0001552781-22-000215 | 10-K | XBRL Viewer

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Cash and due from financial institutions	$ 136,074	$ 46,028
Interest-bearing deposits in banks	289,255	244,465
Cash and cash equivalents	425,329	290,493
Time deposits in banks	14,464	23,705
Securities available-for-sale, at fair value	148,807	114,949
Securities held-to-maturity, at amortized cost (fair value of $5,197 and $8,755 at December 31, 2021 and 2020, respectively)	4,946	7,979
Loans held for sale	10,671	4,820
Loans held for investment, net of allowance for loan losses of $23,243 and $22,189 at December 31, 2021 and 2020, respectively	1,911,217	1,480,970
Federal Home Loan Bank of San Francisco (“FHLB”) stock	6,723	6,232
Premises and equipment, net	1,773	1,663
Bank-owned life insurance (“BOLI”)	11,203	8,662
Interest receivable and other assets	21,628	14,292
Assets	2,556,761	1,953,765
Deposits
Non-interest-bearing	902,118	701,079
Interest-bearing	1,383,772	1,082,922
Total deposits	2,285,890	1,784,001
Subordinated notes, net	28,386	28,320
Interest payable and other liabilities	7,439	7,669
Total liabilities	2,321,715	1,819,990
Shareholders’ equity
Preferred stock, no par value; 10,000,000 shares authorized; zero issued and outstanding at December 31, 2021 and 2020, respectively
Common stock, no par value; 100,000,000 shares authorized; 17,224,848 shares issued and outstanding at December 31, 2021; 11,000,273 shares issued and outstanding at December 31, 2020	218,444	110,082
Retained earnings	17,168	22,348
Accumulated other comprehensive (loss) income, net	(566)	1,345
Total shareholders’ equity	235,046	133,775
Liabilities and Shareholders’ Equity	$ 2,556,761	$ 1,953,765

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Debt Securities, Held-to-maturity, Fair Value	$ 5,197	$ 8,755
Loans and Leases Receivable, Allowance	$ 23,243	$ 22,189
Preferred Stock, Par or Stated Value Per Share	$ 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 or Stated Value Per Share	$ 0	$ 0
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	17,224,848	11,000,273
Common Stock, Shares, Outstanding	17,224,848	11,000,273

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Interest and dividend income
Loans, including fees	$ 78,894	$ 71,405
Taxable securities	1,321	1,287
Nontaxable securities	821	500
Interest-bearing deposits in other banks	547	1,198
Interest and dividend income	81,583	74,390
Interest expense
Deposits	2,199	7,407
Subordinated notes	1,773	1,773
Interest expense	3,972	9,180
Net interest income	77,611	65,210
Provision for loan losses	1,700	9,000
Net interest income after provision for loan losses	75,911	56,210
Non-interest income
Service charges on deposit accounts	424	367
Net gain on sale of securities	724	1,438
Gain on sale of loans	4,082	4,145
Loan-related fees	639	2,309
FHLB stock dividends	372	321
Earnings on BOLI	237	220
Other	802	502
Noninterest Income	7,280	9,302
Non-interest expense
Salaries and employee benefits	19,825	16,084
Occupancy and equipment	1,938	1,715
Data processing and software	2,494	1,982
Federal Deposit Insurance Corporation (“FDIC”) insurance	700	1,137
Professional services	3,792	1,960
Advertising and promotional	1,300	1,102
Loan-related expenses	1,045	732
Other operating expenses	4,949	3,545
Noninterest expense	36,043	28,257
Income before provision for income taxes	47,148	37,255
Provision for income taxes	4,707	1,327
Net income	$ 42,441	$ 35,928
Basic earnings per share	$ 2.83	$ 3.57
Diluted earnings per share	$ 2.83	$ 3.57

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Net income	$ 42,441	$ 35,928
Net unrealized holding (loss) gain on securities available-for-sale during the period	(1,475)	2,860
Reclassification adjustment for net realized gains included in net income	(724)	(1,438)
Income tax (benefit) expense related to other comprehensive (loss) income	(288)	51
Other comprehensive (loss) income	(1,911)	1,371
Total comprehensive income	$ 40,530	$ 37,299

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=123570139&loc=d3e3602-108585

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 20: 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(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=125511455&loc=SL5780133-109256

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669619-108580

Reference 25: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669625-108580

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

+ Details

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - 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		35,928		35,928
Other comprehensive loss			1,371	1,371
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	$ 316			316
Director stock compensation expense	$ 252			252
Director stock compensation expense, Shares	16,000
Common stock issued	$ 900			900
Common stock issued, Shares	50,000
Cash dividends paid ($4.55 per share)		(26,369)		(26,369)
Ending balance, value at Dec. 31, 2020	$ 110,082	22,348	1,345	133,775
Ending Balance, Shares at Dec. 31, 2020	11,000,273
Net income		42,441		42,441
Other comprehensive loss			(1,911)	(1,911)
Stock offering	$ 111,243			111,243
Stock offering, Shares	6,054,750
Stock issued under stock award plans
Stock issued under stock award plans, Shares	132,707
Stock compensation expense	$ 594			594
Director stock compensation expense	$ 846			846
Director stock compensation expense, Shares	41,640
Restricted stock forfeitures
Stock forfeitures, Shares	(4,522)
Reclassification of retained deficit	$ (4,321)	4,321
Cash dividends paid ($4.55 per share)		(51,942)		(51,942)
Ending balance, value at Dec. 31, 2021	$ 218,444	$ 17,168	$ (566)	$ 235,046
Ending Balance, Shares at Dec. 31, 2021	17,224,848

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Common Stock, Dividends, Per Share, Cash Paid	$ 4.55	$ 2.63

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 42,441	$ 35,928
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,700	9,000
Loans originated for sale	(48,169)	(98,399)
Gain on sale of loans	(4,082)	(4,145)
Proceeds from sale of loans	43,024	108,149
Net gain on sale of securities	(724)	(1,438)
Earnings on BOLI	(237)	(220)
Stock compensation expense	594	316
Director stock compensation expense	846	252
Change in deferred loan fees	(1,689)	2,367
Amortization and accretion of security premiums and discounts	1,561	1,138
Amortization of subordinated notes issuance costs	66	67
Depreciation and amortization	607	461
Deferred taxes	(4,001)	(143)
Net changes in:
Interest receivable and other assets	(3,050)	(3,548)
Interest payable and other liabilities	(230)	1,690
Net cash provided by operating activities	28,657	51,475
Cash flows from investing activities:
Proceeds from sale of securities available-for-sale	47,096	46,406
Maturities, prepayments, and calls of securities available-for-sale	18,732	16,118
Purchases of securities available-for-sale	(99,686)	(97,571)
Increase (decrease) in time deposits in banks	9,241	(3,761)
Loan originations, net of repayments	(426,882)	(330,837)
Purchase of premises and equipment	(717)	(833)
Purchase of FHLB stock	(491)	(1,152)
Purchase of BOLI	(2,304)	(1,000)
Net cash used in investing activities	(455,011)	(372,630)
Cash flows from financing activities:
Net change in deposits	501,889	472,251
Proceeds from issuance of common stock	111,243	13,400
FHLB repayment		(25,000)
Cash dividends paid	(51,942)	(26,369)
Net cash provided by financing activities	561,190	434,282
Net change in cash and cash equivalents	134,836	113,127
Cash and cash equivalents at beginning of period	290,493	177,366
Cash and cash equivalents at end of period	425,329	290,493
Supplemental disclosure of cash flow information:
Interest paid	4,505	9,713
Income taxes paid	10,450	1,655
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	(2,199)	1,422
Disposal of premises and equipment	515
Reclassification of retained deficit	$ 4,321

Basis of Presentation

12 Months Ended

Dec. 31, 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 (the “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 a broad range of banking products and services to customers who are predominately small and medium-sized businesses, professionals, and individuals primarily in the Northern California region. Its primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit. 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.

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 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 Global Select Market on May 5, 2021. On May 7, 2021, the closing date of the IPO, the Company received total net proceeds of $111,243,000. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $109,082,000.

Basis of Financial Statement Presentation and Consolidation

The accompanying 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.

The 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.

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 a smaller reporting company, 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 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. Other estimates include fair value measurements, valuation of servicing assets, and deferred tax asset valuation.

Cash and Cash Equivalents

The Company defines cash and cash equivalents as cash, due from financial institutions, interest-bearing deposits in banks with short term original maturities, and federal funds sold. Generally, federal funds are sold for one-day periods, if at all. At times throughout the year, balances can exceed FDIC insurance limits. The Company has not experienced any historical losses associated with balances maintained with financial institutions in excess of FDIC insurance limits, and management continues to monitor the financial condition of the major financial institutions where these funds are held.

Securities Available-for-Sale

Available-for-sale securities consist of bonds, notes, and debentures not classified as trading securities or held-to-maturity securities. Securities are classified as available-for-sale if the Company intends and has the ability to hold those securities for a period of time, but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Securities available-for-sale are carried at fair value. Unrealized holding gains or losses are included in other comprehensive income as a separate component of shareholders’ equity, net of tax. Realized gains or losses, determined based on the cost of specific securities sold, are included in earnings. Premiums are amortized over the life of the security, or if a callable bond, over the earliest call date, and discounts are accreted over the life of the related investment security as an adjustment to interest income using the effective interest method. Interest income is recognized when earned.

Investments with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates, or both. At each consolidated financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other-than-temporary. Various factors are considered in the assessment, including the nature of the investment, the cause of the impairment, the severity and duration of the impairment, credit ratings, and other credit-related factors such as third-party guarantees and volatility of the security’s fair value. This assessment also includes a determination as to whether the Company intends to sell the security, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an other-than-temporary impairment (“OTTI”) write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. For debt securities that are considered to be OTTI and that the Company does not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, the amount of impairment is separated into the amount that is credit-related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is calculated as the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of the future expected cash flows is deemed to be due to factors that are not credit-related and is recognized in other comprehensive income.

Securities Held-to-Maturity

Securities are classified as held-to-maturity if the Company has both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost adjusted for amortization of premium to the earliest callable call date and accretion of discount, computed by the effective interest method over the life of the related investment.

Loans and Allowance for Loan Losses

Loans are reported at the principal amount outstanding, net of deferred loan fees and costs and the allowance for loan losses. Interest on loans is accrued daily based on the principal outstanding.

Loan fees, net of certain direct costs of origination, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. During the years ended December 31, 2021 and 2020, salaries and employee benefits totaling $5,198,000 and $3,194,000, respectively, were deferred as loan origination costs.

Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Accrual of interest on loans is discontinued either when reasonable doubt exists as to the full and timely collection of interest or principal or when a loan becomes contractually past due by 90 days or more with respect to interest or principal. When a loan is placed on non-accrual status, all interest previously accrued, but not collected, is reversed against current period interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest.

The allowance for loan losses represents the estimated probable incurred loan losses in the Company’s loan portfolio. The allowance for loan losses is established through a provision for loan losses charged to operations. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries of previously charged off amounts, if any, are credited to the allowance for loan losses.

The allowance for loan losses is evaluated on a regular basis by management and is based on management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The Audit Committee of the board of directors reviews the adequacy of the allowance at least quarterly.

The allowance consists of: (i) specific allowances for individually identified impaired loans (ASC 310-10, Receivables); (ii) general allowances for pools of loans (ASC 450-20, Contingencies – Loss Contingencies), which incorporate quantitative (e.g., historical loan loss rates) and qualitative risk factors (e.g., portfolio growth and trends, credit concentrations, economic and regulatory factors, etc.); and (iii) unallocated allowances, if any.

The first component, specific allowances, results from the analysis of identified problem credits and the evaluation of sources of repayment, including collateral, as applicable. Through management’s ongoing credit monitoring process, individual loans are identified that have conditions indicating the borrower may be unable to pay all amounts due in accordance with contractual terms. These loans are evaluated for impairment individually by management. Management considers an originated loan to be impaired when it is probable that collection of all amounts due according to the contractual terms of the loan agreement is unlikely. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Interest income is recognized on impaired loans in the same manner as non-accrual loans.

When the fair value of the impaired loan is less than the recorded investment in the loan, the difference is recorded as an impairment through the establishment of a specific allowance. For loans determined to be impaired, the extent of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate at origination, based on the loan’s observable market price, or based on the fair value of the collateral if the loan is collateral dependent or if foreclosure is imminent. Generally, with problem credits that are collateral dependent, management obtains appraisals of the collateral at least annually. Appraisals may be obtained more frequently if management believes the collateral value is subject to market volatility, if a specific event has occurred to the collateral, or if the Company believes foreclosure is imminent.

The second component, general allowances, is an estimate of the probable inherent losses in each loan pool with similar risk characteristics. This analysis encompasses the entire loan portfolio, excluding individually identified impaired loans. The model determines general allowances by loan segment based on quantitative (loss history) and qualitative risk factors.

The third component, unallocated allowances, is maintained to cover other uncertainties that could affect management’s estimate of probable losses. The unallocated allowances reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. While management believes the best information available is used to determine the allowance for loan losses, the results of operations could be significantly affected if circumstances differ substantially from the assumptions used in determining the allowance. A decline in local and national economic conditions, or significant changes in other assumptions, could result in a material increase in the allowance for loan losses and may adversely affect the Company’s financial condition and results of operations. While the Company believes the estimates and assumptions used in the determination of the adequacy of the allowance for loan losses are reasonable, there can be no assurance that such estimates and assumptions will not be proved incorrect in the future, that the actual amounts of future provisions will not exceed the amounts of past provisions, or that any increased provisions that may be required will not adversely impact the financial condition and results of operations of the Company.

The Company considers a loan to be a troubled debt restructure (“TDR”) when the Company has granted a concession and the borrower is experiencing financial difficulty. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. A TDR loan generally is kept on non-accrual status until, among other criteria, the borrower has paid for six consecutive months with no payment defaults, at which time the TDR may be placed back on accrual status.

In conjunction with the passage of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as well as the revised interagency guidance issued in April 2020, the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by the Coronavirus (Revised),” banks have been provided the option, for loans meeting specific criteria, to temporarily suspend certain requirements under GAAP related to TDRs for a limited time to account for the effects of COVID-19. As a result, the Company has not recognized eligible COVID-19 loan modifications as TDRs. The CARES Act, as amended by the Consolidated Appropriations Act, specified that COVID-19 related loan modifications executed between March 1, 2020 and the earlier of: (i) 60 days after the date of termination of the national emergency declared by the President; and (ii) January 1, 2022, on loans that were current as of December 31, 2019 are not TDRs. Additionally, loans qualifying for these modifications are not required to be reported as delinquent, non-accrual, impaired, or criticized solely as a result of a COVID-19 loan modification.

Federal Home Loan Bank Stock

Federal Home Loan Bank stock represents the Company’s investment in the stock of the Federal Home Loan Bank of San Francisco (“FHLB”) and is carried at par value. While technically these are considered equity securities, there is no market for the FHLB stock. Therefore, the shares are considered as other investment securities.

Management periodically evaluates FHLB stock for OTTI. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as: (i) the significance of any decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted; (ii) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (iii) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (iv) the liquidity position of the FHLB. Both cash and stock dividends are reported as non-interest income.

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives using a straight-line basis. The normal estimated lives used in determining depreciation are as follows:

Equipment	3-12 years
Furniture and Fixtures	5-10 years
Leasehold Improvements	5-15 years
Automobiles	3-5 years

Leasehold improvements are amortized over the lesser of the useful life of the asset or the remaining term of the lease. The straight-line method of depreciation is followed for all assets for financial reporting purposes, but accelerated methods are used for tax purposes.

