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Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies (a) Organization 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 Federal Reserve to be a bank holding company in connection with its acquisition of the Bank. The Company became the sole shareholder of the Bank on June 2, 2003 in a statutory merger, pursuant to which each outstanding share of the Bank’s common stock was exchanged for one share of common stock of the Company. The Company, through the Bank, provides financial services to customers who are predominately small and middle-market businesses, professionals, and individuals residing in the Northern California region. The Company’s primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit, and its primary deposit products are checking accounts, savings accounts, money market accounts, and term certificate accounts. The Bank currently has seven branch offices in Roseville, Natomas, Rancho Cordova, Redding, Elk Grove, Chico, and Yuba City. (b) Basis of Financial Statement Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) ASC and the rules and regulations of the SEC, including the instructions to Regulation S-X. These interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in shareholders’ equity, and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2023, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”), which was filed with the SEC on February 23, 2024. The unaudited consolidated financial statements include Bancorp and its wholly owned subsidiary, the Bank. All significant intercompany transactions and balances are eliminated in consolidation. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2024. The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry. (c) Segments 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. (d) Emerging Growth Company The Company qualifies as an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, and, as such, may take advantage of specified reduced reporting requirements and deferred accounting standards adoption dates, and is relieved of other significant requirements that are otherwise generally applicable to other public companies. The Company will remain an emerging growth company for five years after its IPO date of May 5, 2021, unless one of the following occurs: (i) total annual gross revenues are $1.235 billion or more; (ii) the Company issues more than $1.0 billion in non-convertible debt; or (iii) the Company becomes a large accelerated filer with a public float of more than $0.7 billion. (e) Significant Accounting Policies The Company’s significant accounting policies are included in Note 1, Basis of Presentation in the notes to our audited consolidated financial statements included in the 2023 Annual Report on Form 10-K. (f) Recently Issued Accounting Standards The following information reflects recent accounting standards that have been adopted or are pending adoption by the Company. 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 indicate effective dates for the Company as an emerging growth company using the extended transition period. Accounting Standards Adopted in 2024 In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (“ASU 2023-02”). Under current GAAP, an entity can only elect to apply the proportional amortization method to investments in low income housing tax credit (“LIHTC”) structures. The amendments in ASU 2023-02 allow entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. ASU 2023-02 provides amendments to paragraph ASC 323-740-25-1, which sets forth the conditions needed to apply the proportional amortization method. The amendments make certain limited changes to those conditions to clarify their application to a broader group of tax credit investment programs. However, the conditions in substance remain consistent with current GAAP. The amendments in ASU 2023-02 also eliminate certain LIHTC-specific guidance to align the accounting more closely with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance in paragraph ASC 323-740-25-3 apply only to tax equity investments accounted for using the proportional amortization method. The Company adopted ASU 2023-02 on January 1, 2024, which did not have a significant impact on the Company’s consolidated financial statements. Accounting Standards Issued But Not Yet Adopted In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”), amending disclosure or presentation requirements related to various subtopics in the FASB’s ASC. ASU 2023-06 was issued in response to the SEC’s initiative to update and simplify disclosure requirements. The SEC identified 27 disclosure requirements that were incremental to those in the ASC and referred them to the FASB for potential incorporation into GAAP. To avoid duplication, the SEC intended to eliminate those disclosure requirements from existing SEC regulations as the FASB incorporated them into the relevant ASC subtopics. ASU 2023-06 adds 14 of the 27 identified disclosure or presentation requirements to the ASC. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For reporting entities subject to the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the ASC and will not become effective for any entities. ASU 2023-06 is not expected to have a significant impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), amending disclosure requirements related to segment reporting primarily through enhanced disclosure about significant segment expenses and by requiring disclosure of segment information on an annual and interim basis. ASU 2023-07 is effective January 1, 2024 and for interim periods beginning after December 15, 2024. The key amendments: (i) require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”) and included within each reported measure of segment profit or loss; (ii) require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; (iii) require that a public entity provide all annual disclosures about a reportable segment’s profit or loss currently required by GAAP in interim periods as well; (iv) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, an entity may report one or more of those additional measures of segment profit; (v) require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources; and (vi) require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures. The requirements of this standard for such entities will apply beginning with the Company’s annual report for the year ending December 31, 2024. The Company has one reportable segment and ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures (“ASU 2023-09”), which enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. Entities will also be required to disclose income/(loss) from continuing operations before income tax expense/(benefit) disaggregated between domestic and foreign, as well as income tax expense/(benefit) from continuing operations disaggregated by federal, state, and foreign. ASU 2023-09 is effective January 1, 2025 and is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements (“ASU 2024-02”). ASU 2024-02 contains amendments to the ASC that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior Statements to provide guidance in certain topical areas. FASB Concepts Statements are nonauthoritative. Removing all references to Concepts Statements in the guidance is intended to simplify the ASC and draw a distinction between authoritative and nonauthoritative literature. ASU 2024-02 is effective January 1, 2025 and is not expected to have a significant impact on the Company’s consolidated financial statements. (g) Allowance for Credit Losses (“ACL”) The ACL is a valuation account that offsets the amortized cost basis of loans receivable and certain other financial assets, including unfunded loan commitments and held-to-maturity debt securities. Under ASC 326, amortized cost basis is the basis on which the ACL is determined. Amortized cost basis on loans receivable is principal outstanding, net of any purchase premiums and discounts, and net of any deferred loan fees and costs. Credit losses are charged off when management believes that the collectability of at least some portion of outstanding principal is unlikely. These charge-offs are recorded as a reversal to, thereby reducing, the allowance for credit losses. Subsequent recoveries of previously charged-off amounts, if any, are recorded as a provision to, thereby increasing, the allowance for credit losses. The allowance for credit losses is maintained at a level to absorb expected credit losses over the contractual life, including consideration of prepayments. Determining the adequacy of the allowance is complex and requires judgments that are inherently subjective, as it requires estimates that are susceptible to revision as additional information becomes available. While the Company has determined an allowance for credit losses it considers appropriate, there can be no assurance that the allowance will be sufficient to absorb future losses. The Company’s process for determining expected lifetime credit losses entails a loan-level, model-based approach and considers a broad range of information, including historical loss experience, current conditions, and reasonable and supportable forecasts. Credit loss is estimated for all loans. Accordingly, the Company has stratified the full loan population into segments sharing similar characteristics to perform the evaluation of the credit loss collectively. The Company can also further stratify loans of similar types, risk attributes, and methods for credit risk monitoring. The Company has determined loan pools based primarily on regulatory reporting codes, as the loans within each pool share similar risk characteristics and there is sufficient historical peer loss data from the FFIEC to provide statistically meaningful support in the models developed. The Company further stratified the C&I portfolio into traditional C&I loans and SBA loans, as the loans in these pools have different repayment structures and credit risk characteristics. The Company also stratified C&I loans and consumer loans that do not require reserves, as the Company has third-party agreements in place to cover credit losses. The Company has identified the following pools subject to an estimate of credit loss: (1) 1-4 Family Construction; (2) Other Construction; (3) Farmland; (4) Revolving Secured by 1-4 Family; (5) Residential Secured by First Liens; (6) Residential Secured by Junior Liens; (7) Multifamily; (8) CRE Owner Occupied; (9) CRE Non-Owner Occupied; (10) Agriculture; (11) C&I; (12) C&I SBA; (13) Consumer; and (14) Municipal. With the exception of the C&I SBA pool, the Company has determined, given its limited loss experience, that peer data and other external data to support loss history provides the best basis for its assessment of expected credit losses. The Company believes that the use of peer loss data from 2008 to 2019 presents loss histories that appropriately reflect a full economic cycle, reflects asset-specific risk characteristics at each pool level identified, and includes a historical look-back period that is objective and reflective of future expected credit losses. Loss data from 2020 and beyond was excluded from the data set to exclude pandemic-related data from the model. During the three months ended June 30, 2024, the Company segregated the Manufactured Home Community (“MHC”) loans from the Multifamily pool as the Company identified a data source to provide sufficient historical peer loss data specific to MHC loans. This segregation now adjusts for differences in the risk characteristics and performance of MHCs compared to standard Multifamily properties. The Company used calculations of individual probability of default and loss given default on a loan-by-loan basis to derive an estimated loss rate. This adjustment reduced the required reserves related to MHC pool by approximately $5.8 million. The Company’s routine monitoring of charge-off activity identified an increased level of charge-offs in the C&I SBA pool during the first six months of 2024, reflecting a change in the credit quality of the pool. In response, the Company increased the expected loss rates of the C&I SBA pool during the three months ended June 30, 2024 to be more in line with net charge-off rates during the first six months of 2024. This adjustment reflects the Company’s estimate for future loss rates and increased the required reserves related to the C&I SBA pool by approximately $4.6 million. The method for determining the estimate of lifetime credit losses includes, among other things, the following main components: (i) the use of probability of default and loss given default assumptions under a discounted cash flow model; (ii) a multi-scenario macroeconomic forecast; (iii) an initial and reasonable and supportable forecast period of one year for all loan segments; and (iv) a reversion period of one year using a linear transition method to historical loss rates. Given the inherent limitations of a quantitative-only model, qualitative adjustments are included to factor in data points not captured from a quantitative analysis alone. Qualitative criteria that can be considered includes, among other things, the following: •Concentrations – the existence and effect of any concentrations of credit, and changes in the level of such concentrations; •Volume – changes in the nature and volume of the portfolio and in the terms of the loans; •Economic – changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; •Policy – changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; •Quality – changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans; and •External – the effect of other external factors, such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s loan portfolio. Management reviews current information on a quarterly basis to assess the forecasted future economic impact for purposes of evaluating the adequacy of the ACL. The forecasted direction and magnitude of change with respect to future economic conditions is then assessed against the estimate in the model. Any changes resulting from the quarterly assessment are recorded in “Provision for credit losses” in the unaudited consolidated statements of income. The Audit Committee of the board of directors reviews the adequacy of the allowance at least quarterly. Accrued interest receivable is excluded from amortized cost of all financial instrument types and included in “Interest receivable and other assets” in the consolidated balance sheets. Accrued interest receivable is not subject to an estimate for credit loss, as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. When a loan is placed on non-accrual status, which occurs within 90 days of a borrower becoming delinquent, interest previously accrued but not collected is reversed against current period income. If an individual loan’s characteristics have deteriorated to below a range of the overall pool, the loan would be individually assessed. Individually assessed loans are measured for credit loss based on one of the following methods: (i) present value of future expected cash flows, discounted at the loan’s effective interest rate; (ii) amount by which carrying value of the loan exceeds the loan’s observable market price; or (iii) the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. The Company applies the practical expedient and defines collateral dependent loans as those where the borrower is experiencing financial difficulty and on which payment is expected to be provided substantially through the operation or sale of the collateral.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 10,782	$ 12,729	$ 21,413	$ 25,890

- Definition

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

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+ Details

Loans and Allowance for Credit Losses - Non-accrual Loans Segregated by Class (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	$ 1,881	$ 1,965
Commercial
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	1,821	1,893
Secured
Financing Receivable, Past Due [Line Items]
Total non-accrual loans	$ 60	$ 72

