0001552781-21-000797 | 10-Q | XBRL Viewer

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Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2021	Nov. 05, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	001-40379
Entity Registrant Name	FIVE STAR BANCORP
Entity Central Index Key	0001275168
Entity Tax Identification Number	75-3100966
Entity Incorporation, State or Country Code	CA
Entity Address, Address Line One	3100 Zinfandel Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Rancho Cordova
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95670
City Area Code	(916)
Local Phone Number	626-5000
Title of 12(b) Security	Common stock, no par value per share
Trading Symbol	FSBC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,223,808

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
ASSETS
Cash and due from financial institutions	$ 89,951	$ 46,028
Interest-bearing deposits in banks	440,881	244,465
Cash and cash equivalents	530,832	290,493
Time deposits in banks	17,204	23,705
Securities available-for-sale, at fair value	153,821	114,949
Securities held-to-maturity, at amortized cost (fair value of $5,211 and $8,755 at September 30, 2021 and December 31, 2020, respectively)	4,955	7,979
Loans held for sale	5,267	4,820
Loans, net of allowance for loan losses of $21,848 and $22,189 at September 30, 2021 and December 31, 2020, respectively	1,682,868	1,480,970
Federal Home Loan Bank of San Francisco (“FHLB”) stock	6,723	6,232
Premises and equipment, net	1,630	1,663
Bank owned life insurance	11,142	8,662
Interest receivable and other assets	20,051	14,292
Assets	2,434,493	1,953,765
Deposits
Non-interest-bearing	895,468	695,687
Interest-bearing	1,272,926	1,088,314
Total deposits	2,168,394	1,784,001
Subordinated notes, net	28,370	28,320
Interest payable and other liabilities	11,091	7,669
Total liabilities	2,207,855	1,819,990
Shareholders’ equity
Preferred stock, no par value; 10,000,000 shares authorized; zero issued and outstanding at September 30, 2021 and December 31, 2021
Common stock, no par value; 100,000,000 shares authorized; 17,223,808 shares issued and outstanding at September 30, 2021; 11,000,273 shares issued and outstanding at December 31, 2020	218,216	110,082
Retained earnings	8,442	22,348
Accumulated other comprehensive (loss) income, net	(20)	1,345
Total shareholders’ equity	226,638	133,775
Liabilities and Shareholders’ Equity	$ 2,434,493	$ 1,953,765

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Securities, Held-to-Maturity	$ 5,211	$ 8,755
Loans and Leases Receivable, Allowance	$ 21,848	$ 22,189
Preferred Stock, Par Value	$ 0	$ 0
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0	$ 0
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	17,223,808	11,000,273
Common Stock, Shares, Outstanding	17,223,808	11,000,273

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest and dividend income
Loans, including fees	$ 20,086	$ 17,734	$ 57,325	$ 51,318
Taxable securities	377	347	974	1,062
Nontaxable securities	194	154	627	285
Interest-bearing deposits in other banks	175	199	404	1,073
Interest and dividend income	20,832	18,434	59,330	53,738
Interest expense
Deposits	480	1,764	1,747	6,390
Subordinated notes	443	443	1,330	1,330
Interest expense	923	2,207	3,077	7,720
Net interest income	19,909	16,227	56,253	46,018
Provision for loan losses		1,850	200	6,000
Net interest income after provision for loan losses	19,909	14,377	56,053	40,018
Non-interest income
Service charges on deposit accounts	112	93	308	269
Net gain on sale of securities available-for-sale	435	275	709	1,241
Gain on sale of loans	988	1,194	3,010	2,635
Loan-related fees	87	710	420	1,875
FHLB stock dividends	100	74	270	227
Earnings on bank owned life insurance	68	59	180	174
Other	238	130	593	341
Noninterest Income	2,028	2,535	5,490	6,762
Non-interest expense
Salaries and employee benefits	4,980	3,969	14,616	10,444
Occupancy and equipment	502	447	1,394	1,239
Data processing and software	611	529	1,838	1,433
Federal deposit insurance	110	320	540	867
Professional services	505	447	3,348	1,154
Advertising and promotional	366	264	801	766
Loan-related expenses	462	185	909	510
Other operating expenses	1,105	1,073	3,579	2,933
Noninterest expense	8,641	7,234	27,025	19,346
Income before provision for income taxes	13,296	9,678	34,518	27,434
Provision for income taxes	2,270	341	3,386	968
Net income	$ 11,026	$ 9,337	$ 31,132	$ 26,466
Basic earnings per share	$ 0.64	$ 0.94	$ 2.18	$ 2.72
Diluted earnings per share	$ 0.64	$ 0.94	$ 2.18	$ 2.72

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Net income	$ 11,026	$ 9,337	$ 31,132	$ 26,466
Net unrealized holding (loss) gain on securities available-for-sale during the period	(4)	(83)	(713)	2,129
Reclassification adjustment for net realized gains included in net income	(435)	(275)	(709)	(1,241)
Income tax (benefit) expense related to other comprehensive income (loss)	(131)	(12)	(57)	32
Other comprehensive (loss) income	(308)	(346)	(1,365)	856
Total comprehensive income	$ 10,718	$ 8,991	$ 29,767	$ 27,322

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 96,114	$ 12,789	$ (26)	$ 108,877
Beginning Balance, Shares at Dec. 31, 2019	9,674,875
Net income		26,466		26,466
Other comprehensive loss			856	856
Stock offering	$ 12,500			12,500
Stock offering, Shares	1,250,000
Stock issued under stock award plans
Stock issued under stock award plans, Shares	9,398
Stock compensation expense	$ 252			252
Stock issued to directors	$ 252			252
Stock issued to directors, Shares	16,000
Common stock issued	$ 900			900
Common stock issued, Shares	50,000
Cash dividends paid ($4.40 per share)		(18,890)		(18,890)
Ending balance, value at Sep. 30, 2020	$ 110,018	20,365	830	131,213
Ending Balance, Shares at Sep. 30, 2020	11,000,273
Stock offering				13,400
Beginning balance, value at Jun. 30, 2020	$ 96,243	18,304	1,176	115,723
Beginning Balance, Shares at Jun. 30, 2020	9,683,023
Net income		9,337		9,337
Other comprehensive loss			(346)	(346)
Stock offering	$ 12,500			12,500
Stock offering, Shares	1,250,000
Stock issued under stock award plans
Stock issued under stock award plans, Shares	1,250
Stock compensation expense	$ 123			123
Stock issued to directors	$ 252			252
Stock issued to directors, Shares	16,000
Common stock issued	$ 900			900
Common stock issued, Shares	50,000
Cash dividends paid ($4.40 per share)		(7,276)		(7,276)
Ending balance, value at Sep. 30, 2020	$ 110,018	20,365	830	131,213
Ending Balance, Shares at Sep. 30, 2020	11,000,273
Beginning balance, value at Dec. 31, 2020	$ 110,082	22,348	1,345	133,775
Beginning Balance, Shares at Dec. 31, 2020	11,000,273
Net income		31,132		31,132
Other comprehensive loss			(1,365)	(1,365)
Stock issued under stock award plans
Stock issued under stock award plans, Shares	132,707
Stock compensation expense	$ 402			402
Stock issued to directors	$ 810			810
Stock issued to directors, Shares	40,500
Reclassification of retained deficit	$ (4,321)	4,321
Stock forfeitures
Stock forfeitures, Shares	(4,422)
Common stock issued, Shares	6,054,750
Cash dividends paid ($4.40 per share)		(49,359)		(49,359)
Ending balance, value at Sep. 30, 2021	$ 218,216	8,442	(20)	226,638
Ending Balance, Shares at Sep. 30, 2021	17,223,808
Stock offering	$ 111,243			111,243
Beginning balance, value at Jun. 30, 2021	$ 218,026		288	218,314
Beginning Balance, Shares at Jun. 30, 2021	17,225,508
Net income		11,026		11,026
Other comprehensive loss			(308)	(308)
Stock compensation expense	190			190
Stock forfeitures
Stock forfeitures, Shares	(1,700)
Cash dividends paid ($4.40 per share)		(2,584)		(2,584)
Ending balance, value at Sep. 30, 2021	$ 218,216	$ 8,442	$ (20)	$ 226,638
Ending Balance, Shares at Sep. 30, 2021	17,223,808

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Common Stock Dividend Paid, in Per Shares	$ 0.15	$ 0.75	$ 4.40	$ 1.95

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 31,132	$ 26,466
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	200	6,000
Loans originated for sale	(34,211)	(60,188)
Gain on sale of loans	(3,010)	(2,635)
Proceeds from sales of loans	31,954	48,958
Net gain on sale of securities available-for-sale	(709)	(1,241)
Earnings on bank owned life insurance	(180)	(174)
Stock compensation expense	402	252
Director stock compensation expense	810	252
Change in deferred loan fees	(997)	5,932
Amortization and accretion of security premiums and discounts	1,120	744
Amortization of subordinated notes issuance costs	50	50
Depreciation and amortization	408	333
Net changes in:
Interest receivable and other assets	(5,702)	(3,939)
Interest payable and other liabilities	3,422	318
Net cash provided by operating activities	24,689	21,128
Cash flows from investing activities:
Proceeds from sale of securities available-for-sale	40,772	39,940
Maturities, prepayments, and calls of securities available-for-sale	13,639	11,804
Purchases of securities available-for-sale	(92,093)	(82,571)
Increase (decrease) in time deposits in banks	6,501	(2,255)
Loan originations, net of repayments	(196,280)	(371,499)
Purchase of premises and equipment	(375)	(714)
Purchase of FHLB stock	(491)	(1,152)
Purchase of bank owned life insurance	(2,300)
Net cash used in investing activities	(230,627)	(406,447)
Cash flows from financing activities:
Net change in deposits	384,393	579,835
Proceeds from issuance of stock	111,243	13,400
FHLB repayment		(25,000)
Cash dividends paid	(49,359)	(18,890)
Net cash provided by financing activities	446,277	549,345
Net change in cash and cash equivalents	240,339	164,026
Cash and cash equivalents at beginning of period	290,493	177,366
Cash and cash equivalents at end of period	530,832	341,392
Supplemental disclosure of cash flow information:
Interest paid	3,090	8,181
Income taxes paid	5,150	1,045
Supplemental disclosure of noncash investing and financing activities:
Transfer from loans held for investment to loans held for sale	4,820	6,527
Unrealized (loss) gain on securities	$ (1,365)	$ 856

Basis of Presentation

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1: Basis of Presentation

Nature of Operations and Principles of Consolidation

Five Star Bank (the “Bank”) was chartered on October 26, 1999 and began operations on December 20, 1999. Five Star Bancorp (“Bancorp” or the “Company”) was incorporated on September 16, 2002 and subsequently obtained approval from the Board of Governors of the Federal Reserve System (“Federal Reserve”) to be a bank holding company in connection with its acquisition of the Bank. The Company became the sole shareholder of the Bank on June 2, 2003 in a statutory merger, pursuant to which each outstanding share of the Bank’s common stock was exchanged for one share of common stock of the Company.

The Company, through the Bank, provides financial services to customers who are predominately small and middle-market businesses, professionals, and individuals residing in the Northern California region. Its primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit; and its primary deposit products are checking accounts, savings accounts, money market accounts, and term certificate accounts. The Bank currently has seven branch offices in Roseville, Natomas, Rancho Cordova, Redding, Elk Grove, Chico, and Yuba City, and two loan production offices in Santa Rosa and Sacramento.

The Company terminated its status as a Subchapter S corporation as of May 5, 2021, in connection with the Company’s Initial Public Offering (“IPO”) and became a taxable C Corporation. Prior to that date, as an S Corporation, the Company had no U.S. federal income tax expense.

On April 9, 2021, the Company publicly filed a Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with its IPO (the “Registration Statement”), which was subsequently amended on April 26, 2021 and May 3, 2021. The Registration Statement was declared effective by the SEC on May 4, 2021. In connection with the IPO, the Company issued 6,054,750 shares of common stock, no par value, which included 789,750 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The securities were sold to the public at a price of $20.00 per share and began trading on the Nasdaq Stock Market LLC on May 5, 2021. On May 7, 2021, the closing date of the IPO, the Company received total net proceeds of $111.2 million. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $109.1 million.

Basis of Financial Statement Presentation and Consolidation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Regulation S-X. These interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in shareholders’ equity, and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2020, and the notes thereto, as filed in the Company’s Registration Statement, which was declared effective by the SEC on May 4, 2021.

The unaudited consolidated financial statements include Five Star Bancorp and its wholly owned subsidiary, Five Star Bank. All significant intercompany transactions and balances are eliminated in consolidation.

The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2021.

While the Company’s chief decision-makers monitor the revenue streams of the various products and services, operations are managed, and financial performance is evaluated, on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry.

The Company qualifies as an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, and, as such, may take advantage of specified reduced reporting requirements and is relieved of other significant requirements that are otherwise generally applicable to other public companies.

Use of Estimates

Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited consolidated financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses is the most significant accounting estimate reflected in the Company’s consolidated financial statements.

Earnings Per Share (“EPS”)

Basic EPS is net income divided by the weighted average number of common shares outstanding during the period less average unvested restricted stock awards (“RSAs”). Diluted EPS includes the dilutive effect of additional potential common shares related to unvested RSAs using the treasury stock method. The Company has two forms of outstanding common stock: common stock and unvested RSAs. Holders of unvested RSAs receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings, and therefore the RSAs are considered participating securities. However, under the two-class method, the difference in EPS is not significant for these participating securities.

Schedule of Earning Per Share


	For the three months ended				For the nine months ended
(in thousands, except per share data)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income	$	11,026	$	9,337	$	31,132	$	26,466
Weighted average basic common shares outstanding		17,095,957		9,902,952		14,256,993		9,747,896
Add: Dilutive effects of assumed vesting of restricted stock		27,225		—		15,538		—
Weighted average diluted common shares outstanding		17,123,182		9,902,952		14,272,531		9,747,896
Income per common share:
Basic EPS	$	0.64	$	0.94	$	2.18	$	2.72
Diluted EPS	$	0.64	$	0.94	$	2.18	$	2.72

During the three and nine months ended September 30, 2021 and 2020, there were no outstanding stock options. Anti-dilutive shares, which are excluded from the dilutive EPS calculation, were deemed to be immaterial.

