XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Note 4 - Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2023
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 4 - INVESTMENT SECURITIES The following table summarizes the amortized cost and fair value of available for sale (“AFS”) securities and held to maturity (“HTM”) securities at December 31, 2023 and 2022, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
December 31, 2023 |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | 8,705 |  |  | $ | — |  |  | $ | (544 | ) |  | $ | 8,161 |
SBA agency securities |  |  | 13,289 |  |  |  | 144 |  |  |  | (216 | ) |  |  | 13,217 |
Mortgage-backed securities: residential |  |  | 40,507 |  |  |  | — |  |  |  | (5,855 | ) |  |  | 34,652 |
Collateralized mortgage obligations: residential |  |  | 94,071 |  |  |  | 454 |  |  |  | (12,198 | ) |  |  | 82,327 |
Collateralized mortgage obligations: commercial |  |  | 69,941 |  |  |  | 22 |  |  |  | (2,664 | ) |  |  | 67,299 |
Commercial paper |  |  | 73,121 |  |  |  | — |  |  |  | (16 | ) |  |  | 73,105 |
Corporate debt securities |  |  | 34,800 |  |  |  | — |  |  |  | (4,109 | ) |  |  | 30,691 |
Municipal securities |  |  | 12,636 |  |  |  | — |  |  |  | (3,127 | ) |  |  | 9,509 |
Total |  | $ | 347,070 |  |  | $ | 620 |  |  | $ | (28,729 | ) |  | $ | 318,961 |
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal taxable securities |  | $ | 501 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 504 |
Municipal securities |  |  | 4,708 |  |  |  | — |  |  |  | (115 | ) |  |  | 4,593 |
Total |  | $ | 5,209 |  |  | $ | 3 |  |  | $ | (115 | ) |  | $ | 5,097 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
December 31, 2022 |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | 5,012 |  |  | $ | — |  |  | $ | (517 | ) |  | $ | 4,495 |
SBA agency securities |  |  | 2,634 |  |  |  | — |  |  |  | (223 | ) |  |  | 2,411 |
Mortgage-backed securities: residential |  |  | 44,809 |  |  |  | — |  |  |  | (6,752 | ) |  |  | 38,057 |
Mortgage-backed securities: commercial |  |  | 4,887 |  |  |  | — |  |  |  | (16 | ) |  |  | 4,871 |
Collateralized mortgage obligations: residential |  |  | 82,759 |  |  |  | — |  |  |  | (12,856 | ) |  |  | 69,903 |
Collateralized mortgage obligations: commercial |  |  | 44,591 |  |  |  | — |  |  |  | (2,901 | ) |  |  | 41,690 |
Commercial paper |  |  | 49,551 |  |  |  | 2 |  |  |  | (16 | ) |  |  | 49,537 |
Corporate debt securities |  |  | 41,176 |  |  |  | 1 |  |  |  | (4,165 | ) |  |  | 37,012 |
Municipal securities |  |  | 12,669 |  |  |  | — |  |  |  | (3,815 | ) |  |  | 8,854 |
Total |  | $ | 288,088 |  |  | $ | 3 |  |  | $ | (31,261 | ) |  | $ | 256,830 |
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal taxable securities |  | $ | 1,003 |  |  | $ | 7 |  |  | $ | (3 | ) |  | $ | 1,007 |
Municipal securities |  |  | 4,726 |  |  |  | — |  |  |  | (170 | ) |  |  | 4,556 |
Total |  | $ | 5,729 |  |  | $ | 7 |  |  | $ | (173 | ) |  | $ | 5,563 |
There was no sale of investment securities during the years ended December 31, 2023, 2022, and 2021. At December 31, 2023, we pledged investment securities with a fair value of $95.2 million for certificates of deposit from the state of California. One security with a fair value of $61,000 and $76,000 was pledged to secure a local agency deposit at December 31, 2023 and 2022. Accrued interest receivable for investment debt securities at December 31, 2023 and 2022 totaled $962,000 and $810,000. The amortized cost and fair value of the investment securities portfolio as of December 31, 2023 and 2022 are shown by expected maturity below. Mortgage-backed securities are classified in accordance with their estimated average life. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Less than One Year |  |  | More than One Year to Five Years |  |  | More than Five Years to Ten Years |  |  | More than Ten Years |  |  | Total |
