Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-38437 | ||
Entity Registrant Name | OP BANCORP | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 81-3114676 | ||
Entity Address, Address Line One | 1000 Wilshire Blvd | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90017 | ||
City Area Code | 213 | ||
Local Phone Number | 892-9999 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | OPBK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 125,000,000 | ||
Entity Common Stock, Shares Outstanding | 15,343,548 | ||
Entity Central Index Key | 0001722010 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 173 |
Auditor Name | Crowe LLP |
Auditor Location | Costa Mesa, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 82,972 | $ 115,459 |
Available-for-sale debt securities, at fair value | 209,809 | 150,444 |
Other investments | 12,098 | 10,999 |
Loans held for sale | 44,335 | 89,428 |
Loans receivable, net of allowance of $19,241 in 2022 and $16,123 in 2021 | 1,659,051 | 1,297,896 |
Premises and equipment, net | 4,400 | 4,355 |
Accrued interest receivable, net of allowance of $0 in 2022 and $205 in 2021 | 7,180 | 4,579 |
Servicing assets | 12,759 | 12,720 |
Company owned life insurance | 21,613 | 11,134 |
Deferred tax assets, net | 14,316 | 8,409 |
Operating right-of-use assets | 9,097 | 8,905 |
Other assets | 16,867 | 12,363 |
Total assets | 2,094,497 | 1,726,691 |
Deposits: | ||
Noninterest bearing | 701,584 | 774,754 |
Interest bearing: | ||
Money market and others | 526,321 | 380,226 |
Time deposits greater than $250 | 356,197 | 207,288 |
Other time deposits | 301,669 | 171,798 |
Total deposits | 1,885,771 | 1,534,066 |
Accrued interest payable | 2,771 | 558 |
Operating lease liabilities | 10,213 | 10,307 |
Other liabilities | 18,826 | 16,538 |
Total liabilities | 1,917,581 | 1,561,469 |
Shareholders’ equity | ||
Preferred stock no par value; 10,000,000 shares authorized; no shares issued or outstanding in 2022 and 2021 | 0 | 0 |
Common stock – no par value; 50,000,000 shares authorized; 15,270,344 and 15,137,808 shares issued and outstanding in 2022 and 2021, respectively | 79,326 | 78,718 |
Additional paid-in capital | 9,743 | 8,645 |
Retained earnings | 105,690 | 79,056 |
Accumulated other comprehensive loss | (17,843) | (1,197) |
Total shareholders’ equity | 176,916 | 165,222 |
Total liabilities and shareholders' equity | $ 2,094,497 | $ 1,726,691 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Loans receivable, net of allowance | $ 19,241 | $ 16,123 |
Accrued interest receivable, allowance | $ 0 | $ 205 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares, issued (in shares) | 15,270,344 | 15,137,808 |
Common stock, shares, outstanding (in shares) | 15,270,344 | 15,137,808 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 82,864 | $ 62,448 | $ 51,829 |
Interest on available-for-sale debt securities | 3,351 | 1,085 | 1,177 |
Other interest income | 1,997 | 625 | 650 |
Total interest income | 88,212 | 64,158 | 53,656 |
Interest expense | |||
Interest on deposits | 11,210 | 3,132 | 8,292 |
Interest on borrowings | 91 | 0 | 0 |
Total interest expense | 11,301 | 3,132 | 8,292 |
Net interest income | 76,911 | 61,026 | 45,364 |
Provision for loan losses | 2,976 | 522 | 5,961 |
Net interest income after provision for loan losses | 73,935 | 60,504 | 39,403 |
NONINTEREST INCOME | |||
Service charges on deposits | 1,675 | 1,562 | 1,431 |
Loan servicing fees, net of amortization | 2,416 | 1,953 | 1,856 |
Gain on sale of loans | 12,285 | 11,313 | 6,092 |
Other income | 1,243 | 1,189 | 1,392 |
Total noninterest income | 17,619 | 16,017 | 10,771 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 27,189 | 21,253 | 20,041 |
Occupancy and equipment | 5,964 | 5,213 | 4,974 |
Data processing and communication | 2,085 | 2,000 | 1,682 |
Professional fees | 1,620 | 1,192 | 1,101 |
FDIC insurance and regulatory assessments | 813 | 583 | 449 |
Promotion and advertising | 543 | 684 | 467 |
Directors’ fees | 682 | 593 | 700 |
Foundation donation and other contributions | 3,393 | 2,890 | 1,335 |
Other expenses | 2,541 | 1,457 | 1,191 |
Total noninterest expense | 44,830 | 35,865 | 31,940 |
INCOME BEFORE INCOME TAX EXPENSE | 46,724 | 40,656 | 18,234 |
Income tax expense | 13,414 | 11,816 | 5,107 |
NET INCOME | $ 33,310 | $ 28,840 | $ 13,127 |
EARNINGS PER SHARE - BASIC (in dollars per share) | $ 2.15 | $ 1.89 | $ 0.85 |
EARNINGS PER SHARE - DILUTED (in dollars per share) | $ 2.14 | $ 1.88 | $ 0.85 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 33,310 | $ 28,840 | $ 13,127 |
Other comprehensive (loss) income: | |||
Change in unrealized (loss) gain on securities available for sale | (23,634) | (2,891) | 925 |
Tax effect | 6,988 | 854 | (273) |
Total other comprehensive (loss) income | (16,646) | (2,037) | 652 |
COMPREHENSIVE INCOME | $ 16,664 | $ 26,803 | $ 13,779 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (shares) at Dec. 31, 2019 | 15,703,276 | ||||
Beginning balance at Dec. 31, 2019 | $ 140,576 | $ 86,381 | $ 7,524 | $ 46,483 | $ 188 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 13,127 | 13,127 | |||
Other comprehensive loss | 652 | 652 | |||
Stock issued under stock-based compensation plans (in shares) | 298,591 | ||||
Stock issued under stock-based compensation plans | 380 | $ 380 | |||
Stock-based compensation, net | 997 | 997 | |||
Repurchase of common stock (shares) | (985,167) | ||||
Repurchase of common stock | (8,104) | $ (8,104) | |||
Cash dividends declared | (4,262) | (4,262) | |||
Ending balance (shares) at Dec. 31, 2020 | 15,016,700 | ||||
Ending balance at Dec. 31, 2020 | 143,366 | $ 78,657 | 8,521 | 55,348 | 840 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 28,840 | 28,840 | |||
Other comprehensive loss | (2,037) | (2,037) | |||
Stock issued under stock-based compensation plans (in shares) | 124,938 | ||||
Stock issued under stock-based compensation plans | 89 | $ 89 | |||
Stock-based compensation, net | 124 | 124 | |||
Repurchase of common stock (shares) | (3,830) | ||||
Repurchase of common stock | (28) | $ (28) | |||
Cash dividends declared | (5,132) | (5,132) | |||
Ending balance (shares) at Dec. 31, 2021 | 15,137,808 | ||||
Ending balance at Dec. 31, 2021 | 165,222 | $ 78,718 | 8,645 | 79,056 | (1,197) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 33,310 | 33,310 | |||
Other comprehensive loss | (16,646) | (16,646) | |||
Stock issued under stock-based compensation plans (in shares) | 132,536 | ||||
Stock issued under stock-based compensation plans | 527 | $ 608 | (81) | ||
Stock-based compensation, net | 1,179 | 1,179 | |||
Cash dividends declared | (6,676) | (6,676) | |||
Ending balance (shares) at Dec. 31, 2022 | 15,270,344 | ||||
Ending balance at Dec. 31, 2022 | $ 176,916 | $ 79,326 | $ 9,743 | $ 105,690 | $ (17,843) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 0.44 | $ 0.34 | $ 0.28 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 33,310 | $ 28,840 | $ 13,127 |
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | |||
Provision for loan losses | 2,976 | 522 | 5,961 |
Depreciation and amortization of premises and equipment | 1,367 | 1,314 | 1,301 |
Amortization of net premiums on securities | 629 | 882 | 587 |
Amortization of servicing assets | 4,385 | 3,536 | 1,737 |
Accretion of loan discounts | (4,868) | (4,847) | (1,978) |
Amortization of low income housing partnerships | 697 | 522 | 262 |
Stock-based compensation | 1,179 | 558 | 1,102 |
Deferred income taxes | 1,081 | (2,312) | (2,326) |
Gain on sale of loans | (12,285) | (11,313) | (6,092) |
Gain on sales of other assets | 0 | 0 | (213) |
Earnings on company owned life insurance | (479) | (255) | (261) |
Net change in fair value of equity investment with readily determinable fair value | 431 | 108 | (79) |
Origination of loans held for sale | (137,642) | (177,042) | (111,015) |
Proceeds from sales of loans held for sale | 196,531 | 122,520 | 92,448 |
Net change in: | |||
Accrued interest receivable | (2,396) | 242 | (1,462) |
Other assets | 269 | 5,793 | 2,531 |
Accrued interest payable | 2,213 | (463) | (1,665) |
Other liabilities | (3,664) | 3,117 | 1,184 |
Net cash provided by (used in) operating activities | 83,734 | (28,278) | (4,851) |
Cash flows from investing activities | |||
Net change in loans receivable | (138,998) | (123,069) | (109,470) |
Proceeds from matured, called, or paid-down securities available for sale | 32,191 | 35,941 | 30,321 |
Purchase of company owned life insurance | (10,000) | 0 | 0 |
Purchase of loans | (225,133) | (97,631) | 0 |
Purchase of securities available for sale | (115,819) | (98,368) | (65,226) |
Purchase of equity investments | (53) | 0 | |
Purchase of Federal Home Loan Bank stock | (1,477) | (963) | (685) |
Purchase of premises and equipment, net | (1,412) | (1,125) | (619) |
Investment in low income housing partnerships | (1,076) | (829) | (1,389) |
Net cash used in investing activities | (461,777) | (286,044) | (147,068) |
Cash flows from financing activities | |||
Net change in deposits | 351,705 | 333,976 | 179,379 |
Cash received from stock option exercises | 608 | 89 | 380 |
Proceeds from Federal Home Loan Bank advances | 0 | 0 | 10,000 |
Repayment of Federal Home Loan Bank advances | 0 | (5,000) | (5,000) |
Repurchase of common stock | 0 | (28) | (8,104) |
Cash dividend paid on common stock | (6,676) | (5,132) | (4,262) |
Payments related to tax-withholding for vested restricted stock awards | (81) | (434) | (107) |
Net cash provided by financing activities | 345,556 | 323,471 | 172,286 |
Net change in cash and cash equivalents | (32,487) | 9,149 | 20,367 |
Cash and cash equivalents at beginning of period | 115,459 | 106,310 | 85,943 |
Cash and cash equivalents at end of period | 82,972 | 115,459 | 106,310 |
Supplemental cash flow information: | |||
Income taxes | 14,493 | 10,778 | 6,125 |
Interest | 9,088 | 3,595 | 9,957 |
Supplemental non-cash disclosure: | |||
Initial recognition of right-of-use assets | 1,961 | 3,708 | 0 |
New commitments to low income housing partnership investments | $ 5,000 | $ 3,500 | $ 3,477 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Business Description: OP Bancorp is a California corporation that was formed to acquire 100% of the voting equity of Open Bank (the “Bank”) and commenced operation as a bank holding company on June 1, 2016. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of OP Bancorp. OP Bancorp has no operations other than ownership of the Bank. The Bank is a California state-chartered and FDIC-insured financial institution, which began its operations on June 10, 2005. Headquartered in downtown Los Angeles, California, OP Bancorp operates primarily in the traditional banking business arena that includes accepting deposits and making loans and investments. OP Bancorp’s primary deposit products are demand and time deposits, and the primary lending products are commercial business loans to small to medium sized businesses. OP Bancorp is operating with ten full-service branches. Basis of Presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Concentration of Risk: Most of the Company’s customers are located within Los Angeles County and the surrounding area. The concentration of loans originated in this area may subject the Company to the risk of adverse impacts of economic, regulatory or other developments that could occur in Southern California. The Company has significant concentration in commercial real estate loans. The Company obtains what it believes to be sufficient collateral to secure potential losses. The extent and value of the collateral obtained varies based upon the details underlying each loan agreement. Cash Flows: Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions. Asset Purchase : On May 24, 2021, the Company completed the purchase of loan portfolio from Hana Small Business Lending, Inc. ("Hana") and paid approximately $97.6 million that included loans of $100.0 million at a fair value discount of $8.9 million, servicing assets of $6.1 million and accrued interest receivable of $398 thousand. The following table summarizes the consideration paid for the loan portfolio and the amounts of assets purchased: ($ in thousands) Consideration Cash $ 97,631 Recognized amounts of identifiable assets purchased: Loans (1) $ 100,003 Loan discounts (8,867) Accrued interest receivable 398 Servicing assets 6,097 Total recognized identifiable assets $ 97,631 (1) Consists of $92.2 million of SBA loans, $6.9 million of PPP loans and $919 thousand of real estate loans. The Company follows the guidance in Accounting Standards Codification (“ASC”) 805, Business Combination , for determining the appropriate accounting treatment for acquisition. Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business , provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial test is met, the assets acquired would not represent a business combination, but rather an asset acquisition. If the transaction is deemed to be an asset acquisition, the cost accumulation and allocation model is used in which the cost of the acquisition is allocated on a relative fair value basis to the assets acquired. The Company concluded that the Hana transaction did not qualify as a business combination and was accounted for as an asset acquisition in accordance with the “Acquisition of Assets Rather Than a Business” subsections of ASC 805-50 using a cost accumulation model. The Company records purchased performing loans in the Hana transaction at fair value including a discount and recognizes discount accretion using the contractual cash flow method. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans in accordance with the provisions of ASC 310-20, Nonrefundable Fees and Other Costs. There was no allowance for loan losses established as of June 30, 2021 for the purchased performing loans in the Hana transaction. A provision for loan losses is recorded for any further deterioration in these loans subsequent to the acquisition. Securities: Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available-for-sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement, and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Other investments: Other investments includes the followings : (i) Federal Home Loan Bank (“FHLB”) Stock - the Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; (ii) Pacific Coast Bankers Bank (“PCBB”) Stock - the Bank is a member of PCBB. PCBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; and (iii) the Company’s investment in a mutual fund to satisfy the Company’s requirements under the Community Reinvestment Act (“CRA”). CRA mutual fund is reported at fair value. Unrealized gains and losses on a CRA fund are recognized in other income in the Consolidated Statements of Income. Loans Held for Sale: Certain Small Business Administration (“SBA”) loans that may be sold prior to maturity are designated as held for sale at origination and are recorded at the lower of their cost or fair value less costs to sell, determined on an aggregate basis. A valuation allowance is established if the market value of such loans is lower than their cost, and operations are charged or credited for valuation adjustments. Origination fees on loans held for sale, net of certain costs of processing and closing the loans, are deferred until the time of sale and are included in the computation of the gain or loss from the sales of the related loans. A portion of the premium on sale of SBA loans is recognized as gains on sales of loans at the time of the sale. These loans are generally sold with servicing retained. Loans Receivable: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable, deferred loan fees and costs, and unearned income. The accrual of interest income on commercial real estate and other commercial and industrial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that in management’s judgment should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial real estate and construction loans. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Income recognition on impaired loans materially conforms to the method the Company uses for income recognition on nonaccrual loans. Allowance for impaired loans is determined based on the present value of the estimated cash flows or on the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measured fair value is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses, or alternatively, a specific allocation will be established. For consumer loans, management will generally charge off the balance if the loan is 90 days or more past due. The general component of the allowance covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent two years. For those portfolio segments that the Company does not have sufficient historical data available to track the loss migration, the loss factors are based on the actual loss history experienced by the Company over the most recent eight years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified in the Company’s loan portfolio, and are also representative of the classes within the portfolio: commercial real estate, SBA loans—real estate, SBA loans—non-real estate, commercial and industrial, home mortgage, and consumer. The Company reviews the credit risk exposure of all its portfolio segments by internally assigned grades. The Company categorizes loans into risk grades based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For the home mortgage and consumer portfolio segments, the Company’s primary monitoring tool is reviewing past due listings to determine if the loans are performing. The determination of the allowance for loan losses is based on estimates that are particularly susceptible to changes in the economic environment and market conditions. Servicing Assets: When SBA loans are sold with servicing retained, servicing assets are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the assets as compared to their carrying amount. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in the valuation allowances are reported with other income on the income statement. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds, default rates, and losses. Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of servicing assets is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. Company Owned Life Insurance: The Company has purchased life insurance policies on certain key executives. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation. Equipment and furnishings are depreciated over 3 to 10 years, and leasehold improvements are amortized over the lesser of the terms of the respective leases or the estimated useful lives. The straight-line method of depreciation is used for financial reporting purposes. Repairs and maintenance are charged to operating expenses as incurred. Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Low Income Housing Partnership Investments: The Company records the low income housing partnership investments, net of amortization, using the proportional amortization method and the Company reports it to other assets on the Consolidated Balance Sheets. The Company recognizes tax credits in income tax expense on the Consolidated Statement of Income. The commitments to fund the low income housing partnership investments are also recorded and included to other liabilities on the Consolidated Balance Sheets. The Company utilizes the year to date tax credits on the Company’s income tax returns for the year. Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees based on the fair value of the awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of the grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Earnings per Common Share: Basic and diluted earnings per share is based on the two-class method prescribed in ASC Topic 260, Earnings Per Share (ASC 260). Stock options and restricted stock awards are considered outstanding for this calculation unless unearned. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock-based compensation plans. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. There were no interest or penalties recognized in the years ended December 31, 2022 or 2021. Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on available-for-sale ("AFS") debt securities, which are also recognized as separate components of shareholders’ equity, net of tax. Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 13—Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. Operating Segments: While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Recent Accounting Pronouncements Not Yet Effective In June 2016, Financial Accounting Standards Board (" FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments — Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments. The objective of ASU 2016-13 is to provide financial statement users with decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 includes provisions that require financial assets measured at amortized cost (such as loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected. This will be accomplished through recognition of an estimate of all current expected credit losses. The estimate will include forecasted information for the timeframe that an entity is able to develop reasonable and supportable forecasts. This is a change from the current practice of recognizing incurred losses based on the probable initial recognition threshold under current GAAP. In addition, credit losses on available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a write-down recognized in other comprehensive income (loss). Under ASU 2016-13, an entity will be able to record reversals of credit losses in current period income when the estimate of credit losses declines, whereas current GAAP prohibits reflecting those improvements in current period earnings. In July 2019, the FASB proposed the effective date delay to January 2020 for SEC filers, excluding smaller reporting companies (“SRCs”) and emerging growth companies (“EGCs”), and January 2023 for all other entities including SRCs and EGCs, and in October 2019, the FASB voted to approve the proposed delay. The Company has established a committee to oversee the implementation of ASU 2016-13 and has engaged a third-party software vendor to assist the Company to develop a new expected credit loss model. The Company has completed development of its methodologies, data gathering and validation, and initial testing of its models. The Company has completed parallel runs in the third and fourth quarters of 2022 and its internal reviews of model results, including model development documentation and model validation by a third-party adviser. The Company adopted ASU 2016-13 on January 1, 2023 without electing the fair value option on eligible financial instruments. ASU 2016-13 was adopted using a modified retrospective approach through a cumulative effect adjustment to retained earnings. The Company's adoption of this ASU will result in an increase of approximately 10% to 15% in the allowance for credit losses. The adjustment recorded upon adoption to record the allowance for credit losses may fall outside of management’s estimated increase based on material changes in the economic forecast and conditions and composition of the loan portfolio used in calculating the allowance for credit losses upon adoption. In March 2022, FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) : Troubled Debt Restructurings and Vintage Disclosures. ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification (“ASC”) Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, ASU 2022-02 requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. ASU 2022-02 will be effective on January 1, 2023, and we adopted ASU 2022-02 on that date . The adoption of ASU 2022-02 did not have a significant impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Therefore, this standards update is in effect from March 12, 2020 through December 31, 2022 and as extended by ASU 2022-06 to December 31, 2024 after which entities will no longer be permitted to apply the relief of Topic 848. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) : Scope." This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The Company is currently evaluating the impact of this pronouncement and the adoption of ASU 2020-04 is not expected to have a significant impact on our consolidated financial statements. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of available-for-sale ("AFS") debt securities as of December 31, 2022 and 2021: December 31, 2022 ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 55,189 $ — $ (5,425) $ 49,764 Residential collateralized mortgage obligations 179,953 1 (19,909) 160,045 Total AFS debt securities $ 235,142 $ 1 $ (25,334) $ 209,809 December 31, 2021 ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 37,555 $ 178 $ (321) $ 37,412 Residential collateralized mortgage obligations 114,588 253 (1,809) 113,032 Total AFS debt securities $ 152,143 $ 431 $ (2,130) $ 150,444 There were no sales of AFS debt securities during the years ended December 31, 2022 and 2021. The amortized cost and estimated fair value of AFS debt securities as of December 31, 2022, by contractual maturity, are shown below: ($ in thousands) Amortized Fair After one year through five years $ 1,299 $ 1,244 After five years through ten years 2,246 2,096 After ten years 231,597 206,469 Total AFS debt securities $ 235,142 $ 209,809 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of December 31, 2022 and 2021, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss as of December 31, 2022 and 2021: December 31, 2022 Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 26,347 $ (1,485) $ 23,417 $ (3,940) $ 49,764 $ (5,425) Residential collateralized mortgage obligations 81,320 (3,888) 71,604 (16,021) 152,924 (19,909) Total AFS debt securities $ 107,667 $ (5,373) $ 95,021 $ (19,961) $ 202,688 $ (25,334) December 31, 2021 Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 31,120 $ (321) $ — $ — $ 31,120 $ (321) Residential collateralized mortgage obligations 93,607 (1,578) 7,212 (231) 100,819 (1,809) Total AFS debt securities $ 124,727 $ (1,899) $ 7,212 $ (231) $ 131,939 $ (2,130) Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, along with the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or whether it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components, as follows: (i) OTTI related to credit loss, which must be recognized in the income statement, and (ii) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The unrealized losses were primarily attributable to interest rate movement, not credit quality. These securities (Fannie Mae, Ginnie Mae, and Freddie Mac) are guaranteed or sponsored by agencies of the U.S. government, and the issuers of the securities are of high credit quality. The Company believes that the gross unrealized losses presented in the previous tables are temporary and no credit losses are expected. As a result, the Company expects full collection of the carrying amount of these securities, does not intend to sell the securities in an unrealized loss position, and it was more-likely-than-not the Company will not have to sell these securities prior to recovery of amortized cost. Accordingly, the Company does not consider these securities to be OTTI as of December 31, 2022. As of December 31, 2022 or 2021, there were no pledged securities to secure public deposits, borrowing and letters of credit from FHLB and the Board of Governors of the Federal Reserve System, and for other purposes required or permitted by law. The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheets as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 FHLB stock $ 8,483 $ 7,006 PCBB stock 190 190 Mutual fund - CRA qualified 3,330 3,708 Time deposits placed in other banks 95 95 Total other investments $ 12,098 $ 10,999 The Company has equity investment in a mutual fund with readily determinable fair value of $3.3 million and $3.7 million, as of December 31, 2022 and 2021, respectively, which is measured at fair value with changes in fair value recorded in net income. The Company invested in the mutual fund for CRA purposes. For the mutual fund, the Company recorded a $431 thousand and a $108 thousand unrealized loss for the years ended December 31, 2022 and 2021, respectively, and a $79 thousand unrealized gain for the year ended December 31, 2020. The unrealized losses (gains) of the mutual fund are included in Other income in the Consolidated Statements of Income. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 90 Days Past Due Total Past Due Loans Not Past Due Total (1) As of December 31, 2022 Commercial real estate $ — $ — $ — $ — $ 842,208 $ 842,208 SBA—real estate 199 175 — 374 220,966 221,340 SBA—non-real estate 117 49 381 547 12,830 13,377 C&I — — 441 441 116,510 116,951 Home mortgage 1,707 1,522 342 3,571 479,378 482,949 Consumer — — — — 1,467 1,467 Total $ 2,023 $ 1,746 $ 1,164 $ 4,933 $ 1,673,359 $ 1,678,292 As of December 31, 2021 Commercial real estate $ — $ — $ — $ — $ 701,450 $ 701,450 SBA—real estate — — 419 419 219,680 220,099 SBA—non-real estate 76 336 881 1,293 54,466 55,759 C&I — — — — 162,543 162,543 Home mortgage — — 893 893 172,410 173,303 Consumer — — — — 865 865 Total $ 76 $ 336 $ 2,193 $ 2,605 $ 1,311,414 $ 1,314,019 (1) Excludes accrued interest receivables of $6.4 million and $4.4 million as of December 31, 2022 and 2021, respectively. Troubled Debt Restructurings : When, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to a borrower that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring (“TDR”), the balance of which totaled $279 thousand and $313 thousand as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the Company has allocated $279 thousand and $313 thousand of specific reserves to the loan classified as TDRs, respectively. The Company has not committed to lend any additional amounts to customers with outstanding loans that are classified as TDRs. Modifications made were primarily extensions of existing payment modifications on loans previously identified as TDRs. There were no new loans identified as TDRs during the years ended December 31, 2022 and 2021. There were no payment defaults during the years ended December 31, 2022 and 2021 of loans that had been modified as TDRs within the previous twelve months. Loan Payment Deferrals : As of December 31, 2022, there was no loan under COVID-19 loan payment modification. Paycheck Protection Program loans : A provision in the CARES Act created the PPP, which is administered by the SBA. The PPP was intended to provide loans to small businesses to pay expenses related to their employees, rent, mortgage interest, and utilities. The loans may be forgiven conditioned upon the client providing applicable documentation evidencing their compliant with the terms of the program, including compliance regarding the use of funds. The Bank is an approved SBA lender and began accepting applications for the program on April 3, 2020. As of December 31, 2022, the Company had loans outstanding with a carrying value of $442 thousand, which were recorded in the SBA – non-real estate. Since the PPP’s inception through December 31, 2022, the Company has funded $154.5 million, and $154.0 million of principal forgiveness has been provided on qualifying PPP loans. Credit Quality Indicators : The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For consumer loans, a credit grade is established at inception, and generally only adjusted based on performance. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention—Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard—Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. As of December 31, 2022 and 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: ($ in thousands) Pass Special Mention Substandard Doubtful Total (1) As of December 31, 2022 Commercial real estate $ 841,645 $ 563 $ — $ — $ 842,208 SBA loans—real estate 220,348 — 992 — 221,340 SBA loans—non-real estate 12,897 — 480 — 13,377 C&I 116,396 — 279 276 116,951 Home mortgage 481,669 — 1,280 — 482,949 Consumer 1,467 — — — 1,467 Total $ 1,674,422 $ 563 $ 3,031 $ 276 $ 1,678,292 As of December 31, 2021 Commercial real estate $ 701,450 $ — $ — $ — $ 701,450 SBA loans—real estate 218,408 — 1,691 — 220,099 SBA loans—non-real estate 54,762 — 966 31 55,759 C&I 162,230 — 313 — 162,543 Home mortgage 172,265 — 1,038 — 173,303 Consumer 865 — — — 865 Total $ 1,309,980 $ — $ 4,008 $ 31 $ 1,314,019 (1) Excludes accrued interest receivables 2021 , respectively." id="sjs-B4">Loans and Allowance for Loan Losses The following table presents the composition of the loan portfolio as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 Commercial real estate $ 842,208 $ 701,450 SBA loans—real estate 221,340 220,099 SBA loans—non-real estate (1) 13,377 55,759 Commercial and industrial ("C&I") 116,951 162,543 Home mortgage 482,949 173,303 Consumer 1,467 865 Gross loans receivable 1,678,292 1,314,019 Allowance for loan losses (19,241) (16,123) Loans receivable, net (2) $ 1,659,051 $ 1,297,896 (1) Includes SBA Paycheck Protection Program ("PPP") loans of $442 thousand and $40.6 million as of December 31, 2022 and 2021, respectively. (2) Includes net deferred loan fees or costs, unamortized premiums and unaccreted discounts of $160 thousand and $7.0 million as of December 31, 2022 and 2021, respectively. No loans were outstanding to related parties as of December 31, 2022 and 2021. The following table summarizes the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2022, 2021 and 2020: ($ in thousands) Commercial Real Estate SBA Loans— Real Estate SBA Loan s— Non- Real Estate C&I Home Mortgage Consumer Total Balance at January 1, 2020 $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 Provision for (reversal of) loan losses (1) 2,505 863 174 1,274 518 (16) 5,318 Charge-offs — — (45) — — — (45) Recoveries — — 28 — — 1 29 Balance at December 31, 2020 $ 8,505 $ 1,802 $ 278 $ 2,563 $ 2,185 $ 19 $ 15,352 (Reversal of) provision for loan losses (1) (355) 279 54 285 706 (10) 959 Charge-offs — (59) (136) — — — (195) Recoveries — — 3 — — 4 7 Balance at December 31, 2021 $ 8,150 $ 2,022 $ 199 $ 2,848 $ 2,891 $ 13 $ 16,123 (Reversal of) provision for loan losses (1) (1,199) (409) 66 (1,205) 5,935 (7) 3,181 Charge-offs — (14) (127) — — — (141) Recoveries — 8 69 — — 1 78 Balance at December 31, 2022 $ 6,951 $ 1,607 $ 207 $ 1,643 $ 8,826 $ 7 $ 19,241 (1) Excludes (reversal of) provision for uncollectible accrued interest receivable of $(205) thousand, $(438) thousand and $643 thousand for the years ended December 31, 2022, 2021 and 2020 respectively. The following table presents the allowance for loan losses and recorded investment (not including accrued interest receivable) by portfolio segment and impairment methodology as of December 31, 2022 and 2021: ($ in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total As of December 31, 2022 Allowance for loan losses (1) : Commercial real estate $ — $ 6,951 $ 6,951 SBA loans—real estate — 1,607 1,607 SBA loans—non-real estate — 207 207 C&I 279 1,364 1,643 Home mortgage — 8,826 8,826 Consumer — 7 7 Total $ 279 $ 18,962 $ 19,241 Loans (2) : Commercial real estate $ — $ 842,208 $ 842,208 SBA loans—real estate 423 220,917 221,340 SBA loans—non-real estate — 13,377 13,377 C&I 279 116,672 116,951 Home mortgage — 482,949 482,949 Consumer — 1,467 1,467 Total $ 702 $ 1,677,590 $ 1,678,292 As of December 31, 2021 Allowance for loan losses (1) : Commercial real estate $ — $ 8,150 $ 8,150 SBA loans—real estate — 2,022 2,022 SBA loans—non-real estate — 199 199 C&I 312 2,536 2,848 Home mortgage — 2,891 2,891 Consumer — 13 13 Total $ 312 $ 15,811 $ 16,123 Loans (2) : Commercial real estate $ — $ 701,450 $ 701,450 SBA loans—real estate 812 219,287 220,099 SBA loans—non-real estate — 55,759 55,759 C&I 312 162,231 162,543 Home mortgage — 173,303 173,303 Consumer — 865 865 Total $ 1,124 $ 1,312,895 $ 1,314,019 (1) Excludes (reversal of) provision for uncollectible accrued interest receivable of $(205) thousand, $(438) thousand and $643 thousand as of December 31, 2022, 2021 and 2020, respectively. (2) Excludes accrued interest receivables of $6.4 million and $4.4 million as of December 31, 2022, and 2021 , respectively. The following table presents the recorded investment of individually impaired loans and the specific allowance for loan losses as of December 31, 2022 and 2021: December 31, 2022 (1) December 31, 2021 (1) ($ in thousands) Unpaid Principal Balance Recorded Recorded Related Unpaid Principal Balance Recorded Recorded Related SBA loans—real estate $ 423 $ 423 $ — $ — $ 812 $ 812 $ — $ — SBA loans—non-real estate — — — — — — — — C&I 279 — 279 279 313 — 313 313 Total $ 702 $ 423 $ 279 $ 279 $ 1,125 $ 812 $ 313 $ 313 (1) The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans was not considered to be material. The following table presents the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans by portfolio segment for the years ended December 31, 2022, 2021 and 2020. The difference between interest income recognized and cash basis interest recognized was immaterial. 2022 2021 2020 ($ in thousands) Average Interest Average Interest Average Interest SBA loans—real estate $ 409 $ — $ 597 $ — $ — $ — SBA loans—non-real estate — — — — 182 41 C&I 297 — 322 — 331 14 Total $ 706 $ — $ 919 $ — $ 513 $ 55 The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio as of December 31, 2022 and 2021: ($ in thousands) Nonaccrual 90 or More Days Past Due & Still Accruing Total As of December 31, 2022 SBA loans—real estate $ 423 $ — $ 423 SBA loans—non-real estate 657 442 1,099 C&I 279 — 279 Home mortgage 1,280 — 1,280 Total $ 2,639 $ 442 $ 3,081 As of December 31, 2021 SBA loans—real estate $ 812 $ — $ 812 SBA loans—non-real estate 838 200 1,038 C&I 312 — 312 Home mortgage 1,038 — 1,038 Total $ 3,000 $ 200 $ 3,200 Nonaccrual loans and loans past due 90 or more days and still accruing interest include both homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table represents the aging analysis of the recorded investment in past due loans as of December 31, 2022 and 2021: ($ in thousands) 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Loans Not Past Due Total (1) As of December 31, 2022 Commercial real estate $ — $ — $ — $ — $ 842,208 $ 842,208 SBA—real estate 199 175 — 374 220,966 221,340 SBA—non-real estate 117 49 381 547 12,830 13,377 C&I — — 441 441 116,510 116,951 Home mortgage 1,707 1,522 342 3,571 479,378 482,949 Consumer — — — — 1,467 1,467 Total $ 2,023 $ 1,746 $ 1,164 $ 4,933 $ 1,673,359 $ 1,678,292 As of December 31, 2021 Commercial real estate $ — $ — $ — $ — $ 701,450 $ 701,450 SBA—real estate — — 419 419 219,680 220,099 SBA—non-real estate 76 336 881 1,293 54,466 55,759 C&I — — — — 162,543 162,543 Home mortgage — — 893 893 172,410 173,303 Consumer — — — — 865 865 Total $ 76 $ 336 $ 2,193 $ 2,605 $ 1,311,414 $ 1,314,019 (1) Excludes accrued interest receivables of $6.4 million and $4.4 million as of December 31, 2022 and 2021, respectively. Troubled Debt Restructurings : When, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to a borrower that the Company would not otherwise consider, the related loan is classified as a troubled debt restructuring (“TDR”), the balance of which totaled $279 thousand and $313 thousand as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the Company has allocated $279 thousand and $313 thousand of specific reserves to the loan classified as TDRs, respectively. The Company has not committed to lend any additional amounts to customers with outstanding loans that are classified as TDRs. Modifications made were primarily extensions of existing payment modifications on loans previously identified as TDRs. There were no new loans identified as TDRs during the years ended December 31, 2022 and 2021. There were no payment defaults during the years ended December 31, 2022 and 2021 of loans that had been modified as TDRs within the previous twelve months. Loan Payment Deferrals : As of December 31, 2022, there was no loan under COVID-19 loan payment modification. Paycheck Protection Program loans : A provision in the CARES Act created the PPP, which is administered by the SBA. The PPP was intended to provide loans to small businesses to pay expenses related to their employees, rent, mortgage interest, and utilities. The loans may be forgiven conditioned upon the client providing applicable documentation evidencing their compliant with the terms of the program, including compliance regarding the use of funds. The Bank is an approved SBA lender and began accepting applications for the program on April 3, 2020. As of December 31, 2022, the Company had loans outstanding with a carrying value of $442 thousand, which were recorded in the SBA – non-real estate. Since the PPP’s inception through December 31, 2022, the Company has funded $154.5 million, and $154.0 million of principal forgiveness has been provided on qualifying PPP loans. Credit Quality Indicators : The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For consumer loans, a credit grade is established at inception, and generally only adjusted based on performance. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention—Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard—Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. As of December 31, 2022 and 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: ($ in thousands) Pass Special Mention Substandard Doubtful Total (1) As of December 31, 2022 Commercial real estate $ 841,645 $ 563 $ — $ — $ 842,208 SBA loans—real estate 220,348 — 992 — 221,340 SBA loans—non-real estate 12,897 — 480 — 13,377 C&I 116,396 — 279 276 116,951 Home mortgage 481,669 — 1,280 — 482,949 Consumer 1,467 — — — 1,467 Total $ 1,674,422 $ 563 $ 3,031 $ 276 $ 1,678,292 As of December 31, 2021 Commercial real estate $ 701,450 $ — $ — $ — $ 701,450 SBA loans—real estate 218,408 — 1,691 — 220,099 SBA loans—non-real estate 54,762 — 966 31 55,759 C&I 162,230 — 313 — 162,543 Home mortgage 172,265 — 1,038 — 173,303 Consumer 865 — — — 865 Total $ 1,309,980 $ — $ 4,008 $ 31 $ 1,314,019 (1) Excludes accrued interest receivables 2021 , respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following table presents information regarding the premises and equipment as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 Leasehold improvements $ 7,998 $ 7,375 Furniture and fixtures 3,983 3,530 Equipment and others 3,288 2,955 Total premises and equipment 15,269 13,860 Accumulated depreciation (10,869) (9,505) Total premises and equipment, net $ 4,400 $ 4,355 |
