Southern California Bancorp (BCAL) 10-Q 12 Aug 24 2024 Q2 Quarterly report Financial data

COVER

COVER - shares	6 Months Ended
	Jun. 30, 2024	Jul. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-41684
Entity Registrant Name	California BanCorp \ CA
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
Entity Information, Former Legal or Registered Name	Southern California Bancorp
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		18,547,352
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001795815
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 29,153	$ 33,008
Federal funds and interest-bearing balances	75,580	53,785
Total cash and cash equivalents	104,733	86,793
Debt securities available-for-sale, at fair value (amortized cost of $132,862 and $136,366 at June 30, 2024 and December 31, 2023)	123,653	130,035
Debt securities held-to-maturity, at amortized cost (fair value of $48,476 and $50,432 at June 30, 2024 and December 31, 2023)	53,449	53,616
Loans held for sale, at lower of cost or fair value	6,982	7,349
Loans held for investment	1,877,617	1,957,442
Allowance for credit losses on loans	(23,788)	(22,569)
Loans held for investment, net	1,853,829	1,934,873
Restricted stock, at cost	16,898	16,055
Premises and equipment, net	12,741	13,270
Right-of-use asset	8,298	9,291
Goodwill	37,803	37,803
Core deposit intangible, net	1,065	1,195
Bank owned life insurance	39,445	38,918
Deferred taxes, net	11,080	11,137
Accrued interest receivable and other assets	23,717	19,917
Total assets	2,293,693	2,360,252
LIABILITIES
Noninterest-bearing demand	666,606	675,098
Interest-bearing NOW accounts	355,994	381,943
Money market and savings accounts	660,808	636,685
Time deposits	252,454	249,830
Total deposits	1,935,862	1,943,556
Borrowings	42,913	102,865
Operating lease liability	10,931	12,117
Accrued interest payable and other liabilities	10,768	13,562
Total liabilities	2,000,474	2,072,100
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, 2024 and December 31, 2023	0	0
Common stock - 50,000,000 shares authorized, no par value; issued and outstanding 18,547,352 and 18,369,115 at June 30, 2024 and December 31, 2023	224,006	222,036
Retained earnings	75,700	70,575
Accumulated other comprehensive loss - net of taxes	(6,487)	(4,459)
Total shareholders’ equity	293,219	288,152
Total liabilities and shareholders’ equity	$ 2,293,693	$ 2,360,252

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Debt securities available-for-sale, at fair value, amortized cost	$ 132,862	$ 136,366
Debt securities held-to-maturity, at amortized cost, fair value	$ 48,476	$ 50,432
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)	18,547,352	18,369,115
Common stock outstanding (in shares)	18,547,352	18,369,115

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 29,057	$ 27,987	$ 57,641	$ 55,006
Interest on debt securities	1,229	833	2,442	1,564
Interest on tax-exempted debt securities	306	456	612	943
Interest on deposits at other financial institutions	899	765	1,749	1,509
Interest and dividends on other interest-earning assets	358	219	669	447
Total interest and dividend income	31,849	30,260	63,113	59,469
INTEREST EXPENSE
Interest on NOW, money market and savings accounts	7,039	4,730	13,809	7,633
Interest on time deposits	3,145	1,531	6,166	2,506
Interest on borrowings	658	573	1,637	1,012
Total interest expense	10,842	6,834	21,612	11,151
Net interest income	21,007	23,426	41,501	48,318
Provision for (reversal of) credit losses	2,893	(15)	2,562	187
Net interest income after provision for (reversal of) credit losses	18,114	23,441	38,939	48,131
NONINTEREST INCOME
Gain on sale of loans	0	77	415	885
Income from bank owned life insurance	266	232	527	455
Servicing and related (expense) income on loans, net	(5)	87	68	162
Gain on sale of available-for-sale debt securities	0	34	0	34
Loss on sale and disposal of fixed assets	(19)	0	(19)	0
Other charges and fees	359	136	498	161
Total noninterest income	1,169	1,096	2,582	2,666
NONINTEREST EXPENSE
Salaries and employee benefits	8,776	9,674	18,386	19,915
Occupancy and equipment	1,445	1,527	2,897	2,974
Data processing and communications	1,186	1,176	2,336	2,232
Legal, audit and professional	557	667	1,073	1,452
Regulatory assessments	347	367	734	819
Director and shareholder expenses	229	214	432	427
Merger and related expenses	491	0	1,040	0
Core deposit intangible amortization	65	90	130	181
Other real estate owned expenses	4,935	0	5,023	0
Other expenses	974	892	1,935	1,626
Total noninterest expense	19,005	14,607	33,986	29,626
Income before income taxes	278	9,930	7,535	21,171
Income tax expense	88	3,212	2,410	6,229
Net income	$ 190	$ 6,718	$ 5,125	$ 14,942
Earnings per share:
Basic (in dollars per share)	$ 0.01	$ 0.37	$ 0.28	$ 0.82
Diluted (in dollars per share)	$ 0.01	$ 0.36	$ 0.27	$ 0.80
Service charges and fees on deposit accounts
NONINTEREST INCOME
Revenue	$ 378	$ 333	$ 740	$ 595
Interchange and ATM income
NONINTEREST INCOME
Revenue	$ 190	$ 197	$ 353	$ 374

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 190	$ 6,718	$ 5,125	$ 14,942
Unrealized loss on securities available for sale:
Change in net unrealized loss	(493)	(2,168)	(2,878)	(208)
Reclassification of gain recognized in net income	0	(34)	0	(34)
Unrealized loss on securities available for sale	(493)	(2,202)	(2,878)	(242)
Income tax benefit:
Change in net unrealized loss	(145)	(641)	(850)	(113)
Reclassification of gain recognized in net income	0	(10)	0	(10)
Income tax expense (benefit)	(145)	(651)	(850)	(123)
Total other comprehensive loss, net of tax	(348)	(1,551)	(2,028)	(119)
Total comprehensive (loss) income, net of tax	$ (158)	$ 5,167	$ 3,097	$ 14,823

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Adoption of ASU 2016-13	As Reported under CECL	Common Stock	Common Stock As Reported under CECL	Retained Earnings	Retained Earnings Adoption of ASU 2016-13	Retained Earnings As Reported under CECL	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss As Reported under CECL
Beginning balance (in shares) at Dec. 31, 2022				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			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	14,942					14,942
Other comprehensive loss	(119)								(119)
Ending balance (in shares) at Jun. 30, 2023				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			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	6,718					6,718
Other comprehensive loss	(1,551)								(1,551)
Ending balance (in shares) at Jun. 30, 2023				18,296,365
Ending balance at Jun. 30, 2023	$ 273,749			$ 220,702		59,607			(6,560)
Beginning balance (in shares) at Dec. 31, 2023	18,369,115			18,369,115
Beginning balance at Dec. 31, 2023	$ 288,152			$ 222,036		70,575			(4,459)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 1,891			$ 1,891
Stock options exercised (in shares)	81,400			81,400
Stock options exercised	$ 706			$ 706
Restricted stock units vested (in shares)				138,788
Repurchase of shares in settlement of restricted stock units (in shares)				(41,951)
Repurchase of shares in settlement of restricted stock units	(627)			$ (627)
Net income	5,125					5,125
Other comprehensive loss	$ (2,028)								(2,028)
Ending balance (in shares) at Jun. 30, 2024	18,547,352			18,547,352
Ending balance at Jun. 30, 2024	$ 293,219			$ 224,006		75,700			(6,487)
Beginning balance (in shares) at Mar. 31, 2024				18,527,178
Beginning balance at Mar. 31, 2024	292,499			$ 223,128		75,510			(6,139)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 996			$ 996
Stock options exercised (in shares)	0
Restricted stock units vested (in shares)				28,704
Repurchase of shares in settlement of restricted stock units (in shares)				(8,530)
Repurchase of shares in settlement of restricted stock units	$ (118)			$ (118)
Net income	190					190
Other comprehensive loss	$ (348)								(348)
Ending balance (in shares) at Jun. 30, 2024	18,547,352			18,547,352
Ending balance at Jun. 30, 2024	$ 293,219			$ 224,006		$ 75,700			$ (6,487)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
OPERATING ACTIVITIES
Net income	$ 5,125	$ 14,942
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation on premises and equipment	738	801
Core deposit intangible amortization	130	181
Amortization of (discounts) premiums of debt securities	(274)	235
Gain on sale of loans	(415)	(885)
Loss on sale and disposal of fixed assets	19	0
Loans originated for sale	(5,956)	(2,954)
Proceeds from sales of and principal collected on loans held for sale	6,778	11,887
Provision for credit losses	2,562	187
Deferred income tax expense	907	770
Stock-based compensation	1,891	2,771
Increase in cash surrender value of bank owned life insurance	(527)	(455)
Gain on sale of available-for-sale debt securities	0	(34)
Loss on sale of other real estate owned	4,783	0
Accretion of net discounts and deferred loan fees	(990)	(922)
Net decrease (increase) in other items	(6,409)	3,899
Net cash provided by operating activities	8,362	30,423
INVESTING ACTIVITIES
Proceeds from sale of debt securities available for sale	0	17,307
Proceeds from maturities and paydowns of debt securities available for sale	5,983	4,029
Purchases of debt securities available for sale	(2,041)	(28,736)
Net change in stock investments	(1,046)	(3,530)
Net repayment (funding) of loans	65,750	(15,028)
Proceeds from sale of loans held for investment	456	50
Proceeds from sale of other real estate owned	8,327	0
Purchases of premises and equipment	(227)	(283)
Net cash provided by (used in) investing activities	77,202	(26,191)
FINANCING ACTIVITIES
Net (decrease) increase in deposits	(7,703)	48,984
Proceeds from Federal Home Loan Bank advances	0	15,000
Repayment of Federal Home Loan Bank advances	(60,000)	(50,000)
Proceeds from exercise of stock options	706	93
Repurchase of common shares	(627)	(442)
Net cash (used in) provided by financing activities	(67,624)	13,635
Net change in cash and cash equivalents	17,940	17,867
Cash and cash equivalents at beginning of period	86,793	86,760
Cash and cash equivalents at end of period	104,733	104,627
Supplemental Disclosures of Cash Flow Information:
Interest paid	20,763	11,020
Taxes paid	4,510	0
Lease liability arising from obtaining right-of-use assets	105	405
Loans transferred to other real estate owned	13,004	0
Net impact of adoption of ASU 2016-13 on retained earnings	$ 0	$ 3,851

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
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 California BanCorp (formerly 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 California Bank of Commerce, N.A. (formerly Bank of Southern California, N.A.) under the Bank Holding Company Act of 1956, as amended. On May 15, 2020, the California BanCorp (formerly Southern California Bancorp) completed a reorganization whereby California Bank of Commerce, N.A. became a wholly-owned subsidiary of the Company. California Bank of Commerce, 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, to Bank of Southern California, N.A. in 2010. Bank of Southern California, N.A. and to California Bank of Commerce, N.A. on July 31, 2024. California Bank of Commerce, N.A. has a wholly-owned subsidiary, BCAL OREO1, LLC, which was incorporated on February 14, 2024. BCAL OREO1, LLC is used for holding other real estate owned and other assets acquired by foreclosure. 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 the new California BanCorp and California Bank of Commerce, N.A. collectively and on a consolidated basis. References herein to “California BanCorp,” or the “holding company” refer to California BanCorp on a stand-alone basis. References to the “Bank” refer to California Bank of Commerce, 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 14 branch offices serving Southern and Northern California. 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. Merger with California Bancorp On January 30, 2024, the Southern California Bancorp announced the execution of a definitive merger agreement with the former California BanCorp, the holding company for California Bank of Commerce, pursuant to which the former California BanCorp would merge into Southern California Bancorp in an all-stock merger. The merger received all required regulatory on May 13, 2024, shareholder approvals on July 17, 2024 and closed on July 31, 2024. Shareholders of Southern California Bancorp also approved a change of the Company’s name from Southern California Bancorp to California BanCorp. Refer to Note 15 - Subsequent Events for additional information. The new California BanCorp retains the banking offices of both banks, adding California Bank of Commerce’s one full-service bank branch and its four loan production offices in the Bay Area to the Bank’s 13 full-service bank branches located throughout the Southern California region. 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 audited consolidated financial statements and notes included in Item 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. 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, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Principles of Consolidation The consolidated financial statements include the accounts of the Company, including its wholly owned subsidiary, the Bank and the Bank’s wholly-owned subsidiary, BCAL OREO1, LLC. 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. If the measurement indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. In addition, ASU 2016-13 modifies the other-than-temporary impairment (“OTTI”) model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for reversal of credit impairments in future periods based on improvements in credit. The Company elected to account for accrued interest receivable separately from the amortized cost of loans and investment securities. The Company elected the CECL phase-in option provided by regulatory capital rules, which delays the impact of CECL on regulatory capital over a three-year transition period. Concurrent with the adoption of ASU 2016-13, the Company adopted ASU 2022-02, Financial Instruments—Credit Losses (Topic 326) Troubled Debt Restructurings (“TDR”) and Vintage Disclosures, which eliminated TDR accounting prospectively for all loan modifications occurring on or after January 1, 2023 and added additional disclosure requirements for current period gross charge-offs by year of origination. It also prescribes guidance for reporting modifications for certain loan refinancings and restructurings made to borrowers experiencing financial difficulty. Loans that were considered a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the superseded TDR accounting guidance until the loan is paid off, liquidated, or subsequently modified. The Company adopted ASU 2016-13 using the modified retrospective transition approach, and recorded a net decrease of $3.9 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment, reflecting an initial adjustment to the ACL of $5.5 million, which included a $5.0 million increase in the ACL - loans and a $439 thousand increase in reserve for unfunded commitments, net of related deferred tax assets arising from temporary differences of $1.6 million, commonly referred to as the “Day 1” adjustment. This Day 1 adjustment reflects the development of the CECL models to estimate lifetime expected credit losses on the loans held for investment and unfunded commitments primarily using a lifetime loss methodology and management’s current expectation of future economic conditions. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with the probable incurred loss accounting standards. As permitted under ASC 326, the Company elected to maintain the same loan segments that it previously identified prior to adoption of CECL. At adoption of CECL and continuing through June 30, 2024, 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 January 1, 2024, the Company adopted 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. The Company did not have any such common control leases, so adoption of this standard had no impact to the consolidated financial statements. On January 1, 2024, the Company adopted ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, a consensus of the Emerging Issues Task Force. The amendments in this update allow the option for an entity to apply the proportional amortization method of accounting to other equity investments that are made for the primary purpose of receiving tax credits or other income tax benefits, if certain conditions are met. Prior to this update, the application of the proportional amortization method of accounting was only limited to low-income housing tax credit (“LIHTC”) structured investments. The proportional amortization method of accounting results in the amortization of applicable investments, as well as the related income tax credits or other income tax benefits received, being presented on a single line in the consolidated statements of income, income tax expense. Under this update, an entity has the option to apply the proportional amortization method of accounting to applicable investments on a tax-credit-program-by-tax-credit-program basis. In addition, the amendments in this update require that all tax equity investments accounted for using the proportional amortization method use the delayed equity contribution guidance in paragraph 323-740-25-3, requiring a liability be recognized for delayed equity contributions that are unconditional and legally binding or for equity contributions that are contingent upon a future event when that contingent event becomes probable. Under this update, LIHTC structured investments for which the proportional amortization method is not applied can no longer be accounted for using the delayed equity contribution guidance. Further, this update specifies that impairment of LIHTC structure investments not accounted for using the equity method must apply the impairment guidance in Subtopic 323-10 - Investments - Equity Method and Joint Ventures - Overall. This update also clarifies that for LIHTC structure investments not accounted for under the proportional amortization method or the equity method, an entity shall account for them under Topic 321 - Investments - Equity Securities. The amendments in this update also require additional disclosures in interim and annual periods concerning investments for which the proportional amortization method is applied, including (i) the nature of tax equity investments, and (ii) the effect of tax equity investments and related income tax credits and other income tax benefits on the financial position and results of operations. The provisions of this update are effective for the Company for interim and annual periods beginning December 15, 2023. Early adoption is permitted. The adoption of this standard 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 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. 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 CECL as of the date of the consolidated balance sheets. The ACL is estimated collectively for groups of debt securities with similar risk characteristics, and is determined at the individual security level when the Company deems a security to no longer possess shared risk characteristics. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. For debt securities where the Company has reason to believe the credit loss exposure is remote, a zero credit loss assumption is applied. Such debt securities were municipal securities, and historically have had limited credit loss experience. The Company does not anticipate any credit related losses in this investment portfolio. Changes in the ACL on held-to-maturity debt securities are recorded as a component of the provision for (reversal of) credit losses in the consolidated statements of income. 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 provision for (reversal of) credit losses in the consolidated statements of income. The portion of decline in fair value below the amortized cost basis not attributable to credit is recognized through other comprehensive income (loss), net of applicable taxes. 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 Allowance for Credit Losses - Off-Balance Sheet Credit Exposure). The ACL on loans held for investment represents the portion of the loans’ amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loans’ contractual life. Amortized cost does not include accrued interest, which management elected to exclude from the estimate of expected credit losses. Provision for credit losses for loans held for investment is included in provision for (reversal of) credit losses in the consolidated statements of income. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Subsequent recoveries, if any, are credited to the ACL. Credit losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income. Estimating expected credit losses requires management to use relevant forward-looking information, including the use of reasonable and supportable forecasts. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. The Company measures the ACL using a discounted cash flow methodology, which utilizes pool-level assumptions and cash flow projections on individual loan basis, which is then aggregated at the portfolio segment level and supplemented by a qualitative reserve that is applied to each portfolio segment level. The Company’s loan portfolio consists of the following segments, based on regulatory call codes and related risk ratings: Construction and land development loans are typically adjustable rate residential and commercial construction loans to builders, developers and 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 commercial real estate (“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 the loan segment level to derive the segment level quantitative loss rates. For prepayment and curtailment rates, the Company utilized Abrigo’s benchmark since the adoption on January 1, 2023 through the second quarter of 2023 and switched to the Company’s own historical prepayment and curtailment experience beginning in the third quarter of 2023. Quarterly PD is forecasted using a regression model that incorporates certain economic variables as inputs. The LGD is derived from PD using the Frye-Jacobs index provided by the Company’s third-party model provider. Reasonable and supportable forecasts are used to predict current and future economic conditions. Management elected to use a four quarter reasonable and supportable forecast period followed by an eight quarter straight-line reversion period. After twelve quarters of forecast plus reversion period, the PD 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 (reversal of) credit losses in the consolidated statements of income and added to the allowance for off-balance sheet commitments, which is included in accrued interest payable and other liabilities in the consolidated balance sheets. Loan Modifications, Refinancings and Restructurings Prior to the adoption of ASU 2022-02, a loan was classified as a TDR when the Company granted a concession to a borrower experiencing financial difficulties that it otherwise would not consider under its normal lending policies under ASC Subtopic 310-40, Troubled Debt Restructurings by Creditors. Upon the adoption of ASU 2022-02, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. The Company considers some of the indicators that a borrower is experiencing financial difficulty to be: currently in payment default on any of their debt, declaring bankruptcy, having issues continuing as a going concern, insufficient cash flow to service all debt service requirements, inability to obtain funds from other sources at a market rate for similar debt to non-troubled borrowers, and currently classified as substandard loans that are categorized as having well-defined weaknesses. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. If the refinancing or restructuring is deemed to be a new loan, unamortized net fees or costs from the original loan and any prepayment penalties are recognized in interest income when the new loan is granted. In addition, a new effective interest rate will be determined. If the refinancing or restructuring is deemed to be a modification, the investment in the new loan is comprised of the remaining net investment in the original loan, any additional funds advanced to the borrower, any fees received, and direct loan origination costs associated with the refinancing or restruct

