding (in shares)	18,296,365	17,940,283

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 27,987	$ 19,947	$ 55,006	$ 37,678
Interest on debt securities	833	476	1,564	730
Interest on tax-exempted debt securities	456	325	943	401
Interest on deposits at other financial institutions	765	583	1,509	787
Interest and dividends on other interest-earning assets	219	253	447	473
Total interest and dividend income	30,260	21,584	59,469	40,069
INTEREST EXPENSE
Interest on NOW, money market and savings accounts	4,730	264	7,633	546
Interest on time deposits	1,531	81	2,506	179
Interest on borrowings	573	303	1,012	613
Total interest expense	6,834	648	11,151	1,338
Net interest income	23,426	20,936	48,318	38,731
(Reversal of) provision for credit losses	(15)	1,796	187	3,646
Net interest income after provision for credit losses	23,441	19,140	48,131	35,085
NONINTEREST INCOME
Gain on sale of loans	77	767	885	816
Income from bank owned life insurance	232	215	455	1,047
Servicing and related income on loans, net	87	25	162	94
Gain on sale of available-for-sale debt securities	34	0	34	0
Other charges and fees	136	134	161	300
Total noninterest income	1,096	1,526	2,666	3,129
NONINTEREST EXPENSE
Salaries and employee benefits	9,674	9,361	19,915	19,557
Occupancy and equipment	1,527	1,732	2,974	3,142
Data processing and communications	1,176	1,092	2,232	2,512
Legal, audit and professional	667	608	1,452	1,225
Regulatory assessments	367	421	819	760
Director and shareholder expenses	214	221	427	416
Merger and related expenses	0	544	0	1,068
Core deposit intangible amortization	90	99	181	198
Litigation settlements, net	0	6,500	0	6,500
Other expenses	892	1,130	1,626	1,882
Total noninterest expense	14,607	21,708	29,626	37,260
Income (loss) before income taxes	9,930	(1,042)	21,171	954
Income tax expense (benefit)	3,212	(306)	6,229	244
Net income (loss)	$ 6,718	$ (736)	$ 14,942	$ 710
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.37	$ (0.04)	$ 0.82	$ 0.04
Diluted (in dollars per share)	$ 0.36	$ (0.04)	$ 0.80	$ 0.04
Service charges and fees on deposit accounts
NONINTEREST INCOME
Revenue	$ 333	$ 175	$ 595	$ 464
Interchange and ATM income
NONINTEREST INCOME
Revenue	$ 197	$ 210	$ 374	$ 408

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 6,718	$ (736)	$ 14,942	$ 710
Unrealized loss on securities available for sale:
Change in net unrealized loss	(2,168)	(3,062)	(208)	(6,276)
Reclassification of loss recognized in net income	(34)	0	(34)	0
Unrealized gain (loss) on securities available for sale	(2,202)	(3,062)	(242)	(6,276)
Income tax benefit:
Change in net unrealized loss	(641)	(888)	(113)	(1,821)
Reclassification of loss recognized in net income	(10)	0	(10)	0
Income tax expense (benefit)	(651)	(888)	(123)	(1,821)
Total other comprehensive loss, net of tax	(1,551)	(2,174)	(119)	(4,455)
Total comprehensive income (loss), net of tax	$ 5,167	$ (2,910)	$ 14,823	$ (3,745)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Adoption of ASU 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 2016-13	[1]	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive 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	1,783				$ 1,783
Stock options exercised (in shares)					110,600
Stock options exercised	807				$ 807
Restricted stock units vested (in shares)					25,035
Repurchase of shares in settlement of restricted stock units (in shares)					(2,746)
Repurchase of shares in settlement of restricted stock units	(42)				$ (42)
Net income (loss)	710						710
Other comprehensive loss	(4,455)										(4,455)
Ending balance (in shares) at Jun. 30, 2022					17,840,626
Ending balance at Jun. 30, 2022	245,331				$ 216,711		33,113				(4,493)
Beginning balance (in shares) at Dec. 31, 2021					17,707,737
Beginning balance at Dec. 31, 2021	$ 246,528				$ 214,163		32,403				(38)
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]
Beginning balance (in shares) at Mar. 31, 2022					17,753,849
Beginning balance at Mar. 31, 2022	$ 246,761				$ 215,231		33,849				(2,319)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,010				$ 1,010
Stock options exercised (in shares)					69,600
Stock options exercised	504				$ 504
Restricted stock units vested (in shares)					19,410
Repurchase of shares in settlement of restricted stock units (in shares)					(2,233)
Repurchase of shares in settlement of restricted stock units	(34)				$ (34)
Net income (loss)	(736)						(736)
Other comprehensive loss	(2,174)										(2,174)
Ending balance (in shares) at Jun. 30, 2022					17,840,626
Ending balance at Jun. 30, 2022	$ 245,331				$ 216,711		33,113				(4,493)
Beginning balance (in shares) at Dec. 31, 2022	17,940,283				17,940,283	17,940,283
Beginning 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]
Stock-based compensation	2,771				$ 2,771
Stock options exercised (in shares)					10,950
Stock options exercised	93				$ 93
Restricted stock units vested (in shares)					373,172
Repurchase of shares in settlement of restricted stock units (in shares)					(28,040)
Repurchase of shares in settlement of restricted stock units	(442)				$ (442)
Net income (loss)	14,942						14,942
Other comprehensive loss	$ (119)										(119)
Ending balance (in shares) at Jun. 30, 2023	18,296,365				18,296,365
Ending balance at Jun. 30, 2023	$ 273,749				$ 220,702		59,607				(6,560)
Beginning balance (in shares) at Mar. 31, 2023					18,271,194
Beginning balance at Mar. 31, 2023	267,539				$ 219,659		52,889				(5,009)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,085				$ 1,085
Stock options exercised (in shares)					4,000
Stock options exercised	26				$ 26
Restricted stock units vested (in shares)					26,075
Repurchase of shares in settlement of restricted stock units (in shares)					(4,904)
Repurchase of shares in settlement of restricted stock units	(68)				$ (68)
Net income (loss)	6,718						6,718
Other comprehensive loss	$ (1,551)										(1,551)
Ending balance (in shares) at Jun. 30, 2023	18,296,365				18,296,365
Ending balance at Jun. 30, 2023	$ 273,749				$ 220,702		$ 59,607				$ (6,560)
[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	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
OPERATING ACTIVITIES
Net income	$ 14,942	$ 710
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation on premises and equipment	801	739
Core deposit intangible amortization	181	198
Amortization of premiums of debt securities	235	406
Gain on sale of loans	(885)	(816)
Loss on early debt extinguishment	0	347
Loans originated for sale	(2,954)	(12,581)
Proceeds from sales of and principal collected on loans held for sale	11,887	12,036
Provision for credit losses	187	3,646
Deferred income tax expense (benefit)	770	(3,491)
Impairment charges of right-of-use assets	0	136
Stock-based compensation	2,771	1,783
Increase in cash surrender value of bank owned life insurance	(455)	(426)
Income from bank owned life insurance	0	(621)
Gain on sale of available-for-sale debt securities	(34)	0
Accretion of net discounts and deferred loan fees	(922)	(2,642)
Net decrease in other items	3,899	5,179
Net cash provided by operating activities	30,423	4,603
INVESTING ACTIVITIES
Proceeds from bank owned life insurance death benefits	0	1,366
Proceeds from sale of debt securities available for sale	17,307	0
Proceeds from maturities and paydowns of debt securities available for sale	4,029	6,941
Proceeds from maturities and paydowns of debt securities held to maturity	0	74
Purchases of debt securities available for sale	(28,736)	(83,728)
Purchases of debt securities held to maturity	0	(54,267)
Net purchase of stock investments	(3,530)	(3,433)
Net funding of loans	(15,028)	(264,592)
Proceeds from sale of loans held for investment	50	450
Purchases of premises and equipment	(283)	(791)
Net cash used in investing activities	(26,191)	(397,980)
FINANCING ACTIVITIES
Net increase in deposits	48,984	57,107
Proceeds of Federal Home Loan Bank advances	15,000	0
Repayment of Federal Home Loan Bank advances	(50,000)	0
Repayment of other borrowings	0	(3,093)
Proceeds from exercise of stock options	93	807
Repurchase of common shares	(442)	(42)
Net cash provided by financing activities	13,635	54,779
Net change in cash and cash equivalents	17,867	(338,598)
Cash and cash equivalents at beginning of period	86,760	580,006
Cash and cash equivalents at end of period	104,627	241,408
Supplemental Disclosures of Cash Flow Information:
Interest paid	11,020	999
Taxes paid	0	4,241
Lease liability arising from obtaining right-of-use assets	405	$ 1,624
Net impact of adoption of ASU 2016-13 on retained earnings	$ 3,851

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 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, Riverside, San Diego and Ventura counties. 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 unaudited interim consolidated financial statements have been prepared pursuant to Article 10 of SEC Regulation S-X and other SEC rules and regulations for reporting on the Quarterly Report on Form 10-Q. Accordingly, certain disclosures required by U.S. generally accepted accounting principles (“GAAP”) are not included herein. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in Item 13. Financial Statements and Supplementary Data of the Company’s Registration Statement on Form 10 under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) filed with the SEC and declared effective on May 10, 2023 (our “Registration Statement”). In the opinion of management of the Company, the accompanying unaudited interim consolidated financial statements reflect all of the adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial condition and consolidated results of operations as of the dates and for the periods presented. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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 GAAP 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. 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 when 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 allowance for credit losses (“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 June 30, 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. The Company is currently evaluating the impact of ASU 2020-04 to the consolidated financial statements. 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. Significant Accounting Policies The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the banking industry. We have not made any changes in our significant accounting policies from those disclosed in Item 13. Financial Statements and Supplementary Data of the Company’s Registration Statement. Updates to our significant accounting policies described below reflect the impact of the adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) and the related amendments, and ASU 2022-02, Financial Instruments—Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures. Allowance for Credit Losses — 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 current expected credit losses 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 no 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 (reversal of) provision for credit losses in the consolidated statements of operations. Losses are charged against the ACL when management believes the uncollectibility of a held-to-maturity debt security is confirmed. Allowance for Credit Losses — Available-for-Sale Debt Securities For available-for-sale debt securities, the Company evaluates, 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 (reversal of) provision for credit losses in the consolidated statements of operations. 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. Allowance for Credit Losses — Loans An ACL 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 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 the following section). 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 (reversal of) provision for credit losses in the consolidated statements of operations. 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 using a discounted cash flow methodology, which utilizes pool-level assumptions and cash flow projections on individual loan basis, which 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 consumers, 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 would 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 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. Assumptions for prepayment/curtailment rates are based on benchmark rates provided by the Company’s third-party loss model provider. 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. Allowance for Credit Losses — Off-Balance Sheet Credit Exposures The Company also maintains a separate allowance for off-balance sheet commitments. 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 operations 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, 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, 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, and payment delays, 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 classifed as TDRs under previous GAAP. 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

