v3.24.1.u1

Investment Securities | 3 Months Ended
--- | ---
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The following table presents the amortized cost and fair value of the securities available-for-sale as of the dates indicated:
($ in thousands) |  | Amortized Cost |  | Gross Unrealized Gain |  | Gross Unrealized Loss |  | Fair Value
March 31, 2024 |  |  |  |  |  |  |  |
Securities available-for-sale: |  |  |  |  |  |  |  |
U.S. government agency and U.S. government sponsored enterprise securities: |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 111,860 |  |  | $ | 87 |  |  | $ | (11,764) |  |  | $ | 100,183 |
Residential collateralized mortgage obligations |  | 25,002 |  |  | 54 |  |  | (1,628) |  |  | 23,428 |
SBA loan pool securities |  | 7,480 |  |  | 3 |  |  | (354) |  |  | 7,129 |
Municipal bonds |  | 3,307 |  |  | 3 |  |  | (30) |  |  | 3,280 |
Corporate bonds |  | 5,000 |  |  | — |  |  | (850) |  |  | 4,150 |
Total securities available-for-sale |  | $ | 152,649 |  |  | $ | 147 |  |  | $ | (14,626) |  |  | $ | 138,170 |
December 31, 2023 |  |  |  |  |  |  |  |
Securities available-for-sale: |  |  |  |  |  |  |  |
U.S. government agency and U.S. government sponsored enterprise securities: |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 114,485 |  |  | $ | 199 |  |  | $ | (10,593) |  |  | $ | 104,091 |
Residential collateralized mortgage obligations |  | 25,611 |  |  | 63 |  |  | (1,501) |  |  | 24,173 |
SBA loan pool securities |  | 7,773 |  |  | 3 |  |  | (326) |  |  | 7,450 |
Municipal bonds |  | 3,306 |  |  | 25 |  |  | (2) |  |  | 3,329 |
Corporate bonds |  | 5,000 |  |  | — |  |  | (720) |  |  | 4,280 |
Total securities available-for-sale |  | $ | 156,175 |  |  | $ | 290 |  |  | $ | (13,142) |  |  | $ | 143,323 |
As of March 31, 2024 and December 31, 2023, pledged securities were $74.5 million and $70.9 million, respectively. These securities were pledged for the State Deposit from the California State Treasurer. The Company elected to exclude accrued interest receivable from the amortized cost of its securities available-for-sale. Accrued interest receivable on securities available-for-sale totaled $452 thousand and $513 thousand at March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, there were no holdings of securities available-for-sale of any one issuer, other than the U.S. government agency and U.S. government sponsored enterprise, in an amount greater than 10% of shareholder’s equity. The following table presents the amortized cost and fair value of the securities available-for-sale by contractual maturity as of the date indicated. Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
|  | March 31, 2024
($ in thousands) |  | Amortized Cost |  | Fair Value
Within one year |  | $ | 862 |  |  | $ | 861 |
One to five years |  | 82 |  |  | 80 |
Five to ten years |  | 5,725 |  |  | 4,871 |
Greater than ten years |  | 1,638 |  |  | 1,618 |
Residential mortgage-backed securities, residential collateralized mortgage obligations and SBA loan pool securities |  | 144,342 |  |  | 130,740 |
Total |  | $ | 152,649 |  |  | $ | 138,170 |
The Company had no proceeds from sales and calls of securities available-for-sale for the three months ended March 31, 2024 or 2023. The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position for which an allowance for credit losses (“ACL”) was not recorded as of the dates indicated:
|  | Length of Time that Individual Securities Have Been In a Continuous Unrealized Loss Position
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
($ in thousands) |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency and U.S. government sponsored enterprise securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 6,936 |  |  | $ | (88) |  |  | 10 |  |  | $ | 82,428 |  |  | $ | (11,676) |  |  | 112 |  |  | $ | 89,364 |  |  | $ | (11,764) |  |  | 122 |
Residential collateralized mortgage obligations |  | 5,663 |  |  | (41) |  |  | 4 |  |  | 13,283 |  |  | (1,587) |  |  | 35 |  |  | 18,946 |  |  | (1,628) |  |  | 39 |
SBA loan pool securities |  | — |  |  | — |  |  | — |  |  | 6,349 |  |  | (354) |  |  | 14 |  |  | 6,349 |  |  | (354) |  |  | 14 |
Municipal bonds |  | 1,505 |  |  | (27) |  |  | 4 |  |  | 440 |  |  | (3) |  |  | 2 |  |  | 1,945 |  |  | (30) |  |  | 6 |
Corporate bonds |  | — |  |  | — |  |  | — |  |  | 4,150 |  |  | (850) |  |  | 1 |  |  | 4,150 |  |  | (850) |  |  | 1 |
Total securities available-for-sale |  | $ | 14,104 |  |  | $ | (156) |  |  | 18 |  |  | $ | 106,650 |  |  | $ | (14,470) |  |  | 164 |  |  | $ | 120,754 |  |  | $ | (14,626) |  |  | 182 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency and U.S. government sponsored enterprise securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 9,252 |  |  | $ | (41) |  |  | 8 |  |  | $ | 78,958 |  |  | $ | (10,552) |  |  | 110 |  |  | $ | 88,210 |  |  | $ | (10,593) |  |  | 118 |
Residential collateralized mortgage obligations |  | 5,660 |  |  | (62) |  |  | 4 |  |  | 13,919 |  |  | (1,439) |  |  | 35 |  |  | 19,579 |  |  | (1,501) |  |  | 39 |
SBA loan pool securities |  | — |  |  | — |  |  | — |  |  | 6,627 |  |  | (326) |  |  | 14 |  |  | 6,627 |  |  | (326) |  |  | 14 |
Municipal bonds |  | 81 |  |  | — |  |  | 1 |  |  | 362 |  |  | (2) |  |  | 1 |  |  | 443 |  |  | (2) |  |  | 2 |
Corporate bonds |  | — |  |  | — |  |  | — |  |  | 4,280 |  |  | (720) |  |  | 1 |  |  | 4,280 |  |  | (720) |  |  | 1 |
Total securities available-for-sale |  | $ | 14,993 |  |  | $ | (103) |  |  | 13 |  |  | $ | 104,146 |  |  | $ | (13,040) |  |  | 161 |  |  | $ | 119,139 |  |  | $ | (13,142) |  |  | 174 |
As of March 31, 2024, 94.6%, at amortized cost basis, of the Company's securities available-for-sale were issued by U.S. government agency and U.S. government sponsored enterprise. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell these securities before their anticipated recovery, the Company determined that these securities with unrealized losses did not warrant an ACL. Municipal and corporate bonds had an investment grade rating upon purchase. The issuers of these securities have not established any cause for default on these securities and various rating agencies have reaffirmed their long-term investment grade status as of March 31, 2024. These securities have fluctuated in value since their purchase dates as market interest rates fluctuated. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell before the recovery of its amortized cost basis. The Company therefore determined that the investment securities with unrealized losses did not warrant an ACL as of March 31, 2024. As of March 31, 2024, the Company recorded no ACL on securities available-for-sale.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
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