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2024
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, 2024 and December 31, 2023 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair June 30, 2024 Taxable municipals $ 552 $ — $ (93) $ 459 Tax exempt bank-qualified municipals 52,897 — (4,880) 48,017 $ 53,449 $ — $ (4,973) $ 48,476 December 31, 2023 Taxable municipals $ 551 $ — $ (73) $ 478 Tax exempt bank-qualified municipals 53,065 25 (3,136) 49,954 $ 53,616 $ 25 $ (3,209) $ 50,432 The amortized cost of available-for-sale debt securities and their approximate fair values at June 30, 2024 and December 31, 2023 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair June 30, 2024 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 76,502 $ 160 $ (4,585) $ 72,077 SBA securities 5,229 6 (106) 5,129 U.S. Treasury 2,733 — (360) 2,373 U.S. Agency 2,000 — (337) 1,663 Collateralized mortgage obligations 44,040 13 (3,877) 40,176 Taxable municipals 1,528 — (101) 1,427 Tax exempt bank-qualified municipals 830 — (22) 808 $ 132,862 $ 179 $ (9,388) $ 123,653 December 31, 2023 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 77,031 $ 631 $ (3,228) $ 74,434 SBA securities 5,886 5 (109) 5,782 U.S. Treasury 2,760 — (343) 2,417 U.S. Agency 2,000 — (330) 1,670 (dollars in thousands) Amortized Cost Gross Gross Estimated Fair Collateralized mortgage obligations 46,330 173 (3,002) 43,501 Taxable municipals 1,528 — (107) 1,421 Tax exempt bank-qualified municipals 831 — (21) 810 $ 136,366 $ 809 $ (7,140) $ 130,035 During the three and six months ended June 30, 2024 and 2023, there were no transfers between held-to-maturity and available-for-sale debt securities. At June 30, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of our shareholders’ equity. Accrued interest receivable on held-to-maturity and available-for-sale debt securities totaled $775 thousand and $788 thousand at June 30, 2024 and December 31, 2023, 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, 2024, held-to-maturity debt securities with an amortized cost of $53.4 million were pledged to the Federal Reserve Bank (“Federal Reserve”) as collateral for a secured line of credit of $45.3 million. There were $53.6 million held-to-maturity debt securities pledged to the Federal Reserve as collateral for a secured line of credit of $47.3 million at December 31, 2023. See Note 7 – Borrowing Arrangements for additional information regarding the FHLB and Federal Reserve secured lines of credit. Contractual Maturities The amortized cost and estimated fair value of all held-to-maturity and available-for-sale debt securities as of June 30, 2024 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, 2024 Due in one year or less $ — $ — $ 520 $ 518 Due after one year through five years — — 10,474 9,270 Due after five years through ten years 21,202 19,405 17,406 15,816 Due after ten years 32,247 29,071 104,462 98,049 $ 53,449 $ 48,476 $ 132,862 $ 123,653 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, 2024 and 2023 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, 2024 and December 31, 2023 are summarized as follows: Less than 12 Months 12 Months or Longer Total (dollars in thousands) Unrealized Estimated Unrealized Estimated Unrealized Estimated June 30, 2024: Available-for-sale debt securities: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (1,081) $ 38,482 $ (3,504) $ 27,192 $ (4,585) $ 65,674 SBA securities — 175 (106) 3,393 (106) 3,568 U.S. Treasury — — (360) 2,373 (360) 2,373 U.S. Agency — — (337) 1,663 (337) 1,663 Collateralized mortgage obligations (250) 3,429 (3,627) 33,570 (3,877) 36,999 Taxable municipals — — (101) 927 (101) 927 Tax exempt bank-qualified municipals — — (22) 808 (22) 808 $ (1,331) $ 42,086 $ (8,057) $ 69,926 $ (9,388) $ 112,012 December 31, 2023: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (160) $ 23,738 $ (3,068) $ 20,951 $ (3,228) $ 44,689 SBA securities (8) 2,193 (101) 1,790 (109) 3,983 U.S. Treasury — — (343) 2,417 (343) 2,417 U.S. Agency — — (330) 1,670 (330) 1,670 Collateralized mortgage obligations (311) 15,684 (2,691) 23,360 (3,002) 39,044 Taxable municipals — — (107) 921 (107) 921 Tax exempt bank-qualified municipals — — (21) 810 (21) 810 $ (479) $ 41,615 $ (6,661) $ 51,919 $ (7,140) $ 93,534 As of June 30, 2024, the Company had a total of 84 available-for-sale debt securities in a gross unrealized loss position totaling $9.4 million, consisting of 68 securities with total gross unrealized losses of $8.1 million that had been in a continual loss position for twelve months and longer. As of December 31, 2023, the Company had a total of 76 available-for-sale debt securities in a gross unrealized loss position totaling $7.1 million, consisting of 58 securities with total gross unrealized losses of $6.7 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, 2024, the Company had a net unrealized loss on available-for-sale debt securities of $9.2 million, or $6.5 million net of tax in accumulated other comprehensive loss, compared to a net unrealized loss of $6.3 million, or $4.5 million net of tax in accumulated other comprehensive loss, at December 31, 2023. Allowance for Credit Losses on Debt Securities For available-for-sale debt securities with unrealized losses, management considered the financial condition of the issuer and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. The Company’s available-for-sale debt securities consisted of U.S. Treasury, U.S. government and agency and government sponsored enterprise securities, and municipals, which historically have had limited credit loss experience. In addition, the Company reviewed the credit rating of the municipal securities. At June 30, 2024, the total fair value of taxable municipal and tax exempt bank-qualified municipal securities was $1.4 million and $808 thousand, respectively. At June 30, 2024, all of these securities were rated AA and above. At December 31, 2023, the total fair value of taxable municipal and tax exempt bank-qualified municipal securities was $1.4 million and $810 thousand, respectively. These securities rated AA and above totaled $1.4 million and rated A+ totaled $810 thousand at December 31, 2023. At June 30, 2024, 61 held-to-maturity debt securities with fair values totaling $48.5 million had gross unrealized losses totaling $5.0 million, compared to 58 held-to-maturity debt securities with fair values totaling $48.3 million had gross unrealized losses totaling $3.2 million at December 31, 2023. 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, 2024 and December 31, 2023, fair values of held-to-maturity debt securities rated AA and above totaled $45.2 million and $47.0 million , respectively and rated AA- totaled $3.2 million and $3.4 million, respectively. Management evaluates securities in an unrealized loss position at least on a quarterly basis, and determined that the unrealized losses at June 30, 2024 and 2023 related to each investment were primarily attributable to factors other than credit related, including changes in interest rates driven by the Federal Reserve’s policy to fight against inflation and general volatility in market conditions. As such, the Company applied a zero credit loss assumption for these securities and no provision for credit losses was recorded for held-to-maturity or available-for-sale debt securities during the three and six months ended June 30, 2024 and 2023. Restricted Stock As a member of the Federal Reserve System, the Company must hold stock of the Federal Reserve 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, 2024 and December 31, 2023: (dollars in thousands) June 30, December 31, Federal Reserve Bank $ 7,453 $ 7,430 Federal Home Loan Bank 9,445 8,625 $ 16,898 $ 16,055 During the three and six months ended June 30, 2024, the Company purchased $12 thousand and $23 thousand, respectively, of Federal Reserve stock, and there were $820 thousand and $820 thousand, respectively, of purchases of FHLB stock. During the three and six months ended June 30, 2023, the Company purchased $40 thousand and $54 thousand of Federal Reserve stock, respectively, and purchased $1.4 million and $1.4 million, respectively, 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, 2024 and December 31, 2023. These equity securities are reported in accrued interest receivable and other assets in the consolidated balance sheets. At June 30, 2024 and December 31, 2023, 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, 2024 and 2023, 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, 2024 and December 31, 2023, the balance of these investments, which is included in accrued interest receivable and other assets in the consolidated balance sheets, was $7.2 million and $7.0 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, 2024, the Company made $170 thousand and $97 thousand, respectively, of net capital contributions to these equity investments. During the three and six months ended June 30, 2023, the Company made $1.5 million and $2.1 million, respectively, of net capital contributions to these equity investments. At June 30, 2024 and December 31, 2023, 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, 2024 and 2023, 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 aggregate funding commitment for this investment was $2.0 million at June 30, 2024 and December 31, 2023. The unfunded portion of this investment totaled $1.4 million and $1.5 million at June 30, 2024 and December 31, 2023, respectively, and is included in accrued interest payable and other liabilities in the consolidated balance sheets. The following table presents activity in qualifying low income housing projects for the three and six months ended June 30, 2024 and 2023 follows: Three Months Ended Six Months Ended (dollars in thousands) June 30, June 30, June 30, June 30, Proportional amortization $ (15) $ — $ (51) $ — Tax credits 87 — 136 — Contributions 155 — 155 — At June 30, 2024 and December 31, 2023, 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, 2024
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 and Northern California markets effective July 31, 2024. 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 85% and 83% of total loans at June 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023 was as follows: (dollars in thousands) June 30, December 31, Construction and land development $ 205,072 $ 243,521 Real estate - other: 1-4 family residential 157,323 143,903 Multifamily residential 187,960 221,247 Commercial real estate and other 1,043,662 1,024,243 Commercial and industrial 283,203 320,142 Consumer 397 4,386 Loans held for investment (1) 1,877,617 1,957,442 Allowance for credit losses (23,788) (22,569) Loans held for investment, net $ 1,853,829 $ 1,934,873 (1) Loans held for investment includes net unearned fees of $1.7 million and $2.3 million and net unearned discounts of $1.3 million and $1.4 million at June 30, 2024 and December 31, 2023, respectively. The Company has pledged $1.36 billion of loans with the FHLB under a blanket lien, of which an unpaid principal balance of $855.1 million was considered as eligible collateral under this secured borrowing arrangement and loans with an unpaid principal balance totaling $115.7 million were pledged as collateral under a secured borrowing arrangement with the Federal Reserve as of June 30, 2024. See Note 7 – Borrowing Arrangements for additional information regarding the FHLB and Federal Reserve secured lines of credit. Loans Held for Sale 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, 2024 follows: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2024 2023 2022 2021 2020 Prior Total June 30, 2024 Construction and land development Pass $ — $ 27,832 $ 101,883 $ 47,522 $ 16,189 $ 945 $ — $ — $ 194,371 Special mention — — — — — — — — — Substandard — — 10,614 — — 87 — — 10,701 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development — 27,832 112,497 47,522 16,189 1,032 — — 205,072 Real estate - other: 1-4 family residential Pass 1,430 23,623 33,534 18,083 6,786 17,758 52,365 — 153,579 Special mention — — — — — 849 — — 849 Substandard — — 2,895 — — — — — 2,895 Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1-4 family residential 1,430 23,623 36,429 18,083 6,786 18,607 52,365 — 157,323 Multifamily residential Pass — 18,809 57,397 66,318 5,430 35,310 — — 183,264 Special mention — — — — — — — — — Substandard — — 4,696 — — — — — 4,696 Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily residential — 18,809 62,093 66,318 5,430 35,310 — — 187,960 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2024 2023 2022 2021 2020 Prior Total June 30, 2024 Commercial real estate and other Pass 38,656 67,225 305,860 282,866 51,336 236,510 48,323 — 1,030,776 Special mention — — 3,832 1,159 2,286 3,903 946 498 12,624 Substandard — — — — — 262 — — 262 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate and other 38,656 67,225 309,692 284,025 53,622 240,675 49,269 498 1,043,662 Commercial and industrial Pass 15,584 24,522 47,398 9,610 5,459 17,888 143,828 — 264,289 Special mention — — — 1,363 — 1,203 11,822 — 14,388 Substandard — — 335 52 — 1,218 2,921 — 4,526 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and industrial 15,584 24,522 47,733 11,025 5,459 20,309 158,571 — 283,203 Consumer Pass 265 — — 30 — 10 92 — 397 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 265 — — 30 — 10 92 — 397 Total loans $ 55,935 $ 162,011 $ 568,444 $ 427,003 $ 87,486 $ 315,943 $ 260,297 $ 498 $ 1,877,617 Total by risk rating: Pass $ 55,935 $ 162,011 $ 546,072 $ 424,429 $ 85,200 $ 308,421 $ 244,608 $ — $ 1,826,676 Special mention — — 3,832 2,522 2,286 5,955 12,768 498 27,861 Substandard — — 18,540 52 — 1,567 2,921 — 23,080 Doubtful — — — — — — — — — Loss — — — — — — — — — Total loans $ 55,935 $ 162,011 $ 568,444 $ 427,003 $ 87,486 $ 315,943 $ 260,297 $ 498 $ 1,877,617 The risk category of loans by class of loans and origination year as of December 31, 2023 follows: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total December 31, 2023 Construction and land development Pass $ 25,113 $ 127,496 $ 71,199 $ 17,022 $ 2,071 $ 528 $ — $ — $ 243,429 Special mention — — — — — — — — — Substandard — — — — — 92 — — 92 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development 25,113 127,496 71,199 17,022 2,071 620 — — 243,521 Real estate - other: 1-4 family residential Pass 24,928 35,670 20,207 6,887 4,884 15,582 35,645 100 143,903 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1-4 family residential 24,928 35,670 20,207 6,887 4,884 15,582 35,645 100 143,903 Multifamily residential Pass 18,803 61,677 73,365 5,712 27,292 21,245 149 — 208,243 Special mention — — — — — — — — — Substandard — 13,004 — — — — — — 13,004 Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily residential 18,803 74,681 73,365 5,712 27,292 21,245 149 — 221,247 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Commercial real estate and other Pass 76,434 304,524 287,245 57,736 51,992 203,976 36,543 1,626 1,020,076 Special mention — 2,701 — — — — 295 — 2,996 Substandard — — — — — 1,171 — — 1,171 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate and other 76,434 307,225 287,245 57,736 51,992 205,147 36,838 1,626 1,024,243 Commercial and industrial Pass 46,701 70,658 12,883 7,095 8,266 13,715 153,712 1,877 314,907 Special mention — — — — — — — — — Substandard — 346 64 — 1,208 121 3,097 399 5,235 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and industrial 46,701 71,004 12,947 7,095 9,474 13,836 156,809 2,276 320,142 Consumer Pass 163 — 39 91 6 11 4,076 — 4,386 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 163 — 39 91 6 11 4,076 — 4,386 Total loans $ 192,142 $ 616,076 $ 465,002 $ 94,543 $ 95,719 $ 256,441 $ 233,517 $ 4,002 $ 1,957,442 Total by risk rating: Pass $ 192,142 $ 600,025 $ 464,938 $ 94,543 $ 94,511 $ 255,057 $ 230,125 $ 3,603 $ 1,934,944 Special mention — 2,701 — — — — 295 — 2,996 Substandard — 13,350 64 — 1,208 1,384 3,097 399 19,502 Doubtful — — — — — — — — — Loss — — — — — — — — — Total loans $ 192,142 $ 616,076 $ 465,002 $ 94,543 $ 95,719 $ 256,441 $ 233,517 $ 4,002 $ 1,957,442 A summary of gross charge-offs by class of loans and origination year for the six months ended June 30, 2024 and 2023 follows: Term Loans Gross Charge-offs by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2024 2023 2022 2021 2020 Prior Total Six Months Ended June 30, 2024 Construction and land development $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - other: 1-4 family residential — — — — — — 1 — 1 Multifamily residential — — 1,456 — — — — — 1,456 Commercial real estate and other — — — — — — — — — Commercial and industrial — — — — — — — — — Consumer — — — — — — — — — Total $ — $ — $ 1,456 $ — $ — $ — $ 1 $ — $ 1,457 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 Six Months Ended June 30, 2023 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 $ — $ — $ — $ 15 $ — $ 21 $ — $ — $ 36 Past Due Loans A summary of past due loans as of June 30, 2024 and December 31, 2023 follows: (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Nonaccrual Total June 30, 2024 Construction and land development $ — $ — $ — $ — $ 205,072 $ — $ 205,072 Real estate - other: 1-4 family residential — — — — 157,323 — 157,323 Multifamily residential — — — — 183,264 4,696 187,960 Commercial real estate and other — — — — 1,043,662 — 1,043,662 Commercial and industrial — — — — 283,203 — 283,203 Consumer — — — — 397 — 397 $ — $ — $ — $ — $ 1,872,921 $ 4,696 $ 1,877,617 (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Nonaccrual Total December 31, 2023 Construction and land development $ — $ — $ — $ — $ 243,521 $ — $ 243,521 Real estate - other: 1-4 family residential — — — — 143,903 — 143,903 Multifamily residential — — — — 208,243 13,004 221,247 Commercial real estate and other — — — — 1,024,243 — 1,024,243 Commercial and industrial 19 — — 19 320,123 — 320,142 Consumer — — — — 4,386 — 4,386 $ 19 $ — $ — $ 19 $ 1,944,419 $ 13,004 $ 1,957,442 There were no loans over 90 days past due loans and still accruing interest as of June 30, 2024 and December 31, 2023. Nonaccrual Loans A summary of total nonaccrual loans and the amount of nonaccrual loans with no related ACL as of June 30, 2024 and December 31, 2023 follows: June 30, 2024 December 31, 2023 (dollars in thousands) Total Nonaccrual Total Nonaccrual Construction and land development $ — $ — $ — $ — Real estate - other: 1-4 family residential — — — — Multifamily residential 4,696 4,696 13,004 13,004 Commercial real estate and other — — — — Commercial and industrial — — — — Consumer — — — — $ 4,696 $ 4,696 $ 13,004 $ 13,004 Collateral Dependent Loans Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Estimates for costs to sell are included in the determination of the ACL when liquidation of the collateral is anticipated. In cases where the loan is well secured and the estimated value of the collateral exceeds the amortized cost of the loan, no ACL is recorded. At June 30, 2024, a multifamily residential three-year bridge loan originated in May 2022 was classified as a collateral dependent loan, and was collateralized by an 8-unit multifamily apartment building located in Los Angeles, California. Based on the Company's internal analysis, the estimated collateral value was $4.7 million, and was $1.5 million lower than the subject loan’s net carrying value resulting in a partial charge-off in the second quarter of 2024 . At December 31, 2023, a $13.0 million multifamily residential loan was classified as a collateral dependent loan, and was collateralized by three investment multifamily properties. The subject loan was partially charged off by $1.3 million in the fourth quarter of 2023, foreclosed on in the first quarter of 2024 and sold in the second quarter of 2024. Other Real Estate Owned (“OREO”), Net Real estate acquired by foreclosure or deed in lieu of foreclosure is recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis by a charge to the ACL, if necessary. The Company had no foreclosed assets at June 30, 2024 and December 31, 2023. During the six months ended June 30, 2024, the Company foreclosed on and sold $13.1 million of other real estate owned related to a three-property multifamily OREO in Santa Monica, California, and recognized a $4.8 million pre-tax loss. Allowance for Credit Losses - Loans The ACL consists of: (i) a specific allowance established for CECL on loans individually evaluated, (ii) a quantitative allowance for current expected loan losses based on the portfolio and expected economic conditions over a reasonable and supportable forecast period that reverts back to long-term trends to cover the expected life of the loan, (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. For prepayment and curtailment rates, the Company used its own historical prepayment and curtailment experience with covering the period starting from December 2020 to estimate the ACL. The Company used the probability-weighted two-scenario forecasts, representing a base-case scenario and one downside scenario, to estimate the ACL. The Company utilized economic forecasts released by Moody’s Analytics during the fourth week of June 2024. Other sources of economic forecasts and meeting minutes of the Federal Open Market Committee meeting were also considered by the Company when determining the scenario weighting. At June 30, 2024, the Moody’s economic forecast assumes two interest rate cuts in 2024. In its July 2024 meeting, the Federal Reserve continued to hold steady on interest rates, leaving the Fed Funds Target Rate unchanged at 5.25% to 5.50%, and suggested an interest rate cut may occur as early as September 2024. The underlying assumptions in the Moody’s economic forecasts supporting the baseline forecast remained consistent in the expectation that the Federal Reserve is done raising rates and will continue to reduce the Federal Reserve’s balance sheet through quantitative tightening at a slower pace. Moody’s baseline national gross domestic product forecast was 2.4% in 2024 on an annual average basis. The forecast assumes that growth would decelerate in response to fiscal tightening and high interest rates, gradually returning to trend by 2026. Growth in the following two years is forecasted at 1.8% in 2025 and 1.9% in 2026. On June 21, 2024, the Conference Board decreased their forecast from 1% to “less than 1%”, while the Federal Reserve members median projection for GDP growth in 2024 remained at 2.1%, with a range between 1.4% and 2.7%. Moody’s economic forecasts for California suggested a minimal change for its June 2024 baseline forecast in unemployment rate and expects it will peak in the third quarter of 2024 at 5.19% with those numbers dropping to 4.88% in second quarter of 2025. Moody’s downside scenario suggested an upward revision in the unemployment rate to 6.01% in the third quarter of 2024, peaking at 7.58% in the second quarter of 2025. The outlook for California Gross State Product (GSP) growth rate declined in baseline and downside scenario from 1.73% and 1.23%, respectively, in the third quarter of 2024 to 1.34% and -0.77%, respectively, in the second quarter of 2025. The pessimistic changes in key economic forecasts for California would have a negative impact to the Company ACL. During the second quarter of 2024, the Company updated its historical prepayment and curtailment rates analysis, and they reflected a moderate decrease from the first quarter of 2024 primarily due to lower payoffs and paydowns. Accrued interest receivable on loans receivable, net, totaled $6.7 million and $6.4 million at June 30, 2024 and December 31, 2023, 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. Allowance for Credit Losses - Unfunded Loan Commitments 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 $97 thousand and $114 thousand, respectively, for the three and six months ended June 30, 2024. There was a $135 thousand and $211 thousand negative provision for unfunded loan commitments for the three and six months ended June 30, 2023, respectively. The provision for unfunded loan commitments is included in provision for (reversal of) credit losses in the consolidated statements of income. The reserve for unfunded loan commitments was $819 thousand and $933 thousand at June 30, 2024 and December 31, 2023, 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) 2024 2023 2024 2023 Allowance for loan losses (ALL) Balance, beginning of period $ 22,254 $ 22,391 $ 22,569 $ 17,099 Adoption of ASU No. 2016-13 (1) — — — 5,027 Provision for loan losses 2,990 120 2,676 398 Charge-offs (1,456) (9) (1,457) (36) Recoveries — — — 14 Net charge-offs (1,456) (9) (1,457) (22) Balance, end of period $ 23,788 $ 22,502 $ 23,788 $ 22,502 Reserve for unfunded loan commitments Balance, beginning of period $ 916 $ 1,673 $ 933 $ 1,310 Adoption of ASU No. 2016-13 (1) — — — 439 Reversal of credit losses for unfunded loan commitments (97) (135) (114) (211) Balance, end of period 819 1,538 819 1,538 Allowance for credit losses (ACL), end of period $ 24,607 $ 24,040 $ 24,607 $ 24,040 (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. A summary of changes in the ALL by loan portfolio segment for the periods indicated follows: (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Three Months Ended June 30, 2024 Beginning of period $ 2,133 $ 16,572 $ 3,538 $ 11 $ 22,254 Provision for (reversal of) loan losses 809 1,932 257 (8) 2,990 Charge-offs — (1,456) — — (1,456) Recoveries — — — — — Net charge-offs — (1,456) — — (1,456) End of period $ 2,942 $ 17,048 $ 3,795 $ 3 $ 23,788 Three Months Ended June 30, 2023 Beginning of period $ 3,397 $ 14,699 $ 4,241 $ 54 $ 22,391 Provision for (reversal of) 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 Six Months Ended June 30, 2024 Beginning of period $ 2,032 $ 16,280 $ 4,242 $ 15 $ 22,569 Provision for (reversal of) loan losses 910 2,225 (447) (12) 2,676 Charge-offs — (1,457) — — (1,457) Recoveries — — — — — End of period $ 2,942 $ 17,048 $ 3,795 $ 3 $ 23,788 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 for (reversal of) loan losses 374 435 (393) (18) 398 Charge-offs — (12) (24) — (36) Recoveries — — 14 — 14 End of period $ 3,556 $ 15,097 $ 3,808 $ 41 $ 22,502 (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, 2024
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 and C&I loans participated with various other financial institutions and special purpose vehicle (“SPV”) participations for the Main Street loans. Loans sold and serviced for others are accounted for as sales and are therefore not included in the accompanying consolidated balance sheets. Loans serviced for others totaled $58.4 million and $58.8 million at June 30, 2024 and December 31, 2023, respectively. This includes SBA loans serviced for others of $35.3 million and $35.4 million at June 30, 2024, and December 31, 2023, for which there was a related servicing asset of $521 thousand and $546 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 changes in the SBA servicing asset for the three and six months ended June 30, 2024 and 2023 follows: Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Balance, beginning of period $ 624 $ 684 $ 546 $ 514 Additions — 24 109 216 Amortization (1) (103) (25) (134) (47) Balance, end of period $ 521 $ 683 $ 521 $ 683 (1) Amortization included accelerated amortization of $80 thousand and zero for the three months ended June 30, 2024 and 2023, respectively, and $90 thousand and $3 thousand for the six months ended June 30, 2024 and 2023, respectively. During the three months ended June 30, 2024, no SBA 7(a) loans were sold. SBA 7(a) loans sold during the three months ended June 30, 2023 totaled $1.0 million, resulting in total gains on sale of SBA loans of $77 thousand. SBA 7(a) loans sold during the six months ended June 30, 2024 totaled $6.3 million resulting in total gains on sale of SBA loans of $415 thousand. SBA 7(a) loans sold during the six months ended June 30, 2023 totaled $10.9 million resulting in total gains on sale of SBA loans of $874 thousand. The fair value of the servicing asset approximated the carrying value at June 30, 2024 and December 31, 2023. The significant assumptions used in the valuation of the SBA servicing asset at June 30, 2024 and December 31, 2023 included: (dollars in thousands) June 30, December 31, Discount rate: Range 6.6% – 24.7% 10.5% – 26.2% Weighted average 14.0% 16.1% Prepayment speed: Range 11.9% – 38.0% 11.2% – 48.1% Weighted average 19.6% 19.0% The following table presents the components of net servicing (expenses) fees, included in servicing and related income on loans, net in the consolidated statements of income, for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Contractually specified fees $ 91 $ 104 183 196 Amortization (103) (25) (134) (47) Net servicing (expenses) fees $ (12) $ 79 $ 49 $ 149