For the three and nine months ended September 30, 2020, pro forma EPS is calculated by applying a C Corporation effective tax rate of 29.56% to net income before provision for income taxes and using the determined pro forma net income balance to calculate EPS. For the three months ended September 30, 2021, pro forma EPS is actual EPS given that the Company was a C Corporation for the entire three-month period. For the nine months ended September 30, 2021, pro forma EPS is calculated by applying an effective tax rate of 23.25%, which is the actual effective tax rate, excluding the effects of the discrete deferred tax adjustment of $4.6 million, as discussed in Note 8. The following reconciliation table provides a detailed calculation of pro forma EPS:

Schedule of Pro forma Earning Per Share


	For the three months ended						For the nine months ended
(in thousands, except per share data)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net income before provision for income taxes - GAAP	$	13,296		$	9,678		$	34,518		$	27,434
Actual/pro forma provision for income taxes		(2,270	)		(2,861	)		(8,024	)		(8,109	)
Actual/pro forma net income		11,026			6,817			26,494			19,325
Weighted average basic common shares outstanding		17,095,957			9,902,952			14,256,993			9,747,896
Add: Dilutive effects of assumed vesting of restricted stock		27,225			—			15,538			—
Weighted average diluted common shares outstanding		17,123,182			9,902,952			14,272,531			9,747,896
Income per common share:
Basic EPS	$	0.64		$	0.69		$	1.86		$	1.98
Diluted EPS	$	0.64		$	0.69		$	1.86		$	1.98

Recently Issued Accounting Standards

9 Months Ended

Sep. 30, 2021

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Standards

Note 2: Recently Issued Accounting Standards

The following reflect recent accounting standards that are pending adoption by the Company. As discussed in Note 1, Basis of Presentation, the Company qualifies as an emerging growth company, and as such, has elected to use the extended transition period for complying with new or revised accounting standards and is not subject to the new or revised accounting standards applicable to public companies during the extended transition period. The accounting standards discussed below reflect effective dates for the Company as an emerging growth company with the extended transition period.

Accounting Standards Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this ASU intend to increase transparency and comparability among organizations by recognizing an asset, which represents the right to use the asset for the lease term, and a lease liability, which is a lessee’s obligation to make lease payments measured on a discounted basis. This ASU generally applies to leasing arrangements exceeding a twelve-month term. As amended by ASU 2020-05, ASU 2016-02 is effective for annual periods, including interim periods within those annual periods beginning after December 15, 2021 and requires a modified retrospective method of adoption. In July 2018, the FASB issued two amendments to ASU 2016-02: ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides various corrections and clarifications to ASU 2016-02; and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides a new optional transition method and provides a lessor with practical expedients for separating lease and non-lease components of a lease. In July 2021, the FASB issued ASU No. 2021-05, which amends ASU 2016-02 and requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease on the commencement date of the lease if specified criteria are met. Entities will apply a modified retrospective approach at either the beginning of the earliest period presented or at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. The Company is currently evaluating the effect that this ASU will have on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard will replace the “incurred loss” model with a “current expected credit loss” (“CECL”) model. The CECL model will apply to estimated credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. The CECL model is based on lifetime expected losses, rather than incurred losses, and requires the recognition of credit loss expense in the consolidated statement of income and a related allowance for credit losses on the consolidated statement of condition at the time of origination or purchase of a loan receivable or held-to-maturity debt security. Likewise, subsequent changes in this estimate are recorded through credit loss expense and related allowance. The CECL model requires the use of not only relevant historical experience and current conditions, but reasonable and supportable forecasts of future events and circumstances, incorporating a broad range of information in developing credit loss estimates, which could result in significant changes to both the timing and amount of credit loss expense and allowance. Under ASU 2016-13, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost. Estimated credit losses are recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income. The ASU also expands the disclosure requirements regarding assumptions, models, and methods for estimating the allowance for loan losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU 2016-13 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While the Company believes the change from an incurred loss model to a CECL model has the potential to increase the allowance for loan losses at the adoption date, the Company cannot reasonably quantify the impact of the adoption of the amendments to its financial condition or results of operations at this time due to the complexity and extensive changes from these amendments. The Company is working with its third-party vendor to identify data gaps and determine the appropriate methodologies and resources to utilize in preparation for its transition to the new accounting standard, including but not limited to the use of certain tools to forecast future economic conditions that affect the cash flows of loans over their lifetime.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The primary objective of the amendments in this update is to simplify the application of hedge accounting. More specifically, the amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Furthermore, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Additionally, amendments in this update require an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. Hedge ineffectiveness is no longer separately measured and reported. The amendments in this update will be effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted in any interim period. The impact of adopting this ASU is expected to be immaterial to the Company’s consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU are elective and provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. Additionally, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848), which refines the scope of ASC 848 and clarifies its guidance, permitting entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements, and calculating price alignment interest in connection with reference rate reform activities under way in global financial markets. The amendments in these ASUs may be elected as of March 12, 2020 through December 31, 2022. An entity may choose to elect the amendments in these updates at an interim period subsequent to March 12, 2020, with adoption methods varying based on transaction type. The Company has not elected to apply these amendments; however, the Company is assessing the applicability of the ASUs and continues to monitor guidance for reference rate reform from FASB and its impact on the Company’s consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Note 3: Fair Value of Assets and Liabilities

Fair Value Hierarchy and Fair Value Measurement

Accounting standards require the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

The following table summarizes the Company’s assets and liabilities that were required to be recorded at fair value on a recurring basis.

(in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measurement Categories: Changes in Fair Value Recorded In¹
September 30, 2021
Assets:
Securities available-for-sale:
U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds	$	153,821	$	—	$	153,821	$	—		OCI
Derivatives – interest rate swap		108		—		108		—		NI
Liabilities:
Derivatives – interest rate swap		108		—		108		—		NI

December 31, 2020
Assets:
Securities available-for-sale:
U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, and collateralized mortgage obligations	$	114,949	$	—	$	114,949	$	—		OCI
Derivatives – interest rate swap		149		—		149		—		NI
Liabilities:
Derivatives – interest rate swap		149		—		149	$	—		NI

¹	Other comprehensive income (“OCI”) or net income (“NI”).

Available-for-sale securities are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1) are used to determine the fair value of available-for-sale securities. If quoted market prices are not available, management obtains pricing information from a reputable third-party service provider, who may utilize valuation techniques that use current market-based or independently sourced parameters, such as bid/ask prices, dealer-quoted prices, interest rates, benchmark yield curves, prepayment speeds, probability of default, loss severity, and credit spreads (Level 2). Level 2 securities include U.S. agencies or government-sponsored agencies’ debt securities, mortgage-backed securities, government agency issued bonds, privately issued collateralized mortgage obligations, and corporate bonds. As of September 30, 2021 and December 31, 2020, there were no Level 1 or Level 3 securities.

On a recurring basis, derivative financial instruments are recorded at fair value, which is based on the income approach using observable Level 2 market inputs, reflecting market expectations of future interest rates as of the measurement date. Standard valuation techniques are used to calculate the present value of the future expected cash flows assuming an orderly transaction. Valuation adjustments may be made to reflect both the Company’s credit risk and the counterparties’ credit risk in determining the fair value of the derivatives. A similar credit risk adjustment, correlated to the credit standing of the counterparty, is made when collateral posted by the counterparty does not fully cover their liability to the Company. For further discussion on the Company’s methodology in valuing its derivative financial instruments, refer to Note 11, Derivative Financial Instruments and Hedging Activities.

Certain financial assets may be measured at fair value on a non-recurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as impaired loans that are collateral dependent and other real estate owned (“OREO”). As of September 30, 2021 and December 31, 2020, the Company did not carry any assets measured at fair value on a non-recurring basis.

Disclosures about Fair Value of Financial Instruments

The table below is a summary of fair value estimates for financial instruments as of September 30, 2021 and December 31, 2020. The carrying amounts in the following table are recorded in the consolidated balance sheets under the indicated captions. Further, management has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank owned life insurance policies (“BOLI”).


	September 30, 2021						December 31, 2020
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy		Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets (recorded at amortized cost)
Cash and cash equivalents	$	530,832	$	530,832		Level 1	$	290,493	$	290,493		Level 1
Time deposits in banks		17,204		17,204		Level 1		23,705		23,705		Level 1
Securities available-for-sale		153,821		153,821		Level 2		114,949		114,949		Level 2
Securities held-to-maturity		4,955		5,211		Level 3		7,979		8,755		Level 3
Loans held for sale		5,267		5,507		Level 2		4,820		5,012		Level 2
Loans held for investment		1,682,868		1,689,036		Level 3		1,480,970		1,464,794		Level 3
Interest receivable		5,170		5,170		Level 2		5,422		5,422		Level 2
Financial liabilities (recorded at amortized cost)
Deposits		2,168,394		2,120,785		Level 2		1,784,001		1,785,944		Level 2
Interest payable		19		19		Level 2		75		75		Level 2
Subordinated notes		28,370		28,370		Level 3		28,320		28,320		Level 3

The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at September 30, 2021 and December 31, 2020:

Cash and cash equivalents and time deposits in banks: The carrying amount is estimated to be fair value due to the liquid nature of the assets and their short-term maturities.

Investment securities: See discussion above for the methods and assumptions used by the Company to estimate the fair value of investment securities.

Loans held for sale: For loans held for sale, the fair value is based on what secondary markets are currently offering for portfolios with similar characteristics.

Loans held for investment: For variable-rate loans that reprice frequently with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates being offered at each reporting date for loans with similar terms to borrowers of comparable creditworthiness without considering widening credit spreads due to market illiquidity, which approximates the exit price notion. The allowance for loan losses is considered to be a reasonable estimate of loan discount for credit quality concerns.

Interest receivable and payable: For interest receivable and payable, the carrying amount is estimated to be fair value.

Derivatives - interest rate swap: See above for a discussion of the methods and assumptions used by the Company to estimate the fair value of derivatives.

Deposits: The fair values for demand deposits are, by definition, equal to the amount payable on demand at the reporting date represented by their carrying amount. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow analysis that uses interest rates being offered at each reporting date by the Company for certificates with similar remaining maturities. For variable rate time deposits, cost approximates fair value.

Subordinated Notes: The fair value is estimated by discounting the future cash flow using the current 3-month LIBOR rate. Both notes are not registered securities and were issued through private placements, resulting in a Level 3 classification. Both notes are recorded at carrying value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investment Securities

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 4: Investment Securities

The Company’s investment securities portfolio includes obligations of states and political subdivisions, securities issued by U.S. federal government agencies such as Government National Mortgage Association (“GNMA”) and Small Business Administration (“SBA”), and securities issued by U.S. government-sponsored enterprises (“GSEs”), such as Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Federal Home Loan Bank of San Francisco (“FHLB”). The Company also invests in residential and commercial mortgage-backed securities (“MBS” and “CMBS”, respectively), collateralized mortgage obligations (“CMOs”) issued or guaranteed by the GSEs, and corporate bonds, as reflected in the following tables.

A summary of the amortized cost and fair value related to securities held-to-maturity as of September 30, 2021 and December 31, 2020 is presented below.

Schedule of Securities Held-To-Maturity

			Gross Unrealized
(in thousands)	Amortized Cost		Gains		(Losses)		Fair Value
September 30, 2021
Obligations of states and political subdivisions		4,955		256		—		5,211
Total held-to-maturity	$	4,955	$	256	$	—	$	5,211
December 31, 2020
Obligations of states and political subdivisions		7,979		776		—		8,755
Total held-to-maturity	$	7,979	$	776	$	—	$	8,755

For securities issued by states and political subdivisions, management considers (i) issuer and/or guarantor credit ratings, (ii) historical probability of default and loss given default rates for given bond ratings and remaining maturity, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) internal credit review of the financial information, and (v) whether or not such securities have credit enhancements such as guarantees, contain a defeasance clause, or are pre-refunded by the issuers.

A summary of the amortized cost and fair value related to securities available-for-sale as of September 30, 2021 and December 31, 2020 is presented below.

			Gross Unrealized
(in thousands)	Amortized Cost		Gains		(Losses)			Fair Value
September 30, 2021
U.S. government agencies	$	21,780	$	108	$	(234	)	$	21,654
Mortgage-backed securities		78,301		198		(572	)		77,927
Collateralized mortgage obligations		580		12		—			592
Obligations of states and political subdivisions		51,189		661		(197	)		51,653
Corporate bonds		2,000		—		(5	)		1,995
Total available-for-sale	$	153,850	$	979	$	(1,008	)	$	153,821
December 31, 2020
U.S. government agencies	$	32,069	$	111	$	(352	)	$	31,828
Mortgage-backed securities		23,601		338		(7	)		23,932
Collateralized mortgage obligations		748		21		—			769
Obligations of states and political subdivisions		57,137		1,291		(8	)		58,420
Total available-for-sale	$	113,555	$	1,761	$	(367	)	$	114,949

The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2021 and December 31, 2020 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2021								December 31, 2020
	Held-to-Maturity				Available-for-Sale				Held-to-Maturity				Available-for-Sale
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	795	$	836	$	—	$	—	$	494	$	543	$	—	$	—
After one but within five years		2,700		2,840		508		528		2,143		2,351		1,141		1,206
After five years through ten years		1,460		1,535		4,488		4,610		2,755		3,023		8,340		8,599
After ten years		—		—		46,193		46,515		2,587		2,838		47,656		48,615

Investment securities not due at a single maturity date:
U.S. government agencies		—		—		21,780		21,654		—		—		32,069		31,828
Mortgage-backed securities		—		—		78,301		77,927		—		—		23,601		23,932
Collateralized mortgage obligations		—		—		580		592		—		—		748		769
Corporate bonds		—		—		2,000		1,995		—		—		—		—
Total	$	4,955	$	5,211	$	153,850	$	153,821	$	7,979	$	8,755	$	113,555	$	114,949

Sales of investment securities and gross gains and losses are shown in the following table:


	For the three months ended				For the nine months ended
(in thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Available-for-sale:
Sales proceeds	$	24,590	$	7,706	$	40,772	$	39,940
Gross realized gains		435		275		709		1,241

Pledged investment securities are shown in the following table:

(in thousands)	September 30, 2021		December 31, 2020
Pledged to the State of California:
Secure deposits of public funds and borrowings	$	68,050	$	52,897
Total pledged investment securities	$	68,050	$	52,897

The following table details the gross unrealized losses and fair values aggregated by investment category and length of time that individual available-for-sale securities have been in a continuous unrealized loss position at September 30, 2021 and December 31, 2020:


(in thousands)	< 12 continuous months					≥ 12 continuous months					Total securities in a loss position
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2021
U.S. government agencies	$	—	$	—		$	14,866	$	(234	)	$	14,866	$	(234	)
Mortgage-backed securities		56,020		(530	)		1,421		(42	)		57,441		(572	)
Obligations of states and political subdivisions		20,846		(184	)		1,063		(13	)		21,909		(197	)
Corporate bonds		995		(5	)		—		—			995		(5	)
Total temporarily impaired securities	$	77,861	$	(719	)	$	17,350	$	(289	)	$	95,211	$	(1,008	)

December 31, 2020
U.S. government agencies	$	10,800	$	(56	)	$	15,195	$	(296	)	$	25,995	$	(352	)
Mortgage-backed securities		1,786		(7	)		—		—			1,786		(7	)
Obligations of states and political subdivisions		3,922		(8	)		—		—			3,922		(8	)
Total temporarily impaired securities	$	16,508	$	(71	)	$	15,195	$	(296	)	$	31,703	$	(367	)

There were 93 and 31 securities in unrealized loss positions at September 30, 2021 and December 31, 2020, respectively, which were all classified as available-for-sale. As of September 30, 2021, the investment portfolio included 18 investment securities that had been in a continuous loss position for twelve months or more and 75 investment securities that had been in a loss position for less than twelve months.