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from financial institutions	$ 28,572	$ 26,986
Interest-bearing deposits in banks	161,787	294,590
Cash and cash equivalents	190,359	321,576
Time deposits in banks	4,097	5,858
Securities available-for-sale, at fair value, net of allowance for credit losses of $0 at June 30, 2024 and December 31, 2023 (amortized cost of $120,569 and $124,788 at June 30, 2024 and December 31, 2023, respectively)	103,204	108,083
Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $20 at June 30, 2024 and December 31, 2023 (fair value of $2,801 and $2,913 at June 30, 2024 and December 31, 2023, respectively)	2,973	3,077
Loans held for sale	5,322	11,464
Loans held for investment	3,266,291	3,081,719
Allowance for credit losses	(35,406)	(34,431)
Loans held for investment, net of allowance for credit losses	3,230,885	3,047,288
FHLB stock	15,000	15,000
Operating leases, right-of-use asset, net	6,630	5,284
Premises and equipment, net	1,610	1,623
Bank-owned life insurance	19,030	17,180
Interest receivable and other assets	55,107	56,692
Total assets	3,634,217	3,593,125
Deposits:
Non-interest-bearing	825,733	831,101
Interest-bearing	2,323,898	2,195,795
Total deposits	3,149,631	3,026,896
Subordinated notes, net	73,822	73,749
Other borrowings	0	170,000
Operating lease liability	7,077	5,603
Interest payable and other liabilities	23,217	31,103
Total liabilities	3,253,747	3,307,351
Commitments and contingencies (Note 8)
Shareholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized; zero issued and outstanding at June 30, 2024 and December 31, 2023	0	0
Common stock, no par value; 100,000,000 shares authorized; 21,319,583 shares issued and outstanding at June 30, 2024; 17,256,989 shares issued and outstanding at December 31, 2023	301,968	220,505
Retained earnings	90,734	77,036
Accumulated other comprehensive loss, net of taxes	(12,232)	(11,767)
Total shareholders’ equity	380,470	285,774
Total liabilities and shareholders’ equity	$ 3,634,217	$ 3,593,125

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization 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 Federal Reserve to be a bank holding company in connection with its acquisition of the Bank. The Company became the sole shareholder of the Bank on June 2, 2003 in a statutory merger, pursuant to which each outstanding share of the Bank’s common stock was exchanged for one share of common stock of the Company. The Company, through the Bank, provides financial services to customers who are predominately small and middle-market businesses, professionals, and individuals residing in the Northern California region. The Company’s primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit, and its primary deposit products are checking accounts, savings accounts, money market accounts, and term certificate accounts. The Bank currently has seven branch offices in Roseville, Natomas, Rancho Cordova, Redding, Elk Grove, Chico, and Yuba City.
Basis of Financial Statement Presentation and Consolidation and Emerging Growth Company	Basis of Financial Statement Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) ASC and the rules and regulations of the SEC, including the instructions to Regulation S-X. These interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in shareholders’ equity, and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2023, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”), which was filed with the SEC on February 23, 2024. The unaudited consolidated financial statements include Bancorp and its wholly owned subsidiary, the Bank. All significant intercompany transactions and balances are eliminated in consolidation. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2024. The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry. Emerging Growth Company The Company qualifies as an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012, and, as such, may take advantage of specified reduced reporting requirements and deferred accounting standards adoption dates, and is relieved of other significant requirements that are otherwise generally applicable to other public companies. The Company will remain an emerging growth company for five years after its IPO date of May 5, 2021, unless one of the following occurs: (i) total annual gross revenues are $1.235 billion or more; (ii) the Company issues more than $1.0 billion in non-convertible debt; or (iii) the Company becomes a large accelerated filer with a public float of more than $0.7 billion.
Segments	Segments 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.
Recently Issued Accounting Standards, Accounting Standards Adopted and Accounting Standards Issued But Not Yet Adopted	Recently Issued Accounting Standards The following information reflects recent accounting standards that have been adopted or are pending adoption by the Company. 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 indicate effective dates for the Company as an emerging growth company using the extended transition period. Accounting Standards Adopted in 2024 In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (“ASU 2023-02”). Under current GAAP, an entity can only elect to apply the proportional amortization method to investments in low income housing tax credit (“LIHTC”) structures. The amendments in ASU 2023-02 allow entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. ASU 2023-02 provides amendments to paragraph ASC 323-740-25-1, which sets forth the conditions needed to apply the proportional amortization method. The amendments make certain limited changes to those conditions to clarify their application to a broader group of tax credit investment programs. However, the conditions in substance remain consistent with current GAAP. The amendments in ASU 2023-02 also eliminate certain LIHTC-specific guidance to align the accounting more closely with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance in paragraph ASC 323-740-25-3 apply only to tax equity investments accounted for using the proportional amortization method. The Company adopted ASU 2023-02 on January 1, 2024, which did not have a significant impact on the Company’s consolidated financial statements. Accounting Standards Issued But Not Yet Adopted In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”), amending disclosure or presentation requirements related to various subtopics in the FASB’s ASC. ASU 2023-06 was issued in response to the SEC’s initiative to update and simplify disclosure requirements. The SEC identified 27 disclosure requirements that were incremental to those in the ASC and referred them to the FASB for potential incorporation into GAAP. To avoid duplication, the SEC intended to eliminate those disclosure requirements from existing SEC regulations as the FASB incorporated them into the relevant ASC subtopics. ASU 2023-06 adds 14 of the 27 identified disclosure or presentation requirements to the ASC. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For reporting entities subject to the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the ASC and will not become effective for any entities. ASU 2023-06 is not expected to have a significant impact on the Company’s consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), amending disclosure requirements related to segment reporting primarily through enhanced disclosure about significant segment expenses and by requiring disclosure of segment information on an annual and interim basis. ASU 2023-07 is effective January 1, 2024 and for interim periods beginning after December 15, 2024. The key amendments: (i) require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”) and included within each reported measure of segment profit or loss; (ii) require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; (iii) require that a public entity provide all annual disclosures about a reportable segment’s profit or loss currently required by GAAP in interim periods as well; (iv) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, an entity may report one or more of those additional measures of segment profit; (v) require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources; and (vi) require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures. The requirements of this standard for such entities will apply beginning with the Company’s annual report for the year ending December 31, 2024. The Company has one reportable segment and ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures (“ASU 2023-09”), which enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. Entities will also be required to disclose income/(loss) from continuing operations before income tax expense/(benefit) disaggregated between domestic and foreign, as well as income tax expense/(benefit) from continuing operations disaggregated by federal, state, and foreign. ASU 2023-09 is effective January 1, 2025 and is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements (“ASU 2024-02”). ASU 2024-02 contains amendments to the ASC that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior Statements to provide guidance in certain topical areas. FASB Concepts Statements are nonauthoritative. Removing all references to Concepts Statements in the guidance is intended to simplify the ASC and draw a distinction between authoritative and nonauthoritative literature. ASU 2024-02 is effective January 1, 2025 and is not expected to have a significant impact on the Company’s consolidated financial statements.
EPS	EPS Basic EPS is net income divided by the weighted average number of common shares outstanding during the period less average unvested restricted stock awards (“RSAs”). Diluted EPS includes the dilutive effect of additional potential common shares related to unvested RSAs using the treasury stock method. The Company has two forms of outstanding common stock: common stock and unvested RSAs. Holders of unvested RSAs receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings, and therefore the RSAs are considered participating securities. However, under the two-class method, the difference in EPS is not significant for these participating securities.
Allowance for Credit Losses (“ACL”)	Allowance for Credit Losses (“ACL”) The ACL is a valuation account that offsets the amortized cost basis of loans receivable and certain other financial assets, including unfunded loan commitments and held-to-maturity debt securities. Under ASC 326, amortized cost basis is the basis on which the ACL is determined. Amortized cost basis on loans receivable is principal outstanding, net of any purchase premiums and discounts, and net of any deferred loan fees and costs. Credit losses are charged off when management believes that the collectability of at least some portion of outstanding principal is unlikely. These charge-offs are recorded as a reversal to, thereby reducing, the allowance for credit losses. Subsequent recoveries of previously charged-off amounts, if any, are recorded as a provision to, thereby increasing, the allowance for credit losses. The allowance for credit losses is maintained at a level to absorb expected credit losses over the contractual life, including consideration of prepayments. Determining the adequacy of the allowance is complex and requires judgments that are inherently subjective, as it requires estimates that are susceptible to revision as additional information becomes available. While the Company has determined an allowance for credit losses it considers appropriate, there can be no assurance that the allowance will be sufficient to absorb future losses. The Company’s process for determining expected lifetime credit losses entails a loan-level, model-based approach and considers a broad range of information, including historical loss experience, current conditions, and reasonable and supportable forecasts. Credit loss is estimated for all loans. Accordingly, the Company has stratified the full loan population into segments sharing similar characteristics to perform the evaluation of the credit loss collectively. The Company can also further stratify loans of similar types, risk attributes, and methods for credit risk monitoring. The Company has determined loan pools based primarily on regulatory reporting codes, as the loans within each pool share similar risk characteristics and there is sufficient historical peer loss data from the FFIEC to provide statistically meaningful support in the models developed. The Company further stratified the C&I portfolio into traditional C&I loans and SBA loans, as the loans in these pools have different repayment structures and credit risk characteristics. The Company also stratified C&I loans and consumer loans that do not require reserves, as the Company has third-party agreements in place to cover credit losses. The Company has identified the following pools subject to an estimate of credit loss: (1) 1-4 Family Construction; (2) Other Construction; (3) Farmland; (4) Revolving Secured by 1-4 Family; (5) Residential Secured by First Liens; (6) Residential Secured by Junior Liens; (7) Multifamily; (8) CRE Owner Occupied; (9) CRE Non-Owner Occupied; (10) Agriculture; (11) C&I; (12) C&I SBA; (13) Consumer; and (14) Municipal. With the exception of the C&I SBA pool, the Company has determined, given its limited loss experience, that peer data and other external data to support loss history provides the best basis for its assessment of expected credit losses. The Company believes that the use of peer loss data from 2008 to 2019 presents loss histories that appropriately reflect a full economic cycle, reflects asset-specific risk characteristics at each pool level identified, and includes a historical look-back period that is objective and reflective of future expected credit losses. Loss data from 2020 and beyond was excluded from the data set to exclude pandemic-related data from the model. During the three months ended June 30, 2024, the Company segregated the Manufactured Home Community (“MHC”) loans from the Multifamily pool as the Company identified a data source to provide sufficient historical peer loss data specific to MHC loans. This segregation now adjusts for differences in the risk characteristics and performance of MHCs compared to standard Multifamily properties. The Company used calculations of individual probability of default and loss given default on a loan-by-loan basis to derive an estimated loss rate. This adjustment reduced the required reserves related to MHC pool by approximately $5.8 million. The Company’s routine monitoring of charge-off activity identified an increased level of charge-offs in the C&I SBA pool during the first six months of 2024, reflecting a change in the credit quality of the pool. In response, the Company increased the expected loss rates of the C&I SBA pool during the three months ended June 30, 2024 to be more in line with net charge-off rates during the first six months of 2024. This adjustment reflects the Company’s estimate for future loss rates and increased the required reserves related to the C&I SBA pool by approximately $4.6 million. The method for determining the estimate of lifetime credit losses includes, among other things, the following main components: (i) the use of probability of default and loss given default assumptions under a discounted cash flow model; (ii) a multi-scenario macroeconomic forecast; (iii) an initial and reasonable and supportable forecast period of one year for all loan segments; and (iv) a reversion period of one year using a linear transition method to historical loss rates. Given the inherent limitations of a quantitative-only model, qualitative adjustments are included to factor in data points not captured from a quantitative analysis alone. Qualitative criteria that can be considered includes, among other things, the following: •Concentrations – the existence and effect of any concentrations of credit, and changes in the level of such concentrations; •Volume – changes in the nature and volume of the portfolio and in the terms of the loans; •Economic – changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; •Policy – changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; •Quality – changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans; and •External – the effect of other external factors, such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s loan portfolio. Management reviews current information on a quarterly basis to assess the forecasted future economic impact for purposes of evaluating the adequacy of the ACL. The forecasted direction and magnitude of change with respect to future economic conditions is then assessed against the estimate in the model. Any changes resulting from the quarterly assessment are recorded in “Provision for credit losses” in the unaudited consolidated statements of income. The Audit Committee of the board of directors reviews the adequacy of the allowance at least quarterly. Accrued interest receivable is excluded from amortized cost of all financial instrument types and included in “Interest receivable and other assets” in the consolidated balance sheets. Accrued interest receivable is not subject to an estimate for credit loss, as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. When a loan is placed on non-accrual status, which occurs within 90 days of a borrower becoming delinquent, interest previously accrued but not collected is reversed against current period income. If an individual loan’s characteristics have deteriorated to below a range of the overall pool, the loan would be individually assessed. Individually assessed loans are measured for credit loss based on one of the following methods: (i) present value of future expected cash flows, discounted at the loan’s effective interest rate; (ii) amount by which carrying value of the loan exceeds the loan’s observable market price; or (iii) the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. The Company applies the practical expedient and defines collateral dependent loans as those where the borrower is experiencing financial difficulty and on which payment is expected to be provided substantially through the operation or sale of the collateral.