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill, the excess purchase price over the fair value of all identifiable assets and liabilities acquired, totaled $37.8 million at June 30, 2024 and December 31, 2023. Goodwill is reviewed for impairment at least annually during the fourth quarter of each fiscal year. During the three months ended June 30, 2024, the Company’s stock price and market capitalization decreased due to the continued market volatility. The Company evaluated current conditions and concluded there had been no significant changes in the economic environment or future projections since the annual goodwill impairment test performed at December 31, 2023 and therefore, believes that there is no impairment as of June 30, 2024. There were no triggering events during the second quarter of 2024 that caused management to evaluate goodwill for a quantitative impairment analysis as of June 30, 2024. Management will continue to evaluate the economic conditions at future reporting periods for applicable changes. The Company performed a qualitative assessment for potential impairment at December 31, 2023, and as a result of that assessment had determined that there has been no impairment to the goodwill. There were no changes to goodwill during the three and six months ended June 30, 2024 and 2023. Core deposit intangibles are amortized over periods of 4.50 to 7.33 years. As of June 30, 2024, the weighted-average remaining amortization period for core deposit intangibles was approximately 5.6 years. The Company performed the annual impairment analysis for the core deposit intangibles at least annually during the fourth quarter of each fiscal year. The Company evaluated current conditions and concluded there had been no significant changes in the economic environment or future projections since the annual core deposit intangibles impairment test performed at September 30, 2023 and therefore, believes that there was no impairment as of June 30, 2024. Management will continue to evaluate the economic conditions at future reporting periods for applicable changes. The following table presents the changes in core deposit intangibles for the three and six months ended June 30, 2024 and 2023. Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 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 $ (3,055) $ (2,692) $ (2,990) $ (2,601) Amortization (65) (90) (130) (181) Balance, end of period (3,120) (2,782) (3,120) (2,782) Net core deposit intangible, end of period $ 1,065 $ 1,403 $ 1,065 $ 1,403 Future estimated amortization expense for each of the next five years is as follows: (dollars in thousands) Amount Remainder of 2024 $ 128 2025 237 2026 217 2027 205 2028 134 Thereafter 144 $ 1,065

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2024
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, 2024, ICS deposits decreased to $239.8 million, or 12.4% of total deposits, compared to $274.1 million, or 14.1% of total deposits at December 31, 2023. Time deposits that exceeded the FDIC insurance limit of $250,000 amounted to $131.7 million and $122.6 million as of June 30, 2024 and December 31, 2023, respectively. Brokered time deposits totaled $103.4 million and $107.8 million as of June 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, total collateralized deposits, including the deposits of State of California and their public agencies, were $78.1 million and $72.7 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, 2024, the scheduled maturities of time deposits are as follows: (dollars in thousands) Amount Remainder of 2024 $ 212,680 2025 35,192 2026 4,256 2027 74 2028 and thereafter 252 $ 252,454

BORROWING ARRANGEMENTS

BORROWING ARRANGEMENTS	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
BORROWING ARRANGEMENTS	BORROWING ARRANGEMENTS A summary of outstanding borrowings as of June 30, 2024 and December 31, 2023 follows: (dollars in thousands) June 30, December 31, FHLB advances $ 25,000 $ 85,000 Subordinated notes 17,913 17,865 Total borrowings $ 42,913 $ 102,865 Federal Home Loan Bank Secured Line of Credit At June 30, 2024, the Company had a secured line of credit of $484.8 million from the FHLB, of which $377.8 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, 2024, the Company had pledged $1.36 billion of qualifying loans with the FHLB under a blanket lien, of which an unpaid principal balance of $855.1 million was considered as eligible collateral under this secured borrowing arrangement. In addition, at June 30, 2024, the Company used $82.0 million of its secured FHLB borrowing capacity by having the FHLB issue letters of credit to meet collateral requirements for deposits from the State of California and other public agencies. The Company had overnight borrowings of $25.0 million with an interest rate of 5.65% and $85.0 million with an interest of 5.70% at June 30, 2024 and December 31, 2023, respectively. Federal Reserve Bank Secured Line of Credit At June 30, 2024, the Company had credit availability of $139.5 million at the Federal Reserve discount window to the extent of collateral pledged. At June 30, 2024, the Company had pledged held-to-maturity debt securities with an amortized cost of $53.4 million as collateral, and qualifying loans with an unpaid principal balance of $115.7 million as collateral through the Borrower-in-Custody (“BIC”) program. The Company had no discount window borrowings at June 30, 2024 and December 31, 2023. Federal Funds Unsecured Lines of Credit At June 30, 2024, the Company had three overnight unsecured credit lines from correspondent banks totaling $75.0 million. The lines are subject to annual review. There were no outstanding borrowings under these lines at June 30, 2024 and December 31, 2023. Fixed-to-Floating Rate Subordinated Notes

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2024
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 and six months ended June 30, 2024.

EARNINGS PER SHARE (_EPS_)

EARNINGS PER SHARE (“EPS”)	6 Months Ended
	Jun. 30, 2024
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, 2024 and 2023: Three Months Ended Six Months Ended (dollars in thousands, except share and per share data) 2024 2023 2024 2023 Net income $ 190 $ 6,718 $ 5,125 $ 14,942 Weighted average common shares outstanding - basic 18,537,507 18,287,595 18,482,177 18,172,083 Dilutive effect of outstanding: Stock options and unvested stock grants 262,006 308,633 318,437 440,861 Weighted average common shares outstanding - diluted 18,799,513 18,596,228 18,800,614 18,612,944 Earnings per common share - basic $ 0.01 $ 0.37 $ 0.28 $ 0.82 Earnings per common share - diluted $ 0.01 $ 0.36 $ 0.27 $ 0.80 The Company’s only performance based restricted stock grants were vested when the performance conditions had been met on March 1, 2023. A total of 275,171 performance based restricted stock grants were vested and included in the computation of basic EPS for the three and six months ended June 30, 2023 because the performance conditions had been met. For the three months ended June 30, 2024 and 2023, there were 145,422 and 184,441 restricted stock units and 8,000 and 13,000 stock options, respectively, that were not included in the computation of diluted earnings per share, because they were anti-dilutive. For the six months ended June 30, 2024 and 2023, there were 73,306 and 129,877 restricted stock units and 4,000 and 6,547 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, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company has granted loans to certain directors, their related interests with which they are associated, and beneficial owners with more than 5% of any class of the Company’s voting securities. The balance of these loans outstanding and activity in related party loans for the three and six months ended June 30, 2024 and 2023 follows: Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Balance, beginning of period $ 5,313 $ 8,052 $ 5,928 $ 8,073 New credit granted — — — — Repayments (18) (320) (633) (341) Balance, end of period $ 5,295 $ 7,732 $ 5,295 $ 7,732 Directors and related interests deposits at June 30, 2024 and December 31, 2023, amounted to approximately $15.3 million and $16.4 million, respectively. The Company leases its Ramona branch office from a beneficial owner who holds more than 5% of any class of the Company’s voting securities and is former member of the Company’s 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, 2024 and 2023 was $11 thousand and $22 thousand, respectively, and future minimum lease payments under the lease were $129 thousand and $151 thousand, respectively as of June 30, 2024 and December 31, 2023.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
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, 2024 and December 31, 2023: (dollars in thousands) June 30, December 31, Commitments to extend credit $ 368,082 $ 405,854 Letters of credit issued to customers 3,434 4,939 Commitments to contribute capital to other equity investments 2,843 3,170 $ 374,359 $ 413,963 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, 2024 was $81 thousand and $162 thousand, respectively, and for the three and six months ended June 30, 2023 was $79 thousand and $157 thousand, respectively. The Company is a beneficiary of life insurance policies that have been purchased as a method of financing the obligated benefits under these agreements. In the normal course of business, the Company is named or threatened to be named as a defendant in various legal actions. The ultimate outcome with respect to these legal matters and claims cannot be determined. At this time, the Company believes that liability, if any, is not likely to be material to the consolidated balance sheets or consolidated statements of income.

STOCK-BASED COMPENSATION PLAN

STOCK-BASED COMPENSATION PLAN	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION PLAN	STOCK-BASED COMPENSATION PLAN In contemplation of the holding company reorganization, in November 2019 the Company’s Board of Directors adopted the Southern California Bancorp 2019 Omnibus Equity Incentive Plan (the “2019 Plan”). The 2019 Plan was approved by shareholders in April 2020 with a maximum number of shares of common stock that may be issued or paid out under the plan of 2,200,000. In addition, upon the completion of the bank holding company reorganization in 2020, the Bank’s 2001 Stock Option Plan and 2011 Omnibus Equity Incentive Plan were terminated and all outstanding and unexpired stock options and all shares of restricted stock outstanding under the terminated plans became equivalent awards of the Company under the 2019 Plan. In October 2020, the maximum number of shares under the 2019 Plan was increased by 300,000 to 2,500,000. In June 2021, the maximum number of shares under the 2019 Plan was increased by 900,000 to 3,400,000. In addition, the 2019 Plan permits the Company to grant additional stock options and restricted share units. The Plan provides for the granting to eligible participants such incentive awards as the Board of Directors or a committee established by the Board, 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 For the three and six months ended June 30, 2024, total stock-based compensation cost related to stock options and restricted shares units was $996 thousand and $1.9 million, respectively. For the three and six months ended June 30, 2023, total stock-based compensation cost related to stock options and restricted shares units was $1.1 million and $2.8 million, respectively. The Company recorded an accelerated stock-based compensation expense for the performance-based restricted stock units totaling zero and $632 thousand for the three and six months ended June 30, 2023, and there was no comparable transaction for the three and six months ended June 30, 2024. Stock Options As of June 30, 2024, there was $29 thousand of total unrecognized compensation cost related to the outstanding stock options. There were no stock options exercised during the three months ended June 30, 2024, and 4,000 stock options exercised during the three months ended June 30, 2023. The intrinsic value of stock options exercised was zero and approximately $29 thousand for the three months ended June 30, 2024 and 2023, respectively. There were 81,400 and 10,950 stock options exercised during the six months ended June 30, 2024 and 2023, respectively. The intrinsic value of stock options exercised was approximately $558 thousand and $78 thousand for the six months ended June 30, 2024 and 2023, 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, 2024 and 2023. A summary of changes in outstanding stock options during the three and six months ended June 30, 2024 and 2023 are presented below: Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 (dollars in thousands, except share data) Shares Weighted Shares Weighted Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Outstanding at beginning of period 175,363 $ 9.48 272,813 $ 9.30 Granted — $ — — $ — Exercised — $ — (81,400) $ 8.68 Expired — $ — (750) $ 5.93 Forfeited — $ — (15,300) $ 10.75 Outstanding at end of period 175,363 $ 9.47 175,363 $ 9.47 3.1 $ 701 Options exercisable 169,163 $ 9.43 169,163 $ 9.43 2.9 $ 683 Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 (dollars in thousands, except share data) Shares Weighted Shares Weighted Weighted Average Remaining Contractual Term (Years) 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 Restricted Stock Units A summary of the changes in outstanding unvested restricted stock units during the three and six months ended June 30, 2024 and 2023 is presented below: Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 Restricted Weighted Average Grant Date Fair Value Restricted Weighted Average Grant Date Fair Value Unvested at beginning of period 691,011 $ 13.13 637,899 $ 13.11 Granted — $ — 168,035 $ 15.25 Vested (28,704) $ 14.63 (138,788) $ 15.83 Forfeited (1,191) $ 16.80 (6,030) $ 15.76 Unvested at end of period 661,116 $ 13.06 661,116 $ 13.06 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. 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. As of June 30, 2024, the Company did not have any outstanding unvested restricted stock units subject to various financial performance conditions. For the six months ended June 30, 2023, the Company recorded accelerated stock-based compensation totaling $632 thousand. As of June 30, 2024, there was $6.1 million of total unrecognized compensation expense related to the outstanding restricted stock units that will be recognized over the weighted-average period of 1.9 years. The total grant date fair value of restricted stock units vested was $420 thousand and $2.2 million for the three and six months ended June 30, 2024, and $383 thousand and $4.0 million for the three and six months ended June 30, 2023. Related tax expenses were approximately $6 thousand and $85 thousand for the three months ended June 30, 2024, respectively. Related tax expenses were approximately $8 thousand for the three months ended June 30, 2023 and related tax benefits were $644 thousand for the six months ended June 30, 2023. 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 their service affiliation with the Company.

