XML 31 R13.htm IDEA: XBRL DOCUMENT
v3.25.1

Note 3 - Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3 - 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, 2024 and 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
December 31, 2024 |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale |  | (dollars in thousands)
Government agency securities |  | $ | 21,592 |  |  | $ | — |  |  | $ | (550 | ) |  | $ | 21,042 |
SBA agency securities |  |  | 27,231 |  |  |  | — |  |  |  | (467 | ) |  |  | 26,764 |
Mortgage-backed securities: residential |  |  | 62,351 |  |  |  | — |  |  |  | (6,674 | ) |  |  | 55,677 |
Collateralized mortgage obligations: residential |  |  | 117,936 |  |  |  | 178 |  |  |  | (12,638 | ) |  |  | 105,476 |
Collateralized mortgage obligations: commercial |  |  | 94,284 |  |  |  | 175 |  |  |  | (2,803 | ) |  |  | 91,656 |
Commercial paper |  |  | 78,687 |  |  |  | 1 |  |  |  | (3 | ) |  |  | 78,685 |
Corporate debt securities |  |  | 34,733 |  |  |  | 43 |  |  |  | (2,961 | ) |  |  | 31,815 |
Municipal tax-exempt securities |  |  | 12,602 |  |  |  | — |  |  |  | (3,527 | ) |  |  | 9,075 |
Total |  | $ | 449,416 |  |  | $ | 397 |  |  | $ | (29,623 | ) |  | $ | 420,190 |
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal taxable securities |  | $ | 500 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 501 |
Municipal tax-exempt securities |  |  | 4,691 |  |  |  | — |  |  |  | (244 | ) |  |  | 4,447 |
Total |  | $ | 5,191 |  |  | $ | 1 |  |  | $ | (244 | ) |  | $ | 4,948 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
December 31, 2023 |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale |  | (dollars in thousands)
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 tax-exempt 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 tax-exempt securities |  |  | 4,708 |  |  |  | — |  |  |  | (115 | ) |  |  | 4,593 |
Total |  | $ | 5,209 |  |  | $ | 3 |  |  | $ | (115 | ) |  | $ | 5,097 |
There were no sales of investment securities during the years ended December 31, 2024, 2023, and 2022. At December 31, 2024, we pledged investment securities with a fair value of $23.4 million for certificates of deposit from the state of California. One security with a fair value of $48,000 and $61,000 was pledged to secure a local agency deposit at December 31, 2024 and 2023. Accrued interest receivable for investment securities at December 31, 2024 and 2023 totaled $1.6 million and $962,000. The amortized cost and fair value of the investment securities portfolio as of December 31, 2024 and 2023 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 |  |  |  |  |
|  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |
December 31, 2024 |  | (dollars in thousands) |
Government agency securities |  | $ | 90 |  |  | $ | 88 |  |  | $ | 11,644 |  |  | $ | 11,304 |  |  | $ | 9,858 |  |  | $ | 9,650 |  |  | $ | — |  |  | $ | — |  |  | $ | 21,592 |  |  | $ | 21,042 |
SBA agency securities |  |  | — |  |  |  | — |  |  |  | 5,934 |  |  |  | 5,721 |  |  |  | 21,297 |  |  |  | 21,043 |  |  |  | — |  |  |  | — |  |  |  | 27,231 |  |  |  | 26,764 |
Mortgage-backed securities: residential |  |  | — |  |  |  | — |  |  |  | 8,892 |  |  |  | 8,099 |  |  |  | 53,459 |  |  |  | 47,578 |  |  |  | — |  |  |  | — |  |  |  | 62,351 |  |  |  | 55,677 |
Collateralized mortgage obligations: residential |  |  | 5,126 |  |  |  | 5,235 |  |  |  | 55,015 |  |  |  | 52,867 |  |  |  | 57,795 |  |  |  | 47,374 |  |  |  | — |  |  |  | — |  |  |  | 117,936 |  |  |  | 105,476 |
Collateralized mortgage obligations: commercial |  |  | 705 |  |  |  | 704 |  |  |  | 38,811 |  |  |  | 38,527 |  |  |  | 54,768 |  |  |  | 52,425 |  |  |  | — |  |  |  | — |  |  |  | 94,284 |  |  |  | 91,656 |
Commercial paper |  |  | 78,687 |  |  |  | 78,685 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 78,687 |  |  |  | 78,685 |