The Company periodically evaluates each available-for-sale investment security in an unrealized loss position to determine if the impairment is temporary or other than temporary and has determined that no investment security is other than temporarily impaired. The unrealized losses are due primarily to interest rate changes. The Company does not intend, and it is more likely than not that the Company will not be required to, sell the securities before the earlier of the forecasted recovery or the maturity of the underlying debt security.

There were no held-to-maturity securities in a continuous loss position at September 30, 2021 or December 31, 2020.

Obligations issued or guaranteed by government agencies such as GNMA and SBA or GSEs under conservatorship such as FNMA and FHLMC are guaranteed or sponsored by agencies of the U.S. government and have strong credit profiles. The Company therefore expects to receive all contractual interest payments on time and believes the risk of credit losses on these securities is remote.

The Company’s investment in obligations of states and political subdivisions are deemed credit worthy after management’s comprehensive analysis of the issuers’ latest financial information, credit ratings by major credit agencies, and/or credit enhancements.

Non-Marketable Securities Included in Other Assets

FHLB capital stock: As a member of the FHLB, the Company is required to maintain a minimum investment in FHLB capital stock determined by the board of directors of the FHLB. The minimum investment requirements can increase in the event the Company increases its total asset size or borrowings with the FHLB. Shares cannot be purchased or sold except between the FHLB and its members at the $100 per share par value. The Company held $6.7 million and $6.2 million of FHLB stock at September 30, 2021 and December 31, 2020, respectively. The carrying amounts of these investments are reasonable estimates of fair value because the securities are restricted to member banks and do not have a readily determinable market value. Based on management’s analysis of the FHLB’s financial condition and certain qualitative factors, management determined that the FHLB stock was not impaired at September 30, 2021 and December 31, 2020. On July 29, 2021, FHLB announced a cash dividend for the second quarter of 2021 at an annualized dividend rate of 6.00%, which was paid on August 10, 2021. For the three and nine months ended September 30, 2021, cash dividends received on FHLB capital stock in the amount of $0.1 million and $0.3 million, respectively, were recorded as non-interest income on the consolidated statements of income.

Loans and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Loans and Allowance for Loan Losses

Note 5: Loans and Allowance for Loan Losses

The Company’s loan portfolio is its largest class of earning assets and typically provides higher yields than other types of earning assets. Associated with the higher yields is an inherent amount of credit risk which the Company attempts to mitigate with strong underwriting. As of September 30, 2021 and December 31, 2020, the carrying value of total loans held for investment amounted to $1.7 billion and $1.5 billion, respectively. The following table presents the balance of each major product type within the Company’s portfolio as of the dates indicated.

Schedule of Loan Portfolio

(in thousands)	September 30, 2021		December 31, 2020
Real estate:
Commercial	$	1,317,060	$	1,002,497
Commercial land and development		15,726		10,600
Commercial construction		47,511		91,760
Residential construction		8,438		11,914
Residential		29,354		30,431
Farmland		55,077		50,164
Commercial:
Secured		137,165		138,676
Unsecured		21,655		17,526
Paycheck Protection Program (“PPP”)		61,499		147,965
Consumer and other		13,528		4,921
Subtotal		1,707,013		1,506,454
Less: Net deferred loan fees		2,297		3,295
Less: Allowance for loan losses		21,848		22,189
Total loans, net	$	1,682,868	$	1,480,970

Underwriting

Commercial loans: Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Company’s management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Real estate loans: Real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected than other loans by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography, and risk grade criteria.

Construction loans: With respect to construction loans that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the ultimate success of the project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property, or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are generally considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing.

Residential real estate loans: Residential real estate loans are underwritten based upon the borrower’s income, credit history, and collateral. To monitor and manage residential loan risk, policies and procedures are developed and modified, as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Underwriting standards for home loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage, collection remedies, the number of such loans a borrower can have at one time, and documentation requirements.

Farmland loans: Farmland loans are generally made to producers and processors of crops and livestock. Repayment is primarily from the sale of an agricultural product or service. Farmland loans are secured by real property and are susceptible to changes in market demand for specific commodities. This may be exacerbated by, among other things, industry changes, changes in the individual financial capacity of the business owner, general economic conditions, and changes in business cycles, as well as adverse weather conditions.

Consumer loans: The Company purchased consumer loans underwritten utilizing credit scoring analysis to supplement the underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage, collection remedies, the number of such loans a borrower can have at one time, and documentation requirements.

Credit Quality Indicators

The Company has established a loan risk rating system to measure and monitor the quality of the loan portfolio. All loans are assigned a risk rating from the inception of the loan until the loan is paid off. The primary loan grades are as follows:

Loans rated pass: These are loans to borrowers with satisfactory financial support, repayment capacity, and credit strength. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history, and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Company’s policy regarding debt service coverage ratios. These borrowers are capable of sustaining normal economic, market, or operational setbacks without significant financial impacts. Financial ratios and trends are acceptable. Negative external industry factors are generally not present. The loan may be secured, unsecured, or supported by non-real estate collateral for which the value is more difficult to determine and/or marketability is more uncertain.

Loans rated watch: These are loans which have deficient loan quality and potentially significant issues, but losses do not appear to be imminent, and the issues are expected to be temporary in nature. The significant issues are typically: (a) a history of losses or events that threaten the borrower’s viability, (b) a property with significant depreciation and/or marketability concerns, or (c) poor or deteriorating credit, occasional late payments, and/or limited reserves but loan is generally kept current. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Loans rated substandard: These are loans which are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged (if any). Loans so classified exhibit a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected. The substandard loan category includes loans that management has determined not to be impaired, as well as loans that are impaired.

Loans rated doubtful: These are loans for which the collection or liquidation of the entire debt is highly questionable or improbable. Typically, the possibility of loss is extremely high. The losses on these loans are deferred until all pending factors have been addressed.

The following table summarizes the credit quality indicators related to the Company’s loans by class as of September 30, 2021:

Schedule of Loan by credit quality

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	1,266,349	$	15,223	$	35,488	$	—	$	1,317,060
Commercial land and development		15,726		—		—		—		15,726
Commercial construction		41,611		5,900		—		—		47,511
Residential construction		8,438		—		—		—		8,438
Residential		29,175		—		179		—		29,354
Farmland		55,077		—		—		—		55,077

Commercial:
Secured		136,011		—		1,154		—		137,165
Unsecured		21,655		—		—		—		21,655
PPP		61,499		—		—		—		61,499

Consumer		13,528		—		—		—		13,528

Total loans	$	1,649,069	$	21,123	$	36,821	$	—	$	1,707,013

The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2020:

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	950,118	$	16,836	$	35,543	$	—	$	1,002,497
Commercial land and development		10,600		—		—		—		10,600
Commercial construction		85,860		5,900		—		—		91,760
Residential construction		11,914		—		—		—		11,914
Residential		30,248		—		183		—		30,431
Farmland		50,164		—		—		—		50,164

Commercial:
Secured		136,992		1,552		132		—		138,676
Unsecured		17,526		—		—		—		17,526
PPP		147,965		—		—		—		147,965

Consumer		4,921		—		—		—		4,921

Total loans	$	1,446,308	$	24,288	$	35,858	$	—	$	1,506,454

Management regularly reviews the Company’s loans for accuracy of risk grades whenever new information is received. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk, and complexity. In addition, investor commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. Management monitors construction loans monthly and reviews other consumer loans based on delinquency. Management also reviews loans graded “watch” or worse, regardless of loan type, no less than quarterly.

The age analysis of past due loans by class as of September 30, 2021 consisted of the following:


	Past Due
(in thousands)	30-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
Real estate:
Commercial	$	—	$	—	$	—	$	1,317,060	$	1,317,060
Commercial land and development		—		—		—		15,726		15,726
Commercial construction		—		—		—		47,511		47,511
Residential construction		—		—		—		8,438		8,438
Residential		—		—		—		29,354		29,354
Farmland		—		—		—		55,077		55,077

Commercial:
Secured		—		—		—		137,165		137,165
Unsecured		—		—		—		21,655		21,655
PPP		—		—		—		61,499		61,499

Consumer and other		286		—		286		13,242		13,528

Total loans	$	286	$	—	$	286	$	1,706,727	$	1,707,013

There were 14 loans with balances totaling $0.1 million between 60-89 days past due, but no loans greater than 90 days past due and still accruing as of September 30, 2021.

The age analysis of past due loans by class as of December 31, 2020 consisted of the following:


	Past Due
(in thousands)	30-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
Real estate:
Commercial	$	—	$	—	$	—	$	1,002,497	$	1,002,497
Commercial land and development		—		—		—		10,600		10,600
Commercial construction		—		—		—		91,760		91,760
Residential construction		—		—		—		11,914		11,914
Residential		—		—		—		30,431		30,431
Farmland		—		—		—		50,164		50,164

Commercial:
Secured		—		—		—		138,676		138,676
Unsecured		—		—		—		17,526		17,526
PPP		—		—		—		147,965		147,965

Consumer and other		137		—		137		4,784		4,921

Total loans	$	137	$	—	$	137	$	1,506,317	$	1,506,454

There were no loans between 60-89 days past due nor any loans greater than 90 days past due and still accruing as of December 31, 2020.

Impaired Loans

Information related to impaired loans as of September 30, 2021 and December 31, 2020 consisted of the following:

(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
September 30, 2021
Commercial real estate	$	126	$	126	$	—	$	132	$	—
Residential real estate		179		179		—		181		—
Commercial secured		252		252		134		265		—
Total impaired loans	$	557	$	557	$	134	$	578	$	—
December 31, 2020
Commercial real estate	$	137	$	137	$	—	$	69	$	—
Residential real estate		183		183		—		92		—
Commercial secured		132		132		—		65		—
Total impaired loans	$	452	$	452	$	—	$	226	$	—

No collateral dependent loans were in process of foreclosure at September 30, 2021 or December 31, 2020. In addition, the weighted average loan-to-value of impaired, collateral dependent loans was approximately 42.99% at September 30, 2021 and 50.51% at December 31, 2020.

Non-accrual loans, segregated by class, are as follows as of September 30, 2021 and December 31, 2020:

(in thousands)	September 30, 2021		December 31, 2020
Real estate:
Commercial	$	126	$	137
Residential		179		183
Commercial secured		252		132
Total non-accrual loans	$	557	$	452

The amount of foregone interest income related to non-accrual loans was $8,193 for the three months ended September 30, 2021 and $21,773 for the nine months ended September 30, 2021, compared to $20,287 and $38,151 for the three and nine months ended September 30, 2020, respectively.

Troubled Debt Restructuring

The Company’s loan portfolio includes certain loans that have been modified in a troubled debt restructuring (“TDR”), which are loans for which concessions in terms have been granted because of the borrowers’ financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are placed on non-accrual status at the time of restructure and may only be returned to accruing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

When a loan is modified, it is measured based upon the present value of future cash flows discounted at the contractual interest rate of the original loan agreement or the fair value of collateral less selling costs if the loan is collateral dependent. If the value of the modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance or a charge-off of the loan.

There were no loans outstanding with a TDR designation at September 30, 2021 or December 31, 2020. At September 30, 2020, there was one loan outstanding with a TDR designation.

Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as subsequently amended by the Consolidated Appropriations Act, 2021, provided TDR relief for borrowers affected by the COVID-19 pandemic. Specifically, the CARES Act, as amended, specified that to be eligible not to be considered a TDR, a loan modification must be (1) related to the COVID-19 pandemic; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the federal national emergency, or (b) January 1, 2022. In accordance with section 4013 of the CARES Act, the Company elected to apply the temporary accounting relief provisions for loan modifications that met certain criteria, which would otherwise be designated TDRs under existing GAAP. As of September 30, 2021, eight borrowing relationships with eight loans totaling $12.2 million were continuing to benefit from payment relief. The Company accrues and recognizes interest income on loans under payment relief based on the original contractual interest rates. When payments resume at the end of the relief period, the payments will generally be applied to accrued interest due until accrued interest is fully paid.

The following table discloses activity in the allowance for loan losses for the periods presented.


	Real Estate																	Commercial
(in thousands)	Comml		Comml Land and Devel			Comml Const			Resid Const			Resid			Farm- land			Secured			Unsec		PPP		Consu			Unal			Total
Three months ended September 30, 2021
Beginning balance	$	10,108	$	75		$	491		$	46		$	188		$	594		$	9,194		$	209	$	—	$	484		$	764		$	22,153
Charge-offs		—		—			—			—			—			—			(347	)		—		—		(85	)		—			(432	)
Recoveries		—		—			—			—			—			—			84			—		—		43			—			127
Provision (recapture)		1,587		37			(148	)		14			19			72			(1,537	)		9		—		196			(249	)		—
Ending balance	$	11,695	$	112		$	343		$	60		$	207		$	666		$	7,394		$	218	$	—	$	638		$	515		$	21,848
Three months ended September 30, 2020
Beginning balance	$	7,501	$	111		$	961		$	115		$	218		$	881		$	7,086		$	119	$	—	$	876		$	37		$	17,905
Charge-offs		—		—			—			—			—			—			(280	)		—		—		—			—			(280	)
Recoveries		—		—			—			—			—			—			31			—		—		46			—			77
Provision (recapture)		549		(1	)		(228	)		(1	)		(14	)		(377	)		1,940			11		—		(185	)		156			1,850
Ending balance	$	8,050	$	110		$	733		$	114		$	204		$	504		$	8,777		$	130	$	—	$	737		$	193		$	19,552

Nine months ended September 30, 2021
Beginning balance	$	9,358	$	77		$	821		$	87		$	220		$	615		$	9,476		$	179	$	—	$	632		$	724		$	22,189
Charge-offs		—		—			—			—			—			—			(786	)		—		—		(157	)		—			(943	)
Recoveries		—		—			—			—			—			—			219			—		—		184			—			403
Provision (recapture)		2,337		35			(478	)		(27	)		(13	)		51			(1,515	)		39		—		(21	)		(209	)		199
Ending balance	$	11,695	$	112		$	343		$	60		$	207		$	666		$	7,394		$	218	$	—	$	638		$	515		$	21,848
Nine months ended September 30, 2020
Beginning balance	$	6,331	$	109		$	661		$	116		$	224		$	1,382		$	4,976		$	88	$	—	$	601		$	427		$	14,915
Charge-offs		—		—			—			—			—			—			(1,217	)		—		—		(486	)		—			(1,703	)
Recoveries		—		—			—			—			90			—			147			—		—		102			—			339
Provision (recapture)		1,719		1			72			(2	)		(110	)		(878	)		4,871			42		—		520			(234	)		6,001
Ending balance	$	8,050	$	110		$	733		$	114		$	204		$	504		$	8,777		$	130	$	—	$	737		$	193		$	19,552

The following table summarizes the allocation of the allowance for loan losses by impairment methodology for the periods presented.