REGULATORY MATTERS

REGULATORY MATTERS	6 Months Ended
	Jun. 30, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
REGULATORY MATTERS	REGULATORY MATTERS At June 30, 2024 and December 31, 2023, 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. The Bank also elected to exclude the effects of credit loss accounting under CECL from common equity Tier 1 capital ratio for a three-year transitional period. 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, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, 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, 2024. At June 30, 2024, 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, 2024: Total Capital (to Risk-Weighted Assets) $ 297,449 14.34 % $ 165,925 8.0 % $ 207,406 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 275,575 13.29 % 124,444 6.0 % 165,925 8.0 % CET1 Capital (to Risk-Weighted Assets) 275,575 13.29 % 93,333 4.5 % 134,814 6.5 % Tier 1 Capital (to Average Assets) 275,575 12.16 % 90,663 4.0 % 113,329 5.0 % As of December 31, 2023: Total Capital (to Risk-Weighted Assets) $ 289,743 13.51 % $ 171,575 8.0 % $ 214,469 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 270,341 12.61 % 128,681 6.0 % 171,575 8.0 % CET1 Capital (to Risk-Weighted Assets) 270,341 12.61 % 96,511 4.5 % 139,405 6.5 % Tier 1 Capital (to Average Assets) 270,341 11.65 % 92,818 4.0 % 116,022 5.0 % 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 regulator, 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. The Federal Reserve limits the amount of dividends that bank holding companies may pay on common stock to income available over the past year, and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. It is also the Federal Reserve’s policy that bank holding companies should not maintain dividend levels that undermine their ability to be a source of strength to its banking subsidiaries. Additionally, in consideration of the current financial and economic environment, the Federal Reserve has indicated that bank holding companies should carefully review their dividend policies.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. ASC Topic 820, Fair Value Measurements and Disclosures , establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value of financial instruments Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business, and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments: Cash and Due from Banks : The carrying amounts of cash and short-term instruments approximate fair values because of the liquidity of these instruments. Federal Funds Sold and Interest-Bearing Balances : The carrying amount is assumed to be the fair value given the short-term nature of these deposits. Debt Securities Held to Maturity and Available for Sale : The fair values of securities held to maturity and available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Loans Held for Sale : The fair value of loans held-for-sale is based on commitments outstanding from investors as well as what secondary market investors are currently offering for portfolios with similar characteristics. Loans Held for Investment, net : The fair value of loans, which is based on an exit price notion, is generally determined using an income based approach based on discounted cash flow analysis. This approach utilizes the contractual maturity of the loans and market indications of interest rates, prepayment speeds, defaults and credit risk in determining fair value. If an individually evaluated loan has had a charge-off or if the fair value of the collateral is less than the recorded investment in the loan, we establish a specific reserve and report the loan as nonrecurring Level 3. Loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. For the fair value of collateral-dependent individually evaluated loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral based on recent real estate appraisals, less costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. New appraisals in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Restricted Stock Investments : Investments in FHLB and Federal Reserve stocks are recorded at cost and measured for impairment. Ownership of FHLB and Federal Reserve stocks are restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB and Federal Reserve stock is equal to the carrying amount. Other Equity Securities : The fair value of equity securities is based on quoted prices in active markets for identical assets to determine the fair value. If quoted prices are not available to determine fair value, the Company estimates the fair values by using independent pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Other Real Estate Owned (“OREO”) : 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, 2024 and December 31, 2023, is summarized as follows: June 30, 2024 December 31, 2023 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 $ 29,153 $ 29,153 $ 33,008 $ 33,008 Fed funds and interest-bearing balances Level 1 75,580 75,580 53,785 53,785 Debt securities available for sale Level 1/2 123,653 123,653 130,035 130,035 Debt securities held to maturity Level 2 53,449 48,476 53,616 50,432 Loans held for sale Level 2 6,982 7,524 7,349 7,834 Loans held for investment, net Level 3 1,853,829 1,805,281 1,934,873 1,883,154 Restricted stock, at cost Level 2 16,898 16,898 16,055 16,055 Other equity securities Level 2 9,368 9,368 9,187 9,187 Accrued interest receivable Level 2 7,658 7,658 7,301 7,301 Financial liabilities: Deposits Level 2 1,935,862 1,935,152 1,943,556 1,943,007 Borrowings Level 2 42,913 42,752 102,865 102,447 Accrued interest payable Level 2 1,278 1,278 477 477 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, 2024 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 72,077 $ — $ 72,077 SBA securities — 5,129 — 5,129 U.S. Treasury 2,373 — — 2,373 U.S. Agency — 1,663 — 1,663 Collateralized mortgage obligations — 40,176 — 40,176 Taxable municipals — 1,427 — 1,427 Tax exempt bank-qualified municipals — 808 — 808 $ 2,373 $ 121,280 $ — $ 123,653 December 31, 2023 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 74,434 $ — $ 74,434 SBA securities — 5,782 — 5,782 U.S. Treasury 2,417 — — 2,417 U.S. Agency — 1,670 — 1,670 Collateralized mortgage obligations — 43,501 — 43,501 Taxable municipals — 1,421 — 1,421 Tax exempt bank-qualified municipals — 810 — 810 $ 2,417 $ 127,618 $ — $ 130,035 Nonrecurring fair value measurements The Company may also be required, from time to time, to measure certain other assets and liabilities on a nonrecurring basis in accordance with generally accepted accounting principles. For the valuation of the collateral-dependent loans, the Company relies primarily on third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. Depending on the type of underlying collateral, valuations may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. At June 30, 2024, the Company’s individual evaluated collateral dependent loan was evaluated based on the estimated fair value of its underlying collateral from the Company’s internal review, including a review of the most recent appraisals and the current sale market condition. This review resulted in a partial charge off of $1.5 million on the individually evaluated loan in the second quarter of 2024. At December 31, 2023, the Company took a partial charge-off of $1.3 million on an individually evaluated collateral-dependent loan based on its recent property appraisals during the year ended December 31, 2023. The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2024 and December 31, 2023. Fair Value Measurement Level Quoted Prices in Active Markets for Significant Other Significant Fair Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Value (Level 1) (Level 2) (Level 3) June 30, 2024 Collateral dependent loans (1) : Multifamily Residential $ 4,697 $ — $ — $ 4,697 December 31, 2023 Collateral dependent loans (1) : Multifamily Residential $ 13,000 $ — $ — $ 13,000 (1) Collateral-dependent loans whose fair value is based upon appraisals. Quantitative information about Level 3 fair value measurements measured on a non-recurring basis are summarized below as of June 30, 2024 and December 31, 2023. Asset Fair Valuation Unobservable % or Range % (dollars in thousands) Value Technique Input (Weighted Average) June 30, 2024 Multifamily Residential $ 4,697 Income approach Capitalization rate 5.75% Vacancy rate 17.50% December 31, 2023 Multifamily Residential $ 13,000 Income approach Capitalization rate 3.84%-4.94% (4.50%)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On July 31, 2024, the Company completed its all-stock merger with the former California BanCorp on the terms set forth in that certain Agreement and Plan of Merger and Reorganization, dated January 30, 2024, by and between Southern California Bancorp and the former California BanCorp. Immediately following the merger of the former California BanCorp with and into the Company, California Bank of Commerce, a California state-chartered bank and wholly-owned subsidiary of the former California BanCorp, merged with and into California Bank of Commerce, N.A., formerly known as Bank of Southern California, N.A.. Effective with these mergers, the corporate names of Southern California Bancorp and Bank of Southern California, N.A. were changed to California BanCorp and California Bank of Commerce, N.A., respectively. The merger provides the Company with the opportunity to expand its footprint in Northern California providing opportunity for building scale and increasing market share through complementary business models with a strong deposit base. The combined company retains the banking offices of both banks, adding California Bank of Commerce’s one full-service bank branch and its four loan production offices in the Bay Area to the Bank’s 13 full-service bank branches located throughout the Southern California region. Under the terms of the Agreement and Plan of Merger and Reorganization, each outstanding share of the former California BanCorp common stock was exchanged for the right to receive 1.590 shares of the Company’s common stock, resulting in the issuance of approximately 13,576,627 shares, with cash (without interest) paid in lieu of fractional shares. At June 30, 2024, the former California BanCorp had total loans of $1.49 billion, total assets of $1.92 billion, total deposits of $1.64 billion, and total equity of $195.5 million. The Company has not completed the purchase accounting for this transaction and is still in the process of determining total purchase consideration and the allocation of purchase considerations to acquired assets and liabilities.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 190	$ 6,718	$ 5,125	$ 14,942

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
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 audited consolidated financial statements and notes included in Item 8. Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. 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, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
Principles of Consolidation	Principles of Consolidation
Use of Estimates in the Preparation of Consolidated Financial Statements	Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in conformity with 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	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. If the measurement indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses (“ACL”) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. In addition, ASU 2016-13 modifies the other-than-temporary impairment (“OTTI”) model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for reversal of credit impairments in future periods based on improvements in credit. The Company elected to account for accrued interest receivable separately from the amortized cost of loans and investment securities. The Company elected the CECL phase-in option provided by regulatory capital rules, which delays the impact of CECL on regulatory capital over a three-year transition period. Concurrent with the adoption of ASU 2016-13, the Company adopted ASU 2022-02, Financial Instruments—Credit Losses (Topic 326) Troubled Debt Restructurings (“TDR”) and Vintage Disclosures, which eliminated TDR accounting prospectively for all loan modifications occurring on or after January 1, 2023 and added additional disclosure requirements for current period gross charge-offs by year of origination. It also prescribes guidance for reporting modifications for certain loan refinancings and restructurings made to borrowers experiencing financial difficulty. Loans that were considered a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the superseded TDR accounting guidance until the loan is paid off, liquidated, or subsequently modified. The Company adopted ASU 2016-13 using the modified retrospective transition approach, and recorded a net decrease of $3.9 million to the beginning balance of retained earnings as of January 1, 2023 for the cumulative effect adjustment, reflecting an initial adjustment to the ACL of $5.5 million, which included a $5.0 million increase in the ACL - loans and a $439 thousand increase in reserve for unfunded commitments, net of related deferred tax assets arising from temporary differences of $1.6 million, commonly referred to as the “Day 1” adjustment. This Day 1 adjustment reflects the development of the CECL models to estimate lifetime expected credit losses on the loans held for investment and unfunded commitments primarily using a lifetime loss methodology and management’s current expectation of future economic conditions. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with the probable incurred loss accounting standards. As permitted under ASC 326, the Company elected to maintain the same loan segments that it previously identified prior to adoption of CECL. At adoption of CECL and continuing through June 30, 2024, 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 January 1, 2024, the Company adopted 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. The Company did not have any such common control leases, so adoption of this standard had no impact to the consolidated financial statements. On January 1, 2024, the Company adopted ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, a consensus of the Emerging Issues Task Force. The amendments in this update allow the option for an entity to apply the proportional amortization method of accounting to other equity investments that are made for the primary purpose of receiving tax credits or other income tax benefits, if certain conditions are met. Prior to this update, the application of the proportional amortization method of accounting was only limited to low-income housing tax credit (“LIHTC”) structured investments. The proportional amortization method of accounting results in the amortization of applicable investments, as well as the related income tax credits or other income tax benefits received, being presented on a single line in the consolidated statements of income, income tax expense. Under this update, an entity has the option to apply the proportional amortization method of accounting to applicable investments on a tax-credit-program-by-tax-credit-program basis. In addition, the amendments in this update require that all tax equity investments accounted for using the proportional amortization method use the delayed equity contribution guidance in paragraph 323-740-25-3, requiring a liability be recognized for delayed equity contributions that are unconditional and legally binding or for equity contributions that are contingent upon a future event when that contingent event becomes probable. Under this update, LIHTC structured investments for which the proportional amortization method is not applied can no longer be accounted for using the delayed equity contribution guidance. Further, this update specifies that impairment of LIHTC structure investments not accounted for using the equity method must apply the impairment guidance in Subtopic 323-10 - Investments - Equity Method and Joint Ventures - Overall. This update also clarifies that for LIHTC structure investments not accounted for under the proportional amortization method or the equity method, an entity shall account for them under Topic 321 - Investments - Equity Securities. The amendments in this update also require additional disclosures in interim and annual periods concerning investments for which the proportional amortization method is applied, including (i) the nature of tax equity investments, and (ii) the effect of tax equity investments and related income tax credits and other income tax benefits on the financial position and results of operations. The provisions of this update are effective for the Company for interim and annual periods beginning December 15, 2023. Early adoption is permitted. The adoption of this standard did not have a material impact to the consolidated financial statements. Recent Accounting Guidance Not Yet Effective In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-06, Disclosure Improvements–Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in this update modify the disclosure or presentation requirements for a variety of topics in the codification. Certain amendments represent clarifications to or technical corrections of the current requirements. The following is a summary of the topics included in the update and which pertain to the Company: 1. Statement of cash flows (Topic 230): Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows; 2. Accounting changes and error corrections (Topic 250): Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements; 3. Earnings per share (Topic 260): Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods, and amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings per share computation; 4. Commitments (Topic 440): Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized; and 5. Debt (Topic 470): Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. For public business entities, the amendments in ASU 2023-06 are effective on the date which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation and S-X or Regulation S-K, the pending content of the related amendment will be removed from the codification and will not become effective for any entity. Early adoption is not permitted and the amendments are required to be applied on a prospective basis. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements. ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures: In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” to require, among other things, that a public entity that has a single reportable segment provide enhanced disclosures about significant segment expenses. Significant expense categories are derived from expenses that are 1) regularly reported to an entity’s chief operating decision-maker ("CODM"), and 2) included in a segment’s reported measure of profit or loss. The disclosures should include an amount for "other segment items," reflecting the difference between 1) segment revenue less significant segment expenses, and 2) the reportable segment’s profit or loss measures. It requires that a public entity disclose the title and position of the CODM and how the CODM uses the reported measure of profit or loss to assess segment performance and to allocate resources. Further it clarifies that entities with a single reportable segment must disclose both new and existing segment reporting requirements. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all periods presented in the financial statements. The Company has a single reportable segment and continues to assess ASU 2023-07 and its impact on its accounting and disclosures. ASU No. 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures: On December 14, 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” to address requests for improved income tax disclosures from investors, lenders, creditors and other allocators of capital that use the financial statements to make capital allocation decisions. This ASU is intended to improve the transparency of tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction, in addition to certain other amendments intended to improve the effectiveness of income tax disclosures. For public business entities, this ASU is effective for annual periods beginning after December 15, 2024. For other entities, this ASU is effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
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 CECL as of the date of the consolidated balance sheets. The ACL is estimated collectively for groups of debt securities with similar risk characteristics, and is determined at the individual security level when the Company deems a security to no longer possess shared risk characteristics. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. For debt securities where the Company has reason to believe the credit loss exposure is remote, a zero credit loss assumption is applied. Such debt securities were municipal securities, and historically have had limited credit loss experience. The Company does not anticipate any credit related losses in this investment portfolio. Changes in the ACL on held-to-maturity debt securities are recorded as a component of the provision for (reversal of) credit losses in the consolidated statements of income. 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 Off-Balance Sheet Credit Exposures	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 Allowance for Credit Losses - Off-Balance Sheet Credit Exposure). The ACL on loans held for investment represents the portion of the loans’ amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loans’ contractual life. Amortized cost does not include accrued interest, which management elected to exclude from the estimate of expected credit losses. Provision for credit losses for loans held for investment is included in provision for (reversal of) credit losses in the consolidated statements of income. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Subsequent recoveries, if any, are credited to the ACL. Credit losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income. Estimating expected credit losses requires management to use relevant forward-looking information, including the use of reasonable and supportable forecasts. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. The Company measures the ACL using a discounted cash flow methodology, which utilizes pool-level assumptions and cash flow projections on individual loan basis, which is then aggregated at the portfolio segment level and supplemented by a qualitative reserve that is applied to each portfolio segment level. The Company’s loan portfolio consists of the following segments, based on regulatory call codes and related risk ratings: Construction and land development loans are typically adjustable rate residential and commercial construction loans to builders, developers and 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 commercial real estate (“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 the loan segment level to derive the segment level quantitative loss rates. For prepayment and curtailment rates, the Company utilized Abrigo’s benchmark since the adoption on January 1, 2023 through the second quarter of 2023 and switched to the Company’s own historical prepayment and curtailment experience beginning in the third quarter of 2023. Quarterly PD is forecasted using a regression model that incorporates certain economic variables as inputs. The LGD is derived from PD using the Frye-Jacobs index provided by the Company’s third-party model provider. Reasonable and supportable forecasts are used to predict current and future economic conditions. Management elected to use a four quarter reasonable and supportable forecast period followed by an eight quarter straight-line reversion period. After twelve quarters of forecast plus reversion period, the PD 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 (reversal of) credit losses in the consolidated statements of income and added to the allowance for off-balance sheet commitments, which is included in accrued interest payable and other liabilities in the consolidated balance sheets.
Loan Modifications, Refinancings and Restructurings	Loan Modifications, Refinancings and Restructurings Prior to the adoption of ASU 2022-02, a loan was classified as a TDR when the Company granted a concession to a borrower experiencing financial difficulties that it otherwise would not consider under its normal lending policies under ASC Subtopic 310-40, Troubled Debt Restructurings by Creditors. Upon the adoption of ASU 2022-02, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. The Company considers some of the indicators that a borrower is experiencing financial difficulty to be: currently in payment default on any of their debt, declaring bankruptcy, having issues continuing as a going concern, insufficient cash flow to service all debt service requirements, inability to obtain funds from other sources at a market rate for similar debt to non-troubled borrowers, and currently classified as substandard loans that are categorized as having well-defined weaknesses. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. If the refinancing or restructuring is deemed to be a new loan, unamortized net fees or costs from the original loan and any prepayment penalties are recognized in interest income when the new loan is granted. In addition, a new effective interest rate will be determined. If the refinancing or restructuring is deemed to be a modification, the investment in the new loan is comprised of the remaining net investment in the original loan, any additional funds advanced to the borrower, any fees received, and direct loan origination costs associated with the refinancing or restructuring. The effective interest rate of the loan is recalculated based upon the amortized cost basis of the new loan and its revised contractual cash flows. A modification may vary by program and by borrower-specific characteristics, that may include interest rate reductions, principal forgiveness, term extensions, payment delays and any combination of the above. It 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 June 30, 2024 and December 31, 2023, the Company did not have any loans that have been modified and classified as TDRs under previous GAAP.
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. ASC Topic 820, Fair Value Measurements and Disclosures , establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value of financial instruments Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business, and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments: Cash and Due from Banks : The carrying amounts of cash and short-term instruments approximate fair values because of the liquidity of these instruments. Federal Funds Sold and Interest-Bearing Balances : The carrying amount is assumed to be the fair value given the short-term nature of these deposits. Debt Securities Held to Maturity and Available for Sale : The fair values of securities held to maturity and available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Loans Held for Sale : The fair value of loans held-for-sale is based on commitments outstanding from investors as well as what secondary market investors are currently offering for portfolios with similar characteristics. Loans Held for Investment, net : The fair value of loans, which is based on an exit price notion, is generally determined using an income based approach based on discounted cash flow analysis. This approach utilizes the contractual maturity of the loans and market indications of interest rates, prepayment speeds, defaults and credit risk in determining fair value. If an individually evaluated loan has had a charge-off or if the fair value of the collateral is less than the recorded investment in the loan, we establish a specific reserve and report the loan as nonrecurring Level 3. Loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. For the fair value of collateral-dependent individually evaluated loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral based on recent real estate appraisals, less costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. New appraisals in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Restricted Stock Investments : Investments in FHLB and Federal Reserve stocks are recorded at cost and measured for impairment. Ownership of FHLB and Federal Reserve stocks are restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB and Federal Reserve stock is equal to the carrying amount. Other Equity Securities : The fair value of equity securities is based on quoted prices in active markets for identical assets to determine the fair value. If quoted prices are not available to determine fair value, the Company estimates the fair values by using independent pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Other Real Estate Owned (“OREO”) : 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, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of 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, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of 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, 2024 and December 31, 2023 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair June 30, 2024 Taxable municipals $ 552 $ — $ (93) $ 459 Tax exempt bank-qualified municipals 52,897 — (4,880) 48,017 $ 53,449 $ — $ (4,973) $ 48,476 December 31, 2023 Taxable municipals $ 551 $ — $ (73) $ 478 Tax exempt bank-qualified municipals 53,065 25 (3,136) 49,954 $ 53,616 $ 25 $ (3,209) $ 50,432
Schedule of 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, 2024 and December 31, 2023 were as follows: (dollars in thousands) Amortized Cost Gross Gross Estimated Fair June 30, 2024 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 76,502 $ 160 $ (4,585) $ 72,077 SBA securities 5,229 6 (106) 5,129 U.S. Treasury 2,733 — (360) 2,373 U.S. Agency 2,000 — (337) 1,663 Collateralized mortgage obligations 44,040 13 (3,877) 40,176 Taxable municipals 1,528 — (101) 1,427 Tax exempt bank-qualified municipals 830 — (22) 808 $ 132,862 $ 179 $ (9,388) $ 123,653 December 31, 2023 U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ 77,031 $ 631 $ (3,228) $ 74,434 SBA securities 5,886 5 (109) 5,782 U.S. Treasury 2,760 — (343) 2,417 U.S. Agency 2,000 — (330) 1,670 (dollars in thousands) Amortized Cost Gross Gross Estimated Fair Collateralized mortgage obligations 46,330 173 (3,002) 43,501 Taxable municipals 1,528 — (107) 1,421 Tax exempt bank-qualified municipals 831 — (21) 810 $ 136,366 $ 809 $ (7,140) $ 130,035
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, 2024 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, 2024 Due in one year or less $ — $ — $ 520 $ 518 Due after one year through five years — — 10,474 9,270 Due after five years through ten years 21,202 19,405 17,406 15,816 Due after ten years 32,247 29,071 104,462 98,049 $ 53,449 $ 48,476 $ 132,862 $ 123,653
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, 2024 and 2023 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
Schedule of 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, 2024 and December 31, 2023 are summarized as follows: Less than 12 Months 12 Months or Longer Total (dollars in thousands) Unrealized Estimated Unrealized Estimated Unrealized Estimated June 30, 2024: Available-for-sale debt securities: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (1,081) $ 38,482 $ (3,504) $ 27,192 $ (4,585) $ 65,674 SBA securities — 175 (106) 3,393 (106) 3,568 U.S. Treasury — — (360) 2,373 (360) 2,373 U.S. Agency — — (337) 1,663 (337) 1,663 Collateralized mortgage obligations (250) 3,429 (3,627) 33,570 (3,877) 36,999 Taxable municipals — — (101) 927 (101) 927 Tax exempt bank-qualified municipals — — (22) 808 (22) 808 $ (1,331) $ 42,086 $ (8,057) $ 69,926 $ (9,388) $ 112,012 December 31, 2023: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities: $ (160) $ 23,738 $ (3,068) $ 20,951 $ (3,228) $ 44,689 SBA securities (8) 2,193 (101) 1,790 (109) 3,983 U.S. Treasury — — (343) 2,417 (343) 2,417 U.S. Agency — — (330) 1,670 (330) 1,670 Collateralized mortgage obligations (311) 15,684 (2,691) 23,360 (3,002) 39,044 Taxable municipals — — (107) 921 (107) 921 Tax exempt bank-qualified municipals — — (21) 810 (21) 810 $ (479) $ 41,615 $ (6,661) $ 51,919 $ (7,140) $ 93,534
Schedule of Restricted Stock Investments	The table below summarizes the Company’s restricted stock investments at June 30, 2024 and December 31, 2023: (dollars in thousands) June 30, December 31, Federal Reserve Bank $ 7,453 $ 7,430 Federal Home Loan Bank 9,445 8,625 $ 16,898 $ 16,055
Schedule of Activity in Qualifying Low Income Housing Projects	The following table presents activity in qualifying low income housing projects for the three and six months ended June 30, 2024 and 2023 follows: Three Months Ended Six Months Ended (dollars in thousands) June 30, June 30, June 30, June 30, Proportional amortization $ (15) $ — $ (51) $ — Tax credits 87 — 136 — Contributions 155 — 155 —