Corporate debt securities |  |  | 2,000 |  |  |  | 1,989 |  |  |  | 11,886 |  |  |  | 11,706 |  |  |  | 18,233 |  |  |  | 16,250 |  |  |  | 2,614 |  |  |  | 1,870 |  |  |  | 34,733 |  |  |  | 31,815 |
Municipal tax-exempt securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 12,602 |  |  |  | 9,075 |  |  |  | 12,602 |  |  |  | 9,075 |
Total available for sale |  | $ | 86,608 |  |  | $ | 86,701 |  |  | $ | 132,182 |  |  | $ | 128,224 |  |  | $ | 215,410 |  |  | $ | 194,320 |  |  | $ | 15,216 |  |  | $ | 10,945 |  |  | $ | 449,416 |  |  | $ | 420,190 |
Municipal taxable securities |  | $ | 500 |  |  | $ | 501 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 500 |  |  | $ | 501 |
Municipal tax-exempt securities |  |  | — |  |  |  | — |  |  |  | 360 |  |  |  | 347 |  |  |  | 2,985 |  |  |  | 2,795 |  |  |  | 1,346 |  |  |  | 1,305 |  |  |  | 4,691 |  |  |  | 4,447 |
Total held to maturity |  | $ | 500 |  |  | $ | 501 |  |  | $ | 360 |  |  | $ | 347 |  |  | $ | 2,985 |  |  | $ | 2,795 |  |  | $ | 1,346 |  |  | $ | 1,305 |  |  | $ | 5,191 |  |  | $ | 4,948 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | $ | — |  |  | $ | — |  |  | $ | 8,705 |  |  | $ | 8,161 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8,705 |  |  | $ | 8,161 |
SBA agency 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 tax-exempt 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 tax-exempt 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 |
The securities that were in an unrealized loss position at December 31, 2024, and December 31, 2023, 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, 2024 and 2023, there was no ACL on the HTM securities portfolio. We concluded that the unrealized losses were primarily attributed to yield curve movement, together with widened liquidity spreads and credit spreads. All SBA agency securities, mortgage-backed securities, and collateralized mortgage obligations are issued by government or government sponsored entities and have the support of the U.S. federal government. The issuers have not, to our knowledge, established any cause for default on these securities. We expect to recover the amortized cost basis of our securities and have no present intent to sell and will not be required to sell securities that have declined below their cost before their anticipated recovery. As of December 31, 2024, all of our HTM securities were rated “AA-” or above. Accordingly, no ACL was recorded as of December 31, 2024 and December 31, 2023, against HTM or AFS securities, and there was no provision for credit losses recognized for the year ended December 31, 2024 and 2023. 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, 2024, and December 31, 2023:
|  | Less than Twelve Months |  |  | Twelve Months or More |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | # of Issuances |  |  | Fair Value |  |  | Unrealized Losses |  |  | # of Issuances |  |  | Fair Value |  |  | Unrealized Losses |  |  | # of Issuances |
December 31, 2024 |  | (dollars in thousands) |
Government agency securities |  | $ | 14,620 |  |  | $ | (219 | ) |  |  | 3 |  |  | $ | 6,422 |  |  | $ | (331 | ) |  |  | 4 |  |  | $ | 21,042 |  |  | $ | (550 | ) |  |  | 7 |
SBA agency securities |  |  | 24,971 |  |  |  | (273 | ) |  |  | 7 |  |  |  | 1,793 |  |  |  | (194 | ) |  |  | 4 |  |  |  | 26,764 |  |  |  | (467 | ) |  |  | 11 |
Mortgage-backed securities: residential |  |  | 25,479 |  |  |  | (578 | ) |  |  | 5 |  |  |  | 30,198 |  |  |  | (6,096 | ) |  |  | 15 |  |  |  | 55,677 |  |  |  | (6,674 | ) |  |  | 20 |
Collateralized mortgage obligations: residential |  |  | 36,166 |  |  |  | (649 | ) |  |  | 8 |  |  |  | 55,255 |  |  |  | (11,989 | ) |  |  | 24 |  |  |  | 91,421 |  |  |  | (12,638 | ) |  |  | 32 |