	Real Estate												Commercial
(in thousands)	Comml		Comml Land and Devel		Comml Const		Resid Const		Resid		Farm- land		Secured		Unsec		PPP		Consu		Unal		Total
As of September 30, 2021:
Ending allowance balance allocated to:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	134	$	—	$	—	$	—	$	—	$	134
Loans collectively evaluated for impairment		11,695		112		343		60		207		666		7,260		218		—		638		515		21,714
Ending balance	$	11,695	$	112	$	343	$	60	$	207	$	666	$	7,394	$	218	$	—	$	638	$	515	$	21,848
Loans:
Ending balance individually evaluated for impairment	$	126	$	—	$	—	$	—	$	179	$	—	$	252	$	—	$	—	$	—	$	—	$	557
Ending balance collectively evaluated for impairment		1,316,934		15,726		47,511		8,438		29,175		55,077		136,913		21,655		61,499		13,528		—		1,706,456
Ending balance	$	1,317,060	$	15,726	$	47,511	$	8,438	$	29,354	$	55,077	$	137,165	$	21,655	$	61,499	$	13,528	$	—	$	1,707,013

As of December 31, 2020:
Ending allowance balance allocated to:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment		9,358		77		821		87		220		615		9,476		179		—		632		724		22,189
Ending balance	$	9,358	$	77	$	821	$	87	$	220	$	615	$	9,476	$	179	$	—	$	632	$	724	$	22,189
Loans:
Ending balance individually evaluated for impairment	$	137	$	—	$	—	$	—	$	183	$	—	$	132	$	—	$	—	$	—	$	—	$	452
Ending balance collectively evaluated for impairment		1,002,360		10,600		91,760		11,914		30,248		50,164		138,544		17,526		147,965		4,921		—		1,506,002
Ending balance	$	1,002,497	$	10,600	$	91,760	$	11,914	$	30,431	$	50,164	$	138,676	$	17,526	$	147,965	$	4,921	$	—	$	1,506,454

As of September 30, 2020:
Ending allowance balance allocated to:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	63	$	—	$	—	$	15	$	—	$	78
Loans collectively evaluated for impairment		8,050		110		733		114		204		504		8,714		130		—		722		193		19,474
Ending balance	$	8,050	$	110	$	733	$	114	$	204	$	504	$	8,777	$	130	$	—	$	737	$	193	$	19,552
Loans:
Ending balance: individually evaluated for impairment	$	911	$	—	$	—	$	—	$	186	$	—	$	370	$	—	$	—	$	15	$	—	$	1,482
Ending balance: collectively evaluated for impairment		948,689		15,485		97,344		16,034		28,604		52,352		126,424		12,933		252,790		5,767		—		1,556,422
Ending balance	$	949,600	$	15,485	$	97,344	$	16,034	$	28,790	$	52,352	$	126,794	$	12,933	$	252,790	$	5,782	$	—	$	1,557,904

Pledged Loans

The Company’s FHLB line of credit is secured under terms of a collateral agreement by a pledge of certain qualifying loans with unpaid principal balances of $713.3 million and $1.1 billion at September 30, 2021 and December 31, 2020, respectively. In addition, the Company pledges eligible Tenants in Common loans, which totaled $25.3 million and $61.6 million at September 30, 2021 and December 31, 2020, respectively, to secure its borrowing capacity with the Federal Reserve Bank of San Francisco. See Note 7, Long Term Debt and Other Borrowings, for further discussion of these borrowings.

Related Party Loans

The Company has, and expects to have in the future, banking transactions in the ordinary course of its business with directors, officers, principal shareholders, and their businesses or associates. In accordance with applicable regulations and Bank policies, these loans are granted on substantially the same terms, including interest rates and collateral on loans, as those prevailing at the same time for comparable transactions with persons not related to us. Likewise, these transactions do not involve more than the normal risk of collectability or present other unfavorable features. Loan commitment to insiders and affiliates, net of cash collateral, totaled $9.6 million at September 30, 2021 and $1.6 million at December 31, 2020.

Interest-Bearing Deposits

9 Months Ended

Sep. 30, 2021

Interest-bearing Deposits

Interest-Bearing Deposits

Note 6: Interest-Bearing Deposits

Interest-bearing deposits consisted of the following as of September 30, 2021 and December 31, 2020:

Schedule of Interest-bearing deposits.

(in thousands)	September 30, 2021		December 31, 2020
Savings	$	78,955	$	49,714
Money market		984,155		844,445
Interest checking accounts		155,881		146,553
Time, $250 or more		27,870		7,568
Other time		26,065		40,034
Total interest-bearing deposits	$	1,272,926	$	1,088,314

Time deposits totaled $53.9 million and $47.6 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, scheduled maturities of time deposits for the next five years were as follows:

Schedule of Maturities of Time Deposits

(in thousands)	September 30, 2021
Year
2021	$	52,970
2022		574
2023		391
2024		—
2025		—
Total time deposits	$	53,935

Total deposits include deposits offered through the IntraFi Network (formerly Promontory Interfinancial Network) that are comprised of Certificate of Deposit Account Registry Service® (“CDARS”) balances included in time deposits and Insured Cash Sweep® (“ICS”) balances included in money market deposits. Through this network the Company offers customers access to Federal Deposit Insurance Corporation (“FDIC”) insured deposit products in aggregate amounts exceeding current insurance limits. When funds are deposited through CDARS and ICS on behalf of a customer, the Company has the option of receiving matching deposits through the network’s reciprocal deposit program or placing deposits “one-way,” for which the Company receives no matching deposits. The Company considers the reciprocal deposits to be in-market deposits as distinguished from traditional out-of-market brokered deposits. The following table shows the composition of network deposits for September 30, 2021 and December 31, 2020. There were no one-way deposits at September 30, 2021 and December 30, 2020. The composition of network deposits as of September 30, 2021 and December 31, 2020 was as follows:

(in thousands)	September 30, 2021		December 31, 2020
CDARS	$	22,405	$	35,534
ICS		363,827		266,519
Total network deposits	$	386,232	$	302,053

As of September 30, 2021 and December 31, 2020, deposits from related parties (directors, executive officers, and principal shareholders) totaled $60.7 million and $42.5 million, respectively.

Interest expense recognized on interest-bearing deposits for periods ended September 30, 2021, and 2020 consisted of the following:


	For the three months ended				For the nine months ended
(in thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Savings	$	19	$	18	$	53	$	80
Money market		390		1,476		1,447		4,883
Interest checking accounts		37		96		113		315
Time, $250 or more		11		62		26		780
Other time		23		112		108		332
Total interest expense on interest-bearing deposits	$	480	$	1,764	$	1,747	$	6,390

Long Term Debt and Other Borrowings

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Long Term Debt and Other Borrowings

Note 7: Long Term Debt and Other Borrowings

Subordinated notes: On November 8, 2019, the Company completed a private placement of $3.75 million of fixed-to-floating rate subordinated notes to certain qualified investors. All of the debt was purchased by four existing members of the board of directors or their affiliates. The notes were used for general corporate purposes, capital management, and to support future growth. The subordinated notes have a maturity date of September 15, 2027 and bear interest, payable semi-annually, at the rate of 5.50% per annum until September 15, 2022. On that date, the interest rate will be adjusted to float at a rate equal to the three-month LIBOR rate plus 354.4 basis points (3.66% as of September 30, 2021) until maturity. The notes include a right of prepayment, on or after September 15, 2022 and, in certain limited circumstances, before that date. The indebtedness evidenced by the subordinated notes, including principal and interest, is unsecured and subordinate and junior in right to payment to general and secured creditors and depositors of the Company.

The Company has $25.0 million in principal of fixed-to-floating rate subordinated notes to certain qualified investors, of which $8.0 million is owned by an entity that is controlled by a member of the board of directors and three principal shareholders. The notes were used for general corporate purposes, capital management, and to support future growth. The subordinated notes have a maturity date of September 15, 2027 and bear interest, payable semi-annually, at the rate of 6.00% per annum until September 15, 2022. On that date, the interest rate will be adjusted to float at a rate equal to the three-month LIBOR rate plus 404.4 basis points (4.16% as of September 30, 2021) until maturity. The notes include a right of prepayment, on or after September 15, 2022 and, in certain limited circumstances, before that date. The indebtedness evidenced by the subordinated notes, including principal and interest, is unsecured and subordinate and junior in right to payment to general and secured creditors and depositors of the Company.

The subordinated notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. Debt issuance costs incurred in conjunction with the notes were $0.6 million, of which $0.3 million has been amortized through September 30, 2021. The Company reflects debt issuance costs as a direct deduction from the face of the note. The debt issuance costs are amortized into interest expense through the maturity period. At September 30, 2021 and December 31, 2020, the Company’s subordinated debt outstanding was $28.4 million and $28.3 million, respectively.

Other borrowings: In 2005, and through an amendment in 2014, the Company entered into an agreement with the FHLB which granted the FHLB a blanket lien on all loans receivable (except for construction and agricultural loans) as collateral for a borrowing line. Based on the dollar volume of qualifying loan collateral, the Company had a total financing availability of $523.3 million at September 30, 2021 and $519.3 million at December 31, 2020. At September 30, 2021 and December 31, 2020, the Company had no outstanding borrowings. As of September 30, 2021 and December 31, 2020, the Company had letters of credit (“LC”) issued on its behalf totaling $319.5 million and $293.5 million, respectively, as discussed below.

As of September 30, 2021, LCs totaling $29.5 million were pledged to secure State of California deposits and $290.0 million were pledged to secure local agency deposits. As of December 31, 2020, LCs totaling $13.5 million were pledged to secure State of California deposits and $280.0 million were pledged to secure local agency deposits. The LCs issued reduced the Company’s available borrowing capacity to $203.8 million and $284.8 million as of September 30, 2021 and December 31, 2020, respectively.

At December 31, 2020, the Company had three unsecured federal funds lines of credit totaling $75.0 million with three of its correspondent banks, respectively. During the quarter ended September 30, 2021, the Company entered into two new unsecured federal funds lines of credit, totaling $25.0 million and $50.0 million, respectively. As a result, at September 30, 2021, the Company had five unsecured federal funds lines of credit totaling $150.0 million with five of its correspondent banks, respectively. There were no amounts outstanding at September 30, 2021 and December 31, 2020.

At September 30, 2021 and December 31, 2020, the Company had the ability to borrow from the Federal Reserve Discount Window. At September 30, 2021 and December 31, 2020, the borrowing capacity under this arrangement was $14.8 million and $25.9 million, respectively. There were no amounts outstanding at September 30, 2021 and December 31, 2020. The borrowing line is secured by liens on the Company’s construction and agricultural loan portfolios.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 8: Income Taxes

The Company terminated its status as a Subchapter S corporation as of May 5, 2021, in connection with the IPO and became a taxable C Corporation. Prior to that date, as an S Corporation, the Company had no U.S. federal income tax expense. As such, any periods prior to May 5, 2021 will only reflect an effective state income tax rate and corresponding tax expense. Pro forma net income is calculated by adding back S Corporation tax to net income and using a combined C Corporation effective tax rate for federal and state income taxes of 29.56%. For the 2021 periods presented below, the tax rate reflects the actual effective tax rate for the three and nine months ended September 30, 2021. The effective tax rate for the nine months ended September 30, 2021 excludes the effect of the discrete deferred tax adjustment of $4.6 million, discussed in detail below, which offset the provision for income taxes. The following reconciliation table provides a detailed calculation of pro forma provision for income taxes:


	For the three months ended						For the nine months ended
(in thousands)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net income before provision for income taxes	$	13,296		$	9,678		$	34,518		$	27,434
Effective/pro forma tax rate		17.07	%		29.56	%		23.25	%		29.56	%
Pro forma provision for income taxes	$	2,270		$	2,861		$	8,024		$	8,109

In conjunction with the termination of the Subchapter S corporation status, the C Corporation deferred tax assets and liabilities were estimated for future tax consequences attributable to differences between the financial statement carrying amounts of the Company’s existing assets and liabilities and their respective tax bases. The deferred tax assets and liabilities were measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of the change in tax rates resulting from becoming a C Corporation was recognized as a net deferred tax asset of $5.4 million and a reduction to the provision for income taxes of $4.6 million during the nine months ended September 30, 2021.

The provision for income tax for the three and nine months ended September 30, 2021 and 2020 differs from the statutory federal rate of 21.00% due to the following items, which relate primarily to the Company’s conversion from an S Corporation to a C Corporation:


	For the three months ended						For the nine months ended
(in thousands)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Statutory U.S. federal income tax	$	2,792		$	2,032		$	7,249		$	5,761
Increase (decrease) resulting from:
Benefit of S Corporation status		(964	)		(2,032	)		(3,968	)		(5,761	)
State taxes		1,138			341			2,963			968
C Corp conversion federal rate change		—			—			1,484			—
Deferred tax asset adjustment		—			—			(4,638	)		—
Other		(696	)		—			296			—
Provision for income taxes	$	2,270		$	341		$	3,386		$	968

For the three and nine months ended September 30, 2021, the Company’s effective tax rate differed from the statutory California tax rate of 3.50% used prior to May 5, 2021 and the statutory federal and state tax rate, net of federal benefit, of 29.56% used May 5, 2021 and after, as the effective tax rate primarily represents the weighted average rate between the S Corporation tax rate of 3.50% and the C Corporation tax rate of 29.56% based on the number of days the Company was each type of corporation during 2021.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Shareholders’ Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Shareholders’ Equity

Note 9: Shareholders’ Equity

Dividends

On July 6, 2021, the board of directors declared a $0.15 per common share dividend, totaling $2.6 million.