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 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 approximate fair values at June 30, 2023 and December 31, 2022 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair June 30, 2023 Taxable municipals $ 551 $ — $ (83) $ 468 Tax exempt bank-qualified municipals 53,231 — (5,136) 48,095 $ 53,782 $ — $ (5,219) $ 48,563 December 31, 2022 Taxable municipals $ 550 $ — $ (105) $ 445 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 approximate fair values at June 30, 2023 and December 31, 2022 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair June 30, 2023 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 51,397 $ — $ (3,979) $ 47,418 SBA securities 6,796 7 (131) 6,672 (dollars in thousands) Amortized Cost Gross Gross Estimated Fair U.S. Treasury 6,612 — (676) 5,936 U.S. Agency 7,023 — (796) 6,227 Collateralized mortgage obligations 46,319 15 (3,481) 42,853 Taxable municipals 4,405 36 (171) 4,270 Tax exempt bank-qualified municipals 6,637 4 (142) 6,499 $ 129,189 $ 62 $ (9,376) $ 119,875 December 31, 2022 U.S. government and agency 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 three and six months ended June 30, 2023 and 2022, there were no transfers between held-to-maturity and available-for-sale debt securities. At June 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of our shareholders’ equity. Accrued interest receivable on held-to-maturity and available-for-sale debt securities totaled $856 thousand and $1.1 million at June 30, 2023 and December 31, 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 June 30, 2023, held-to-maturity debt securities with an amortized cost of $53.8 million were pledged to the Federal Reserve Bank as collateral for a $45.9 million line of credit. There were no debt securities pledged at December 31, 2022. Contractual Maturities The amortized cost and estimated fair value of all held-to-maturity and available-for-sale debt securities as of June 30, 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 June 30, 2023 Due in one year or less $ — $ — $ 1,640 $ 1,638 Due after one year through five years — — 17,855 16,763 Due after five years through ten years 11,707 10,910 23,734 20,744 Due after ten years 42,075 37,653 85,960 80,730 $ 53,782 $ 48,563 $ 129,189 $ 119,875 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 three and six months ended June 30, 2023 and 2022 follows: Three Months Ended Six Months Ended (dollars in thousands) June 30, June 30, June 30, June 30, Gross gains on sales and calls $ 181 $ — $ 181 $ — Gross losses on sales and calls (147) — (147) — Gain on sale of available-for-sale debt securities 34 — 34 — Proceeds from sales and calls $ 17,307 $ — $ 17,312 $ — 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 June 30, 2023 and December 31, 2022 are summarized as follows: Less than 12 Months 12 Months or Longer Total (dollars in thousands) Unrealized Estimated Unrealized Estimated Unrealized Estimated June 30, 2023: Available-for-sale debt securities: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (284) $ 24,979 $ (3,695) $ 22,439 $ (3,979) $ 47,418 SBA securities (6) 2,244 (125) 2,103 (131) 4,347 U.S. Treasury — — (676) 5,936 (676) 5,936 U.S. Agency — — (796) 6,227 (796) 6,227 Collateralized mortgage obligations (440) 18,514 (3,041) 23,299 (3,481) 41,813 Taxable municipals — — (171) 3,733 (171) 3,733 Tax exempt bank-qualified municipals (70) 3,958 (72) 2,287 (142) 6,245 $ (800) $ 49,695 $ (8,576) $ 66,024 $ (9,376) $ 115,719 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 U.S. 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 June 30, 2023, the Company had a total of 92 available-for-sale debt securities in a gross unrealized loss position, consisting of 71 securities with total net unrealized losses of $8.6 million that had been in a continual loss position for twelve months and longer. As of December 31, 2022, the Company had a total of 88 available-for-sale debt securities in a gross unrealized loss position, consisting of 43 securities with total net unrealized losses of $5.1 million that had been in a continual loss position for twelve months and longer. 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 June 30, 2023, the Company had a net unrealized loss on available-for-sale debt securities of $9.3 million, or $6.6 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 At June 30, 2023, 97 available-for-sale debt securities with fair values totaling $119.9 million had net unrealized losses totaling $9.3 million, or $6.6 million net of tax in accumulated other comprehensive loss. 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. Our available-for-sale debt securities consisted of U.S. Treasury, U.S. government and agency and government sponsored enterprise securities, and municipals historically have had no credit loss experience. In addition, the Company reviewed the credit rating of the municipal securities. At June 30, 2023, the total fair value of taxable municipal and tax exempt bank-qualified municipal securities was $4.3 million and $6.5 million, respectively. These available-for-sale debt securities rated AA and above totaled $7.5 million and rated A and above totaled $3.3 million. At June 30, 2023, 61 held-to-maturity debt securities with fair values totaling $48.6 million had unrealized losses totaling $5.2 million. 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. At June 30, 2023, fair values of held-to-maturity debt securities rated AA and above totaled $45.3 million and rated AA- totaled $3.2 million. Management determined that the unrealized losses for June 30, 2023 and 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 credit 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 three and six months ended June 30, 2023. At December 31, 2022, management evaluated held-to-maturity and available-for-sale debt securities for other-than-temporary impairment, 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 June 30, 2023 and December 31, 2022: (dollars in thousands) June 30, December 31, Federal Reserve Bank $ 7,372 $ 7,318 Federal Home Loan Bank 8,625 7,225 $ 15,997 $ 14,543 During the three and six months ended June 30, 2023, the Company purchased $40 thousand and $54 thousand of Federal Reserve Bank stock, respectively, and there were $1.4 million purchases 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 June 30, 2023 and December 31, 2022. These equity securities are reported in accrued interest receivable and other assets in the consolidated balance sheets. At June 30, 2023 and December 31, 2022, the Company evaluated the carrying value of these equity securities and determined that they were not impaired. During the three and six months ended June 30, 2023 and 2022, there were no losses related to changes in the fair value of these equity securities. 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 June 30, 2023 and December 31, 2022, the balance of these investments, which is included in accrued interest receivable and other assets in the consolidated balance sheets, was $6.7 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 considered return of capital are recorded as a reduction of the Company’s investment. During the three and six months ended June 30, 2023, there were $1.5 million and $2.1 million net capital contributions made to these equity investments. During the three and six months ended June 30, 2022, there were $434 thousand and $1.4 million net capital contributions made to these equity investments. At June 30, 2023 and December 31, 2022, the Company evaluated the carrying value of these equity investments and determined they were not impaired. During the three and six months ended June 30, 2023 and 2022, there were no losses 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. The unfunded portion of these investments is included in other liabilities in the consolidated balance sheets. The aggregate funding commitment for this investment was $2.0 million at June 30, 2023 and December 31, 2022. During the three and six months ended June 30, 2023, there was no contribution made. At June 30, 2023 and December 31, 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	6 Months Ended
	Jun. 30, 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 June 30, 2023 and December 31, 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 June 30, 2023 and December 31, 2022 was as follows: (dollars in thousands) June 30, December 31, Construction and land development $ 275,250 $ 239,067 Real estate - other: 1-4 family residential 150,150 144,322 Multifamily residential 210,025 218,606 Commercial real estate and other 961,307 958,676 Commercial and industrial (1) 312,845 331,644 Consumer 3,776 5,458 Loans held for investment (2) 1,913,353 1,897,773 Allowance for credit losses (22,502) (17,099) Loans held for investment, net $ 1,890,851 $ 1,880,674 Loans held for sale, at lower of cost or fair value $ 1,062 $ 9,027 (1) Includes Paycheck Protection Program (“PPP”) loans at net amortized amount of $3.0 million and $3.5 million at June 30, 2023 and December 31, 2022, respectively. (2) Loans held for investment includes net unearned fees of $2.6 million and $3.3 million and net unearned discount of $1.6 million and $1.8 million at June 30, 2023 and December 31, 2022, respectively. The Company has pledged $1.31 billion of loans with FHLB under a blanket lien, of which an unpaid principal balance of $833.7 million was considered as eligible collateral under this secured borrowing arrangement and loans with an unpaid principal balance of $131.6 million were pledged as collateral under a secured borrowing arrangement with the Federal Reserve as of June 30, 2023. See Note 7 – Borrowing Arrangements for additional information regarding the FHLB and Federal Reserve secured lines of credit. 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 June 30, 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 June 30, 2023 Construction and land development Pass $ 5,360 $ 121,263 $ 130,351 $ 14,794 $ 1,940 $ 586 $ 859 $ — $ 275,153 Special mention — — — — — — — — — Substandard — — — — — 97 — — 97 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development 5,360 121,263 130,351 14,794 1,940 683 859 — 275,250 Real estate - other: 1-4 family residential Pass 26,666 37,547 21,907 7,913 5,119 16,653 33,346 — 149,151 Special mention — — — — — — 999 — 999 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1-4 family residential 26,666 37,547 21,907 7,913 5,119 16,653 34,345 — 150,150 Multifamily residential Pass 10,494 70,602 72,765 5,982 27,624 21,723 835 — 210,025 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily residential 10,494 70,602 72,765 5,982 27,624 21,723 835 — 210,025 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 31,223 310,818 245,375 60,300 53,436 217,617 36,179 1,642 956,590 Special mention — 2,721 — — — — — — 2,721 Substandard — — — — — 1,996 — — 1,996 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate and other 31,223 313,539 245,375 60,300 53,436 219,613 36,179 1,642 961,307 Commercial and industrial Pass 47,155 81,834 14,275 6,702 9,284 15,743 127,439 1,003 303,435 Special mention — — 1,648 1,554 161 333 3,145 — 6,841 Substandard — — 77 — 1,310 682 — 500 2,569 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and industrial 47,155 81,834 16,000 8,256 10,755 16,758 130,584 1,503 312,845 Consumer Pass 915 — 48 107 10 651 2,045 — 3,776 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 915 — 48 107 10 651 2,045 — 3,776 Total loans $ 121,813 $ 624,785 $ 486,446 $ 97,352 $ 98,884 $ 276,081 $ 204,847 $ 3,145 $ 1,913,353 Total loans Pass $ 121,813 $ 622,064 $ 484,721 $ 95,798 $ 97,413 $ 272,973 $ 200,703 $ 2,645 $ 1,898,130 Special mention — 2,721 1,648 1,554 161 333 4,144 — 10,561 Substandard — — 77 — 1,310 2,775 — 500 4,662 Doubtful — — — — — — — — — Loss — — — — — — — — — Total loans $ 121,813 $ 624,785 $ 486,446 $ 97,352 $ 98,884 $ 276,081 $ 204,847 $ 3,145 $ 1,913,353 A summary of gross charge-offs by class of loans and origination year for the six months ended June 30, 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 — — — — — — — — — Commercial real estate and other — — — — — — — — — Commercial and industrial — — — (15) — (9) — — (24) Consumer — — — — — — — — — Total loans $ — $ — $ — $ (15) $ — $ (21) $ — $ — $ (36) 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 June 30, 2023 and December 31, 2022 follows: (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Total June 30, 2023 Construction and land development $ — $ — $ — $ — $ 275,250 $ 275,250 Real estate - other: 1-4 family residential — — — — 150,150 150,150 Multifamily residential — — — — 210,025 210,025 Commercial real estate and other — — — — 961,307 961,307 Commercial and industrial — — — — 312,845 312,845 Consumer — — — — 3,776 3,776 $ — $ — $ — $ — $ 1,913,353 $ 1,913,353 (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Total December 31, 2022 Construction and land development $ — $ — $ — $ — $ 239,067 $ 239,067 Real estate - other: 1-4 family residential — — — — 144,322 144,322 Multifamily residential — — — — 218,606 218,606 Commercial real estate and other — — — — 958,676 958,676 Commercial and industrial — — — — 331,644 331,644 Consumer — — — — 5,458 5,458 $ — $ — $ — $ — $ 1,897,773 $ 1,897,773 There were no loans over 90 days past due loans and still accruing interest as of June 30, 2023 and December 31, 2022. Nonaccrual Loans A summary of total nonaccrual loans and the amount of nonaccrual loans with no related ACL as of June 30, 2023 and December 31, 2022 follows: June 30, 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 — — — — Commercial real estate and other 1 — 2 — Commercial and industrial 39 — — — Consumer — — — — $ 40 $ — $ 41 $ — 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. There were no collateral dependent loans as of June 30, 2023 and 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 current expected credit losses 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, (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. At June 30, 2023, the Company utilized probability-weighted three-scenario forecasts, representing a base-case scenario and two downside scenarios, to estimate the ACL, and the economic forecasts were released by Moody’s Analytics during the last week of June 2023 which suggested a slight shift from the March 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. These forecasts remained consistent in their long-held view that the inflationary outlook is the key to their baseline forecast. The most recent inflationary data, including the Federal Reserve’s preferred measure of inflation, is encouraging, but remained stubbornly high and may remain entrenched longer. This resulted in a modest change in Moody’s expectation that the Federal Reserve will postpone its first rate drop to the first quarter of 2024 from the last quarter of 2023. However, the baseline forecast still suggested that a soft landing would be the most likely outcome for the U.S. economy as a consequence of the resilience of consumers and labor markets. Management believes the Federal Reserve will continue to assess the impact of the bank failures, a sharp spike in near-term California unemployment rates ranging from 4.52% to 7.09%, and tightened credit conditions given the recent turmoil and liquidity concerns in the banking industry. The Company adjusted the qualitative reserve to consider the potential losses resulting from future recessionary pressures and the impact of the banking turmoil that were not captured in the quantitative model. Accrued interest receivable on loans receivable, net, totaled $5.7 million and $5.7 million at June 30, 2023 and December 31, 2022, respectively, and is included within accrued interest receivable and other assets in the accompanying consolidated balance sheets. Accrued interest receivable is excluded from the ACL. The allowance 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 $135 thousand and $211 thousand for the three and six months ended June 30, 2023, respectively. There was a $146 thousand provision for unfunded loan commitments for the three and six months ended June 30, 2022. The provision for unfunded loan commitments is included in (reversal of) provision for credit losses in the consolidated statements of operations. The reserve for unfunded loan commitments was $1.5 million and $1.3 million at June 30, 2023 and December 31, 2022, respectively. The reserve for unfunded loan commitments is included in accrued interest payable and other liabilities in the consolidated balance sheets. A summary of the changes in the ACL for the periods indicated follows: Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Allowance for loan losses (ALL) Balance, beginning of period $ 22,391 $ 13,534 $ 17,099 $ 11,657 Adoption of ASU No. 2016-13 (1) — — 5,027 — Provision for loan losses 120 1,650 398 3,500 Charge-offs (9) (21) (36) (21) Recoveries — (27) 14 — Net charge-offs (9) (48) (22) (21) Balance, end of period $ 22,502 $ 15,136 $ 22,502 $ 15,136 Reserve for unfunded loan commitments Balance, beginning of period $ 1,673 $ 804 $ 1,310 $ 804 Adoption of ASU No. 2016-13 (1) — — 439 — (Reversal of) provision for unfunded commitment losses (135) 146 (211) 146 Balance, end of period 1,538 950 1,538 950 Allowance for credit losses (ACL), end of period $ 24,040 $ 16,086 $ 24,040 $ 16,086 (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 ACL by loan portfolio segment for the periods indicated follows: (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Three Months Ended June 30, 2023 Beginning of period $ 3,397 $ 14,699 $ 4,241 $ 54 $ 22,391 Adoption of ASU No. 2016-13 (1) — — — — — Provision (reversal of) for loan losses 159 398 (424) (13) 120 Charge-offs — — (9) — (9) Recoveries — — — — — Net charge-offs — — (9) — (9) End of period $ 3,556 $ 15,097 $ 3,808 $ 41 $ 22,502 (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Specific reserves $ — $ — $ 12 $ — $ 12 General reserves 3,556 15,097 3,796 41 22,490 $ 3,556 $ 15,097 $ 3,808 $ 41 $ 22,502 Loans evaluated for impairment: Individually $ — $ 1 $ 39 $ — $ 40 Collectively 275,250 1,321,481 312,806 3,776 1,913,313 $ 275,250 $ 1,321,482 $ 312,845 $ 3,776 $ 1,913,353 Three Months Ended June 30, 2022 Beginning of period $ 892 $ 10,012 $ 2,628 $ 2 $ 13,534 Provision for loan losses 367 974 281 28 1,650 Charge-offs — — (21) — (21) Recoveries — (1) (25) (1) (27) Net charge-offs — (1) (46) (1) (48) End of period $ 1,259 $ 10,985 $ 2,863 $ 29 $ 15,136 Specific reserves $ — $ 14 $ — $ — $ 14 General reserves 1,259 10,971 2,863 29 15,122 $ 1,259 $ 10,985 $ 2,863 $ 29 $ 15,136 Loans evaluated for impairment: Individually $ — $ 1,669 $ 101 $ — $ 1,770 Collectively 109,843 1,196,910 316,870 1,611 1,625,234 $ 109,843 $ 1,198,579 $ 316,971 $ 1,611 $ 1,627,004 (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Six Months Ended June 30, 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 Provision (reversal of) for loan losses 374 435 (393) (18) 398 Charge-offs — (12) (24) — (36) Recoveries — — 14 — 14 Net charge-offs — (12) (10) — (22) End of period $ 3,556 $ 15,097 $ 3,808 $ 41 $ 22,502 Six Months Ended June 30, 2022 Beginning of period $ 666 $ 8,441 $ 2,548 $ 2 $ 11,657 Provision for loan losses 593 2,544 336 27 3,500 Charge-offs — — (21) — (21) Recoveries — — — — — Net charge-offs — — (21) — (21) End of period $ 1,259 $ 10,985 $ 2,863 $ 29 $ 15,136 (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 ACL is based on a CECL methodology, rather than the previously applied incurred loss methodology.

