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Securities | 3 Months Ended
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Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of available-for-sale ("AFS") debt securities as of March 31, 2023 and December 31, 2022:
|  | March 31, 2023
($ in thousands) |  | Amortized Cost |  | Gross Unrealized Gain |  | Gross Unrealized Loss |  | Fair Value
U.S. Government agencies or sponsored agency securities: |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 53,503 |  |  | $ | — |  |  | $ | (4,788) |  |  | $ | 48,715 |
Residential collateralized mortgage obligations |  | 175,840 |  |  | 229 |  |  | (17,880) |  |  | 158,189 |
Municipal securities-tax exempt |  | 5,653 |  |  | 210 |  |  | — |  |  | 5,863 |
Total AFS debt securities |  | $ | 234,996 |  |  | $ | 439 |  |  | $ | (22,668) |  |  | $ | 212,767 |
|  | December 31, 2022
($ in thousands) |  | Amortized Cost |  | Gross Unrealized Gain |  | Gross Unrealized Loss |  | Fair Value
U.S. Government agencies or sponsored agency securities: |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 55,189 |  |  | $ | — |  |  | $ | (5,425) |  |  | $ | 49,764 |
Residential collateralized mortgage obligations |  | 179,953 |  |  | 1 |  |  | (19,909) |  |  | 160,045 |
Total AFS debt securities |  | $ | 235,142 |  |  | $ | 1 |  |  | $ | (25,334) |  |  | $ | 209,809 |
There were no sales of AFS debt securities during the three months ended March 31, 2023 and 2022. The amortized cost and estimated fair value of AFS debt securities as of March 31, 2023, by contractual maturity, are shown below:
($ in thousands) |  | Amortized Cost |  | Fair Value
After one year through five years |  | $ | 1,467 |  |  | $ | 1,411 |
After five years through ten years |  | 4,503 |  |  | 4,120 |
After ten years |  | 229,026 |  |  | 207,236 |
Total AFS debt securities |  | $ | 234,996 |  |  | $ | 212,767 |
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of March 31, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss as of March 31, 2023 and December 31, 2022:
|  | March 31, 2023
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
($ in thousands) |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
U.S. Government agencies or sponsored agency securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 15,913 |  |  | $ | (493) |  |  | $ | 32,802 |  |  | $ | (4,295) |  |  | $ | 48,715 |  |  | $ | (4,788) |
Residential collateralized mortgage obligations |  | 37,944 |  |  | (722) |  |  | 92,180 |  |  | (17,158) |  |  | 130,124 |  |  | (17,880) |
Total AFS debt securities |  | $ | 53,857 |  |  | $ | (1,215) |  |  | $ | 124,982 |  |  | $ | (21,453) |  |  | $ | 178,839 |  |  | $ | (22,668) |
|  | December 31, 2022
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
($ in thousands) |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
U.S. Government agencies or sponsored agency securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 26,347 |  |  | $ | (1,485) |  |  | $ | 23,417 |  |  | $ | (3,940) |  |  | $ | 49,764 |  |  | $ | (5,425) |
Residential collateralized mortgage obligations |  | 81,320 |  |  | (3,888) |  |  | 71,604 |  |  | (16,021) |  |  | 152,924 |  |  | (19,909) |
Total AFS debt securities |  | $ | 107,667 |  |  | $ | (5,373) |  |  | $ | 95,021 |  |  | $ | (19,961) |  |  | $ | 202,688 |  |  | $ | (25,334) |
As a result of the Company's adoption of ASU 2016-03 on January 1, 2023, available-for-sale debt securities are measured at fair value and are subject to impairment testing. A security is impaired if the fair value of the security is less than its amortized cost basis. When an available-for-sale debt security is considered impaired, the Company must determine if the decline in fair value has resulted from a credit-related loss or other factors and then, (1) recognize an allowance for credit losses by a charge to earnings for the credit-related component of the decline in fair value, and (2) recognize in other comprehensive income (loss) any non-credit related components of the fair value decline. If the amount of the amortized cost basis expected to be recovered increases in a future period, the valuation reserve would be reduced, but not more than the amount of the current existing reserve for that security. The unrealized losses were primarily attributable to interest rate movement, not credit quality. The Company believes that the gross unrealized losses presented in the previous tables are temporary and no credit losses are expected. As a result, the Company expects full collection of the carrying amount of these securities, does not intend to sell the securities in an unrealized loss position, and it was more-likely-than-not the Company will not have to sell these securities prior to recovery of amortized cost. Accordingly, for available-for-sale debt securities, the Company did not record allowance for credit losses on January 1, 2013 and did not have allowance for credit losses as of March 31, 2023. As of March 31, 2023 or December 31, 2022, there were no pledged securities to secure public deposits, borrowing and letters of credit from Federal Home Loan Bank ("FHLB") and the Board of Governors of the Federal Reserve System, and for other purposes required or permitted by law. The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022:
($ in thousands) |  | March 31, 2023 |  | December 31, 2022
FHLB stock |  | $ | 8,483 |  |  | $ | 8,483 |
Pacific Coast Bankers Bank ("PCBB") stock |  | 190 |  |  | 190 |
Mutual fund - Community Reinvestment Act ("CRA") qualified |  | 3,404 |  |  | 3,330 |
Time deposits placed in other banks |  | 95 |  |  | 95 |
Total other investments |  | $ | 12,172 |  |  | $ | 12,098 |
The Company has equity investment in a mutual fund with readily determinable fair value of $3.4 million and $3.3 million, as of March 31, 2023 and December 31, 2022, respectively, which is measured at fair value with changes in fair value recorded in net income. The Company invested in the mutual fund for CRA purposes. For the mutual fund, the Company recorded a $54 thousand gain and a $173 thousand loss for the three months ended March 31, 2023 and 2022, respectively. The gains (losses) of the mutual fund are included in Other income in the Consolidated Statements of Income.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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