- Definition

Disclosure of accounting policy for financing receivable.

+ References

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+ Details

- Definition

Disclosure of accounting policy for segment reporting.

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+ Details

Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Fair Value Hierarchy and Fair Value Measurement

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

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

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

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

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

Table 2.1 summarizes the Company’s assets and liabilities required to be recorded at fair value on a recurring basis.


Table 2.1: 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 In
June 30, 2024
Assets:
Securities available-for-sale:
U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds	$	103,204	$	—	$	103,204	$	—	OCI
Derivatives – interest rate swap	5		—		5		—		NI
Liabilities:
Derivatives – interest rate swap	5		—		5		—		NI

December 31, 2023
Assets:
Securities available-for-sale:
U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds	$	108,083	$	—	$	108,083	$	—	OCI
Derivatives – interest rate swap	10		—		10		—		NI
Liabilities:
Derivatives – interest rate swap	10		—		10		—		NI

Available-for-sale securities are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1 inputs) 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 inputs). 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. Level 3 securities are based on unobservable inputs that are supported by little or no market activity. In addition, values use discounted cash flow models and may include significant management judgment and estimation. As of June 30, 2024 and December 31, 2023, there were no Level 1 available-for-sale securities and no transfers between Level 1 and Level 2 classifications for assets or liabilities measured at fair value on a recurring basis.

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

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 collateral dependent loans and other real estate owned. As of June 30, 2024 and December 31, 2023, the carrying amount of assets measured at fair value on a non-recurring basis was immaterial to the Company.

Disclosures about Fair Value of Financial Instruments

Table 2.2 is a summary of fair value estimates for financial instruments as of June 30, 2024 and December 31, 2023. The carrying amounts in Table 2.2 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.


Table 2.2: Fair Value Estimates for Financial Instruments
	June 30, 2024					December 31, 2023
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets:
Cash and cash equivalents	$	190,359	$	190,359	Level 1	$	321,576	$	321,576	Level 1
Time deposits in banks	4,097		4,097		Level 1	5,858		5,858		Level 1
Securities available-for-sale	103,204		103,204		Level 2	108,083		108,083		Level 2
Securities held-to-maturity	2,973		2,801		Level 3	3,077		2,913		Level 3
Loans held for sale	5,322		5,907		Level 2	11,464		12,626		Level 2
Loans held for investment, net of allowance for credit losses	3,230,885		3,081,250		Level 3	3,047,288		2,891,925		Level 3
FHLB stock and other investments	22,801		N/A		N/A	21,801		N/A		N/A
Interest rate swap	5		5		Level 2	10		10		Level 2
Financial liabilities:
Interest rate swap	$	5	$	5	Level 2	$	10	$	10	Level 2
Time deposits	333,431		332,557		Level 2	466,572		465,205		Level 2
Subordinated notes	73,822		72,772		Level 3	73,749		72,693		Level 3
Other borrowings	—		—		Level 2	170,000		170,000		Level 2

The Company used the following methods and assumptions to estimate the fair value of its financial instruments at June 30, 2024 and December 31, 2023:

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. Fair value of held-to-maturity securities is estimated by calculating the net present value of future cash flows based on observable market data, such as interest rates and yield curves (observable at commonly quoted intervals) as provided by an independent third party.

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, net of allowance for credit losses: 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 credit losses is considered to be a reasonable estimate of loan discount for credit quality concerns.

FHLB stock and other investments: 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.

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.

Commitments to extend credit: These are primarily for adjustable rate loans, and 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.

Time deposits: The fair value is estimated using a discounted cash flow analysis that uses interest rates offered at each reporting date by the Company for certificates with similar remaining maturities, resulting in a Level 2 classification.

Subordinated notes: The fair value is estimated by discounting the future cash flow using the current three-month CME Term SOFR. 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.

Other borrowings: The carrying amount is estimated to be fair 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.

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+ Details

Investment Securities (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Summary of Debt Securities Held-to-maturity

A summary of the amortized cost and fair value related to securities held-to-maturity as of June 30, 2024 and December 31, 2023 is presented in Table 3.1.


Table 3.1: Securities Held-to-Maturity
(in thousands)	Amortized Cost		Gross Unrealized				Fair Value
			Gains		(Losses)
June 30, 2024
Obligations of states and political subdivisions	$	2,973	$	—	$	(172)	$	2,801
Total held-to-maturity	$	2,973	$	—	$	(172)	$	2,801
December 31, 2023
Obligations of states and political subdivisions	$	3,077	$	—	$	(164)	$	2,913
Total held-to-maturity	$	3,077	$	—	$	(164)	$	2,913

Summary of Debt Securities Available-for-sale

A summary of the amortized cost and fair value related to securities available-for-sale as of June 30, 2024 and December 31, 2023 is presented in Table 3.2. Securities available-for-sale did not have an allowance for credit losses as of June 30, 2024 or December 31, 2023.


Table 3.2: Securities Available-for-Sale
(in thousands)	Amortized Cost		Gross Unrealized				Fair Value
			Gains		(Losses)
June 30, 2024
U.S. government agency securities	$	9,494	$	144	$	(109)	$	9,529
Mortgage-backed securities	65,712		3		(11,695)		54,020
Obligations of states and political subdivisions	43,027		2		(5,500)		37,529
Collateralized mortgage obligations	336		—		(31)		305
Corporate bonds	2,000		—		(179)		1,821
Total available-for-sale	$	120,569	$	149	$	(17,514)	$	103,204
December 31, 2023
U.S. government agency securities	$	10,548	$	142	$	(149)	$	10,541
Mortgage-backed securities	68,585		7		(11,619)		56,973
Obligations of states and political subdivisions	43,288		12		(4,841)		38,459
Collateralized mortgage obligations	367		—		(35)		332
Corporate bonds	2,000		—		(222)		1,778
Total available-for-sale	$	124,788	$	161	$	(16,866)	$	108,083

Summary of Investment Debt Securities by Contractual Maturity

The amortized cost and fair value of investment securities by contractual maturity at June 30, 2024 and December 31, 2023 are shown in Table 3.3. 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.


Table 3.3: Contractual Maturities - Investment Securities
(in thousands)	June 30, 2024								December 31, 2023
	Held-to-Maturity				Available-for-Sale				Held-to-Maturity				Available-for-Sale
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	218	$	205	$	—	$	—	$	277	$	263	$	—	$	—
After one but within five years	920		867		806		736		935		885		394		367
After five years through ten years	1,340		1,263		8,511		7,459		1,365		1,292		6,407		5,838
After ten years	495		466		33,710		29,334		500		473		36,487		32,254

Investment securities not due at a single maturity date:
U.S. government agency securities	—		—		9,494		9,529		—		—		10,548		10,541
Mortgage-backed securities	—		—		65,712		54,020		—		—		68,585		56,973
Collateralized mortgage obligations	—		—		336		305		—		—		367		332
Corporate bonds	—		—		2,000		1,821		—		—		2,000		1,778
Total	$	2,973	$	2,801	$	120,569	$	103,204	$	3,077	$	2,913	$	124,788	$	108,083

Schedule of Pledged Investment Securities

Pledged investment securities are shown in Table 3.4.


Table 3.4: Pledged Investment Securities
(in thousands)	June 30, 2024		December 31, 2023
Pledged to:
The State of California, securing deposits of public funds and borrowings	$	52,687	$	55,435
The Federal Reserve Discount Window, increasing borrowing capacity	47,094		48,964
Total pledged investment securities	$	99,781	$	104,399

Schedule of Unrealized Losses and Fair Value of Available-for-sale Securities

Table 3.5 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 June 30, 2024 and December 31, 2023.


Table 3.5: Securities Available-for-Sale in Continuous Unrealized Loss Positions
(in thousands)	Less than 12 months				12 months or more				Total securities in a loss position
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
June 30, 2024
U.S. government agency securities	$	199	$	(1)	$	5,549	$	(108)	$	5,748	$	(109)
Mortgage-backed securities	1,013		(2)		52,686		(11,693)		53,699		(11,695)
Obligations of states and political subdivisions	512		—		36,016		(5,500)		36,528		(5,500)
Collateralized mortgage obligations	—		—		304		(31)		304		(31)
Corporate bonds	—		—		1,821		(179)		1,821		(179)
Total temporarily impaired securities	$	1,724	$	(3)	$	96,376	$	(17,511)	$	98,100	$	(17,514)

December 31, 2023
U.S. government agency securities	$	1,130	$	(14)	$	7,081	$	(135)	$	8,211	$	(149)
Mortgage-backed securities	—		—		55,609		(11,619)		55,609		(11,619)
Obligations of states and political subdivisions	—		—		36,930		(4,841)		36,930		(4,841)
Collateralized mortgage obligations	—		—		332		(35)		332		(35)
Corporate bonds	—		—		1,778		(222)		1,778		(222)
Total temporarily impaired securities	$	1,130	$	(14)	$	101,730	$	(16,852)	$	102,860	$	(16,866)

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

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-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

Reference 18: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-5B

+ Details

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends paid (in USD per share)	$ 0.20	$ 0.20	$ 0.40	$ 0.35

Commitments and Contingencies - Unfunded Loan Commitments and Standby Letters of Credit (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	$ 449,310	$ 458,887
Commercial lines of credit
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	196,210	181,855
Undisbursed construction loans
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	120,579	134,828
Undisbursed commercial real estate loans
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	101,160	107,712
Agricultural lines of credit
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	24,918	24,635
Undisbursed residential real estate loans
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	4,455	6,538
Undisbursed agricultural real estate loans
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	0	1,200
Other
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total commitments and standby letters of credit	$ 1,988	$ 2,119

Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Loans and Allowance for Credit Losses

The Company’s loan portfolio is its largest class of earning assets and typically provides higher yields than other types of earning assets. Associated with the higher yields is an inherent amount of credit risk which the Company attempts to mitigate through strong underwriting practices. Table 4.1 presents the balance of each major product type within the Company’s portfolio as of the dates indicated.


Table 4.1: Loans Outstanding
(in thousands)	June 30, 2024		December 31, 2023
Real estate:
Commercial	$	2,774,001	$	2,685,419
Commercial land and development	4,766		15,551
Commercial construction	72,444		62,863
Residential construction	9,011		15,456
Residential	29,641		25,893
Farmland	48,852		51,669
Commercial:
Secured	154,080		165,109
Unsecured	23,198		23,850
Consumer and other	152,564		38,166
Subtotal	3,268,557		3,083,976
Net deferred loan fees	(2,266)		(2,257)
Loans held for investment	3,266,291		3,081,719
Allowance for credit losses	(35,406)		(34,431)
Loans held for investment, net of allowance for credit losses	$	3,230,885	$	3,047,288

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 may be 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 completed 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 using on-site inspections and are generally considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing.

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

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

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

Credit Quality Indicators

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

Loans rated pass: These are loans to borrowers with satisfactory financial support, repayment capacity, and credit strength. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history, and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Company’s policy regarding debt service coverage ratios. These borrowers are capable of sustaining normal economic, market, or operational setbacks without significant financial impacts and their 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 may 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 the 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.

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.

Table 4.2 presents the amortized cost basis of the Company’s loans by origination year, where origination is defined as the later of origination or renewal date, and credit quality indicator as of the periods indicated.


Table 4.2: Loans by Risk Category and Vintage


	Amortized Cost Basis by Origination Year as of June 30, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial
Pass	$	250,845	$	323,243	$	934,312	$	651,701	$	231,487	$	330,193	$	4,879	$	—	$	2,726,660
Watch	644		—		17,734		19,363		4,670		340		—		—		42,751
Substandard	—		—		—		—		—		1,818		—		—		1,818

Total	251,489		323,243		952,046		671,064		236,157		332,351		4,879		—		2,771,229
Commercial land and development
Pass	1,636		1,000		1,259		—		182		695		—		—		4,772



Total	1,636		1,000		1,259		—		182		695		—		—		4,772
Commercial construction
Pass	2,982		28,518		23,512		—		11,231		5,897		—		—		72,140



Total	2,982		28,518		23,512		—		11,231		5,897		—		—		72,140
Residential construction
Pass	5,099		—		—		3,914		—		—		—		—		9,013



Total	5,099		—		—		3,914		—		—		—		—		9,013
Residential
Pass	5,686		4,814		2,911		6,148		2,240		6,559		1,308		—		29,666



Total	5,686		4,814		2,911		6,148		2,240		6,559		1,308		—		29,666
Farmland
Pass	900		2,074		7,114		11,761		7,129		18,552		—		—		47,530
Watch	—		—		799		—		—		—		—		502		1,301


Total	900		2,074		7,913		11,761		7,129		18,552		—		502		48,831
Commercial:
Secured
Pass	10,976		24,789		24,675		11,212		10,608		17,313		41,113		—		140,686
Watch	—		193		9,661		2,591		97		1,338		—		—		13,880
Substandard	—		—		—		—		—		60		—		—		60

Total	10,976		24,982		34,336		13,803		10,705		18,711		41,113		—		154,626
Unsecured
Pass	2,394		4,782		3,292		4,260		5,322		1,883		1,280		—		23,213



Total	2,394		4,782		3,292		4,260		5,322		1,883		1,280		—		23,213
Consumer and other
Pass	98,048		38,134		9,468		6,874		2		250		—		—		152,776
Watch	—		—		15		—		—		—		—		—		15
Substandard	—		—		10		—		—		—		—		—		10

Total	98,048		38,134		9,493		6,874		2		250		—		—		152,801
Total
Pass	378,566		427,354		1,006,543		695,870		268,201		381,342		48,580		—		3,206,456
Watch	644		193		28,209		21,954		4,767		1,678		—		502		57,947
Substandard	—		—		10		—		—		1,878		—		—		1,888

Total	$	379,210	$	427,547	$	1,034,762	$	717,824	$	272,968	$	384,898	$	48,580	$	502	$	3,266,291


Table 4.2: Loans by Risk Category and Vintage (continued)


	Amortized Cost Basis by Origination Year as of December 31, 2023
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial
Pass	$	329,876	$	992,181	$	714,965	$	238,655	$	128,424	$	247,030	$	4,685	$	—	$	2,655,816
Watch	—		8,534		6,274		4,727		574		4,896		—		—		25,005
Substandard	—		—		—		—		—		1,890		—		—		1,890

Total	329,876		1,000,715		721,239		243,382		128,998		253,816		4,685		—		2,682,711
Commercial land and development
Pass	11,388		3,229		—		184		—		733		—		—		15,534



Total	11,388		3,229		—		184		—		733		—		—		15,534
Commercial construction
Pass	9,074		32,154		4,189		11,230		—		5,897		—		—		62,544



Total	9,074		32,154		4,189		11,230		—		5,897		—		—		62,544
Residential construction
Pass	2,412		9,128		3,912		—		—		—		—		—		15,452



Total	2,412		9,128		3,912		—		—		—		—		—		15,452


Residential
Pass	4,838		3,964		6,244		2,279		1,182		5,995		1,420		—		25,922



Total	4,838		3,964		6,244		2,279		1,182		5,995		1,420		—		25,922
Farmland
Pass	2,311		8,037		12,678		7,860		12,365		8,391		4		—		51,646



Total	2,311		8,037		12,678		7,860		12,365		8,391		4		—		51,646
Commercial:
Secured
Pass	25,299		28,879		14,304		12,164		9,918		10,363		50,020		—		150,947
Watch	189		8,802		2,705		63		154		941		1,727		—		14,581
Substandard	—		—		—		—		45		27		—		—		72

Total	25,488		37,681		17,009		12,227		10,117		11,331		51,747		—		165,600
Unsecured
Pass	3,891		3,782		4,902		5,963		2,240		7		3,072		—		23,857



Total	3,891		3,782		4,902		5,963		2,240		7		3,072		—		23,857
Consumer and other
Pass	18,489		11,359		8,264		6		—		307		—		—		38,425
Watch	—		16		—		—		—		—		—		—		16
Substandard	—		12		—		—		—		—		—		—		12

Total	18,489		11,387		8,264		6		—		307		—		—		38,453
Total
Pass	407,578		1,092,713		769,458		278,341		154,129		278,723		59,201		—		3,040,143
Watch	189		17,352		8,979		4,790		728		5,837		1,727		—		39,602
Substandard	—		12		—		—		45		1,917		—		—		1,974

Total	$	407,767	$	1,110,077	$	778,437	$	283,131	$	154,902	$	286,477	$	60,928	$	—	$	3,081,719

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 generally 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 consumer loans based on delinquency. Management also reviews loans graded “watch” or worse, regardless of loan type, no less than quarterly.

Table 4.3 shows the age analysis of past due loans by class as of the dates shown.


Table 4.3: Age Analysis of Past Due Loans by Class
(in thousands)	Past Due
	30-59 Days		60-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
June 30, 2024
Real estate:
Commercial	$	—	$	—	$	—	$	—	$	2,771,229	$	2,771,229
Commercial land and development	—		—		—		—		4,772		4,772
Commercial construction	—		—		—		—		72,140		72,140
Residential construction	—		—		—		—		9,013		9,013
Residential	—		—		—		—		29,666		29,666
Farmland	—		—		—		—		48,831		48,831
Commercial:
Secured	549		—		—		549		154,077		154,626
Unsecured	—		—		—		—		23,213		23,213

Consumer and other	80		—		—		80		152,721		152,801
Total	$	629	$	—	$	—	$	629	$	3,265,662	$	3,266,291

December 31, 2023
Real estate:
Commercial	$	—	$	—	$	—	$	—	$	2,682,711	$	2,682,711
Commercial land and development	—		—		—		—		15,534		15,534
Commercial construction	—		—		—		—		62,544		62,544
Residential construction	—		—		—		—		15,452		15,452
Residential	—		—		—		—		25,922		25,922
Farmland	—		—		—		—		51,646		51,646
Commercial:
Secured	—		—		—		—		165,600		165,600
Unsecured	—		—		—		—		23,857		23,857

Consumer and other	76		—		—		76		38,377		38,453
Total	$	76	$	—	$	—	$	76	$	3,081,643	$	3,081,719

There were no loans greater than 90 days past due and still accruing interest income as of June 30, 2024 or December 31, 2023.

No collateral dependent loans were in process of foreclosure at June 30, 2024 or December 31, 2023.

Non-accrual loans, segregated by class, as of June 30, 2024 and December 31, 2023 are shown in Table 4.4.


Table 4.4: Nonaccrual Loans
(in thousands)	June 30, 2024		December 31, 2023
Real estate:
Commercial	$	1,821	$	1,893

Commercial:
Secured	60		72

Total non-accrual loans	$	1,881	$	1,965

No interest income was recognized on non-accrual loans in the three and six months ended June 30, 2024 or June 30, 2023. Non-accrual real estate loans did not have an allowance for credit losses as of June 30, 2024. Interest income can be recognized on non-accrual loans in cases where resolution occurs through a sale or full payment is received on the non-accrual loan.

The amount of foregone interest income related to non-accrual loans was $38.2 thousand and $77.4 thousand for the three and six months ended June 30, 2024, respectively, as compared to $26.1 thousand and $35.3 thousand for the three and six months ended June 30, 2023, respectively.

Allowance for Credit Losses

Table 4.5 discloses activity in the allowance for credit losses for the periods indicated.


Table 4.5: Allowance for Credit Losses
(in thousands)	Beginning Balance		Effect of Adoption of ASC 326		Charge-offs		Recoveries		Provision (Benefit)		Ending Balance
Three months ended June 30, 2024
Real estate:
Commercial	$	28,895	$	—	$	—	$	—	$	(4,187)	$	24,708
Commercial land and development	164		—		—		—		(92)		72
Commercial construction	697		—		—		—		400		1,097
Residential construction	114		—		—		—		(14)		100
Residential	164		—		—		—		31		195
Farmland	438		—		—		—		(36)		402
Commercial:
Secured	3,262		—		(1,239)		57		5,306		7,386
Unsecured	259		—		(36)		—		(9)		214

Consumer and other	660		—		(72)		93		551		1,232

Total	$	34,653	$	—	$	(1,347)	$	150	$	1,950	$	35,406


Table 4.5: Allowance for Credit Losses (continued)
(in thousands)	Beginning Balance		Effect of Adoption of ASC 326		Charge-offs		Recoveries		Provision (Benefit)		Ending Balance
Three months ended June 30, 2023
Real estate:
Commercial	$	27,119	$	—	$	—	$	—	$	434	$	27,553
Commercial land and development	226		—		—		—		(42)		184
Commercial construction	1,438		—		—		—		(226)		1,212
Residential construction	175		—		—		—		42		217
Residential	181		—		—		—		(29)		152
Farmland	219		—		—		—		17		236
Commercial:
Secured	4,258		—		(1,124)		47		570		3,751
Unsecured	152		—		—		—		57		209

Consumer and other	404		—		(137)		106		97		470

Total	$	34,172	$	—	$	(1,261)	$	153	$	920	$	33,984

Six months ended June 30, 2024
Real estate:
Commercial	$	29,015	$	—	$	—	$	—	$	(4,307)	$	24,708
Commercial land and development	178		—		—		—		(106)		72
Commercial construction	718		—		—		—		379		1,097
Residential construction	89		—		—		—		11		100
Residential	151		—		—		—		44		195
Farmland	399		—		—		—		3		402
Commercial:
Secured	3,314		—		(2,237)		239		6,070		7,386
Unsecured	189		—		(70)		—		95		214

Consumer and other	378		—		(143)		186		811		1,232

Total	$	34,431	$	—	$	(2,450)	$	425	$	3,000	$	35,406

Six months ended June 30, 2023
Real estate:
Commercial	$	19,216	$	7,606	$	—	$	—	$	731	$	27,553
Commercial land and development	54		74		—		—		56		184
Commercial construction	645		882		—		—		(315)		1,212
Residential construction	49		81		—		—		87		217
Residential	175		3		—		—		(26)		152
Farmland	644		(396)		—		—		(12)		236
Commercial:
Secured	7,098		(3,060)		(1,611)		139		1,185		3,751
Unsecured	116		37		—		—		56		209

Consumer and other	347		80		(522)		507		58		470
Unallocated	45		(45)		—		—		—		—
Total	$	28,389	$	5,262	$	(2,133)	$	646	$	1,820	$	33,984

Unfunded Loan Commitment Reserves

Unfunded loan commitment reserves are included in “Interest payable and other liabilities” in the unaudited consolidated balance sheets. Provisions for unfunded loan commitments are included in “Provision for credit losses” in the unaudited consolidated statements of income.