TRANSFERS AND SERVICING OF FINA

TRANSFERS AND SERVICING OF FINANCIAL ASSETS	6 Months Ended
	Jun. 30, 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 special purpose vehicle (“SPV”) participations for the Main Street loans. 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 $67.9 million and $59.4 million at June 30, 2023 and December 31, 2022, respectively. This includes SBA loans serviced for others of $40.2 million and $30.3 million at June 30, 2023, and December 31, 2022, for which there was a related servicing asset of $683 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. The SBA servicing asset is reported in accrued interest receivable and other assets in the consolidated balance sheets. A summary of change in the SBA servicing asset for the three and six months ended June 30, 2023 and 2022 follows: Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 684 $ 162 $ 514 $ 170 Additions 24 237 216 251 Amortization (1) (25) (28) (47) (50) Balance, end of period $ 683 $ 371 $ 683 $ 371 (1) There was no accelerated amortization for the three months ended June 30, 2023. Amortization included accelerated amortization of $23 thousand for the three months ended June 30, 2022, and $3 thousand and $33 thousand for the six months ended June 30, 2023 and 2022, respectively. SBA 7(a) loans sold during the three and six months ended June 30, 2023 totaled $1.0 million and $10.9 million, respectively, resulting in total gains on sale of SBA loans of $77 thousand and $874 thousand, respectively. SBA 7(a) loans sold during the three and six months ended June 30, 2022 totaled $10.7 million and $11.2 million, respectively, resulting in total gains on sale of SBA loans of $711 thousand and $760 thousand, respectively. The fair value of the servicing asset was $697 thousand and $475 thousand at June 30, 2023 and December 31, 2022, respectively. The significant assumptions used in the valuation of the SBA servicing asset at June 30, 2023 and December 31, 2022 included: (dollars in thousands) June 30, December 31, Discount rate: Range 9.5% – 25.8% 13.9% – 34.3% Weighted average 15.1% 19.1% Prepayment speed: Range 9.8% – 44.6% 9.7% – 41.2% Weighted average 16.7% 17.0% The following table presents the components of net servicing fees, included in noninterest income in the consolidated statements of operations, for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Contractually specified fees 104 38 196 85 Amortization (25) (28) (47) (50) Net servicing fees $ 79 $ 10 $ 149 $ 35

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 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 totaled $37.8 million at June 30, 2023 and December 31, 2022. Goodwill is reviewed for impairment at least annually during the fourth quarter of each fiscal year. The Company performed a qualitative assessment for potential impairment as of December 31, 2022, and as a result of that assessment had determined that there has been no impairment to the goodwill. 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 is 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. There were no changes to goodwill during the three and six months ended June 30, 2023 and 2022. Core deposit intangibles are amortized over periods of 0.42 to 8.34 years. As of June 30, 2023, the weighted-average remaining amortization period for core deposit intangibles was approximately 6.6 years. The following table presents the changes in core deposit intangibles for the three and six months ended June 30, 2023 and 2022. Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Gross balance, beginning of period $ 4,185 $ 4,185 $ 4,185 $ 4,185 Additions — — — — Gross balance, end of period $ 4,185 $ 4,185 $ 4,185 $ 4,185 Accumulated amortization: Balance, beginning of period $ (2,692) $ (2,262) $ (2,601) $ (2,163) Amortization (90) (99) (181) (198) Balance, end of period (2,782) (2,361) (2,782) (2,361) Net core deposit intangible, end of period $ 1,403 $ 1,824 $ 1,403 $ 1,824 Future estimated amortization expense for each of the next five years is as follows: (dollars in thousands) Amount Remainder of 2023 $ 174 2024 271 2025 248 2026 227 2027 205 Thereafter 278 $ 1,403

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 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 June 30, 2023, ICS deposits increased to $256.3 million, or 12.9% 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 $69.3 million and $84.6 million as of June 30, 2023 and December 31, 2022, respectively. Brokered time deposits totaled $98.4 million and $20.7 million as of June 30, 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 June 30, 2023 and December 31, 2022, total collateralized deposits, including the deposits of State of California and their public agencies, were $45.7 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 7 – Borrowing Arrangements for additional information regarding the FHLB secured line of credit. At June 30, 2023, the scheduled maturities of time deposits are as follows: (dollars in thousands) Amount Remainder of 2023 $ 134,535 2024 30,306 2025 20,404 2026 3,941 2027 85 $ 189,271

BORROWING ARRANGEMENTS

BORROWING ARRANGEMENTS	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
BORROWING ARRANGEMENTS	BORROWING ARRANGEMENTS A summary of outstanding borrowings as of June 30, 2023 and December 31, 2022 follows: (dollars in thousands) June 30, December 31, FHLB advances $ 15,000 $ 50,000 Subordinated notes 17,818 17,770 Total borrowings $ 32,818 $ 67,770 Federal Home Loan Bank Secured Line of Credit At June 30, 2023, the Company had a secured line of credit of $468.5 million from the FHLB, of which $405.0 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 June 30, 2023, the Company had pledged qualifying loans with an unpaid principal balance of $833.7 million for this line. In addition, at June 30, 2023, the Company used $48.5 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 $15.0 million with an interest rate of 5.35% and $50.0 million with an interest of 4.65% at June 30, 2023 and December 31, 2022, respectively. Federal Reserve Bank Secured Line of Credit At June 30, 2023, the Company had credit availability of $141.8 million at the Federal Reserve discount window to the extent of collateral pledged. At June 30, 2023, the Company had pledged held-to-maturity debt securities with an amortized cost of $53.8 million as collateral, and qualifying loans with an unpaid principal balance of $131.6 million as collateral through the Borrower-in-Custody (“BIC”) program. The Company had no discount window borrowings at June 30, 2023 and December 31, 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 June 30, 2023, the Company did not establish any borrowing capacity through the BTFP program. Federal Funds Unsecured Lines of Credit At June 30, 2023, the Company had two overnight unsecured credit lines from correspondent banks totaling $60.0 million. The lines are subject to annual review. There were no outstanding borrowings under these lines at June 30, 2023 and December 31, 2022. Fixed-to-Floating Rate Subordinated Notes

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
SHAREHOLDERS' EQUITY	SHAREHOLDERS’ EQUITY Common Stock Repurchase Plan On June 14, 2023, the Company announced an authorized share repurchase plan, providing for the repurchase of up to 550,000 shares of the Company’s outstanding common stock, or approximately 3% of its then outstanding shares. Repurchases under the program may occur from time to time in open market transactions, in privately negotiated transactions, or by other means in accordance with federal securities laws and other restrictions. The Company intends to fund its repurchases from available working capital and cash provided by operating activities. The timing of repurchases, as well as the number of shares repurchased, will depend on a variety of factors, including price; trading volume; business, economic and general market conditions; and the terms of any Rule 10b5-1 plan adopted by the Company. The repurchase program has no expiration date and may be suspended, modified, or terminated at any time without prior notice. There were no shares repurchased under this share repurchase plan during the three months ended June 30, 2023.

EARNINGS PER SHARE (_EPS_)

EARNINGS PER SHARE (“EPS”)	6 Months Ended
	Jun. 30, 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 for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended (dollars in thousands, except share and per share data) 2023 2022 2023 2022 Net income (loss) $ 6,718 $ (736) $ 14,942 $ 710 Weighted average common shares outstanding - basic 18,287,595 17,808,742 18,172,083 17,765,991 Dilutive effect of outstanding: Stock options and unvested stock grants 308,633 393,112 440,861 406,292 Weighted average common shares outstanding - diluted 18,596,228 18,201,854 18,612,944 18,172,283 Earnings (loss) per common share - basic $ 0.37 $ (0.04) $ 0.82 $ 0.04 Earnings (loss) per common share - diluted $ 0.36 $ (0.04) $ 0.80 $ 0.04 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 diluted EPS for the three and six months ended June 30, 2023 because the performance conditions had been met, but they were excluded in the computation of diluted EPS for the three and six months ended June 30, 2022 because the performance conditions had not been met. At June 30, 2023 and 2022, there were 129,877 and 173,946 restricted stock units and 6,547 and 23,808 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	6 Months Ended
	Jun. 30, 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. The balance of these loans outstanding and activity in related party loans for the three and six months ended June 30, 2023 and 2022 follows: Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 8,052 $ 10,233 $ 8,073 $ 10,259 New credit granted — — — — Repayments (320) (1,157) (341) (1,183) Balance at end of period $ 7,732 $ 9,076 $ 7,732 $ 9,076 Directors and related interests deposits at June 30, 2023 and December 31, 2022, amounted to approximately $19.6 million and $4.7 million, respectively. 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 the three and six months ended June 30, 2023 was $11 thousand and $22 thousand, respectively, and was $10 thousand and $21 thousand for the three and six months ended June 30, 2022, respectively. At June 30, 2023, future minimum lease payments under the lease were $172 thousand.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 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 June 30, 2023 and December 31, 2022: (dollars in thousands) June 30, December 31, Commitments to extend credit $ 518,734 $ 596,349 Letters of credit issued to customers 4,912 4,794 Commitments to contribute capital to other equity investments 3,829 6,041 $ 527,475 $ 607,184 In 2016 and 2021, 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 for the three and six months ended June 30, 2023 was $79 thousand and $157 thousand, respectively, and $95 thousand and $182 thousand for the three and six months ended June 30, 2022, 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.

STOCK-BASED COMPENSATION PLAN

STOCK-BASED COMPENSATION PLAN	6 Months Ended
	Jun. 30, 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 Company’s Board of Directors approved increasing the maximum number of shares under the 2019 Plan by 300,000 to 2,500,000. In June 2021, the Company’s Board of Directors approved increasing the maximum number of shares under the 2019 Plan 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, 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 In connection with the Bank of Santa Clarita (“BSCA”) merger, the Company assumed each outstanding, unexercised option to acquire shares of BSCA common stock held by BSCA officers and employees who continue to be employed by the Company immediately following the merger, other than any stock options held by BSCA’s former chief executive officer. Total unexercised stock options were 90,731, of which 65,261 shares were vested and 25,470 shares were unvested. The remaining term on the assumed stock options ranges from 2.4 years to 9.2 years. Each such option assumed by the Company, immediately following the merger, represented a stock option to purchase the same number of shares as immediately prior to the merger, except that the assumed options represented the right to purchase shares of the Company’s stock instead of shares of BSCA stock. Each assumed option has the same exercise price and is subject to substantially the same terms and conditions as immediately prior to merger, including the original vesting schedule and conditions. All outstanding unexercised options to acquire shares of BSCA common stock held by employees who were not continuing employees or by BSCA’s former chief executive officer were canceled and terminated at the effective time of the merger. Total stock-based compensation cost related to stock options and restricted shares units was $1.1 million and $1.0 million for the three months ended June 30, 2023 and 2022, respectively. Total stock-based compensation cost related to stock options and restricted shares units was $2.8 million and $1.8 million for the six months ended June 30, 2023 and 2022, respectively. Stock Options As of June 30, 2023, there was $113 thousand of total unrecognized compensation cost related to the outstanding stock options. The intrinsic value of stock options exercised was approximately $29 thousand and $536 thousand for the three months ended June 30, 2023 and 2022, respectively. The intrinsic value of stock options exercised was approximately $78 thousand and $865 thousand for the six months ended June 30, 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 three and six months ended June 30, 2023 and 2022. A summary of changes in outstanding stock options during the three and six months ended June 30, 2023 and 2022 are presented below: Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 June 30, 2023 (dollars in thousands, except share data) Shares Weighted Shares Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic Outstanding at beginning of period 292,338 $ 9.22 326,868 $ 9.53 Granted — $ — — $ — Exercised (4,000) $ 6.61 (10,950) $ 8.53 Forfeited — $ — (27,580) $ 12.79 Outstanding at end of period 288,338 $ 9.26 288,338 $ 9.26 3.7 $ 1,286 Options exercisable 260,638 $ 8.97 260,638 $ 8.97 3.4 $ 1,238 Three Months Ended Six Months Ended June 30, 2022 June 30, 2022 June 30, 2022 (dollars in thousands, except share data) Shares Weighted Shares Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic Outstanding at beginning of period 459,768 $ 9.35 536,651 $ 9.36 Granted — $ — — $ — Exercised (69,600) $ 7.24 (110,600) $ 7.29 Forfeited (21,900) $ 12.44 (57,783) $ 12.03 Outstanding at end of period 368,268 $ 9.56 368,268 $ 9.56 4.8 $ 2,037 Options exercisable 306,393 $ 9.07 306,393 $ 9.07 4.4 $ 1,844 Restricted Stock Units A summary of the changes in outstanding unvested restricted stock units during the three and six months ended June 30, 2023 and 2022 is presented below: Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 Restricted Weighted Average Grant Date Fair Value Restricted Weighted Average Grant Date Fair Value Unvested at beginning of period 783,174 $ 13.18 959,337 $ 11.55 Granted 21,324 $ 15.16 192,258 $ 16.73 Vested (1) (26,075) $ 14.67 (373,172) $ 10.80 Forfeited — $ — — $ — Unvested at end of period 778,423 $ 13.19 778,423 $ 13.19 (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 six months ended June 30, 2023. Three Months Ended Six Months Ended June 30, 2022 June 30, 2022 Restricted Weighted Average Grant Date Fair Value Restricted Weighted Average Grant Date Fair Value Unvested at beginning of period 1,138,433 $ 11.40 1,010,501 $ 10.55 Granted 60,586 $ 15.04 247,507 $ 15.29 Vested (19,410) $ 13.86 (25,035) $ 13.66 Forfeited (39,737) $ 13.71 (93,101) $ 11.02 Unvested at end of period 1,139,872 $ 11.47 1,139,872 $ 11.47 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. There was no accelerated stock-based compensation recorded for the three months ended June 30, 2023. For the six months ended June 30, 2023, the Company recorded accelerated stock-based compensation expense totaling $632 thousand. As of June 30, 2023, there was $7.9 million of total unrecognized compensation expense related to the outstanding restricted stock units that will be recognized over the weighted-average period of 2.5 years. The total grant date fair value of restricted stock units vested was $383 thousand and $4.0 million for the three and six months ended June 30, 2023, respectively, and $269 thousand and $342 thousand for the three and six months ended June 30, 2022, respectively. Related tax expenses were approximately $8 thousand for the three months ended June 30, 2023, and related tax benefits were approximately $644 thousand for the six months ended June 30, 2023, and $6 thousand and $11 thousand for the three and six months ended June 30, 2022, respectively. As of June 30, 2023, the Company did not have any outstanding unvested restricted stock units subject to various financial performance conditions. 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	6 Months Ended
	Jun. 30, 2023
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
REGULATORY MATTERS	REGULATORY MATTERS At June 30, 2023 and December 31, 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 June 30, 2023 and December 31, 2022, the Bank exceeded the minimums necessary to qualify as “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 June 30, 2023 and December 31, 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 June 30, 2023. At June 30, 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 June 30, 2023: Total Capital (to Risk-Weighted Assets) $ 279,038 12.98 % $ 172,020 8.0 % $ 215,025 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 259,098 12.05 % 129,015 6.0 % 172,020 8.0 % CET1 Capital (to Risk-Weighted Assets) 259,098 12.05 % 96,761 4.5 % 139,766 6.5 % Tier 1 Capital (to Average Assets) 259,098 11.47 % 90,325 4.0 % 112,907 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 and, absent the approval of the OCC, the Bank’s primary banking regulatory, if 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.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 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. 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. For impaired loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral. This approach utilizes the estimated net sales proceeds to determine the fair value of the loans when deemed appropriate. The implied sales proceeds value provides a better indication of value than using an income-based approach as these loans are not performing or exhibit strong signs indicative of non-performance. 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 the 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 June 30, 2023 and December 31, 2022, is summarized as follows: June 30, 2023 December 31, 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 $ 34,632 $ 34,632 $ 60,295 $ 60,295 Fed funds and interest-bearing balances Level 1 69,995 69,995 26,465 26,465 Debt securities available for sale Level 2 119,875 119,875 112,580 112,580 Debt securities held to maturity Level 2 53,782 48,563 53,946 47,906 Loans held for sale Level 2 1,062 1,129 9,027 9,616 Loans held for investment, net Level 3 1,890,851 1,844,735 1,880,674 1,836,782 Restricted stock, at cost Level 2 15,997 15,997 14,543 14,543 Other equity securities Level 2 9,074 9,074 6,974 6,974 Accrued interest receivable Level 2 6,604 6,604 6,868 6,868 Financial liabilities: Deposits Level 2 1,980,908 1,979,468 1,931,905 1,929,947 Borrowings Level 2 32,818 32,435 67,770 67,387 Accrued interest payable Level 2 298 298 215 215 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 June 30, 2023 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 47,418 $ — $ 47,418 SBA securities — 6,672 — 6,672 U.S. Treasury — 5,936 — 5,936 U.S. Agency — 6,227 — 6,227 Collateralized mortgage obligations — 42,853 — 42,853 Taxable municipals — 4,270 — 4,270 Tax exempt bank-qualified municipals — 6,499 — 6,499 $ — $ 119,875 $ — $ 119,875 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 municipals — 4,228 — 4,228 Tax exempt bank-qualified municipals — 20,627 — 20,627 $ — $ 112,580 $ — $ 112,580 Nonrecurring fair value measurements