Stock-Based Incentive Arrangement

The Company’s stock-based compensation consists of RSAs issued under its historical stock-based incentive arrangement (the “Historical Incentive Plan”) and RSAs issued under the Five Star Bancorp 2021 Equity Incentive Plan (the “Equity Incentive Plan”). The Historical Incentive Plan consisted of RSAs for certain executive officers of the Company including the Chief Executive Officer, Chief Operating Officer, Chief Credit Officer, Chief Regulatory Officer, and Chief Banking Officer. The arrangement, which may be renewed annually at the sole discretion of the board of directors, provides that these executive officers will receive shares of restricted common stock of the Company, with the number of shares granted based upon achieving certain performance objectives, that vest over three years. These objectives include, but are not limited to, net income adjusted for the provision for loan losses, deposit growth, efficiency ratio, net interest margin, and asset quality. Compensation expense is recognized over the service period, which is equal to the vesting period of the shares based on the fair value of the shares at issue date.

In connection with its IPO in May 2021, the Company granted RSAs under the Equity Incentive Plan to employees, officers, executives, and non-employee directors. Shares granted to non-employee directors vested immediately upon grant, while shares granted to employees, officers, and executives vest ratably over three, five, or seven years (as defined in the respective agreements). All RSAs were granted at the fair value of common stock at the time of the award. The RSAs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the service period.

The Company granted no restricted shares during the three months ended September 30, 2021 and 2020, and 173,207 and 8,148 restricted shares during the nine months ended September 30, 2021 and 2020, respectively. In addition, 1,700 and no restricted shares were forfeited during the three months ended September 30, 2021 and 2020, respectively, and 4,422 and no restricted shares were forfeited during the nine months ended September 30, 2021 and 2020, respectively. Non-cash stock compensation expense recognized for the three months ended September 30, 2021 and 2020 was $0.2 million and $0.4 million, respectively. Non-cash stock compensation expense recognized for the nine months ended September 30, 2021 and 2020 was $1.2 million and $0.5 million, respectively.

At September 30, 2021 and 2020, respectively, there were 127,851 and 11,568 unvested restricted shares. As of September 30, 2021, there was approximately $2.4 million of unrecognized compensation expense related to the 127,851 unvested restricted shares. The holders of unvested RSAs are entitled to dividends on the same per-share ratio as holders of common stock. Tax benefits for dividends paid on unvested RSAs are recorded as tax benefits in the consolidated statements of income with a corresponding decrease to current taxes payable. The impact of tax benefits for dividends paid on unvested restricted stock on the Company’s consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 was immaterial.

The following table summarizes information about unvested restricted shares:

Schedule of Restricted Shares

	For the three months ended September 30,									For the nine months ended September 30,
	2021					2020				2021					2020
	Shares			Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Beginning of the period balance		129,551		$	19.95		11,568	$	21.25		11,568		$	21.25		15,794		$	21.03
Shares granted		—			—		—		—		173,207			19.89		8,148			21.00
Shares vested		—			—		—		—		(52,502	)		20.10		(12,374	)		20.81
Shares forfeited		(1,700	)		20.00		—		—		(4,422	)		19.31		—			—
End of the period balance		127,851			19.95		11,568		21.25		127,851			19.95		11,568			21.25

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10: Commitments and Contingencies

Financial Instruments with Off-Balance Sheet Risk

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Substantially all of these commitments are at variable interest rates, based on an index, and have fixed expiration dates.

Off-balance sheet risk to loan loss exists up to the face amount of these instruments, although material losses are not anticipated. The Company uses the same credit policies in making commitments to originate loans and lines of credit as it does for on-balance sheet instruments, including obtaining collateral at exercise of the commitment. The contractual amount of unfunded loan commitments and standby letters of credit not reflected in the consolidated balance sheets are as follows:

(in thousands)	September 30, 2021		December 31, 2020
Commercial lines of credit	$	118,902	$	107,231
Undisbursed construction loans		30,481		50,442
Undisbursed commercial real estate loans		40,653		39,946
Agricultural lines of credit		6,948		11,553
Undisbursed agricultural real estate loans		3,426		5,945
Other		3,214		920
Total commitments and standby letters of credit	$	203,624	$	216,037

The Company records an allowance for loan losses on unfunded loan commitments at the consolidated balance sheet date based on estimates of the probability that these commitments will be drawn upon according to historical utilization experience of the different types of commitments and historical loss rates determined for pooled funded loans. The allowance for loan losses on unfunded commitments totaled $0.1 million as of September 30, 2021 and December 31, 2020, which is recorded in interest payable and other liabilities in the consolidated balance sheets.

Concentrations of credit risk: The Company grants real estate mortgage, real estate construction, commercial and consumer loans to customers primarily in Northern California. Although the Company has a diversified loan portfolio, a substantial portion is secured by commercial and residential real estate.

In management’s judgment, a concentration of loans exists in real estate related loans, which represented approximately 86.04% of the Company’s loan portfolio at September 30, 2021 and 79.23% of the Company’s loan portfolio at December 31, 2020. Although management believes such concentrations have no more than the normal risk of collectability, a substantial decline in the economy in general, or a decline in real estate values in the Company’s primary market areas in particular, could have an adverse impact on the collectability of these loans. Personal and business incomes represent the primary source of repayment for the majority of these loans.

Deposit concentrations: At September 30, 2021, the Company had 64 deposit relationships that exceeded $5.0 million each, totaling $1.1 billion, or approximately 51.32% of total deposits. The Company’s largest single deposit relationship at September 30, 2021 totaled $190.2 million, or approximately 8.77% of total deposits. Management maintains the Company’s liquidity position and lines of credit with correspondent banks to mitigate the risk of large withdrawals by this group of large depositors.

Contingencies: The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company.

Correspondent banking agreements: The Company maintains funds on deposit with other FDIC-insured financial institutions under correspondent banking agreements. Uninsured deposits through these agreements totaled $250.1 million and $118.0 million at September 30, 2021 and December 31, 2020, respectively.

Leases

The Company leases office space for its banking operations under non-cancelable operating leases of various terms. The leases expire at dates through 2032 and provide for renewal options from zero to five years. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties. One of the leases provides for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, while the remaining leases include pre-defined rental increases over the term of the lease.

The Company has a sublease agreement for space adjacent to the Redding location. The sublease has renewal terms extended to December 31, 2021.

The Company leases its Sacramento loan production office from a partnership comprised of some of the Company’s shareholders and certain members of the board of directors. The Sacramento loan production office lease extends through April 2023. Additionally, the Company leased its Natomas branch from the same partnership of related parties until July 13, 2021, at which time ownership of the property was transferred to an unrelated third-party landlord. Rent expense paid to the partnership was insignificant for the three months ended September 30, 2021, $0.1 million for the nine months ended September 30, 2021, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2020, respectively, under these leases.

The following table shows the future minimum lease payments and weighted average remaining lease terms under the Company’s operating lease arrangements as of September 30, 2021.

(in thousands)	September 30, 2021
2021	$	261
2022		1,078
2023		1,009
2024		984
2025		768
Thereafter		1,755
Total	$	5,855
Weighted average remaining term (in years)		4.90

Litigation Matters

The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company.

Derivative Financial Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Hedging Activities

Note 11: Derivative Financial Instruments and Hedging Activities

The Company has a lending arrangement with one of its borrowers that contains a structured prepayment provision and interest rate swap, which for accounting purposes is considered a derivative. The transaction between the Company and the borrower in effect is a floating rate loan combined with a pay floating/receive fixed interest rate swap. To offset the interest rate risk of this lending arrangement, management entered into a separate interest rate swap with a separate counterparty that mirrors the interest rate swap with the borrower. The net economic effect of the arrangement for the borrower is a fixed rate loan of 7.81%, and for the Company is a floating rate loan of LIBOR plus 2.35%, adjusting monthly. The loan balance as of September 30, 2021 and December 31, 2020 was $0.8 million, with monthly amortization through its maturity in April 2027. The notional amounts of the two interest rate swaps are the same as the loan balance, and they amortize and mature similarly. The notional amounts of the interest rate swap transactions do not represent amounts exchanged by the parties. The amounts exchanged are determined by reference to the notional amounts and the other terms of the individual interest rate swap agreements. The two derivatives are carried at fair value and $0.1 million and $0.1 million were reported in other assets at September 30, 2021 and December 31, 2020, respectively. The related liabilities of $0.1 million and $0.1 million were reported in other liabilities at September 30, 2021 and December 31, 2020, respectively.

Subsequent Events

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 12: Subsequent Events

On October 5, 2021, the board of directors declared a $0.15 per common share dividend, totaling $2.6 million.

Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Principles of Consolidation

Nature of Operations and Principles of Consolidation

Basis of Financial Statement Presentation and Consolidation

Basis of Financial Statement Presentation and Consolidation

The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry.

Use of Estimates

Use of Estimates

Earnings Per Share (“EPS”)

Earnings Per Share (“EPS”)

Schedule of Earning Per Share


	For the three months ended				For the nine months ended
(in thousands, except per share data)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income	$	11,026	$	9,337	$	31,132	$	26,466
Weighted average basic common shares outstanding		17,095,957		9,902,952		14,256,993		9,747,896
Add: Dilutive effects of assumed vesting of restricted stock		27,225		—		15,538		—
Weighted average diluted common shares outstanding		17,123,182		9,902,952		14,272,531		9,747,896
Income per common share:
Basic EPS	$	0.64	$	0.94	$	2.18	$	2.72
Diluted EPS	$	0.64	$	0.94	$	2.18	$	2.72

Schedule of Pro forma Earning Per Share


	For the three months ended						For the nine months ended
(in thousands, except per share data)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net income before provision for income taxes - GAAP	$	13,296		$	9,678		$	34,518		$	27,434
Actual/pro forma provision for income taxes		(2,270	)		(2,861	)		(8,024	)		(8,109	)
Actual/pro forma net income		11,026			6,817			26,494			19,325
Weighted average basic common shares outstanding		17,095,957			9,902,952			14,256,993			9,747,896
Add: Dilutive effects of assumed vesting of restricted stock		27,225			—			15,538			—
Weighted average diluted common shares outstanding		17,123,182			9,902,952			14,272,531			9,747,896
Income per common share:
Basic EPS	$	0.64		$	0.69		$	1.86		$	1.98
Diluted EPS	$	0.64		$	0.69		$	1.86		$	1.98

Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Earning Per Share

Basis of Presentation


	For the three months ended				For the nine months ended
(in thousands, except per share data)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income	$	11,026	$	9,337	$	31,132	$	26,466
Weighted average basic common shares outstanding		17,095,957		9,902,952		14,256,993		9,747,896
Add: Dilutive effects of assumed vesting of restricted stock		27,225		—		15,538		—
Weighted average diluted common shares outstanding		17,123,182		9,902,952		14,272,531		9,747,896
Income per common share:
Basic EPS	$	0.64	$	0.94	$	2.18	$	2.72
Diluted EPS	$	0.64	$	0.94	$	2.18	$	2.72

Schedule of Pro forma Earning Per Share

Basis of Presentation (Details 2)


	For the three months ended						For the nine months ended
(in thousands, except per share data)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net income before provision for income taxes - GAAP	$	13,296		$	9,678		$	34,518		$	27,434
Actual/pro forma provision for income taxes		(2,270	)		(2,861	)		(8,024	)		(8,109	)
Actual/pro forma net income		11,026			6,817			26,494			19,325
Weighted average basic common shares outstanding		17,095,957			9,902,952			14,256,993			9,747,896
Add: Dilutive effects of assumed vesting of restricted stock		27,225			—			15,538			—
Weighted average diluted common shares outstanding		17,123,182			9,902,952			14,272,531			9,747,896
Income per common share:
Basic EPS	$	0.64		$	0.69		$	1.86		$	1.98
Diluted EPS	$	0.64		$	0.69		$	1.86		$	1.98

Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities on Recurring Basis

The following table summarizes the Company’s assets and liabilities that were required to be recorded at fair value on a recurring basis.

Fair Value of Assets and Liabilities

(in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measurement Categories: Changes in Fair Value Recorded In¹
September 30, 2021
Assets:
Securities available-for-sale:
U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds	$	153,821	$	—	$	153,821	$	—		OCI
Derivatives – interest rate swap		108		—		108		—		NI
Liabilities:
Derivatives – interest rate swap		108		—		108		—		NI

December 31, 2020
Assets:
Securities available-for-sale:
U.S. government agencies, mortgage-backed securities, obligations of states and political subdivisions, and collateralized mortgage obligations	$	114,949	$	—	$	114,949	$	—		OCI
Derivatives – interest rate swap		149		—		149		—		NI
Liabilities:
Derivatives – interest rate swap		149		—		149	$	—		NI

Schedule of fair value estimates for financial instruments

Fair Value of Assets and Liabilities (Details 2)


	September 30, 2021						December 31, 2020
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy		Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets (recorded at amortized cost)
Cash and cash equivalents	$	530,832	$	530,832		Level 1	$	290,493	$	290,493		Level 1
Time deposits in banks		17,204		17,204		Level 1		23,705		23,705		Level 1
Securities available-for-sale		153,821		153,821		Level 2		114,949		114,949		Level 2
Securities held-to-maturity		4,955		5,211		Level 3		7,979		8,755		Level 3
Loans held for sale		5,267		5,507		Level 2		4,820		5,012		Level 2
Loans held for investment		1,682,868		1,689,036		Level 3		1,480,970		1,464,794		Level 3
Interest receivable		5,170		5,170		Level 2		5,422		5,422		Level 2
Financial liabilities (recorded at amortized cost)
Deposits		2,168,394		2,120,785		Level 2		1,784,001		1,785,944		Level 2
Interest payable		19		19		Level 2		75		75		Level 2
Subordinated notes		28,370		28,370		Level 3		28,320		28,320		Level 3

Investment Securities (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Securities Held-To-Maturity

A summary of the amortized cost and fair value related to securities held-to-maturity as of September 30, 2021 and December 31, 2020 is presented below.

Schedule of Securities Held-To-Maturity

Investment Securities

			Gross Unrealized
(in thousands)	Amortized Cost		Gains		(Losses)		Fair Value
September 30, 2021
Obligations of states and political subdivisions		4,955		256		—		5,211
Total held-to-maturity	$	4,955	$	256	$	—	$	5,211
December 31, 2020
Obligations of states and political subdivisions		7,979		776		—		8,755
Total held-to-maturity	$	7,979	$	776	$	—	$	8,755

Schedule of Securities Available-for-Sale

A summary of the amortized cost and fair value related to securities available-for-sale as of September 30, 2021 and December 31, 2020 is presented below.