LOANS AND ALLOWANCE FOR CREDI_2

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Schedule of Loan Portfolio	The composition of the Company’s loan portfolio at June 30, 2024 and December 31, 2023 was as follows: (dollars in thousands) June 30, December 31, Construction and land development $ 205,072 $ 243,521 Real estate - other: 1-4 family residential 157,323 143,903 Multifamily residential 187,960 221,247 Commercial real estate and other 1,043,662 1,024,243 Commercial and industrial 283,203 320,142 Consumer 397 4,386 Loans held for investment (1) 1,877,617 1,957,442 Allowance for credit losses (23,788) (22,569) Loans held for investment, net $ 1,853,829 $ 1,934,873 (1) Loans held for investment includes net unearned fees of $1.7 million and $2.3 million and net unearned discounts of $1.3 million and $1.4 million at June 30, 2024 and December 31, 2023, 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, 2024 follows: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2024 2023 2022 2021 2020 Prior Total June 30, 2024 Construction and land development Pass $ — $ 27,832 $ 101,883 $ 47,522 $ 16,189 $ 945 $ — $ — $ 194,371 Special mention — — — — — — — — — Substandard — — 10,614 — — 87 — — 10,701 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development — 27,832 112,497 47,522 16,189 1,032 — — 205,072 Real estate - other: 1-4 family residential Pass 1,430 23,623 33,534 18,083 6,786 17,758 52,365 — 153,579 Special mention — — — — — 849 — — 849 Substandard — — 2,895 — — — — — 2,895 Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1-4 family residential 1,430 23,623 36,429 18,083 6,786 18,607 52,365 — 157,323 Multifamily residential Pass — 18,809 57,397 66,318 5,430 35,310 — — 183,264 Special mention — — — — — — — — — Substandard — — 4,696 — — — — — 4,696 Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily residential — 18,809 62,093 66,318 5,430 35,310 — — 187,960 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2024 2023 2022 2021 2020 Prior Total June 30, 2024 Commercial real estate and other Pass 38,656 67,225 305,860 282,866 51,336 236,510 48,323 — 1,030,776 Special mention — — 3,832 1,159 2,286 3,903 946 498 12,624 Substandard — — — — — 262 — — 262 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate and other 38,656 67,225 309,692 284,025 53,622 240,675 49,269 498 1,043,662 Commercial and industrial Pass 15,584 24,522 47,398 9,610 5,459 17,888 143,828 — 264,289 Special mention — — — 1,363 — 1,203 11,822 — 14,388 Substandard — — 335 52 — 1,218 2,921 — 4,526 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and industrial 15,584 24,522 47,733 11,025 5,459 20,309 158,571 — 283,203 Consumer Pass 265 — — 30 — 10 92 — 397 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 265 — — 30 — 10 92 — 397 Total loans $ 55,935 $ 162,011 $ 568,444 $ 427,003 $ 87,486 $ 315,943 $ 260,297 $ 498 $ 1,877,617 Total by risk rating: Pass $ 55,935 $ 162,011 $ 546,072 $ 424,429 $ 85,200 $ 308,421 $ 244,608 $ — $ 1,826,676 Special mention — — 3,832 2,522 2,286 5,955 12,768 498 27,861 Substandard — — 18,540 52 — 1,567 2,921 — 23,080 Doubtful — — — — — — — — — Loss — — — — — — — — — Total loans $ 55,935 $ 162,011 $ 568,444 $ 427,003 $ 87,486 $ 315,943 $ 260,297 $ 498 $ 1,877,617 The risk category of loans by class of loans and origination year as of December 31, 2023 follows: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total December 31, 2023 Construction and land development Pass $ 25,113 $ 127,496 $ 71,199 $ 17,022 $ 2,071 $ 528 $ — $ — $ 243,429 Special mention — — — — — — — — — Substandard — — — — — 92 — — 92 Doubtful — — — — — — — — — Loss — — — — — — — — — Total construction and land development 25,113 127,496 71,199 17,022 2,071 620 — — 243,521 Real estate - other: 1-4 family residential Pass 24,928 35,670 20,207 6,887 4,884 15,582 35,645 100 143,903 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total 1-4 family residential 24,928 35,670 20,207 6,887 4,884 15,582 35,645 100 143,903 Multifamily residential Pass 18,803 61,677 73,365 5,712 27,292 21,245 149 — 208,243 Special mention — — — — — — — — — Substandard — 13,004 — — — — — — 13,004 Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily residential 18,803 74,681 73,365 5,712 27,292 21,245 149 — 221,247 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Commercial real estate and other Pass 76,434 304,524 287,245 57,736 51,992 203,976 36,543 1,626 1,020,076 Special mention — 2,701 — — — — 295 — 2,996 Substandard — — — — — 1,171 — — 1,171 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate and other 76,434 307,225 287,245 57,736 51,992 205,147 36,838 1,626 1,024,243 Commercial and industrial Pass 46,701 70,658 12,883 7,095 8,266 13,715 153,712 1,877 314,907 Special mention — — — — — — — — — Substandard — 346 64 — 1,208 121 3,097 399 5,235 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial and industrial 46,701 71,004 12,947 7,095 9,474 13,836 156,809 2,276 320,142 Consumer Pass 163 — 39 91 6 11 4,076 — 4,386 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 163 — 39 91 6 11 4,076 — 4,386 Total loans $ 192,142 $ 616,076 $ 465,002 $ 94,543 $ 95,719 $ 256,441 $ 233,517 $ 4,002 $ 1,957,442 Total by risk rating: Pass $ 192,142 $ 600,025 $ 464,938 $ 94,543 $ 94,511 $ 255,057 $ 230,125 $ 3,603 $ 1,934,944 Special mention — 2,701 — — — — 295 — 2,996 Substandard — 13,350 64 — 1,208 1,384 3,097 399 19,502 Doubtful — — — — — — — — — Loss — — — — — — — — — Total loans $ 192,142 $ 616,076 $ 465,002 $ 94,543 $ 95,719 $ 256,441 $ 233,517 $ 4,002 $ 1,957,442 A summary of gross charge-offs by class of loans and origination year for the six months ended June 30, 2024 and 2023 follows: Term Loans Gross Charge-offs by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis (dollars in thousands) 2024 2023 2022 2021 2020 Prior Total Six Months Ended June 30, 2024 Construction and land development $ — $ — $ — $ — $ — $ — $ — $ — $ — Real estate - other: 1-4 family residential — — — — — — 1 — 1 Multifamily residential — — 1,456 — — — — — 1,456 Commercial real estate and other — — — — — — — — — Commercial and industrial — — — — — — — — — Consumer — — — — — — — — — Total $ — $ — $ 1,456 $ — $ — $ — $ 1 $ — $ 1,457 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 Six Months Ended June 30, 2023 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 $ — $ — $ — $ 15 $ — $ 21 $ — $ — $ 36
Schedule of Past Due Loans	A summary of past due loans as of June 30, 2024 and December 31, 2023 follows: (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Nonaccrual Total June 30, 2024 Construction and land development $ — $ — $ — $ — $ 205,072 $ — $ 205,072 Real estate - other: 1-4 family residential — — — — 157,323 — 157,323 Multifamily residential — — — — 183,264 4,696 187,960 Commercial real estate and other — — — — 1,043,662 — 1,043,662 Commercial and industrial — — — — 283,203 — 283,203 Consumer — — — — 397 — 397 $ — $ — $ — $ — $ 1,872,921 $ 4,696 $ 1,877,617 (dollars in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Nonaccrual Total December 31, 2023 Construction and land development $ — $ — $ — $ — $ 243,521 $ — $ 243,521 Real estate - other: 1-4 family residential — — — — 143,903 — 143,903 Multifamily residential — — — — 208,243 13,004 221,247 Commercial real estate and other — — — — 1,024,243 — 1,024,243 Commercial and industrial 19 — — 19 320,123 — 320,142 Consumer — — — — 4,386 — 4,386 $ 19 $ — $ — $ 19 $ 1,944,419 $ 13,004 $ 1,957,442
Schedule of Nonaccrual Loans	A summary of total nonaccrual loans and the amount of nonaccrual loans with no related ACL as of June 30, 2024 and December 31, 2023 follows: June 30, 2024 December 31, 2023 (dollars in thousands) Total Nonaccrual Total Nonaccrual Construction and land development $ — $ — $ — $ — Real estate - other: 1-4 family residential — — — — Multifamily residential 4,696 4,696 13,004 13,004 Commercial real estate and other — — — — Commercial and industrial — — — — Consumer — — — — $ 4,696 $ 4,696 $ 13,004 $ 13,004
Schedule 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) 2024 2023 2024 2023 Allowance for loan losses (ALL) Balance, beginning of period $ 22,254 $ 22,391 $ 22,569 $ 17,099 Adoption of ASU No. 2016-13 (1) — — — 5,027 Provision for loan losses 2,990 120 2,676 398 Charge-offs (1,456) (9) (1,457) (36) Recoveries — — — 14 Net charge-offs (1,456) (9) (1,457) (22) Balance, end of period $ 23,788 $ 22,502 $ 23,788 $ 22,502 Reserve for unfunded loan commitments Balance, beginning of period $ 916 $ 1,673 $ 933 $ 1,310 Adoption of ASU No. 2016-13 (1) — — — 439 Reversal of credit losses for unfunded loan commitments (97) (135) (114) (211) Balance, end of period 819 1,538 819 1,538 Allowance for credit losses (ACL), end of period $ 24,607 $ 24,040 $ 24,607 $ 24,040 (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. A summary of changes in the ALL by loan portfolio segment for the periods indicated follows: (dollars in thousands) Construction and Land Development Real Estate - Commercial & Industrial Consumer Total Three Months Ended June 30, 2024 Beginning of period $ 2,133 $ 16,572 $ 3,538 $ 11 $ 22,254 Provision for (reversal of) loan losses 809 1,932 257 (8) 2,990 Charge-offs — (1,456) — — (1,456) Recoveries — — — — — Net charge-offs — (1,456) — — (1,456) End of period $ 2,942 $ 17,048 $ 3,795 $ 3 $ 23,788 Three Months Ended June 30, 2023 Beginning of period $ 3,397 $ 14,699 $ 4,241 $ 54 $ 22,391 Provision for (reversal of) 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 Six Months Ended June 30, 2024 Beginning of period $ 2,032 $ 16,280 $ 4,242 $ 15 $ 22,569 Provision for (reversal of) loan losses 910 2,225 (447) (12) 2,676 Charge-offs — (1,457) — — (1,457) Recoveries — — — — — End of period $ 2,942 $ 17,048 $ 3,795 $ 3 $ 23,788 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 for (reversal of) loan losses 374 435 (393) (18) 398 Charge-offs — (12) (24) — (36) Recoveries — — 14 — 14 End of period $ 3,556 $ 15,097 $ 3,808 $ 41 $ 22,502 (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, 2024
Transfers and Servicing [Abstract]
Schedule of Change in SBA Servicing Asset	A summary of changes in the SBA servicing asset for the three and six months ended June 30, 2024 and 2023 follows: Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Balance, beginning of period $ 624 $ 684 $ 546 $ 514 Additions — 24 109 216 Amortization (1) (103) (25) (134) (47) Balance, end of period $ 521 $ 683 $ 521 $ 683 (1) Amortization included accelerated amortization of $80 thousand and zero for the three months ended June 30, 2024 and 2023, respectively, and $90 thousand and $3 thousand for the six months ended June 30, 2024 and 2023, respectively.
Schedule of Significant Valuation Assumptions for the SBA Servicing Asset	The significant assumptions used in the valuation of the SBA servicing asset at June 30, 2024 and December 31, 2023 included: (dollars in thousands) June 30, December 31, Discount rate: Range 6.6% – 24.7% 10.5% – 26.2% Weighted average 14.0% 16.1% Prepayment speed: Range 11.9% – 38.0% 11.2% – 48.1% Weighted average 19.6% 19.0%
Schedule of Components of Net Servicing Fees Included in Noninterest Income	The following table presents the components of net servicing (expenses) fees, included in servicing and related income on loans, net in the consolidated statements of income, for the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Contractually specified fees $ 91 $ 104 183 196 Amortization (103) (25) (134) (47) Net servicing (expenses) fees $ (12) $ 79 $ 49 $ 149