|  | Amortized |  |  | Amortized |  |  |  |  | Amortized |  |  |  |  | Amortized |  |  |  |  | Amortized |  |  |
(dollars in thousands) |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | — |  |  | $ | — |  |  | $ | 8,705 |  |  | $ | 8,161 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8,705 |  |  | $ | 8,161 |
SBA securities |  |  | — |  |  |  | — |  |  |  | 2,292 |  |  |  | 2,095 |  |  |  | 10,997 |  |  |  | 11,122 |  |  |  | — |  |  |  | — |  |  |  | 13,289 |  |  |  | 13,217 |
Mortgage-backed securities: residential |  |  | — |  |  |  | — |  |  |  | 11,023 |  |  |  | 9,986 |  |  |  | 19,762 |  |  |  | 16,965 |  |  |  | 9,722 |  |  |  | 7,701 |  |  |  | 40,507 |  |  |  | 34,652 |
Collateralized mortgage obligations: residential |  |  | 18 |  |  |  | 17 |  |  |  | 36,876 |  |  |  | 35,758 |  |  |  | 57,177 |  |  |  | 46,552 |  |  |  | — |  |  |  | — |  |  |  | 94,071 |  |  |  | 82,327 |
Collateralized mortgage obligations: commercial |  |  | 3,014 |  |  |  | 3,018 |  |  |  | 20,296 |  |  |  | 18,481 |  |  |  | 46,631 |  |  |  | 45,800 |  |  |  | — |  |  |  | — |  |  |  | 69,941 |  |  |  | 67,299 |
Commercial paper |  |  | 73,121 |  |  |  | 73,105 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 73,121 |  |  |  | 73,105 |
Corporate debt securities |  |  | — |  |  |  | — |  |  |  | 12,912 |  |  |  | 12,491 |  |  |  | 19,249 |  |  |  | 16,232 |  |  |  | 2,639 |  |  |  | 1,968 |  |  |  | 34,800 |  |  |  | 30,691 |
Municipal securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 12,636 |  |  |  | 9,509 |  |  |  | 12,636 |  |  |  | 9,509 |
Total available for sale |  | $ | 76,153 |  |  | $ | 76,140 |  |  | $ | 92,104 |  |  | $ | 86,972 |  |  | $ | 153,816 |  |  | $ | 136,671 |  |  | $ | 24,997 |  |  | $ | 19,178 |  |  | $ | 347,070 |  |  | $ | 318,961 |
Municipal taxable securities |  | $ | — |  |  | $ | — |  |  | $ | 501 |  |  | $ | 504 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 501 |  |  | $ | 504 |
Municipal securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,952 |  |  |  | 2,873 |  |  |  | 1,756 |  |  |  | 1,720 |  |  |  | 4,708 |  |  |  | 4,593 |
Total held to maturity |  | $ | — |  |  | $ | — |  |  | $ | 501 |  |  | $ | 504 |  |  | $ | 2,952 |  |  | $ | 2,873 |  |  | $ | 1,756 |  |  | $ | 1,720 |  |  | $ | 5,209 |  |  | $ | 5,097 |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | — |  |  | $ | — |  |  | $ | 5,012 |  |  | $ | 4,495 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,012 |  |  | $ | 4,495 |
SBA securities |  |  | — |  |  |  | — |  |  |  | 2,634 |  |  |  | 2,411 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,634 |  |  |  | 2,411 |
Mortgage-backed securities: residential |  |  | — |  |  |  | — |  |  |  | 13,013 |  |  |  | 11,598 |  |  |  | 29,114 |  |  |  | 24,361 |  |  |  | 2,682 |  |  |  | 2,098 |  |  |  | 44,809 |  |  |  | 38,057 |
Mortgage-backed securities: commercial |  |  | — |  |  |  | — |  |  |  | 4,887 |  |  |  | 4,871 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,887 |  |  |  | 4,871 |