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to Article 10 of SEC Regulation S-X and other SEC rules and regulations for reporting on the Quarterly Report on Form 10-Q. Accordingly, certain disclosures required by U.S. generally accepted accounting principles (“GAAP”) are not included herein. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in Item 13. Financial Statements and Supplementary Data of the Company’s Registration Statement on Form 10 under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) filed with the SEC and declared effective on May 10, 2023 (our “Registration Statement”). In the opinion of management of the Company, the accompanying unaudited interim consolidated financial statements reflect all of the adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial condition and consolidated results of operations as of the dates and for the periods presented. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
Principles of Consolidations	Principles of ConsolidationThe 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	Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in conformity with GAAP 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
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.
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 when 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 allowance for credit losses (“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 June 30, 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. The Company is currently evaluating the impact of ASU 2020-04 to the consolidated financial statements. 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
Allowance for Credit Losses - Debt Securities	Allowance for Credit Losses — 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 current expected credit losses 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 no 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 (reversal of) provision for credit losses in the consolidated statements of operations. Losses are charged against the ACL when management believes the uncollectibility of a held-to-maturity debt security is confirmed. Allowance for Credit Losses — Available-for-Sale Debt Securities
Allowance for Credit Losses - Loans and Loan Modifications, Refinancings and Restructurings	Allowance for Credit Losses — Loans An ACL 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 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 the following section). 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 (reversal of) provision for credit losses in the consolidated statements of operations. 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 using a discounted cash flow methodology, which utilizes pool-level assumptions and cash flow projections on individual loan basis, which 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 consumers, 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 would 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 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. Assumptions for prepayment/curtailment rates are based on benchmark rates provided by the Company’s third-party loss model provider. 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. 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, 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, 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, and payment delays, 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 classifed as TDRs under previous GAAP.
Allowance for Credit Losses - Off-Balance Sheet Credit Exposures	Allowance for Credit Losses — Off-Balance Sheet Credit Exposures The Company also maintains a separate allowance for off-balance sheet commitments. 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
Fair Value of Financial Instruments	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. 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. For impaired loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral. This approach utilizes the estimated net sales proceeds to determine the fair value of the loans when deemed appropriate. The implied sales proceeds value provides a better indication of value than using an income-based approach as these loans are not performing or exhibit strong signs indicative of non-performance. 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 the 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.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 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 approximate fair values at June 30, 2023 and December 31, 2022 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair June 30, 2023 Taxable municipals $ 551 $ — $ (83) $ 468 Tax exempt bank-qualified municipals 53,231 — (5,136) 48,095 $ 53,782 $ — $ (5,219) $ 48,563 December 31, 2022 Taxable municipals $ 550 $ — $ (105) $ 445 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 approximate fair values at June 30, 2023 and December 31, 2022 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair June 30, 2023 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 51,397 $ — $ (3,979) $ 47,418 SBA securities 6,796 7 (131) 6,672 (dollars in thousands) Amortized Cost Gross Gross Estimated Fair U.S. Treasury 6,612 — (676) 5,936 U.S. Agency 7,023 — (796) 6,227 Collateralized mortgage obligations 46,319 15 (3,481) 42,853 Taxable municipals 4,405 36 (171) 4,270 Tax exempt bank-qualified municipals 6,637 4 (142) 6,499 $ 129,189 $ 62 $ (9,376) $ 119,875 December 31, 2022 U.S. government and agency 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 June 30, 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 June 30, 2023 Due in one year or less $ — $ — $ 1,640 $ 1,638 Due after one year through five years — — 17,855 16,763 Due after five years through ten years 11,707 10,910 23,734 20,744 Due after ten years 42,075 37,653 85,960 80,730 $ 53,782 $ 48,563 $ 129,189 $ 119,875
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 three and six months ended June 30, 2023 and 2022 follows: Three Months Ended Six Months Ended (dollars in thousands) June 30, June 30, June 30, June 30, Gross gains on sales and calls $ 181 $ — $ 181 $ — Gross losses on sales and calls (147) — (147) — Gain on sale of available-for-sale debt securities 34 — 34 — Proceeds from sales and calls $ 17,307 $ — $ 17,312 $ —
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 June 30, 2023 and December 31, 2022 are summarized as follows: Less than 12 Months 12 Months or Longer Total (dollars in thousands) Unrealized Estimated Unrealized Estimated Unrealized Estimated June 30, 2023: Available-for-sale debt securities: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (284) $ 24,979 $ (3,695) $ 22,439 $ (3,979) $ 47,418 SBA securities (6) 2,244 (125) 2,103 (131) 4,347 U.S. Treasury — — (676) 5,936 (676) 5,936 U.S. Agency — — (796) 6,227 (796) 6,227 Collateralized mortgage obligations (440) 18,514 (3,041) 23,299 (3,481) 41,813 Taxable municipals — — (171) 3,733 (171) 3,733 Tax exempt bank-qualified municipals (70) 3,958 (72) 2,287 (142) 6,245 $ (800) $ 49,695 $ (8,576) $ 66,024 $ (9,376) $ 115,719 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 U.S. 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 June 30, 2023 and December 31, 2022: (dollars in thousands) June 30, December 31, Federal Reserve Bank $ 7,372 $ 7,318 Federal Home Loan Bank 8,625 7,225 $ 15,997 $ 14,543

LOANS AND ALLOWANCE FOR CREDI_2

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)	6 Months Ended
	Jun. 30, 2023
Receivables [Abstract]
Summary of Loan Portfolio	The composition of the Company’s loan portfolio at June 30, 2023 and December 31, 2022 was as follows: (dollars in thousands) June 30, December 31, Construction and land development $ 275,250 $ 239,067 Real estate - other: 1-4 family residential 150,150 144,322 Multifamily residential 210,025 218,606 Commercial real estate and other 961,307 958,676 Commercial and industrial (1) 312,845 331,644 Consumer 3,776 5,458 Loans held for investment (2) 1,913,353 1,897,773 Allowance for credit losses (22,502) (17,099) Loans held for investment, net $ 1,890,851 $ 1,880,674 Loans held for sale, at lower of cost or fair value $ 1,062 $ 9,027 (1) Includes Paycheck Protection Program (“PPP”) loans at net amortized amount of $3.0 million and $3.5 million at June 30, 2023 and December 31, 2022, respectively. (2) Loans held for investment includes net unearned fees of $2.6 million and $3.3 million and net unearned discount of $1.6 million and $1.8 million at June 30, 2023 and December 31, 2022, respectively.
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 June 30, 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 June 30, 2023 Construction and land development Pass $ 5,360 $ 121,263 $ 130,351 $ 14,794 $ 1,940 $ 586 $ 859 $ — $ 275,153 Special mention — — — — — — — — — Substandard — — — — — 97 — — 97 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development 5,360 121,263 130,351 14,794 1,940 683 859 — 275,250 Real estate - other: 1-4 family residential Pass 26,666 37,547 21,907 7,913 5,119 16,653 33,346 — 149,151 Special mention — — — — — — 999 — 999 Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1-4 family residential 26,666 37,547 21,907 7,913 5,119 16,653 34,345 — 150,150 Multifamily residential Pass 10,494 70,602 72,765 5,982 27,624 21,723 835 — 210,025 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily residential 10,494 70,602 72,765 5,982 27,624 21,723 835 — 210,025 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 31,223 310,818 245,375 60,300 53,436 217,617 36,179 1,642 956,590 Special mention — 2,721 — — — — — — 2,721 Substandard — — — — — 1,996 — — 1,996 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate and other 31,223 313,539 245,375 60,300 53,436 219,613 36,179 1,642 961,307 Commercial and industrial Pass 47,155 81,834 14,275 6,702 9,284 15,743 127,439 1,003 303,435 Special mention — — 1,648 1,554 161 333 3,145 — 6,841 Substandard — — 77 — 1,310 682 — 500 2,569 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and industrial 47,155 81,834 16,000 8,256 10,755 16,758 130,584 1,503 312,845 Consumer Pass 915 — 48 107 10 651 2,045 — 3,776 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 915 — 48 107 10 651 2,045 — 3,776 Total loans $ 121,813 $ 624,785 $ 486,446 $ 97,352 $ 98,884 $ 276,081 $ 204,847 $ 3,145 $ 1,913,353 Total loans Pass $ 121,813 $ 622,064 $ 484,721 $ 95,798 $ 97,413 $ 272,973 $ 200,703 $ 2,645 $ 1,898,130 Special mention — 2,721 1,648 1,554 161 333 4,144 — 10,561 Substandard — — 77 — 1,310 2,775 — 500 4,662 Doubtful — — — — — — — — — Loss — — — — — — — — — Total loans $ 121,813 $ 624,785 $ 486,446 $ 97,352 $ 98,884 $ 276,081 $ 204,847 $ 3,145 $ 1,913,353 A summary of gross charge-offs by class of loans and origination year for the six months ended June 30, 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 — — — — — — — — — Commercial real estate and other — — — — — — — — — Commercial and industrial — — — (15) — (9) — — (24) Consumer — — — — — — — — — Total loans $ — $ — $ — $ (15) $ — $ (21) $ — $ — $ (36) 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 June 30, 2023 and December 31, 2022 follows: (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Total June 30, 2023 Construction and land development $ — $ — $ — $ — $ 275,250 $ 275,250 Real estate - other: 1-4 family residential — — — — 150,150 150,150 Multifamily residential — — — — 210,025 210,025 Commercial real estate and other — — — — 961,307 961,307 Commercial and industrial — — — — 312,845 312,845 Consumer — — — — 3,776 3,776 $ — $ — $ — $ — $ 1,913,353 $ 1,913,353 (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Total December 31, 2022 Construction and land development $ — $ — $ — $ — $ 239,067 $ 239,067 Real estate - other: 1-4 family residential — — — — 144,322 144,322 Multifamily residential — — — — 218,606 218,606 Commercial real estate and other — — — — 958,676 958,676 Commercial and industrial — — — — 331,644 331,644 Consumer — — — — 5,458 5,458 $ — $ — $ — $ — $ 1,897,773 $ 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 June 30, 2023 and December 31, 2022 follows: June 30, 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 — — — — Commercial real estate and other 1 — 2 — Commercial and industrial 39 — — — Consumer — — — — $ 40 $ — $ 41 $ —
Summary of Changes in Allowance for Credit Losses	A summary of the changes in the ACL for the periods indicated follows: Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Allowance for loan losses (ALL) Balance, beginning of period $ 22,391 $ 13,534 $ 17,099 $ 11,657 Adoption of ASU No. 2016-13 (1) — — 5,027 — Provision for loan losses 120 1,650 398 3,500 Charge-offs (9) (21) (36) (21) Recoveries — (27) 14 — Net charge-offs (9) (48) (22) (21) Balance, end of period $ 22,502 $ 15,136 $ 22,502 $ 15,136 Reserve for unfunded loan commitments Balance, beginning of period $ 1,673 $ 804 $ 1,310 $ 804 Adoption of ASU No. 2016-13 (1) — — 439 — (Reversal of) provision for unfunded commitment losses (135) 146 (211) 146 Balance, end of period 1,538 950 1,538 950 Allowance for credit losses (ACL), end of period $ 24,040 $ 16,086 $ 24,040 $ 16,086 (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 ACL by loan portfolio segment for the periods indicated follows: (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Three Months Ended June 30, 2023 Beginning of period $ 3,397 $ 14,699 $ 4,241 $ 54 $ 22,391 Adoption of ASU No. 2016-13 (1) — — — — — Provision (reversal of) for loan losses 159 398 (424) (13) 120 Charge-offs — — (9) — (9) Recoveries — — — — — Net charge-offs — — (9) — (9) End of period $ 3,556 $ 15,097 $ 3,808 $ 41 $ 22,502 (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Specific reserves $ — $ — $ 12 $ — $ 12 General reserves 3,556 15,097 3,796 41 22,490 $ 3,556 $ 15,097 $ 3,808 $ 41 $ 22,502 Loans evaluated for impairment: Individually $ — $ 1 $ 39 $ — $ 40 Collectively 275,250 1,321,481 312,806 3,776 1,913,313 $ 275,250 $ 1,321,482 $ 312,845 $ 3,776 $ 1,913,353 Three Months Ended June 30, 2022 Beginning of period $ 892 $ 10,012 $ 2,628 $ 2 $ 13,534 Provision for loan losses 367 974 281 28 1,650 Charge-offs — — (21) — (21) Recoveries — (1) (25) (1) (27) Net charge-offs — (1) (46) (1) (48) End of period $ 1,259 $ 10,985 $ 2,863 $ 29 $ 15,136 Specific reserves $ — $ 14 $ — $ — $ 14 General reserves 1,259 10,971 2,863 29 15,122 $ 1,259 $ 10,985 $ 2,863 $ 29 $ 15,136 Loans evaluated for impairment: Individually $ — $ 1,669 $ 101 $ — $ 1,770 Collectively 109,843 1,196,910 316,870 1,611 1,625,234 $ 109,843 $ 1,198,579 $ 316,971 $ 1,611 $ 1,627,004 (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Six Months Ended June 30, 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 Provision (reversal of) for loan losses 374 435 (393) (18) 398 Charge-offs — (12) (24) — (36) Recoveries — — 14 — 14 Net charge-offs — (12) (10) — (22) End of period $ 3,556 $ 15,097 $ 3,808 $ 41 $ 22,502 Six Months Ended June 30, 2022 Beginning of period $ 666 $ 8,441 $ 2,548 $ 2 $ 11,657 Provision for loan losses 593 2,544 336 27 3,500 Charge-offs — — (21) — (21) Recoveries — — — — — Net charge-offs — — (21) — (21) End of period $ 1,259 $ 10,985 $ 2,863 $ 29 $ 15,136 (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 ACL is based on a CECL methodology, rather than the previously applied incurred loss methodology.