When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred.

Other Real Estate

Real estate properties acquired through, or in lieu of, loan foreclosure, are classified as other real estate owned (“OREO”), are to be sold and are initially recorded at fair value of the property at the date of foreclosure less estimated selling costs. Any write-downs in value are recorded against the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed, and any revisions in the estimate of fair value are reported as adjustments to the carrying value of the real estate, provided the adjusted carrying amount does not exceed the original amount at foreclosure. Subsequent valuation adjustments are recognized as OREO write-downs. Revenues and expenses incurred from OREO property management are recorded in non-interest income and non-interest expense, respectively. During 2021 and 2020, the Bank did not foreclose on any loans.

BOLI

BOLI is recorded at the amount that can be realized under the insurance contract at the consolidated balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Increases in contract value are recorded as non-interest income, and insurance proceeds received are recorded as a reduction of the contract value.

Long-Term Assets

Premises, equipment, and other long-term assets are reviewed for impairment when events indicate that their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are adjusted to reflect their fair value.

Equity Investments

Equity investments with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Equity investments without readily determinable fair values are carried at cost, less impairment, if any, and adjusted for changes resulting from observable price changes in orderly transactions for the identical or similar investment.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated.

Transfers of Financial Assets

Transfers of an entire financial asset, a group of financial assets, or a participating interest in an entire financial asset, are accounted for as sales when control has been relinquished. Control is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of more than trivial conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Included in the loan portfolio are loans guaranteed by the Small Business Administration (“SBA”), the Farm Service Agency (“FSA”), the Federal Agriculture Mortgage Corporation (“Farmer Mac”) and the United States Department of Agriculture (“USDA”), of which the guaranteed portion is expected to be sold in the secondary market in exchange for a one-time premium. At the time the guaranteed portion of the loan is sold, the unguaranteed portion and related right to service the entire loan is retained with the Company, to earn future servicing income. The loans held for sale are accounted for at the lower of cost or fair value, using the aggregate method. Government guaranteed loans held for sale totaled $10,671,000 and $4,820,000 at December 31, 2021 and 2020, respectively.

Servicing rights acquired through the origination of loans, which are subsequently sold with servicing rights retained, are recognized as separate assets or liabilities. Servicing assets and liabilities are initially recorded at fair value and are subsequently amortized in proportion to, and over the period of, the related net servicing income or expense. The amortized assets are assessed for impairment or increased obligations at the loan level, based on the fair value on a periodic basis.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance-sheet credit instruments, such as commitments to make loans, and financial standby letters of credit issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

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. Reserves for unfunded commitments are included as a component of Interest payable and other liabilities on the consolidated balance sheets.

Stock-Based Compensation

Compensation cost is recognized for stock options and restricted stock awards (“RSAs”) issued to executives, directors, and employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the grant date fair value of stock options, while the fair value of the Company’s common stock at the date of grant is used for RSAs. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Supplemental Executive Retirement Plan

The Bank has entered into a non-qualified retirement plan for the Chief Executive Officer based on a continuation of employment. The present value of annual post-retirement payments is allocated to expense over the years of required service.

Income Taxes

The Company has historically elected to be taxed for U. S. federal income tax purposes as an S Corporation. In conjunction with the IPO, the Company filed consents from the requisite amount of shareholders to revoke its S Corporation election with the Internal Revenue Service (the “IRS”), resulting in the commencement of taxation as a C Corporation for U.S. federal and California state income tax purposes in the second quarter of fiscal year 2021. Upon termination of the Company’s S Corporation status, the Company commenced paying U.S. federal income tax and a higher California state income tax on taxable earnings for each year (including the short year beginning on the date the Company’s status as an S Corporation terminated).

As a result of the termination of S Corporation status, deferred tax assets and liabilities were recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are 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 in net income in the year ended December 31, 2021.

The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes.

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company accounts for uncertain tax positions in accordance with FASB ASC Topic No. 740, Accounting for Uncertainty in Income Taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood greater than 50% of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

Derivatives

All derivative instruments are recorded at fair value. If derivative instruments are designated as hedges of fair values, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges, if any, are recorded in other comprehensive income or loss and reclassified to earnings when the hedged transaction is reflected in earnings.

Comprehensive Income or Loss

Comprehensive income or loss consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available-for-sale, net of tax, which are also recognized as separate components of shareholders’ equity.

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 RSAs. Diluted EPS includes the dilutive effect of additional potential common shares related to unvested RSAs using the treasury stock method. During the years ended December 31, 2021 and 2020, there were no outstanding stock options. The Company has two forms of outstanding common stock: common stock and unvested RSAs. Following the Company’s IPO, holders of unvested RSAs receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings; therefore the RSAs are considered participating securities. However, under the two-class method, the difference in EPS is not significant for these participating securities.

(in thousands, except share and per share data)	2021		2020
Net income	$	42,441	$	35,928
Weighted average basic common shares outstanding		14,972,637		10,063,183
Add: Dilutive effects of assumed vesting of restricted stock		22,576		—
Weighted average diluted common shares outstanding		14,995,213		10,063,183
Income per common share:
Basic EPS	$	2.83	$	3.57
Diluted EPS	$	2.83	$	3.57

Anti-dilutive shares, which are excluded from the dilutive EPS calculation, were deemed to be immaterial.

For the year ended December 31, 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 year ended December 31, 2021, pro forma EPS is calculated by applying an effective tax rate of 19.80%, which is the actual effective tax rate, excluding the effects of the discrete deferred tax adjustment of $4,638,000, as discussed in Note 11, Income Taxes. The following reconciliation table provides a detailed calculation of pro forma EPS:

Schedule of Pro forma Earning Per Share

(in thousands, except share and per share data)	2021			2020
Net income before provision for income taxes - GAAP	$	47,148		$	37,255
Actual/pro forma provision for income taxes		(9,335	)		(11,013	)
Actual/pro forma net income		37,813			26,242
Weighted average basic common shares outstanding		14,972,637			10,063,183
Add: Dilutive effects of assumed vesting of restricted stock		22,576			—
Weighted average diluted common shares outstanding		14,995,213			10,063,183
Income per common share:
Basic EPS	$	2.53		$	2.61
Diluted EPS	$	2.52		$	2.61

Subordinated Notes

The subordinated notes are recorded at par with related debt issuance costs reported as a direct reduction from the carrying amount. Issuance costs are amortized over the remaining maturity of the notes and reflected in interest expense.

Fair Value of Financial Instruments

The consolidated financial statements include various estimated fair value information as of December 31, 2021 and 2020. Such information, which pertains to the Company’s financial instruments, does not purport to represent the aggregate net fair value of the Company. Further, the fair value estimates are based on various assumptions, methodologies, and subjective considerations, which vary widely among different financial institutions, and are subject to change.

Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company bases the fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Securities available-for-sale, and derivatives, if any, are recorded at fair value on a recurring basis.

Additionally, from time to time, the Company may be required to record certain assets at fair value on a non-recurring basis, such as loans held for sale, certain collateral dependent impaired loans held for investment and held-to-maturity securities that are other-than-temporarily impaired. These non-recurring fair value adjustments typically involve write-downs of individual assets due to application of lower of cost or fair value accounting.

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).

As a result, if other assumptions had been used, the Company’s recorded earnings or disclosures could have been materially different from those reflected in these consolidated financial statements.

Subsequent Events

The Company has evaluated events and transactions subsequent to December 31, 2021 for recognition or disclosure.

Reclassifications

Certain amounts reported in previous consolidated financial statements have been reclassified to conform to current year presentation. These reclassifications did not affect previously reported amounts of net income, total assets, or total shareholders’ equity.

Recently Issued Accounting Standards

12 Months Ended

Dec. 31, 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, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, 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, Leases (Topic 842): Lessors- Certain Leases with Variable Lease Payments, 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 estimates that the adoption of this standard will result in an increase in assets of approximately $5,200,000, with a corresponding increase in liabilities, to recognize the present value of its lease obligations in accordance with the standard. The Company does not expect this to have a material impact on the Company’s results of operations or cash flows.

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, with any estimated credit losses 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 resulting 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. LIBOR administrators have indicated that certain LIBOR settings will continue to be published through June 30, 2023. 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI http://asc.fasb.org/topic&trid=2122394

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 105
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=124434974&loc=SL124442142-165695

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=122038215&loc=SL108384541-122693

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (d)(1)
-URI http://asc.fasb.org/extlink&oid=124402435&loc=SL124402458-218513

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)(2)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (g)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (d)(2)
-URI http://asc.fasb.org/extlink&oid=124402435&loc=SL124402458-218513

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (j)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-URI http://asc.fasb.org/extlink&oid=122038215&loc=d3e31137-122693

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(3)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 848
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=122150657&loc=SL122150809-237846

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 848
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Publisher FASB
-Subparagraph (c)

+ Details

Investment Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 3: 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 the Government National Mortgage Association (the “GNMA”) and the SBA, and securities issued by U.S. government-sponsored enterprises (“GSEs”), such as the Federal National Mortgage Association (the “FNMA”), the Federal Home Loan Mortgage Corporation (the “FHLMC”), and the FHLB. The Company also invests in residential and commercial mortgage-backed securities, collateralized mortgage obligations 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 December 31, 2021 and 2020 is presented below.

Schedule of Securities Held-To-Maturity

			Gross Unrealized
(in thousands)	Amortized Cost		Gains		(Losses)		Fair Value
2021
Obligations of states and political subdivisions		4,946		251		—		5,197
Total held-to-maturity	$	4,946	$	251	$	—	$	5,197
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, for OTTI purposes, 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 December 31, 2021 and 2020 is presented below.

			Gross Unrealized
(in thousands)	Amortized Cost		Gains		(Losses)			Fair Value
2021
U.S. government agencies	$	19,824	$	60	$	(202	)	$	19,682
Mortgage-backed securities		82,517		94		(1,098	)		81,513
Obligations of states and political subdivisions		44,732		525		(120	)		45,137
Collateralized mortgage obligations		537		3		—			540
Corporate bonds		2,000		—		(65	)		1,935
Total available-for-sale	$	149,610	$	682	$	(1,485	)	$	148,807
2020
U.S. government agencies	$	32,069	$	111	$	(352	)	$	31,828
Mortgage-backed securities		23,601		338		(7	)		23,932
Obligations of states and political subdivisions		57,137		1,291		(8	)		58,420
Collateralized mortgage obligations		748		21		—			769
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 December 31, 2021 and 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.

	2021								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	$	491	$	516	$	—	$	—	$	494	$	543	$	—	$	—
After one but within five years		951		999		507		522		2,143		2,351		1,141		1,206
After five years through ten years		3,504		3,682		3,697		3,748		2,755		3,023		8,340		8,599
After ten years		—		—		40,528		40,867		2,587		2,838		47,656		48,615

Investment securities not due at a single maturity date:
U.S. government agencies		—		—		19,824		19,682		—		—		32,069		31,828
Mortgage-backed securities		—		—		82,517		81,513		—		—		23,601		23,932
Collateralized mortgage obligations		—		—		537		540		—		—		748		769
Corporate bonds		—		—		2,000		1,935		—		—		—		—
Total	$	4,946	$	5,197	$	149,610	$	148,807	$	7,979	$	8,755	$	113,555	$	114,949

Sales proceeds of investment securities and gross realized gains and/or losses are shown in the following table:

(in thousands)	2021		2020
Available-for-sale:
Sales proceeds	$	47,096	$	46,406
Gross realized gains		724		1,438

Pledged investment securities are shown in the following table:

(in thousands)	2021		2020
Pledged to the State of California:
Secure deposits of public funds and borrowings	$	63,363	$	52,897
Total pledged investment securities	$	63,363	$	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 December 31, 2021 and 2020:


	< 12 continuous months					≥ 12 continuous months					Total securities in a loss position
(in thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
2021
U.S. government agencies	$	—	$	—		$	13,399	$	(202	)	$	13,399	$	(202	)
Mortgage-backed securities		73,972		(1,046	)		1,400		(52	)		75,372		(1,098	)
Obligations of states and political subdivisions		14,014		(112	)		407		(8	)		14,421		(120	)
Corporate bonds		1,935		(65	)		—		—			1,935		(65	)
Total temporarily impaired securities	$	89,921	$	(1,223	)	$	15,206	$	(262	)	$	105,127	$	(1,485	)
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 91 and 31 securities in unrealized loss positions at December 31, 2021 and 2020, respectively, which were all classified as available-for-sale. As of December 31, 2021, the investment portfolio included 16 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 OTTI. 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 December 31, 2021 or 2020.

Obligations issued or guaranteed by government agencies such as the GNMA and the SBA or GSEs under conservatorship such as the FNMA and the 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 $6,723,000 and $6,232,000 of FHLB stock at December 31, 2021 and 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 December 31, 2021 and 2020. For the years ended December 31, 2021 and 2020, cash dividends received on FHLB capital stock in the amount of $372,000 and $321,000, respectively, were recorded as non-interest income on the consolidated statements of income.

Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans and Allowance for Loan Losses

Note 4: Loans and Allowance for Loan Losses

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)	2021		2020
Real estate:
Commercial	$	1,586,232	$	1,002,497
Commercial land and development		7,376		10,600
Commercial construction		54,214		91,760
Residential construction		7,388		11,914
Residential		28,562		30,431
Farmland		54,805		50,164
Commercial:
Secured		137,062		138,676
Unsecured		21,136		17,526
Paycheck Protection Program (“PPP”)		22,124		147,965
Consumer and other		17,167		4,921
Subtotal		1,936,066		1,506,454
Less: Net deferred loan fees		1,606		3,295
Less: Allowance for loan losses		23,243		22,189
Total loans, net	$	1,911,217	$	1,480,970

Allowance for Loan Losses

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Bank has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: commercial, real estate, and consumer. The Company further sub-divides these segments into classes based on the associated risks within those segments. Commercial loans are divided into the following two classes: unsecured and secured loans. Real estate loans are divided into the following six classes: commercial real estate, commercial land and development, commercial construction, residential construction, residential real estate, and farmland. For each class of loans, management exercises significant judgment to determine the estimation method that fits the credit risk characteristics of its portfolio segment.

The Company uses an internally developed model in this process. Management must use judgment in establishing additional input metrics for the modeling processes. The models and assumptions used to determine the allowance are independently validated and reviewed, at least annually, to ensure that their theoretical foundation, assumptions, data integrity, computational processes, reporting practices, and end-user controls are appropriate and properly documented.

CARES Act and PPP Loans

Pursuant to the CARES Act, which was passed in March 2020, the Company funded over 1,500 loans to eligible small businesses and non-profit organizations who participated in the PPP administered by the SBA. PPP loans have terms of two or five years and earn interest at 1.00%. In addition, the Bank received a fee of 1.00% to 5.00% from the SBA depending on the loan amount, which was netted with loan origination costs and amortized into interest income under the effective yield method over the contractual life of the loan. The recognition of fees and costs is accelerated when the loan is forgiven by the SBA and/or paid off prior to maturity. PPP loans are fully guaranteed by the SBA and are expected to be forgiven by the SBA if they meet the requirements of the program. The balance of PPP loans at December 31, 2021 and 2020 was $22,124,000 and $147,965,000, respectively.

The CARES Act also required the SBA to make payments on new and existing 7(a) loans for a period of six months. These were not deferments but rather full payments of principal and interest for which the borrower will not be responsible for in the future. As of December 31, 2021 and 2020, the principal outstanding on loans receiving one or more of these payments under the CARES Act was $46,601,000 and $51,237,000, respectively.