Collateralized mortgage obligations: commercial |  |  | 35,753 |  |  |  | (367 | ) |  |  | 7 |  |  |  | 30,114 |  |  |  | (2,436 | ) |  |  | 18 |  |  |  | 65,867 |  |  |  | (2,803 | ) |  |  | 25 |
Commercial paper |  |  | 48,874 |  |  |  | (3 | ) |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 48,874 |  |  |  | (3 | ) |  |  | 3 |
Corporate debt securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 26,035 |  |  |  | (2,961 | ) |  |  | 30 |  |  |  | 26,035 |  |  |  | (2,961 | ) |  |  | 30 |
Municipal tax-exempt securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,075 |  |  |  | (3,527 | ) |  |  | 11 |  |  |  | 9,075 |  |  |  | (3,527 | ) |  |  | 11 |
Total available for sale |  | $ | 185,863 |  |  | $ | (2,089 | ) |  |  | 33 |  |  | $ | 158,892 |  |  | $ | (27,534 | ) |  |  | 106 |  |  | $ | 344,755 |  |  | $ | (29,623 | ) |  |  | 139 |
Municipal tax-exempt securities |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | 4,447 |  |  | $ | (244 | ) |  |  | 10 |  |  | $ | 4,447 |  |  | $ | (244 | ) |  |  | 10 |
Total held to maturity |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | 4,447 |  |  | $ | (244 | ) |  |  | 10 |  |  | $ | 4,447 |  |  | $ | (244 | ) |  |  | 10 |
|  | Less than Twelve Months |  |  | Twelve Months or More |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | No. of Issuances |  |  | Fair Value |  |  | Unrealized Losses |  |  | No. of Issuances |  |  | Fair Value |  |  | Unrealized Losses |  |  | No. of Issuances |
December 31, 2023 |  | (dollars in thousands) |
Government agency securities |  | $ | 4,238 |  |  | $ | (72 | ) |  |  | 1 |  |  | $ | 3,923 |  |  | $ | (472 | ) |  |  | 3 |  |  | $ | 8,161 |  |  | $ | (544 | ) |  |  | 4 |
SBA agency securities |  |  | 5,102 |  |  |  | (18 | ) |  |  | 1 |  |  |  | 2,094 |  |  |  | (198 | ) |  |  | 4 |  |  |  | 7,196 |  |  |  | (216 | ) |  |  | 5 |
Mortgage-backed securities: residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 34,652 |  |  |  | (5,855 | ) |  |  | 15 |  |  |  | 34,652 |  |  |  | (5,855 | ) |  |  | 15 |
Collateralized mortgage obligations: residential |  |  | 2,597 |  |  |  | (37 | ) |  |  | 1 |  |  |  | 60,275 |  |  |  | (12,161 | ) |  |  | 23 |  |  |  | 62,872 |  |  |  | (12,198 | ) |  |  | 24 |
Collateralized mortgage obligations: commercial |  |  | 18,463 |  |  |  | (70 | ) |  |  | 5 |  |  |  | 35,077 |  |  |  | (2,594 | ) |  |  | 19 |  |  |  | 53,540 |  |  |  | (2,664 | ) |  |  | 24 |
Commercial paper |  |  | 53,211 |  |  |  | (16 | ) |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 53,211 |  |  |  | (16 | ) |  |  | 6 |
Corporate debt securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 30,691 |  |  |  | (4,109 | ) |  |  | 32 |  |  |  | 30,691 |  |  |  | (4,109 | ) |  |  | 32 |
Municipal tax-exempt securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,509 |  |  |  | (3,127 | ) |  |  | 11 |  |  |  | 9,509 |  |  |  | (3,127 | ) |  |  | 11 |
Total available for sale |  | $ | 83,611 |  |  | $ | (213 | ) |  |  | 14 |  |  | $ | 176,221 |  |  | $ | (28,516 | ) |  |  | 107 |  |  | $ | 259,832 |  |  | $ | (28,729 | ) |  |  | 121 |
Municipal tax-exempt securities |  | $ | 1,397 |  |  | $ | (19 | ) |  |  | 3 |  |  | $ | 3,196 |  |  | $ | (96 | ) |  |  | 7 |  |  | $ | 4,593 |  |  | $ | (115 | ) |  |  | 10 |
Total held to maturity |  | $ | 1,397 |  |  | $ | (19 | ) |  |  | 3 |  |  | $ | 3,196 |  |  | $ | (96 | ) |  |  | 7 |  |  | $ | 4,593 |  |  | $ | (115 | ) |  |  | 10 |

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/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: 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 5: 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 6: 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 7: 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