Table 4.6: Unfunded Loan Commitment Reserves
	Three months ended				Six months ended
(in thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Balance at beginning of period	$	1,097	$	1,217	$	1,247	$	125
Effect of adoption of ASC 326	—		—		—		1,092
Provision	50		330		(100)		330


Balance at end of period	$	1,147	$	1,547	$	1,147	$	1,547

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 $1.6 billion and $1.7 billion at June 30, 2024 and December 31, 2023, respectively. In addition, the Company pledges eligible tenants in common loans, which totaled $1.2 billion at June 30, 2024 and December 31, 2023, to secure its borrowing capacity with the Federal Reserve Discount Window. See Note 6, Long Term Debt and Other Borrowings, for further discussion of these borrowings.

Long Term Debt and Other Borrowings - Narrative (Details)	Aug. 17, 2022 USD ($)	Jun. 30, 2024 USD ($) federal_fund	Dec. 31, 2023 USD ($) federal_fund
Debt Instrument [Line Items]
Subordinated notes, net		$ 73,822,000	$ 73,749,000
Number of unsecured federal funds \| federal_fund		5	5
Subordinated Debt
Debt Instrument [Line Items]
Debt issuance costs		$ 1,500,000
Amortization, debt issuance costs		$ 300,000
Subordinated Debt \| Fixed-to-floating Rate Subordinated Notes Issued August 2022
Debt Instrument [Line Items]
Subordinated notes, net	$ 75,000,000.0
Interest rate (in percent)	6.00%
Basis spread on variable rate	3.29%
Floating interest rate (in percent)		8.60%
Subordinated Debt \| Entity controlled by existing and former board members and their affiliates
Debt Instrument [Line Items]
Face amount	$ 19,300,000
Line of Credit
Debt Instrument [Line Items]
Long-term line of credit		$ 0	$ 0
Line of Credit \| Federal Reserve Discount Window
Debt Instrument [Line Items]
Maximum borrowing capacity		829,200,000	770,600,000
Amount outstanding		0	0
Line of Credit \| Five Unsecured Federal Funds Line Of Credit
Debt Instrument [Line Items]
Long-term line of credit		$ 175,000,000.0	$ 175,000,000.0

Long Term Debt and Other Borrowings

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Long Term Debt and Other Borrowings

Subordinated notes: On August 17, 2022, the Company completed a private placement of $75.0 million of fixed-to-floating rate subordinated notes to certain qualified investors, of which $19.3 million was purchased by existing or former members of the board of directors and their affiliates. The notes will be used for capital management and general corporate purposes, including, without limitation, the redemption of existing subordinated notes. The subordinated notes have a maturity date of September 1, 2032 and bear interest, payable semi-annually, at the rate of 6.00% per annum until September 1, 2027. On that date, the interest rate will be adjusted to float at a rate equal to the three-month Term SOFR plus 329.0 basis points (8.60% as of June 30, 2024) until maturity. The notes include a right of prepayment, on or after August 17, 2027 or, 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 the Company for regulatory capital purposes. Eligible amounts will be phased out by 20% per year beginning five years before the maturity date of the notes. Debt issuance costs incurred in conjunction with the notes were $1.5 million, of which $0.3 million has been amortized as of June 30, 2024. 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 June 30, 2024 and December 31, 2023, the carrying value of the Company’s subordinated notes outstanding was $73.8 million and $73.7 million, respectively.

Other borrowings: The Company entered into an agreement with the FHLB which granted the FHLB a blanket lien on certain loans receivable as collateral for a borrowing line. The Company’s total financing availability is based on the dollar

volume of qualifying loan collateral. The Company’s total financing availability with the FHLB is decreased by outstanding borrowings and letters of credit (“LCs”) issued on behalf of the Company, as shown in Table 6.1.


Table 6.1: Financing Availability with the FHLB
(in thousands)	June 30, 2024		December 31, 2023
Total financing ability from the FHLB	$	1,004,397	$	996,712
Less: outstanding borrowings	—		170,000
Less: LCs pledged to secure State of California deposits	146,500		271,500
Less: LCs pledged to secure local agency deposits	425,000		410,000
Total LCs issued	571,500		681,500
Available borrowing capacity with the FHLB	$	432,897	$	145,212

At June 30, 2024 and December 31, 2023, the Company had the ability to borrow from the Federal Reserve Discount Window. At June 30, 2024 and December 31, 2023, the borrowing capacity under this arrangement was $829.2 million and $770.6 million, respectively. There were no amounts outstanding at June 30, 2024 and December 31, 2023. The borrowing line is secured by certain liens on the Company’s loans and certain available-for-sale securities.

At June 30, 2024 and December 31, 2023, the Company had five unsecured federal funds lines of credit with its correspondent banks totaling $175.0 million. There were no amounts outstanding at June 30, 2024 and December 31, 2023.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-40379
Entity Registrant Name	FIVE STAR BANCORP
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	75-3100966
Entity Address, Address Line One	3100 Zinfandel Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Rancho Cordova
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95670
City Area Code	(916)
Local Phone Number	626-5000
Title of 12(b) Security	Common stock, no par value per share
Trading Symbol	FSBC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		21,319,583
Entity Central Index Key	0001275168
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Interest Bearing Deposits - Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Interest-bearing Deposits
2024	$ 285,068
2025	46,561
2026	1,566
2027	100
2028	136
Total time deposits	$ 333,431	$ 466,600

Shareholders’ Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
	Apr. 18, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock declared (in USD per share)	$ 0.20
Dividends payable	$ 4,300
Stock compensation expense		$ 300	$ 200	$ 593	$ 478
Unvested restricted shares (in shares)		137,457	82,324	137,457	82,324
Unrecognized compensation expense				$ 2,600
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining term on the unvested restricted shares (in years)				3 years 4 months 20 days
Employee \| Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)				5 years
Employee \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)				3 years
Employee \| Maximum \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)				7 years
Executives and Directors \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)				3 years
Share-Based Payment Arrangement, Executives \| Minimum \| Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)				3 years
Share-Based Payment Arrangement, Executives \| Maximum \| Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)				5 years
Share-Based Payment Arrangement, Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)				1 year

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net income	$ 10,782	$ 12,729	$ 21,413	$ 25,890
Unrealized gain (loss) on securities:
Net unrealized holding gain (loss) on securities available-for-sale during the period	295	(1,462)	(660)	679
Less: Income tax expense (benefit) related to items of other comprehensive income (loss)	87	(432)	(195)	201
Other comprehensive income (loss)	208	(1,030)	(465)	478
Total comprehensive income	$ 10,990	$ 11,699	$ 20,948	$ 26,368

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

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

+ References

+ Details

Shareholders’ Equity (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Earnings Per Share


Table 7.1: EPS
	Three months ended				Six months ended
(in thousands, except share count and earnings per common share)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Net income	$	10,782	$	12,729	$	21,413	$	25,890

Basic weighted average common shares outstanding	21,039,798		17,165,344		19,115,333		17,157,801
Add: Dilutive effects of assumed vesting of restricted stock	18,287		3,651		50,207		24,067
Total dilutive weighted average common shares outstanding	21,058,085		17,168,995		19,165,540		17,181,868
Earnings per common share:
Basic EPS	$	0.51	$	0.74	$	1.12	$	1.51
Diluted EPS	$	0.51	$	0.74	1.12		1.51

Nonvested Restricted Stock Shares

Table 7.2 summarizes activity related to restricted shares for the periods indicated.


Table 7.2: Restricted Share Activity
	For the three months ended June 30,						For the six months ended June 30,
	2024			2023			2024			2023
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Beginning of the period balance	162,348	$	21.22	108,363	$	21.43	69,338	$	20.53	96,826	$	20.34
Shares granted	—	—		—	—		96,380	21.97		16,978	28.52
Shares vested	(23,723)	20.00		(24,492)	20.00		(26,975)	21.03		(29,933)	20.78
Shares forfeited	(1,168)	21.69		(1,547)	26.95		(1,286)	21.54		(1,547)	26.95
End of the period balance	137,457	$	21.43	82,324	$	21.75	137,457	$	21.43	82,324	$	21.75

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Fair Value of Assets and Liabilities - Fair Value Estimates for Financial Instruments by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financial assets:
Securities available-for-sale	$ 103,204	$ 108,083
Securities held-to-maturity	2,801	2,913
Carrying Amounts
Financial assets:
Cash and cash equivalents	190,359	321,576
Time deposits in banks	4,097	5,858
Securities available-for-sale	103,204	108,083
Securities held-to-maturity	2,973	3,077
Loans held for sale	5,322	11,464
Loans held for investment, net of allowance for credit losses	3,230,885	3,047,288
FHLB stock and other investments	22,801	21,801
Interest rate swap	5	10
Financial liabilities:
Interest rate swap	5	10
Time deposits	333,431	466,572
Subordinated notes	73,822	73,749
Other borrowings	0	170,000
Fair Value \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	190,359	321,576
Time deposits in banks	4,097	5,858
Fair Value \| Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	103,204	108,083
Loans held for sale	5,907	12,626
Interest rate swap	5	10
Financial liabilities:
Interest rate swap	5	10
Time deposits	332,557	465,205
Other borrowings	0	170,000
Fair Value \| Significant Unobservable Inputs (Level 3)
Financial assets:
Securities held-to-maturity	2,801	2,913
Loans held for investment, net of allowance for credit losses	3,081,250	2,891,925
Financial liabilities:
Subordinated notes	$ 72,772	$ 72,693

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Other Commitments

The contractual amounts of unfunded loan commitments and standby letters of credit not reflected in the unaudited consolidated balance sheets at the dates indicated are presented in Table 8.1.