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 market or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. 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.

Concentrations

The Company’s customers are primarily located in the Greater Sacramento and North Valley regions of California. As of December 31, 2021, approximately 90% of the Company’s loans were real estate related, 9% were commercial, and less than 1% were consumer.

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: (i) a history of losses or events that threaten the borrower’s viability; (ii) a property with significant depreciation and/or marketability concerns; or (iii) 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 December 31, 2021:

Schedule of Loan by credit quality

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	1,575,006	$	1,970	$	9,256	$	—	$	1,586,232
Commercial land and development		7,376		—		—		—		7,376
Commercial construction		48,288		5,926		—		—		54,214
Residential construction		7,388		—		—		—		7,388
Residential		28,384		—		178		—		28,562
Farmland		54,805		—		—		—		54,805

Commercial:
Secured		135,131		751		1,180		—		137,062
Unsecured		21,136		—		—		—		21,136
PPP		22,124		—		—		—		22,124

Consumer		17,167		—		—		—		17,167

Total	$	1,916,805	$	8,647	$	10,614	$	—	$	1,936,066

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	$	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 December 31, 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	$	—	$	—	$	—	$	1,586,232	$	1,586,232
Commercial land and development		—		—		—		7,376		7,376
Commercial construction		—		—		—		54,214		54,214
Residential construction		—		—		—		7,388		7,388
Residential		—		—		—		28,562		28,562
Farmland		—		—		—		54,805		54,805

Commercial:
Secured		—		—		—		137,062		137,062
Unsecured		—		—		—		21,136		21,136
PPP		—		—		—		22,124		22,124

Consumer and other		334		—		334		16,833		17,167

Total loans	$	334	$	—	$	334	$	1,935,732	$	1,936,066

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, 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 December 31, 2021 and 2020 consisted of the following:

(in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
2021
Real estate:
Commercial	$	122	$	122	$	—	$	130	$	—
Residential		178		178		—		181		—
Commercial:
Secured		288		288		172		306		—
Total impaired loans	$	588	$	588	$	172	$	617	$	—
2020
Real estate:
Commercial	$	137	$	137	$	—	$	69	$	—
Residential		183		183		—		92		—
Commercial:
Secured		132		132		—		65		—
Total impaired loans	$	452	$	452	$	—	$	226	$	—

No collateral dependent loans were in process of foreclosure at December 31, 2021 or 2020. In addition, the weighted average loan-to-value of impaired, collateral dependent loans was approximately 70.67% and 50.51% at December 31, 2021 and 2020, respectively.

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

(in thousands)	2021		2020
Real estate:
Commercial	$	122	$	137
Residential		178		183
Commercial:
Secured		288		132
Total non-accrual loans	$	588	$	452

The amount of foregone interest income related to non-accrual loans was $33,000 and $35,000 for the years ended December 31, 2021 and 2020, respectively.

Troubled Debt Restructuring

The Company’s loan portfolio may include certain loans that have been modified in a 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 effective 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 December 31, 2021 or 2020.

The CARES Act, as amended, specified that to be eligible not to be considered a TDR, a loan modification must be (i) related to the COVID-19 pandemic; (ii) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (iii) executed between March 1, 2020, and the earlier of: (i) 60 days after the date of termination of the federal national emergency; or (ii) January 1, 2022. 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 December 31, 2021, six borrowing relationships with six loans totaling $12,156,000 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
2021
Beginning balance	$	9,358	$	77		$	821		$	87		$	220		$	615		$	9,476		$	179	$	—	$	632		$	724	$	22,189
Charge-offs		—		—			—			—			—			—			(822	)		—		—		(321	)		—		(1,143	)
Recoveries		—		—			—			—			—			—			263			—		—		234			—		497
Provision (recapture)		3,511		(27	)		(450	)		(37	)		(28	)		30			(2,058	)		28		—		344			387		1,700
Ending balance	$	12,869	$	50		$	371		$	50		$	192		$	645		$	6,859		$	207	$	—	$	889		$	1,111	$	23,243
2020
Beginning balance	$	6,331	$	109		$	661		$	116		$	224		$	1,382		$	4,976		$	88	$	—	$	601		$	427	$	14,915
Charge-offs		—		—			—			—			—			—			(1,604	)		—		—		(559	)		—		(2,163	)
Recoveries		—		—			—			—			90			—			176			—		—		171			—		437
Provision (recapture)		3,027		(32	)		160			(29	)		(94	)		(767	)		5,928			91		—		419			297		9,000
Ending balance	$	9,358	$	77		$	821		$	87		$	220		$	615		$	9,476		$	179	$	—	$	632		$	724	$	22,189

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
2021
Ending allowance balance allocated to:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	172	$	—	$	—	$	—	$	—	$	172
Loans collectively evaluated for impairment		12,869		50		371		50		192		645		6,687		207		—		889		1,111		23,071
Ending balance	$	12,869	$	50	$	371	$	50	$	192	$	645	$	6,859	$	207	$	—	$	889	$	1,111	$	23,243
Loans:
Ending balance individually evaluated for impairment	$	122	$	—	$	—	$	—	$	178	$	—	$	288	$	—	$	—	$	—	$	—	$	588
Ending balance collectively evaluated for impairment		1,586,110		7,376		54,214		7,388		28,384		54,805		136,774		21,136		22,124		17,167		—		1,935,478
Ending balance	$	1,586,232	$	7,376	$	54,214	$	7,388	$	28,562	$	54,805	$	137,062	$	21,136	$	22,124	$	17,167	$	—	$	1,936,066

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

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 $941,160,000 and $1,093,513,000 at December 31, 2021 and 2020, respectively. In addition, the Company pledges eligible Tenants in Common loans, which totaled $33,391,000 and $61,635,000 at December 31, 2021 and 2020, respectively, to secure its borrowing capacity with the Federal Reserve Bank of San Francisco. See Note 9, Long Term Debt and Other Borrowings, for further discussion of these borrowings.

Premises and Equipment, Net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Premises and Equipment, Net

Note 5: Premises and Equipment, Net

Premises and equipment, net, were as follows as of December 31, 2021 and 2020:

Schedule of Premises and Equipment

(in thousands)	2021		2020
Furniture, fixtures, and equipment	$	3,314	$	3,057
Tenant improvements		1,973		2,027
Premises and Equipment, Gross		5,287		5,084
Less: Accumulated depreciation and amortization		3,514		3,421
Premises and equipment, net	$	1,773	$	1,663

Depreciation expense for occupancy, furniture, fixtures, and equipment was $607,000 and $461,000 for the years ended December 31, 2021 and 2020, respectively.

Bank-owned Life Insurance

12 Months Ended

Dec. 31, 2021

Investments, All Other Investments [Abstract]

Bank-owned Life Insurance

Note 6: Bank-owned Life Insurance

The Company owns life insurance policies on the lives of certain current and former officers designated by the board of directors to fund our employee benefit programs. Death benefits provided under the specific terms of these insurance policies are estimated to be $26,956,000 at December 31, 2021. The benefits to employees’ beneficiaries are limited to each employee’s active service period. The investment in BOLI policies is reported at their cash surrender value, net of surrender charges, of $11,203,000 and $8,662,000 at December 31, 2021 and 2020, respectively. The cash surrender value includes both the original premiums paid for the life insurance policies and the accumulated accretion of policy income since inception of the policies, net of mortality costs and other fees. Income of $237,000 and $220,000 was recognized on these life insurance policies for the years ended December 31, 2021 and 2020, respectively.

Interest Receivable and Other Assets

12 Months Ended

Dec. 31, 2021

Interest Receivable And Other Assets

Interest Receivable and Other Assets

Note 7: Interest Receivable and Other Assets

Interest receivable and other assets consisted of the following as of December 31, 2021 and 2020:

(in thousands)	2021		2020
Interest receivable	$	5,332	$	5,422
Equity investments		5,741		3,757
Servicing assets		2,215		2,083
Other assets		8,340		3,030
Interest Receivable and Other Assets	$	21,628	$	14,292

Servicing assets represent the assets related to servicing loans for others, including collecting payments, maintaining escrow accounts, disbursing payments to investors, and conducting foreclosure proceedings. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers. The Company serviced loans with unpaid principal balances of $194,649,000 and $187,834,000 as of December 31, 2021 and 2020, respectively, on behalf of others.

Interest-Bearing Deposits

12 Months Ended

Dec. 31, 2021

Interest-bearing Deposits

Interest-Bearing Deposits

Note 8: Interest-Bearing Deposits

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

Schedule of Interest-bearing deposits

(in thousands)	2021		2020
Savings	$	88,536	$	49,714
Money market		912,558		839,053
Interest checking accounts		278,406		146,553
Time, $250 or more		77,868		7,568
Other time		26,404		40,034
Total interest-bearing deposits	$	1,383,772	$	1,082,922

Time deposits totaled $104,272,000 and $47,602,000 as of December 31, 2021 and 2020, respectively. As of December 31, 2021, scheduled maturities of time deposits for the next five years were as follows:

Schedule of Maturities of Time Deposits

(in thousands)
2022	$	103,334
2023		911
2024		26
2025		—
2026		1
Total time deposits	$	104,272

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. There were no one-way deposits at December 31, 2021 and 2020. The composition of network deposits as of December 31, 2021 and 2020 was as follows:

(in thousands)	2021		2020
CDARS	$	22,411	$	35,534
ICS		307,636		261,127
Total network deposits	$	330,047	$	296,661

Interest expense recognized on interest-bearing deposits for the years ended December 31, 2021 and 2020 consisted of the following:

(in thousands)	2021		2020
Savings	$	74	$	94
Money market		1,797		5,750
Interest checking accounts		155		374
Time, $250 or more		42		797
Other time		131		392
Total interest expense on interest-bearing deposits	$	2,199	$	7,407

Long Term Debt and Other Borrowings

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long Term Debt and Other Borrowings

Note 9: Long Term Debt and Other Borrowings

Subordinated notes: On November 8, 2019, the Company completed a private placement of $3,750,000 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, for 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 (3.75% as of December 31, 2021) until maturity. The notes include a right of prepayment, on or after September 30, 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 $25,000,000 in principal of fixed-to-floating rate subordinated notes to certain qualified investors, of which $8,000,000 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, for 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 (4.25% as of December 31, 2021) until maturity. The notes include a right of prepayment, on or after September 28, 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 $642,000, of which $280,000 has been amortized through December 31, 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 December 31, 2021 and 2020, the Company’s subordinated debt carrying value was $28,386,000 and $28,320,000, respectively.

Other borrowings: The Company has an agreement with the FHLB that 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 $696,285,000 at December 31, 2021 and $519,274,000 at December 31, 2020. At December 31, 2021 and 2020, the Company had no outstanding borrowings. As of December 31, 2021 and 2020, the Company had letters of credit issued on its behalf totaling $420,500,000 and $293,500,000, respectively, as discussed below.

As of December 31, 2021, letters of credit totaling $80,500,000 were pledged to secure State of California deposits and $340,000,000 were pledged to secure local agency deposits. As of December 31, 2020, letters of credit totaling $13,500,000 were pledged to secure State of California deposits and $280,000,000 were pledged to secure local agency deposits. The letters of credit issued reduced the Company’s available borrowing capacity to $275,785,000 and $284,810,000 as of December 31, 2021 and 2020, respectively.

At December 31, 2021, the Company had five unsecured federal funds lines of credit totaling $150,000,000 with five of its correspondent banks, respectively. At December 31, 2020, the Company had three unsecured federal funds lines of credit totaling $75,000,000 with three of its correspondent banks, respectively. There were no amounts outstanding at December 31, 2021 and 2020.

At December 31, 2021 and 2020, the Company had the ability to borrow from the Federal Reserve Discount Window. At December 31, 2021 and 2020, the borrowing capacity under this arrangement was $16,999,000 and $25,881,000, respectively. There were no amounts outstanding at December 31, 2021 and 2020. The borrowing line is secured by liens on the Company’s construction and agricultural loan portfolios.

401(k) Benefit Plan

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

401(k) Benefit Plan

Note 10: 401(k) Benefit Plan

A 401(k) benefit plan covers substantially all employees and allows voluntary employee contributions up to the lesser of 80% of compensation or the annually adjusted IRS dollar limit. These voluntary contributions are matched equal to 100% of the first 3% of the employee’s compensation contributed and 50% of contributions exceeding 3% of eligible compensation, not to exceed 5% of the total eligible compensation. The employees’ voluntary contributions and the Company’s matching contributions are 100% vested immediately. The expense related to matching employees’ contributions for 2021 and 2020 was $593,000 and $465,000, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 70
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (q)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (l)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 11: Income Taxes

The Company terminated its status as a Subchapter S corporation as of May 5, 2021, in connection with its 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.

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 $4,638,000 increase to the net deferred tax asset to $5,370,000 and a reduction to the provision for income taxes of $4,638,000 during the year ended December 31, 2021.

The provision for income tax for the years ended December 31, 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:

(in thousands)	2021			2020
Statutory U.S. federal income tax	$	9,901		$	7,824
Increase (decrease) resulting from:
Benefit of S Corporation status		(4,884	)		(7,824	)
State taxes		4,045			1,327
Deferred tax asset adjustment		(4,638	)		—
Other		283			—
Provision for income taxes	$	4,707		$	1,327

For the year ended December 31, 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.

The components of the consolidated provision for income taxes are as follows:

(in thousands)	2021			2020
Current tax expense
Federal	$	6,178		$	—
State		2,530			1,468
Current	$	8,708		$	1,468

Deferred tax benefit
Federal	$	(3,561	)	$	—
State		(440	)		(141	)
Deferred	$	(4,001	)		(141	)
Provision for income taxes	$	4,707		$	1,327

Deferred tax assets and liabilities were due to the following as of December 31, 2021 and 2020:

(in thousands)	2021			2020
Deferred tax assets:
Allowance for credit losses	$	7,398		$	777
Supplemental employee retirement plan		521			52
Gain on available-for-sale assets		151			5
Net unrealized loss on securities available-for-sale		237			—
Accrual to cash adjustment		—			13
Depreciation		—			43
Other		562			—
Deferred tax assets		8,869			890
Deferred tax liabilities:
Deferred loan fees		(2,927	)		(177	)
Net unrealized gain on securities available-for-sale		—			(49	)
State tax		(379	)		—
Depreciation		(419	)		—
Other		(228	)		(31	)
Deferred tax liabilities		(3,953	)		(257	)
Net deferred tax asset	$	4,916		$	633

No deferred tax asset valuation allowance was established during 2021 or 2020, as management believes it is more likely than not the Company will realize the benefits of these deductible differences as of December 31, 2021 and 2020.

No unrecognized tax benefits were outstanding as of December 31, 2021 or 2020. The Company files tax returns in the U.S. federal and California state jurisdictions. The Company is no longer subject to examinations for years before 2017.

There were no interest or penalties in 2021 and 2020. It is the Company’s policy to record such accruals in its income taxes accounts.

During 2021, the Company paid approximately $27,000,000 to shareholders of record as of May 3, 2021, for the Accumulated Adjustments Account (“AAA”) payout under the Company’s Tax Sharing Agreement. The AAA represents previously taxed, but undistributed, earnings. As of December 31, 2021, the balance of the Company’s AAA was estimated to be approximately $4,877,000 and is subject to adjustment upon completion of the 2021 tax return, which could be material. The balance in the AAA account represents the remaining amount of previously taxed but undistributed earnings of the Company.

