XML 22 R11.htm IDEA: XBRL DOCUMENT v3.26.1
Investment Securities
 6 Months Ended
Jun. 30, 2026
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 GainGross Unrealized Loss
Fair Value
June 30, 2026
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities
$163,792 $588 $(8,183)$156,197 
Residential collateralized mortgage obligations
18,183 14 (886)17,311 
SBA loan pool securities
3,710 — (184)3,526 
Municipal bonds
2,470 5 (1)2,474 
Corporate bonds5,000 — (190)4,810 
Total securities available-for-sale
$193,155 $607 $(9,444)$184,318 
December 31, 2025
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities
$135,728 $1,063 $(6,969)$129,822 
Residential collateralized mortgage obligations
19,499 65 (802)18,762 
SBA loan pool securities
4,363 1 (171)4,193 
Municipal bonds
2,463 22 (1)2,484 
Corporate bonds5,000 — (252)4,748 
Total securities available-for-sale
$167,053 $1,151 $(8,195)$160,009 
As of June 30, 2026 and December 31, 2025, pledged securities were $140.4 million and $75.7 million, respectively. These securities were pledged as collateral securing deposits 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 $705 thousand and $599 thousand at June 30, 2026 and December 31, 2025, respectively.
As of June 30, 2026 and December 31, 2025, there were no holdings of securities available-for-sale of any one issuer, other than U.S. government agencies and U.S. government sponsored enterprise securities, in an amount greater than 10% of shareholders’ equity.
The following table presents the amortized cost and fair value of the securities available-for-sale by contractual maturity as of the date indicated. Expected maturities may differ from contractual maturities, if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
June 30, 2026
($ in thousands)
Amortized Cost
Fair Value
Within one year
$— $— 
One to five years
83 83 
Five to ten years
6,927 6,741 
Greater than ten years
460 460 
Residential mortgage-backed securities, residential collateralized mortgage obligations and SBA loan pool securities
185,685 177,034 
Total
$193,155 $184,318 
The Company had no proceeds from sales and calls of securities available-for-sale for the three and six months ended June 30, 2026 or 2025.
The following table presents the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position for which an allowance for credit losses (“ACL”) was not recorded as of the dates indicated:
Length of Time that Individual Securities Have Been In a Continuous Unrealized Loss Position
Less Than 12 Months12 Months or LongerTotal
($ 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
June 30, 2026
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities
$57,754 $(717)30 $57,198 $(7,466)104 $114,952 $(8,183)134 
Residential collateralized mortgage obligations
627 (1)1 13,572 (885)35 14,199 (886)36 
SBA loan pool securities
40 (1)1 3,486 (183)14 3,526 (184)15 
Municipal bonds
83 (1)1 — — — 83 (1)1 
Corporate bonds— — — 4,810 (190)1 4,810 (190)1 
Total securities available-for-sale
$58,504 $(720)33 $79,066 $(8,724)154 $137,570 $(9,444)187 
December 31, 2025
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities
$6,795 $(15)3 $61,977 $(6,954)111 $68,772 $(6,969)114 
Residential collateralized mortgage obligations
3,114 (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 
As of June 30, 2026 and December 31, 2025, 96.1% and 95.5%, 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 June 30, 2026 and December 31, 2025.
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 June 30, 2026 and December 31, 2025. 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 June 30, 2026 and December 31, 2025.
As of June 30, 2026 and December 31, 2025, the Company recorded no ACL on securities available-for-sale.