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Investment Securities
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The following table presents the amortized cost and fair value of the investment securities as of the dates indicated:
($ in thousands)Amortized CostGross Unrealized GainGross Unrealized Loss
Fair Value
December 31, 2025
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Mortgage-backed securities$135,728 $1,063 $(6,969)$129,822 
Collateralized mortgage obligations19,499 65 (802)18,762 
SBA loan pool securities4,363 1 (171)4,193 
Municipal bonds2,463 22 (1)2,484 
Corporate bonds5,000 — (252)4,748 
Total securities available-for-sale$167,053 $1,151 $(8,195)$160,009 
December 31, 2024
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Mortgage-backed securities$123,209 $168 $(10,938)$112,439 
Collateralized mortgage obligations22,753 1 (1,517)21,237 
SBA loan pool securities6,328 — (320)6,008 
Municipal bonds
2,452 — (32)2,420 
Corporate bonds5,000 — (755)4,245 
Total securities available-for-sale$159,742 $169 $(13,562)$146,349 
As of December 31, 2025 and 2024, pledged securities were $75.7 million and $72.5 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 $599 thousand and $548 thousand at December 31, 2025 and 2024, respectively.
As of December 31, 2025 and 2024, there were no holdings of securities available-for-sale of any one issuer, other than the U.S. government agency and U.S. GSEs, in an amount greater than 10% of shareholder’s equity.
The following table presents the amortized cost and fair value of the investment securities by contractual maturity as of December 31, 2025. Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
Securities Available-For-Sale
($ in thousands)
Amortized Cost
Fair Value
Within one year
$— $— 
One to five years
83 83 
Five to ten years
6,503 6,266 
Greater than ten years
877 883 
Mortgage-backed securities, collateralized mortgage obligations and SBA loan pool securities
159,590 152,777 
Total$167,053 $160,009 
The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated:
Year Ended December 31,
($ in thousands)202520242023
Gross realized gains on sales and calls of securities available-for-sale
$— $— $— 
Gross realized losses on sales and calls of securities available-for-sale
— — — 
Net realized gains on sales and calls of securities available-for-sale$— $— $— 
Proceeds from sales and calls of securities available-for-sale
$— $— $— 
Tax expense on sales and calls of securities available-for-sale
$— $— $— 
The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position for which an allowance for credit losses has not been recorded as of the dates indicated:
Length of Time That Individual Securities Have Been In a Continuous Unrealized Loss Position
Less Than 12 Months12 Months or LongerTotal
($ 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
December 31, 2025
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Mortgage-backed securities$6,795 $(15)3 $61,977 $(6,954)111 $68,772 $(6,969)114 
Collateralized mortgage obligations3,114 (7)3 12,181 (795)34 15,295 (802)37 
SBA loan pool securities— — — 4,152 (171)15 4,152 (171)15 
Municipal bonds83 (1)1 — — — 83 (1)1 
Corporate bonds— — — 4,748 (252)1 4,748 (252)1 
Total securities available-for-sale$9,992 $(23)7 $83,058 $(8,172)161 $93,050 $(8,195)168 
December 31, 2024
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Mortgage-backed securities$26,250 $(392)17 $67,640 $(10,546)109 $93,890 $(10,938)126 
Collateralized mortgage obligations4,963 (26)3 13,375 (1,491)36 18,338 (1,517)39 
SBA loan pool securities396 (1)3 5,316 (319)13 5,712 (320)16 
Municipal bonds2,050 (32)6 — — — 2,050 (32)6 
Corporate bonds— — — 4,245 (755)1 4,245 (755)1 
Total securities available-for-sale$33,659 $(451)29 $90,576 $(13,111)159 $124,235 $(13,562)188 
As of December 31, 2025 and 2024, 95.5% and 95.3%, respectively, of the Company's securities available-for-sale at amortized cost basis were issued by U.S. government agency and U.S. GSEs. Because the decline in fair value is attributable to changes in interest rates, 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 as of December 31, 2025 and 2024.
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 December 31, 2025 and 2024. These securities have fluctuated in value since their purchase dates as market interest rates fluctuated. Additionally, the Company continues to receive contractual principal and interest payments in a timely manner. 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 December 31, 2025 and 2024.
As of December 31, 2025 and 2024, the Company recorded no ACL on securities available-for-sale.