Investment Securities (Details 2)

			Gross Unrealized
(in thousands)	Amortized Cost		Gains		(Losses)			Fair Value
September 30, 2021
U.S. government agencies	$	21,780	$	108	$	(234	)	$	21,654
Mortgage-backed securities		78,301		198		(572	)		77,927
Collateralized mortgage obligations		580		12		—			592
Obligations of states and political subdivisions		51,189		661		(197	)		51,653
Corporate bonds		2,000		—		(5	)		1,995
Total available-for-sale	$	153,850	$	979	$	(1,008	)	$	153,821
December 31, 2020
U.S. government agencies	$	32,069	$	111	$	(352	)	$	31,828
Mortgage-backed securities		23,601		338		(7	)		23,932
Collateralized mortgage obligations		748		21		—			769
Obligations of states and political subdivisions		57,137		1,291		(8	)		58,420
Total available-for-sale	$	113,555	$	1,761	$	(367	)	$	114,949

Schedule of Investment Securities by Contractual Maturity

Investment Securities (Details 3)

	September 30, 2021								December 31, 2020
	Held-to-Maturity				Available-for-Sale				Held-to-Maturity				Available-for-Sale
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	795	$	836	$	—	$	—	$	494	$	543	$	—	$	—
After one but within five years		2,700		2,840		508		528		2,143		2,351		1,141		1,206
After five years through ten years		1,460		1,535		4,488		4,610		2,755		3,023		8,340		8,599
After ten years		—		—		46,193		46,515		2,587		2,838		47,656		48,615

Investment securities not due at a single maturity date:
U.S. government agencies		—		—		21,780		21,654		—		—		32,069		31,828
Mortgage-backed securities		—		—		78,301		77,927		—		—		23,601		23,932
Collateralized mortgage obligations		—		—		580		592		—		—		748		769
Corporate bonds		—		—		2,000		1,995		—		—		—		—
Total	$	4,955	$	5,211	$	153,850	$	153,821	$	7,979	$	8,755	$	113,555	$	114,949

Schedule of Investment Securities Available-for-Sale Gross Realized Gain and Losses

Sales of investment securities and gross gains and losses are shown in the following table:

Investment Securities (Details 4)


	For the three months ended				For the nine months ended
(in thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Available-for-sale:
Sales proceeds	$	24,590	$	7,706	$	40,772	$	39,940
Gross realized gains		435		275		709		1,241

Pledged investment securities

Pledged investment securities are shown in the following table:

Investment Securities (Details 5)

(in thousands)	September 30, 2021		December 31, 2020
Pledged to the State of California:
Secure deposits of public funds and borrowings	$	68,050	$	52,897
Total pledged investment securities	$	68,050	$	52,897

Schedule of securities in a continuous unrealized loss position aggregated by investment category and length of time

Investment Securities (Details 6)


(in thousands)	< 12 continuous months					≥ 12 continuous months					Total securities in a loss position
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2021
U.S. government agencies	$	—	$	—		$	14,866	$	(234	)	$	14,866	$	(234	)
Mortgage-backed securities		56,020		(530	)		1,421		(42	)		57,441		(572	)
Obligations of states and political subdivisions		20,846		(184	)		1,063		(13	)		21,909		(197	)
Corporate bonds		995		(5	)		—		—			995		(5	)
Total temporarily impaired securities	$	77,861	$	(719	)	$	17,350	$	(289	)	$	95,211	$	(1,008	)

December 31, 2020
U.S. government agencies	$	10,800	$	(56	)	$	15,195	$	(296	)	$	25,995	$	(352	)
Mortgage-backed securities		1,786		(7	)		—		—			1,786		(7	)
Obligations of states and political subdivisions		3,922		(8	)		—		—			3,922		(8	)
Total temporarily impaired securities	$	16,508	$	(71	)	$	15,195	$	(296	)	$	31,703	$	(367	)

Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Loan Portfolio

Loans and Allowance for Loan Losses

(in thousands)	September 30, 2021		December 31, 2020
Real estate:
Commercial	$	1,317,060	$	1,002,497
Commercial land and development		15,726		10,600
Commercial construction		47,511		91,760
Residential construction		8,438		11,914
Residential		29,354		30,431
Farmland		55,077		50,164
Commercial:
Secured		137,165		138,676
Unsecured		21,655		17,526
Paycheck Protection Program (“PPP”)		61,499		147,965
Consumer and other		13,528		4,921
Subtotal		1,707,013		1,506,454
Less: Net deferred loan fees		2,297		3,295
Less: Allowance for loan losses		21,848		22,189
Total loans, net	$	1,682,868	$	1,480,970

Schedule of Loan by credit quality

The following table summarizes the credit quality indicators related to the Company’s loans by class as of September 30, 2021:

Schedule of Loan by credit quality

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	1,266,349	$	15,223	$	35,488	$	—	$	1,317,060
Commercial land and development		15,726		—		—		—		15,726
Commercial construction		41,611		5,900		—		—		47,511
Residential construction		8,438		—		—		—		8,438
Residential		29,175		—		179		—		29,354
Farmland		55,077		—		—		—		55,077

Commercial:
Secured		136,011		—		1,154		—		137,165
Unsecured		21,655		—		—		—		21,655
PPP		61,499		—		—		—		61,499

Consumer		13,528		—		—		—		13,528

Total loans	$	1,649,069	$	21,123	$	36,821	$	—	$	1,707,013

The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2020:

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	950,118	$	16,836	$	35,543	$	—	$	1,002,497
Commercial land and development		10,600		—		—		—		10,600
Commercial construction		85,860		5,900		—		—		91,760
Residential construction		11,914		—		—		—		11,914
Residential		30,248		—		183		—		30,431
Farmland		50,164		—		—		—		50,164

Commercial:
Secured		136,992		1,552		132		—		138,676
Unsecured		17,526		—		—		—		17,526
PPP		147,965		—		—		—		147,965

Consumer		4,921		—		—		—		4,921

Total loans	$	1,446,308	$	24,288	$	35,858	$	—	$	1,506,454

[custom:DisclosureLoansAndAllowanceForLoanLossesDetails2Abstract]

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	1,266,349	$	15,223	$	35,488	$	—	$	1,317,060
Commercial land and development		15,726		—		—		—		15,726
Commercial construction		41,611		5,900		—		—		47,511
Residential construction		8,438		—		—		—		8,438
Residential		29,175		—		179		—		29,354
Farmland		55,077		—		—		—		55,077

Commercial:
Secured		136,011		—		1,154		—		137,165
Unsecured		21,655		—		—		—		21,655
PPP		61,499		—		—		—		61,499

Consumer		13,528		—		—		—		13,528

Total loans	$	1,649,069	$	21,123	$	36,821	$	—	$	1,707,013

The following table summarizes the credit quality indicators related to the Company’s loans by class as of December 31, 2020:

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	950,118	$	16,836	$	35,543	$	—	$	1,002,497
Commercial land and development		10,600		—		—		—		10,600
Commercial construction		85,860		5,900		—		—		91,760
Residential construction		11,914		—		—		—		11,914
Residential		30,248		—		183		—		30,431
Farmland		50,164		—		—		—		50,164

Commercial:
Secured		136,992		1,552		132		—		138,676
Unsecured		17,526		—		—		—		17,526
PPP		147,965		—		—		—		147,965

Consumer		4,921		—		—		—		4,921

Total loans	$	1,446,308	$	24,288	$	35,858	$	—	$	1,506,454

Schedule of Age Analysis of Past Due Loan

The age analysis of past due loans by class as of September 30, 2021 consisted of the following:


	Past Due
(in thousands)	30-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
Real estate:
Commercial	$	—	$	—	$	—	$	1,317,060	$	1,317,060
Commercial land and development		—		—		—		15,726		15,726
Commercial construction		—		—		—		47,511		47,511
Residential construction		—		—		—		8,438		8,438
Residential		—		—		—		29,354		29,354
Farmland		—		—		—		55,077		55,077

Commercial:
Secured		—		—		—		137,165		137,165
Unsecured		—		—		—		21,655		21,655
PPP		—		—		—		61,499		61,499

Consumer and other		286		—		286		13,242		13,528

Total loans	$	286	$	—	$	286	$	1,706,727	$	1,707,013

There were 14 loans with balances totaling $0.1 million between 60-89 days past due, but no loans greater than 90 days past due and still accruing as of September 30, 2021.

The age analysis of past due loans by class as of December 31, 2020 consisted of the following:


	Past Due
(in thousands)	30-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
Real estate:
Commercial	$	—	$	—	$	—	$	1,002,497	$	1,002,497
Commercial land and development		—		—		—		10,600		10,600
Commercial construction		—		—		—		91,760		91,760
Residential construction		—		—		—		11,914		11,914
Residential		—		—		—		30,431		30,431
Farmland		—		—		—		50,164		50,164

Commercial:
Secured		—		—		—		138,676		138,676
Unsecured		—		—		—		17,526		17,526
PPP		—		—		—		147,965		147,965

Consumer and other		137		—		137		4,784		4,921

Total loans	$	137	$	—	$	137	$	1,506,317	$	1,506,454

There were no loans between 60-89 days past due nor any loans greater than 90 days past due and still accruing as of December 31, 2020.

[custom:DisclosureLoansAndAllowanceForLoanLossesDetails3Abstract]


	Past Due
(in thousands)	30-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
Real estate:
Commercial	$	—	$	—	$	—	$	1,317,060	$	1,317,060
Commercial land and development		—		—		—		15,726		15,726
Commercial construction		—		—		—		47,511		47,511
Residential construction		—		—		—		8,438		8,438
Residential		—		—		—		29,354		29,354
Farmland		—		—		—		55,077		55,077

Commercial:
Secured		—		—		—		137,165		137,165
Unsecured		—		—		—		21,655		21,655
PPP		—		—		—		61,499		61,499

Consumer and other		286		—		286		13,242		13,528

Total loans	$	286	$	—	$	286	$	1,706,727	$	1,707,013

There were 14 loans with balances totaling $0.1 million between 60-89 days past due, but no loans greater than 90 days past due and still accruing as of September 30, 2021.

The age analysis of past due loans by class as of December 31, 2020 consisted of the following:


	Past Due
(in thousands)	30-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
Real estate:
Commercial	$	—	$	—	$	—	$	1,002,497	$	1,002,497
Commercial land and development		—		—		—		10,600		10,600
Commercial construction		—		—		—		91,760		91,760
Residential construction		—		—		—		11,914		11,914
Residential		—		—		—		30,431		30,431
Farmland		—		—		—		50,164		50,164

Commercial:
Secured		—		—		—		138,676		138,676
Unsecured		—		—		—		17,526		17,526
PPP		—		—		—		147,965		147,965

Consumer and other		137		—		137		4,784		4,921

Total loans	$	137	$	—	$	137	$	1,506,317	$	1,506,454

There were no loans between 60-89 days past due nor any loans greater than 90 days past due and still accruing as of December 31, 2020.

Schedule of Impaired Loans by class of Loans

Information related to impaired loans as of September 30, 2021 and December 31, 2020 consisted of the following:

Loans and Allowance for Loan Losses (Details 4)

(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
September 30, 2021
Commercial real estate	$	126	$	126	$	—	$	132	$	—
Residential real estate		179		179		—		181		—
Commercial secured		252		252		134		265		—
Total impaired loans	$	557	$	557	$	134	$	578	$	—
December 31, 2020
Commercial real estate	$	137	$	137	$	—	$	69	$	—
Residential real estate		183		183		—		92		—
Commercial secured		132		132		—		65		—
Total impaired loans	$	452	$	452	$	—	$	226	$	—

Schedule of Nonaccural Loans, segregated by class

Non-accrual loans, segregated by class, are as follows as of September 30, 2021 and December 31, 2020:

Loans and Allowance for Loan Losses (Details 5)

(in thousands)	September 30, 2021		December 31, 2020
Real estate:
Commercial	$	126	$	137
Residential		179		183
Commercial secured		252		132
Total non-accrual loans	$	557	$	452

Schedule of activity in the allowance for loan losses

The following table discloses activity in the allowance for loan losses for the periods presented.

Loans and Allowance for Loan Losses (Details 6)


	Real Estate																	Commercial
(in thousands)	Comml		Comml Land and Devel			Comml Const			Resid Const			Resid			Farm- land			Secured			Unsec		PPP		Consu			Unal			Total
Three months ended September 30, 2021
Beginning balance	$	10,108	$	75		$	491		$	46		$	188		$	594		$	9,194		$	209	$	—	$	484		$	764		$	22,153
Charge-offs		—		—			—			—			—			—			(347	)		—		—		(85	)		—			(432	)
Recoveries		—		—			—			—			—			—			84			—		—		43			—			127
Provision (recapture)		1,587		37			(148	)		14			19			72			(1,537	)		9		—		196			(249	)		—
Ending balance	$	11,695	$	112		$	343		$	60		$	207		$	666		$	7,394		$	218	$	—	$	638		$	515		$	21,848
Three months ended September 30, 2020
Beginning balance	$	7,501	$	111		$	961		$	115		$	218		$	881		$	7,086		$	119	$	—	$	876		$	37		$	17,905
Charge-offs		—		—			—			—			—			—			(280	)		—		—		—			—			(280	)
Recoveries		—		—			—			—			—			—			31			—		—		46			—			77
Provision (recapture)		549		(1	)		(228	)		(1	)		(14	)		(377	)		1,940			11		—		(185	)		156			1,850
Ending balance	$	8,050	$	110		$	733		$	114		$	204		$	504		$	8,777		$	130	$	—	$	737		$	193		$	19,552

Nine months ended September 30, 2021
Beginning balance	$	9,358	$	77		$	821		$	87		$	220		$	615		$	9,476		$	179	$	—	$	632		$	724		$	22,189
Charge-offs		—		—			—			—			—			—			(786	)		—		—		(157	)		—			(943	)
Recoveries		—		—			—			—			—			—			219			—		—		184			—			403
Provision (recapture)		2,337		35			(478	)		(27	)		(13	)		51			(1,515	)		39		—		(21	)		(209	)		199
Ending balance	$	11,695	$	112		$	343		$	60		$	207		$	666		$	7,394		$	218	$	—	$	638		$	515		$	21,848
Nine months ended September 30, 2020
Beginning balance	$	6,331	$	109		$	661		$	116		$	224		$	1,382		$	4,976		$	88	$	—	$	601		$	427		$	14,915
Charge-offs		—		—			—			—			—			—			(1,217	)		—		—		(486	)		—			(1,703	)
Recoveries		—		—			—			—			90			—			147			—		—		102			—			339
Provision (recapture)		1,719		1			72			(2	)		(110	)		(878	)		4,871			42		—		520			(234	)		6,001
Ending balance	$	8,050	$	110		$	733		$	114		$	204		$	504		$	8,777		$	130	$	—	$	737		$	193		$	19,552

Interest-Bearing Deposits (Tables)

9 Months Ended

Sep. 30, 2021

Interest-bearing Deposits

Schedule of Interest-bearing deposits.

Interest-bearing deposits consisted of the following as of September 30, 2021 and December 31, 2020:

Schedule of Interest-bearing deposits.