Collateralized mortgage obligations: residential |  |  | — |  |  |  | — |  |  |  | 20,687 |  |  |  | 19,646 |  |  |  | 62,072 |  |  |  | 50,257 |  |  |  | — |  |  |  | — |  |  |  | 82,759 |  |  |  | 69,903 |
Collateralized mortgage obligations: commercial |  |  | — |  |  |  | — |  |  |  | 16,382 |  |  |  | 14,644 |  |  |  | 28,209 |  |  |  | 27,046 |  |  |  | — |  |  |  | — |  |  |  | 44,591 |  |  |  | 41,690 |
Commercial paper |  |  | 49,551 |  |  |  | 49,537 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 49,551 |  |  |  | 49,537 |
Corporate debt securities |  |  | 3,705 |  |  |  | 3,706 |  |  |  | 11,355 |  |  |  | 10,806 |  |  |  | 23,454 |  |  |  | 20,662 |  |  |  | 2,662 |  |  |  | 1,838 |  |  |  | 41,176 |  |  |  | 37,012 |
Municipal securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 12,669 |  |  |  | 8,854 |  |  |  | 12,669 |  |  |  | 8,854 |
Total available for sale |  | $ | 53,256 |  |  | $ | 53,243 |  |  | $ | 73,970 |  |  | $ | 68,471 |  |  | $ | 142,849 |  |  | $ | 122,326 |  |  | $ | 18,013 |  |  | $ | 12,790 |  |  | $ | 288,088 |  |  | $ | 256,830 |
Municipal taxable securities |  | $ | 501 |  |  | $ | 498 |  |  | $ | 502 |  |  | $ | 509 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,003 |  |  | $ | 1,007 |
Municipal securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,739 |  |  |  | 1,692 |  |  |  | 2,987 |  |  |  | 2,864 |  |  |  | 4,726 |  |  |  | 4,556 |
Total held to maturity |  | $ | 501 |  |  | $ | 498 |  |  | $ | 502 |  |  | $ | 509 |  |  | $ | 1,739 |  |  | $ | 1,692 |  |  | $ | 2,987 |  |  | $ | 2,864 |  |  | $ | 5,729 |  |  | $ | 5,563 |
The securities that were in an unrealized loss position at December 31, 2023, and December 31, 2022, were evaluated to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 2 Summary of Significant Accounting Policies - Allowance for Credit Losses on Available-for-Sale Securities and Held-to-Maturity Securities. At December 31, 2023 and 2022, there was no reserve of credit losses on the HTM securities portfolio. Based on the Company’s review of its debt securities in an unrealized loss position, the Company concluded the unrealized losses were due to non-credit factors primarily attributed to yield curve movement, together with widened liquidity spreads. The issuers have not, to the Company's knowledge, established any cause for default on these securities. All the securities that the Company owned were investment grade at December 31, 2023. At December 31, 2023, unrealized losses of $28.7 million comprised of $18.1 million, or 62.8%, residential mortgage-backed securities and collateralized mortgage obligations, $4.1 million, or 14.3%, corporate debt securities, $3.1 million, or 10.9%, municipal securities, $2.7 million, or 9.3%, commercial collateralized mortgage obligations, and $760,000, or 2.6%, government agency securities and SBA securities. The Company expects to recover the amortized cost basis of its securities and has no present intent to sell and will not be required to sell securities that have declined below their cost before their anticipated recovery based on the Company’s current financial condition. The following tables show the related fair value and the gross unrealized losses of the Company's investment securities, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023, and December 31, 2022:
|  | Less than Twelve Months |  |  | Twelve Months or More |  |  | Total |
(dollars in thousands) |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | 4,238 |  |  | $ | (72 | ) |  | $ | 3,923 |  |  | $ | (472 | ) |  | $ | 8,161 |  |  | $ | (544 | )