- 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
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: 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(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions

Note 12: Related Party Transactions

During the normal course of business, the Company may enter into transactions with related parties, including directors, executive officers, principal shareholders, and their businesses or affiliates. 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 the Company. Likewise, these transactions do not involve more than the normal risk of collectability or present other unfavorable features. The following is a summary of loans to related parties in 2021 and 2020:

Schedule of Related Party Transactions

(in thousands)	2021			2020
Beginning balance	$	2,048		$	1,348
New loans or advance		7,828			280
Loans issued in prior years to new related parties		—			695
Repayments		(458	)		(275	)
Ending balance	$	9,418		$	2,048

At December 31, 2021 and 2020, deposits from related parties (directors, executive officers, and principal shareholders) totaled $32,410,000 and $42,466,000, respectively. Property management fees totaling $12,000 and $27,000 in 2021 and 2020, respectively, were paid to an entity owned by some of the Company’s directors.

During 2021, nine of the Company’s directors were each granted 4,500 fully vested shares of the Company’s stock for the payment of director fees in addition to their standard cash compensation, totaling 40,500 shares with a combined fair value of $810,000, and one director was granted 1,140 fully vested shares of the Company’s stock, with a fair value of $36,000, upon retirement. Additionally, during 2021, ten directors purchased a total of 190,071 shares for $3,985,000. During 2020, eight of the Company’s directors were each granted 2,000 fully vested shares of the Company’s stock for the payment of director fees in addition to their standard cash compensation, totaling 16,000 shares with a combined fair value of $252,000. Additionally, during 2020, two new directors purchased 50,000 shares for $900,000.

Additional transactions with related parties are described in Note 15, Commitments and Contingencies.

Equity Incentive Plan

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Equity Incentive Plan

Note 13: Equity Incentive Plan

In April 2021, the Company’s board of directors and shareholders approved the Five Star Bancorp 2021 Equity Incentive Plan (the “Equity Incentive Plan”). The Equity Incentive Plan provides for the grant of stock options, stock appreciation rights, performance awards, restricted stock, restricted stock units, and other stock-based awards that the Compensation Committee determines are consistent with the purpose of the Equity Incentive Plan and the interests of the Company. Awards may be granted to the Company’s executives and other key employees, directors, and other service providers, and are designed to align the interests of the Equity Incentive Plan’s participants with the interests of our shareholders. The stock options granted under the Equity Incentive Plan may be either non-statutory stock options or incentive stock options. There were no stock options outstanding at December 31, 2021 or 2020, respectively.

The total number of shares of our common stock reserved and available for grant and issuance pursuant to the Equity Incentive Plan will not exceed 1,700,000 shares. Each of these shares may be issued as an incentive stock option. The Equity Incentive Plan does not contain an “evergreen” provision pursuant to which shares authorized for issuance may be automatically replenished.

Stock-Based Compensation

The Company’s stock-based compensation consists of RSAs granted under its historical stock-based incentive arrangement (the “Historical Incentive Plan”) and RSAs issued under the Equity Incentive Plan. The Historical Incentive Plan consisted of RSAs for certain executive officers of the Company. The arrangement provided that these executive officers would receive shares of restricted common stock of the Company that vested over three years, with the number of shares granted based upon achieving certain performance objectives. These objectives included, but were not limited to, net income adjusted for the provision for loan losses, deposit growth, efficiency ratio, net interest margin, and asset quality. Compensation expense for RSAs granted under the Historical Incentive Plan 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 174,347 and 11,398 restricted shares during the years ended December 31, 2021 and 2020, respectively. In addition, 4,522 and no restricted shares were forfeited during the years ended December 31, 2021 and 2020, respectively. Non-cash stock compensation expense recognized for the years ended December 31, 2021 and 2020 was $1,440,000 and $568,000, respectively.

In 2021, the Company granted a total of 41,640 fully vested shares to members of the board of directors as compensation for their service. In 2020, the Company granted 2,000 fully vested shares to the Chief Executive Officer for service as a member of the board of directors and 1,250 fully vested shares to another officer as a discretionary grant.

At December 31, 2021 and 2020, respectively, there were 127,751 and 11,568 unvested restricted shares. As of December 31, 2021, there was approximately $2,204,000 of unrecognized compensation expense related to the 127,751 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 years ended December 31, 2021 and 2020 was immaterial.

The following table summarizes information about unvested restricted shares:


	2021					2020
	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Beginning of the period balance		11,568		$	21.25		15,794		$	21.03
Shares granted		174,347			19.97		11,398			20.14
Shares vested		(53,642	)		20.35		(15,624	)		20.23
Shares forfeited		(4,522	)		19.33		—			—
End of the period balance		127,751		$	19.95		11,568		$	21.25

Shareholders’ Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Shareholders’ Equity

Note 14: Shareholders’ Equity

Dividends

During the year ended December 31, 2021, the Company declared cash dividends on its common shares totaling $24,975,000. On May 20, 2021, as a result of the Company’s conversion to a C Corporation, the board of directors declared an aggregate distribution of $26,967,000 for the AAA payout, which is described in further detail in Note 11, Income Taxes, and the Company reclassified the resulting retained deficit related to S Corporation activities to common stock.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: 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(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15: 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)	2021		2020
Commercial lines of credit	$	137,354	$	107,231
Undisbursed construction loans		46,584		50,442
Undisbursed commercial real estate loans		47,793		39,946
Agricultural lines of credit		9,955		11,553
Undisbursed agricultural real estate loans		3,427		5,945
Other		3,764		920
Total commitments and standby letters of credit	$	248,877	$	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 $100,000 as of December 31, 2021 and 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 89.31% of the Company’s loan portfolio at December 31, 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 December 31, 2021, the Company had 64 deposit relationships that exceeded $5,000,000 each, totaling $1,166,728,000, or approximately 51.04% of total deposits. The Company’s largest single deposit relationship at December 31, 2021 totaled $154,988,000, or approximately 6.78% 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 the Company’s large depositors.

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 $147,219,000 and $118,003,000 at December 31, 2021 and 2020, respectively.

Leases

The Company leases office space for its banking operations under non-cancelable operating leases of various terms. The leases expire at various 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, 2022.

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 $140,000 and $225,000 for the years ended December 31, 2021 and 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 December 31, 2021.

(in thousands)
2022	$	1,025
2023		978
2024		951
2025		733
2026		604
Thereafter		1,094
Total	$	5,385
Weighted average remaining term (in years)		4.64

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.

Capital Requirements and Restrictions on Retained Earnings

12 Months Ended

Dec. 31, 2021

Capital Requirements and Restrictions on Retained Earnings

Note 16: Capital Requirements and Restrictions on Retained Earnings

The Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.

The capital amounts and the Bank’s prompt corrective action classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are generally not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the below table) of total capital, Tier 1 capital, and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets and of Tier 1 capital to average assets. The Company operates under the Small Bank Holding Company Policy Statement, and, accordingly, is exempt from the Federal Reserve’s generally applicable risk-based capital ratio and leverage ratio requirements. The Bank is required to meet a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.00% (a minimum of 4.50% plus a capital conservation buffer of 2.50%), a Tier 1 capital to risk-weighted assets ratio of at least 8.50% (a minimum of 6.00% plus a capital conservation buffer of 2.50%), a total capital to risk-weighted assets ratio of at least 10.50% (a minimum of 8.00% plus a capital conservation buffer of 2.50%), and a Tier 1 leverage ratio of at least 4.00%. Management believes that, as of December 31, 2021, the Company and the Bank met all capital adequacy requirements to which they are subject.

As of December 31, 2021, the Bank was categorized as “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the below table. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The principal source of cash for the Company is dividends from the Bank. Dividends from the Bank to the Company are restricted under California law to the lesser of: (a) the Bank’s retained earnings; or (b) the Bank’s net income for the latest three fiscal years, less dividends previously declared during that period. As of December 31, 2021 and 2020, the maximum amount available for dividend distribution under this restriction was approximately $15,464,000 and $15,624,000, respectively. If a proposed dividend exceeds the limit, the Bank may still pay a dividend to the Holding Company if it obtains approval from the California Department of Financial Protection and Innovation and the dividend does not exceed the greater of: (i) the retained earnings of the Bank; (ii) the net income of the Bank for its last fiscal year; or (iii) the net income of the Bank for its current fiscal year.

The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the following table:

Capital Ratios for Bancorp Actual Ratio Required for Capital
Adequacy Purposes¹ Ratio to be Well-
Capitalized under Prompt
Corrective Action
Provisions

(dollars in thousands) Amount Ratio Amount Ratio Amount Ratio

2021

Total capital (to risk-weighted assets) $ 285,128 13.98% $ 163,177 ≥ 8.00% N/A N/A

Tier 1 capital (to risk-weighted assets) $ 233,397 11.44% $ 122,382 ≥ 6.00% N/A N/A

Common equity tier 1 capital (to risk-weighted assets) $ 233,397 11.44% $ 91,787 ≥ 4.50% N/A N/A

Tier 1 leverage $ 233,397 9.47% $ 98,600 ≥ 4.00% N/A N/A

2020

Total capital (to risk-weighted assets) $ 176,861 12.18% $ 116,138 ≥ 8.00% N/A N/A

Tier 1 capital (to risk-weighted assets) $ 130,347 8.98% $ 87,103 ≥ 6.00% N/A N/A

Common equity tier 1 capital (to risk-weighted assets) $ 130,347 8.98% $ 65,327 ≥ 4.50% N/A N/A

Tier 1 leverage $ 130,347 6.58% $ 79,204 ≥ 4.00% N/A N/A

Capital Ratios for the Bank Actual Ratio Required for Capital
Adequacy Purposes Ratio to be Well-
Capitalized under Prompt
Corrective Action
Provisions

(dollars in thousands) Amount Ratio Amount Ratio Amount Ratio

2021

Total capital (to risk-weighted assets) $ 279,152 13.69% $ 163,078 ≥ 8.00% $ 203,848 ≥ 10.00%

Tier 1 capital (to risk-weighted assets) $ 255,807 12.55% $ 122,309 ≥ 6.00% $ 163,078 ≥ 8.00%

Common equity tier 1 capital (to risk-weighted assets) $ 255,807 12.55% $ 91,731 ≥ 4.50% $ 132,501 ≥ 6.50%

Tier 1 leverage $ 255,807 10.38% $ 98,555 ≥ 4.00% $ 123,193 ≥ 5.00%

2020

Total capital (to risk-weighted assets) $ 174,002 11.99% $ 116,114 ≥ 8.00% $ 145,143 ≥ 10.00%

Tier 1 capital (to risk-weighted assets) $ 155,808 10.73% $ 87,086 ≥ 6.00% $ 116,114 ≥ 8.00%

Common equity tier 1 capital (to risk-weighted assets) $ 155,808 10.73% $ 65,314 ≥ 4.50% $ 94,343 ≥ 6.50%

Tier 1 leverage $ 155,808 7.87% $ 79,199 ≥ 4.00% $ 98,998 ≥ 5.00%

¹	Presented as if Bancorp were subject to Basel III capital requirements. The Company operates under the Small Bank Holding Company Policy Statement and therefore is not currently subject to generally applicable capital adequacy requirements.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Note 17: Fair Value of Assets and Liabilities

The following table summarizes the Company’s assets and liabilities that were carried 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
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	$	148,807	$	—	$	148,807	$	—		OCI
Derivatives – interest rate swap		92		—		92		—		NI
Liabilities:
Derivatives – interest rate swap		92		—		92		—		NI

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

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 December 31, 2021 and 2020, there were no Level 1 or Level 3 securities and no transfers between Level 1 and Level 2 classifications for assets or liabilities measured at fair value on a recurring basis.

The Company’s investment portfolio service bureau has developed a model for pricing available-for-sale debt securities. Information such as historical and current performance of the underlying collateral, deferral/default rates, collateral coverage ratios, break-even yield calculations, cash flow projections, liquidity, and credit premiums required by a market participant, as well as financial trend analysis with respect to the individual issuing financial institutions and insurance companies, are utilized in determining individual security valuations. Due to current market conditions, as well as the limited trading activity of the securities, the market value of the securities is highly sensitive to assumption changes and market volatility.

The Company’s derivative is comprised of an interest rate swap for a structured lending arrangement and is reported at fair value utilizing Level 2 inputs. The Company obtains fair values from financial institutions that utilize internal models with observable market data inputs to estimate the values of these instruments (Level 2 inputs).

The fair value of collateral dependent impaired loans and other real estate is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also incorporates assumptions regarding market trends or other relevant factors and selling and commission costs ranging from 5.00% to 7.00%. Such adjustments and assumptions are typically significant and result in a Level 3 classification of the inputs for determining fair value.

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 OREO. As of December 31, 2021 and 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 December 31, 2021 and 2020. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates.

Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. 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 BOLI.


	December 31, 2021						December 31, 2020
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy		Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets:
Cash and cash equivalents	$	425,329	$	425,329		Level 1	$	290,493	$	290,493		Level 1
Time deposits in banks		14,464		14,464		Level 1		23,705		23,705		Level 1
Securities available-for-sale		148,807		148,807		Level 2		114,949		114,949		Level 2
Securities held-to-maturity		4,946		5,197		Level 3		7,979		8,755		Level 3
Loans held for sale		10,671		11,217		Level 2		4,820		5,012		Level 2
Loans held for investment		1,911,217		1,893,431		Level 3		1,480,970		1,464,794		Level 3
FHLB stock and other investments		12,464		N/A		N/A		9,989		N/A		N/A
Interest receivable		5,332		5,332		Level 2		5,422		5,422		Level 2
Interest rate swap		92		92		Level 2		149		149		Level 2
Financial liabilities:
Deposits		2,285,890		2,210,555		Level 2		1,784,001		1,785,944		Level 2
Interest payable		23		23		Level 2		75		75		Level 2
Interest rate swap		92		92		Level 2		149		149		Level 2
Subordinated notes		28,386		28,386		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 December 31, 2021 and 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, which use 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.

Commitments to extend credit: Commitments to extend credit are primarily for adjustable rate loans. For these commitments, there are no differences between the committed amounts and their fair values. Commitments to fund fixed rate loans are at rates which approximate fair value at each reporting date.

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

Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Parent Company Only Condensed Financial Information

Note 18: Parent Company Only Condensed Financial Information

CONDENSED BALANCE SHEETS
December 31, 2021 and 2020
(In thousands)

	2021		2020
ASSETS
Cash and cash equivalents	$	5,636	$	3,555
Investment in banking subsidiary		257,456		159,236
Other assets		922		291
Total assets	$	264,014	$	163,082

LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated notes and other liabilities	$	28,968	$	29,307
Shareholders’ equity		235,046		133,775
Total liabilities and shareholders’ equity	$	264,014	$	163,082

CONDENSED STATEMENTS OF INCOME

Years ended December 31, 2021 and 2020
(In thousands)

	2021		2020
Dividends from banking subsidiary	$	27,630	$	28,077
Interest expense		1,773		1,773
Other expense		3,559		1,023
Income before income tax and undistributed banking subsidiary income		22,298		25,281
Income tax benefit		812		10
Equity in undistributed banking subsidiary income		19,331		10,637
Net income	$	42,441	$	35,928

CONDENSED STATEMENTS OF CASH FLOWS

Years ended December 31, 2021 and 2020
(In thousands)

	2021			2020
Cash flows from operating activities:
Net income	$	42,441		$	35,928
Adjustments to reconcile net income to net cash provided by operating activities:
Stock compensation expense		594			316
Stock issued to directors		846			252
Equity in undistributed banking subsidiary income		(19,331	)		(10,637	)
Amortization of subordinated notes issuance costs		66			67
Change in other assets		(631	)		(203	)
Change in accrued expenses and other liabilities		(405	)		514
Net cash provided by operating activities		23,580			26,237
Cash flows from investing activities:
Investment in subsidiary		(80,800	)		(13,500	)
Net cash used in investing activities		(80,800	)		(13,500	)
Cash flows from financing activities:
Proceeds from sale of stock		111,243			13,400
Cash dividends paid		(51,942	)		(26,369	)
Net cash provided by financing activities		59,301			(12,969	)
Net change in cash and cash equivalents		2,081			(232	)
Cash and cash equivalents at beginning of period		3,555			3,787
Cash and cash equivalents at end of period	$	5,636		$	3,555

Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 19: Subsequent Events

On January 20, 2022, the board of directors declared a $0.15 per common share dividend for shareholders of record as of February 7, 2022, which was paid on February 14, 2022 in the amount of $2,587,000.