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule 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, 2024 and 2023. Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 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 $ (3,055) $ (2,692) $ (2,990) $ (2,601) Amortization (65) (90) (130) (181) Balance, end of period (3,120) (2,782) (3,120) (2,782) Net core deposit intangible, end of period $ 1,065 $ 1,403 $ 1,065 $ 1,403
Schedule of Future Estimated Amortization Expense	Future estimated amortization expense for each of the next five years is as follows: (dollars in thousands) Amount Remainder of 2024 $ 128 2025 237 2026 217 2027 205 2028 134 Thereafter 144 $ 1,065

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2024
Deposits [Abstract]
Schedule of Maturities of Time Deposits	At June 30, 2024, the scheduled maturities of time deposits are as follows: (dollars in thousands) Amount Remainder of 2024 $ 212,680 2025 35,192 2026 4,256 2027 74 2028 and thereafter 252 $ 252,454

BORROWING ARRANGEMENTS (Tables)

BORROWING ARRANGEMENTS (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Outstanding Borrowings	A summary of outstanding borrowings as of June 30, 2024 and December 31, 2023 follows: (dollars in thousands) June 30, December 31, FHLB advances $ 25,000 $ 85,000 Subordinated notes 17,913 17,865 Total borrowings $ 42,913 $ 102,865

EARNINGS PER SHARE (_EPS_) (Tab

EARNINGS PER SHARE (“EPS”) (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of 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, 2024 and 2023: Three Months Ended Six Months Ended (dollars in thousands, except share and per share data) 2024 2023 2024 2023 Net income $ 190 $ 6,718 $ 5,125 $ 14,942 Weighted average common shares outstanding - basic 18,537,507 18,287,595 18,482,177 18,172,083 Dilutive effect of outstanding: Stock options and unvested stock grants 262,006 308,633 318,437 440,861 Weighted average common shares outstanding - diluted 18,799,513 18,596,228 18,800,614 18,612,944 Earnings per common share - basic $ 0.01 $ 0.37 $ 0.28 $ 0.82 Earnings per common share - diluted $ 0.01 $ 0.36 $ 0.27 $ 0.80

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
Schedule of 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, 2024 and 2023 follows: Three Months Ended Six Months Ended (dollars in thousands) 2024 2023 2024 2023 Balance, beginning of period $ 5,313 $ 8,052 $ 5,928 $ 8,073 New credit granted — — — — Repayments (18) (320) (633) (341) Balance, end of period $ 5,295 $ 7,732 $ 5,295 $ 7,732

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of 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, 2024 and December 31, 2023: (dollars in thousands) June 30, December 31, Commitments to extend credit $ 368,082 $ 405,854 Letters of credit issued to customers 3,434 4,939 Commitments to contribute capital to other equity investments 2,843 3,170 $ 374,359 $ 413,963

STOCK-BASED COMPENSATION PLAN (

STOCK-BASED COMPENSATION PLAN (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Changes in Outstanding Stock Options	A summary of changes in outstanding stock options during the three and six months ended June 30, 2024 and 2023 are presented below: Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 (dollars in thousands, except share data) Shares Weighted Shares Weighted Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Outstanding at beginning of period 175,363 $ 9.48 272,813 $ 9.30 Granted — $ — — $ — Exercised — $ — (81,400) $ 8.68 Expired — $ — (750) $ 5.93 Forfeited — $ — (15,300) $ 10.75 Outstanding at end of period 175,363 $ 9.47 175,363 $ 9.47 3.1 $ 701 Options exercisable 169,163 $ 9.43 169,163 $ 9.43 2.9 $ 683 Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 (dollars in thousands, except share data) Shares Weighted Shares Weighted Weighted Average Remaining Contractual Term (Years) 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
Schedule 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, 2024 and 2023 is presented below: Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 Restricted Weighted Average Grant Date Fair Value Restricted Weighted Average Grant Date Fair Value Unvested at beginning of period 691,011 $ 13.13 637,899 $ 13.11 Granted — $ — 168,035 $ 15.25 Vested (28,704) $ 14.63 (138,788) $ 15.83 Forfeited (1,191) $ 16.80 (6,030) $ 15.76 Unvested at end of period 661,116 $ 13.06 661,116 $ 13.06 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.

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	6 Months Ended
	Jun. 30, 2024
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Schedule 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, 2024: Total Capital (to Risk-Weighted Assets) $ 297,449 14.34 % $ 165,925 8.0 % $ 207,406 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 275,575 13.29 % 124,444 6.0 % 165,925 8.0 % CET1 Capital (to Risk-Weighted Assets) 275,575 13.29 % 93,333 4.5 % 134,814 6.5 % Tier 1 Capital (to Average Assets) 275,575 12.16 % 90,663 4.0 % 113,329 5.0 % As of December 31, 2023: Total Capital (to Risk-Weighted Assets) $ 289,743 13.51 % $ 171,575 8.0 % $ 214,469 10.0 % Tier 1 Capital (to Risk-Weighted Assets) 270,341 12.61 % 128,681 6.0 % 171,575 8.0 % CET1 Capital (to Risk-Weighted Assets) 270,341 12.61 % 96,511 4.5 % 139,405 6.5 % Tier 1 Capital (to Average Assets) 270,341 11.65 % 92,818 4.0 % 116,022 5.0 %

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule 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, 2024 and December 31, 2023, is summarized as follows: June 30, 2024 December 31, 2023 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 $ 29,153 $ 29,153 $ 33,008 $ 33,008 Fed funds and interest-bearing balances Level 1 75,580 75,580 53,785 53,785 Debt securities available for sale Level 1/2 123,653 123,653 130,035 130,035 Debt securities held to maturity Level 2 53,449 48,476 53,616 50,432 Loans held for sale Level 2 6,982 7,524 7,349 7,834 Loans held for investment, net Level 3 1,853,829 1,805,281 1,934,873 1,883,154 Restricted stock, at cost Level 2 16,898 16,898 16,055 16,055 Other equity securities Level 2 9,368 9,368 9,187 9,187 Accrued interest receivable Level 2 7,658 7,658 7,301 7,301 Financial liabilities: Deposits Level 2 1,935,862 1,935,152 1,943,556 1,943,007 Borrowings Level 2 42,913 42,752 102,865 102,447 Accrued interest payable Level 2 1,278 1,278 477 477
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, 2024 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 72,077 $ — $ 72,077 SBA securities — 5,129 — 5,129 U.S. Treasury 2,373 — — 2,373 U.S. Agency — 1,663 — 1,663 Collateralized mortgage obligations — 40,176 — 40,176 Taxable municipals — 1,427 — 1,427 Tax exempt bank-qualified municipals — 808 — 808 $ 2,373 $ 121,280 $ — $ 123,653 December 31, 2023 Securities available for sale: U.S. government and agency and government sponsored enterprise securities: Mortgage-backed securities $ — $ 74,434 $ — $ 74,434 SBA securities — 5,782 — 5,782 U.S. Treasury 2,417 — — 2,417 U.S. Agency — 1,670 — 1,670 Collateralized mortgage obligations — 43,501 — 43,501 Taxable municipals — 1,421 — 1,421 Tax exempt bank-qualified municipals — 810 — 810 $ 2,417 $ 127,618 $ — $ 130,035
Schedule of Fair Value Measurements, Nonrecurring	The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2024 and December 31, 2023. Fair Value Measurement Level Quoted Prices in Active Markets for Significant Other Significant Fair Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Value (Level 1) (Level 2) (Level 3) June 30, 2024 Collateral dependent loans (1) : Multifamily Residential $ 4,697 $ — $ — $ 4,697 December 31, 2023 Collateral dependent loans (1) : Multifamily Residential $ 13,000 $ — $ — $ 13,000 (1) Collateral-dependent loans whose fair value is based upon appraisals.
Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis are summarized below as of June 30, 2024 and December 31, 2023. Asset Fair Valuation Unobservable % or Range % (dollars in thousands) Value Technique Input (Weighted Average) June 30, 2024 Multifamily Residential $ 4,697 Income approach Capitalization rate 5.75% Vacancy rate 17.50% December 31, 2023 Multifamily Residential $ 13,000 Income approach Capitalization rate 3.84%-4.94% (4.50%)

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 ($)	Jun. 30, 2024 USD ($) office segment	Jul. 17, 2024 full_service_bank_branch	Jul. 17, 2024 loan_production_office	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of branch offices | office		14
Number of reportable segments | segment		1
Decrease in retained earnings		$ (293,219)			$ (292,499)	$ (288,152)	$ (273,749)	$ (267,539)	$ (260,355)
Allowance for credit losses - loans	$ 17,099	23,788			22,254	22,569	22,502	22,391	17,099
Allowance for credit losses - unfunded loan commitments	1,310	819			916	933	1,538	1,673	1,310
Deferred taxes, net		11,080				11,137
Bay Area | California BanCorp | Subsequent Event
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of properties acquired			1	4
Southern California Region | California BanCorp | Subsequent Event
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of properties acquired | full_service_bank_branch			13
Construction and Land Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	2,301	$ 2,942			2,133	2,032	3,556	3,397	2,301
Maximum LTV ratio		75%
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	28	$ 3			11	15	41	54	28
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		$ (75,700)			(75,510)	(70,575)	$ (59,607)	(52,889)	(48,516)
Adoption of ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in retained earnings									3,851
Adjustment to allowance for credit losses	5,500
Allowance for credit losses - loans	5,027								5,027
Allowance for credit losses - unfunded loan commitments	439				$ 0	$ 0		$ 0	439
Deferred taxes, net	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								881
Adoption of ASU 2016-13 | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	31								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

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, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	$ 23,788	$ 22,254	$ 22,569	$ 22,502	$ 22,391	$ 17,099	$ 17,099
Allowance for credit losses - unfunded loan commitments	819	916	933	1,538	1,673	1,310	1,310
Construction and Land Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	2,942	2,133	2,032	3,556	3,397	2,301	2,301
Real Estate - Other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	17,048	16,572	16,280	15,097	14,699		11,691
Real Estate - Other | 1-4 family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						972
Real Estate - Other | Multifamily residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						1,331
Real Estate - Other | Commercial real estate and other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						9,388
Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	3,795	3,538	4,242	3,808	4,241	3,079	3,079
Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans	$ 3	11	15	$ 41	54	28	28
Impact of CECL Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						5,027	5,027
Allowance for credit losses - unfunded loan commitments		$ 0	$ 0		$ 0	439	439
Impact of CECL Adoption | Construction and Land Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						881	881
Impact of CECL Adoption | Real Estate - Other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans							2,983
Impact of CECL Adoption | Real Estate - Other | 1-4 family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						424
Impact of CECL Adoption | Real Estate - Other | Multifamily residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						(279)
Impact of CECL Adoption | Real Estate - Other | Commercial real estate and other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						2,838
Impact of CECL Adoption | Commercial & Industrial
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						1,132	1,132
Impact of CECL Adoption | Consumer
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						31	$ 31
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 | Real Estate - Other | 1-4 family residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						1,396
As Reported under CECL | Real Estate - Other | Multifamily residential
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						1,052
As Reported under CECL | Real Estate - Other | Commercial real estate and other
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses - loans						12,226
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

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized Cost and Fair Value of Held-to-Maturity Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	$ 53,449	$ 53,616
Gross Unrealized Gains	0	25
Gross Unrealized Losses	(4,973)	(3,209)
Estimated Fair Value	48,476	50,432
Taxable municipals
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	552	551
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(93)	(73)
Estimated Fair Value	459	478
Tax exempt bank-qualified municipals
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	52,897	53,065
Gross Unrealized Gains	0	25
Gross Unrealized Losses	(4,880)	(3,136)
Estimated Fair Value	$ 48,017	$ 49,954

INVESTMENT SECURITIES - Amort_2

INVESTMENT SECURITIES - Amortized Cost and Fair Value of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 132,862	$ 136,366
Gross Unrealized Gains	179	809
Gross Unrealized Losses	(9,388)	(7,140)
Estimated Fair Value	123,653	130,035
Mortgage-backed securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	76,502	77,031
Gross Unrealized Gains	160	631
Gross Unrealized Losses	(4,585)	(3,228)
Estimated Fair Value	72,077	74,434
SBA securities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	5,229	5,886
Gross Unrealized Gains	6	5
Gross Unrealized Losses	(106)	(109)
Estimated Fair Value	5,129	5,782
U.S. Treasury
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	2,733	2,760
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(360)	(343)
Estimated Fair Value	2,373	2,417
U.S. Agency
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	2,000	2,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(337)	(330)
Estimated Fair Value	1,663	1,670
Collateralized mortgage obligations
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	44,040	46,330
Gross Unrealized Gains	13	173
Gross Unrealized Losses	(3,877)	(3,002)
Estimated Fair Value	40,176	43,501
Taxable municipals
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	1,528	1,528
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(101)	(107)
Estimated Fair Value	1,427	1,421
Tax exempt bank-qualified municipals
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	830	831
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(22)	(21)
Estimated Fair Value	$ 808	$ 810

INVESTMENT SECURITIES - Narrati

INVESTMENT SECURITIES - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($) security	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) security	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) security
Debt Securities, Available-for-Sale [Line Items]
Accrued interest receivable on debt securities	$ 775		$ 775		$ 788
Held-to-maturity debt securities pledged as collateral	$ 53,449		$ 53,449		$ 53,616
Number of available-for-sale debt securities in a gross unrealized loss position | security	84		84		76
Available-for-sale debt securities in a gross unrealized loss position	$ 9,388		$ 9,388		$ 7,140
Number of available-for-sale debt securities with total unrealized losses in a continual loss position for 12 months or longer | security	68		68		58
Unrealized losses in a continual loss position for 12 months or longer	$ 8,057		$ 8,057		$ 6,661
Net unrealized loss on available-for-sale debt securities			9,200		6,300
Net unrealized loss on available-for-sale debt securities, net of tax	6,500		6,500		4,500
Debt securities available for sale	$ 123,653		$ 123,653		$ 130,035
Number of held-to-maturity debt securities | security	61		61		58
Debt securities held to maturity	$ 48,476		$ 48,476		$ 50,432
Unrealized losses on held-to-maturity debt securities	4,973		4,973		3,209
Debt securities held-to-maturity, unrealized loss position, fair value					48,300
Provision for credit losses on held-to-maturity debt securities	0	$ 0	0	$ 0
Provision for credit losses on available-for-sale debt securities	0	0	0	0
Federal Reserve Bank stock purchased	12	40	23	54
FHLB stock purchased	820	1,400	820	1,400
Standard & Poor's, AA Rating And Above
Debt Securities, Available-for-Sale [Line Items]
Debt securities available for sale					1,400
Held-to-maturity debt securities	45,200		45,200		47,000
Standard & Poor's, A+ Rating
Debt Securities, Available-for-Sale [Line Items]
Debt securities available for sale					810
Standard & Poor's, AA- Rating
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities	3,200		3,200		3,400
Taxable municipals
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	552		552		551
Available-for-sale debt securities in a gross unrealized loss position	101		101		107
Unrealized losses in a continual loss position for 12 months or longer	101		101		107
Debt securities available for sale	1,427		1,427		1,421
Debt securities held to maturity	459		459		478
Unrealized losses on held-to-maturity debt securities	93		93		73
Tax exempt bank-qualified municipals
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	52,897		52,897		53,065
Available-for-sale debt securities in a gross unrealized loss position	22		22		21
Unrealized losses in a continual loss position for 12 months or longer	22		22		21
Debt securities available for sale	808		808		810
Debt securities held to maturity	48,017		48,017		49,954
Unrealized losses on held-to-maturity debt securities	4,880		4,880		3,136
Other Bank Stock
Debt Securities, Available-for-Sale [Line Items]
Equity securities without readily determinable fair values	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	7,200		7,200		7,000
Impairment loss from change in fair value of other equity securities	0	0	0	0
Payments to equity method investments	170		97
Net capital contributions made to equity investments		$ 1,500		$ 2,100
Limited Partnership
Debt Securities, Available-for-Sale [Line Items]
Affordable housing projects, aggregate funding commitment	2,000		2,000		2,000
Affordable housing projects, unfunded portion of commitment	1,400		1,400		1,500
Impairment loss from change in fair value of affordable housing project investment			0		0
Line of Credit | Federal Reserve Bank | Collateralized Line of Credit
Debt Securities, Available-for-Sale [Line Items]
Collateralized line of credit	45,300		45,300		47,300
Asset Pledged as Collateral | Federal Reserve Bank Advances
Debt Securities, Available-for-Sale [Line Items]
Held-to-maturity debt securities pledged as collateral	$ 53,400		$ 53,400		$ 53,600

INVESTMENT SECURITIES - Debt Se

INVESTMENT SECURITIES - Debt Securities Classified by Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
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	21,202
Due after ten years	32,247
Amortized Cost	53,449	$ 53,616
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	19,405
Due after ten years	29,071
Held-to-Maturity, Estimated Fair Value	48,476	50,432
Available-for-Sale, Amortized Cost
Due in one year or less	520
Due after one year through five years	10,474
Due after five years through ten years	17,406
Due after ten years	104,462
Amortized Cost	132,862	136,366
Available-for-Sale, Estimated Fair Value
Due in one year or less	518
Due after one year through five years	9,270
Due after five years through ten years	15,816
Due after ten years	98,049
Available-for-Sale, Estimated Fair Value	$ 123,653	$ 130,035

INVESTMENT SECURITIES - Gross R

INVESTMENT SECURITIES - Gross Realized Gains (Losses) of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Gross gains on sales and calls	$ 0	$ 181	$ 0	$ 181
Gross losses on sales and calls	0	(147)	0	(147)
Gain on sale of available-for-sale debt securities	0	34	0	34
Proceeds from sales and calls	$ 0	$ 17,307	$ 0	$ 17,312