Table 8.1: Unfunded Loan Commitments and Standby Letters of Credit
(in thousands)	June 30, 2024		December 31, 2023
Commercial lines of credit	$	196,210	$	181,855
Undisbursed construction loans	120,579		134,828
Undisbursed commercial real estate loans	101,160		107,712
Agricultural lines of credit	24,918		24,635
Undisbursed residential real estate loans	4,455		6,538
Undisbursed agricultural real estate loans	—		1,200
Other	1,988		2,119
Total commitments and standby letters of credit	$	449,310	$	458,887

Loans and Allowance for Credit Losses - Balance of Each Major Product Type (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Subtotal	$ 3,268,557		$ 3,083,976
Net deferred loan fees	(2,266)		(2,257)
Loans held for investment	3,266,291		3,081,719
Allowance for credit losses	(35,406)	$ (34,653)	(34,431)	$ (33,984)	$ (34,172)	$ (28,389)
Loans held for investment, net of allowance for credit losses	3,230,885		3,047,288
Commercial
Financing Receivable, Past Due [Line Items]
Subtotal	2,774,001		2,685,419
Loans held for investment	2,771,229		2,682,711
Allowance for credit losses	(24,708)	(28,895)	(29,015)	(27,553)	(27,119)	(19,216)
Commercial land and development
Financing Receivable, Past Due [Line Items]
Subtotal	4,766		15,551
Loans held for investment	4,772		15,534
Allowance for credit losses	(72)	(164)	(178)	(184)	(226)	(54)
Commercial construction
Financing Receivable, Past Due [Line Items]
Subtotal	72,444		62,863
Loans held for investment	72,140		62,544
Allowance for credit losses	(1,097)	(697)	(718)	(1,212)	(1,438)	(645)
Residential construction
Financing Receivable, Past Due [Line Items]
Subtotal	9,011		15,456
Loans held for investment	9,013		15,452
Allowance for credit losses	(100)	(114)	(89)	(217)	(175)	(49)
Residential
Financing Receivable, Past Due [Line Items]
Subtotal	29,641		25,893
Loans held for investment	29,666		25,922
Allowance for credit losses	(195)	(164)	(151)	(152)	(181)	(175)
Farmland
Financing Receivable, Past Due [Line Items]
Subtotal	48,852		51,669
Loans held for investment	48,831		51,646
Allowance for credit losses	(402)	(438)	(399)	(236)	(219)	(644)
Secured
Financing Receivable, Past Due [Line Items]
Subtotal	154,080		165,109
Loans held for investment	154,626		165,600
Allowance for credit losses	(7,386)	(3,262)	(3,314)	(3,751)	(4,258)	(7,098)
Unsecured
Financing Receivable, Past Due [Line Items]
Subtotal	23,198		23,850
Loans held for investment	23,213		23,857
Allowance for credit losses	(214)	(259)	(189)	(209)	(152)	(116)
Consumer and other
Financing Receivable, Past Due [Line Items]
Subtotal	152,564		38,166
Loans held for investment	152,801		38,453
Allowance for credit losses	$ (1,232)	$ (660)	$ (378)	$ (470)	$ (404)	$ (347)

Loans and Allowance for Credit Losses - Age Analysis of Past Due Loans by Class (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	$ 3,266,291	$ 3,081,719
30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	629	76
60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	629	76
Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	3,265,662	3,081,643
Commercial
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	2,771,229	2,682,711
Commercial \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	2,771,229	2,682,711
Commercial land and development
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	4,772	15,534
Commercial land and development \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial land and development \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial land and development \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial land and development \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial land and development \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	4,772	15,534
Commercial construction
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	72,140	62,544
Commercial construction \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial construction \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial construction \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial construction \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Commercial construction \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	72,140	62,544
Residential construction
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	9,013	15,452
Residential construction \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Residential construction \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Residential construction \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Residential construction \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Residential construction \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	9,013	15,452
Residential
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	29,666	25,922
Residential \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Residential \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Residential \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Residential \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Residential \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	29,666	25,922
Farmland
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	48,831	51,646
Farmland \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Farmland \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Farmland \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Farmland \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Farmland \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	48,831	51,646
Secured
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	154,626	165,600
Secured \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	549	0
Secured \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Secured \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Secured \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	549	0
Secured \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	154,077	165,600
Unsecured
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	23,213	23,857
Unsecured \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Unsecured \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Unsecured \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Unsecured \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Unsecured \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	23,213	23,857
Consumer and other
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	152,801	38,453
Consumer and other \| 30-59 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	80	76
Consumer and other \| 60-89 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Consumer and other \| Greater Than 90 Days
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	0	0
Consumer and other \| Total Past Due
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	80	76
Consumer and other \| Current
Financing Receivable, Past Due [Line Items]
Total Loans Receivable	$ 152,721	$ 38,377

Investment Securities - Amortized Cost and Fair Value of Securities Available-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Marketable Securities [Line Items]
Amortized Cost	$ 120,569	$ 124,788
Gross unrealized gains	149	161
Gross unrealized losses	(17,514)	(16,866)
Securities available-for-sale	103,204	108,083
U.S. government agency securities
Marketable Securities [Line Items]
Amortized Cost	9,494	10,548
Gross unrealized gains	144	142
Gross unrealized losses	(109)	(149)
Securities available-for-sale	9,529	10,541
Mortgage-backed securities
Marketable Securities [Line Items]
Amortized Cost	65,712	68,585
Gross unrealized gains	3	7
Gross unrealized losses	(11,695)	(11,619)
Securities available-for-sale	54,020	56,973
Obligations of states and political subdivisions
Marketable Securities [Line Items]
Amortized Cost	43,027	43,288
Gross unrealized gains	2	12
Gross unrealized losses	(5,500)	(4,841)
Securities available-for-sale	37,529	38,459
Collateralized mortgage obligations
Marketable Securities [Line Items]
Amortized Cost	336	367
Gross unrealized gains	0	0
Gross unrealized losses	(31)	(35)
Securities available-for-sale	305	332
Corporate bonds
Marketable Securities [Line Items]
Amortized Cost	2,000	2,000
Gross unrealized gains	0	0
Gross unrealized losses	(179)	(222)
Securities available-for-sale	$ 1,821	$ 1,778

Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

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 amounts of unfunded loan commitments and standby letters of credit not reflected in the unaudited consolidated balance sheets at the dates indicated are presented in Table 8.1.


Table 8.1: Unfunded Loan Commitments and Standby Letters of Credit
(in thousands)	June 30, 2024		December 31, 2023
Commercial lines of credit	$	196,210	$	181,855
Undisbursed construction loans	120,579		134,828
Undisbursed commercial real estate loans	101,160		107,712
Agricultural lines of credit	24,918		24,635
Undisbursed residential real estate loans	4,455		6,538
Undisbursed agricultural real estate loans	—		1,200
Other	1,988		2,119
Total commitments and standby letters of credit	$	449,310	$	458,887

The Company records an allowance for credit 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 credit losses on unfunded commitments totaled $1.1 million as of June 30, 2024 and $1.2 million as of December 31, 2023, which is recorded in “Interest payable and other liabilities” in the unaudited 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 89.76% of the Company’s loan portfolio at June 30, 2024 and 92.30% of the Company’s loan portfolio at December 31, 2023. 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 June 30, 2024, the Company had 99 deposit relationships that exceeded $5.0 million each, totaling $1.9 billion, or approximately 59.53% of total deposits. The Company’s largest single deposit relationship at June 30, 2024 totaled $227.7 million, or approximately 7.23% of total deposits. Management maintains the Company’s liquidity position and lines of credit with correspondent banks to mitigate the risk of large withdrawals by this group of large depositors.

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

Correspondent banking agreements: The Company maintains funds on deposit with other FDIC-insured financial institutions under correspondent banking agreements. Uninsured deposits through these agreements totaled approximately $23.7 million and $22.3 million at June 30, 2024 and December 31, 2023, respectively.

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.

Commitments and Contingencies - Narrative (Details) $ in Thousands	Jun. 30, 2024 USD ($) deposit_relationship	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Other Commitments [Line Items]
Allowance for credit loss	$ 35,406	$ 34,653	$ 34,431	$ 33,984	$ 34,172	$ 28,389
Real estate related loans (in percent)	89.76%		92.30%
Number of deposits \| deposit_relationship	99
Deposits over five million, total	$ 5,000
Deposits over five million, amount	$ 1,900,000
Percentage of deposits over five million deposits (in percent)	59.53%
Largest single deposit	$ 227,700
Percentage of largest single deposit to total deposits (in percent)	7.23%
Uninsured amount	$ 23,700		$ 22,300
Unfunded Loan Commitment
Other Commitments [Line Items]
Allowance for credit loss	$ 1,147	$ 1,097	$ 1,247	$ 1,547	$ 1,217	$ 125

Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Table 4.1 presents the balance of each major product type within the Company’s portfolio as of the dates indicated.


Table 4.1: Loans Outstanding
(in thousands)	June 30, 2024		December 31, 2023
Real estate:
Commercial	$	2,774,001	$	2,685,419
Commercial land and development	4,766		15,551
Commercial construction	72,444		62,863
Residential construction	9,011		15,456
Residential	29,641		25,893
Farmland	48,852		51,669
Commercial:
Secured	154,080		165,109
Unsecured	23,198		23,850
Consumer and other	152,564		38,166
Subtotal	3,268,557		3,083,976
Net deferred loan fees	(2,266)		(2,257)
Loans held for investment	3,266,291		3,081,719
Allowance for credit losses	(35,406)		(34,431)
Loans held for investment, net of allowance for credit losses	$	3,230,885	$	3,047,288

Summary of Credit Quality Indicators


Table 4.2: Loans by Risk Category and Vintage


	Amortized Cost Basis by Origination Year as of June 30, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial
Pass	$	250,845	$	323,243	$	934,312	$	651,701	$	231,487	$	330,193	$	4,879	$	—	$	2,726,660
Watch	644		—		17,734		19,363		4,670		340		—		—		42,751
Substandard	—		—		—		—		—		1,818		—		—		1,818

Total	251,489		323,243		952,046		671,064		236,157		332,351		4,879		—		2,771,229
Commercial land and development
Pass	1,636		1,000		1,259		—		182		695		—		—		4,772



Total	1,636		1,000		1,259		—		182		695		—		—		4,772
Commercial construction
Pass	2,982		28,518		23,512		—		11,231		5,897		—		—		72,140



Total	2,982		28,518		23,512		—		11,231		5,897		—		—		72,140
Residential construction
Pass	5,099		—		—		3,914		—		—		—		—		9,013



Total	5,099		—		—		3,914		—		—		—		—		9,013
Residential
Pass	5,686		4,814		2,911		6,148		2,240		6,559		1,308		—		29,666



Total	5,686		4,814		2,911		6,148		2,240		6,559		1,308		—		29,666
Farmland
Pass	900		2,074		7,114		11,761		7,129		18,552		—		—		47,530
Watch	—		—		799		—		—		—		—		502		1,301


Total	900		2,074		7,913		11,761		7,129		18,552		—		502		48,831
Commercial:
Secured
Pass	10,976		24,789		24,675		11,212		10,608		17,313		41,113		—		140,686
Watch	—		193		9,661		2,591		97		1,338		—		—		13,880
Substandard	—		—		—		—		—		60		—		—		60

Total	10,976		24,982		34,336		13,803		10,705		18,711		41,113		—		154,626
Unsecured
Pass	2,394		4,782		3,292		4,260		5,322		1,883		1,280		—		23,213



Total	2,394		4,782		3,292		4,260		5,322		1,883		1,280		—		23,213
Consumer and other
Pass	98,048		38,134		9,468		6,874		2		250		—		—		152,776
Watch	—		—		15		—		—		—		—		—		15
Substandard	—		—		10		—		—		—		—		—		10

Total	98,048		38,134		9,493		6,874		2		250		—		—		152,801
Total
Pass	378,566		427,354		1,006,543		695,870		268,201		381,342		48,580		—		3,206,456
Watch	644		193		28,209		21,954		4,767		1,678		—		502		57,947
Substandard	—		—		10		—		—		1,878		—		—		1,888

Total	$	379,210	$	427,547	$	1,034,762	$	717,824	$	272,968	$	384,898	$	48,580	$	502	$	3,266,291


Table 4.2: Loans by Risk Category and Vintage (continued)


	Amortized Cost Basis by Origination Year as of December 31, 2023
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial
Pass	$	329,876	$	992,181	$	714,965	$	238,655	$	128,424	$	247,030	$	4,685	$	—	$	2,655,816
Watch	—		8,534		6,274		4,727		574		4,896		—		—		25,005
Substandard	—		—		—		—		—		1,890		—		—		1,890

Total	329,876		1,000,715		721,239		243,382		128,998		253,816		4,685		—		2,682,711
Commercial land and development
Pass	11,388		3,229		—		184		—		733		—		—		15,534