Servicing Assets
Servicing Assets | 12 Months Ended |
Dec. 31, 2022 | |
Servicing Asset [Abstract] | |
Servicing Assets | Servicing Assets The Company recognizes the right to service SBA loans for others as servicing assets when the servicing income the Company receives is more than adequate compensation. Servicing assets are accounted for using the amortization method. Under this method, the Company amortizes the servicing assets over the period of the economic life of the assets arising from estimated net servicing revenue. The Company periodically stratifies its servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Based on the results of the impairment test, there was no valuation allowance for impairment as of December 31, 2022 and 2021. The following table presents an analysis of the changes in activity for loan servicing assets during the years ended December 31, 2022 and 2021: Year Ended December 31, ($ in thousands) 2022 2021 Beginning balance $ 12,720 $ 7,360 Additions from loans sold with servicing retained 4,424 2,799 Additions from purchase of servicing rights — 6,097 Amortized to expense (4,385) (3,536) Ending balance $ 12,759 $ 12,720 The fair value of the servicing assets was $16.8 million as of December 31, 2022, which was determined using discount rates ranging from 4.40% to 9.9% and prepayment speeds ranging from 13.1% to 13.8%, depending on the stratification of the specific assets. The fair value of the servicing assets was $15.5 million as of December 31, 2021, which was determined using discount rates ranging from 3.75% to 10.0% and prepayment speeds ranging from 14.6% to 15.0% depending on the stratification of the specific assets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases As a lessee, the Company enters into leases of buildings and our real estate leases primarily relate to bank branches and office space from nonaffiliated parties with remaining lease terms ranging from 1 to 10 years as of December 31, 2022. Certain lease arrangements contain extension option which are typically around 5 years. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. At December 31, 2022 and 2021 , operating right-of-use (“ROU”) assets were $9.1 million and $8.9 million, respectively, and related liabilities were $10.2 million and $10.3 million, respectively. Short-term operating leases, which are defined as leases with term of twelve months or less, were not recognized as ROU assets with related lease liabilities as permitted under ASU No. 2016-02. The lease payments on short-term operating leases are immaterial. The Company did not have any finance leases at December 31, 2022 and 2021 . Operating lease ROU assets represent the Company’s right to use the underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using the Company’s incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in occupancy expense in the consolidated statements of income. The Company’s occupancy expense also includes variable lease costs which is comprised of the Company's share of actual costs for utilities, common area maintenance, property taxes, and insurance that are not included in lease liabilities and are expensed as incurred. Variable lease costs can also include rent escalations based on changes to indices, such as the Consumer Price Index, where the Company estimates future rent increases and records the actual difference to variable costs. The table below summarizes total lease cost for the periods indicated : Year Ended December 31, ($ in thousands) 2022 2021 Operating lease cost $ 2,046 $ 1,852 Variable lease cost 859 739 Total lease cost $ 2,905 $ 2,591 The tables below summarize other information related to the Company’s operating leases as of the associated period: Year Ended December 31, ($ in thousands) 2022 2021 Operating right-of-use assets $ 9,097 $ 8,905 Operating lease liabilities $ 10,213 $ 10,307 Weighted average remaining lease term - operating leases 6.3 years 6.9 years Weighted average discount rate - operating leases 2.44 % 2.02 % Year Ended December 31, ($ in thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,253 $ 2,082 Rent expense was $2.9 million, $2.6 million and $2.5 million for the years ended December 31, 2022 and 2021 and 2020, respectively. The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the Consolidated Balance Sheets as of December 31, 2022: ($ in thousands) December 31, 2023 $ 2,467 2024 2,466 2025 1,611 2026 1,969 2027 1,888 Thereafter 3,473 Total lease payments 13,874 Discount to present value (3,661) Total lease liability $ 10,213 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Deposits Time deposits that exceed the FDIC insurance limit of $250 thousand as of December 31, 2022 and 2021 were $356.2 million and $207.3 million, respectively. The following table presents the scheduled contractual maturities of time deposits as of December 31, 2022: ($ in thousands) December 31, 2023 $ 630,543 2024 25,661 2025 1,161 2026 320 2027 181 Total $ 657,866 Deposits from principal officers, directors, and their affiliates as of December 31, 2022 and 2021 were $810 thousand and $1.2 million, respectively. |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements As of December 31, 2022, the Company had $50 thousand borrowings with a 4.85% interest rate from the First Horizon Bank, which are included in Other liabilities on the Consolidated Balance Sheets, compared to no borrowings as of December 31, 2021. The Company has a letter of credit with the FHLB in the amount of $67.0 million to secure a public deposit as of both December 31, 2022 and 2021. The Company had available borrowings from the following institutions as of December 31, 2022: ($ in thousands) FHLB—San Francisco $ 440,358 Federal Reserve Bank 175,605 Pacific Coast Bankers Bank 50,000 Zions Bank 25,000 First Horizon Bank 24,950 Total $ 715,913 The Company has pledged approximately $1.24 billion and $958.3 million of loans as collateral for these lines of credit as of December 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the components of income taxes expense (benefit) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, ($ in thousands) 2022 2021 2020 Current income tax expense: Federal $ 7,959 $ 9,243 $ 4,837 State 4,374 4,885 2,596 Total current income tax expense 12,333 14,128 7,433 Deferred income tax (benefit) expense: Federal 783 (1,614) (1,516) State 298 (698) (810) Total deferred income tax (benefit) expense 1,081 (2,312) (2,326) Total income tax expense $ 13,414 $ 11,816 $ 5,107 The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate for the periods indicated: Year Ended December 31, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: Meals and entertainment — — 0.2 State income taxes, net of federal tax benefit 8.4 8.5 8.3 Stock option expense and related excess tax benefits — 0.1 (0.7) Company owned life insurance (0.2) (0.1) (0.3) Other, net (0.5) (0.4) (0.5) Effective tax rate 28.7 % 29.1 % 28.0 % The significant components of deferred tax assets and liabilities are reflected in the following table: December 31, ($ in thousands) 2022 2021 Deferred tax assets: Organizational costs $ 20 $ 22 Allowance for loan losses 5,688 4,827 Loans held for sale 852 2,919 Stock-based compensation 386 211 Accrued compensation 272 238 Lease liability 3,019 3,047 State taxes 989 1,059 Net unrealized loss on AFS debt securities 7,491 503 Nonaccrual loan interest income 46 62 Other 77 49 Total deferred tax assets 18,840 12,937 Deferred tax liabilities: Loan origination costs (1,407) (1,477) Depreciation (423) (379) Right of use asset (2,689) (2,633) Other (5) (39) Total deferred tax liabilities (4,524) (4,528) Net deferred tax asset $ 14,316 $ 8,409 A valuation allowance for deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and tax planning strategies which will create taxable income during the periods in which those temporary differences become deductible. Management reevaluated all positive and negative evidence that existed and concluded all deferred tax assets are realizable. Therefore, no valuation allowance was necessary as of December 31, 2022 and 2021. The Company is subject to U.S. Federal income tax as well as various state taxing jurisdictions. The Company is no longer subject to examination by Federal taxing authorities for tax years prior to 2019 and for state taxing authorities for tax years prior to 2018. There were no significant unrealized tax benefits recorded as of December 31, 2022 and 2021, and the Company does not expect any significant increase in unrealized tax benefits in the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance-Sheet Credit Risk : In the normal course of business, the Company enters into commitments to extend credit such as loan commitments and standby letters of credits (“SBLC”s). These commitments expose the Company to varying degrees of credit and market risk and are subject to the same credit and market risk limitation reviews as those instruments recorded on the Consolidated Balance Sheets. Loan commitments represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These commitments generally have fixed expiration dates or contain termination clauses in the event the customer’s credit quality deteriorates. Since many of the commitments are expected to expire without being drawn upon, the commitment amounts do not necessarily represent future funding requirements. The Company applies the same credit underwriting criteria to extend loans and commitments to customers. Each customer’s credit worthiness is evaluated on a case-by-case basis. Collateral may be obtained based on management’s assessment of a customer’s credit. Collateral may include securities, accounts receivable, inventory, property, plant and equipment, and income producing commercial or other properties. The following table presents the distribution of undisbursed credit-related commitments as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 Loan commitments $ 265,110 $ 116,511 Standby letter of credit 5,286 4,477 Commercial letter of credit 451 1,028 Total undisbursed credit related commitments $ 270,847 $ 122,016 The majority of these off-balance sheet commitments have a variable interest rate. Management does not anticipate any material losses as a result of these transactions. Investments in low-income housing partnership : The Company invests in qualified affordable housing partnerships. The following table shows the balance of the investments in low-income housing partnerships and the total unfunded commitments related to the investments in low-income housing partnerships as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 Investments in low-income housing partnerships $ 12,212 $ 7,911 Unfunded commitments to fund investments for low-income housing partnerships 8,748 4,825 These balances are reflected in the other assets and other liabilities lines on the Consolidated Balance Sheets. The Company expects to finish fulfilling these commitments during the year ending 2039. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credit and other benefits received and recognizes the amortization in income tax expense on the Consolidated Statements of Income. The Company recognized amortization expense of $697 thousand, $522 thousand and $262 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. Additionally, the Company recognized tax credits and other benefits from the investments in low-income housing partnerships of $926 thousand, $651 thousand and $313 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has three stock-based compensation plans currently in effect as of December 31, 2022, as described further below. Total compensation cost that has been charged against earnings for these plans for the years ended December 31, 2022, 2021 and 2020 was $1.2 million, $558 thousand and $1.1 million, respectively. 2005 Plan : In 2005, the Board of Directors and shareholders of the Bank approved a stock option plan for the benefit of directors and employees of the Bank (the “2005 Plan”). The 2005 Plan was assumed by the Company in 2016 at the time of the bank holding company reorganization. Under the 2005 Plan, the Bank was authorized to grant options to purchase up to 770,000 shares of the Company’s common stock. The exercise prices of the options may not be less than 100% of the fair value of the Company’s common stock at the date of grant. The options, when granted, vest either immediately or ratably over five years from the date of the grant and expire after ten years if not exercised. The 2005 Plan expired in 2015, and no future grants can be made under the 2005 Plan. A summary of the transactions under the 2005 Plan for the year ended December 31, 2022 is as follows: ($ in thousands, except share data) Number of Weighted Aggregate Outstanding, as of January 1, 2022 52,000 $ 6.37 $ 333 Options granted — — Options exercised (22,000) 5.82 Options forfeited — — Options expired — — Outstanding, as of December 31, 2022 30,000 $ 6.18 $ 149 Fully vested and expected to vest 30,000 $ 6.18 $ 149 Vested 30,000 $ 6.18 $ 149 Information related to the 2005 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2022 2021 2020 Intrinsic value of options exercised $ 113 $ 231 $ 370 Cash received from option exercises 128 64 63 Tax benefit realized from option exercised 2 27 17 The weighted average remaining contractual term of stock options outstanding under the 2005 Plan as of December 31, 2022 was 0.7 year. The weighted average remaining contractual term of stock options that were exercisable as of December 31, 2022 was 0.7 year. All of the stock options that are outstanding under the 2005 Plan were fully vested as of December 31, 2022. 2010 Plan : In 2010, the Board of Directors of the Bank approved a new equity incentive plan for granting stock options and restricted stock awards to key employees, officers, and non-employee directors of the Bank (the “2010 Plan”). In 2013, the 2010 Plan was amended and approved by the shareholders to increase the number of shares authorized to be issued under from 1,350,000 shares to 2,500,000 shares of common stock. The 2010 Plan was assumed by the Company in 2016 at the time of the bank holding company reorganization. The exercise prices of stock options granted under the plan may not be less than 100% of the fair value of the Company’s stock at the date of grant. The options, when granted, vest ratably over five years from the date of the grant and expire after ten years if not exercised. The 2010 Plan expired in August 2020, and no further grants can be made under the 2010 Plan. Restricted stock awards issued under the 2010 Plan may or may not be subject to vesting provisions. Owners of the restricted stock awards shall have all of the rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date. A summary of the stock options outstanding under the 2010 Plan for the year ended December 31, 2022 is as follows: ($ in thousands, except share data) Number of Weighted Aggregate Outstanding, as of January 1, 2022 210,000 $ 8.00 $ 1,000 Options granted — — Options exercised (60,000) 8.00 Options forfeited — — Options expired — — Outstanding, as of December 31, 2022 150,000 $ 8.00 $ 474 Fully vested and expected to vest 150,000 $ 8.00 $ 474 Vested 150,000 $ 8.00 $ 474 Information related to stock options exercised under the 2010 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2022 2021 2020 Intrinsic value of options exercised $ 224 $ 86 $ 729 Cash received from option exercises 480 25 317 Tax benefit realized from option exercised — — 157 The weighted average remaining contractual term of stock options outstanding as of December 31, 2022 was 1.3 years. The weighted average remaining contractual term of stock options that were exercisable as of December 31, 2022 was 1.3 years. A summary of the changes in the Company's non-vested restricted stock awards under the 2010 Plan for the year ended December 31, 2022 is as follows: ($ in thousands, except share data) Shares Issued Weighted Average Grant Date Fair Value Aggregate Non-vested, as of January 1, 2022 21,000 $ 7.95 $ 268 Awards granted — — Awards vested — — Awards forfeited (6,500) 6.37 Non-vested, as of December 31, 2022 14,500 $ 8.66 $ 162 Information related to vested restricted stock awards under the 2010 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2022 2021 2020 Tax (provision) benefit realized from awards vested $ — $ (85) $ 21 As of December 31, 2022, the Company had approximately $30 thousand of unrecognized compensation cost related to unvested restricted stock awards under the 2010 Plan. The Company expects to recognize these costs over a weighted average period of 1.5 years. 2021 Plan : In 2021, the Board of Directors of the Company approved a new equity incentive plan for granting stock options and restricted stock awards to key employees, officers, and non-employee directors of the Company and the Bank (the “2021 Plan”). The 2021 Plan was approved by the Company’s shareholders at the 2021 Annual Meeting. The number of shares authorized to be issued under the 2021 Plan was 1,500,000 shares of the Company’s common stock. The exercise prices of stock options granted under the plan may not be less than 100.00% of the fair value of the Company’s stock at the date of grant. There are no stock options granted under the 2021 Plan as of December 31, 2022. Restricted stock awards issued under the 2021 Plan may or may not be subject to vesting provisions. Owners of the restricted stock awards shall have all rights of a shareholder including the right to vote the shares and to all dividends (cash or stock). Compensation expense related to restricted stock awards will be recognized over the vesting period of the awards based on the fair value of the Company’s common stock at the issue date. A summary of the changes in the Company’s non-vested restricted stock awards under the 2021 Plan for the year ended December 31, 2022 is as follows: ($ in thousands, except share data) Shares Issued Weighted Aggregate Non-vested, as of January 1, 2022 176,641 $ 9.90 $ 2,254 Awards granted 218,057 12.59 Awards vested (59,302) 9.92 Awards forfeited (18,030) 12.40 Non-vested, as of December 31, 2022 317,366 $ 11.60 $ 3,542 Information related to vested restricted stock awards under the 2021 Plan for the periods indicated follows: Year Ended Year Ended December 31, ($ in thousands) 2022 2021 2020 Tax benefit realized from awards vested $ 12 $ — $ — There were 1,130,583 shares available for future grants of either stock options or restricted stock awards under the 2021 Plan as of December 31, 2022. The Company had approximately $2.8 million of unrecognized compensation cost related to unvested restricted stock awards under the 2021 Plan as of December 31, 2022. The Company expects to recognize these costs over a weighted average period of 2.5 years. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company sponsors a defined contribution plan, 401(k) profit sharing plan (the “401(k) Plan”), designed to provide retirement benefits financed by participant contributions, as well as contributions from the Company. Employees are eligible to participate in the 401(k) Plan as of the first day of the first calendar month after the date they have completed three months of service with the Company and have attained the age of 18. Each employee is allowed to contribute to the 401(k) Plan up to the maximum percentage allowable, not to exceed the limits of applicable IRS Code Sections. Each year, the Company may, in its discretion, make matching contributions to the 401(k) Plan. Total employer contributions to the 401(k) Plan amounted to $867 thousand, $752 thousand and $691 thousand for the years ended December 31, 2022 and 2021 and 2020, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date and is determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Assets and liabilities recorded at fair value on a recurring basis, such as AFS securities and equity investments. Additionally, from time to time, the Company records fair value adjustments on a nonrecurring basis. These nonrecurring adjustments typically involve application of lower of cost or fair value accounting and write-downs of individual assets. The Company classifies its assets and liabilities recorded at fair value as one of the following three categories and a financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement: Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and Liabilities Measured at Fair Value on a Recurring Basis Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. Securities AFS : The fair values of investment securities are determined by matrix pricing, which is a mathematical technique used to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Management obtains the fair values of investment securities on a monthly basis from a third-party pricing service. Other Investment: The Company has equity investment with readily determinable fair value. The fair value for the equity investment with readily determinable fair value is obtained from unadjusted quoted prices in active markets on the date of measurement and classified as Level 1. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021 are summarized below: Fair Value Measure on a Recurring Basis ($ in thousands) Total Quoted Significant Other Significant December 31, 2022 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 49,764 $ — $ 49,764 $ — Residential collateralized mortgage obligations 160,045 — 160,045 — Other investments: Mutual fund - CRA qualified 3,330 3,330 — — December 31, 2021 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 37,412 $ — $ 37,412 $ — Residential collateralized mortgage obligations 113,032 — 113,032 — Other investments: Mutual fund - CRA qualified 3,708 3,708 — — There were no transfers of assets or liabilities between the Level 1 and Level 2 classifications for years ended December 31, 2022 or 2021. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or fair value and write-downs of individual assets. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s judgment, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of December 31, 2022 and 2021: Fair Value Measure on a Nonrecurring Basis ($ in thousands) Total Quoted Significant Other Significant December 31, 2022 Impaired loans $ 423 $ — $ — $ 423 December 31, 2021 Impaired loans $ 812 $ — $ — $ 812 The following table presents the increase (decrease) in value of certain assets held at the end of the respective reporting periods presented for which a nonrecurring fair value adjustment was recognized during the period presented: Year Ended December 31, ($ in thousands) 2022 2021 2021 Impaired loans $ 28 $ 105 $ (84) The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of December 31, 2022 and 2021: ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) December 31, 2022 Impaired loans: SBA loans—real estate $ 423 Income approach - income capitalization Capitalization rate 11.5% 11.5% December 31, 2021 Impaired loans: SBA loans—real estate $ 418 Market approach Market data comparison 2% to 17% 8.7% SBA loans—real estate $ 394 Income approach - income capitalization Capitalization rate 12.0% 12.0% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of December 31, 2022 and 2021 . Financial Instruments : The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of December 31, 2022 and 2021 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets: December 31, 2022 ($ in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 82,972 $ 82,972 $ — $ — $ 82,972 Loans held for sale 44,335 — 47,217 — 47,217 Loans receivable, net 1,659,051 — — 1,626,036 1,626,036 Accrued interest receivable, net 7,180 51 716 6,413 7,180 Other investments: FHLB and PCBB stock 8,673 N/A N/A N/A N/A Time deposits placed 95 — 95 — 95 Servicing assets 12,759 — — 16,845 16,845 Financial liabilities: Deposit 1,885,771 — 1,880,508 — 1,880,508 Accrued interest payable 2,771 — 2,771 — 2,771 December 31, 2021 ($ in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 115,459 $ 115,459 $ — $ — $ 115,459 Loans held for sale 89,428 — 99,301 — 99,301 Loans receivable, net 1,297,896 — — 1,291,926 1,291,926 Accrued interest receivable, net 4,579 — 348 4,231 4,579 Other investments: FHLB and PCBB stock 7,196 N/A N/A N/A N/A Time deposits placed 95 — 95 — 95 Servicing assets 12,720 — — 15,505 15,505 Financial liabilities: Deposit 1,534,066 — 1,534,066 — 1,534,066 Accrued interest payable 558 — 558 — 558 The methods and assumptions, not previously presented, used to estimate fair value are described as follows: (a) Cash and Cash equivalents The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. (b) Loans Held for Sale The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. (c) Loans Receivable, Net Fair values of loans, excluding loans held for sale, are based on the exit price notion set forth by ASU 2016-01 effective January 1, 2018 and estimated using discounted cash flow analyses. The estimation of fair values of loans results in a Level 3 classification as it requires various assumptions and considerable judgement to incorporate factors relevant when selling loans to market participants, such as funding costs, return requirements of likely buyers and performance expectations of the loans given the current market environment and quality of loans. (d) Other Investments Fair value of CRA qualified mutual fund is readily determinable using quoted prices and is classified as Level 1. It is not practical to determine the fair value of FHLB and PCBB stock due to restrictions placed on their transferability. (e) Deposits The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. The carrying amounts of variable rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date resulting in a Level 2 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. (f) Federal Home Loan Bank Advances The fair values of Federal Home Loan Bank Advances are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements, resulting in a Level 2 classification. (g) Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value and are classified within the same fair value hierarchy level as the related asset or liability. (h) Off-balance Sheet Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Matters | Regulatory Capital MattersThe Bank is subject to certain risk-based capital and leverage ratio requirements under the U.S. Basel III capital rules administered by the federal and state banking agencies. Failure to be well-capitalized or to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on the Company's operations or financial condition. The Basel III capital rules also require the Bank to maintain a capital conservation buffer of 2.5% above the minimum risk-based capital ratios in order to absorb losses during periods of economic stress, effective January 1, 2019. Banking institutions with a ratio of common equity tier 1 capital to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends. equity repurchases and compensation based on the amount of the shortfall. Management believes that as of December 31, 2022 and 2021, the Bank met all capital adequacy requirements to which they are subject to. Based on recent changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: December 31, 2022 Actual (1) Required for Minimum ($ in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 213,862 13.06 % N/A N/A N/A N/A Bank 211,981 12.94 $ 131,020 8.00 % $ 163,775 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 194,358 11.87 N/A N/A N/A N/A Bank 192,477 11.75 98,265 6.00 131,020 8.00 Common equity Tier 1 capital (to risk-weighted Consolidated 194,358 11.87 N/A N/A N/A N/A Bank 192,477 11.75 73,699 4.50 106,454 6.50 Tier 1 capital (to average assets) Consolidated 194,358 9.38 N/A N/A N/A N/A Bank 192,477 9.29 82,836 4.00 103,545 5.00 (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. December 31, 2021 Actual (1) Required for Minimum ($ in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 182,439 13.66 % N/A N/A N/A N/A Bank 179,882 13.47 $ 106,857 8.00 % $ 133,572 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 165,944 12.42 N/A N/A N/A N/A Bank 163,387 12.23 80,143 6.00 106,857 8.00 Common equity Tier 1 capital (to risk-weighted Consolidated 165,944 12.42 N/A N/A N/A N/A Bank 163,387 12.23 60,107 4.50 86,822 6.50 Tier 1 capital (to average assets) Consolidated 165,944 9.58 N/A N/A N/A N/A Bank 163,387 9.44 69,266 4.00 86,582 5.00 (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareBasic EPS is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. The Company grants restricted stock awards, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Company's common stock. These restricted stock awards meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS. Diluted EPS incorporates the potential impact of contingently issuable shares. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under two-class method was more dilutive. The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, ($ in thousands, except share and per share data) 2022 2021 2020 Basic Net income $ 33,310 $ 28,840 $ 13,127 Distributed and undistributed earnings allocated to participating securities (704) (330) (195) Net income allocated to common shares $ 32,606 $ 28,510 $ 12,932 Weighted average common shares outstanding 15,171,240 15,087,686 15,196,351 Basic earnings per common share $ 2.15 $ 1.89 $ 0.85 Diluted Net income allocated to common shares $ 32,606 $ 28,510 $ 12,932 Weighted average common shares outstanding for basic earnings per common share 15,171,240 15,087,686 15,196,351 Add: Dilutive effects of assumed exercises of stock options 60,178 67,661 27,537 Average shares and dilutive potential common shares 15,231,418 15,155,347 15,223,888 Diluted earnings per common share $ 2.14 $ 1.88 $ 0.85 No share of common stock was antidilutive for the years ended December 31, 2022 and 2021. For the year ended December 31, 2020, antidilutive stock options for 212,000 shares of common stock were excluded from the diluted EPS computation. |
Parent Company Condensed Financ
Parent Company Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Condensed Financial Statements | Parent Company Condensed Financial Statements The following tables present the Parent Company-only condensed financial statements: Condensed Balance Sheets December 31, ($ in thousands) 2022 2021 Assets Cash and cash equivalents $ 1,559 $ 2,431 Investment in bank subsidiary 175,035 162,666 Deferred tax assets 21 22 Other assets 301 136 Total assets $ 176,916 $ 165,255 Liabilities and shareholders' equity Other liabilities $ — $ 33 Shareholders’ equity 176,916 165,222 Total liabilities and shareholders' equity $ 176,916 $ 165,255 Condensed Statements of Income and Comprehensive Income Year Ended December 31, ($ in thousands) 2022 2021 2020 Income Dividends from bank subsidiary $ 6,675 $ 5,123 $ 13,921 Expense Salaries and employee benefits 219 226 325 Occupancy and equipment 49 65 74 FDIC insurance and regulatory assessments — 8 1 Directors’ fees 214 135 527 Other expense 395 169 120 Total expense 877 603 1,047 Income before income tax benefit and undistributed net income of bank subsidiary 5,798 4,520 12,874 Income tax benefit 202 141 275 Equity in undistributed net income (loss) of bank subsidiary 27,310 24,178 (22) Net income 33,310 28,839 13,127 Other comprehensive (loss) income, net of tax (16,646) (2,037) 652 Comprehensive income $ 16,664 $ 26,802 $ 13,779 Condensed Statements of Cash Flows December 31, ($ in thousands) 2022 2021 2020 Cash flows from operating activities Net income $ 33,310 $ 28,839 $ 13,127 Adjustments: Equity in undistributed net loss of bank subsidiary (33,985) (29,301) (13,899) Change in other assets (164) (124) 107 Change in other liabilities (33) (414) 359 Net cash used in operating activities (872) (1,000) (306) Cash flows from investing activities Net cash from investing activities — — — Cash flows from financing activities Repurchase of common stock — (28) (8,104) Cash dividend paid on common stock (6,674) (5,132) (4,262) Proceeds from subsidiaries 6,675 5,123 13,921 Net cash provided by (used in) financing activities 1 (37) 1,555 Net change in cash and cash equivalents (871) (1,037) 1,249 Cash and cash equivalents at beginning of year 2,431 3,468 2,219 Cash and cash equivalents at end of year $ 1,560 $ 2,431 $ 3,468 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company has evaluated subsequent events through the issuance of these financial statements and is not aware of any material items that would require disclosure in the notes to the financial statements or would be required to be recognized as of December 31, 2022. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: |
Use of Estimates | Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. |
Concentration of Risk | Concentration of Risk: Most of the Company’s customers are located within Los Angeles County and the surrounding area. The concentration of loans originated in this area may subject the Company to the risk of adverse impacts of economic, regulatory or other developments that could occur in Southern California. The Company has significant concentration in commercial real estate loans. The Company obtains what it believes to be sufficient collateral to secure potential losses. The extent and value of the collateral obtained varies based upon the details underlying each loan agreement. |
Cash Flows | Cash Flows: Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions. |
Asset Purchase | The Company follows the guidance in Accounting Standards Codification (“ASC”) 805, Business Combination , for determining the appropriate accounting treatment for acquisition. Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business , provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial test is met, the assets acquired would not represent a business combination, but rather an asset acquisition. If the transaction is deemed to be an asset acquisition, the cost accumulation and allocation model is used in which the cost of the acquisition is allocated on a relative fair value basis to the assets acquired. The Company concluded that the Hana transaction did not qualify as a business combination and was accounted for as an asset acquisition in |
Purchased Performing Loans | The Company records purchased performing loans in the Hana transaction at fair value including a discount and recognizes discount accretion using the contractual cash flow method. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans in accordance with the provisions of ASC 310-20, Nonrefundable Fees and Other Costs. There was no allowance for loan losses established as of June 30, 2021 for the purchased performing loans in the Hana transaction. A provision for loan losses is recorded for any further deterioration in these loans subsequent to the acquisition. |
Securities | Securities: Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available-for-sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement, and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Other investments | Other investments: Other investments includes the followings : (i) Federal Home Loan Bank (“FHLB”) Stock - the Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; (ii) Pacific Coast Bankers Bank (“PCBB”) Stock - the Bank is a member of PCBB. PCBB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income; and (iii) the Company’s investment in a mutual fund to satisfy the Company’s requirements under the Community Reinvestment Act (“CRA”). CRA mutual fund is reported at fair value. Unrealized gains and losses on a CRA fund are recognized in other income in the Consolidated Statements of Income. |
Loans Held for Sale | Loans Held for Sale: Certain Small Business Administration (“SBA”) loans that may be sold prior to maturity are designated as held for sale at origination and are recorded at the lower of their cost or fair value less costs to sell, determined on an aggregate basis. A valuation allowance is established if the market value of such loans is lower than their cost, and operations are charged or credited for valuation adjustments. Origination fees on loans held for sale, net of certain costs of processing and closing the loans, are deferred until the time of sale and are included in the computation of the gain or loss from the sales of the related loans. A portion of the premium on sale of SBA loans is recognized as gains on sales of loans at the time of the sale. These loans are generally sold with servicing retained. |
Loans Receivable | Loans Receivable: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable, deferred loan fees and costs, and unearned income. The accrual of interest income on commercial real estate and other commercial and industrial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that in management’s judgment should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial real estate and construction loans. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Income recognition on impaired loans materially conforms to the method the Company uses for income recognition on nonaccrual loans. Allowance for impaired loans is determined based on the present value of the estimated cash flows or on the fair value of the collateral if the loan is collateral dependent, less costs to sell. If the measured fair value is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses, or alternatively, a specific allocation will be established. For consumer loans, management will generally charge off the balance if the loan is 90 days or more past due. The general component of the allowance covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent two years. For those portfolio segments that the Company does not have sufficient historical data available to track the loss migration, the loss factors are based on the actual loss history experienced by the Company over the most recent eight years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified in the Company’s loan portfolio, and are also representative of the classes within the portfolio: commercial real estate, SBA loans—real estate, SBA loans—non-real estate, commercial and industrial, home mortgage, and consumer. The Company reviews the credit risk exposure of all its portfolio segments by internally assigned grades. The Company categorizes loans into risk grades based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. For the home mortgage and consumer portfolio segments, the Company’s primary monitoring tool is reviewing past due listings to determine if the loans are performing. The determination of the allowance for loan losses is based on estimates that are particularly susceptible to changes in the economic environment and market conditions. |
Servicing Assets | Servicing Assets: When SBA loans are sold with servicing retained, servicing assets are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds, and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing assets to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the assets as compared to their carrying amount. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in the valuation allowances are reported with other income on the income statement. The fair values of servicing rights are subject to fluctuations as a result of changes in estimated and actual prepayment speeds, default rates, and losses. Servicing fee income, which is reported on the income statement as other income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of servicing assets is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. |
Company Owned Life Insurance | Company Owned Life Insurance: The Company has purchased life insurance policies on certain key executives. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Premises and Equipment | Premises and Equipment: Premises and equipment are stated at cost, less accumulated depreciation. Equipment and furnishings are depreciated over 3 to 10 years, and leasehold improvements are amortized over the lesser of the terms of the respective leases or the estimated useful lives. The straight-line method of depreciation is used for financial reporting purposes. Repairs and maintenance are charged to operating expenses as incurred. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Low Income Housing Partnership Investments | Low Income Housing Partnership Investments: The Company records the low income housing partnership investments, net of amortization, using the proportional amortization method and the Company reports it to other assets on the Consolidated Balance Sheets. The Company recognizes tax credits in income tax expense on the Consolidated Statement of Income. The commitments to fund the low income housing partnership investments are also recorded and included to other liabilities on the Consolidated Balance Sheets. The Company utilizes the year to date tax credits on the Company’s income tax returns for the year. |