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, 2024	Dec. 31, 2023
Available-for-sale debt securities:
Less than 12 months, unrealized losses	$ (1,331)	$ (479)
Less than 12 months, estimated fair value	42,086	41,615
12 months or longer, unrealized losses	(8,057)	(6,661)
12 months or longer, estimated fair value	69,926	51,919
Total, unrealized losses	(9,388)	(7,140)
Total, estimated fair value	112,012	93,534
Mortgage-backed securities
Available-for-sale debt securities:
Less than 12 months, unrealized losses	(1,081)	(160)
Less than 12 months, estimated fair value	38,482	23,738
12 months or longer, unrealized losses	(3,504)	(3,068)
12 months or longer, estimated fair value	27,192	20,951
Total, unrealized losses	(4,585)	(3,228)
Total, estimated fair value	65,674	44,689
SBA securities
Available-for-sale debt securities:
Less than 12 months, unrealized losses	0	(8)
Less than 12 months, estimated fair value	175	2,193
12 months or longer, unrealized losses	(106)	(101)
12 months or longer, estimated fair value	3,393	1,790
Total, unrealized losses	(106)	(109)
Total, estimated fair value	3,568	3,983
U.S. Treasury
Available-for-sale debt securities:
Less than 12 months, unrealized losses	0	0
Less than 12 months, estimated fair value	0	0
12 months or longer, unrealized losses	(360)	(343)
12 months or longer, estimated fair value	2,373	2,417
Total, unrealized losses	(360)	(343)
Total, estimated fair value	2,373	2,417
U.S. Agency
Available-for-sale debt securities:
Less than 12 months, unrealized losses	0	0
Less than 12 months, estimated fair value	0	0
12 months or longer, unrealized losses	(337)	(330)
12 months or longer, estimated fair value	1,663	1,670
Total, unrealized losses	(337)	(330)
Total, estimated fair value	1,663	1,670
Collateralized mortgage obligations
Available-for-sale debt securities:
Less than 12 months, unrealized losses	(250)	(311)
Less than 12 months, estimated fair value	3,429	15,684
12 months or longer, unrealized losses	(3,627)	(2,691)
12 months or longer, estimated fair value	33,570	23,360
Total, unrealized losses	(3,877)	(3,002)
Total, estimated fair value	36,999	39,044
Taxable municipals
Available-for-sale debt securities:
Less than 12 months, unrealized losses	0	0
Less than 12 months, estimated fair value	0	0
12 months or longer, unrealized losses	(101)	(107)
12 months or longer, estimated fair value	927	921
Total, unrealized losses	(101)	(107)
Total, estimated fair value	927	921
Tax exempt bank-qualified municipals
Available-for-sale debt securities:
Less than 12 months, unrealized losses	0	0
Less than 12 months, estimated fair value	0	0
12 months or longer, unrealized losses	(22)	(21)
12 months or longer, estimated fair value	808	810
Total, unrealized losses	(22)	(21)
Total, estimated fair value	$ 808	$ 810

INVESTMENT SECURITIES - Restric

INVESTMENT SECURITIES - Restricted Stock Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Federal Reserve Bank	$ 7,453	$ 7,430
Federal Home Loan Bank	9,445	8,625
Restricted stock investments	$ 16,898	$ 16,055

INVESTMENT SECURITIES - Activit

INVESTMENT SECURITIES - Activity in Qualifying Low Income Housing Projects (Details) - Limited Partnership - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Investment Program, Proportional Amortization Method, Elected [Table]
Proportional amortization	$ (15)	$ 0	$ (51)	$ 0
Tax credits	87	0	136	0
Contributions	$ 155	$ 0	$ 155	$ 0

LOANS AND ALLOWANCE FOR CREDI_3

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024 USD ($) apartmentUnit	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) apartmentUnit	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) property	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Jan. 01, 2023 USD ($)	Dec. 31, 2022 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledge with FHLB under blanket lien	$ 1,360,000		$ 1,360,000
Loans held for investment	1,877,617		1,877,617		$ 1,957,442
Loans held for sale, at lower of cost or fair value	6,982		6,982		7,349
Loans held for sale	7,500		7,500		7,800
Collateral dependent loan, collateral value					13,000
Foreclosed assets	0		0		0
Other real estate owned sold during the period			13,100
Loss on sale of other real estate owned			4,783	$ 0
Accrued interest receivable on loans receivable, net	6,700		6,700		6,400
(Reversal of) provision for unfunded commitment losses	(97)	$ (135)	(114)	(211)
Allowance for credit losses - unfunded loan commitments	819	$ 1,538	819	$ 1,538	933	$ 916	$ 1,673	$ 1,310	$ 1,310
Asset Pledged as Collateral | Federal Home Loan Bank Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	855,100		855,100
Asset Pledged as Collateral | Federal Reserve Bank Advances
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	115,700		115,700
Real Estate - Other | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	187,960		$ 187,960		221,247
Collateral dependent loan term			3 years
Collateral dependent loan, collateral value	4,700		$ 4,700
Collateral dependent loan, lower that collateral value	1,500		1,500
Charge-off from impairment of collateral dependent loan					1,300
Real Estate - Other | Multifamily residential | Fair Value, Nonrecurring
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collateral dependent loans					13,000
Real Estate - Other | Multifamily residential | Level 3 | Fair Value, Nonrecurring
Accounts, Notes, Loans and Financing Receivable [Line Items]
Collateral dependent loans	$ 4,697		$ 4,697		$ 13,000
Real Estate - Other | Asset Pledged as Collateral | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of properties	8		8		3
Financing Receivable | Credit Concentration Risk | Real Estate - Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percent of total loans			85%		83%

LOANS AND ALLOWANCE FOR CREDI_4

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	$ 1,877,617		$ 1,957,442
Allowance for credit losses	(23,788)	$ (22,254)	(22,569)	$ (22,502)	$ (22,391)	$ (17,099)	$ (17,099)
Loans held for investment, net	1,853,829		1,934,873
Net unearned fees	1,700		2,300
Net unearned discount	1,300		1,400
Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	205,072		243,521
Allowance for credit losses	(2,942)	(2,133)	(2,032)	(3,556)	(3,397)	(2,301)	(2,301)
Real Estate - Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	(17,048)	(16,572)	(16,280)	(15,097)	(14,699)		(11,691)
Real Estate - Other | 1-4 family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	157,323		143,903
Allowance for credit losses						(972)
Real Estate - Other | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	187,960		221,247
Allowance for credit losses						(1,331)
Real Estate - Other | Commercial real estate and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	1,043,662		1,024,243
Allowance for credit losses						(9,388)
Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	283,203		320,142
Allowance for credit losses	(3,795)	(3,538)	(4,242)	(3,808)	(4,241)	(3,079)	(3,079)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	397		4,386
Allowance for credit losses	$ (3)	$ (11)	$ (15)	$ (41)	$ (54)	$ (28)	$ (28)

LOANS AND ALLOWANCE FOR CREDI_5

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk Category of Loans by Class and Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Term Loans Amortized Cost Basis by Origination Year
Current year	$ 55,935		$ 55,935		$ 192,142
One year before current year	162,011		162,011		616,076
Two years before current year	568,444		568,444		465,002
Three years before current year	427,003		427,003		94,543
Four years before current year	87,486		87,486		95,719
Prior	315,943		315,943		256,441
Revolving Loans Amortized Cost Basis	260,297		260,297		233,517
Revolving Loans Amortized Cost Basis Converted to Term During the Period	498		498		4,002
Loans held for investment	1,877,617		1,877,617		1,957,442
Term Loans Gross Charge-offs by Origination Year
Current year			0	$ 0
One year before current year			0	0
Two years before current year			1,456	0
Three years before current year			0	15
Four years before current year			0	0
Prior			0	21
Revolving Loans Amortized Cost Basis			1	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period			0	0
Total	1,456	$ 9	1,457	36
Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		25,113
One year before current year	27,832		27,832		127,496
Two years before current year	112,497		112,497		71,199
Three years before current year	47,522		47,522		17,022
Four years before current year	16,189		16,189		2,071
Prior	1,032		1,032		620
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	205,072		205,072		243,521
Term Loans Gross Charge-offs by Origination Year
Current year			0	0
One year before current year			0	0
Two years before current year			0	0
Three years before current year			0	0
Four years before current year			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
Total	0	0	0	0
Real Estate - Other
Term Loans Gross Charge-offs by Origination Year
Total	1,456	0	1,457	12
Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
Current year	1,430		1,430		24,928
One year before current year	23,623		23,623		35,670
Two years before current year	36,429		36,429		20,207
Three years before current year	18,083		18,083		6,887
Four years before current year	6,786		6,786		4,884
Prior	18,607		18,607		15,582
Revolving Loans Amortized Cost Basis	52,365		52,365		35,645
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		100
Loans held for investment	157,323		157,323		143,903
Term Loans Gross Charge-offs by Origination Year
Current year			0	0
One year before current year			0	0
Two years before current year			0	0
Three years before current year			0	0
Four years before current year			0	0
Prior			0	12
Revolving Loans Amortized Cost Basis			1	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period			0	0
Total			1	12
Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		18,803
One year before current year	18,809		18,809		74,681
Two years before current year	62,093		62,093		73,365
Three years before current year	66,318		66,318		5,712
Four years before current year	5,430		5,430		27,292
Prior	35,310		35,310		21,245
Revolving Loans Amortized Cost Basis	0		0		149
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	187,960		187,960		221,247
Term Loans Gross Charge-offs by Origination Year
Current year			0	0
One year before current year			0	0
Two years before current year			1,456	0
Three years before current year			0	0
Four years before current year			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
Total			1,456	0
Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
Current year	38,656		38,656		76,434
One year before current year	67,225		67,225		307,225
Two years before current year	309,692		309,692		287,245
Three years before current year	284,025		284,025		57,736
Four years before current year	53,622		53,622		51,992
Prior	240,675		240,675		205,147
Revolving Loans Amortized Cost Basis	49,269		49,269		36,838
Revolving Loans Amortized Cost Basis Converted to Term During the Period	498		498		1,626
Loans held for investment	1,043,662		1,043,662		1,024,243
Term Loans Gross Charge-offs by Origination Year
Current year			0	0
One year before current year			0	0
Two years before current year			0	0
Three years before current year			0	0
Four years before current year			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
Total			0	0
Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
Current year	15,584		15,584		46,701
One year before current year	24,522		24,522		71,004
Two years before current year	47,733		47,733		12,947
Three years before current year	11,025		11,025		7,095
Four years before current year	5,459		5,459		9,474
Prior	20,309		20,309		13,836
Revolving Loans Amortized Cost Basis	158,571		158,571		156,809
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		2,276
Loans held for investment	283,203		283,203		320,142
Term Loans Gross Charge-offs by Origination Year
Current year			0	0
One year before current year			0	0
Two years before current year			0	0
Three years before current year			0	15
Four years before current year			0	0
Prior			0	9
Revolving Loans Amortized Cost Basis			0	0
Revolving Loans Amortized Cost Basis Converted to Term During the Period			0	0
Total	0	9	0	24
Consumer
Term Loans Amortized Cost Basis by Origination Year
Current year	265		265		163
One year before current year	0		0		0
Two years before current year	0		0		39
Three years before current year	30		30		91
Four years before current year	0		0		6
Prior	10		10		11
Revolving Loans Amortized Cost Basis	92		92		4,076
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	397		397		4,386
Term Loans Gross Charge-offs by Origination Year
Current year			0	0
One year before current year			0	0
Two years before current year			0	0
Three years before current year			0	0
Four years before current year			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
Total	0	$ 0	0	$ 0
Pass
Term Loans Amortized Cost Basis by Origination Year
Current year	55,935		55,935		192,142
One year before current year	162,011		162,011		600,025
Two years before current year	546,072		546,072		464,938
Three years before current year	424,429		424,429		94,543
Four years before current year	85,200		85,200		94,511
Prior	308,421		308,421		255,057
Revolving Loans Amortized Cost Basis	244,608		244,608		230,125
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		3,603
Loans held for investment	1,826,676		1,826,676		1,934,944
Pass | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		25,113
One year before current year	27,832		27,832		127,496
Two years before current year	101,883		101,883		71,199
Three years before current year	47,522		47,522		17,022
Four years before current year	16,189		16,189		2,071
Prior	945		945		528
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	194,371		194,371		243,429
Pass | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
Current year	1,430		1,430		24,928
One year before current year	23,623		23,623		35,670
Two years before current year	33,534		33,534		20,207
Three years before current year	18,083		18,083		6,887
Four years before current year	6,786		6,786		4,884
Prior	17,758		17,758		15,582
Revolving Loans Amortized Cost Basis	52,365		52,365		35,645
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		100
Loans held for investment	153,579		153,579		143,903
Pass | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		18,803
One year before current year	18,809		18,809		61,677
Two years before current year	57,397		57,397		73,365
Three years before current year	66,318		66,318		5,712
Four years before current year	5,430		5,430		27,292
Prior	35,310		35,310		21,245
Revolving Loans Amortized Cost Basis	0		0		149
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	183,264		183,264		208,243
Pass | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
Current year	38,656		38,656		76,434
One year before current year	67,225		67,225		304,524
Two years before current year	305,860		305,860		287,245
Three years before current year	282,866		282,866		57,736
Four years before current year	51,336		51,336		51,992
Prior	236,510		236,510		203,976
Revolving Loans Amortized Cost Basis	48,323		48,323		36,543
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		1,626
Loans held for investment	1,030,776		1,030,776		1,020,076
Pass | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
Current year	15,584		15,584		46,701
One year before current year	24,522		24,522		70,658
Two years before current year	47,398		47,398		12,883
Three years before current year	9,610		9,610		7,095
Four years before current year	5,459		5,459		8,266
Prior	17,888		17,888		13,715
Revolving Loans Amortized Cost Basis	143,828		143,828		153,712
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		1,877
Loans held for investment	264,289		264,289		314,907
Pass | Consumer
Term Loans Amortized Cost Basis by Origination Year
Current year	265		265		163
One year before current year	0		0		0
Two years before current year	0		0		39
Three years before current year	30		30		91
Four years before current year	0		0		6
Prior	10		10		11
Revolving Loans Amortized Cost Basis	92		92		4,076
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	397		397		4,386
Special mention
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		2,701
Two years before current year	3,832		3,832		0
Three years before current year	2,522		2,522		0
Four years before current year	2,286		2,286		0
Prior	5,955		5,955		0
Revolving Loans Amortized Cost Basis	12,768		12,768		295
Revolving Loans Amortized Cost Basis Converted to Term During the Period	498		498		0
Loans held for investment	27,861		27,861		2,996
Special mention | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		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
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	849		849		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	849		849		0
Special mention | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		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
Current year	0		0		0
One year before current year	0		0		2,701
Two years before current year	3,832		3,832		0
Three years before current year	1,159		1,159		0
Four years before current year	2,286		2,286		0
Prior	3,903		3,903		0
Revolving Loans Amortized Cost Basis	946		946		295
Revolving Loans Amortized Cost Basis Converted to Term During the Period	498		498		0
Loans held for investment	12,624		12,624		2,996
Special mention | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	1,363		1,363		0
Four years before current year	0		0		0
Prior	1,203		1,203		0
Revolving Loans Amortized Cost Basis	11,822		11,822		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	14,388		14,388		0
Special mention | Consumer
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Substandard
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		13,350
Two years before current year	18,540		18,540		64
Three years before current year	52		52		0
Four years before current year	0		0		1,208
Prior	1,567		1,567		1,384
Revolving Loans Amortized Cost Basis	2,921		2,921		3,097
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		399
Loans held for investment	23,080		23,080		19,502
Substandard | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	10,614		10,614		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	87		87		92
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	10,701		10,701		92
Substandard | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	2,895		2,895		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	2,895		2,895		0
Substandard | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		13,004
Two years before current year	4,696		4,696		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	4,696		4,696		13,004
Substandard | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	262		262		1,171
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	262		262		1,171
Substandard | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		346
Two years before current year	335		335		64
Three years before current year	52		52		0
Four years before current year	0		0		1,208
Prior	1,218		1,218		121
Revolving Loans Amortized Cost Basis	2,921		2,921		3,097
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		399
Loans held for investment	4,526		4,526		5,235
Substandard | Consumer
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Doubtful
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Doubtful | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Doubtful | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Doubtful | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Doubtful | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Doubtful | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Doubtful | Consumer
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Loss
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Loss | Construction and Land Development
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Loss | Real Estate - Other | 1-4 family residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Loss | Real Estate - Other | Multifamily residential
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Loss | Real Estate - Other | Commercial real estate and other
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Loss | Commercial & Industrial
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	0		0		0
Loss | Consumer
Term Loans Amortized Cost Basis by Origination Year
Current year	0		0		0
One year before current year	0		0		0
Two years before current year	0		0		0
Three years before current year	0		0		0
Four years before current year	0		0		0
Prior	0		0		0
Revolving Loans Amortized Cost Basis	0		0		0
Revolving Loans Amortized Cost Basis Converted to Term During the Period	0		0		0
Loans held for investment	$ 0		$ 0		$ 0

LOANS AND ALLOWANCE FOR CREDI_6

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans	$ 1,877,617	$ 1,957,442
Nonaccrual	4,696	13,004
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	19
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	19
Current
Financing Receivable, Past Due [Line Items]
Loans	1,872,921	1,944,419
Construction and Land Development
Financing Receivable, Past Due [Line Items]
Loans	205,072	243,521
Nonaccrual	0	0
Construction and Land Development | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction and Land Development | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction and Land Development | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction and Land Development | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction and Land Development | Current
Financing Receivable, Past Due [Line Items]
Loans	205,072	243,521
Real Estate - Other | 1-4 family residential
Financing Receivable, Past Due [Line Items]
Loans	157,323	143,903
Nonaccrual	0	0
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	157,323	143,903
Real Estate - Other | Multifamily residential
Financing Receivable, Past Due [Line Items]
Loans	187,960	221,247
Nonaccrual	4,696	13,004
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	183,264	208,243
Real Estate - Other | Commercial real estate and other
Financing Receivable, Past Due [Line Items]
Loans	1,043,662	1,024,243
Nonaccrual	0	0
Real Estate - Other | Commercial real estate and other | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate - Other | Commercial real estate and other | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate - Other | Commercial real estate and other | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate - Other | Commercial real estate and other | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate - Other | Commercial real estate and other | Current
Financing Receivable, Past Due [Line Items]
Loans	1,043,662	1,024,243
Commercial & Industrial
Financing Receivable, Past Due [Line Items]
Loans	283,203	320,142
Nonaccrual	0	0
Commercial & Industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	19
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	19
Commercial & Industrial | Current
Financing Receivable, Past Due [Line Items]
Loans	283,203	320,123
Consumer
Financing Receivable, Past Due [Line Items]
Loans	397	4,386
Nonaccrual	0	0
Consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | Over 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | Current
Financing Receivable, Past Due [Line Items]
Loans	$ 397	$ 4,386

LOANS AND ALLOWANCE FOR CREDI_7

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	$ 4,696	$ 13,004
Nonaccrual Loans with no ACL	4,696	13,004
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	0
Nonaccrual Loans with no ACL	0	0
Real Estate - Other | Multifamily residential
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	4,696	13,004
Nonaccrual Loans with no ACL	4,696	13,004
Real Estate - Other | Commercial real estate and other
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	0	0
Nonaccrual Loans with no ACL	0	0
Commercial & Industrial
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	0	0
Nonaccrual Loans with no ACL	0	0
Consumer
Financing Receivable, Nonaccrual [Line Items]
Total Nonaccrual Loans	0	0
Nonaccrual Loans with no ACL	$ 0	$ 0