TRANSFERS AND SERVICING OF FI_2

TRANSFERS AND SERVICING OF FINANCIAL ASSETS (Tables)	6 Months Ended
	Jun. 30, 2023
Transfers and Servicing [Abstract]
Summary of Change in SBA Servicing Asset	A summary of change in the SBA servicing asset for the three and six months ended June 30, 2023 and 2022 follows: Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 684 $ 162 $ 514 $ 170 Additions 24 237 216 251 Amortization (1) (25) (28) (47) (50) Balance, end of period $ 683 $ 371 $ 683 $ 371
Significant Valuation Assumptions for the SBA Servicing Asset	The significant assumptions used in the valuation of the SBA servicing asset at June 30, 2023 and December 31, 2022 included: (dollars in thousands) June 30, December 31, Discount rate: Range 9.5% – 25.8% 13.9% – 34.3% Weighted average 15.1% 19.1% Prepayment speed: Range 9.8% – 44.6% 9.7% – 41.2% Weighted average 16.7% 17.0%
Components of Net Servicing Fees Included in Noninterest Income	The following table presents the components of net servicing fees, included in noninterest income in the consolidated statements of operations, for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Contractually specified fees 104 38 196 85 Amortization (25) (28) (47) (50) Net servicing fees $ 79 $ 10 $ 149 $ 35

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Changes in Core Deposit Intangibles	The following table presents the changes in core deposit intangibles for the three and six months ended June 30, 2023 and 2022. Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Gross balance, beginning of period $ 4,185 $ 4,185 $ 4,185 $ 4,185 Additions — — — — Gross balance, end of period $ 4,185 $ 4,185 $ 4,185 $ 4,185 Accumulated amortization: Balance, beginning of period $ (2,692) $ (2,262) $ (2,601) $ (2,163) Amortization (90) (99) (181) (198) Balance, end of period (2,782) (2,361) (2,782) (2,361) Net core deposit intangible, end of period $ 1,403 $ 1,824 $ 1,403 $ 1,824
Future Estimated Amortization Expense	Future estimated amortization expense for each of the next five years is as follows: (dollars in thousands) Amount Remainder of 2023 $ 174 2024 271 2025 248 2026 227 2027 205 Thereafter 278 $ 1,403

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2023
Deposits [Abstract]
Scheduled Maturities of Time Deposits	At June 30, 2023, the scheduled maturities of time deposits are as follows: (dollars in thousands) Amount Remainder of 2023 $ 134,535 2024 30,306 2025 20,404 2026 3,941 2027 85 $ 189,271

BORROWING ARRANGEMENTS (Tables)

BORROWING ARRANGEMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Summary of Outstanding Borrowings	A summary of outstanding borrowings as of June 30, 2023 and December 31, 2022 follows: (dollars in thousands) June 30, December 31, FHLB advances $ 15,000 $ 50,000 Subordinated notes 17,818 17,770 Total borrowings $ 32,818 $ 67,770

EARNINGS PER SHARE (_EPS_) (Tab

EARNINGS PER SHARE (“EPS”) (Tables)	6 Months Ended
	Jun. 30, 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 for the three and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended (dollars in thousands, except share and per share data) 2023 2022 2023 2022 Net income (loss) $ 6,718 $ (736) $ 14,942 $ 710 Weighted average common shares outstanding - basic 18,287,595 17,808,742 18,172,083 17,765,991 Dilutive effect of outstanding: Stock options and unvested stock grants 308,633 393,112 440,861 406,292 Weighted average common shares outstanding - diluted 18,596,228 18,201,854 18,612,944 18,172,283 Earnings (loss) per common share - basic $ 0.37 $ (0.04) $ 0.82 $ 0.04 Earnings (loss) per common share - diluted $ 0.36 $ (0.04) $ 0.80 $ 0.04

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Party Loans Outstanding	The balance of these loans outstanding and activity in related party loans for the three and six months ended June 30, 2023 and 2022 follows: Three Months Ended Six Months Ended (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 8,052 $ 10,233 $ 8,073 $ 10,259 New credit granted — — — — Repayments (320) (1,157) (341) (1,183) Balance at end of period $ 7,732 $ 9,076 $ 7,732 $ 9,076

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2023 and December 31, 2022: (dollars in thousands) June 30, December 31, Commitments to extend credit $ 518,734 $ 596,349 Letters of credit issued to customers 4,912 4,794 Commitments to contribute capital to other equity investments 3,829 6,041 $ 527,475 $ 607,184

STOCK-BASED COMPENSATION PLAN (

STOCK-BASED COMPENSATION PLAN (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Changes in Outstanding Stock Options	A summary of changes in outstanding stock options during the three and six months ended June 30, 2023 and 2022 are presented below: Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 June 30, 2023 (dollars in thousands, except share data) Shares Weighted Shares Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic Outstanding at beginning of period 292,338 $ 9.22 326,868 $ 9.53 Granted — $ — — $ — Exercised (4,000) $ 6.61 (10,950) $ 8.53 Forfeited — $ — (27,580) $ 12.79 Outstanding at end of period 288,338 $ 9.26 288,338 $ 9.26 3.7 $ 1,286 Options exercisable 260,638 $ 8.97 260,638 $ 8.97 3.4 $ 1,238 Three Months Ended Six Months Ended June 30, 2022 June 30, 2022 June 30, 2022 (dollars in thousands, except share data) Shares Weighted Shares Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic Outstanding at beginning of period 459,768 $ 9.35 536,651 $ 9.36 Granted — $ — — $ — Exercised (69,600) $ 7.24 (110,600) $ 7.29 Forfeited (21,900) $ 12.44 (57,783) $ 12.03 Outstanding at end of period 368,268 $ 9.56 368,268 $ 9.56 4.8 $ 2,037 Options exercisable 306,393 $ 9.07 306,393 $ 9.07 4.4 $ 1,844
Summary of Changes in Outstanding Unvested Restricted Stock Units	A summary of the changes in outstanding unvested restricted stock units during the three and six months ended June 30, 2023 and 2022 is presented below: Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 Restricted Weighted Average Grant Date Fair Value Restricted Weighted Average Grant Date Fair Value Unvested at beginning of period 783,174 $ 13.18 959,337 $ 11.55 Granted 21,324 $ 15.16 192,258 $ 16.73 Vested (1) (26,075) $ 14.67 (373,172) $ 10.80 Forfeited — $ — — $ — Unvested at end of period 778,423 $ 13.19 778,423 $ 13.19 (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 six months ended June 30, 2023. Three Months Ended Six Months Ended June 30, 2022 June 30, 2022 Restricted Weighted Average Grant Date Fair Value Restricted Weighted Average Grant Date Fair Value Unvested at beginning of period 1,138,433 $ 11.40 1,010,501 $ 10.55 Granted 60,586 $ 15.04 247,507 $ 15.29 Vested (19,410) $ 13.86 (25,035) $ 13.66 Forfeited (39,737) $ 13.71 (93,101) $ 11.02 Unvested at end of period 1,139,872 $ 11.47 1,139,872 $ 11.47

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2023: Total Capital (to Risk-Weighted Assets) $ 279,038 12.98 % $ 172,020 8.0 % $ 215,025 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 259,098 12.05 % 129,015 6.0 % 172,020 8.0 % CET1 Capital (to Risk-Weighted Assets) 259,098 12.05 % 96,761 4.5 % 139,766 6.5 % Tier 1 Capital (to Average Assets) 259,098 11.47 % 90,325 4.0 % 112,907 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)	6 Months Ended
	Jun. 30, 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 June 30, 2023 and December 31, 2022, is summarized as follows: June 30, 2023 December 31, 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 $ 34,632 $ 34,632 $ 60,295 $ 60,295 Fed funds and interest-bearing balances Level 1 69,995 69,995 26,465 26,465 Debt securities available for sale Level 2 119,875 119,875 112,580 112,580 Debt securities held to maturity Level 2 53,782 48,563 53,946 47,906 Loans held for sale Level 2 1,062 1,129 9,027 9,616 Loans held for investment, net Level 3 1,890,851 1,844,735 1,880,674 1,836,782 Restricted stock, at cost Level 2 15,997 15,997 14,543 14,543 Other equity securities Level 2 9,074 9,074 6,974 6,974 Accrued interest receivable Level 2 6,604 6,604 6,868 6,868 Financial liabilities: Deposits Level 2 1,980,908 1,979,468 1,931,905 1,929,947 Borrowings Level 2 32,818 32,435 67,770 67,387 Accrued interest payable Level 2 298 298 215 215
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 June 30, 2023 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 47,418 $ — $ 47,418 SBA securities — 6,672 — 6,672 U.S. Treasury — 5,936 — 5,936 U.S. Agency — 6,227 — 6,227 Collateralized mortgage obligations — 42,853 — 42,853 Taxable municipals — 4,270 — 4,270 Tax exempt bank-qualified municipals — 6,499 — 6,499 $ — $ 119,875 $ — $ 119,875 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 municipals — 4,228 — 4,228 Tax exempt bank-qualified municipals — 20,627 — 20,627 $ — $ 112,580 $ — $ 112,580

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands			6 Months Ended
		Jan. 01, 2023 USD ($)	Jun. 30, 2023 USD ($) branchOffice segment	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)		Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of branch offices | branchOffice			13
Number of reportable segments | segment			1
Decrease in retained earnings			$ (273,749)	$ (267,539)	$ (260,355)		$ (245,331)	$ (246,761)	$ (246,528)
Allowance for credit losses - loans		$ 17,099	22,502	22,391	17,099		15,136	13,534	11,657
Allowance for credit losses - unfunded loan commitments		1,310	1,538	1,673	1,310		950	804	804
Deferred tax assets			11,666		10,699
Construction and Land Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		2,301	$ 3,556	3,397	2,301		1,259	892	666
Maximum LTV ratio			75%
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		28	$ 41	54	28		29	2	2
Loan term			5 years
Minimum | Construction and Land Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loan term			12 months
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			$ (59,607)	(52,889)	(48,516)		$ (33,113)	(33,849)	(32,403)
Adoption of ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in retained earnings	[1]				3,851
Adjustment to allowance for credit losses		5,500
Allowance for credit losses - loans		5,027		0	5,027			0	0
Allowance for credit losses - unfunded loan commitments		439		0	439			$ 0	$ 0
Deferred tax assets		1,600
Adoption of ASU 2016-13 | Construction and Land Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		881		0	881
Adoption of ASU 2016-13 | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		31		$ 0	31
Adoption of ASU 2016-13 | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in retained earnings		$ 3,900			$ 3,851	[1]
[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	Jun. 30, 2023	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	$ 22,502	$ 22,391	$ 17,099	$ 17,099	$ 15,136	$ 13,534	$ 11,657
Allowance for credit losses - unfunded loan commitments	1,538	1,673	1,310	1,310	950	804	804
Construction and Land Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	3,556	3,397	2,301	2,301	1,259	892	666
Real Estate - Other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	15,097	14,699		11,691	10,985	10,012	8,441
Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	3,808	4,241	3,079	3,079	2,863	2,628	2,548
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	$ 41	54	28	28	$ 29	2	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		0	5,027	5,027		0	0
Allowance for credit losses - unfunded loan commitments		0	439	439		$ 0	$ 0
Impact of CECL Adoption | Construction and Land Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		0	881	881
Impact of CECL Adoption | Real Estate - Other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		0		2,983
Impact of CECL Adoption | Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		0	1,132	1,132
Impact of CECL Adoption | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans		$ 0	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 & 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	Jun. 30, 2023	Dec. 31, 2022
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-Maturity, Amortized Cost	$ 53,782	$ 53,946
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(5,219)	(6,040)
Estimated Fair Value	48,563	47,906
Taxable municipals
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-Maturity, Amortized Cost	551	550
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(83)	(105)
Estimated Fair Value	468	445
Tax exempt bank-qualified municipals
Schedule of Held-to-Maturity Securities [Line Items]
Held-to-Maturity, Amortized Cost	53,231	53,396
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(5,136)	(5,935)
Estimated Fair Value	$ 48,095	$ 47,461