Total	11,388		3,229		—		184		—		733		—		—		15,534
Commercial construction
Pass	9,074		32,154		4,189		11,230		—		5,897		—		—		62,544



Total	9,074		32,154		4,189		11,230		—		5,897		—		—		62,544
Residential construction
Pass	2,412		9,128		3,912		—		—		—		—		—		15,452



Total	2,412		9,128		3,912		—		—		—		—		—		15,452


Residential
Pass	4,838		3,964		6,244		2,279		1,182		5,995		1,420		—		25,922



Total	4,838		3,964		6,244		2,279		1,182		5,995		1,420		—		25,922
Farmland
Pass	2,311		8,037		12,678		7,860		12,365		8,391		4		—		51,646



Total	2,311		8,037		12,678		7,860		12,365		8,391		4		—		51,646
Commercial:
Secured
Pass	25,299		28,879		14,304		12,164		9,918		10,363		50,020		—		150,947
Watch	189		8,802		2,705		63		154		941		1,727		—		14,581
Substandard	—		—		—		—		45		27		—		—		72

Total	25,488		37,681		17,009		12,227		10,117		11,331		51,747		—		165,600
Unsecured
Pass	3,891		3,782		4,902		5,963		2,240		7		3,072		—		23,857



Total	3,891		3,782		4,902		5,963		2,240		7		3,072		—		23,857
Consumer and other
Pass	18,489		11,359		8,264		6		—		307		—		—		38,425
Watch	—		16		—		—		—		—		—		—		16
Substandard	—		12		—		—		—		—		—		—		12

Total	18,489		11,387		8,264		6		—		307		—		—		38,453
Total
Pass	407,578		1,092,713		769,458		278,341		154,129		278,723		59,201		—		3,040,143
Watch	189		17,352		8,979		4,790		728		5,837		1,727		—		39,602
Substandard	—		12		—		—		45		1,917		—		—		1,974

Total	$	407,767	$	1,110,077	$	778,437	$	283,131	$	154,902	$	286,477	$	60,928	$	—	$	3,081,719

Summary of Age Analysis of Past Due Loans

Table 4.3 shows the age analysis of past due loans by class as of the dates shown.


Table 4.3: Age Analysis of Past Due Loans by Class
(in thousands)	Past Due
	30-59 Days		60-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
June 30, 2024
Real estate:
Commercial	$	—	$	—	$	—	$	—	$	2,771,229	$	2,771,229
Commercial land and development	—		—		—		—		4,772		4,772
Commercial construction	—		—		—		—		72,140		72,140
Residential construction	—		—		—		—		9,013		9,013
Residential	—		—		—		—		29,666		29,666
Farmland	—		—		—		—		48,831		48,831
Commercial:
Secured	549		—		—		549		154,077		154,626
Unsecured	—		—		—		—		23,213		23,213

Consumer and other	80		—		—		80		152,721		152,801
Total	$	629	$	—	$	—	$	629	$	3,265,662	$	3,266,291

December 31, 2023
Real estate:
Commercial	$	—	$	—	$	—	$	—	$	2,682,711	$	2,682,711
Commercial land and development	—		—		—		—		15,534		15,534
Commercial construction	—		—		—		—		62,544		62,544
Residential construction	—		—		—		—		15,452		15,452
Residential	—		—		—		—		25,922		25,922
Farmland	—		—		—		—		51,646		51,646
Commercial:
Secured	—		—		—		—		165,600		165,600
Unsecured	—		—		—		—		23,857		23,857

Consumer and other	76		—		—		76		38,377		38,453
Total	$	76	$	—	$	—	$	76	$	3,081,643	$	3,081,719

Schedule of Non-accrual Loans

Non-accrual loans, segregated by class, as of June 30, 2024 and December 31, 2023 are shown in Table 4.4.


Table 4.4: Nonaccrual Loans
(in thousands)	June 30, 2024		December 31, 2023
Real estate:
Commercial	$	1,821	$	1,893

Commercial:
Secured	60		72

Total non-accrual loans	$	1,881	$	1,965

Disclosure of Activity in the Allowance For Loan Losses

Table 4.5 discloses activity in the allowance for credit losses for the periods indicated.


Table 4.5: Allowance for Credit Losses
(in thousands)	Beginning Balance		Effect of Adoption of ASC 326		Charge-offs		Recoveries		Provision (Benefit)		Ending Balance
Three months ended June 30, 2024
Real estate:
Commercial	$	28,895	$	—	$	—	$	—	$	(4,187)	$	24,708
Commercial land and development	164		—		—		—		(92)		72
Commercial construction	697		—		—		—		400		1,097
Residential construction	114		—		—		—		(14)		100
Residential	164		—		—		—		31		195
Farmland	438		—		—		—		(36)		402
Commercial:
Secured	3,262		—		(1,239)		57		5,306		7,386
Unsecured	259		—		(36)		—		(9)		214

Consumer and other	660		—		(72)		93		551		1,232

Total	$	34,653	$	—	$	(1,347)	$	150	$	1,950	$	35,406


Table 4.5: Allowance for Credit Losses (continued)
(in thousands)	Beginning Balance		Effect of Adoption of ASC 326		Charge-offs		Recoveries		Provision (Benefit)		Ending Balance
Three months ended June 30, 2023
Real estate:
Commercial	$	27,119	$	—	$	—	$	—	$	434	$	27,553
Commercial land and development	226		—		—		—		(42)		184
Commercial construction	1,438		—		—		—		(226)		1,212
Residential construction	175		—		—		—		42		217
Residential	181		—		—		—		(29)		152
Farmland	219		—		—		—		17		236
Commercial:
Secured	4,258		—		(1,124)		47		570		3,751
Unsecured	152		—		—		—		57		209

Consumer and other	404		—		(137)		106		97		470

Total	$	34,172	$	—	$	(1,261)	$	153	$	920	$	33,984

Six months ended June 30, 2024
Real estate:
Commercial	$	29,015	$	—	$	—	$	—	$	(4,307)	$	24,708
Commercial land and development	178		—		—		—		(106)		72
Commercial construction	718		—		—		—		379		1,097
Residential construction	89		—		—		—		11		100
Residential	151		—		—		—		44		195
Farmland	399		—		—		—		3		402
Commercial:
Secured	3,314		—		(2,237)		239		6,070		7,386
Unsecured	189		—		(70)		—		95		214

Consumer and other	378		—		(143)		186		811		1,232

Total	$	34,431	$	—	$	(2,450)	$	425	$	3,000	$	35,406

Six months ended June 30, 2023
Real estate:
Commercial	$	19,216	$	7,606	$	—	$	—	$	731	$	27,553
Commercial land and development	54		74		—		—		56		184
Commercial construction	645		882		—		—		(315)		1,212
Residential construction	49		81		—		—		87		217
Residential	175		3		—		—		(26)		152
Farmland	644		(396)		—		—		(12)		236
Commercial:
Secured	7,098		(3,060)		(1,611)		139		1,185		3,751
Unsecured	116		37		—		—		56		209

Consumer and other	347		80		(522)		507		58		470
Unallocated	45		(45)		—		—		—		—
Total	$	28,389	$	5,262	$	(2,133)	$	646	$	1,820	$	33,984


Table 4.6: Unfunded Loan Commitment Reserves
	Three months ended				Six months ended
(in thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Balance at beginning of period	$	1,097	$	1,217	$	1,247	$	125
Effect of adoption of ASC 326	—		—		—		1,092
Provision	50		330		(100)		330


Balance at end of period	$	1,147	$	1,547	$	1,147	$	1,547

Interest Bearing Deposits - Interest-Bearing Deposits (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Interest-bearing Deposits
Interest-bearing transaction accounts	$ 299,815	$ 320,356
Savings accounts	126,532	126,498
Money market accounts	1,564,120	1,282,369
Time accounts, $250 or more	192,344	344,694
Other time accounts	141,087	121,878
Total interest-bearing deposits	2,323,898	$ 2,195,795
Time deposits minimum	$ 250

Interest-Bearing Deposits (Tables)

6 Months Ended

Jun. 30, 2024

Interest-bearing Deposits

Schedule of Interest-Bearing Deposits.

Table 5.1 shows the composition of interest-bearing deposits as of June 30, 2024 and December 31, 2023.


Table 5.1: Interest-Bearing Deposits
(in thousands)	June 30, 2024		December 31, 2023
Interest-bearing transaction accounts	$	299,815	$	320,356
Savings accounts	126,532		126,498
Money market accounts	1,564,120		1,282,369
Time accounts, $250 or more	192,344		344,694
Other time accounts	141,087		121,878

Total interest-bearing deposits	$	2,323,898	$	2,195,795

Schedule of Time Deposit Maturities

Scheduled maturities of time deposits as of June 30, 2024 for the next five years are shown in Table 5.2.


Table 5.2: Scheduled Maturities of Time Deposits
(in thousands)
2024	$	285,068
2025	46,561
2026	1,566
2027	100
2028	136
Total time deposits	$	333,431

Schedule of Composition of Network Deposits

The composition of network deposits as of June 30, 2024 and December 31, 2023 is shown in Table 5.3.


Table 5.3: Network Deposits
(in thousands)	June 30, 2024		December 31, 2023
CDARS	$	17,397	$	16,325
ICS	682,875		620,199
Total network deposits	$	700,272	$	636,524

Schedule of Interest Expense Recognized on Interest-Bearing Deposits

Table 5.4 presents interest expense recognized on interest-bearing deposits for the periods ended June 30, 2024 and 2023.


Table 5.4: Interest Expense Recognized on Interest-Bearing Deposits
	Three months ended				Six months ended
(in thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Interest-bearing transaction accounts	$	1,104	$	825	$	2,230	$	1,258
Savings accounts	856		758		1,718		1,303
Money market accounts	13,388		8,136		25,543		13,572
Time accounts, $250 or more	2,412		2,634		6,235		4,597
Other time accounts	957		1,616		2,502		2,617
Total interest expense on interest-bearing deposits	$	18,717	$	13,969	$	38,228	$	23,347

Subsequent Events - Narrative (Details) - $ / shares	Jul. 18, 2024	Apr. 18, 2024
Subsequent Event [Line Items]
Common stock declared (in USD per share)		$ 0.20
Subsequent Event
Subsequent Event [Line Items]
Common stock declared (in USD per share)	$ 0.20