Stock-Based Compensation | Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees based on the fair value of the awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of the grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Earnings per Common Share | Earnings per Common Share: Basic and diluted earnings per share is based on the two-class method prescribed in ASC Topic 260, Earnings Per Share (ASC 260). Stock options and restricted stock awards are considered outstanding for this calculation unless unearned. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock-based compensation plans. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements. |
Income Taxes | Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on available-for-sale ("AFS") debt securities, which are also recognized as separate components of shareholders’ equity, net of tax. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 13—Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Operating Segments | Operating Segments: While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. |
Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective In June 2016, Financial Accounting Standards Board (" FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments — Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments. The objective of ASU 2016-13 is to provide financial statement users with decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 includes provisions that require financial assets measured at amortized cost (such as loans and held-to-maturity debt securities) to be presented at the net amount expected to be collected. This will be accomplished through recognition of an estimate of all current expected credit losses. The estimate will include forecasted information for the timeframe that an entity is able to develop reasonable and supportable forecasts. This is a change from the current practice of recognizing incurred losses based on the probable initial recognition threshold under current GAAP. In addition, credit losses on available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a write-down recognized in other comprehensive income (loss). Under ASU 2016-13, an entity will be able to record reversals of credit losses in current period income when the estimate of credit losses declines, whereas current GAAP prohibits reflecting those improvements in current period earnings. In July 2019, the FASB proposed the effective date delay to January 2020 for SEC filers, excluding smaller reporting companies (“SRCs”) and emerging growth companies (“EGCs”), and January 2023 for all other entities including SRCs and EGCs, and in October 2019, the FASB voted to approve the proposed delay. The Company has established a committee to oversee the implementation of ASU 2016-13 and has engaged a third-party software vendor to assist the Company to develop a new expected credit loss model. The Company has completed development of its methodologies, data gathering and validation, and initial testing of its models. The Company has completed parallel runs in the third and fourth quarters of 2022 and its internal reviews of model results, including model development documentation and model validation by a third-party adviser. The Company adopted ASU 2016-13 on January 1, 2023 without electing the fair value option on eligible financial instruments. ASU 2016-13 was adopted using a modified retrospective approach through a cumulative effect adjustment to retained earnings. The Company's adoption of this ASU will result in an increase of approximately 10% to 15% in the allowance for credit losses. The adjustment recorded upon adoption to record the allowance for credit losses may fall outside of management’s estimated increase based on material changes in the economic forecast and conditions and composition of the loan portfolio used in calculating the allowance for credit losses upon adoption. In March 2022, FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) : Troubled Debt Restructurings and Vintage Disclosures. ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings in Accounting Standards Codification (“ASC”) Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, ASU 2022-02 requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. ASU 2022-02 will be effective on January 1, 2023, and we adopted ASU 2022-02 on that date . The adoption of ASU 2022-02 did not have a significant impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Therefore, this standards update is in effect from March 12, 2020 through December 31, 2022 and as extended by ASU 2022-06 to December 31, 2024 after which entities will no longer be permitted to apply the relief of Topic 848. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) : Scope." This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The Company is currently evaluating the impact of this pronouncement and the adoption of ASU 2020-04 is not expected to have a significant impact on our consolidated financial statements. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Consideration Paid for Loan portfolio and Amounts of Assets Purchased | The following table summarizes the consideration paid for the loan portfolio and the amounts of assets purchased: ($ in thousands) Consideration Cash $ 97,631 Recognized amounts of identifiable assets purchased: Loans (1) $ 100,003 Loan discounts (8,867) Accrued interest receivable 398 Servicing assets 6,097 Total recognized identifiable assets $ 97,631 (1) Consists of $92.2 million of SBA loans, $6.9 million of PPP loans and $919 thousand of real estate loans. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Fair Value, and Corresponding Amounts of Gross Unrealized Gains and Losses for Available for Sale Securities | The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of available-for-sale ("AFS") debt securities as of December 31, 2022 and 2021: December 31, 2022 ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 55,189 $ — $ (5,425) $ 49,764 Residential collateralized mortgage obligations 179,953 1 (19,909) 160,045 Total AFS debt securities $ 235,142 $ 1 $ (25,334) $ 209,809 December 31, 2021 ($ in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 37,555 $ 178 $ (321) $ 37,412 Residential collateralized mortgage obligations 114,588 253 (1,809) 113,032 Total AFS debt securities $ 152,143 $ 431 $ (2,130) $ 150,444 |
Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity | The amortized cost and estimated fair value of AFS debt securities as of December 31, 2022, by contractual maturity, are shown below: ($ in thousands) Amortized Fair After one year through five years $ 1,299 $ 1,244 After five years through ten years 2,246 2,096 After ten years 231,597 206,469 Total AFS debt securities $ 235,142 $ 209,809 |
Schedule of Unrealized Losses on AFS Debt Securities | The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss as of December 31, 2022 and 2021: December 31, 2022 Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 26,347 $ (1,485) $ 23,417 $ (3,940) $ 49,764 $ (5,425) Residential collateralized mortgage obligations 81,320 (3,888) 71,604 (16,021) 152,924 (19,909) Total AFS debt securities $ 107,667 $ (5,373) $ 95,021 $ (19,961) $ 202,688 $ (25,334) December 31, 2021 Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 31,120 $ (321) $ — $ — $ 31,120 $ (321) Residential collateralized mortgage obligations 93,607 (1,578) 7,212 (231) 100,819 (1,809) Total AFS debt securities $ 124,727 $ (1,899) $ 7,212 $ (231) $ 131,939 $ (2,130) |
Schedule of Other Investments | The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheets as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 FHLB stock $ 8,483 $ 7,006 PCBB stock 190 190 Mutual fund - CRA qualified 3,330 3,708 Time deposits placed in other banks 95 95 Total other investments $ 12,098 $ 10,999 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Composition of Loan Portfolio | The following table presents the composition of the loan portfolio as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 Commercial real estate $ 842,208 $ 701,450 SBA loans—real estate 221,340 220,099 SBA loans—non-real estate (1) 13,377 55,759 Commercial and industrial ("C&I") 116,951 162,543 Home mortgage 482,949 173,303 Consumer 1,467 865 Gross loans receivable 1,678,292 1,314,019 Allowance for loan losses (19,241) (16,123) Loans receivable, net (2) $ 1,659,051 $ 1,297,896 (1) Includes SBA Paycheck Protection Program ("PPP") loans of $442 thousand and $40.6 million as of December 31, 2022 and 2021, respectively. (2) Includes net deferred loan fees or costs, unamortized premiums and unaccreted discounts of $160 thousand and $7.0 million as of December 31, 2022 and 2021, respectively. |
Schedule of Activity in Allowance for Loan Losses by Portfolio Segment | The following table summarizes the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2022, 2021 and 2020: ($ in thousands) Commercial Real Estate SBA Loans— Real Estate SBA Loan s— Non- Real Estate C&I Home Mortgage Consumer Total Balance at January 1, 2020 $ 6,000 $ 939 $ 121 $ 1,289 $ 1,667 $ 34 $ 10,050 Provision for (reversal of) loan losses (1) 2,505 863 174 1,274 518 (16) 5,318 Charge-offs — — (45) — — — (45) Recoveries — — 28 — — 1 29 Balance at December 31, 2020 $ 8,505 $ 1,802 $ 278 $ 2,563 $ 2,185 $ 19 $ 15,352 (Reversal of) provision for loan losses (1) (355) 279 54 285 706 (10) 959 Charge-offs — (59) (136) — — — (195) Recoveries — — 3 — — 4 7 Balance at December 31, 2021 $ 8,150 $ 2,022 $ 199 $ 2,848 $ 2,891 $ 13 $ 16,123 (Reversal of) provision for loan losses (1) (1,199) (409) 66 (1,205) 5,935 (7) 3,181 Charge-offs — (14) (127) — — — (141) Recoveries — 8 69 — — 1 78 Balance at December 31, 2022 $ 6,951 $ 1,607 $ 207 $ 1,643 $ 8,826 $ 7 $ 19,241 (1) Excludes (reversal of) provision for uncollectible accrued interest receivable of $(205) thousand, $(438) thousand and $643 thousand for the years ended December 31, 2022, 2021 and 2020 respectively. The following table presents the allowance for loan losses and recorded investment (not including accrued interest receivable) by portfolio segment and impairment methodology as of December 31, 2022 and 2021: ($ in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total As of December 31, 2022 Allowance for loan losses (1) : Commercial real estate $ — $ 6,951 $ 6,951 SBA loans—real estate — 1,607 1,607 SBA loans—non-real estate — 207 207 C&I 279 1,364 1,643 Home mortgage — 8,826 8,826 Consumer — 7 7 Total $ 279 $ 18,962 $ 19,241 Loans (2) : Commercial real estate $ — $ 842,208 $ 842,208 SBA loans—real estate 423 220,917 221,340 SBA loans—non-real estate — 13,377 13,377 C&I 279 116,672 116,951 Home mortgage — 482,949 482,949 Consumer — 1,467 1,467 Total $ 702 $ 1,677,590 $ 1,678,292 As of December 31, 2021 Allowance for loan losses (1) : Commercial real estate $ — $ 8,150 $ 8,150 SBA loans—real estate — 2,022 2,022 SBA loans—non-real estate — 199 199 C&I 312 2,536 2,848 Home mortgage — 2,891 2,891 Consumer — 13 13 Total $ 312 $ 15,811 $ 16,123 Loans (2) : Commercial real estate $ — $ 701,450 $ 701,450 SBA loans—real estate 812 219,287 220,099 SBA loans—non-real estate — 55,759 55,759 C&I 312 162,231 162,543 Home mortgage — 173,303 173,303 Consumer — 865 865 Total $ 1,124 $ 1,312,895 $ 1,314,019 (1) Excludes (reversal of) provision for uncollectible accrued interest receivable of $(205) thousand, $(438) thousand and $643 thousand as of December 31, 2022, 2021 and 2020, respectively. (2) Excludes accrued interest receivables of $6.4 million and $4.4 million as of December 31, 2022, and 2021 , respectively. |
Schedule of Impaired Loans and Specific Allowance | The following table presents the recorded investment of individually impaired loans and the specific allowance for loan losses as of December 31, 2022 and 2021: December 31, 2022 (1) December 31, 2021 (1) ($ in thousands) Unpaid Principal Balance Recorded Recorded Related Unpaid Principal Balance Recorded Recorded Related SBA loans—real estate $ 423 $ 423 $ — $ — $ 812 $ 812 $ — $ — SBA loans—non-real estate — — — — — — — — C&I 279 — 279 279 313 — 313 313 Total $ 702 $ 423 $ 279 $ 279 $ 1,125 $ 812 $ 313 $ 313 (1) The difference between the unpaid principal balance (net of partial charge-offs) and the recorded investment in the loans was not considered to be material. The following table presents the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans by portfolio segment for the years ended December 31, 2022, 2021 and 2020. The difference between interest income recognized and cash basis interest recognized was immaterial. 2022 2021 2020 ($ in thousands) Average Interest Average Interest Average Interest SBA loans—real estate $ 409 $ — $ 597 $ — $ — $ — SBA loans—non-real estate — — — — 182 41 C&I 297 — 322 — 331 14 Total $ 706 $ — $ 919 $ — $ 513 $ 55 |
Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment | The following table presents the recorded investment in nonaccrual loans and loans past due 90 or more days and still accruing interest, by portfolio as of December 31, 2022 and 2021: ($ in thousands) Nonaccrual 90 or More Days Past Due & Still Accruing Total As of December 31, 2022 SBA loans—real estate $ 423 $ — $ 423 SBA loans—non-real estate 657 442 1,099 C&I 279 — 279 Home mortgage 1,280 — 1,280 Total $ 2,639 $ 442 $ 3,081 As of December 31, 2021 SBA loans—real estate $ 812 $ — $ 812 SBA loans—non-real estate 838 200 1,038 C&I 312 — 312 Home mortgage 1,038 — 1,038 Total $ 3,000 $ 200 $ 3,200 |
Schedule of Aging Analysis of Recorded Investment in Past Due Loans | The following table represents the aging analysis of the recorded investment in past due loans as of December 31, 2022 and 2021: ($ in thousands) 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Loans Not Past Due Total (1) As of December 31, 2022 Commercial real estate $ — $ — $ — $ — $ 842,208 $ 842,208 SBA—real estate 199 175 — 374 220,966 221,340 SBA—non-real estate 117 49 381 547 12,830 13,377 C&I — — 441 441 116,510 116,951 Home mortgage 1,707 1,522 342 3,571 479,378 482,949 Consumer — — — — 1,467 1,467 Total $ 2,023 $ 1,746 $ 1,164 $ 4,933 $ 1,673,359 $ 1,678,292 As of December 31, 2021 Commercial real estate $ — $ — $ — $ — $ 701,450 $ 701,450 SBA—real estate — — 419 419 219,680 220,099 SBA—non-real estate 76 336 881 1,293 54,466 55,759 C&I — — — — 162,543 162,543 Home mortgage — — 893 893 172,410 173,303 Consumer — — — — 865 865 Total $ 76 $ 336 $ 2,193 $ 2,605 $ 1,311,414 $ 1,314,019 (1) Excludes accrued interest receivables of $6.4 million and $4.4 million as of December 31, 2022 and 2021, respectively. |
Schedule of Credit Risk Ratings by Portfolio Segment | As of December 31, 2022 and 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: ($ in thousands) Pass Special Mention Substandard Doubtful Total (1) As of December 31, 2022 Commercial real estate $ 841,645 $ 563 $ — $ — $ 842,208 SBA loans—real estate 220,348 — 992 — 221,340 SBA loans—non-real estate 12,897 — 480 — 13,377 C&I 116,396 — 279 276 116,951 Home mortgage 481,669 — 1,280 — 482,949 Consumer 1,467 — — — 1,467 Total $ 1,674,422 $ 563 $ 3,031 $ 276 $ 1,678,292 As of December 31, 2021 Commercial real estate $ 701,450 $ — $ — $ — $ 701,450 SBA loans—real estate 218,408 — 1,691 — 220,099 SBA loans—non-real estate 54,762 — 966 31 55,759 C&I 162,230 — 313 — 162,543 Home mortgage 172,265 — 1,038 — 173,303 Consumer 865 — — — 865 Total $ 1,309,980 $ — $ 4,008 $ 31 $ 1,314,019 (1) Excludes accrued interest receivables 2021 , respectively. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The following table presents information regarding the premises and equipment as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 Leasehold improvements $ 7,998 $ 7,375 Furniture and fixtures 3,983 3,530 Equipment and others 3,288 2,955 Total premises and equipment 15,269 13,860 Accumulated depreciation (10,869) (9,505) Total premises and equipment, net $ 4,400 $ 4,355 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Servicing Asset [Abstract] | |
Schedule of Activity for Loan Servicing Assets | The following table presents an analysis of the changes in activity for loan servicing assets during the years ended December 31, 2022 and 2021: Year Ended December 31, ($ in thousands) 2022 2021 Beginning balance $ 12,720 $ 7,360 Additions from loans sold with servicing retained 4,424 2,799 Additions from purchase of servicing rights — 6,097 Amortized to expense (4,385) (3,536) Ending balance $ 12,759 $ 12,720 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | The table below summarizes total lease cost for the periods indicated : Year Ended December 31, ($ in thousands) 2022 2021 Operating lease cost $ 2,046 $ 1,852 Variable lease cost 859 739 Total lease cost $ 2,905 $ 2,591 |
Schedule of Other Information Related to Operating Leases | The tables below summarize other information related to the Company’s operating leases as of the associated period: Year Ended December 31, ($ in thousands) 2022 2021 Operating right-of-use assets $ 9,097 $ 8,905 Operating lease liabilities $ 10,213 $ 10,307 Weighted average remaining lease term - operating leases 6.3 years 6.9 years Weighted average discount rate - operating leases 2.44 % 2.02 % Year Ended December 31, ($ in thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,253 $ 2,082 |
Schedule of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease liability | The table below summarizes the remaining contractually obligated lease payments and a reconciliation to the lease liability reported on the Consolidated Balance Sheets as of December 31, 2022: ($ in thousands) December 31, 2023 $ 2,467 2024 2,466 2025 1,611 2026 1,969 2027 1,888 Thereafter 3,473 Total lease payments 13,874 Discount to present value (3,661) Total lease liability $ 10,213 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | The following table presents the scheduled contractual maturities of time deposits as of December 31, 2022: ($ in thousands) December 31, 2023 $ 630,543 2024 25,661 2025 1,161 2026 320 2027 181 Total $ 657,866 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings Available to the Company from Institutions | The Company had available borrowings from the following institutions as of December 31, 2022: ($ in thousands) FHLB—San Francisco $ 440,358 Federal Reserve Bank 175,605 Pacific Coast Bankers Bank 50,000 Zions Bank 25,000 First Horizon Bank 24,950 Total $ 715,913 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The following table presents the components of income taxes expense (benefit) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, ($ in thousands) 2022 2021 2020 Current income tax expense: Federal $ 7,959 $ 9,243 $ 4,837 State 4,374 4,885 2,596 Total current income tax expense 12,333 14,128 7,433 Deferred income tax (benefit) expense: Federal 783 (1,614) (1,516) State 298 (698) (810) Total deferred income tax (benefit) expense 1,081 (2,312) (2,326) Total income tax expense $ 13,414 $ 11,816 $ 5,107 |
Schedule of Effective Tax Rates Differ from Federal Statutory Rates | The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate for the periods indicated: Year Ended December 31, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in tax rate resulting from: Meals and entertainment — — 0.2 State income taxes, net of federal tax benefit 8.4 8.5 8.3 Stock option expense and related excess tax benefits — 0.1 (0.7) Company owned life insurance (0.2) (0.1) (0.3) Other, net (0.5) (0.4) (0.5) Effective tax rate 28.7 % 29.1 % 28.0 % |
Schedule of Net Deferred Tax Assets Included in Statement of Financial Position | The significant components of deferred tax assets and liabilities are reflected in the following table: December 31, ($ in thousands) 2022 2021 Deferred tax assets: Organizational costs $ 20 $ 22 Allowance for loan losses 5,688 4,827 Loans held for sale 852 2,919 Stock-based compensation 386 211 Accrued compensation 272 238 Lease liability 3,019 3,047 State taxes 989 1,059 Net unrealized loss on AFS debt securities 7,491 503 Nonaccrual loan interest income 46 62 Other 77 49 Total deferred tax assets 18,840 12,937 Deferred tax liabilities: Loan origination costs (1,407) (1,477) Depreciation (423) (379) Right of use asset (2,689) (2,633) Other (5) (39) Total deferred tax liabilities (4,524) (4,528) Net deferred tax asset $ 14,316 $ 8,409 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Distribution of Undisbursed Loan Commitments | The following table presents the distribution of undisbursed credit-related commitments as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 Loan commitments $ 265,110 $ 116,511 Standby letter of credit 5,286 4,477 Commercial letter of credit 451 1,028 Total undisbursed credit related commitments $ 270,847 $ 122,016 |
Schedule of Balance and Total Unfunded Commitments Related to Investment in Low Income Housing Partnerships | The following table shows the balance of the investments in low-income housing partnerships and the total unfunded commitments related to the investments in low-income housing partnerships as of December 31, 2022 and 2021: December 31, ($ in thousands) 2022 2021 Investments in low-income housing partnerships $ 12,212 $ 7,911 Unfunded commitments to fund investments for low-income housing partnerships 8,748 4,825 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Stock Options Activity | A summary of the transactions under the 2005 Plan for the year ended December 31, 2022 is as follows: ($ in thousands, except share data) Number of Weighted Aggregate Outstanding, as of January 1, 2022 52,000 $ 6.37 $ 333 Options granted — — Options exercised (22,000) 5.82 Options forfeited — — Options expired — — Outstanding, as of December 31, 2022 30,000 $ 6.18 $ 149 Fully vested and expected to vest 30,000 $ 6.18 $ 149 Vested 30,000 $ 6.18 $ 149 A summary of the stock options outstanding under the 2010 Plan for the year ended December 31, 2022 is as follows: ($ in thousands, except share data) Number of Weighted Aggregate Outstanding, as of January 1, 2022 210,000 $ 8.00 $ 1,000 Options granted — — Options exercised (60,000) 8.00 Options forfeited — — Options expired — — Outstanding, as of December 31, 2022 150,000 $ 8.00 $ 474 Fully vested and expected to vest 150,000 $ 8.00 $ 474 Vested 150,000 $ 8.00 $ 474 |
Schedule of Information Related to Stock Option Plan | Information related to the 2005 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2022 2021 2020 Intrinsic value of options exercised $ 113 $ 231 $ 370 Cash received from option exercises 128 64 63 Tax benefit realized from option exercised 2 27 17 Information related to stock options exercised under the 2010 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2022 2021 2020 Intrinsic value of options exercised $ 224 $ 86 $ 729 Cash received from option exercises 480 25 317 Tax benefit realized from option exercised — — 157 |
Schedule of Changes in Non-vested Restricted Stock Awards | A summary of the changes in the Company's non-vested restricted stock awards under the 2010 Plan for the year ended December 31, 2022 is as follows: ($ in thousands, except share data) Shares Issued Weighted Average Grant Date Fair Value Aggregate Non-vested, as of January 1, 2022 21,000 $ 7.95 $ 268 Awards granted — — Awards vested — — Awards forfeited (6,500) 6.37 Non-vested, as of December 31, 2022 14,500 $ 8.66 $ 162 A summary of the changes in the Company’s non-vested restricted stock awards under the 2021 Plan for the year ended December 31, 2022 is as follows: ($ in thousands, except share data) Shares Issued Weighted Aggregate Non-vested, as of January 1, 2022 176,641 $ 9.90 $ 2,254 Awards granted 218,057 12.59 Awards vested (59,302) 9.92 Awards forfeited (18,030) 12.40 Non-vested, as of December 31, 2022 317,366 $ 11.60 $ 3,542 |
Schedule of Share Based Compensation Arrangement Information Related to Plan | Information related to vested restricted stock awards under the 2010 Plan for the periods indicated follows: Year Ended December 31, ($ in thousands) 2022 2021 2020 Tax (provision) benefit realized from awards vested $ — $ (85) $ 21 Information related to vested restricted stock awards under the 2021 Plan for the periods indicated follows: Year Ended Year Ended December 31, ($ in thousands) 2022 2021 2020 Tax benefit realized from awards vested $ 12 $ — $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021 are summarized below: Fair Value Measure on a Recurring Basis ($ in thousands) Total Quoted Significant Other Significant December 31, 2022 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 49,764 $ — $ 49,764 $ — Residential collateralized mortgage obligations 160,045 — 160,045 — Other investments: Mutual fund - CRA qualified 3,330 3,330 — — December 31, 2021 U.S. Government agencies or sponsored agency securities: Residential mortgage-backed securities $ 37,412 $ — $ 37,412 $ — Residential collateralized mortgage obligations 113,032 — 113,032 — Other investments: Mutual fund - CRA qualified 3,708 3,708 — — |
Schedule of Fair Value Hierarchy and Fair Value of Assets that Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis | The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of December 31, 2022 and 2021: Fair Value Measure on a Nonrecurring Basis ($ in thousands) Total Quoted Significant Other Significant December 31, 2022 Impaired loans $ 423 $ — $ — $ 423 December 31, 2021 Impaired loans $ 812 $ — $ — $ 812 |
Schedule of Increase (Decrease) In Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment | The following table presents the increase (decrease) in value of certain assets held at the end of the respective reporting periods presented for which a nonrecurring fair value adjustment was recognized during the period presented: Year Ended December 31, ($ in thousands) 2022 2021 2021 Impaired loans $ 28 $ 105 $ (84) |
Schedule of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements | The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of December 31, 2022 and 2021: ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) December 31, 2022 Impaired loans: SBA loans—real estate $ 423 Income approach - income capitalization Capitalization rate 11.5% 11.5% December 31, 2021 Impaired loans: SBA loans—real estate $ 418 Market approach Market data comparison 2% to 17% 8.7% SBA loans—real estate $ 394 Income approach - income capitalization Capitalization rate 12.0% 12.0% (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of December 31, 2022 and 2021 . |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | Financial Instruments : The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of December 31, 2022 and 2021 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets: December 31, 2022 ($ in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 82,972 $ 82,972 $ — $ — $ 82,972 Loans held for sale 44,335 — 47,217 — 47,217 Loans receivable, net 1,659,051 — — 1,626,036 1,626,036 Accrued interest receivable, net 7,180 51 716 6,413 7,180 Other investments: FHLB and PCBB stock 8,673 N/A N/A N/A N/A Time deposits placed 95 — 95 — 95 Servicing assets 12,759 — — 16,845 16,845 Financial liabilities: Deposit 1,885,771 — 1,880,508 — 1,880,508 Accrued interest payable 2,771 — 2,771 — 2,771 December 31, 2021 ($ in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 115,459 $ 115,459 $ — $ — $ 115,459 Loans held for sale 89,428 — 99,301 — 99,301 Loans receivable, net 1,297,896 — — 1,291,926 1,291,926 Accrued interest receivable, net 4,579 — 348 4,231 4,579 Other investments: FHLB and PCBB stock 7,196 N/A N/A N/A N/A Time deposits placed 95 — 95 — 95 Servicing assets 12,720 — — 15,505 15,505 Financial liabilities: Deposit 1,534,066 — 1,534,066 — 1,534,066 Accrued interest payable 558 — 558 — 558 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer | The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: December 31, 2022 Actual (1) Required for Minimum ($ in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 213,862 13.06 % N/A N/A N/A N/A Bank 211,981 12.94 $ 131,020 8.00 % $ 163,775 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 194,358 11.87 N/A N/A N/A N/A Bank 192,477 11.75 98,265 6.00 131,020 8.00 Common equity Tier 1 capital (to risk-weighted Consolidated 194,358 11.87 N/A N/A N/A N/A Bank 192,477 11.75 73,699 4.50 106,454 6.50 Tier 1 capital (to average assets) Consolidated 194,358 9.38 N/A N/A N/A N/A Bank 192,477 9.29 82,836 4.00 103,545 5.00 (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. December 31, 2021 Actual (1) Required for Minimum ($ in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 182,439 13.66 % N/A N/A N/A N/A Bank 179,882 13.47 $ 106,857 8.00 % $ 133,572 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated 165,944 12.42 N/A N/A N/A N/A Bank 163,387 12.23 80,143 6.00 106,857 8.00 Common equity Tier 1 capital (to risk-weighted Consolidated 165,944 12.42 N/A N/A N/A N/A Bank 163,387 12.23 60,107 4.50 86,822 6.50 Tier 1 capital (to average assets) Consolidated 165,944 9.58 N/A N/A N/A N/A Bank 163,387 9.44 69,266 4.00 86,582 5.00 (1) The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, ($ in thousands, except share and per share data) 2022 2021 2020 Basic Net income $ 33,310 $ 28,840 $ 13,127 Distributed and undistributed earnings allocated to participating securities (704) (330) (195) Net income allocated to common shares $ 32,606 $ 28,510 $ 12,932 Weighted average common shares outstanding 15,171,240 15,087,686 15,196,351 Basic earnings per common share $ 2.15 $ 1.89 $ 0.85 Diluted Net income allocated to common shares $ 32,606 $ 28,510 $ 12,932 Weighted average common shares outstanding for basic earnings per common share 15,171,240 15,087,686 15,196,351 Add: Dilutive effects of assumed exercises of stock options 60,178 67,661 27,537 Average shares and dilutive potential common shares 15,231,418 15,155,347 15,223,888 Diluted earnings per common share $ 2.14 $ 1.88 $ 0.85 |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | The following tables present the Parent Company-only condensed financial statements: Condensed Balance Sheets December 31, ($ in thousands) 2022 2021 Assets Cash and cash equivalents $ 1,559 $ 2,431 Investment in bank subsidiary 175,035 162,666 Deferred tax assets 21 22 Other assets 301 136 Total assets $ 176,916 $ 165,255 Liabilities and shareholders' equity Other liabilities $ — $ 33 Shareholders’ equity 176,916 165,222 Total liabilities and shareholders' equity $ 176,916 $ 165,255 |
Schedule of Condensed Statements of Income and Comprehensive Income | Condensed Statements of Income and Comprehensive Income Year Ended December 31, ($ in thousands) 2022 2021 2020 Income Dividends from bank subsidiary $ 6,675 $ 5,123 $ 13,921 Expense Salaries and employee benefits 219 226 325 Occupancy and equipment 49 65 74 FDIC insurance and regulatory assessments — 8 1 Directors’ fees 214 135 527 Other expense 395 169 120 Total expense 877 603 1,047 Income before income tax benefit and undistributed net income of bank subsidiary 5,798 4,520 12,874 Income tax benefit 202 141 275 Equity in undistributed net income (loss) of bank subsidiary 27,310 24,178 (22) Net income 33,310 28,839 13,127 Other comprehensive (loss) income, net of tax (16,646) (2,037) 652 Comprehensive income $ 16,664 $ 26,802 $ 13,779 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows December 31, ($ in thousands) 2022 2021 2020 Cash flows from operating activities Net income $ 33,310 $ 28,839 $ 13,127 Adjustments: Equity in undistributed net loss of bank subsidiary (33,985) (29,301) (13,899) Change in other assets (164) (124) 107 Change in other liabilities (33) (414) 359 Net cash used in operating activities (872) (1,000) (306) Cash flows from investing activities Net cash from investing activities — — — Cash flows from financing activities Repurchase of common stock — (28) (8,104) Cash dividend paid on common stock (6,674) (5,132) (4,262) Proceeds from subsidiaries 6,675 5,123 13,921 Net cash provided by (used in) financing activities 1 (37) 1,555 Net change in cash and cash equivalents (871) (1,037) 1,249 Cash and cash equivalents at beginning of year 2,431 3,468 2,219 Cash and cash equivalents at end of year $ 1,560 $ 2,431 $ 3,468 |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
May 24, 2021 USD ($) | Dec. 31, 2022 USD ($) branch | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Number of full service branches | branch | 10 | |||
Loans | $ 1,659,051,000 | $ 1,297,896,000 | ||
Servicing assets | 12,759,000 | 12,720,000 | ||
Accrued interest receivable | $ 7,180,000 | 4,579,000 | ||
Actual loss history (in years) | 2 years | |||
Actual loss no sufficient history (in years) | 8 years | |||
Interest and/or penalties related to income tax matters | $ 0 | $ 0 | ||
Equipment and Furnishings | Minimum | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Equipment and furnishings, useful lives | 3 years | |||
Equipment and Furnishings | Maximum | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Equipment and furnishings, useful lives | 10 years | |||
Hana Small Business Lending Inc | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Payments to purchase loan portfolio | $ 97,631,000 | |||
Loans | 100,003,000 | |||
Loan discounts | 8,867,000 | |||
Servicing assets | 6,097,000 | |||
Accrued interest receivable | $ 398,000 | |||
Hana Small Business Lending Inc | Purchased Performing Loans | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Allowance for loans receivable | $ 0 | |||
Open Bank | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Percentage of voting equity interests acquired | 100% |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Schedule of Consideration Paid for Loan Portfolio and Amounts of Assets Purchased (Details) - USD ($) $ in Thousands | May 24, 2021 | Dec. 31, 2022 | Dec. 31, 2021 |
Asset Acquisition [Line Items] | |||
Loans | $ 1,659,051 | $ 1,297,896 | |
Accrued interest receivable | 7,180 | 4,579 | |
Servicing assets | 12,759 | 12,720 | |
Total assets | $ 2,094,497 | $ 1,726,691 | |
Hana Small Business Lending Inc | |||
Asset Acquisition [Line Items] | |||
Cash | $ 97,631 | ||
Loans | 100,003 | ||
Loan discounts | (8,867) | ||
Accrued interest receivable | 398 | ||
Servicing assets | 6,097 | ||
Total assets | 97,631 | ||
Hana Small Business Lending Inc | PPP loans | |||
Asset Acquisition [Line Items] | |||
Loans | 6,900 | ||
Hana Small Business Lending Inc | SBA Loan Portfolio | |||
Asset Acquisition [Line Items] | |||
Loans | 92,200 | ||
Hana Small Business Lending Inc | Real Estate | |||
Asset Acquisition [Line Items] | |||
Loans | $ 919 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost, Fair Value, and Corresponding Amounts of Gross Unrealized Gains and Losses for Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities [Line Items] | ||
Amortized Cost | $ 235,142 | $ 152,143 |
Gross Unrealized Gain | 1 | 431 |
Gross Unrealized Loss | (25,334) | (2,130) |
Fair Value | 209,809 | 150,444 |
Residential mortgage-backed securities | ||
Securities [Line Items] | ||
Amortized Cost | 55,189 | 37,555 |
Gross Unrealized Gain | 0 | 178 |
Gross Unrealized Loss | (5,425) | (321) |
Fair Value | 49,764 | 37,412 |
Residential collateralized mortgage obligations | ||
Securities [Line Items] | ||
Amortized Cost | 179,953 | 114,588 |
Gross Unrealized Gain | 1 | 253 |
Gross Unrealized Loss | (19,909) | (1,809) |
Fair Value | $ 160,045 | $ 113,032 |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Securities [Line Items] | |||
Proceeds from sale of available-for-sale securities | $ 0 | ||
Equity investment in mutual fund with readily determinable fair value | 3,300,000 | $ 3,700,000 | |
Other Income | |||
Securities [Line Items] | |||
Unrealized holding (losses) gains of mutual fund | (431,000) | (108,000) | $ 79,000 |
Collateral Pledged | |||
Securities [Line Items] | |||
Number of securities pledged as collateral | $ 0 | $ 0 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
After one year through five years | $ 1,299 | |
After five years through ten years | 2,246 | |
After ten years | 231,597 | |
Amortized Cost | 235,142 | $ 152,143 |
Fair Value | ||
After one year through five years | 1,244 | |
After five years through ten years | 2,096 | |
After ten years | 206,469 | |
Fair Value | $ 209,809 | $ 150,444 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses on AFS Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities [Line Items] | ||
Fair Value, Less Than 12 Months | $ 107,667 | $ 124,727 |
Unrealized Losses, Less Than 12 Months | (5,373) | (1,899) |
Fair Value, 12 Months or Longer | 95,021 | 7,212 |
Unrealized Losses, 12 Months or Longer | (19,961) | (231) |
Total Fair Value | 202,688 | 131,939 |
Total Unrealized Losses | (25,334) | (2,130) |
Residential mortgage-backed securities | ||
Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 26,347 | 31,120 |
Unrealized Losses, Less Than 12 Months | (1,485) | (321) |
Fair Value, 12 Months or Longer | 23,417 | 0 |
Unrealized Losses, 12 Months or Longer | (3,940) | 0 |
Total Fair Value | 49,764 | 31,120 |
Total Unrealized Losses | (5,425) | (321) |
Residential collateralized mortgage obligations | ||
Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 81,320 | 93,607 |
Unrealized Losses, Less Than 12 Months | (3,888) | (1,578) |
Fair Value, 12 Months or Longer | 71,604 | 7,212 |
Unrealized Losses, 12 Months or Longer | (16,021) | (231) |
Total Fair Value | 152,924 | 100,819 |
Total Unrealized Losses | $ (19,909) | $ (1,809) |
Securities - Schedule of Other
Securities - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Securities [Line Items] | ||
Mutual fund - CRA qualified | $ 3,300 | $ 3,700 |
Other Investments | ||
Securities [Line Items] | ||
FHLB stock | 8,483 | 7,006 |
PCBB stock | 190 | 190 |
Mutual fund - CRA qualified | 3,330 | 3,708 |
Time deposits placed in other banks | 95 | 95 |
Total other investments | $ 12,098 | $ 10,999 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Schedule of Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Gross loans receivable | $ 1,678,292 | $ 1,314,019 | ||
Allowance for loan losses | (19,241) | (16,123) | $ (15,352) | $ (10,050) |
Loans receivable, net | 1,659,051 | 1,297,896 | ||
Deferred loan fees, unamortized premiums and unaccreted (discounts) | 160 | 7,000 | ||
Real Estate | Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Gross loans receivable | 842,208 | 701,450 | ||
Real Estate | SBA loans—real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Gross loans receivable | 221,340 | 220,099 | ||
SBA loans—non-real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Gross loans receivable | 13,377 | 55,759 | ||
Allowance for loan losses | (207) | (199) | (278) | (121) |
SBA loans—non-real estate | PPP loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans receivable, net | 442 | 40,600 | ||
Commercial and industrial ("C&I") | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Gross loans receivable | 116,951 | 162,543 | ||
Allowance for loan losses | (1,643) | (2,848) | (2,563) | (1,289) |
Home mortgage | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Gross loans receivable | 482,949 | 173,303 | ||
Allowance for loan losses | (8,826) | (2,891) | (2,185) | (1,667) |
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Gross loans receivable | 1,467 | 865 | ||
Allowance for loan losses | $ (7) | $ (13) | $ (19) | $ (34) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, related parties | $ 0 | $ 0 | $ 0 | $ 0 |
Recorded investment in troubled debt restructurings | 279,000 | 313,000 | 279,000 | 313,000 |
Specific reserves to loans classified as TDRs | $ 279,000 | $ 313,000 | $ 279,000 | $ 313,000 |
Loans identified as TDRs | loan | 0 | 0 | 0 | 0 |
Financing receivable, modifications, subsequent default, recorded investment | $ 0 | $ 0 | ||
SBA PPP Loan | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans funded | $ 154,500,000 | 154,500,000 | ||
Loans forgiven | 154,000,000 | 154,000,000 | ||
SBA loans—non-real estate | SBA PPP Loan | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Gross loans receivable | $ 442,000 | $ 442,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Schedule of Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of allowance for loan losses | |||
Beginning balance | $ 16,123 | $ 15,352 | $ 10,050 |
(Reversal of) provision for loan losses | 3,181 | 959 | 5,318 |
Charge-offs | (141) | (195) | (45) |
Recoveries | 78 | 7 | 29 |
Ending balance | 19,241 | 16,123 | 15,352 |
Provision for loan losses | 2,976 | 522 | 5,961 |
Uncollectible Accrued Interest Receivable | |||
Analysis of allowance for loan losses | |||
Provision for loan losses | (205) | (438) | 643 |
Commercial real estate | |||
Analysis of allowance for loan losses | |||
Beginning balance | 8,150 | 8,505 | 6,000 |
(Reversal of) provision for loan losses | (1,199) | (355) | 2,505 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 6,951 | 8,150 | 8,505 |
SBA loans—real estate | |||
Analysis of allowance for loan losses | |||
Beginning balance | 2,022 | 1,802 | 939 |
(Reversal of) provision for loan losses | (409) | 279 | 863 |
Charge-offs | (14) | (59) | 0 |
Recoveries | 8 | 0 | 0 |
Ending balance | 1,607 | 2,022 | 1,802 |
SBA loans—non-real estate | |||
Analysis of allowance for loan losses | |||
Beginning balance | 199 | 278 | 121 |
(Reversal of) provision for loan losses | 66 | 54 | 174 |
Charge-offs | (127) | (136) | (45) |
Recoveries | 69 | 3 | 28 |
Ending balance | 207 | 199 | 278 |
Commercial and industrial ("C&I") | |||
Analysis of allowance for loan losses | |||
Beginning balance | 2,848 | 2,563 | 1,289 |
(Reversal of) provision for loan losses | (1,205) | 285 | 1,274 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 1,643 | 2,848 | 2,563 |
Home mortgage | |||
Analysis of allowance for loan losses | |||
Beginning balance | 2,891 | 2,185 | 1,667 |
(Reversal of) provision for loan losses | 5,935 | 706 | 518 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 8,826 | 2,891 | 2,185 |
Consumer | |||
Analysis of allowance for loan losses | |||
Beginning balance | 13 | 19 | 34 |
(Reversal of) provision for loan losses | (7) | (10) | (16) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 1 | 4 | 1 |
Ending balance | $ 7 | $ 13 | $ 19 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses and Recorded Investment by Portfolio Segment and Impairment Methodology (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loans Individually Evaluated for Impairment | $ 279 | $ 312 | ||
Allowance for Loan Collectively Evaluated for Impairment | 18,962 | 15,811 | ||
Allowance for loan losses, Total | 19,241 | 16,123 | $ 15,352 | $ 10,050 |
Loans Individually Evaluated for Impairment | 702 | 1,124 | ||
Loans Collectively Evaluated for Impairment | 1,677,590 | 1,312,895 | ||
Loans, Total | 1,678,292 | 1,314,019 | ||
Provision for loan losses | 2,976 | 522 | 5,961 | |
Accrued interest receivable, allowance | 0 | 205 | ||
Accrued interest receivable | 6,400 | 4,400 | ||
Uncollectible Accrued Interest Receivable | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Provision for loan losses | (205) | (438) | 643 | |
Commercial real estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Collectively Evaluated for Impairment | 6,951 | 8,150 | ||
Allowance for loan losses, Total | 6,951 | 8,150 | 8,505 | 6,000 |
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Loans Collectively Evaluated for Impairment | 842,208 | 701,450 | ||
Loans, Total | 842,208 | 701,450 | ||
SBA loans—real estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Collectively Evaluated for Impairment | 1,607 | 2,022 | ||
Allowance for loan losses, Total | 1,607 | 2,022 | 1,802 | 939 |
Loans Individually Evaluated for Impairment | 423 | 812 | ||
Loans Collectively Evaluated for Impairment | 220,917 | 219,287 | ||
Loans, Total | 221,340 | 220,099 | ||
SBA loans—non-real estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Collectively Evaluated for Impairment | 207 | 199 | ||
Allowance for loan losses, Total | 207 | 199 | 278 | 121 |
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Loans Collectively Evaluated for Impairment | 13,377 | 55,759 | ||
Loans, Total | 13,377 | 55,759 | ||
Commercial and industrial ("C&I") | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loans Individually Evaluated for Impairment | 279 | 312 | ||
Allowance for Loan Collectively Evaluated for Impairment | 1,364 | 2,536 | ||
Allowance for loan losses, Total | 1,643 | 2,848 | 2,563 | 1,289 |
Loans Individually Evaluated for Impairment | 279 | 312 | ||
Loans Collectively Evaluated for Impairment | 116,672 | 162,231 | ||
Loans, Total | 116,951 | 162,543 | ||
Home mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Collectively Evaluated for Impairment | 8,826 | 2,891 | ||
Allowance for loan losses, Total | 8,826 | 2,891 | 2,185 | 1,667 |
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Loans Collectively Evaluated for Impairment | 482,949 | 173,303 | ||
Loans, Total | 482,949 | 173,303 | ||
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for Loans Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Collectively Evaluated for Impairment | 7 | 13 | ||
Allowance for loan losses, Total | 7 | 13 | $ 19 | $ 34 |
Loans Individually Evaluated for Impairment | 0 | 0 | ||
Loans Collectively Evaluated for Impairment | 1,467 | 865 | ||
Loans, Total | $ 1,467 | $ 865 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Recorded Investment of Individually Impaired Loans and Specific Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Unpaid Principal Balance | $ 702 | $ 1,125 |
Recorded Investment With No Allowance | 423 | 812 |
Recorded Investment With Allowance | 279 | 313 |
Related Allowance | 279 | 313 |
SBA loans—real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Unpaid Principal Balance | 423 | 812 |
Recorded Investment With No Allowance | 423 | 812 |
Recorded Investment With Allowance | 0 | 0 |
Related Allowance | 0 | 0 |
SBA loans—non-real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Related Allowance | 0 | 0 |
Commercial and industrial ("C&I") | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Unpaid Principal Balance | 279 | 313 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 279 | 313 |
Related Allowance | $ 279 | $ 313 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Schedule of Average Recorded Investment In Impaired Loans and Amount of Interest Income Recognized on Impaired Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | $ 706 | $ 919 | $ 513 |
Interest Income Recognized | 0 | 0 | 55 |
SBA loans—real estate | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 409 | 597 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
SBA loans—non-real estate | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 0 | 0 | 182 |
Interest Income Recognized | 0 | 0 | 41 |
Commercial and industrial ("C&I") | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 297 | 322 | 331 |
Interest Income Recognized | $ 0 | $ 0 | $ 14 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Schedule of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 or More Days and Still Accruing Interest by Portfolio Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | $ 2,639 | $ 3,000 |
Loans >90 Days Past Due & Still Accruing | 442 | 200 |
Total | 3,081 | 3,200 |
SBA loans—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 423 | 812 |
Loans >90 Days Past Due & Still Accruing | 0 | 0 |
Total | 423 | 812 |
SBA loans—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 657 | 838 |
Loans >90 Days Past Due & Still Accruing | 442 | 200 |
Total | 1,099 | 1,038 |
Commercial and industrial ("C&I") | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 279 | 312 |
Loans >90 Days Past Due & Still Accruing | 0 | 0 |
Total | 279 | 312 |
Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Nonaccrual | 1,280 | 1,038 |
Loans >90 Days Past Due & Still Accruing | 0 | 0 |
Total | $ 1,280 | $ 1,038 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Schedule of Aging Analysis of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | $ 1,678,292 | $ 1,314,019 |
Accrued interest receivable | 6,400 | 4,400 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 842,208 | 701,450 |
SBA loans—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 221,340 | 220,099 |
SBA loans—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 13,377 | 55,759 |
Commercial and industrial ("C&I") | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 116,951 | 162,543 |
Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 482,949 | 173,303 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,467 | 865 |
Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 4,933 | 2,605 |
Total Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
Total Past Due | SBA loans—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 374 | 419 |
Total Past Due | SBA loans—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 547 | 1,293 |
Total Past Due | Commercial and industrial ("C&I") | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 441 | 0 |
Total Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 3,571 | 893 |
Total Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 2,023 | 76 |
30-59 Days Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
30-59 Days Past Due | SBA loans—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 199 | 0 |
30-59 Days Past Due | SBA loans—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 117 | 76 |
30-59 Days Past Due | Commercial and industrial ("C&I") | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
30-59 Days Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,707 | 0 |
30-59 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,746 | 336 |
60-89 Days Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
60-89 Days Past Due | SBA loans—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 175 | 0 |
60-89 Days Past Due | SBA loans—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 49 | 336 |
60-89 Days Past Due | Commercial and industrial ("C&I") | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
60-89 Days Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,522 | 0 |
60-89 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
90 or More Days Pass Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,164 | 2,193 |
90 or More Days Pass Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
90 or More Days Pass Due | SBA loans—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 419 |
90 or More Days Pass Due | SBA loans—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 381 | 881 |
90 or More Days Pass Due | Commercial and industrial ("C&I") | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 441 | 0 |
90 or More Days Pass Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 342 | 893 |
90 or More Days Pass Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 0 | 0 |
Loans Not Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 1,673,359 | 1,311,414 |
Loans Not Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 842,208 | 701,450 |
Loans Not Past Due | SBA loans—real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 220,966 | 219,680 |
Loans Not Past Due | SBA loans—non-real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 12,830 | 54,466 |
Loans Not Past Due | Commercial and industrial ("C&I") | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 116,510 | 162,543 |
Loans Not Past Due | Home mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | 479,378 | 172,410 |
Loans Not Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Gross loans receivable | $ 1,467 | $ 865 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Schedule of Credit Risk Ratings by Portfolio Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 1,678,292 | $ 1,314,019 |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accrued interest receivable, net of allowance of $0 in 2022 and $205 in 2021 | Accrued interest receivable, net of allowance of $0 in 2022 and $205 in 2021 |
Accrued interest receivable | $ 6,400 | $ 4,400 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,674,422 | 1,309,980 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 563 | 0 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 3,031 | 4,008 |
Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 276 | 31 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 842,208 | 701,450 |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 841,645 | 701,450 |
Commercial real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 563 | 0 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
SBA loans—real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 221,340 | 220,099 |
SBA loans—real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 220,348 | 218,408 |
SBA loans—real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
SBA loans—real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 992 | 1,691 |
SBA loans—real estate | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
SBA loans—non-real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 13,377 | 55,759 |
SBA loans—non-real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 12,897 | 54,762 |
SBA loans—non-real estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
SBA loans—non-real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 480 | 966 |
SBA loans—non-real estate | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 31 |
Commercial and industrial ("C&I") | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 116,951 | 162,543 |
Commercial and industrial ("C&I") | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 116,396 | 162,230 |
Commercial and industrial ("C&I") | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial and industrial ("C&I") | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 279 | 313 |
Commercial and industrial ("C&I") | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 276 | 0 |
Home mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 482,949 | 173,303 |
Home mortgage | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 481,669 | 172,265 |
Home mortgage | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Home mortgage | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,280 | 1,038 |
Home mortgage | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,467 | 865 |
Consumer | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,467 | 865 |
Consumer | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Total premises and equipment | $ 15,269 | $ 13,860 |
Accumulated depreciation | (10,869) | (9,505) |
Total premises and equipment, net | 4,400 | 4,355 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total premises and equipment | 7,998 | 7,375 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total premises and equipment | 3,983 | 3,530 |
Equipment and others | ||
Property Plant And Equipment [Line Items] | ||
Total premises and equipment | $ 3,288 | $ 2,955 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1.4 | $ 1.3 | $ 1.3 |
Servicing Assets - Additional I
Servicing Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Assets At Amortized Value [Line Items] | ||
Valuation allowance for impairment | $ 0 | $ 0 |
Servicing assets | $ 16,845,000 | $ 15,505,000 |
Minimum | ||
Servicing Assets At Amortized Value [Line Items] | ||
Fair value of servicing assets, discount rates | 4.40% | 3.75% |
Fair value of servicing assets, prepayment speed | 13.10% | 14.60% |
Maximum | ||
Servicing Assets At Amortized Value [Line Items] | ||
Fair value of servicing assets, discount rates | 9.90% | 10% |
Fair value of servicing assets, prepayment speed | 13.80% | 15% |
Servicing Assets - Schedule of
Servicing Assets - Schedule of Activity for Loan Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of Changes in Activity | |||
Beginning balance | $ 12,720 | $ 7,360 | |
Amortized to expense | (4,385) | (3,536) | $ (1,737) |
Ending balance | 12,759 | 12,720 | $ 7,360 |
Loans Sold with Servicing Retained | |||
Analysis of Changes in Activity | |||
Additions | 4,424 | 2,799 | |
Purchase Of Servicing Rights | |||
Analysis of Changes in Activity | |||
Additions | $ 0 | $ 6,097 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | |||
Lease renewal term | 5 years | ||
Operating right-of-use assets | $ 9,097 | $ 8,905 | |
Operating lease liabilities | 10,213 | 10,307 | |
Operating lease rent expense | $ 2,900 | $ 2,600 | $ 2,500 |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Remaining operating lease terms | 1 year | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Remaining operating lease terms | 10 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,046 | $ 1,852 |
Variable lease cost | 859 | 739 |
Total lease cost | $ 2,905 | $ 2,591 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating right-of-use assets | $ 9,097 | $ 8,905 |
Operating lease liabilities | $ 10,213 | $ 10,307 |
Weighted average remaining lease term - operating leases | 6 years 3 months 18 days | 6 years 10 months 24 days |
Weighted average discount rate - operating leases | 2.44% | 2.02% |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 2,253 | $ 2,082 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Contractually Obligated Lease Payments and Reconciliation to Lease liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 2,467 | |
2024 | 2,466 | |
2025 | 1,611 | |
2026 | 1,969 | |
2027 | 1,888 | |
Thereafter | 3,473 | |
Total lease payments | 13,874 | |
Discount to present value | (3,661) | |
Total lease liability | $ 10,213 | $ 10,307 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Time Deposits [Line Items] | ||
Time deposits greater than $250 | $ 356,197 | $ 207,288 |
Principal Officers, Directors, and Affiliates | ||
Time Deposits [Line Items] | ||
Deposits from principal officers, directors, and their affiliates | $ 810 | $ 1,200 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Deposits [Abstract] | |
2023 | $ 630,543 |
2024 | 25,661 |
2025 | 1,161 |
2026 | 320 |
2027 | 181 |
Total | $ 657,866 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank borrowings | $ 50,000 | $ 0 |
FHLB interest rate | 4.85% | |
Letter of credit | $ 67,000,000 | 67,000,000 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans | 1,659,051,000 | 1,297,896,000 |
Asset Pledged as Collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans | $ 1,240,000,000 | $ 958,300,000 |
Borrowing Arrangements - Schedu
Borrowing Arrangements - Schedule of Borrowings Available to the Company from Institutions (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 715,913 |
Federal Reserve Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 175,605 |
Pacific Coast Bankers Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 50,000 |
Zions Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 25,000 |
First Horizon Bank | |
Debt Disclosure [Line Items] | |
Amount of borrowings | 24,950 |
FHLB—San Francisco | |
Debt Disclosure [Line Items] | |
Amount of borrowings | $ 440,358 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax expense: | |||
Federal | $ 7,959 | $ 9,243 | $ 4,837 |
State | 4,374 | 4,885 | 2,596 |
Total current income tax expense | 12,333 | 14,128 | 7,433 |
Deferred income tax (benefit) expense: | |||
Federal | 783 | (1,614) | (1,516) |
State | 298 | (698) | (810) |
Total deferred income tax (benefit) expense | 1,081 | (2,312) | (2,326) |
Total income tax expense | $ 13,414 | $ 11,816 | $ 5,107 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rates Differ from Federal Statutory Rates (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21% | 21% | 21% |
Increase (decrease) in tax rate resulting from: | |||
Meals and entertainment | 0% | 0% | 0.20% |
State income taxes, net of federal tax benefit | 8.40% | 8.50% | 8.30% |
Stock option expense and related excess tax benefits | 0% | 0.10% | (0.70%) |
Company owned life insurance | (0.20%) | (0.10%) | (0.30%) |
Other, net | (0.50%) | (0.40%) | (0.50%) |
Effective tax rate | 28.70% | 29.10% | 28% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets Included in Statement of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Organizational costs | $ 20 | $ 22 |
Allowance for loan losses | 5,688 | 4,827 |
Loans held for sale | 852 | 2,919 |
Stock-based compensation | 386 | 211 |
Accrued compensation | 272 | 238 |
Lease liability | 3,019 | 3,047 |
State taxes | 989 | 1,059 |
Net unrealized loss on AFS debt securities | 7,491 | 503 |
Nonaccrual loan interest income | 46 | 62 |
Other | 77 | 49 |
Total deferred tax assets | 18,840 | 12,937 |
Deferred tax liabilities: | ||
Loan origination costs | (1,407) | (1,477) |
Depreciation | (423) | (379) |
Right of use asset | (2,689) | (2,633) |
Other | (5) | (39) |
Total deferred tax liabilities | (4,524) | (4,528) |
Net deferred tax asset | $ 14,316 | $ 8,409 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Unrealized tax benefits | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Distribution of Undisbursed Credit-Related Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other commitment | $ 270,847 | $ 122,016 |
Standby letter of credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit outstanding | 5,286 | 4,477 |
Commercial letter of credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit outstanding | 451 | 1,028 |
Loan commitments | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Other commitment | $ 265,110 | $ 116,511 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Balance and Total Unfunded Commitments Related to Investment in Low Income Housing Partnerships (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Investments in low-income housing partnerships | $ 12,212 | $ 7,911 |
Unfunded commitments to fund investments for low-income housing partnerships | $ 8,748 | $ 4,825 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Recognized amortization expense | $ 697 | $ 522 | $ 262 |
Recognized tax credits and other benefits | $ 926 | $ 651 | $ 313 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) plan shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Dec. 31, 2013 shares | Dec. 31, 2010 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of stock-based compensation plans | plan | 3 | ||||
Share based compensation expense | $ | $ 1,200 | $ 558 | $ 1,100 | ||
2005 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation shares authorized under stock option plans (in shares) | 770,000 | ||||
Percent of the fair value options granted | 100% | ||||
Weighted average remaining contractual term stock options outstanding | 8 months 12 days | ||||
Weighted average remaining contractual life for options exercisable | 8 months 12 days | ||||
Number of options outstanding, granted (in shares) | 0 | ||||
2005 Plan | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Stock options, when granted, expiration period | 10 years | ||||
2010 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation shares authorized under stock option plans (in shares) | 2,500,000 | 1,350,000 | |||
Percent of the fair value options granted | 100% | ||||
Weighted average remaining contractual term stock options outstanding | 1 year 3 months 18 days | ||||
Weighted average remaining contractual life for options exercisable | 1 year 3 months 18 days | ||||
Number of options outstanding, granted (in shares) | 0 | ||||
2010 Plan | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Stock options, when granted, expiration period | 10 years | ||||
2010 Plan | Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation costs related to unvested stock options | $ | $ 30 | ||||
Unrecognized compensation costs weighted average period | 1 year 6 months | ||||
2021 Plan | Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation shares authorized under stock option plans (in shares) | 1,500,000 | ||||
Percent of the fair value options granted | 100% | ||||
Unrecognized compensation costs weighted average period | 2 years 6 months | ||||
Number of options outstanding, granted (in shares) | 0 | ||||
Shares available for future grant (in shares) | 1,130,583 | ||||
Unrecognized compensation costs related to unvested restricted stock awards | $ | $ 2,800 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-based Compensation Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
2005 Plan | ||
Number of Options Outstanding | ||
Number of options outstanding, beginning of period (in shares) | 52,000 | |
Number of options outstanding, granted (in shares) | 0 | |
Number of options outstanding, exercised (in shares) | (22,000) | |
Number of options outstanding, forfeited (in shares) | 0 | |
Number of options outstanding, expired (in shares) | 0 | |
Number of options outstanding, ending of period (in shares) | 30,000 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, outstanding beginning (USD per share) | $ 6.37 | |
Weighted average exercise price, granted (USD per share) | 0 | |
Weighted average exercise price, exercised (USD per share) | 5.82 | |
Weighted average exercise price, forfeited (USD per share) | 0 | |
Weighted average exercise price, expired (USD per share) | 0 | |
Weighted average exercise price, outstanding ending (USD per share) | $ 6.18 | |
Stock Option Additional Disclosures | ||
Number of options outstanding, full vested and expected to vest (in shares) | 30,000 | |
Number of options outstanding, vested (in shares) | 30,000 | |
Weighted average exercise price, full vested and expected to vest (USD per share) | $ 6.18 | |
Weighted average exercise price, vested (USD per share) | $ 6.18 | |
Aggregate intrinsic value, outstanding | $ 149 | $ 333 |
Aggregate intrinsic value, fully vested and expected to vest | 149 | |
Aggregate intrinsic value, vested | $ 149 | |
2010 Plan | ||
Number of Options Outstanding | ||
Number of options outstanding, beginning of period (in shares) | 210,000 | |
Number of options outstanding, granted (in shares) | 0 | |
Number of options outstanding, exercised (in shares) | (60,000) | |
Number of options outstanding, forfeited (in shares) | 0 | |
Number of options outstanding, expired (in shares) | 0 | |
Number of options outstanding, ending of period (in shares) | 150,000 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, outstanding beginning (USD per share) | $ 8 | |
Weighted average exercise price, granted (USD per share) | 0 | |
Weighted average exercise price, exercised (USD per share) | 8 | |
Weighted average exercise price, forfeited (USD per share) | 0 | |
Weighted average exercise price, expired (USD per share) | 0 | |
Weighted average exercise price, outstanding ending (USD per share) | $ 8 | |
Stock Option Additional Disclosures | ||
Number of options outstanding, full vested and expected to vest (in shares) | 150,000 | |
Number of options outstanding, vested (in shares) | 150,000 | |
Weighted average exercise price, full vested and expected to vest (USD per share) | $ 8 | |
Weighted average exercise price, vested (USD per share) | $ 8 | |
Aggregate intrinsic value, outstanding | $ 474 | $ 1,000 |
Aggregate intrinsic value, fully vested and expected to vest | 474 | |
Aggregate intrinsic value, vested | $ 474 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Information Related to Stock Option Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash received from option exercises | $ 608 | $ 89 | $ 380 |
2005 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value of options exercised | 113 | 231 | 370 |
Cash received from option exercises | 128 | 64 | 63 |
Tax benefit realized from option exercised | 2 | 27 | 17 |
2010 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value of options exercised | 224 | 86 | 729 |
Cash received from option exercises | 480 | 25 | 317 |
Tax benefit realized from option exercised | 0 | 0 | 157 |
2010 Plan | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax (provision) benefit realized from awards vested | 0 | (85) | 21 |
2021 Plan | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax (provision) benefit realized from awards vested | $ 12 | $ 0 | $ 0 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Changes in Non-vested Restricted Stock Awards (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
2010 Plan | ||
Shares Issued | ||
Shares issued, non-vested beginning of period (in shares) | 21,000 | |
Shares issued, awards granted (in shares) | 0 | |
Shares issued, awards vested (in shares) | 0 | |
Shares issued, awards forfeited (in shares) | (6,500) | |
Shares issued, non-vested end of period (in shares) | 14,500 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, non-vested beginning of period (USD per share) | $ 7.95 | |
Weighted average grant date fair value, awards granted (USD per share) | 0 | |
Weighted average grant date fair value, awards vested (USD per share) | 0 | |
Weighted average grant date fair value, awards forfeited (USD per share) | 6.37 | |
Weighted average grant date fair value, non-vested end of period (USD per share) | $ 8.66 | |
Aggregate intrinsic value, non-vested end of year | $ 162 | $ 268 |
2021 Plan | ||
Shares Issued | ||
Shares issued, non-vested beginning of period (in shares) | 176,641 | |
Shares issued, awards granted (in shares) | 218,057 | |
Shares issued, awards vested (in shares) | (59,302) | |
Shares issued, awards forfeited (in shares) | (18,030) | |
Shares issued, non-vested end of period (in shares) | 317,366 | |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value, non-vested beginning of period (USD per share) | $ 9.90 | |
Weighted average grant date fair value, awards granted (USD per share) | 12.59 | |
Weighted average grant date fair value, awards vested (USD per share) | 9.92 | |
Weighted average grant date fair value, awards forfeited (USD per share) | 12.40 | |
Weighted average grant date fair value, non-vested end of period (USD per share) | $ 11.60 | |
Aggregate intrinsic value, non-vested end of year | $ 3,542 | $ 2,254 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Employee minimum service period | 3 months | ||
Eligibility age of employees for plan | 18 years | ||
Employer contribution amount | $ 867 | $ 752 | $ 691 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | $ 209,809 | $ 150,444 |
Other investment securities: | ||
Mutual fund - CRA qualified | 3,300 | 3,700 |
Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 49,764 | 37,412 |
Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 160,045 | 113,032 |
Fair Value, Measurements, Recurring | ||
Other investment securities: | ||
Mutual fund - CRA qualified | 3,330 | 3,708 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 49,764 | 37,412 |
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 160,045 | 113,032 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Other investment securities: | ||
Mutual fund - CRA qualified | 3,330 | 3,708 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Other investment securities: | ||
Mutual fund - CRA qualified | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 49,764 | 37,412 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 160,045 | 113,032 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Other investment securities: | ||
Mutual fund - CRA qualified | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities, at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Fair Value Hierarchy and Fair Value of Assets that Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Impaired [Line Items] | ||
Impaired loans | $ 1,626,036 | $ 1,291,926 |
Quoted Prices in Active Markets (Level 1) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 1,626,036 | 1,291,926 |
Fair Value, Measurements, Nonrecurring | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 423 | 812 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets (Level 1) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans | $ 423 | $ 812 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Increase (Decrease) in Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Measurements, Nonrecurring | Loans Receivable | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans | $ 28 | $ 105 | $ (84) |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Schedule of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,626,036 | $ 1,291,926 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,626,036 | 1,291,926 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 423 | 812 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 423 | $ 812 |
Fair Value, Measurements, Nonrecurring | SBA loans—real estate | Income approach - income capitalization | Capitalization rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.115 | 0.120 |
Fair Value, Measurements, Nonrecurring | SBA loans—real estate | Minimum | Market approach | Market data comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.02 | |
Fair Value, Measurements, Nonrecurring | SBA loans—real estate | Maximum | Market approach | Market data comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.17 | |
Fair Value, Measurements, Nonrecurring | SBA loans—real estate | Weighted Average | Income approach - income capitalization | Capitalization rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.115 | 0.120 |
Fair Value, Measurements, Nonrecurring | SBA loans—real estate | Weighted Average | Market approach | Market data comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Measurements Inputs | 0.087 | |
Fair Value, Measurements, Nonrecurring | SBA loans—real estate | Significant Unobservable Inputs (Level 3) | Income approach - income capitalization | Capitalization rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 423 | $ 394 |
Fair Value, Measurements, Nonrecurring | SBA loans—real estate | Significant Unobservable Inputs (Level 3) | Market approach | Market data comparison | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 418 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Cash and cash equivalents | $ 82,972 | $ 115,459 |
Loans held for sale | 47,217 | 99,301 |
Loans receivable, net | 1,626,036 | 1,291,926 |
Accrued interest receivable, net | 7,180 | 4,579 |
Other investments: | ||
Time deposits placed | 95 | 95 |
Servicing assets | 16,845 | 15,505 |
Financial liabilities: | ||
Deposit | 1,880,508 | 1,534,066 |
Accrued interest payable | 2,771 | 558 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 82,972 | 115,459 |
Loans held for sale | 44,335 | 89,428 |
Loans receivable, net | 1,659,051 | 1,297,896 |
Accrued interest receivable, net | 7,180 | 4,579 |
Other investments: | ||
FHLB and PCBB stock | 8,673 | 7,196 |
Time deposits placed | 95 | 95 |
Servicing assets | 12,759 | 12,720 |
Financial liabilities: | ||
Deposit | 1,885,771 | 1,534,066 |
Accrued interest payable | 2,771 | 558 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 82,972 | 115,459 |
Loans held for sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable, net | 51 | 0 |
Other investments: | ||
Time deposits placed | 0 | 0 |
Servicing assets | 0 | 0 |
Financial liabilities: | ||
Deposit | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Loans held for sale | 47,217 | 99,301 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable, net | 716 | 348 |
Other investments: | ||
Time deposits placed | 95 | 95 |
Servicing assets | 0 | 0 |
Financial liabilities: | ||
Deposit | 1,880,508 | 1,534,066 |
Accrued interest payable | 2,771 | 558 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net | 1,626,036 | 1,291,926 |
Accrued interest receivable, net | 6,413 | 4,231 |
Other investments: | ||
Time deposits placed | 0 | 0 |
Servicing assets | 16,845 | 15,505 |
Financial liabilities: | ||
Deposit | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) | Dec. 31, 2022 |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Capital conservation buffer | 2.50% |
Regulatory Capital Matters - Sc
Regulatory Capital Matters - Schedule of Actual and Required Capital Amounts and Ratios, Exclusive of Capital Conservation Buffer (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), actual amount | $ 213,862 | $ 182,439 |
Tier 1 capital (to risk-weighted assets), actual amount | 194,358 | 165,944 |
Common equity Tier 1 capital (to risk-weighted assets), actual amount | 194,358 | 165,944 |
Tier 1 capital (to average assets), actual amount | $ 194,358 | $ 165,944 |
Total capital (to risk-weighted assets), actual ratio | 0.1306 | 0.1366 |
Tier 1 capital (to risk-weighted assets), actual ratio | 0.1187 | 0.1242 |
Common equity Tier 1 capital (to risk-weighted assets), actual ratio | 0.1187 | 0.1242 |
Tier 1 capital (to average assets), actual ratio | 0.0938 | 0.0958 |
Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), actual amount | $ 211,981 | $ 179,882 |
Tier 1 capital (to risk-weighted assets), actual amount | 192,477 | 163,387 |
Common equity Tier 1 capital (to risk-weighted assets), actual amount | 192,477 | 163,387 |
Tier 1 capital (to average assets), actual amount | $ 192,477 | $ 163,387 |
Total capital (to risk-weighted assets), actual ratio | 0.1294 | 0.1347 |
Tier 1 capital (to risk-weighted assets), actual ratio | 0.1175 | 0.1223 |
Common equity Tier 1 capital (to risk-weighted assets), actual ratio | 0.1175 | 0.1223 |
Tier 1 capital (to average assets), actual ratio | 0.0929 | 0.0944 |
Total capital (to risk-weighted assets), amount, required for capital adequacy purposes | $ 131,020 | $ 106,857 |
Tier 1 capital (to risk-weighted assets), amount, required for capital adequacy purposes | 98,265 | 80,143 |
Common equity Tier 1 capital (to risk-weighted assets), amount, required for capital adequacy purposes | 73,699 | 60,107 |
Tier 1 capital (to average assets), amount, required for capital adequacy purposes | $ 82,836 | $ 69,266 |
Total capital (to risk-weighted assets), ratio, required for capital adequacy purposes | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets), ratio, required for capital adequacy purposes | 0.0600 | 0.0600 |
Common equity Tier 1 capital (to risk-weighted assets), ratio, required for capital adequacy purposes | 0.0450 | 0.0450 |
Tier 1 capital (to average assets), ratio, required for capital adequacy purposes | 0.0400 | 0.0400 |
Total capital (to risk-weighted assets), amount, minimum to be considered "Well Capitalized" | $ 163,775 | $ 133,572 |
Tier 1 capital (to risk-weighted assets), amount, minimum to be considered "Well Capitalized" | 131,020 | 106,857 |
Common equity Tier 1 capital (to risk-weighted assets), amount, minimum to be considered "Well Capitalized" | 106,454 | 86,822 |
Tier 1 capital (to average assets), amount, minimum to be considered "Well Capitalized" | $ 103,545 | $ 86,582 |
Total capital (to risk-weighted assets), ratio, minimum to be considered "Well Capitalized" | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets), ratio, minimum to be considered "Well Capitalized" | 0.0800 | 0.0800 |
Common equity Tier 1 capital (to risk-weighted assets), ratio, minimum to be considered "Well Capitalized" | 0.0650 | 0.0650 |
Tier 1 capital (to average assets), ratio, minimum to be considered "Well Capitalized" | 0.0500 | 0.0500 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic | |||
Net income | $ 33,310 | $ 28,840 | $ 13,127 |
Distributed and undistributed earnings allocated to participating securities | (704) | (330) | (195) |
Net income allocated to common shares | $ 32,606 | $ 28,510 | $ 12,932 |
Weighted average common shares outstanding (in shares) | 15,171,240 | 15,087,686 | 15,196,351 |
Basic earnings per common share (in dollars per share) | $ 2.15 | $ 1.89 | $ 0.85 |
Diluted | |||
Net income allocated to common shares | $ 32,606 | $ 28,510 | $ 12,932 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 15,171,240 | 15,087,686 | 15,196,351 |
Add: Dilutive effects of assumed exercises of stock options | 60,178 | 67,661 | 27,537 |
Average shares and dilutive potential common shares (in shares) | 15,231,418 | 15,155,347 | 15,223,888 |
Diluted earnings per common share (in dollars per share) | $ 2.14 | $ 1.88 | $ 0.85 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive shares of common stock excluded from computation of earnings per share (in shares) | 0 | 0 | 212,000 |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Statements - Schedule of Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||
Cash and cash equivalents | $ 82,972 | $ 115,459 | ||
Deferred tax assets | 14,316 | 8,409 | ||
Other assets | 16,867 | 12,363 | ||
Total assets | 2,094,497 | 1,726,691 | ||
Liabilities and shareholders' equity | ||||
Other liabilities | 18,826 | 16,538 | ||
Shareholders’ equity | 176,916 | 165,222 | $ 143,366 | $ 140,576 |
Total liabilities and shareholders' equity | 2,094,497 | 1,726,691 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 1,559 | 2,431 | ||
Investment in bank subsidiary | 175,035 | 162,666 | ||
Deferred tax assets | 21 | 22 | ||
Other assets | 301 | 136 | ||
Total assets | 176,916 | 165,255 | ||
Liabilities and shareholders' equity | ||||
Other liabilities | 0 | 33 | ||
Shareholders’ equity | 176,916 | 165,222 | ||
Total liabilities and shareholders' equity | $ 176,916 | $ 165,255 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Statements - Schedule of Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expense | |||
Salaries and employee benefits | $ 27,189 | $ 21,253 | $ 20,041 |
Occupancy and equipment | 5,964 | 5,213 | 4,974 |
FDIC insurance and regulatory assessments | 813 | 583 | 449 |
Directors’ fees | 682 | 593 | 700 |
Other expense | 2,541 | 1,457 | 1,191 |
Total noninterest expense | 44,830 | 35,865 | 31,940 |
INCOME BEFORE INCOME TAX EXPENSE | 46,724 | 40,656 | 18,234 |
Income tax benefit | (13,414) | (11,816) | (5,107) |
NET INCOME | 33,310 | 28,840 | 13,127 |
Other comprehensive (loss) income, net of tax | (16,646) | (2,037) | 652 |
COMPREHENSIVE INCOME | 16,664 | 26,803 | 13,779 |
Parent Company | |||
Income | |||
Dividends from bank subsidiary | 6,675 | 5,123 | 13,921 |
Expense | |||
Salaries and employee benefits | 219 | 226 | 325 |
Occupancy and equipment | 49 | 65 | 74 |
FDIC insurance and regulatory assessments | 0 | 8 | 1 |
Directors’ fees | 214 | 135 | 527 |
Other expense | 395 | 169 | 120 |
Total noninterest expense | 877 | 603 | 1,047 |
INCOME BEFORE INCOME TAX EXPENSE | 5,798 | 4,520 | 12,874 |
Income tax benefit | 202 | 141 | 275 |
Equity in undistributed net income (loss) of bank subsidiary | 27,310 | 24,178 | (22) |
NET INCOME | 33,310 | 28,839 | 13,127 |
Other comprehensive (loss) income, net of tax | (16,646) | (2,037) | 652 |
COMPREHENSIVE INCOME | $ 16,664 | $ 26,802 | $ 13,779 |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Statements - Schedule of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 33,310 | $ 28,840 | $ 13,127 |
Adjustments: | |||
Change in other assets | 269 | 5,793 | 2,531 |
Change in other liabilities | (3,664) | 3,117 | 1,184 |
Net cash provided by (used in) operating activities | 83,734 | (28,278) | (4,851) |
Cash flows from investing activities | |||
Net cash from investing activities | (461,777) | (286,044) | (147,068) |
Cash flows from financing activities | |||
Repurchase of common stock | 0 | (28) | (8,104) |
Cash dividend paid on common stock | (6,676) | (5,132) | (4,262) |
Net cash provided by financing activities | 345,556 | 323,471 | 172,286 |
Net change in cash and cash equivalents | (32,487) | 9,149 | 20,367 |
Cash and cash equivalents at beginning of period | 115,459 | 106,310 | 85,943 |
Cash and cash equivalents at end of period | 82,972 | 115,459 | 106,310 |
Parent Company | |||
Cash flows from operating activities | |||
Net income | 33,310 | 28,839 | 13,127 |
Adjustments: | |||
Equity in undistributed net loss of bank subsidiary | (33,985) | (29,301) | (13,899) |
Change in other assets | (164) | (124) | 107 |
Change in other liabilities | (33) | (414) | 359 |
Net cash provided by (used in) operating activities | (872) | (1,000) | (306) |
Cash flows from investing activities | |||
Net cash from investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Repurchase of common stock | 0 | (28) | (8,104) |
Cash dividend paid on common stock | (6,674) | (5,132) | (4,262) |
Proceeds from subsidiaries | 6,675 | 5,123 | 13,921 |
Net cash provided by financing activities | 1 | (37) | 1,555 |
Net change in cash and cash equivalents | (871) | (1,037) | 1,249 |
Cash and cash equivalents at beginning of period | 2,431 | 3,468 | 2,219 |
Cash and cash equivalents at end of period | $ 1,560 | $ 2,431 | $ 3,468 |