INVESTMENT SECURITIES - Amort_2

INVESTMENT SECURITIES - Amortized Cost and Fair Value of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale, Amortized Cost	$ 129,189	$ 121,652
Gross Unrealized Gains	62	235
Gross Unrealized Losses	(9,376)	(9,307)
Estimated Fair Value	119,875	112,580
Mortgage-backed securities
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale, Amortized Cost	51,397	27,029
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(3,979)	(3,734)
Estimated Fair Value	47,418	23,295
SBA securities
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale, Amortized Cost	6,796	7,988
Gross Unrealized Gains	7	16
Gross Unrealized Losses	(131)	(132)
Estimated Fair Value	6,672	7,872
U.S. Treasury
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale, Amortized Cost	6,612	6,652
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(676)	(700)
Estimated Fair Value	5,936	5,952
U.S. Agency
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale, Amortized Cost	7,023	7,025
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(796)	(842)
Estimated Fair Value	6,227	6,183
Collateralized mortgage obligations
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale, Amortized Cost	46,319	47,778
Gross Unrealized Gains	15	20
Gross Unrealized Losses	(3,481)	(3,375)
Estimated Fair Value	42,853	44,423
Taxable municipals
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale, Amortized Cost	4,405	4,403
Gross Unrealized Gains	36	36
Gross Unrealized Losses	(171)	(211)
Estimated Fair Value	4,270	4,228
Tax exempt bank-qualified municipals
Debt Securities, Available-for-Sale [Line Items]
Available-for-Sale, Amortized Cost	6,637	20,777
Gross Unrealized Gains	4	163
Gross Unrealized Losses	(142)	(313)
Estimated Fair Value	$ 6,499	$ 20,627

INVESTMENT SECURITIES - Narrati

INVESTMENT SECURITIES - Narrative (Details) $ in Thousands			3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($) security	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) security
Debt Securities, Available-for-Sale [Line Items]
Accrued interest receivable on debt securities	$ 856	$ 1,100	$ 856		$ 856		$ 1,100
Held-to-maturity debt securities pledged as collateral	$ 53,782	$ 53,946	$ 53,782		$ 53,782		$ 53,946
Number of available-for-sale debt securities in a gross unrealized loss position | security	92	88	92		92		88
Number of available-for-sale debt securities with total unrealized losses in a continual loss position for 12 months or longer | security	71	43	71		71		43
Unrealized losses in a continual loss position for 12 months or longer	$ 8,576	$ 5,084	$ 8,576		$ 8,576		$ 5,084
Net unrealized loss on available-for-sale debt securities					9,300		9,100
Net unrealized loss on available-for-sale debt securities, net of tax	$ 6,600	6,400	$ 6,600		$ 6,600		6,400
Number of available-for-sale debt securities | security	97		97		97
Debt securities available-for-sale, at fair value	$ 119,875	112,580	$ 119,875		$ 119,875		112,580
Number of held-to-maturity debt securities | security	61		61		61
Debt securities held to maturity	$ 48,563	47,906	$ 48,563		$ 48,563		47,906
Unrealized losses on held-to-maturity debt securities	5,219	6,040	5,219		5,219		6,040
Provision for credit losses on held-to-maturity debt securities			0		0
Provision for credit losses on available-for-sale debt securities			0		0
Other-than-temporary unrealized losses		0					0
Federal Reserve Bank stock purchased			40		54
FHLB stock purchased			1,400		1,400
Line of Credit | Federal Reserve Bank | Collateralized Line of Credit
Debt Securities, Available-for-Sale [Line Items]
Collateralized line of credit	45,900		45,900		45,900
Asset Pledged as Collateral | Federal Reserve Bank Advances
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	53,800	0	53,800		53,800		0
Standard & Poor's, AA Rating And Above
Debt Securities, Available-for-Sale [Line Items]
Debt securities available-for-sale, at fair value	7,500		7,500		7,500
Held-to-maturity debt securities	45,300		45,300		45,300
Standard & Poor's, A Rating And Above
Debt Securities, Available-for-Sale [Line Items]
Debt securities available-for-sale, at fair value	3,300		3,300		3,300
Standard & Poor's, AA- Rating
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities	3,200		3,200		3,200
Other Bank Stock
Debt Securities, Available-for-Sale [Line Items]
Equity securities without readily determinable fair values	351	351	351		351		351
Impairment loss from change in fair value of other equity securities			0	$ 0	0	$ 0
Other Equity Investments
Debt Securities, Available-for-Sale [Line Items]
Equity securities without readily determinable fair values	6,700	4,600	6,700		6,700		4,600
Impairment loss from change in fair value of other equity securities			0	0	0	0
Net capital contributions made to equity investments			1,500	$ 434	2,100	$ 1,400
Limited Partnership
Debt Securities, Available-for-Sale [Line Items]
Affordable housing project investments, commitment	2,000	2,000	2,000		2,000		2,000
Contributions to affordable housing project investments			0		0
Impairment loss from change in fair value of affordable housing project investment	0	0
Taxable municipals
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	551	550	551		551		550
Unrealized losses in a continual loss position for 12 months or longer	171	136	171		171		136
Debt securities available-for-sale, at fair value	4,270	4,228	4,270		4,270		4,228
Debt securities held to maturity	468	445	468		468		445
Unrealized losses on held-to-maturity debt securities	83	105	83		83		105
Tax exempt bank-qualified municipals
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	53,231	53,396	53,231		53,231		53,396
Unrealized losses in a continual loss position for 12 months or longer	72	0	72		72		0
Debt securities available-for-sale, at fair value	6,499	20,627	6,499		6,499		20,627
Debt securities held to maturity	48,095	47,461	48,095		48,095		47,461
Unrealized losses on held-to-maturity debt securities	$ 5,136	$ 5,935	$ 5,136		$ 5,136		$ 5,935

INVESTMENT SECURITIES - Schedul

INVESTMENT SECURITIES - Schedule of Debt Securities Classified by Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 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	11,707
Due after ten years	42,075
Held-to-Maturity, Amortized Cost	53,782	$ 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	10,910
Due after ten years	37,653
Held-to-Maturity, Estimated Fair Value	48,563	47,906
Available-for-Sale, Amortized Cost
Due in one year or less	1,640
Due after one year through five years	17,855
Due after five years through ten years	23,734
Due after ten years	85,960
Available-for-Sale, Amortized Cost	129,189	121,652
Available-for-Sale, Estimated Fair Value
Due in one year or less	1,638
Due after one year through five years	16,763
Due after five years through ten years	20,744
Due after ten years	80,730
Available-for-Sale, Estimated Fair Value	$ 119,875	$ 112,580

INVESTMENT SECURITIES - Sched_2

INVESTMENT SECURITIES - Schedule of Gross Realized Gains (Losses) of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Gross gains on sales and calls	$ 181	$ 0	$ 181	$ 0
Gross losses on sales and calls	(147)	0	(147)	0
Gain on sale of available-for-sale debt securities	34	0	34	0
Proceeds from sales and calls	$ 17,307	$ 0	$ 17,312	$ 0

INVESTMENT SECURITIES - Gross U

INVESTMENT SECURITIES - Gross Unrealized Losses and Estimated Fair Values of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Available-for-sale debt securities:
Less than 12 months, unrealized losses	$ (800)	$ (4,223)
Less than 12 months, estimated fair value	49,695	66,857
12 months or longer, unrealized losses	(8,576)	(5,084)
12 months or longer, estimated fair value	66,024	30,165
Total, unrealized losses	(9,376)	(9,307)
Total, estimated fair value	115,719	97,022
Mortgage-backed securities
Available-for-sale debt securities:
Less than 12 months, unrealized losses	(284)	(1,337)
Less than 12 months, estimated fair value	24,979	9,888
12 months or longer, unrealized losses	(3,695)	(2,397)
12 months or longer, estimated fair value	22,439	13,407
Total, unrealized losses	(3,979)	(3,734)
Total, estimated fair value	47,418	23,295
SBA securities
Available-for-sale debt securities:
Less than 12 months, unrealized losses	(6)	(1)
Less than 12 months, estimated fair value	2,244	202
12 months or longer, unrealized losses	(125)	(131)
12 months or longer, estimated fair value	2,103	2,258
Total, unrealized losses	(131)	(132)
Total, estimated fair value	4,347	2,460
U.S. Treasury
Available-for-sale debt securities:
Less than 12 months, unrealized losses	0	(277)
Less than 12 months, estimated fair value	0	3,563
12 months or longer, unrealized losses	(676)	(423)
12 months or longer, estimated fair value	5,936	2,389
Total, unrealized losses	(676)	(700)
Total, estimated fair value	5,936	5,952
U.S. Agency
Available-for-sale debt securities:
Less than 12 months, unrealized losses	0	(51)
Less than 12 months, estimated fair value	0	474
12 months or longer, unrealized losses	(796)	(791)
12 months or longer, estimated fair value	6,227	5,709
Total, unrealized losses	(796)	(842)
Total, estimated fair value	6,227	6,183
Collateralized mortgage obligations
Available-for-sale debt securities:
Less than 12 months, unrealized losses	(440)	(2,169)
Less than 12 months, estimated fair value	18,514	35,331
12 months or longer, unrealized losses	(3,041)	(1,206)
12 months or longer, estimated fair value	23,299	6,029
Total, unrealized losses	(3,481)	(3,375)
Total, estimated fair value	41,813	41,360
Taxable municipals
Available-for-sale debt securities:
Less than 12 months, unrealized losses	0	(75)
Less than 12 months, estimated fair value	0	3,318
12 months or longer, unrealized losses	(171)	(136)
12 months or longer, estimated fair value	3,733	373
Total, unrealized losses	(171)	(211)
Total, estimated fair value	3,733	3,691
Tax exempt bank-qualified municipals
Available-for-sale debt securities:
Less than 12 months, unrealized losses	(70)	(313)
Less than 12 months, estimated fair value	3,958	14,081
12 months or longer, unrealized losses	(72)	0
12 months or longer, estimated fair value	2,287	0
Total, unrealized losses	(142)	(313)
Total, estimated fair value	$ 6,245	$ 14,081

INVESTMENT SECURITIES - Summary

INVESTMENT SECURITIES - Summary of Restricted Stock Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Federal Reserve Bank	$ 7,372	$ 7,318
Federal Home Loan Bank	8,625	7,225
Restricted stock investments	$ 15,997	$ 14,543