Interest Bearing Deposits

(in thousands)	September 30, 2021		December 31, 2020
Savings	$	78,955	$	49,714
Money market		984,155		844,445
Interest checking accounts		155,881		146,553
Time, $250 or more		27,870		7,568
Other time		26,065		40,034
Total interest-bearing deposits	$	1,272,926	$	1,088,314

Schedule of Maturities of Time Deposits

Interest Bearing Deposits (Details 2)

(in thousands)	September 30, 2021
Year
2021	$	52,970
2022		574
2023		391
2024		—
2025		—
Total time deposits	$	53,935

Schedule of Composition of Network Deposits

Interest Bearing Deposits (Details 3)

(in thousands)	September 30, 2021		December 31, 2020
CDARS	$	22,405	$	35,534
ICS		363,827		266,519
Total network deposits	$	386,232	$	302,053

Interest expense recognized on interest-bearing deposits

Interest expense recognized on interest-bearing deposits for periods ended September 30, 2021, and 2020 consisted of the following:

Interest Bearing Deposits (Details 4)


	For the three months ended				For the nine months ended
(in thousands)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Savings	$	19	$	18	$	53	$	80
Money market		390		1,476		1,447		4,883
Interest checking accounts		37		96		113		315
Time, $250 or more		11		62		26		780
Other time		23		112		108		332
Total interest expense on interest-bearing deposits	$	480	$	1,764	$	1,747	$	6,390

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Pro forma provision of income taxes

Income Taxes


	For the three months ended						For the nine months ended
(in thousands)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net income before provision for income taxes	$	13,296		$	9,678		$	34,518		$	27,434
Effective/pro forma tax rate		17.07	%		29.56	%		23.25	%		29.56	%
Pro forma provision for income taxes	$	2,270		$	2,861		$	8,024		$	8,109

Income Taxes (Details 2)


	For the three months ended						For the nine months ended
(in thousands)	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Statutory U.S. federal income tax	$	2,792		$	2,032		$	7,249		$	5,761
Increase (decrease) resulting from:
Benefit of S Corporation status		(964	)		(2,032	)		(3,968	)		(5,761	)
State taxes		1,138			341			2,963			968
C Corp conversion federal rate change		—			—			1,484			—
Deferred tax asset adjustment		—			—			(4,638	)		—
Other		(696	)		—			296			—
Provision for income taxes	$	2,270		$	341		$	3,386		$	968

Shareholders’ Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Restricted Shares

The following table summarizes information about unvested restricted shares:

Schedule of Restricted Shares

Shareholders' Equity

	For the three months ended September 30,									For the nine months ended September 30,
	2021					2020				2021					2020
	Shares			Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Beginning of the period balance		129,551		$	19.95		11,568	$	21.25		11,568		$	21.25		15,794		$	21.03
Shares granted		—			—		—		—		173,207			19.89		8,148			21.00
Shares vested		—			—		—		—		(52,502	)		20.10		(12,374	)		20.81
Shares forfeited		(1,700	)		20.00		—		—		(4,422	)		19.31		—			—
End of the period balance		127,851			19.95		11,568		21.25		127,851			19.95		11,568			21.25

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Unfunded Loan Commitments and Standby Letter of Credit

Commitments and Contingencies

(in thousands)	September 30, 2021		December 31, 2020
Commercial lines of credit	$	118,902	$	107,231
Undisbursed construction loans		30,481		50,442
Undisbursed commercial real estate loans		40,653		39,946
Agricultural lines of credit		6,948		11,553
Undisbursed agricultural real estate loans		3,426		5,945
Other		3,214		920
Total commitments and standby letters of credit	$	203,624	$	216,037

Schedule of Future Minimum Lease Payment and Weighted Average Remaining Lease

The following table shows the future minimum lease payments and weighted average remaining lease terms under the Company’s operating lease arrangements as of September 30, 2021.

Commitments and Contingencies (Details 2)

(in thousands)	September 30, 2021
2021	$	261
2022		1,078
2023		1,009
2024		984
2025		768
Thereafter		1,755
Total	$	5,855
Weighted average remaining term (in years)		4.90

Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 11,026	$ 9,337	$ 31,132	$ 26,466
Weighted average basic common shares outstanding	17,095,957	9,902,952	14,256,993	9,747,896
Add: Dilutive effects of assumed vesting of restricted stock	27,225		15,538
Weighted average diluted common shares outstanding	17,123,182	9,902,952	14,272,531	9,747,896
Basic EPS	$ 0.64	$ 0.94	$ 2.18	$ 2.72
Diluted EPS	$ 0.64	$ 0.94	$ 2.18	$ 2.72

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Basis of Presentation (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income before provision for income taxes - GAAP	$ 13,296	$ 9,678	$ 34,518	$ 27,434
Actual/pro forma provision for income taxes	(2,270)	(2,861)	(8,024)	(8,109)
Actual/pro forma net income	$ 11,026	$ 6,817	$ 26,494	$ 19,325
Weighted average basic common shares outstanding	17,095,957	9,902,952	14,256,993	9,747,896
Add: Dilutive effects of assumed vesting of restricted stock	27,225		15,538
Weighted average diluted common shares outstanding	17,123,182	9,902,952	14,272,531	9,747,896
Basic EPS	$ 0.64	$ 0.69	$ 1.86	$ 1.98
Diluted EPS	$ 0.64	$ 0.69	$ 1.86	$ 1.98

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 530,832	$ 290,493	$ 341,392	$ 177,366
Time deposits in banks	17,204	23,705
Securities available-for-sale	153,821	114,949
Debt Securities, Available-for-sale	153,821	114,949
Securities held-to-maturity	4,955	7,979
Debt Securities, Held-to-maturity, Fair Value	5,211	8,755
Loans held for sale	5,267	4,820
Loans held for investment	1,682,868	1,480,970
Interest receivable	20,051	14,292
Financial liabilities (recorded at amortized cost)
Deposits	2,168,394	1,784,001
Interest payable	11,091	7,669
Subordinated notes	28,370	28,320
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	530,832	290,493
Time deposits in banks	17,204	23,705
Securities available-for-sale	153,821	114,949
Securities held-to-maturity	4,955	7,979
Loans held for sale	5,267	4,820
Loans held for investment	1,682,868	1,480,970
Interest receivable	5,170	5,422
Financial liabilities (recorded at amortized cost)
Deposits	2,168,394	1,784,001
Interest payable	19	75
Subordinated notes	28,370	28,320
Estimate of Fair Value Measurement [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	530,832	290,493
Time Deposit at Fair Value Disclosure	17,204	23,705
Debt Securities, Available-for-sale	153,821	114,949
Estimate of Fair Value Measurement [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Held-to-maturity, Fair Value	5,211	8,755
Accounts Receivable, Fair Value Disclosure	5,170	5,422
Financial liabilities (recorded at amortized cost)
Accounts Payable, Fair Value Disclosure	19	75
Subordinated Debt Obligations, Fair Value Disclosure	28,370	28,320
Estimate of Fair Value Measurement [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Held-for-sale, Fair Value Disclosure	5,507	5,012
Loans Receivable, Fair Value Disclosure	1,689,036	1,464,794
Financial liabilities (recorded at amortized cost)
Deposits, Fair Value Disclosure	$ 2,120,785	$ 1,785,944

Investment Securities (Details) - USD ($) $ in Thousands	9 Months Ended
Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Marketable Securities [Line Items]
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss	$ 4,955		$ 7,979
Debt Securities, Held-to-maturity, Fair Value	5,211		8,755
Held to Maturity Securities Gross Unrealized Gains	256	$ 776
Held to Maturity Securities Gross Unrealized Loss
US States and Political Subdivisions Debt Securities [Member]
Marketable Securities [Line Items]
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss	4,955		7,979
Debt Securities, Held-to-maturity, Fair Value	5,211		$ 8,755
Held to Maturity Securities Gross Unrealized Gains	256	776
Held to Maturity Securities Gross Unrealized Loss

Investment Securities (Details 2) - USD ($) $ in Thousands	9 Months Ended
Investment Securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 153,850		$ 113,555
Available-for-sale Securities	153,821		114,949
Available-for-sale Securities, Gross Unrealized Gain	979	$ 1,761
Available-for-sale Securities, Gross Unrealized Loss	1,008	(367)
Available-for-sale Securities, Gross Unrealized Loss	(1,008)	367
US Government Agencies Debt Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	21,780		32,069
Available-for-sale Securities	21,654		31,828
Available-for-sale Securities, Gross Unrealized Gain	108	111
Available-for-sale Securities, Gross Unrealized Loss	(234)	(352)
Available-for-sale Securities, Gross Unrealized Loss	234	352
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	78,301		23,601
Available-for-sale Securities	77,927		23,932
Available-for-sale Securities, Gross Unrealized Gain	198	338
Available-for-sale Securities, Gross Unrealized Loss	(572)	(7)
Available-for-sale Securities, Gross Unrealized Loss	572	7
Collateralized Debt Obligations [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	580		748
Available-for-sale Securities	592		769
Available-for-sale Securities, Gross Unrealized Gain	12	21
Available-for-sale Securities, Gross Unrealized Loss
Available-for-sale Securities, Gross Unrealized Loss
US States and Political Subdivisions Debt Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	51,189		57,137
Available-for-sale Securities	51,653		$ 58,420
Available-for-sale Securities, Gross Unrealized Gain	661	1,291
Available-for-sale Securities, Gross Unrealized Loss	(197)	8
Available-for-sale Securities, Gross Unrealized Loss	197	$ (8)
Corporate Debt Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	2,000
Available-for-sale Securities	1,995
Available-for-sale Securities, Gross Unrealized Gain
Available-for-sale Securities, Gross Unrealized Loss	(5)
Available-for-sale Securities, Gross Unrealized Loss	$ 5

Investment Securities (Details 3) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Held-to-Maturity, Amortized Cost, Within One Year	$ 795	$ 494
Held-to-Maturity, Fair Value, Within One Year	836	543
Available-for-Sale, Amortized Cost, Within One Year
Available-for-Sale, Fair Value, Within One Year
Held-to-Maturity, Amortized Cost, After One But Within Five Years	2,700	2,143
Held-to-Maturity, Fair Value, After One But Within Five Years	2,840	2,351
Available-for-Sale, Amortized Cost, After One But Within Five Years	508	1,141
Available-for-Sale, Fair Value, After One But Within Five Years	528	1,206
Held-to-Maturity, Amortized Cost, After Five But Within Ten Years	1,460	2,755
Held-to-Maturity, Fair Value, After Five But Within Ten Years	1,535	3,023
Available-for-Sale, Amortized Cost, After Five But Within Ten Years	4,488	8,340
Available-for-Sale, Fair Value, After Five But Within Ten Years	4,610	8,599
Held-to-Maturity, Amortized Cost, After Ten Years		2,587
Held-to-Maturity, Fair Value, After Ten Years		2,838
Available-for-Sale, Amortized Cost, After Ten Years	46,193	47,656
Available-for-Sale, Fair Value, After Ten Years	46,515	48,615
Securities held-to-maturity, at amortized cost (fair value of $5,211 and $8,755 at September 30, 2021 and December 31, 2020, respectively)	4,955	7,979
Held-to-Maturity, Fair Value	5,211	8,755
Available-for-Sale, Amortized Cost	153,850	113,555
Available-for-Sale, Fair Value	153,821	114,949
US Government Agencies Debt Securities [Member]
Marketable Securities [Line Items]
Securities held-to-maturity, at amortized cost (fair value of $5,211 and $8,755 at September 30, 2021 and December 31, 2020, respectively)
Held-to-Maturity, Fair Value
Available-for-Sale, Amortized Cost	21,780	32,069
Available-for-Sale, Fair Value	21,654	31,828
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Marketable Securities [Line Items]
Securities held-to-maturity, at amortized cost (fair value of $5,211 and $8,755 at September 30, 2021 and December 31, 2020, respectively)
Held-to-Maturity, Fair Value
Available-for-Sale, Amortized Cost	78,301	23,601
Available-for-Sale, Fair Value	77,927	23,932
Collateralized Debt Obligations [Member]
Marketable Securities [Line Items]
Securities held-to-maturity, at amortized cost (fair value of $5,211 and $8,755 at September 30, 2021 and December 31, 2020, respectively)
Held-to-Maturity, Fair Value
Available-for-Sale, Amortized Cost	580	748
Available-for-Sale, Fair Value	592	769
US Treasury Securities [Member]
Marketable Securities [Line Items]
Securities held-to-maturity, at amortized cost (fair value of $5,211 and $8,755 at September 30, 2021 and December 31, 2020, respectively)
Held-to-Maturity, Fair Value
Available-for-Sale, Amortized Cost	2,000
Available-for-Sale, Fair Value	$ 1,995

Investment Securities (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Investment Securities (Details 4) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Sales proceeds	$ 24,590	$ 7,706	$ 40,772	$ 39,940
Gross realized gains	$ 435	$ 275	$ 709	$ 1,241

Investment Securities (Details 5) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Pledged Assets Separately Reported, Mortgage-Related Securities Available-for-sale or Held-for-investment	$ 68,050	$ 52,897
California [Member]
Pledged Assets Separately Reported, Mortgage-Related Securities Available-for-sale or Held-for-investment	$ 68,050	$ 52,897

Investment Securities (Details 6) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 77,861	$ 16,508
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(719)	(71)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	17,350	15,195
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(289)	(296)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	95,211	31,703
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(1,008)	(367)
US Government Agencies Debt Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value		10,800
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		(56)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	14,866	15,195
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(234)	(296)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	14,866	25,995
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(234)	(352)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	56,020	1,786
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(530)	(7)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,421
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(42)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	57,441	1,786
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(572)	(7)
US States and Political Subdivisions Debt Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	20,846	3,922
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(184)	(8)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,063
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(13)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	21,909	3,922
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(197)	$ (8)
US Treasury Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	995
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(5)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	995
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ (5)

Investment Securities (Details Narrative) - Number	Sep. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Number of Securities with Gross Unrealized Losses	93	31
No. Of Securities, With Gross Unrealized Losses, Less Than 12 Months	18
No. Of Securities, With Gross Unrealized Losses, More Than 12 Months	75