SBA securities |  |  | 5,102 |  |  |  | (18 | ) |  |  | 2,094 |  |  |  | (198 | ) |  |  | 7,196 |  |  |  | (216 | )
Mortgage-backed securities: residential |  |  | — |  |  |  | — |  |  |  | 34,652 |  |  |  | (5,855 | ) |  |  | 34,652 |  |  |  | (5,855 | )
Collateralized mortgage obligations: residential |  |  | 2,597 |  |  |  | (37 | ) |  |  | 60,275 |  |  |  | (12,161 | ) |  |  | 62,872 |  |  |  | (12,198 | )
Collateralized mortgage obligations: commercial |  |  | 18,463 |  |  |  | (70 | ) |  |  | 35,077 |  |  |  | (2,594 | ) |  |  | 53,540 |  |  |  | (2,664 | )
Commercial paper (1) |  |  | 53,211 |  |  |  | (16 | ) |  |  | — |  |  |  | — |  |  |  | 53,211 |  |  |  | (16 | )
Corporate debt securities |  |  | — |  |  |  | — |  |  |  | 30,691 |  |  |  | (4,109 | ) |  |  | 30,691 |  |  |  | (4,109 | )
Municipal securities |  |  | — |  |  |  | — |  |  |  | 9,509 |  |  |  | (3,127 | ) |  |  | 9,509 |  |  |  | (3,127 | )
Total available for sale |  | $ | 83,611 |  |  | $ | (213 | ) |  | $ | 176,221 |  |  | $ | (28,516 | ) |  | $ | 259,832 |  |  | $ | (28,729 | )
Municipal securities |  | $ | 1,397 |  |  | $ | (19 | ) |  | $ | 3,196 |  |  | $ | (96 | ) |  | $ | 4,593 |  |  | $ | (115 | )
Total held to maturity |  | $ | 1,397 |  |  | $ | (19 | ) |  | $ | 3,196 |  |  | $ | (96 | ) |  | $ | 4,593 |  |  | $ | (115 | )
(1) | The Company held $19.9 million of commercial paper where the recorded value and fair value are equal as of December 31, 2023.
|  | Less than Twelve Months |  |  | Twelve Months or More |  |  | Total |
(dollars in thousands) |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | 354 |  |  | $ | (24 | ) |  | $ | 4,141 |  |  | $ | (493 | ) |  | $ | 4,495 |  |  | $ | (517 | )
SBA securities |  |  | 2,411 |  |  |  | (223 | ) |  |  | — |  |  |  | — |  |  |  | 2,411 |  |  |  | (223 | )
Mortgage-backed securities: residential |  |  | 5,535 |  |  |  | (362 | ) |  |  | 32,522 |  |  |  | (6,390 | ) |  |  | 38,057 |  |  |  | (6,752 | )
Mortgage-backed securities: commercial |  |  | 4,871 |  |  |  | (16 | ) |  |  | — |  |  |  | — |  |  |  | 4,871 |  |  |  | (16 | )
Collateralized mortgage obligations: residential |  |  | 27,050 |  |  |  | (1,842 | ) |  |  | 39,815 |  |  |  | (11,014 | ) |  |  | 66,865 |  |  |  | (12,856 | )
Collateralized mortgage obligations: commercial |  |  | 18,741 |  |  |  | (790 | ) |  |  | 22,949 |  |  |  | (2,111 | ) |  |  | 41,690 |  |  |  | (2,901 | )
Commercial paper (1) |  |  | 39,624 |  |  |  | (16 | ) |  |  | — |  |  |  | — |  |  |  | 39,624 |  |  |  | (16 | )
Corporate debt securities |  |  | 22,977 |  |  |  | (1,843 | ) |  |  | 10,330 |  |  |  | (2,322 | ) |  |  | 33,307 |  |  |  | (4,165 | )
Municipal securities |  |  | — |  |  |  | — |  |  |  | 8,854 |  |  |  | (3,815 | ) |  |  | 8,854 |  |  |  | (3,815 | )
Total available for sale |  | $ | 121,563 |  |  | $ | (5,116 | ) |  | $ | 118,611 |  |  | $ | (26,145 | ) |  | $ | 240,174 |  |  | $ | (31,261 | )
Municipal taxable securities |  | $ | 498 |  |  | $ | (3 | ) |  | $ | — |  |  | $ | — |  |  | $ | 498 |  |  | $ | (3 | )
Municipal securities |  |  | 4,556 |  |  |  | (170 | ) |  |  | — |  |  |  | — |  |  |  | 4,556 |  |  |  | (170 | )
Total held to maturity |  | $ | 5,054 |  |  | $ | (173 | ) |  | $ | — |  |  | $ | — |  |  | $ | 5,054 |  |  | $ | (173 | )
(1) | The Company held $9.9 million of commercial paper where the recorded value and fair value are equal as of December 31, 2022.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration