Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis.


(in thousands) Description of Financial Instruments	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measurement Categories: Changes in Fair Value Recorded In1
March 31, 2024
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	340,908	$	—	$	340,908	$	—	OCI
SBA-backed securities	$	17,148	$	—	$	17,148	$	—	OCI
Debentures of government sponsored agencies	$	66,688	$	—	$	66,688	$	—	OCI
U.S. Treasury securities	$	10,534	$	10,534	$	—	$	—	OCI

Obligations of state and political subdivisions	$	90,343	$	—	$	90,343	$	—	OCI
Corporate bonds	$	10,744	$	—	$	10,744	$	—	OCI

Derivative financial assets (interest rate contracts)	$	400	$	—	$	400	$	—	NI
Derivative financial liabilities (interest rate contracts)	$	142	$	—	$	142	$	—	NI
December 31, 2023
Securities available-for-sale:
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies	$	352,472	$	—	$	352,472	$	—	OCI
SBA-backed securities	$	19,471	$	—	$	19,471	$	—	OCI
Debentures of government sponsored agencies	$	66,862	$	—	$	66,862	$	—	OCI
U.S. Treasury securities	$	10,623	$	10,623	$	—	$	—	OCI

Obligations of state and political subdivisions	$	91,882	$	—	$	91,882	$	—	OCI
Corporate bonds	$	10,718	$	—	$	10,718	$	—	OCI

Derivative financial assets (interest rate contracts)	$	287	$	—	$	287	$	—	NI
Derivative financial liabilities (interest rate contracts)	$	1,361	$	—	$	1,361	$	—	NI

1 Other comprehensive income ("OCI") or net income ("NI").

Schedule of Fair Value of Financial Instruments

The table below is a summary of fair value estimates for financial instruments as of March 31, 2024 and December 31, 2023, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI"), lease obligations and non-maturity deposit liabilities. Additionally, we held shares of Federal Home Loan Bank ("FHLB") of San Francisco stock at cost as of March 31, 2024 and December 31, 2023. There were no impairments or changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer as of March 31, 2024 or December 31, 2023. See further discussion on values within Note 4, Investment Securities.


	March 31, 2024					December 31, 2023
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets (recorded at amortized cost)
Cash and cash equivalents	$	36,308	$	36,308	Level 1	$	30,453	$	30,453	Level 1
Investment securities held-to-maturity	915,068		795,909		Level 2	925,198		814,830		Level 2
Loans, net of allowance for credit losses	2,029,462		1,913,418		Level 3	2,048,548		1,939,702		Level 3
Interest receivable	11,678		11,678		Level 2	12,752		12,752		Level 2
Financial liabilities (recorded at amortized cost)
Time deposits	267,536		268,758		Level 2	251,317		252,824		Level 2

FRBSF short-term borrowings under the BTFP	—		—		Level 2	26,000		25,998		Level 2


Interest payable	3,130		3,130		Level 2	2,752		2,752		Level 2