LOANS AND ALLOWANCE FOR CREDI_3

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2023	Jan. 01, 2023	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledge with FHLB under blanket lien	$ 1,310,000		$ 1,310,000
Loans pledged as collateral	1,913,353		1,913,353		$ 1,897,773
Loans held for sale, at lower of cost or fair value	1,062		1,062		9,027
Fair value of loans held for sale	1,100		1,100		9,600
Accrued interest receivable on loans receivable, net	5,700		5,700		5,700
Provision (reversal) for unfunded loan commitments	(135)	$ 146	(211)	$ 146
Reserve for unfunded loan commitments	$ 1,538	$ 950	$ 1,538	$ 950	$ 1,310	$ 1,673	$ 1,310	$ 804	$ 804
Minimum | CALIFORNIA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unemployment rate	4.52%		4.52%
Maximum | CALIFORNIA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unemployment rate	7.09%		7.09%
Federal Home Loan Bank Advances | Asset Pledged as Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	$ 833,700		$ 833,700
Federal Reserve Bank Advances | Asset Pledged as Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	$ 131,600		$ 131,600
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	Jun. 30, 2023	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 1,913,353			$ 1,897,773
Allowance for credit losses	(22,502)	$ (22,391)	$ (17,099)	(17,099)	$ (15,136)	$ (13,534)	$ (11,657)
Loans held for investment, net	1,890,851			1,880,674
Loans held for sale, at lower of cost or fair value	1,062			9,027
Net unearned fees	2,600			3,300
Net unearned discount	1,600			1,800
Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	275,250			239,067
Allowance for credit losses	(3,556)	(3,397)	(2,301)	(2,301)	(1,259)	(892)	(666)
Real Estate - Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	(15,097)	(14,699)		(11,691)	(10,985)	(10,012)	(8,441)
Real Estate - Other | 1-4 family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	150,150			144,322
Allowance for credit losses			(972)
Real Estate - Other | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	210,025			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	961,307			958,676
Allowance for credit losses			(9,388)
Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	312,845			331,644
Allowance for credit losses	(3,808)	(4,241)	(3,079)	(3,079)	(2,863)	(2,628)	(2,548)
Commercial & Industrial | PPP loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net	3,000			3,500
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	3,776			5,458
Allowance for credit losses	$ (41)	$ (54)	$ (28)	$ (28)	$ (29)	$ (2)	$ (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	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Term Loans Amortized Cost Basis by Origination Year
2023	$ 121,813		$ 121,813
2022	624,785		624,785
2021	486,446		486,446
2020	97,352		97,352
2019	98,884		98,884
Prior	276,081		276,081
Revolving Loans Amortized Cost Basis	204,847		204,847
Revolving Loans Amortized Cost Basis Converted to Term During the Period	3,145		3,145
Loans held for investment	1,913,353		1,913,353		$ 1,897,773
Term Loans Gross Charge-offs by Origination Year
2023			0
2022			0
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	(9)	$ (21)	(36)	$ (21)
Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
2023	5,360		5,360
2022	121,263		121,263
2021	130,351		130,351
2020	14,794		14,794
2019	1,940		1,940
Prior	683		683
Revolving Loans Amortized Cost Basis	859		859
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	275,250		275,250		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	0	0
Real Estate - Other
Term Loans Gross Charge-offs by Origination Year
Total	0	0	(12)	0
Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	26,666		26,666
2022	37,547		37,547
2021	21,907		21,907
2020	7,913		7,913
2019	5,119		5,119
Prior	16,653		16,653
Revolving Loans Amortized Cost Basis	34,345		34,345
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	150,150		150,150		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	10,494		10,494
2022	70,602		70,602
2021	72,765		72,765
2020	5,982		5,982
2019	27,624		27,624
Prior	21,723		21,723
Revolving Loans Amortized Cost Basis	835		835
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	210,025		210,025		218,606
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
Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	31,223		31,223
2022	313,539		313,539
2021	245,375		245,375
2020	60,300		60,300
2019	53,436		53,436
Prior	219,613		219,613
Revolving Loans Amortized Cost Basis	36,179		36,179
Revolving Loans Amortized Cost Basis Converted to Term During the Period	1,642		1,642
Loans held for investment	961,307		961,307		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 & Industrial
Term Loans Amortized Cost Basis by Origination Year
2023	47,155		47,155
2022	81,834		81,834
2021	16,000		16,000
2020	8,256		8,256
2019	10,755		10,755
Prior	16,758		16,758
Revolving Loans Amortized Cost Basis	130,584		130,584
Revolving Loans Amortized Cost Basis Converted to Term During the Period	1,503		1,503
Loans held for investment	312,845		312,845		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	(9)	(21)	(24)	(21)
Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	915		915
2022	0		0
2021	48		48
2020	107		107
2019	10		10
Prior	651		651
Revolving Loans Amortized Cost Basis	2,045		2,045
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	3,776		3,776		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	0	$ 0
Pass
Term Loans Amortized Cost Basis by Origination Year
2023	121,813		121,813
2022	622,064		622,064
2021	484,721		484,721
2020	95,798		95,798
2019	97,413		97,413
Prior	272,973		272,973
Revolving Loans Amortized Cost Basis	200,703		200,703
Revolving Loans Amortized Cost Basis Converted to Term During the Period	2,645		2,645
Loans held for investment	1,898,130		1,898,130		1,886,961
Pass | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
2023	5,360		5,360
2022	121,263		121,263
2021	130,351		130,351
2020	14,794		14,794
2019	1,940		1,940
Prior	586		586
Revolving Loans Amortized Cost Basis	859		859
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	275,153		275,153		238,965
Pass | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	26,666		26,666
2022	37,547		37,547
2021	21,907		21,907
2020	7,913		7,913
2019	5,119		5,119
Prior	16,653		16,653
Revolving Loans Amortized Cost Basis	33,346		33,346
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	149,151		149,151		143,284
Pass | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	10,494		10,494
2022	70,602		70,602
2021	72,765		72,765
2020	5,982		5,982
2019	27,624		27,624
Prior	21,723		21,723
Revolving Loans Amortized Cost Basis	835		835
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	210,025		210,025		218,606
Pass | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	31,223		31,223
2022	310,818		310,818
2021	245,375		245,375
2020	60,300		60,300
2019	53,436		53,436
Prior	217,617		217,617
Revolving Loans Amortized Cost Basis	36,179		36,179
Revolving Loans Amortized Cost Basis Converted to Term During the Period	1,642		1,642
Loans held for investment	956,590		956,590		956,649
Pass | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
2023	47,155		47,155
2022	81,834		81,834
2021	14,275		14,275
2020	6,702		6,702
2019	9,284		9,284
Prior	15,743		15,743
Revolving Loans Amortized Cost Basis	127,439		127,439
Revolving Loans Amortized Cost Basis Converted to Term During the Period	1,003		1,003
Loans held for investment	303,435		303,435		323,999
Pass | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	915		915
2022	0		0
2021	48		48
2020	107		107
2019	10		10
Prior	651		651
Revolving Loans Amortized Cost Basis	2,045		2,045
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	3,776		3,776		5,458
Special mention
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	2,721		2,721
2021	1,648		1,648
2020	1,554		1,554
2019	161		161
Prior	333		333
Revolving Loans Amortized Cost Basis	4,144		4,144
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	10,561		10,561		7,056
Special mention | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0		0
Special mention | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	999		999
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	999		999		999
Special mention | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0		0
Special mention | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	2,721		2,721
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	2,721		2,721		0
Special mention | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	1,648		1,648
2020	1,554		1,554
2019	161		161
Prior	333		333
Revolving Loans Amortized Cost Basis	3,145		3,145
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	6,841		6,841		6,057
Special mention | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0		0
Substandard
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	77		77
2020	0		0
2019	1,310		1,310
Prior	2,775		2,775
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	500		500
Loans held for investment	4,662		4,662		3,756
Substandard | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	97		97
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	97		97		102
Substandard | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0		39
Substandard | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0		0
Substandard | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	1,996		1,996
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	1,996		1,996		2,027
Substandard | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	77		77
2020	0		0
2019	1,310		1,310
Prior	682		682
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	500		500
Loans held for investment	2,569		2,569		1,588
Substandard | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0		$ 0
Doubtful
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Doubtful | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Doubtful | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Doubtful | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Doubtful | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Doubtful | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Doubtful | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Loss
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Loss | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Loss | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Loss | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Loss | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Loss | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	0		0
Loss | Consumer
Term Loans Amortized Cost Basis by Origination Year
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0
Loans held for investment	$ 0		$ 0

LOANS AND ALLOWANCE FOR CREDI_6

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Loans	$ 1,913,353	$ 1,897,773
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	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	0	0
Current
Financing Receivable, Past Due [Line Items]
Loans	1,913,353	1,897,773
Construction and Land Development
Financing Receivable, Past Due [Line Items]
Loans	275,250	239,067
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	275,250	239,067
Real Estate - Other | 1-4 family residential
Financing Receivable, Past Due [Line Items]
Loans	150,150	144,322
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	150,150	144,322
Real Estate - Other | Multifamily residential
Financing Receivable, Past Due [Line Items]
Loans	210,025	218,606
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	210,025	218,606
Real Estate - Other | Commercial real estate and other
Financing Receivable, Past Due [Line Items]
Loans	961,307	958,676
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	961,307	958,676
Commercial & Industrial
Financing Receivable, Past Due [Line Items]
Loans	312,845	331,644
Commercial & Industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial & Industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial & Industrial | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial & Industrial | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial & Industrial | Current
Financing Receivable, Past Due [Line Items]
Loans	312,845	331,644
Consumer
Financing Receivable, Past Due [Line Items]
Loans	3,776	5,458
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	$ 3,776	$ 5,458

LOANS AND ALLOWANCE FOR CREDI_7

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	$ 40	$ 41
Nonaccrual Loans with no ACL	0	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	0	0
Nonaccrual Loans with no ACL	0	0
Real Estate - Other | Commercial real estate and other
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	1	2
Nonaccrual Loans with no ACL	0	0
Commercial & Industrial
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	39	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	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jan. 01, 2023
Allowance for loan losses (ALL)
Balance, beginning of period	$ 22,391	$ 13,534	$ 17,099	$ 11,657
Provision (reversal of) for loan losses	120	1,650	398	3,500
Charge-offs	(9)	(21)	(36)	(21)
Recoveries	0	(27)	14	0
Net charge-offs	(9)	(48)	(22)	(21)
Balance, end of period	22,502	15,136	22,502	15,136
Reserve for unfunded loan commitments
Balance, beginning of period	1,673	804	1,310	804
(Reversal of) provision for unfunded commitment losses	(135)	146	(211)	146
Balance, end of period	1,538	950	1,538	950
Allowance for credit losses (ACL), end of period	24,040	16,086	24,040	16,086
Allowance for loan losses, reserves	22,502	15,136	22,502	15,136	$ 17,099
Loans evaluated for impairment:
Individually	40	1,770	40	1,770
Collectively	1,913,313	1,625,234	1,913,313	1,625,234
Loans evaluated for impairment	1,913,353	1,627,004	1,913,353	1,627,004
Specific reserves
Allowance for loan losses (ALL)
Balance, end of period	12	14	12	14
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	12	14	12	14
General reserves
Allowance for loan losses (ALL)
Balance, end of period	22,490	15,122	22,490	15,122
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	22,490	15,122	22,490	15,122
Construction and Land Development
Allowance for loan losses (ALL)
Balance, beginning of period	3,397	892	2,301	666
Provision (reversal of) for loan losses	159	367	374	593
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs	0	0	0	0
Balance, end of period	3,556	1,259	3,556	1,259
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	3,556	1,259	3,556	1,259	2,301
Loans evaluated for impairment:
Individually	0	0	0	0
Collectively	275,250	109,843	275,250	109,843
Loans evaluated for impairment	275,250	109,843	275,250	109,843
Construction and Land Development | Specific reserves
Allowance for loan losses (ALL)
Balance, end of period	0	0	0	0
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	0	0	0	0
Construction and Land Development | General reserves
Allowance for loan losses (ALL)
Balance, end of period	3,556	1,259	3,556	1,259
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	3,556	1,259	3,556	1,259
Real Estate - Other
Allowance for loan losses (ALL)
Balance, beginning of period	14,699	10,012	11,691	8,441
Provision (reversal of) for loan losses	398	974	435	2,544
Charge-offs	0	0	(12)	0
Recoveries	0	(1)	0	0
Net charge-offs	0	(1)	(12)	0
Balance, end of period	15,097	10,985	15,097	10,985
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	15,097	10,985	15,097	10,985
Loans evaluated for impairment:
Individually	1	1,669	1	1,669
Collectively	1,321,481	1,196,910	1,321,481	1,196,910
Loans evaluated for impairment	1,321,482	1,198,579	1,321,482	1,198,579
Real Estate - Other | Specific reserves
Allowance for loan losses (ALL)
Balance, end of period	0	14	0	14
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	0	14	0	14
Real Estate - Other | General reserves
Allowance for loan losses (ALL)
Balance, end of period	15,097	10,971	15,097	10,971
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	15,097	10,971	15,097	10,971
Commercial & Industrial
Allowance for loan losses (ALL)
Balance, beginning of period	4,241	2,628	3,079	2,548
Provision (reversal of) for loan losses	(424)	281	(393)	336
Charge-offs	(9)	(21)	(24)	(21)
Recoveries	0	(25)	14	0
Net charge-offs	(9)	(46)	(10)	(21)
Balance, end of period	3,808	2,863	3,808	2,863
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	3,808	2,863	3,808	2,863	3,079
Loans evaluated for impairment:
Individually	39	101	39	101
Collectively	312,806	316,870	312,806	316,870
Loans evaluated for impairment	312,845	316,971	312,845	316,971
Commercial & Industrial | Specific reserves
Allowance for loan losses (ALL)
Balance, end of period	12	0	12	0
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	12	0	12	0
Commercial & Industrial | General reserves
Allowance for loan losses (ALL)
Balance, end of period	3,796	2,863	3,796	2,863
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	3,796	2,863	3,796	2,863
Consumer
Allowance for loan losses (ALL)
Balance, beginning of period	54	2	28	2
Provision (reversal of) for loan losses	(13)	28	(18)	27
Charge-offs	0	0	0	0
Recoveries	0	(1)	0	0
Net charge-offs	0	(1)	0	0
Balance, end of period	41	29	41	29
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	41	29	41	29	28
Loans evaluated for impairment:
Individually	0	0	0	0
Collectively	3,776	1,611	3,776	1,611
Loans evaluated for impairment	3,776	1,611	3,776	1,611
Consumer | Specific reserves
Allowance for loan losses (ALL)
Balance, end of period	0	0	0	0
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	0	0	0	0
Consumer | General reserves
Allowance for loan losses (ALL)
Balance, end of period	41	29	41	29
Reserve for unfunded loan commitments
Allowance for loan losses, reserves	41	29	41	29
Adoption of ASU 2016-13
Allowance for loan losses (ALL)
Balance, beginning of period	0	0	5,027	0
Reserve for unfunded loan commitments
Balance, beginning of period	0	$ 0	439	$ 0
Allowance for loan losses, reserves					5,027
Adoption of ASU 2016-13 | Construction and Land Development
Allowance for loan losses (ALL)
Balance, beginning of period	0		881
Reserve for unfunded loan commitments
Allowance for loan losses, reserves					881
Adoption of ASU 2016-13 | Real Estate - Other
Allowance for loan losses (ALL)
Balance, beginning of period	0		2,983
Reserve for unfunded loan commitments
Allowance for loan losses, reserves
Adoption of ASU 2016-13 | Commercial & Industrial
Allowance for loan losses (ALL)
Balance, beginning of period	0		1,132
Reserve for unfunded loan commitments
Allowance for loan losses, reserves					1,132
Adoption of ASU 2016-13 | Consumer
Allowance for loan losses (ALL)
Balance, beginning of period	$ 0		$ 31
Reserve for unfunded loan commitments
Allowance for loan losses, reserves					$ 31

TRANSFERS AND SERVICING OF FI_3

TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Servicing Assets at Fair Value [Line Items]
Loans serviced	$ 67,900		$ 67,900			$ 59,400
Loans serviced with related servicing asset	40,200		40,200			30,300
Servicing asset	683	$ 371	683	$ 371	$ 684	514	$ 162	$ 170
Loans sold	1,000	10,700	10,900	11,200
Gain on sale of loans	77	$ 711	874	$ 760
Servicing asset fair value	$ 697		$ 697			$ 475
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	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance, beginning of period	$ 684	$ 162	$ 514	$ 170
Additions	24	237	216	251
Amortization	(25)	(28)	(47)	(50)
Balance, end of period	683	371	683	371
Accelerated amortization	$ 0	$ 23	$ 3	$ 33

TRANSFERS AND SERVICING OF FI_5

TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Significant Valuation Assumptions for the SBA Servicing Asset (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Minimum
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	9.50%	13.90%
Prepayment speed (percent)	9.80%	9.70%
Maximum
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	25.80%	34.30%
Prepayment speed (percent)	44.60%	41.20%
Weighted average
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	15.10%	19.10%
Prepayment speed (percent)	16.70%	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	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Transfers and Servicing [Abstract]
Contractually specified fees	$ 104	$ 38	$ 196	$ 85
Amortization	(25)	(28)	(47)	(50)
Net servicing fees	$ 79	$ 10	$ 149	$ 35