Basis of Presentation (Policies)

12 Months Ended

Dec. 31, 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

Cash and Cash Equivalents

Cash and Cash Equivalents

Securities Available-for-Sale

Securities Available-for-Sale

Securities Held-to-Maturity

Securities Held-to-Maturity

Loans and Allowance for Loan Losses

Loans and Allowance for Loan Losses

Loans are reported at the principal amount outstanding, net of deferred loan fees and costs and the allowance for loan losses. Interest on loans is accrued daily based on the principal outstanding.

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock

Premises and Equipment

Premises and Equipment

Equipment	3-12 years
Furniture and Fixtures	5-10 years
Leasehold Improvements	5-15 years
Automobiles	3-5 years

Other Real Estate

BOLI

Long-Term Assets

Equity Investments

Loss Contingencies

Transfers of Financial Assets

Transfers of Financial Assets

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments

Stock-Based Compensation

Stock-Based Compensation

Supplemental Executive Retirement Plan

Supplemental Executive Retirement Plan

Income Taxes

Income Taxes

Derivatives

Derivatives

Comprehensive Income or Loss

Comprehensive Income or Loss

Earnings Per Share (“EPS”)

Earnings Per Share (“EPS”)

(in thousands, except share and per share data)	2021		2020
Net income	$	42,441	$	35,928
Weighted average basic common shares outstanding		14,972,637		10,063,183
Add: Dilutive effects of assumed vesting of restricted stock		22,576		—
Weighted average diluted common shares outstanding		14,995,213		10,063,183
Income per common share:
Basic EPS	$	2.83	$	3.57
Diluted EPS	$	2.83	$	3.57

Anti-dilutive shares, which are excluded from the dilutive EPS calculation, were deemed to be immaterial.

Schedule of Pro forma Earning Per Share

(in thousands, except share and per share data)	2021			2020
Net income before provision for income taxes - GAAP	$	47,148		$	37,255
Actual/pro forma provision for income taxes		(9,335	)		(11,013	)
Actual/pro forma net income		37,813			26,242
Weighted average basic common shares outstanding		14,972,637			10,063,183
Add: Dilutive effects of assumed vesting of restricted stock		22,576			—
Weighted average diluted common shares outstanding		14,995,213			10,063,183
Income per common share:
Basic EPS	$	2.53		$	2.61
Diluted EPS	$	2.52		$	2.61

Subordinated Notes

Subordinated Notes

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair Value Measurements

Fair Value Measurements

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 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.

As a result, if other assumptions had been used, the Company’s recorded earnings or disclosures could have been materially different from those reflected in these consolidated financial statements.

Subsequent Events

Subsequent Events

The Company has evaluated events and transactions subsequent to December 31, 2021 for recognition or disclosure.

Reclassifications

Reclassifications

Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Useful Life of Premises and Equipment

Basis of Presentation

Equipment	3-12 years
Furniture and Fixtures	5-10 years
Leasehold Improvements	5-15 years
Automobiles	3-5 years

Schedule of Earning Per Share

Basis of Presentation (Details 2)

(in thousands, except share and per share data)	2021		2020
Net income	$	42,441	$	35,928
Weighted average basic common shares outstanding		14,972,637		10,063,183
Add: Dilutive effects of assumed vesting of restricted stock		22,576		—
Weighted average diluted common shares outstanding		14,995,213		10,063,183
Income per common share:
Basic EPS	$	2.83	$	3.57
Diluted EPS	$	2.83	$	3.57

Schedule of Pro forma Earning Per Share

Basis of Presentation (Details 3)

(in thousands, except share and per share data)	2021			2020
Net income before provision for income taxes - GAAP	$	47,148		$	37,255
Actual/pro forma provision for income taxes		(9,335	)		(11,013	)
Actual/pro forma net income		37,813			26,242
Weighted average basic common shares outstanding		14,972,637			10,063,183
Add: Dilutive effects of assumed vesting of restricted stock		22,576			—
Weighted average diluted common shares outstanding		14,995,213			10,063,183
Income per common share:
Basic EPS	$	2.53		$	2.61
Diluted EPS	$	2.52		$	2.61

Investment Securities (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2021 and 2020 is presented below.

Schedule of Securities Held-To-Maturity

Investment Securities

			Gross Unrealized
(in thousands)	Amortized Cost		Gains		(Losses)		Fair Value
2021
Obligations of states and political subdivisions		4,946		251		—		5,197
Total held-to-maturity	$	4,946	$	251	$	—	$	5,197
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 December 31, 2021 and 2020 is presented below.

Investment Securities (Details 2)

			Gross Unrealized
(in thousands)	Amortized Cost		Gains		(Losses)			Fair Value
2021
U.S. government agencies	$	19,824	$	60	$	(202	)	$	19,682
Mortgage-backed securities		82,517		94		(1,098	)		81,513
Obligations of states and political subdivisions		44,732		525		(120	)		45,137
Collateralized mortgage obligations		537		3		—			540
Corporate bonds		2,000		—		(65	)		1,935
Total available-for-sale	$	149,610	$	682	$	(1,485	)	$	148,807
2020
U.S. government agencies	$	32,069	$	111	$	(352	)	$	31,828
Mortgage-backed securities		23,601		338		(7	)		23,932
Obligations of states and political subdivisions		57,137		1,291		(8	)		58,420
Collateralized mortgage obligations		748		21		—			769
Total available-for-sale	$	113,555	$	1,761	$	(367	)	$	114,949

Schedule of Investment Securities by Contractual Maturity

Investment Securities (Details 3)

	2021								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	$	491	$	516	$	—	$	—	$	494	$	543	$	—	$	—
After one but within five years		951		999		507		522		2,143		2,351		1,141		1,206
After five years through ten years		3,504		3,682		3,697		3,748		2,755		3,023		8,340		8,599
After ten years		—		—		40,528		40,867		2,587		2,838		47,656		48,615

Investment securities not due at a single maturity date:
U.S. government agencies		—		—		19,824		19,682		—		—		32,069		31,828
Mortgage-backed securities		—		—		82,517		81,513		—		—		23,601		23,932
Collateralized mortgage obligations		—		—		537		540		—		—		748		769
Corporate bonds		—		—		2,000		1,935		—		—		—		—
Total	$	4,946	$	5,197	$	149,610	$	148,807	$	7,979	$	8,755	$	113,555	$	114,949

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

Sales proceeds of investment securities and gross realized gains and/or losses are shown in the following table:

Investment Securities (Details 4)

(in thousands)	2021		2020
Available-for-sale:
Sales proceeds	$	47,096	$	46,406
Gross realized gains		724		1,438

Pledged investment securities

Pledged investment securities are shown in the following table:

Investment Securities (Details 5)

(in thousands)	2021		2020
Pledged to the State of California:
Secure deposits of public funds and borrowings	$	63,363	$	52,897
Total pledged investment securities	$	63,363	$	52,897

Investment Securities (Details 6)


	< 12 continuous months					≥ 12 continuous months					Total securities in a loss position
(in thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
2021
U.S. government agencies	$	—	$	—		$	13,399	$	(202	)	$	13,399	$	(202	)
Mortgage-backed securities		73,972		(1,046	)		1,400		(52	)		75,372		(1,098	)
Obligations of states and political subdivisions		14,014		(112	)		407		(8	)		14,421		(120	)
Corporate bonds		1,935		(65	)		—		—			1,935		(65	)
Total temporarily impaired securities	$	89,921	$	(1,223	)	$	15,206	$	(262	)	$	105,127	$	(1,485	)
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)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Loan Portfolio

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

Loans and Allowance for Loan Losses

(in thousands)	2021		2020
Real estate:
Commercial	$	1,586,232	$	1,002,497
Commercial land and development		7,376		10,600
Commercial construction		54,214		91,760
Residential construction		7,388		11,914
Residential		28,562		30,431
Farmland		54,805		50,164
Commercial:
Secured		137,062		138,676
Unsecured		21,136		17,526
Paycheck Protection Program (“PPP”)		22,124		147,965
Consumer and other		17,167		4,921
Subtotal		1,936,066		1,506,454
Less: Net deferred loan fees		1,606		3,295
Less: Allowance for loan losses		23,243		22,189
Total loans, net	$	1,911,217	$	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 December 31, 2021:

Schedule of Loan by credit quality

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	1,575,006	$	1,970	$	9,256	$	—	$	1,586,232
Commercial land and development		7,376		—		—		—		7,376
Commercial construction		48,288		5,926		—		—		54,214
Residential construction		7,388		—		—		—		7,388
Residential		28,384		—		178		—		28,562
Farmland		54,805		—		—		—		54,805

Commercial:
Secured		135,131		751		1,180		—		137,062
Unsecured		21,136		—		—		—		21,136
PPP		22,124		—		—		—		22,124

Consumer		17,167		—		—		—		17,167

Total	$	1,916,805	$	8,647	$	10,614	$	—	$	1,936,066

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

[custom:DisclosureLoansAndAllowanceForLoanLossesDetails2Abstract]

(in thousands)	Pass		Watch		Substandard		Doubtful		Total
Real estate:
Commercial	$	1,575,006	$	1,970	$	9,256	$	—	$	1,586,232
Commercial land and development		7,376		—		—		—		7,376
Commercial construction		48,288		5,926		—		—		54,214
Residential construction		7,388		—		—		—		7,388
Residential		28,384		—		178		—		28,562
Farmland		54,805		—		—		—		54,805

Commercial:
Secured		135,131		751		1,180		—		137,062
Unsecured		21,136		—		—		—		21,136
PPP		22,124		—		—		—		22,124

Consumer		17,167		—		—		—		17,167

Total	$	1,916,805	$	8,647	$	10,614	$	—	$	1,936,066

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	$	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 December 31, 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	$	—	$	—	$	—	$	1,586,232	$	1,586,232
Commercial land and development		—		—		—		7,376		7,376
Commercial construction		—		—		—		54,214		54,214
Residential construction		—		—		—		7,388		7,388
Residential		—		—		—		28,562		28,562
Farmland		—		—		—		54,805		54,805

Commercial:
Secured		—		—		—		137,062		137,062
Unsecured		—		—		—		21,136		21,136
PPP		—		—		—		22,124		22,124

Consumer and other		334		—		334		16,833		17,167

Total loans	$	334	$	—	$	334	$	1,935,732	$	1,936,066

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, 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	$	—	$	—	$	—	$	1,586,232	$	1,586,232
Commercial land and development		—		—		—		7,376		7,376
Commercial construction		—		—		—		54,214		54,214
Residential construction		—		—		—		7,388		7,388
Residential		—		—		—		28,562		28,562
Farmland		—		—		—		54,805		54,805

Commercial:
Secured		—		—		—		137,062		137,062
Unsecured		—		—		—		21,136		21,136
PPP		—		—		—		22,124		22,124

Consumer and other		334		—		334		16,833		17,167

Total loans	$	334	$	—	$	334	$	1,935,732	$	1,936,066

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, 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 December 31, 2021 and 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
2021
Real estate:
Commercial	$	122	$	122	$	—	$	130	$	—
Residential		178		178		—		181		—
Commercial:
Secured		288		288		172		306		—
Total impaired loans	$	588	$	588	$	172	$	617	$	—
2020
Real estate:
Commercial	$	137	$	137	$	—	$	69	$	—
Residential		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 December 31, 2021 and 2020:

Loans and Allowance for Loan Losses (Details 5)

(in thousands)	2021		2020
Real estate:
Commercial	$	122	$	137
Residential		178		183
Commercial:
Secured		288		132
Total non-accrual loans	$	588	$	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.


	Real Estate																	Commercial
(in thousands)	Comml		Comml Land and Devel			Comml Const			Resid Const			Resid			Farm- land			Secured			Unsec		PPP		Consu			Unal		Total
2021
Beginning balance	$	9,358	$	77		$	821		$	87		$	220		$	615		$	9,476		$	179	$	—	$	632		$	724	$	22,189
Charge-offs		—		—			—			—			—			—			(822	)		—		—		(321	)		—		(1,143	)
Recoveries		—		—			—			—			—			—			263			—		—		234			—		497
Provision (recapture)		3,511		(27	)		(450	)		(37	)		(28	)		30			(2,058	)		28		—		344			387		1,700
Ending balance	$	12,869	$	50		$	371		$	50		$	192		$	645		$	6,859		$	207	$	—	$	889		$	1,111	$	23,243
2020
Beginning balance	$	6,331	$	109		$	661		$	116		$	224		$	1,382		$	4,976		$	88	$	—	$	601		$	427	$	14,915
Charge-offs		—		—			—			—			—			—			(1,604	)		—		—		(559	)		—		(2,163	)
Recoveries		—		—			—			—			90			—			176			—		—		171			—		437
Provision (recapture)		3,027		(32	)		160			(29	)		(94	)		(767	)		5,928			91		—		419			297		9,000
Ending balance	$	9,358	$	77		$	821		$	87		$	220		$	615		$	9,476		$	179	$	—	$	632		$	724	$	22,189

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
2021
Ending allowance balance allocated to:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	172	$	—	$	—	$	—	$	—	$	172
Loans collectively evaluated for impairment		12,869		50		371		50		192		645		6,687		207		—		889		1,111		23,071
Ending balance	$	12,869	$	50	$	371	$	50	$	192	$	645	$	6,859	$	207	$	—	$	889	$	1,111	$	23,243
Loans:
Ending balance individually evaluated for impairment	$	122	$	—	$	—	$	—	$	178	$	—	$	288	$	—	$	—	$	—	$	—	$	588
Ending balance collectively evaluated for impairment		1,586,110		7,376		54,214		7,388		28,384		54,805		136,774		21,136		22,124		17,167		—		1,935,478
Ending balance	$	1,586,232	$	7,376	$	54,214	$	7,388	$	28,562	$	54,805	$	137,062	$	21,136	$	22,124	$	17,167	$	—	$	1,936,066

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

[custom:DisclosureLoansAndAllowanceForLoanLossesDetails6Abstract]


	Real Estate																	Commercial
(in thousands)	Comml		Comml Land and Devel			Comml Const			Resid Const			Resid			Farm- land			Secured			Unsec		PPP		Consu			Unal		Total
2021
Beginning balance	$	9,358	$	77		$	821		$	87		$	220		$	615		$	9,476		$	179	$	—	$	632		$	724	$	22,189
Charge-offs		—		—			—			—			—			—			(822	)		—		—		(321	)		—		(1,143	)
Recoveries		—		—			—			—			—			—			263			—		—		234			—		497
Provision (recapture)		3,511		(27	)		(450	)		(37	)		(28	)		30			(2,058	)		28		—		344			387		1,700
Ending balance	$	12,869	$	50		$	371		$	50		$	192		$	645		$	6,859		$	207	$	—	$	889		$	1,111	$	23,243
2020
Beginning balance	$	6,331	$	109		$	661		$	116		$	224		$	1,382		$	4,976		$	88	$	—	$	601		$	427	$	14,915
Charge-offs		—		—			—			—			—			—			(1,604	)		—		—		(559	)		—		(2,163	)
Recoveries		—		—			—			—			90			—			176			—		—		171			—		437
Provision (recapture)		3,027		(32	)		160			(29	)		(94	)		(767	)		5,928			91		—		419			297		9,000
Ending balance	$	9,358	$	77		$	821		$	87		$	220		$	615		$	9,476		$	179	$	—	$	632		$	724	$	22,189

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
2021
Ending allowance balance allocated to:
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	172	$	—	$	—	$	—	$	—	$	172
Loans collectively evaluated for impairment		12,869		50		371		50		192		645		6,687		207		—		889		1,111		23,071
Ending balance	$	12,869	$	50	$	371	$	50	$	192	$	645	$	6,859	$	207	$	—	$	889	$	1,111	$	23,243
Loans:
Ending balance individually evaluated for impairment	$	122	$	—	$	—	$	—	$	178	$	—	$	288	$	—	$	—	$	—	$	—	$	588
Ending balance collectively evaluated for impairment		1,586,110		7,376		54,214		7,388		28,384		54,805		136,774		21,136		22,124		17,167		—		1,935,478
Ending balance	$	1,586,232	$	7,376	$	54,214	$	7,388	$	28,562	$	54,805	$	137,062	$	21,136	$	22,124	$	17,167	$	—	$	1,936,066

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

Premises and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Premises and Equipment

Premises and equipment, net, were as follows as of December 31, 2021 and 2020:

Schedule of Premises and Equipment

Premises and Equipment, Net

(in thousands)	2021		2020
Furniture, fixtures, and equipment	$	3,314	$	3,057
Tenant improvements		1,973		2,027
Premises and Equipment, Gross		5,287		5,084
Less: Accumulated depreciation and amortization		3,514		3,421
Premises and equipment, net	$	1,773	$	1,663

Interest Receivable and Other Assets (Tables)

12 Months Ended

Dec. 31, 2021

Interest Receivable And Other Assets

Interest receivable and other assets

Interest receivable and other assets consisted of the following as of December 31, 2021 and 2020:

Interest Receivable and Other Assets

(in thousands)	2021		2020
Interest receivable	$	5,332	$	5,422
Equity investments		5,741		3,757
Servicing assets		2,215		2,083
Other assets		8,340		3,030
Interest Receivable and Other Assets	$	21,628	$	14,292

Interest-Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2021

Interest-bearing Deposits

Schedule of Interest-bearing deposits

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

Schedule of Interest-bearing deposits

Interest Bearing Deposits

(in thousands)	2021		2020
Savings	$	88,536	$	49,714
Money market		912,558		839,053
Interest checking accounts		278,406		146,553
Time, $250 or more		77,868		7,568
Other time		26,404		40,034
Total interest-bearing deposits	$	1,383,772	$	1,082,922

Schedule of Maturities of Time Deposits

Interest Bearing Deposits (Details 2)

(in thousands)
2022	$	103,334
2023		911
2024		26
2025		—
2026		1
Total time deposits	$	104,272

Schedule of Composition of Network Deposits

Interest Bearing Deposits (Details 3)

(in thousands)	2021		2020
CDARS	$	22,411	$	35,534
ICS		307,636		261,127
Total network deposits	$	330,047	$	296,661

Interest expense recognized on interest-bearing deposits

Interest expense recognized on interest-bearing deposits for the years ended December 31, 2021 and 2020 consisted of the following:

Interest Bearing Deposits (Details 4)

(in thousands)	2021		2020
Savings	$	74	$	94
Money market		1,797		5,750
Interest checking accounts		155		374
Time, $250 or more		42		797
Other time		131		392
Total interest expense on interest-bearing deposits	$	2,199	$	7,407

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

The provision for income tax

Income Taxes

(in thousands)	2021			2020
Statutory U.S. federal income tax	$	9,901		$	7,824
Increase (decrease) resulting from:
Benefit of S Corporation status		(4,884	)		(7,824	)
State taxes		4,045			1,327
Deferred tax asset adjustment		(4,638	)		—
Other		283			—
Provision for income taxes	$	4,707		$	1,327

The components of the consolidated provision for income taxes

The components of the consolidated provision for income taxes are as follows:

Income Taxes (Details 2)

(in thousands)	2021			2020
Current tax expense
Federal	$	6,178		$	—
State		2,530			1,468
Current	$	8,708		$	1,468

Deferred tax benefit
Federal	$	(3,561	)	$	—
State		(440	)		(141	)
Deferred	$	(4,001	)		(141	)
Provision for income taxes	$	4,707		$	1,327

Deferred tax assets and liabilities

Deferred tax assets and liabilities were due to the following as of December 31, 2021 and 2020:

Income Taxes (Details 3)

(in thousands)	2021			2020
Deferred tax assets:
Allowance for credit losses	$	7,398		$	777
Supplemental employee retirement plan		521			52
Gain on available-for-sale assets		151			5
Net unrealized loss on securities available-for-sale		237			—
Accrual to cash adjustment		—			13
Depreciation		—			43
Other		562			—
Deferred tax assets		8,869			890
Deferred tax liabilities:
Deferred loan fees		(2,927	)		(177	)
Net unrealized gain on securities available-for-sale		—			(49	)
State tax		(379	)		—
Depreciation		(419	)		—
Other		(228	)		(31	)
Deferred tax liabilities		(3,953	)		(257	)
Net deferred tax asset	$	4,916		$	633

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Related Party Transactions

Related Party Transactions

(in thousands)	2021			2020
Beginning balance	$	2,048		$	1,348
New loans or advance		7,828			280
Loans issued in prior years to new related parties		—			695
Repayments		(458	)		(275	)
Ending balance	$	9,418		$	2,048

Equity Incentive Plan (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

table summarizes information about unvested restricted shares

The following table summarizes information about unvested restricted shares:

Equity Incentive Plan


	2021					2020
	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Beginning of the period balance		11,568		$	21.25		15,794		$	21.03
Shares granted		174,347			19.97		11,398			20.14
Shares vested		(53,642	)		20.35		(15,624	)		20.23
Shares forfeited		(4,522	)		19.33		—			—
End of the period balance		127,751		$	19.95		11,568		$	21.25

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Unfunded Loan Commitments and Standby Letter of Credit

Commitments and Contingencies

(in thousands)	2021		2020
Commercial lines of credit	$	137,354	$	107,231
Undisbursed construction loans		46,584		50,442
Undisbursed commercial real estate loans		47,793		39,946
Agricultural lines of credit		9,955		11,553
Undisbursed agricultural real estate loans		3,427		5,945
Other		3,764		920
Total commitments and standby letters of credit	$	248,877	$	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 December 31, 2021.

Commitments and Contingencies (Details 2)

(in thousands)
2022	$	1,025
2023		978
2024		951
2025		733
2026		604
Thereafter		1,094
Total	$	5,385
Weighted average remaining term (in years)		4.64

Capital Requirements and Restrictions on Retained Earnings (Tables)

12 Months Ended

Dec. 31, 2021

The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the following table:

Capital Requirements and Restrictions on Retained Earnings

Capital Ratios for Bancorp	Actual Ratio				Required for Capital Adequacy Purposes¹				Ratio to be Well- Capitalized under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
2021
Total capital (to risk-weighted assets)	$	285,128		13.98%	$	163,177		≥ 8.00%		N/A		N/A
Tier 1 capital (to risk-weighted assets)	$	233,397		11.44%	$	122,382		≥ 6.00%		N/A		N/A
Common equity tier 1 capital (to risk-weighted assets)	$	233,397		11.44%	$	91,787		≥ 4.50%		N/A		N/A
Tier 1 leverage	$	233,397		9.47%	$	98,600		≥ 4.00%		N/A		N/A
2020
Total capital (to risk-weighted assets)	$	176,861		12.18%	$	116,138		≥ 8.00%		N/A		N/A
Tier 1 capital (to risk-weighted assets)	$	130,347		8.98%	$	87,103		≥ 6.00%		N/A		N/A
Common equity tier 1 capital (to risk-weighted assets)	$	130,347		8.98%	$	65,327		≥ 4.50%		N/A		N/A
Tier 1 leverage	$	130,347		6.58%	$	79,204		≥ 4.00%		N/A		N/A

Capital Ratios for the Bank	Actual Ratio				Required for Capital Adequacy Purposes				Ratio to be Well- Capitalized under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
2021
Total capital (to risk-weighted assets)	$	279,152		13.69%	$	163,078		≥ 8.00%	$	203,848		≥ 10.00%
Tier 1 capital (to risk-weighted assets)	$	255,807		12.55%	$	122,309		≥ 6.00%	$	163,078		≥ 8.00%
Common equity tier 1 capital (to risk-weighted assets)	$	255,807		12.55%	$	91,731		≥ 4.50%	$	132,501		≥ 6.50%
Tier 1 leverage	$	255,807		10.38%	$	98,555		≥ 4.00%	$	123,193		≥ 5.00%
2020
Total capital (to risk-weighted assets)	$	174,002		11.99%	$	116,114		≥ 8.00%	$	145,143		≥ 10.00%
Tier 1 capital (to risk-weighted assets)	$	155,808		10.73%	$	87,086		≥ 6.00%	$	116,114		≥ 8.00%
Common equity tier 1 capital (to risk-weighted assets)	$	155,808		10.73%	$	65,314		≥ 4.50%	$	94,343		≥ 6.50%
Tier 1 leverage	$	155,808		7.87%	$	79,199		≥ 4.00%	$	98,998		≥ 5.00%

Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 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 carried 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
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	$	148,807	$	—	$	148,807	$	—		OCI
Derivatives – interest rate swap		92		—		92		—		NI
Liabilities:
Derivatives – interest rate swap		92		—		92		—		NI

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)


	December 31, 2021						December 31, 2020
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy		Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets:
Cash and cash equivalents	$	425,329	$	425,329		Level 1	$	290,493	$	290,493		Level 1
Time deposits in banks		14,464		14,464		Level 1		23,705		23,705		Level 1
Securities available-for-sale		148,807		148,807		Level 2		114,949		114,949		Level 2
Securities held-to-maturity		4,946		5,197		Level 3		7,979		8,755		Level 3
Loans held for sale		10,671		11,217		Level 2		4,820		5,012		Level 2
Loans held for investment		1,911,217		1,893,431		Level 3		1,480,970		1,464,794		Level 3
FHLB stock and other investments		12,464		N/A		N/A		9,989		N/A		N/A
Interest receivable		5,332		5,332		Level 2		5,422		5,422		Level 2
Interest rate swap		92		92		Level 2		149		149		Level 2
Financial liabilities:
Deposits		2,285,890		2,210,555		Level 2		1,784,001		1,785,944		Level 2
Interest payable		23		23		Level 2		75		75		Level 2
Interest rate swap		92		92		Level 2		149		149		Level 2
Subordinated notes		28,386		28,386		Level 3		28,320		28,320		Level 3

Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS
December 31, 2021 and 2020
(In thousands)

Parent Company Only Condensed Financial Information

	2021		2020
ASSETS
Cash and cash equivalents	$	5,636	$	3,555
Investment in banking subsidiary		257,456		159,236
Other assets		922		291
Total assets	$	264,014	$	163,082

LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated notes and other liabilities	$	28,968	$	29,307
Shareholders’ equity		235,046		133,775
Total liabilities and shareholders’ equity	$	264,014	$	163,082

CONDENSED STATEMENTS OF INCOME

CONDENSED STATEMENTS OF INCOME

Years ended December 31, 2021 and 2020
(In thousands)

Parent Company Only Condensed Financial Information (Details 2)

	2021		2020
Dividends from banking subsidiary	$	27,630	$	28,077
Interest expense		1,773		1,773
Other expense		3,559		1,023
Income before income tax and undistributed banking subsidiary income		22,298		25,281
Income tax benefit		812		10
Equity in undistributed banking subsidiary income		19,331		10,637
Net income	$	42,441	$	35,928

CONDENSED STATEMENTS OF CASH FLOWS

CONDENSED STATEMENTS OF CASH FLOWS

Years ended December 31, 2021 and 2020
(In thousands)

Parent Company Only Condensed Financial Information (Details 3)

	2021			2020
Cash flows from operating activities:
Net income	$	42,441		$	35,928
Adjustments to reconcile net income to net cash provided by operating activities:
Stock compensation expense		594			316
Stock issued to directors		846			252
Equity in undistributed banking subsidiary income		(19,331	)		(10,637	)
Amortization of subordinated notes issuance costs		66			67
Change in other assets		(631	)		(203	)
Change in accrued expenses and other liabilities		(405	)		514
Net cash provided by operating activities		23,580			26,237
Cash flows from investing activities:
Investment in subsidiary		(80,800	)		(13,500	)
Net cash used in investing activities		(80,800	)		(13,500	)
Cash flows from financing activities:
Proceeds from sale of stock		111,243			13,400
Cash dividends paid		(51,942	)		(26,369	)
Net cash provided by financing activities		59,301			(12,969	)
Net change in cash and cash equivalents		2,081			(232	)
Cash and cash equivalents at beginning of period		3,555			3,787
Cash and cash equivalents at end of period	$	5,636		$	3,555

Basis of Presentation (Details)	12 Months Ended
Basis of Presentation (Details)	Dec. 31, 2022
Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	12 years
Furniture and Fixtures [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Furniture and Fixtures [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Land Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Land Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Automobiles [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Automobiles [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years

Basis of Presentation (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 42,441	$ 35,928
Weighted average basic common shares outstanding	14,972,637	10,063,183
Add: Dilutive effects of assumed vesting of restricted stock	22,576
Weighted average diluted common shares outstanding	14,995,213	10,063,183
Income per common share:
Basic EPS	$ 2.83	$ 3.57
Diluted EPS	$ 2.83	$ 3.57

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1448-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1337-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=125512782&loc=d3e4984-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=125512782&loc=d3e3842-109258

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1252-109256

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=125511455&loc=SL5780133-109256

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=125512782&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=125512782&loc=d3e3842-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=125511455&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=125511455&loc=d3e1337-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

+ Details

- Definition

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 3) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income before provision for income taxes - GAAP	$ 47,148	$ 37,255
Actual/pro forma provision for income taxes	(9,335)	(11,013)
Actual/pro forma net income	$ 37,813	$ 26,242
Weighted average basic common shares outstanding	14,972,637	10,063,183
Add: Dilutive effects of assumed vesting of restricted stock	22,576
Weighted average diluted common shares outstanding	14,995,213	10,063,183
Income per common share:
Basic EPS	$ 2.53	$ 2.61
Diluted EPS	$ 2.52	$ 2.61

Basis of Presentation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	May 07, 2021	May 05, 2021	Dec. 31, 2021	Dec. 31, 2020
Subsidiary, Sale of Stock [Line Items]
Proceeds from Loan Originations			$ 426,882	$ 330,837
Financing Receivable, Held-for-Sale, Not Part of Disposal Group, after Valuation Allowance			10,671	4,820
Salaries And Employee Benefit [Member]
Subsidiary, Sale of Stock [Line Items]
Proceeds from Loan Originations			$ 5,198	$ 3,194
IPO [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of Stock, Description of Transaction		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 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 Global Select Market on May 5, 2021. On May 7, 2021, the closing date of the IPO, the Company received total net proceeds of $111,243,000. The net proceeds less other related expenses, including audit fees, legal fees, listing fees, and other expenses, totaled $109,082,000.
Sale of Stock, Number of Shares Issued in Transaction		6,054,750
Sale of Stock, Price Per Share		$ 20.00
Sale of Stock, Consideration Received Per Transaction	$ 111,243
Sale of Stock, Consideration Received on Transaction	$ 109,082

Investment Securities (Details) - USD ($) $ in Thousands	12 Months Ended
Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss	$ 4,946	$ 7,979
Debt Securities, Held-to-maturity, Fair Value	5,197	8,755
Held to Maturity Securities Gross Unrealized Gains	251	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	4,946	7,979
Debt Securities, Held-to-maturity, Fair Value	5,197	8,755
Held to Maturity Securities Gross Unrealized Gains	251	776
Held to Maturity Securities Gross Unrealized Loss

Investment Securities (Details 2) - USD ($) $ in Thousands	12 Months Ended
Investment Securities (Details 2) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 149,610	$ 113,555
Available-for-sale Securities	148,807	114,949
Available-for-sale Securities, Gross Unrealized Gain	682	1,761
Available-for-sale Securities, Gross Unrealized Loss	1,485	(367)
Available-for-sale Securities, Gross Unrealized Loss	(1,485)	367
US Government Agencies Debt Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	19,824	32,069
Available-for-sale Securities	19,682	31,828
Available-for-sale Securities, Gross Unrealized Gain	60	111
Available-for-sale Securities, Gross Unrealized Loss	(202)	(352)
Available-for-sale Securities, Gross Unrealized Loss	202	352
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	82,517	23,601
Available-for-sale Securities	81,513	23,932
Available-for-sale Securities, Gross Unrealized Gain	94	338
Available-for-sale Securities, Gross Unrealized Loss	(1,098)	(7)
Available-for-sale Securities, Gross Unrealized Loss	1,098	7
US States and Political Subdivisions Debt Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	44,732	57,137
Available-for-sale Securities	45,137	58,420
Available-for-sale Securities, Gross Unrealized Gain	525	1,291
Available-for-sale Securities, Gross Unrealized Loss	(120)	(8)
Available-for-sale Securities, Gross Unrealized Loss	120	8
Collateralized Debt Obligations [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	537	748
Available-for-sale Securities	540	769
Available-for-sale Securities, Gross Unrealized Gain	3	21
Available-for-sale Securities, Gross Unrealized Loss
Available-for-sale Securities, Gross Unrealized Loss
Corporate Debt Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	2,000
Available-for-sale Securities	1,935
Available-for-sale Securities, Gross Unrealized Gain
Available-for-sale Securities, Gross Unrealized Loss	(65)
Available-for-sale Securities, Gross Unrealized Loss	$ 65

Investment Securities (Details 3) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, Year One	$ 491	$ 494
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, Year One	516	543
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, Year One
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, Year One
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, after Year One through Five	951	2,143
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five	999	2,351
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five	507	1,141
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year One Through Five	522	1,206
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, after Year Five through Ten	3,504	2,755
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10	3,682	3,023
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10	3,697	8,340
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10	3,748	8,599
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date, after Year 10		2,587
Debt Securities, Held-to-Maturity, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10		2,838
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 10	40,528	47,656
Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 10	40,867	48,615
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss	4,946	7,979
Debt Securities, Held-to-maturity, Fair Value	5,197	8,755
Available-for-sale Securities, Amortized Cost Basis	149,610	113,555
Available-for-sale Securities	148,807	114,949
US Government Agencies Debt Securities [Member]
Marketable Securities [Line Items]
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss
Debt Securities, Held-to-maturity, Fair Value
Available-for-sale Securities, Amortized Cost Basis	19,824	32,069
Available-for-sale Securities	19,682	31,828
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Marketable Securities [Line Items]
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss
Debt Securities, Held-to-maturity, Fair Value
Available-for-sale Securities, Amortized Cost Basis	82,517	23,601
Available-for-sale Securities	81,513	23,932
Collateralized Debt Obligations [Member]
Marketable Securities [Line Items]
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss
Debt Securities, Held-to-maturity, Fair Value
Available-for-sale Securities, Amortized Cost Basis	537	748
Available-for-sale Securities	540	769
US Treasury Securities [Member]
Marketable Securities [Line Items]
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss
Debt Securities, Held-to-maturity, Fair Value
Available-for-sale Securities, Amortized Cost Basis	2,000
Available-for-sale Securities	$ 1,935

Investment Securities (Details 4) - USD ($) $ in Thousands	12 Months Ended
Investment Securities (Details 4) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Sales proceeds	$ 47,096	$ 46,406
Gross realized gains	$ 724	$ 1,438

Investment Securities (Details 5) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Pledged Assets Separately Reported, Mortgage-Related Securities Available-for-sale or Held-for-investment	$ 63,363	$ 52,897
California [Member]
Pledged Assets Separately Reported, Mortgage-Related Securities Available-for-sale or Held-for-investment	$ 63,363	$ 52,897

Investment Securities (Details 6) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 89,921	$ 16,508
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1,223)	(71)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	15,206	15,195
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(262)	(296)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	105,127	31,703
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(1,485)	(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	13,399	15,195
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(202)	(296)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	13,399	25,995
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(202)	(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	73,972	1,786
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1,046)	(7)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,400
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(52)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	75,372	1,786
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(1,098)	(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	14,014	3,922
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(112)	(8)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	407
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(8)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	14,421	3,922
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	(120)	$ (8)
US Treasury Securities [Member]
Marketable Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,935
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(65)
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	1,935
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ (65)

Investment Securities (Details Narrative) $ in Thousands	12 Months Ended
Investment Securities (Details Narrative) $ in Thousands	Dec. 31, 2021 USD ($) Number	Dec. 31, 2020 USD ($) Number
Investments, Debt and Equity Securities [Abstract]
No. Of Securities, With Gross Unrealized Losses	91	31
No. Of Securities, With Gross Unrealized Losses, Less Than 12 Months	16
No. Of Securities, With Gross Unrealized Losses, More Than 12 Months	75
Federal Home Loan Bank Stock \| $	$ 6,723	$ 6,232
FHLB Stock Dividends \| $	$ 372	$ 321

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Consumer and other	$ 1,936,066	$ 1,506,454
Less: Net deferred loan fees	1,606	3,295
Less: Allowance for loan losses	23,243	22,189	$ 14,915
Total loans, net	1,911,217	1,480,970
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	1,586,232	1,002,497
Less: Allowance for loan losses	12,869	9,358	6,331
Real Estate Commercial Land and Development [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	7,376	10,600
Less: Allowance for loan losses	50	77	109
Real Estate Commercial Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	54,214	91,760
Less: Allowance for loan losses	371	821	661
Real Estate Residential Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	7,388	11,914
Less: Allowance for loan losses	50	87	116
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	28,562	30,431
Less: Allowance for loan losses	192	220	224
Real Estate Farmland [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	54,805	50,164
Less: Allowance for loan losses	645	615	1,382
Secured Debt [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	137,062	138,676
Less: Allowance for loan losses	6,859	9,476	4,976
Unsecured Debt [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	21,136	17,526
Less: Allowance for loan losses	207	179	88
Paycheck Protection Program ("PPP") [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	22,124	147,965
Less: Allowance for loan losses
Consumer Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	17,167	4,921
Less: Allowance for loan losses	$ 889	$ 632	$ 601

Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total	$ 1,936,066	$ 1,506,454
Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	1,916,805	1,446,308
Watch [Member]
Financing Receivable, Past Due [Line Items]
Total	8,647	24,288
Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total	10,614	35,858
Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Total	1,586,232	1,002,497
Commercial Real Estate [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	1,575,006	950,118
Commercial Real Estate [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total	1,970	16,836
Commercial Real Estate [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total	9,256	35,543
Commercial Real Estate [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Commercial Land and Development [Member]
Financing Receivable, Past Due [Line Items]
Total	7,376	10,600
Real Estate Commercial Land and Development [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	7,376	10,600
Real Estate Commercial Land and Development [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Commercial Land and Development [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Commercial Land and Development [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Commercial Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Total	54,214	91,760
Real Estate Commercial Construction Loans [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	48,288	85,860
Real Estate Commercial Construction Loans [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total	5,926	5,900
Real Estate Commercial Construction Loans [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Commercial Construction Loans [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Residential Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Total	7,388	11,914
Real Estate Residential Construction Loans [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	7,388	11,914
Real Estate Residential Construction Loans [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Residential Construction Loans [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Residential Construction Loans [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Total	28,562	30,431
Residential Real Estate [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	28,384	30,248
Residential Real Estate [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total
Residential Real Estate [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total	178	183
Residential Real Estate [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Farmland [Member]
Financing Receivable, Past Due [Line Items]
Total	54,805	50,164
Real Estate Farmland [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	54,805	50,164
Real Estate Farmland [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Farmland [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total
Real Estate Farmland [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Secured Debt [Member]
Financing Receivable, Past Due [Line Items]
Total	137,062	138,676
Secured Debt [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	135,131	136,992
Secured Debt [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total	751	1,552
Secured Debt [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total	1,180	132
Secured Debt [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Unsecured Debt [Member]
Financing Receivable, Past Due [Line Items]
Total	21,136	17,526
Unsecured Debt [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	21,136	17,526
Unsecured Debt [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total
Unsecured Debt [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total
Unsecured Debt [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Paycheck Protection Program ("PPP") [Member]
Financing Receivable, Past Due [Line Items]
Total	22,124	147,965
Paycheck Protection Program ("PPP") [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	22,124	147,965
Paycheck Protection Program ("PPP") [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total
Paycheck Protection Program ("PPP") [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total
Paycheck Protection Program ("PPP") [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total
Consumer Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Total	17,167	4,921
Consumer Portfolio Segment [Member] \| Pass [Member]
Financing Receivable, Past Due [Line Items]
Total	17,167	4,921
Consumer Portfolio Segment [Member] \| Watch [Member]
Financing Receivable, Past Due [Line Items]
Total
Consumer Portfolio Segment [Member] \| Substandard [Member]
Financing Receivable, Past Due [Line Items]
Total
Consumer Portfolio Segment [Member] \| Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Total

Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 588	$ 452
Impaired Financing Receivable, Unpaid Principal Balance	588	452
Impaired Financing Receivable, Related Allowance	172
Impaired Financing Receivable, Average Recorded Investment	617	226
Impaired Financing Receivable, Interest Income, Accrual Method
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Impaired Financing Receivable, Recorded Investment	122	137
Impaired Financing Receivable, Unpaid Principal Balance	122	137
Impaired Financing Receivable, Related Allowance
Impaired Financing Receivable, Average Recorded Investment	130	69
Impaired Financing Receivable, Interest Income, Accrual Method
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Impaired Financing Receivable, Recorded Investment	178	183
Impaired Financing Receivable, Unpaid Principal Balance	178	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	288	132
Impaired Financing Receivable, Unpaid Principal Balance	288	132
Impaired Financing Receivable, Related Allowance	172
Impaired Financing Receivable, Average Recorded Investment	306	65
Impaired Financing Receivable, Interest Income, Accrual Method

Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	$ 588	$ 452
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	122	137
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	178	183
Secured Debt [Member]
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	$ 288	$ 132

Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Beginning balance	$ 22,189	$ 14,915
Charge-offs	(1,143)	(2,163)
Recoveries	497	437
Provision (recapture)	1,700	9,000
Ending balance	23,243	22,189
Loans individually evaluated for impairment	172
Loans collectively evaluated for impairment	23,071	22,189
Ending balance	23,243	22,189
Ending balance individually evaluated for impairment	588	452
Ending balance collectively evaluated for impairment	1,935,478	1,506,002
Consumer and other	1,936,066	1,506,454
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	9,358	6,331
Charge-offs
Recoveries
Provision (recapture)	3,511	3,027
Ending balance	12,869	9,358
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	12,869	9,358
Ending balance	12,869	9,358
Ending balance individually evaluated for impairment	122	137
Ending balance collectively evaluated for impairment	1,586,110	1,002,360
Consumer and other	1,586,232	1,002,497
Real Estate Commercial Land and Development [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	77	109
Charge-offs
Recoveries
Provision (recapture)	(27)	(32)
Ending balance	50	77
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	50	77
Ending balance	50	77
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	7,376	10,600
Consumer and other	7,376	10,600
Real Estate Commercial Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	821	661
Charge-offs
Recoveries
Provision (recapture)	(450)	160
Ending balance	371	821
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	371	821
Ending balance	371	821
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	54,214	91,760
Consumer and other	54,214	91,760
Real Estate Residential Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	87	116
Charge-offs
Recoveries
Provision (recapture)	(37)	(29)
Ending balance	50	87
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	50	87
Ending balance	50	87
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	7,388	11,914
Consumer and other	7,388	11,914
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	220	224
Charge-offs
Recoveries		90
Provision (recapture)	(28)	(94)
Ending balance	192	220
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	192	220
Ending balance	192	220
Ending balance individually evaluated for impairment	178	183
Ending balance collectively evaluated for impairment	28,384	30,248
Consumer and other	28,562	30,431
Real Estate Farmland [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	615	1,382
Charge-offs
Recoveries
Provision (recapture)	30	(767)
Ending balance	645	615
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	645	615
Ending balance	645	615
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	54,805	50,164
Consumer and other	54,805	50,164
Secured Debt [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	9,476	4,976
Charge-offs	(822)	(1,604)
Recoveries	263	176
Provision (recapture)	(2,058)	5,928
Ending balance	6,859	9,476
Loans individually evaluated for impairment	172
Loans collectively evaluated for impairment	6,687	9,476
Ending balance	6,859	9,476
Ending balance individually evaluated for impairment	288	132
Ending balance collectively evaluated for impairment	136,774	138,544
Consumer and other	137,062	138,676
Unsecured Debt [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	179	88
Charge-offs
Recoveries
Provision (recapture)	28	91
Ending balance	207	179
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	207	179
Ending balance	207	179
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	21,136	17,526
Consumer and other	21,136	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	22,124	147,965
Consumer and other	22,124	147,965
Consumer Portfolio Segment [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	632	601
Charge-offs	(321)	(559)
Recoveries	234	171
Provision (recapture)	344	419
Ending balance	889	632
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	889	632
Ending balance	889	632
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment	17,167	4,921
Consumer and other	17,167	4,921
Unallocated Financing Receivables [Member]
Financing Receivable, Past Due [Line Items]
Beginning balance	724	427
Charge-offs
Recoveries
Provision (recapture)	387	297
Ending balance	1,111	724
Loans individually evaluated for impairment
Loans collectively evaluated for impairment	1,111	724
Ending balance	1,111	724
Ending balance individually evaluated for impairment
Ending balance collectively evaluated for impairment
Consumer and other

Loans and Allowance for Loan Losses (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Consumer and other	$ 1,936,066	$ 1,506,454
Financing Receivable, Nonaccrual, Interest Income	33	35
Long-term Line of Credit	420,500	293,500
Federal Home Loan Bank of San Francisco [Member]
Financing Receivable, Past Due [Line Items]
Long-term Line of Credit	941,160	1,093,513
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank	33,391	61,635
Paycheck Protection Program ("PPP") [Member]
Financing Receivable, Past Due [Line Items]
Consumer and other	22,124	147,965
Principal Amount Outstanding of Loans Held-in-portfolio	$ 46,601	$ 51,237

- 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

Premises and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Furniture, fixtures, and equipment	$ 3,314	$ 3,057
Tenant improvements	1,973	2,027
Premises and Equipment, Gross	5,287	5,084
Less: Accumulated depreciation and amortization	3,514	3,421
Premises and equipment, net	$ 1,773	$ 1,663

Premises and Equipment, Net (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 607	$ 461

Bank-owned Life Insurance (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Investments, All Other Investments [Abstract]
Life Settlement Contracts, Fair Value Method, Face Value	$ 26,956
Bank Owned Life Insurance	11,203	$ 8,662
Bank Owned Life Insurance Income	$ 237	$ 220

Interest Receivable and Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Interest Receivable And Other Assets
Interest receivable	$ 5,332	$ 5,422
Equity investments	5,741	3,757
Servicing assets	2,215	2,083
Other assets	8,340	3,030
Interest Receivable and Other Assets	$ 21,628	$ 14,292

Interest Bearing Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Interest-bearing Deposits
Savings	$ 88,536	$ 49,714
Money market	912,558	839,053
Interest checking accounts	278,406	146,553
Time, $250 or more	77,868	7,568
Other time	26,404	40,034
Total interest-bearing deposits	$ 1,383,772	$ 1,082,922

Interest Bearing Deposits (Details 2) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Interest-bearing Deposits
2022	$ 103,334
2023	911
2024	26
2025
2026	1
Total time deposits	$ 104,272	$ 47,602

Interest Bearing Deposits (Details 3) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Total network deposits	$ 330,047	$ 296,661
CDARS [Member]
Total network deposits	22,411	35,534
ICS [Member]
Total network deposits	$ 307,636	$ 261,127

Interest Bearing Deposits (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Interest-bearing Deposits
Savings	$ 74	$ 94
Money market	1,797	5,750
Interest checking accounts	155	374
Time, $250 or more	42	797
Other time	131	392
Total interest expense on interest-bearing deposits	$ 2,199	$ 7,407

Interest-Bearing Deposits (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Interest-bearing Deposits
Interest-bearing Domestic Deposit, Time Deposits	$ 104,272	$ 47,602

Long Term Debt and Other Borrowings (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Sep. 08, 2019
Debt Instrument [Line Items]
Subordinated Debt	$ 28,386	$ 28,320
Debt Issuance Costs, Net	642	280
Line of Credit Facility, Maximum Borrowing Capacity	696,285	519,274
Long-term Line of Credit	420,500	293,500
Line of Credit Facility, Remaining Borrowing Capacity	275,785	284,810
Unsecured Federal Funds Line Of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		75,000
Federal Reserve Discount Window
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	16,999	25,881
Secure State Of California Deposits [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	80,500	13,500
Secure Local Agency Deposit [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	$ 340,000	$ 280,000
Subordinated Debt [Member]
Debt Instrument [Line Items]
Subordinated Debt			$ 3,750

401(k) Benefit Plan (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 593	$ 465

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Statutory U.S. federal income tax	$ 9,901	$ 7,824
Benefit of S Corporation status	(4,884)	(7,824)
State taxes	4,045	1,327
Deferred tax asset adjustment	(4,638)
Other	283
Provision for income taxes	$ 4,707	$ 1,327

- Definition

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

+ References + Details

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current tax expense
Federal	$ 6,178
State	2,530	1,468
Current	8,708	1,468
Deferred tax benefit
Federal	(3,561)
State	(440)	(141)
Deferred	(4,001)	(141)
Provision for income taxes	$ 4,707	$ 1,327

- Definition

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

+ References + Details

Income Taxes (Details 3) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Allowance for credit losses	$ 7,398	$ 777
Supplemental employee retirement plan	521	52
Gain on available-for-sale assets	151	5
Net unrealized loss on securities available-for-sale	237
Accrual to cash adjustment		13
Depreciation		43
Other	562
Deferred tax assets	8,869	890
Deferred tax liabilities:
Deferred loan fees	(2,927)	(177)
Net unrealized gain on securities available-for-sale		(49)
State tax	(379)
Depreciation	(419)
Other	(228)	(31)
Deferred tax liabilities	(3,953)	(257)
Net deferred tax asset	$ 4,916	$ 633

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Net of Valuation Allowance	$ 5,370
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$ 4,638

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Related Party Transactions [Abstract]
Beginning balance	$ 2,048	$ 1,348
New loans or advance	7,828	280
Loans issued in prior years to new related parties		695
Repayments	(458)	(275)
Ending balance	$ 9,418	$ 2,048

- Definition

For an unclassified balance sheet, amounts due from related parties including affiliates, employees, joint ventures, officers and stockholders, immediate families thereof, and pension funds.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.10(3))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.3)
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

+ Details

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Related Party Transactions [Abstract]
Due to Related Parties	$ 32,410	$ 42,466
Property Management Fees Expenses	$ 12	$ 27

- Definition

Carrying amount as of the balance sheet date of obligations due all related parties.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.17)
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.15(3),(4))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

+ Details

Equity Incentive Plan (Details) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning of the period balance	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	$ 21.25	$ 21.03
Shares granted	174,347	11,398
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 19.97	$ 20.14
Shares vested	(53,642)	(15,624)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 20.35	$ 20.23
Shares forfeited	(4,522)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 19.33
End of the period balance	127,751	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

Equity Incentive Plan (Details Narrative)	Dec. 31, 2021 shares
Retirement Benefits [Abstract]
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares	1,700,000

Shareholders’ Equity (Details Narrative) $ in Thousands	12 Months Ended
Shareholders’ Equity (Details Narrative) $ in Thousands	Dec. 31, 2021 USD ($)
Equity [Abstract]
Dividends, Common Stock, Cash	$ 24,975
Aggregate Distribution for AAA Payout	$ 26,967

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	$ 248,877	$ 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	137,354	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	46,584	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	47,793	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	9,955	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	3,427	5,945
Other Commitments [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	$ 3,764	$ 920

Commitments and Contingencies (Details 2) $ in Thousands	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 1,025
2023	978
2024	951
2025	733
2026	604
Thereafter	1,094
Total	$ 5,385
Operating Lease, Weighted Average Remaining Lease Term	4 years 7 months 20 days

Commitments and Contingencies (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) Number	Dec. 31, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of Deposits \| Number	64
[custom:DepositsOverFiveMillion-0]	$ 1,166,728
[custom:PercentageOfDepositsOverFiveMillionToDeposits-0]	51.04%
Largest Single Deposit	$ 154,988
Percentage of Largest Single Deposit to Total Deposits	6.78%
Cash, Uninsured Amount	$ 147,219	$ 118,003
Operating Leases, Rent Expense	$ 140	$ 225

Capital Requirements and Restrictions on Retained Earnings (Details)
$ in Thousands

Dec. 31, 2021

USD ($)

Dec. 31, 2020

USD ($)

Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]

Banking Regulation, Total Capital, Actual

$ 285,128

$ 176,861

Banking Regulation, Total Risk-Based Capital Ratio, Actual

0.1398

0.1218

Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum

^[1]

$ 163,177

$ 116,138

Banking Regulation, Tier One Risk-Based Capital, Actual

$ 233,397

$ 130,347

Banking Regulation, Tier One Risk-Based Capital Ratio, Actual

0.1144

0.0898

Banking Regulation, Tier One Risk-Based Capital, Capital Adequacy, Minimum

^[1]

$ 122,382

$ 87,103

Banking Regulation, Common Equity Tier One Risk-Based Capital, Actual

$ 233,397

$ 130,347

Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Actual

0.1144

0.0898

Banking Regulation, Common Equity Tier One Risk-Based Capital, Capital Adequacy, Minimum

^[1]

$ 91,787

$ 65,327

Banking Regulation, Tier One Leverage Capital, Actual

$ 233,397

$ 130,347

Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum

0.0947

0.0658

Banking Regulation, Tier One Leverage Capital, Capital Adequacy, Minimum

^[1]

$ 98,600

$ 79,204

Subsidiaries [Member]

Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]

Banking Regulation, Total Capital, Actual

$ 279,152

$ 174,002

Banking Regulation, Total Risk-Based Capital Ratio, Actual

0.1369

0.1199

Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum

$ 163,078

$ 116,114

Banking Regulation, Tier One Risk-Based Capital, Actual

$ 255,807

$ 155,808

Banking Regulation, Tier One Risk-Based Capital Ratio, Actual

0.1255

0.1073

Banking Regulation, Tier One Risk-Based Capital, Capital Adequacy, Minimum

$ 122,309

$ 87,086

Banking Regulation, Common Equity Tier One Risk-Based Capital, Actual

$ 255,807

$ 155,808

Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Actual

0.1255

0.1073

Banking Regulation, Common Equity Tier One Risk-Based Capital, Capital Adequacy, Minimum

$ 91,731

$ 65,314

Banking Regulation, Tier One Leverage Capital, Actual

$ 255,807

$ 155,808

Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum

0.1038

0.0787

Banking Regulation, Tier One Leverage Capital, Capital Adequacy, Minimum

$ 98,555

$ 79,199

Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum

203,848

145,143

Banking Regulation, Tier One Risk-Based Capital, Well Capitalized, Minimum

163,078

116,114

Banking Regulation, Common Equity Tier One Risk-Based Capital, Well Capitalized, Minimum

132,501

94,343

Banking Regulation, Tier One Leverage Capital, Well Capitalized, Minimum

$ 123,193

$ 98,998

Minimum [Member]

Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]

Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum

^[1]

0.0800

Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum

^[1]

0.0600

Banking Regulation, Common Equity Tier One Risk Based Capital Ratio, Capital Adequacy, Minimum

^[1]

0.0450

Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum

^[1]

0.0400

Minimum [Member] | Subsidiaries [Member]

Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]

Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum

0.0800

Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum

0.0600

Banking Regulation, Common Equity Tier One Risk Based Capital Ratio, Capital Adequacy, Minimum

0.0450

Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum

0.0400

Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum

0.1000

Banking Regulation, Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum

0.0800

Banking Regulation, Common Equity Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum

0.0650

Banking Regulation, Tier One Leverage Capital Ratio, Well Capitalized, Minimum

0.0500

[1]	Presented as if Bancorp were subject to Basel III capital requirements. The Company operates under the Small Bank Holding Company Policy Statement and therefore is not currently subject to generally applicable capital adequacy requirements.

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale	$ 148,807	$ 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	148,807	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	148,807	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	148,807	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	92	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	92	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	92	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	$ 92	$ 149

Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 425,329	$ 290,493	$ 177,366
Time deposits in banks	14,464	23,705
Securities available-for-sale	148,807	114,949
Debt Securities, Available-for-sale	148,807	114,949
Securities held-to-maturity	4,946	7,979
Debt Securities, Held-to-maturity, Fair Value	5,197	8,755
Loans held for sale	10,671	4,820
Loans held for investment	1,911,217	1,480,970
Interest receivable	21,628	14,292
Deposits	2,285,890	1,784,001
Interest payable	7,439	7,669
Subordinated notes	28,386	28,320
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	425,329	290,493
Time deposits in banks	14,464	23,705
Securities available-for-sale	148,807	114,949
Securities held-to-maturity	4,946	7,979
Loans held for sale	10,671	4,820
Loans held for investment	1,911,217	1,480,970
FHLB stock and other investments	12,464	9,989
Interest receivable	5,332	5,422
Interest rate swap	92	149
Deposits	2,285,890	1,784,001
Interest payable	23	75
Interest rate swap	92	149
Subordinated notes	28,386	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	425,329	290,493
Time Deposit at Fair Value Disclosure	14,464	23,705
Debt Securities, Available-for-sale	148,807	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	5,197	8,755
Accounts Receivable, Fair Value Disclosure	5,332	5,422
Interest Rate Swap, Fair Value	92	149
Accounts Payable, Fair Value Disclosure	23	75
Interest Rate Swap, Fair Value	92	149
Subordinated Debt Obligations, Fair Value Disclosure	28,386	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	11,217	5,012
Loans Receivable, Fair Value Disclosure	1,893,431	1,464,794
Deposits, Fair Value Disclosure	$ 2,210,555	$ 1,785,944

Parent Company Only Condensed Financial Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 425,329	$ 290,493	$ 177,366
Other assets	8,340	3,030
Assets	2,556,761	1,953,765
LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated notes, net	28,386	28,320
Shareholders’ equity	235,046	133,775	108,877
Liabilities and Shareholders’ Equity	2,556,761	1,953,765
Parent Company [Member]
ASSETS
Cash and cash equivalents	5,636	3,555	$ 3,787
Investment in banking subsidiary	257,456	159,236
Other assets	922	291
Assets	264,014	163,082
LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated notes, net	28,968	29,307
Shareholders’ equity	235,046	133,775
Liabilities and Shareholders’ Equity	$ 264,014	$ 163,082

Parent Company Only Condensed Financial Information (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Condensed Financial Statements, Captions [Line Items]
Dividends from banking subsidiary	$ 81,583	$ 74,390
Interest expense	3,972	9,180
Income before provision for income taxes	47,148	37,255
Income tax benefit	4,707	1,327
Net income	42,441	35,928
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Dividends from banking subsidiary	27,630	28,077
Interest expense	1,773	1,773
Other expense	3,559	1,023
Income before provision for income taxes	22,298	25,281
Income tax benefit	812	10
Equity in undistributed banking subsidiary income	19,331	10,637
Net income	$ 42,441	$ 35,928

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

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

+ References + Details

- Definition

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

+ References

+ Details

Parent Company Only Condensed Financial Information (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 42,441	$ 35,928
Adjustments to reconcile net income to net cash provided by operating activities:
Stock compensation expense	594	316
Stock issued to directors	846	252
Amortization of subordinated notes issuance costs	66	67
Net cash provided by operating activities	28,657	51,475
Cash flows from investing activities:
Net cash used in investing activities	(455,011)	(372,630)
Cash flows from financing activities:
Proceeds from sale of stock	111,243	13,400
Cash dividends paid	51,942	26,369
Net cash provided by financing activities	561,190	434,282
Net change in cash and cash equivalents	134,836	113,127
Cash and cash equivalents at beginning of period	290,493	177,366
Cash and cash equivalents at end of period	425,329	290,493
Parent Company [Member]
Cash flows from operating activities:
Net income	42,441	35,928
Adjustments to reconcile net income to net cash provided by operating activities:
Stock compensation expense	594	316
Stock issued to directors	846	252
Equity in undistributed banking subsidiary income	(19,331)	(10,637)
Amortization of subordinated notes issuance costs	66	67
Change in other assets	(631)	(203)
Change in accrued expenses and other liabilities	(405)	514
Net cash provided by operating activities	23,580	26,237
Cash flows from investing activities:
Investment in subsidiary	(80,800)	(13,500)
Net cash used in investing activities	(80,800)	(13,500)
Cash flows from financing activities:
Proceeds from sale of stock	111,243	13,400
Cash dividends paid	(51,942)	(26,369)
Net cash provided by financing activities	59,301	(12,969)
Net change in cash and cash equivalents	2,081	(232)
Cash and cash equivalents at beginning of period	3,555	3,787
Cash and cash equivalents at end of period	$ 5,636	$ 3,555

Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Feb. 14, 2022	Jan. 20, 2022	Dec. 31, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Dividends, Common Stock			$ 51,942	$ 26,369
Subsequent Event [Member]
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.15
Dividends Payable, Date of Record		Feb. 07, 2022
Dividends, Common Stock	$ 2,587