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Subtotal	$ 1,707,013		$ 1,506,454	$ 1,557,904
Less: Net deferred loan fees	2,297		3,295
Less: Allowance for loan losses	21,848	$ 22,153	22,189	19,552	$ 17,905	$ 14,915
Total loans, net	1,682,868		1,480,970
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	1,317,060		1,002,497	949,600
Less: Allowance for loan losses	11,695	10,108	9,358	8,050	7,501	6,331
Real Estate Commercial Land and Development [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	15,726		10,600	15,485
Less: Allowance for loan losses	112	75	77	110	111	109
Real Estate Commercial Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	47,511		91,760	97,344
Less: Allowance for loan losses	343	491	821	733	961	661
Real Estate Residential Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	8,438		11,914	16,034
Less: Allowance for loan losses	60	46	87	114	115	116
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	29,354		30,431	28,790
Less: Allowance for loan losses	207	188	220	204	218	224
Real Estate Farmland [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	55,077		50,164	52,352
Less: Allowance for loan losses	666	594	615	504	881	1,382
Secured Debt [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	137,165		138,676	126,794
Less: Allowance for loan losses	7,394	9,194	9,476	8,777	7,086	4,976
Unsecured Debt [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	21,655		17,526	12,933
Less: Allowance for loan losses	218	209	179	130	119	88
Paycheck Protection Program ("PPP") [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	61,499		147,965	252,790
Less: Allowance for loan losses
Consumer Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	13,528		4,921	5,782
Less: Allowance for loan losses	$ 638	$ 484	$ 632	$ 737	$ 876	$ 601

Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 557		$ 452
Impaired Financing Receivable, Unpaid Principal Balance	557		452
Impaired Financing Receivable, Related Allowance	134
Impaired Financing Receivable, Average Recorded Investment	578	$ 226
Impaired Financing Receivable, Interest Income, Accrual Method
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Impaired Financing Receivable, Recorded Investment	126		137
Impaired Financing Receivable, Unpaid Principal Balance	126		137
Impaired Financing Receivable, Related Allowance
Impaired Financing Receivable, Average Recorded Investment	132	69
Impaired Financing Receivable, Interest Income, Accrual Method
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Impaired Financing Receivable, Recorded Investment	179		183
Impaired Financing Receivable, Unpaid Principal Balance	179		183
Impaired Financing Receivable, Related Allowance
Impaired Financing Receivable, Average Recorded Investment	181	92
Impaired Financing Receivable, Interest Income, Accrual Method
Secured Debt [Member]
Financing Receivable, Past Due [Line Items]
Impaired Financing Receivable, Recorded Investment	252		132
Impaired Financing Receivable, Unpaid Principal Balance	252		132
Impaired Financing Receivable, Related Allowance	134
Impaired Financing Receivable, Average Recorded Investment	265	65
Impaired Financing Receivable, Interest Income, Accrual Method

Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	$ 557	$ 452
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	126	137
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	179	183
Secured Debt [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	$ 252	$ 132

Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Beginning balance	$ 22,153	$ 17,905	$ 22,189	$ 14,915
Charge-offs	(432)	(280)	(943)	(1,703)
Recoveries	127	77	403	339
Provision (recapture)		1,850	199	6,001
Ending balance	21,848	19,552	21,848	19,552
Loans individually evaluated for impairment	134	78	134	78
Loans collectively evaluated for impairment	21,714	19,474	21,714	19,474	22,189
Ending balance	21,848	19,552	21,848	19,552	22,189
Ending balance: individually evaluated for impairment	557	1,482	557	1,482	452
Ending balance: collectively evaluated for impairment	1,706,456	1,556,422	1,706,456	1,556,422	1,506,002
Ending balance	1,707,013	1,557,904	1,707,013	1,557,904	1,506,454
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	10,108	7,501	9,358	6,331
Charge-offs
Recoveries
Provision (recapture)	1,587	549	2,337	1,719
Ending balance	11,695	8,050	11,695	8,050
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	11,695	8,050	11,695	8,050	9,358
Ending balance	11,695	8,050	11,695	8,050	9,358
Ending balance: individually evaluated for impairment	126	911	126	911	137
Ending balance: collectively evaluated for impairment	1,316,934	948,689	1,316,934	948,689	1,002,360
Ending balance	1,317,060	949,600	1,317,060	949,600	1,002,497
Real Estate Commercial Land and Development [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	75	111	77	109
Charge-offs
Recoveries
Provision (recapture)	37	(1)	35	1
Ending balance	112	110	112	110
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	112	110	112	110	77
Ending balance	112	110	112	110	77
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	15,726	15,485	15,726	15,485	10,600
Ending balance	15,726	15,485	15,726	15,485	10,600
Real Estate Commercial Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	491	961	821	661
Charge-offs
Recoveries
Provision (recapture)	(148)	(228)	(478)	72
Ending balance	343	733	343	733
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	343	733	343	733	821
Ending balance	343	733	343	733	821
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	47,511	97,344	47,511	97,344	91,760
Ending balance	47,511	97,344	47,511	97,344	91,760
Real Estate Residential Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	46	115	87	116
Charge-offs
Recoveries
Provision (recapture)	14	(1)	(27)	(2)
Ending balance	60	114	60	114
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	60	114	60	114	87
Ending balance	60	114	60	114	87
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	8,438	16,034	8,438	16,034	11,914
Ending balance	8,438	16,034	8,438	16,034	11,914
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	188	218	220	224
Charge-offs
Recoveries				90
Provision (recapture)	19	(14)	(13)	(110)
Ending balance	207	204	207	204
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	207	204	207	204	220
Ending balance	207	204	207	204	220
Ending balance: individually evaluated for impairment	179	186	179	186	183
Ending balance: collectively evaluated for impairment	29,175	28,604	29,175	28,604	30,248
Ending balance	29,354	28,790	29,354	28,790	30,431
Real Estate Farmland [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	594	881	615	1,382
Charge-offs
Recoveries
Provision (recapture)	72	(377)	51	(878)
Ending balance	666	504	666	504
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	666	504	666	504	615
Ending balance	666	504	666	504	615
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	55,077	52,352	55,077	52,352	50,164
Ending balance	55,077	52,352	55,077	52,352	50,164
Secured Debt [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	9,194	7,086	9,476	4,976
Charge-offs	(347)	(280)	(786)	(1,217)
Recoveries	84	31	219	147
Provision (recapture)	(1,537)	1,940	(1,515)	4,871
Ending balance	7,394	8,777	7,394	8,777
Loans individually evaluated for impairment	134	63	134	63
Loans collectively evaluated for impairment	7,260	8,714	7,260	8,714	9,476
Ending balance	7,394	8,777	7,394	8,777	9,476
Ending balance: individually evaluated for impairment	252	370	252	370	132
Ending balance: collectively evaluated for impairment	136,913	126,424	136,913	126,424	138,544
Ending balance	137,165	126,794	137,165	126,794	138,676
Unsecured Debt [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	209	119	179	88
Charge-offs
Recoveries
Provision (recapture)	9	11	39	42
Ending balance	218	130	218	130
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	218	130	218	130	179
Ending balance	218	130	218	130	179
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	21,655	12,933	21,655	12,933	17,526
Ending balance	21,655	12,933	21,655	12,933	17,526
Paycheck Protection Program ("PPP") [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance
Charge-offs
Recoveries
Provision (recapture)
Ending balance
Loans individually evaluated for impairment
Loans collectively evaluated for impairment
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	61,499	252,790	61,499	252,790	147,965
Ending balance	61,499	252,790	61,499	252,790	147,965
Consumer Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	484	876	632	601
Charge-offs	(85)		(157)	(486)
Recoveries	43	46	184	102
Provision (recapture)	196	(185)	(21)	520
Ending balance	638	737	638	737
Loans individually evaluated for impairment		15		15
Loans collectively evaluated for impairment	638	722	638	722	632
Ending balance	638	737	638	737	632
Ending balance: individually evaluated for impairment		15		15
Ending balance: collectively evaluated for impairment	13,528	5,767	13,528	5,767	4,921
Ending balance	13,528	5,782	13,528	5,782	4,921
Unallocated Financing Receivables [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	764	37	724	427
Charge-offs
Recoveries
Provision (recapture)	(249)	156	(209)	(234)
Ending balance	515	193	515	193
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	515	193	515	193	724
Ending balance	515	193	515	193	724
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance

Loans and Allowance for Loan Losses (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Subtotal	$ 1,707,013,000	$ 1,557,904,000	$ 1,707,013,000	$ 1,557,904,000	$ 1,506,454,000
Financing Receivable, Nonaccrual, Interest Income	8,193	$ 20,287	21,773	$ 38,151
Line of Credit	319,500,000		319,500,000		293,500,000
Unfunded Loan Commitment [Member]
Financing Receivable, Past Due [Line Items]
Cash Collateral for Borrowed Securities	9,600,000		9,600,000		1,600,000
Federal Home Loan Bank of San Francisco [Member]
Financing Receivable, Past Due [Line Items]
Line of Credit	713,300,000		713,300,000		1,100,000,000
Securities Pledged with FHLB	25,300,000		25,300,000		$ 61,600,000
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Subtotal	$ 100,000		$ 100,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Interest Bearing Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Interest-bearing Deposits
Savings	$ 78,955	$ 49,714
Money market	984,155	844,445
Interest checking accounts	155,881	146,553
Time, $250 or more	27,870	7,568
Other time	26,065	40,034
Total interest-bearing deposits	$ 1,272,926	$ 1,088,314

Interest Bearing Deposits (Details 2) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Interest-bearing Deposits
2021	$ 52,970
2022	574
2023	391
2024
2025
Total time deposits	$ 53,935	$ 47,600

Interest Bearing Deposits (Details 3) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Total network deposits	$ 386,232	$ 302,053
C D A R S [Member]
Total network deposits	22,405	35,534
I C S [Member]
Total network deposits	$ 363,827	$ 266,519

Interest Bearing Deposits (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest-bearing Deposits
Savings	$ 19	$ 18	$ 53	$ 80
Money market	390	1,476	1,447	4,883
Interest checking accounts	37	96	113	315
Time, $250 or more	11	62	26	780
Other time	23	112	108	332
Total interest expense on interest-bearing deposits	$ 480	$ 1,764	$ 1,747	$ 6,390

Interest-Bearing Deposits (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Interest-bearing Deposits
Interest-bearing Domestic Deposit, Time Deposits	$ 53,935	$ 47,600
Related Party Deposit Liabilities	$ 60,700	$ 42,500

Long Term Debt and Other Borrowings (Details Narrative) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Nov. 08, 2019	Mar. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Subordinated Debt			$ 28,370		$ 28,320
Long-term Line of Credit			$ 319,500		$ 293,500
Subordinated Debt [Member]
Debt Instrument [Line Items]
Subordinated Debt	$ 3,750			$ 25,000
Subordinated Borrowing, Due Date	Sep. 15, 2027
Subordinated Borrowing, Interest Rate	5.50%		3.66%
Subordinated Debt [Member] \| Entity Controller by Member of Board of Directors and Three Shareholder [Member]
Debt Instrument [Line Items]
Subordinated Borrowing, Due Date		Sep. 15, 2027
Subordinated Borrowing, Interest Rate		6.00%	4.16%

- Definition

+ References + Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Net income before provision for income taxes	$ 13,296	$ 9,678	$ 34,518	$ 27,434
Effective/pro forma tax rate	17.07%	29.56%	23.25%	29.56%
Pro forma provision for income taxes	$ 2,270	$ 2,861	$ 8,024	$ 8,109

- Definition

+ References

+ Details

Income Taxes (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Statutory U.S. federal income tax	$ 2,792	$ 2,032	$ 7,249	$ 5,761
Benefit of S Corporation status	(964)	(2,032)	(3,968)	(5,761)
State taxes	1,138	341	2,963	968
C Corp conversion federal rate change			1,484
Deferred tax asset adjustment			(4,638)
Other	(696)		296
Provision for income taxes	$ 2,270	$ 341	$ 3,386	$ 968

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Shareholders' Equity (Details) - $ / shares	3 Months Ended		9 Months Ended
Shareholders' Equity (Details) - $ / shares	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance	129,551	11,568	11,568	15,794
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance	$ 19.95	$ 21.25	$ 21.25	$ 21.03
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		0	173,207	8,148
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 0	$ 19.89	$ 21.00
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			(52,502)	(12,374)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value		$ 0	$ 20.10	$ 20.81
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(1,700)		(4,422)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 20.00	$ 0	$ 19.31
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	1,700		4,422
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance	127,851	11,568	127,851	11,568
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance	$ 19.95	$ 21.25	$ 19.95	$ 21.25

Shareholders’ Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 06, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.15
Dividends Payable	$ 2,600
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			0
Employee Stock Ownership Plan (ESOP), Compensation Expense		$ 200	$ 400	$ 1,200	$ 500
Unvested Restricted Shares		127,851		127,851		11,568
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			0	173,207	8,148
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period		1,700		4,422

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	$ 203,624	$ 216,037
Commercial Lines of Credit [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	118,902	107,231
Undisbursed Construction Loans [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	30,481	50,442
Undisbursed Commercial Real Estate Loans [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	40,653	39,946
Agricultural Lines of Credit [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	6,948	11,553
Undisbursed Agricultural Real Estate Loans [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	3,426	5,945
Other Commitments [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	$ 3,214	$ 920

Commitments and Contingencies (Details 2) $ in Thousands	Sep. 30, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 261
2022	1,078
2023	1,009
2024	984
2025	768
Thereafter	1,755
Total	$ 5,855
Operating Lease, Weighted Average Remaining Lease Term	4 years 10 months 24 days

Commitments and Contingencies (Details Narrative) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) Number	Sep. 30, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of Deposits \| Number		64
Percentage of Depsoits over 5 millions to Deposits		51.32%
Largest Single Deposit		$ 190,200
Percentage of Largest Single Deposit to Total Deposits		8.77%
Operating Leases, Rent Expense	$ 100	$ 100	$ 200

Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Oct. 05, 2021	Jul. 06, 2021
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.15
Dividends Payable		$ 2,600
Subsequent Event [Member]
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.15
Dividends Payable	$ 2,600

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	$ 153,821	$ 114,949
Estimate of Fair Value Measurement [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	153,821	114,949
Assets, Total [Member] \| US Treasury Securities [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale
Assets, Total [Member] \| US Treasury Securities [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	153,821	114,949
Assets, Total [Member] \| US Treasury Securities [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale
Assets, Total [Member] \| US Treasury Securities [Member] \| Estimate of Fair Value Measurement [Member] \| Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	153,821	114,949
Assets, Total [Member] \| Interest Rate Swap [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale
Assets, Total [Member] \| Interest Rate Swap [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	108	149
Assets, Total [Member] \| Interest Rate Swap [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale
Assets, Total [Member] \| Interest Rate Swap [Member] \| Estimate of Fair Value Measurement [Member] \| Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	108	149
Liabilities, Total [Member] \| Interest Rate Swap [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale
Liabilities, Total [Member] \| Interest Rate Swap [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	108	149
Liabilities, Total [Member] \| Interest Rate Swap [Member] \| Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale
Liabilities, Total [Member] \| Interest Rate Swap [Member] \| Estimate of Fair Value Measurement [Member] \| Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	$ 108	$ 149