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 37,803			$ 37,803		$ 37,803
Goodwill impairment		$ 0				$ 0
Changes to goodwill	$ 0		$ 0	$ 0	$ 0
Weighted-average remaining amortization period for core deposit intangibles	6 years 7 months 6 days			6 years 7 months 6 days
Minimum
Finite-Lived Intangible Assets [Line Items]
Core deposit intangibles, amortization period	5 months 1 day			5 months 1 day
Maximum
Finite-Lived Intangible Assets [Line Items]
Core deposit intangibles, amortization period	8 years 4 months 2 days			8 years 4 months 2 days

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Changes in Core Deposit Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Roll Forward]
Gross balance, beginning of period	$ 4,185	$ 4,185	$ 4,185	$ 4,185
Additions	0	0	0	0
Gross balance, end of period	4,185	4,185	4,185	4,185
Accumulated amortization:
Balance, beginning of period	(2,692)	(2,262)	(2,601)	(2,163)
Amortization	(90)	(99)	(181)	(198)
Balance, end of period	(2,782)	(2,361)	(2,782)	(2,361)
Future estimated amortization expense	$ 1,403	$ 1,824	$ 1,403	$ 1,824

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 174
2024	271
2025	248
2026	227
2027	205
Thereafter	278
Future estimated amortization expense	$ 1,403	$ 1,824

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Deposit Liability [Line Items]
ICS deposits	$ 256.3	$ 65.5
Percent of total deposits	12.90%	3.40%
Time deposits exceeding FDIC insurance limit	$ 69.3	$ 84.6
Brokered time deposits	98.4	20.7
Asset Pledged as Collateral | Letter of Credit
Deposit Liability [Line Items]
Collateralized deposits	$ 45.7	$ 14.4

DEPOSITS - Scheduled Maturities

DEPOSITS - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deposits [Abstract]
Remainder of 2023	$ 134,535
2024	30,306
2025	20,404
2026	3,941
2027	85
Time deposits	$ 189,271	$ 129,779

BORROWING ARRANGEMENTS - Summar

BORROWING ARRANGEMENTS - Summary of Outstanding Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
FHLB advances	$ 15,000	$ 50,000
Subordinated notes	17,818	17,770
Total borrowings	$ 32,818	$ 67,770

BORROWING ARRANGEMENTS - Narrat

BORROWING ARRANGEMENTS - Narrative (Details) $ in Thousands	May 28, 2020 USD ($)	Jun. 30, 2023 USD ($) lineOfCredit	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
FHLB secured line of credit		$ 468,500
FHLB secured line of credit, amount available		405,000
Loans		1,913,353	$ 1,897,773
FHLB advances		$ 15,000	$ 50,000
FHLB advances, interest rate		5.35%	4.65%
Federal Reserve secured line of credit		$ 141,800
Held-to-maturity debt securities pledged as collateral		53,782	$ 53,946
Discount window borrowings		0	0
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	$ 182	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%
Overnight Unsecured Line of Credit | Line of Credit
Debt Instrument [Line Items]
Number of overnight unsecured credit lines | lineOfCredit		2
Overnight unsecured credit lines		$ 60,000
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		48,500
Loans		833,700
Asset Pledged as Collateral | Federal Reserve Bank Advances
Debt Instrument [Line Items]
Loans		131,600
Held-to-maturity debt securities pledged as collateral		$ 53,800	$ 0

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - shares	3 Months Ended
	Jun. 30, 2023	Jun. 14, 2023
Equity [Abstract]
Share repurchase plan, shares authorized (in shares)		550,000
Share repurchase plan, percent of outstanding shares authorized		3%
Shares repurchase plan, shares repurchased (in shares)	0

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	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ 6,718	$ (736)	$ 14,942	$ 710
Weighted average common shares outstanding - basic (in shares)	18,287,595	17,808,742	18,172,083	17,765,991
Dilutive effect of outstanding:
Stock options and unvested stock grants (in shares)	308,633	393,112	440,861	406,292
Weighted average common shares outstanding - diluted (in shares)	18,596,228	18,201,854	18,612,944	18,172,283
Earnings (loss) per common share - basic (in dollars per share)	$ 0.37	$ (0.04)	$ 0.82	$ 0.04
Earnings (loss) per common share - diluted (in dollars per share)	$ 0.36	$ (0.04)	$ 0.80	$ 0.04

EARNINGS PER SHARE (_EPS_) - Na

EARNINGS PER SHARE (“EPS”) - Narrative (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
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		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)		129,877	173,946
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)		6,547	23,808

RELATED PARTY TRANSACTIONS - Re

RELATED PARTY TRANSACTIONS - Related Party Loans Outstanding (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 1,897,773
Balance at end of period	$ 1,913,353		1,913,353
Related Party
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	8,052	$ 10,233	8,073	$ 10,259
New credit granted	0	0	0	0
Repayments	(320)	(1,157)	(341)	(1,183)
Balance at end of period	$ 7,732	$ 9,076	$ 7,732	$ 9,076

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Interests deposits	$ 69,995		$ 69,995		$ 26,465
Director
Related Party Transaction [Line Items]
Interests deposits	19,600		19,600		$ 4,700
Director | Launchpad | Venture Capital Fund
Related Party Transaction [Line Items]
Committed investment			2,000
Capital contributions			604
Related Party
Related Party Transaction [Line Items]
Lease expense	11	$ 10	22	$ 21
Future minimum lease payments	$ 172		$ 172

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Outstanding Financial Commitments Representing Potential Credit Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments to extend credit	$ 518,734	$ 596,349
Letters of credit issued to customers	4,912	4,794
Commitments to contribute capital to other equity investments	3,829	6,041
Outstanding financial commitments	$ 527,475	$ 607,184

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2016
Other Commitments [Line Items]
Deferred compensation agreement, benefit term					10 years	10 years
Deferred compensation agreement, expense	$ 79	$ 95	$ 157	$ 182
Minimum
Other Commitments [Line Items]
Deferred compensation agreement, annual benefit					$ 20	$ 20
Maximum
Other Commitments [Line Items]
Deferred compensation agreement, annual benefit					$ 75	$ 75

STOCK-BASED COMPENSATION PLAN -

STOCK-BASED COMPENSATION PLAN - Narrative (Details) - USD ($) $ in Thousands			1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 01, 2023	Oct. 01, 2021	Jun. 30, 2021	Oct. 31, 2020	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Apr. 30, 2020
Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unexercised stock options (in shares)					288,338	368,268	288,338	368,268	292,338	326,868	459,768	536,651
Remaining assumed stock options term							3 years 8 months 12 days	4 years 9 months 18 days
Unrecognized compensation cost					$ 113		$ 113
Intrinsic value of stock options exercised					$ 29	$ 536	$ 78	$ 865
Granted (in shares)					0	0	0	0
Stock Options | BSCA Merger
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unexercised stock options (in shares)		90,731
Unexercised stock options, vested (in shares)		65,261
Unexercised stock options, unvested (in shares)		25,470
Stock Options | Minimum | BSCA Merger
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Remaining assumed stock options term		2 years 4 months 24 days
Stock Options | Maximum | BSCA Merger
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Remaining assumed stock options term		9 years 2 months 12 days
Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost					$ 7,900		$ 7,900
Weighted-average period for recognition of unrecognized compensation cost							2 years 6 months
Grant date fair value of vested units					383	$ 269	$ 4,000	$ 342
Tax benefit					$ 8	$ (6)	$ (644)	$ (11)
Unvested stock outstanding subject to financial performance conditions (in shares)					778,423	1,139,872	778,423	1,139,872	783,174	959,337	1,138,433	1,010,501
Stock Options and Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation cost					$ 1,100	$ 1,000	$ 2,800	$ 1,800
Performance-Based Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Accelerated vesting (in shares)	275,171
Accelerated stock-based compensation					$ 0		$ 632
Unvested stock outstanding subject to financial performance conditions (in shares)					0		0
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	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Shares
Outstanding at beginning of period (in shares)	292,338	459,768	326,868	536,651
Granted (in shares)	0	0	0	0
Exercised (in shares)	(4,000)	(69,600)	(10,950)	(110,600)
Forfeited (in shares)	0	(21,900)	(27,580)	(57,783)
Outstanding at end of period (in shares)	288,338	368,268	288,338	368,268
Options exercisable (in shares)	260,638	306,393	260,638	306,393
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 9.22	$ 9.35	$ 9.53	$ 9.36
Granted (in dollars per share)	0	0	0	0
Exercised (in dollars per share)	6.61	7.24	8.53	7.29
Forfeited (in dollars per share)	0	12.44	12.79	12.03
Outstanding at end of period (in dollars per share)	9.26	9.56	9.26	9.56
Options exercisable (in dollars per share)	$ 8.97	$ 9.07	$ 8.97	$ 9.07
Weighted Average Remaining Contractual Term (Year)
Outstanding at end of period (years)			3 years 8 months 12 days	4 years 9 months 18 days
Options exercisable (years)			3 years 4 months 24 days	4 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding at end of period	$ 1,286	$ 2,037	$ 1,286	$ 2,037
Options exercisable	$ 1,238	$ 1,844	$ 1,238	$ 1,844

STOCK-BASED COMPENSATION PLAN_3

STOCK-BASED COMPENSATION PLAN - Summary of Changes in Outstanding Unvested Restricted Stock Units (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock Units
Restricted Shares
Unvested at beginning of period (in shares)	783,174	1,138,433	959,337	1,010,501
Granted (in shares)	21,324	60,586	192,258	247,507
Vested (in shares)	(26,075)	(19,410)	(373,172)	(25,035)
Forfeited (in shares)	0	(39,737)	0	(93,101)
Unvested at end of period (in shares)	778,423	1,139,872	778,423	1,139,872
Weighted Average Grant Date Fair Value
Unvested at beginning of period (in dollars per share)	$ 13.18	$ 11.40	$ 11.55	$ 10.55
Granted (in dollars per share)	15.16	15.04	16.73	15.29
Vested (in dollars per share)	14.67	13.86	10.80	13.66
Forfeited (in dollars per share)	0	13.71	0	11.02
Unvested at end of period (in dollars per share)	$ 13.19	$ 11.47	$ 13.19	$ 11.47
Performance-Based Restricted Stock Units
Restricted Shares
Vested (in shares)			(275,171)
Unvested at end of period (in shares)	0		0
Weighted Average Grant Date Fair Value
Vested (in dollars per share)			$ 9.29

REGULATORY MATTERS - Narrative

REGULATORY MATTERS - Narrative (Details)	Jun. 30, 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	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 279,038	$ 260,788
Total Capital (to Risk-Weighted Assets), Actual Ratio	0.1298	0.1197
Total Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 172,020	$ 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	$ 215,025	$ 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	$ 259,098	$ 242,379
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio	0.1205	0.1113
Tier 1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 129,015	$ 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	$ 172,020	$ 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	$ 259,098	$ 242,379
CET1 Capital (to Risk-Weighted Assets), Actual Ratio	0.1205	0.1113
CET1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 96,761	$ 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	$ 139,766	$ 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	$ 259,098	$ 242,379
Tier 1 Capital (to Average Assets), Actual Ratio	0.1147	0.1062
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Adequately Capitalized	$ 90,325	$ 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	$ 112,907	$ 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	Jun. 30, 2023	Dec. 31, 2022
Financial assets:
Debt securities available-for-sale, at fair value	$ 119,875	$ 112,580
Debt securities held to maturity	48,563	47,906
Loans held for sale	1,100	9,600
Accrued interest receivable	5,700	5,700
Level 1 | Carrying Value
Financial assets:
Cash and due from banks	34,632	60,295
Fed funds and interest-bearing balances	69,995	26,465
Level 1 | Estimated Fair Value
Financial assets:
Cash and due from banks	34,632	60,295
Fed funds and interest-bearing balances	69,995	26,465
Level 2 | Carrying Value
Financial assets:
Debt securities available-for-sale, at fair value	119,875	112,580
Debt securities held to maturity	53,782	53,946
Loans held for sale	1,062	9,027
Restricted stock, at cost	15,997	14,543
Other equity securities	9,074	6,974
Accrued interest receivable	6,604	6,868
Financial liabilities:
Deposits	1,980,908	1,931,905
Borrowings	32,818	67,770
Accrued interest payable	298	215
Level 2 | Estimated Fair Value
Financial assets:
Debt securities available-for-sale, at fair value	119,875	112,580
Debt securities held to maturity	48,563	47,906
Loans held for sale	1,129	9,616
Restricted stock, at cost	15,997	14,543
Other equity securities	9,074	6,974
Accrued interest receivable	6,604	6,868
Financial liabilities:
Deposits	1,979,468	1,929,947
Borrowings	32,435	67,387
Accrued interest payable	298	215
Level 3 | Carrying Value
Financial assets:
Loans held for investment, net	1,890,851	1,880,674
Level 3 | Estimated Fair Value
Financial assets:
Loans held for investment, net	$ 1,844,735	$ 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	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	$ 119,875	$ 112,580
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	47,418	23,295
SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	6,672	7,872
U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	5,936	5,952
U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	6,227	6,183
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	42,853	44,423
Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	4,270	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, at fair value	6,499	20,627
Recurring Fair Value Measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	119,875	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, at fair value	47,418	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, at fair value	6,672	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, at fair value	5,936	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, at fair value	6,227	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, at fair value	42,853	44,423
Recurring Fair Value Measurements | Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	4,270	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, at fair value	6,499	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, at fair value	0	0
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, at fair value	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, at fair value	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, at fair value	0	0
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, at fair value	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, at fair value	0	0
Level 1 | Recurring Fair Value Measurements | Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	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, at fair value	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, at fair value	119,875	112,580
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, at fair value	47,418	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, at fair value	6,672	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, at fair value	5,936	5,952
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, at fair value	6,227	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, at fair value	42,853	44,423
Level 2 | Recurring Fair Value Measurements | Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	4,270	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, at fair value	6,499	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, at fair value	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, at fair value	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, at fair value	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, at fair value	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, at fair value	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, at fair value	0	0
Level 3 | Recurring Fair Value Measurements | Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale, at fair value	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, at fair value	$ 0	$ 0