LOANS AND ALLOWANCE FOR CREDI_8

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Allowance for loan losses (ALL)
Balance, beginning of period	$ 22,254	$ 22,391	$ 22,569	$ 17,099
(Reversal of) provision for loan losses	2,990	120	2,676	398
Charge-offs	(1,456)	(9)	(1,457)	(36)
Recoveries	0	0	0	14
Net charge-offs	(1,456)	(9)	(1,457)	(22)
Balance, end of period	23,788	22,502	23,788	22,502
Reserve for unfunded loan commitments
Balance, beginning of period	916	1,673	933	1,310
(Reversal of) provision for unfunded commitment losses	(97)	(135)	(114)	(211)
Balance, end of period	819	1,538	819	1,538
Allowance for credit losses (ACL), end of period	24,607	24,040	24,607	24,040
Construction and Land Development
Allowance for loan losses (ALL)
Balance, beginning of period	2,133	3,397	2,032	2,301
(Reversal of) provision for loan losses	809	159	910	374
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs	0	0
Balance, end of period	2,942	3,556	2,942	3,556
Real Estate - Other
Allowance for loan losses (ALL)
Balance, beginning of period	16,572	14,699	16,280	11,691
(Reversal of) provision for loan losses	1,932	398	2,225	435
Charge-offs	(1,456)	0	(1,457)	(12)
Recoveries	0	0	0	0
Net charge-offs	(1,456)	0
Balance, end of period	17,048	15,097	17,048	15,097
Commercial & Industrial
Allowance for loan losses (ALL)
Balance, beginning of period	3,538	4,241	4,242	3,079
(Reversal of) provision for loan losses	257	(424)	(447)	(393)
Charge-offs	0	(9)	0	(24)
Recoveries	0	0	0	14
Net charge-offs	0	(9)
Balance, end of period	3,795	3,808	3,795	3,808
Consumer
Allowance for loan losses (ALL)
Balance, beginning of period	11	54	15	28
(Reversal of) provision for loan losses	(8)	(13)	(12)	(18)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs	0	0
Balance, end of period	3	41	3	41
Adoption of ASU 2016-13
Allowance for loan losses (ALL)
Balance, beginning of period				5,027
Reserve for unfunded loan commitments
Balance, beginning of period	$ 0	$ 0	$ 0	439
Adoption of ASU 2016-13 | Construction and Land Development
Allowance for loan losses (ALL)
Balance, beginning of period				881
Adoption of ASU 2016-13 | Real Estate - Other
Allowance for loan losses (ALL)
Balance, beginning of period				2,983
Adoption of ASU 2016-13 | Commercial & Industrial
Allowance for loan losses (ALL)
Balance, beginning of period				1,132
Adoption of ASU 2016-13 | Consumer
Allowance for loan losses (ALL)
Balance, beginning of period				$ 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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Servicing Assets at Fair Value [Line Items]
Loans serviced	$ 58,400		$ 58,400			$ 58,800
Loans serviced with related servicing asset	35,300		35,300			35,400
Servicing asset	521	$ 683	521	$ 683	$ 624	$ 546	$ 684	$ 514
Loans sold	$ 0	1,000	6,300	10,900
Gain on sale of loans		$ 77	$ 415	$ 874
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 - Change in SBA Servicing Asset (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance, beginning of period	$ 624	$ 684	$ 546	$ 514
Additions	0	24	109	216
Amortization	(103)	(25)	(134)	(47)
Balance, end of period	521	683	521	683
Accelerated amortization	$ 80	$ 0	$ 90	$ 3

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, 2024	Dec. 31, 2023
Minimum
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	6.60%	10.50%
Prepayment speed (percent)	11.90%	11.20%
Maximum
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	24.70%	26.20%
Prepayment speed (percent)	38%	48.10%
Weighted average
Servicing Assets at Fair Value [Line Items]
Discount rate (percent)	14%	16.10%
Prepayment speed (percent)	19.60%	19%

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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Transfers and Servicing [Abstract]
Contractually specified fees	$ 91	$ 104	$ 183	$ 196
Amortization	(103)	(25)	(134)	(47)
Net servicing (expenses) fees	$ (12)	$ 79	$ 49	$ 149

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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
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	5 years 7 months 6 days		5 years 7 months 6 days
Minimum
Finite-Lived Intangible Assets [Line Items]
Core deposit intangibles, amortization period	4 years 6 months		4 years 6 months
Maximum
Finite-Lived Intangible Assets [Line Items]
Core deposit intangibles, amortization period	7 years 3 months 29 days		7 years 3 months 29 days

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Core Deposit Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
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	(3,055)	(2,692)	(2,990)	(2,601)
Amortization	(65)	(90)	(130)	(181)
Balance, end of period	(3,120)	(2,782)	(3,120)	(2,782)
Future estimated amortization expense	$ 1,065	$ 1,403	$ 1,065	$ 1,403

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS - Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 128
2025	237
2026	217
2027	205
2028	134
Thereafter	144
Future estimated amortization expense	$ 1,065	$ 1,403

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Deposit Liability [Line Items]
ICS deposits	$ 239.8	$ 274.1
Percent of total deposits	12.40%	14.10%
Time deposits exceeding FDIC insurance limit	$ 131.7	$ 122.6
Brokered time deposits	103.4	107.8
Asset Pledged as Collateral | Letter of Credit
Deposit Liability [Line Items]
Collateralized deposits	$ 78.1	$ 72.7

DEPOSITS - Maturities of Time D

DEPOSITS - Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Deposits [Abstract]
Remainder of 2024	$ 212,680
2025	35,192
2026	4,256
2027	74
2028 and thereafter	252
Time deposits	$ 252,454	$ 249,830

BORROWING ARRANGEMENTS - Outsta

BORROWING ARRANGEMENTS - Outstanding Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
FHLB advances	$ 25,000	$ 85,000
Subordinated notes	17,913	17,865
Total borrowings	$ 42,913	$ 102,865

BORROWING ARRANGEMENTS - Narrat

BORROWING ARRANGEMENTS - Narrative (Details) $ in Thousands	May 28, 2020 USD ($)	Jun. 30, 2024 USD ($) lineOfCredit	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
FHLB secured line of credit		$ 484,800
FHLB secured line of credit, amount available		377,800
Loans pledge with FHLB under blanket lien		1,360,000
Loans		1,877,617	$ 1,957,442
FHLB advances		$ 25,000	$ 85,000
FHLB advances, interest rate		5.65%	5.70%
Federal Reserve secured line of credit		$ 139,500
Held-to-maturity debt securities pledged as collateral		53,449	$ 53,616
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%
Basis spread on variable interest rate	3.50%
Issuance costs	$ 475	$ 87	135
Fixed amortization term	5 years
Overnight Unsecured Line of Credit | Line of Credit
Debt Instrument [Line Items]
Number of overnight unsecured credit lines | lineOfCredit		3
Overnight unsecured credit lines		$ 75,000
Overnight unsecured credit lines, outstanding borrowings		0	0
Asset Pledged as Collateral | Federal Home Loan Bank Advances
Debt Instrument [Line Items]
FHLB secured line of credit, amount available		82,000
Loans		855,100
Asset Pledged as Collateral | Federal Reserve Bank Advances
Debt Instrument [Line Items]
Loans		115,700
Held-to-maturity debt securities pledged as collateral		$ 53,400	$ 53,600

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	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, repurchased (in shares)	0	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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income	$ 190	$ 6,718	$ 5,125	$ 14,942
Weighted average common shares outstanding - basic (in shares)	18,537,507	18,287,595	18,482,177	18,172,083
Dilutive effect of outstanding:
Stock options and unvested stock grants (in shares)	262,006	308,633	318,437	440,861
Weighted average common shares outstanding - diluted (in shares)	18,799,513	18,596,228	18,800,614	18,612,944
Earnings per common share - basic (in dollars per share)	$ 0.01	$ 0.37	$ 0.28	$ 0.82
Earnings per common share - diluted (in dollars per share)	$ 0.01	$ 0.36	$ 0.27	$ 0.80

EARNINGS PER SHARE (_EPS_) - Na

EARNINGS PER SHARE (“EPS”) - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Performance-Based Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)		275,171		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)	145,422	184,441	73,306	129,877
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)	8,000	13,000	4,000	6,547

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Federal funds and interest-bearing balances	$ 75,580		$ 75,580		$ 53,785
Beneficial Owner
Related Party Transaction [Line Items]
Percentage of voting securities (more than)	5%		5%
Director
Related Party Transaction [Line Items]
Federal funds and interest-bearing balances	$ 15,300		$ 15,300		16,400
Director | Launchpad
Related Party Transaction [Line Items]
Committed investment			2,000
Capital contributions			1,100		910
Related Party
Related Party Transaction [Line Items]
Lease expense	11	$ 11	22	$ 22
Future minimum lease payments	$ 129		$ 129		$ 151

RELATED PARTY TRANSACTIONS - Re

RELATED PARTY TRANSACTIONS - Related Party Loans Outstanding (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			$ 1,957,442
Balance, end of period	$ 1,877,617		1,877,617
Related Party
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	5,313	$ 8,052	5,928	$ 8,073
New credit granted	0	0	0	0
Repayments	(18)	(320)	(633)	(341)
Balance, end of period	$ 5,295	$ 7,732	$ 5,295	$ 7,732

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Outstanding Financial Commitments Representing Potential Credit Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments to extend credit	$ 368,082	$ 405,854
Letters of credit issued to customers	3,434	4,939
Commitments to contribute capital to other equity investments	2,843	3,170
Outstanding financial commitments	$ 374,359	$ 413,963

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Other Commitments [Line Items]
Deferred compensation agreement, benefit term			10 years
Deferred compensation agreement, expense	$ 81	$ 79	$ 162	$ 157
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	Jun. 30, 2021	Oct. 31, 2020	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Apr. 30, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost				$ 29		$ 29
Stock options exercised (in shares)				0	4,000	81,400	10,950
Intrinsic value of stock options exercised				$ 0	$ 29	$ 558	$ 78
Options granted (in shares)				0	0	0	0
Stock Options and Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation cost				$ 996	$ 1,100	$ 1,900	$ 2,800
Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation cost				$ 6		$ 85
Outstanding unvested units (in shares)				661,116	778,423	661,116	778,423	691,011	637,899	783,174	959,337
Unrecognized compensation expense				$ 6,100		$ 6,100
Weighted-average period for recognition of unrecognized compensation cost						1 year 10 months 24 days
Grant date fair value of vested units				420	$ 383	$ 2,200	$ 4,000
Tax (expense) benefit					(8)		644
Performance-Based Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Accelerated stock-based compensation				$ 0	$ 0	$ 0	$ 632
Accelerated vesting (in shares)	275,171
Outstanding unvested units (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 - Changes in Outstanding Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Shares
Outstanding at beginning of period (in shares)	175,363	292,338	272,813	326,868
Granted (in shares)	0	0	0	0
Exercised (in shares)	0	(4,000)	(81,400)	(10,950)
Expired (in shares)	0		(750)
Forfeited (in shares)	0	0	(15,300)	(27,580)
Outstanding at end of period (in shares)	175,363	288,338	175,363	288,338
Options exercisable (in shares)	169,163	260,638	169,163	260,638
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 9.48	$ 9.22	$ 9.30	$ 9.53
Granted (in dollars per share)	0	0	0	0
Exercised (in dollars per share)	0	6.61	8.68	8.53
Expired (in dollars per share)	0		5.93
Forfeited (in dollars per share)	0	0	10.75	12.79
Outstanding at end of period (in dollars per share)	9.47	9.26	9.47	9.26
Options exercisable (in dollars per share)	$ 9.43	$ 8.97	$ 9.43	$ 8.97
Weighted Average Remaining Contractual Term (Years)
Outstanding at end of period (years)			3 years 1 month 6 days	3 years 8 months 12 days
Options exercisable (years)			2 years 10 months 24 days	3 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding at end of period	$ 701	$ 1,286	$ 701	$ 1,286
Options exercisable	$ 683	$ 1,238	$ 683	$ 1,238

STOCK-BASED COMPENSATION PLAN_3

STOCK-BASED COMPENSATION PLAN - Changes in Outstanding Unvested Restricted Stock Units (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Restricted Stock Units
Restricted Shares
Unvested at beginning of period (in shares)	691,011	783,174	637,899	959,337
Granted (in shares)	0	21,324	168,035	192,258
Vested (in shares)	(28,704)	(26,075)	(138,788)	(373,172)
Forfeited (in shares)	(1,191)	0	(6,030)	0
Unvested at end of period (in shares)	661,116	778,423	661,116	778,423
Weighted Average Grant Date Fair Value
Unvested at beginning of period (in dollars per share)	$ 13.13	$ 13.18	$ 13.11	$ 11.55
Granted (in dollars per share)	0	15.16	15.25	16.73
Vested (in dollars per share)	14.63	14.67	15.83	10.80
Forfeited (in dollars per share)	16.80	0	15.76	0
Unvested at end of period (in dollars per share)	$ 13.06	$ 13.19	$ 13.06	$ 13.19
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, 2024	Dec. 31, 2023
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 - Capital Am

REGULATORY MATTERS - Capital Amounts and Ratios (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 297,449	$ 289,743
Total Capital (to Risk-Weighted Assets), Actual Ratio	0.1434	0.1351
Total Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 165,925	$ 171,575
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	$ 207,406	$ 214,469
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	$ 275,575	$ 270,341
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio	0.1329	0.1261
Tier 1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 124,444	$ 128,681
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	$ 165,925	$ 171,575
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	$ 275,575	$ 270,341
CET1 Capital (to Risk-Weighted Assets), Actual Ratio	0.1329	0.1261
CET1 Capital (to Risk-Weighted Assets), Amount of Capital Required To be Adequately Capitalized	$ 93,333	$ 96,511
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	$ 134,814	$ 139,405
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	$ 275,575	$ 270,341
Tier 1 Capital (to Average Assets), Actual Ratio	0.1216	0.1165
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Adequately Capitalized	$ 90,663	$ 92,818
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	$ 113,329	$ 116,022
Tier 1 Capital (to Average Assets), Amount of Capital Required To be Well-Capitalized under PCA Provisions, Ratio	0.050	0.050

FAIR VALUE - Fair Value Hierarc

FAIR VALUE - Fair Value Hierarchy and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financial assets:
Debt securities available for sale	$ 123,653	$ 130,035
Debt securities held to maturity	48,476	50,432
Loans held for sale	7,500	7,800
Accrued interest receivable	6,700	6,400
Carrying Value | Level 1
Financial assets:
Cash and due from banks	29,153	33,008
Fed funds and interest-bearing balances	75,580	53,785
Carrying Value | Level 2
Financial assets:
Debt securities available for sale	123,653	130,035
Debt securities held to maturity	53,449	53,616
Loans held for sale	6,982	7,349
Restricted stock, at cost	16,898	16,055
Other equity securities	9,368	9,187
Accrued interest receivable	7,658	7,301
Financial liabilities:
Deposits	1,935,862	1,943,556
Borrowings	42,913	102,865
Accrued interest payable	1,278	477
Carrying Value | Level 3
Financial assets:
Loans held for investment, net	1,853,829	1,934,873
Estimated Fair Value | Level 1
Financial assets:
Cash and due from banks	29,153	33,008
Fed funds and interest-bearing balances	75,580	53,785
Estimated Fair Value | Level 2
Financial assets:
Debt securities available for sale	123,653	130,035
Debt securities held to maturity	48,476	50,432
Loans held for sale	7,524	7,834
Restricted stock, at cost	16,898	16,055
Other equity securities	9,368	9,187
Accrued interest receivable	7,658	7,301
Financial liabilities:
Deposits	1,935,152	1,943,007
Borrowings	42,752	102,447
Accrued interest payable	1,278	477
Estimated Fair Value | Level 3
Financial assets:
Loans held for investment, net	$ 1,805,281	$ 1,883,154

FAIR VALUE - Fair Value of Asse

FAIR VALUE - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 123,653	$ 130,035
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	72,077	74,434
SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	5,129	5,782
U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	2,373	2,417
U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,663	1,670
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	40,176	43,501
Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,427	1,421
Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	808	810
Recurring Fair Value Measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	123,653	130,035
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	72,077	74,434
Recurring Fair Value Measurements | SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	5,129	5,782
Recurring Fair Value Measurements | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	2,373	2,417
Recurring Fair Value Measurements | U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,663	1,670
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	40,176	43,501
Recurring Fair Value Measurements | Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,427	1,421
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	808	810
Recurring Fair Value Measurements | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	2,373	2,417
Recurring Fair Value Measurements | Level 1 | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 1 | SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 1 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	2,373	2,417
Recurring Fair Value Measurements | Level 1 | U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 1 | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 1 | Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 1 | Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	121,280	127,618
Recurring Fair Value Measurements | Level 2 | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	72,077	74,434
Recurring Fair Value Measurements | Level 2 | SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	5,129	5,782
Recurring Fair Value Measurements | Level 2 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 2 | U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,663	1,670
Recurring Fair Value Measurements | Level 2 | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	40,176	43,501
Recurring Fair Value Measurements | Level 2 | Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,427	1,421
Recurring Fair Value Measurements | Level 2 | Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	808	810
Recurring Fair Value Measurements | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 3 | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 3 | SBA securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 3 | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 3 | U.S. Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 3 | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 3 | Taxable municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	0	0
Recurring Fair Value Measurements | Level 3 | Tax exempt bank-qualified municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 0	$ 0

FAIR VALUE - Narrative (Details

FAIR VALUE - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Nonrecurring | Real Estate - Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Partial charge-off on loan	$ (1,500)	$ 4,697	$ 1,300

FAIR VALUE - Fair Value of As_2

FAIR VALUE - Fair Value of Assets and Liabilities Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring - Real Estate - Other - Multifamily residential - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans		$ 13,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	$ 0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	$ 4,697	$ 13,000

FAIR VALUE - Quantitative Infor

FAIR VALUE - Quantitative Information About Fair Value Measurements Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring - Real Estate - Other - Multifamily residential $ in Thousands	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans		$ 13,000
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans	$ 4,697	$ 13,000
Level 3 | Capitalization rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans, range % (weighted average)	0.0575
Level 3 | Vacancy rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans, range % (weighted average)	0.1750
Level 3 | Minimum | Capitalization rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans, range % (weighted average)		0.0384
Level 3 | Maximum | Capitalization rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans, range % (weighted average)		0.0494
Level 3 | Weighted average | Capitalization rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Collateral dependent loans, range % (weighted average)		0.0450

SUBSEQUENT EVENTS - Narrative (

SUBSEQUENT EVENTS - Narrative (Details) $ in Thousands	Jul. 17, 2024 full_service_bank_branch shares	Jul. 17, 2024 loan_production_office	Jul. 17, 2024	Jun. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Subsequent Event [Line Items]
Total loans				$ 1,853,829		$ 1,934,873
Total assets				2,293,693		2,360,252
Total deposits				1,935,862		1,943,556
Total equity				293,219	$ 292,499	$ 288,152	$ 273,749	$ 267,539	$ 260,355
California BanCorp
Subsequent Event [Line Items]
Total loans				1,490,000
Total assets				1,920,000
Total deposits				1,640,000
Total equity				$ 195,500
Subsequent Event | California BanCorp
Subsequent Event [Line Items]
Right to receive common stock ratio, based on number of outstanding shares of previous company			1.590
Number of shares issued (in shares) | shares	13,576,627
Subsequent Event | California BanCorp | Bay Area
Subsequent Event [Line Items]
Number of properties acquired	1	4
Subsequent Event | California BanCorp | Southern California Region
Subsequent Event [Line Items]
Number of properties acquired | full_service_bank_branch	13

Uncategorized Items - bcal-2024

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]