Loans and Allowance for Credit Losses - Credit Quality Indicators Related to the Company’s Loans by Class (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
2024	$ 379,210	$ 407,767
2023	427,547	1,110,077
2022	1,034,762	778,437
2021	717,824	283,131
2020	272,968	154,902
Prior	384,898	286,477
Revolving Loans	48,580	60,928
Revolving Converted to Term	502	0
Loans held for investment	3,266,291	3,081,719
Pass
Financing Receivable, Past Due [Line Items]
2024	378,566	407,578
2023	427,354	1,092,713
2022	1,006,543	769,458
2021	695,870	278,341
2020	268,201	154,129
Prior	381,342	278,723
Revolving Loans	48,580	59,201
Revolving Converted to Term	0	0
Loans held for investment	3,206,456	3,040,143
Watch
Financing Receivable, Past Due [Line Items]
2024	644	189
2023	193	17,352
2022	28,209	8,979
2021	21,954	4,790
2020	4,767	728
Prior	1,678	5,837
Revolving Loans	0	1,727
Revolving Converted to Term	502	0
Loans held for investment	57,947	39,602
Substandard
Financing Receivable, Past Due [Line Items]
2024	0	0
2023	0	12
2022	10	0
2021	0	0
2020	0	45
Prior	1,878	1,917
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	1,888	1,974
Real Estate, Commercial
Financing Receivable, Past Due [Line Items]
2024	251,489	329,876
2023	323,243	1,000,715
2022	952,046	721,239
2021	671,064	243,382
2020	236,157	128,998
Prior	332,351	253,816
Revolving Loans	4,879	4,685
Revolving Converted to Term	0	0
Loans held for investment	2,771,229	2,682,711
Real Estate, Commercial \| Pass
Financing Receivable, Past Due [Line Items]
2024	250,845	329,876
2023	323,243	992,181
2022	934,312	714,965
2021	651,701	238,655
2020	231,487	128,424
Prior	330,193	247,030
Revolving Loans	4,879	4,685
Revolving Converted to Term	0	0
Loans held for investment	2,726,660	2,655,816
Real Estate, Commercial \| Watch
Financing Receivable, Past Due [Line Items]
2024	644	0
2023	0	8,534
2022	17,734	6,274
2021	19,363	4,727
2020	4,670	574
Prior	340	4,896
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	42,751	25,005
Real Estate, Commercial \| Substandard
Financing Receivable, Past Due [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	1,818	1,890
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	1,818	1,890
Real estate , Commercial land and development
Financing Receivable, Past Due [Line Items]
2024	1,636	11,388
2023	1,000	3,229
2022	1,259	0
2021	0	184
2020	182	0
Prior	695	733
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	4,772	15,534
Real estate , Commercial land and development \| Pass
Financing Receivable, Past Due [Line Items]
2024	1,636	11,388
2023	1,000	3,229
2022	1,259	0
2021	0	184
2020	182	0
Prior	695	733
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	4,772	15,534
Real estate, Commercial construction
Financing Receivable, Past Due [Line Items]
2024	2,982	9,074
2023	28,518	32,154
2022	23,512	4,189
2021	0	11,230
2020	11,231	0
Prior	5,897	5,897
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	72,140	62,544
Real estate, Commercial construction \| Pass
Financing Receivable, Past Due [Line Items]
2024	2,982	9,074
2023	28,518	32,154
2022	23,512	4,189
2021	0	11,230
2020	11,231	0
Prior	5,897	5,897
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	72,140	62,544
Real estate, Residential construction
Financing Receivable, Past Due [Line Items]
2024	5,099	2,412
2023	0	9,128
2022	0	3,912
2021	3,914	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	9,013	15,452
Real estate, Residential construction \| Pass
Financing Receivable, Past Due [Line Items]
2024	5,099	2,412
2023	0	9,128
2022	0	3,912
2021	3,914	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	9,013	15,452
Real estate, Residential
Financing Receivable, Past Due [Line Items]
2024	5,686	4,838
2023	4,814	3,964
2022	2,911	6,244
2021	6,148	2,279
2020	2,240	1,182
Prior	6,559	5,995
Revolving Loans	1,308	1,420
Revolving Converted to Term	0	0
Loans held for investment	29,666	25,922
Real estate, Residential \| Pass
Financing Receivable, Past Due [Line Items]
2024	5,686	4,838
2023	4,814	3,964
2022	2,911	6,244
2021	6,148	2,279
2020	2,240	1,182
Prior	6,559	5,995
Revolving Loans	1,308	1,420
Revolving Converted to Term	0	0
Loans held for investment	29,666	25,922
Real estate, Farmland
Financing Receivable, Past Due [Line Items]
2024	900	2,311
2023	2,074	8,037
2022	7,913	12,678
2021	11,761	7,860
2020	7,129	12,365
Prior	18,552	8,391
Revolving Loans	0	4
Revolving Converted to Term	502	0
Loans held for investment	48,831	51,646
Real estate, Farmland \| Pass
Financing Receivable, Past Due [Line Items]
2024	900	2,311
2023	2,074	8,037
2022	7,114	12,678
2021	11,761	7,860
2020	7,129	12,365
Prior	18,552	8,391
Revolving Loans	0	4
Revolving Converted to Term	0	0
Loans held for investment	47,530	51,646
Real estate, Farmland \| Watch
Financing Receivable, Past Due [Line Items]
2024	0
2023	0
2022	799
2021	0
2020	0
Prior	0
Revolving Loans	0
Revolving Converted to Term	502
Loans held for investment	1,301
Commercial, Secured
Financing Receivable, Past Due [Line Items]
2024	10,976	25,488
2023	24,982	37,681
2022	34,336	17,009
2021	13,803	12,227
2020	10,705	10,117
Prior	18,711	11,331
Revolving Loans	41,113	51,747
Revolving Converted to Term	0	0
Loans held for investment	154,626	165,600
Commercial, Secured \| Pass
Financing Receivable, Past Due [Line Items]
2024	10,976	25,299
2023	24,789	28,879
2022	24,675	14,304
2021	11,212	12,164
2020	10,608	9,918
Prior	17,313	10,363
Revolving Loans	41,113	50,020
Revolving Converted to Term	0	0
Loans held for investment	140,686	150,947
Commercial, Secured \| Watch
Financing Receivable, Past Due [Line Items]
2024	0	189
2023	193	8,802
2022	9,661	2,705
2021	2,591	63
2020	97	154
Prior	1,338	941
Revolving Loans	0	1,727
Revolving Converted to Term	0	0
Loans held for investment	13,880	14,581
Commercial, Secured \| Substandard
Financing Receivable, Past Due [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	45
Prior	60	27
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	60	72
Commercial, Unsecured
Financing Receivable, Past Due [Line Items]
2024	2,394	3,891
2023	4,782	3,782
2022	3,292	4,902
2021	4,260	5,963
2020	5,322	2,240
Prior	1,883	7
Revolving Loans	1,280	3,072
Revolving Converted to Term	0	0
Loans held for investment	23,213	23,857
Commercial, Unsecured \| Pass
Financing Receivable, Past Due [Line Items]
2024	2,394	3,891
2023	4,782	3,782
2022	3,292	4,902
2021	4,260	5,963
2020	5,322	2,240
Prior	1,883	7
Revolving Loans	1,280	3,072
Revolving Converted to Term	0	0
Loans held for investment	23,213	23,857
Consumer and other
Financing Receivable, Past Due [Line Items]
2024	98,048	18,489
2023	38,134	11,387
2022	9,493	8,264
2021	6,874	6
2020	2	0
Prior	250	307
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	152,801	38,453
Consumer and other \| Pass
Financing Receivable, Past Due [Line Items]
2024	98,048	18,489
2023	38,134	11,359
2022	9,468	8,264
2021	6,874	6
2020	2	0
Prior	250	307
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	152,776	38,425
Consumer and other \| Watch
Financing Receivable, Past Due [Line Items]
2024	0	0
2023	0	16
2022	15	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	15	16
Consumer and other \| Substandard
Financing Receivable, Past Due [Line Items]
2024	0	0
2023	0	12
2022	10	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Converted to Term	0	0
Loans held for investment	$ 10	$ 12

Interest-Bearing Deposits

6 Months Ended

Jun. 30, 2024

Interest-bearing Deposits

Interest-Bearing Deposits

Table 5.1 shows the composition of interest-bearing deposits as of June 30, 2024 and December 31, 2023.


Table 5.1: Interest-Bearing Deposits
(in thousands)	June 30, 2024		December 31, 2023
Interest-bearing transaction accounts	$	299,815	$	320,356
Savings accounts	126,532		126,498
Money market accounts	1,564,120		1,282,369
Time accounts, $250 or more	192,344		344,694
Other time accounts	141,087		121,878

Total interest-bearing deposits	$	2,323,898	$	2,195,795

Time deposits totaled $333.4 million and $466.6 million as of June 30, 2024 and December 31, 2023, respectively. Scheduled maturities of time deposits as of June 30, 2024 for the next five years are shown in Table 5.2.


Table 5.2: Scheduled Maturities of Time Deposits
(in thousands)
2024	$	285,068
2025	46,561
2026	1,566
2027	100
2028	136
Total time deposits	$	333,431

Total deposits include deposits offered through the IntraFi 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 and interest checking deposits. Through this network, the Company offers customers access to 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 June 30, 2024 and December 31, 2023. The composition of network deposits as of June 30, 2024 and December 31, 2023 is shown in Table 5.3.


Table 5.3: Network Deposits
(in thousands)	June 30, 2024		December 31, 2023
CDARS	$	17,397	$	16,325
ICS	682,875		620,199
Total network deposits	$	700,272	$	636,524

Table 5.4 presents interest expense recognized on interest-bearing deposits for the periods ended June 30, 2024 and 2023.


Table 5.4: Interest Expense Recognized on Interest-Bearing Deposits
	Three months ended				Six months ended
(in thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Interest-bearing transaction accounts	$	1,104	$	825	$	2,230	$	1,258
Savings accounts	856		758		1,718		1,303
Money market accounts	13,388		8,136		25,543		13,572
Time accounts, $250 or more	2,412		2,634		6,235		4,597
Other time accounts	957		1,616		2,502		2,617
Total interest expense on interest-bearing deposits	$	18,717	$	13,969	$	38,228	$	23,347

Investment Securities - Narrative (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) security $ / shares	Dec. 31, 2023 USD ($) security
Investments, Debt and Equity Securities [Abstract]
Number of securities in unrealized loss positions	147	149
Number of investment securities in a continuous loss position for twelve months or more	143
Investment securities in a loss position for less than twelve months	4
Held-to-maturity securities in a continuous loss position for twelve months or more	1	1
FHLB stock price (in USD per share) \| $ / shares	$ 100
FHLB Stock \| $	$ 15,000	$ 15,000

Investment Securities - Available-for-sale Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Marketable Securities [Line Items]
Less than twelve continuous months, fair value	$ 1,724	$ 1,130
Less than twelve continuous months, unrealized loss	(3)	(14)
Twelve months or more, fair value	96,376	101,730
Twelve months or more, unrealized loss	(17,511)	(16,852)
Total securities in a loss position, fair value	98,100	102,860
Total securities in a loss position, unrealized loss	(17,514)	(16,866)
U.S. government agency securities
Marketable Securities [Line Items]
Less than twelve continuous months, fair value	199	1,130
Less than twelve continuous months, unrealized loss	(1)	(14)
Twelve months or more, fair value	5,549	7,081
Twelve months or more, unrealized loss	(108)	(135)
Total securities in a loss position, fair value	5,748	8,211
Total securities in a loss position, unrealized loss	(109)	(149)
Mortgage-backed securities
Marketable Securities [Line Items]
Less than twelve continuous months, fair value	1,013	0
Less than twelve continuous months, unrealized loss	(2)	0
Twelve months or more, fair value	52,686	55,609
Twelve months or more, unrealized loss	(11,693)	(11,619)
Total securities in a loss position, fair value	53,699	55,609
Total securities in a loss position, unrealized loss	(11,695)	(11,619)
Obligations of states and political subdivisions
Marketable Securities [Line Items]
Less than twelve continuous months, fair value	512	0
Less than twelve continuous months, unrealized loss	0	0
Twelve months or more, fair value	36,016	36,930
Twelve months or more, unrealized loss	(5,500)	(4,841)
Total securities in a loss position, fair value	36,528	36,930
Total securities in a loss position, unrealized loss	(5,500)	(4,841)
Collateralized mortgage obligations
Marketable Securities [Line Items]
Less than twelve continuous months, fair value	0	0
Less than twelve continuous months, unrealized loss	0	0
Twelve months or more, fair value	304	332
Twelve months or more, unrealized loss	(31)	(35)
Total securities in a loss position, fair value	304	332
Total securities in a loss position, unrealized loss	(31)	(35)
Corporate bonds
Marketable Securities [Line Items]
Less than twelve continuous months, fair value	0	0
Less than twelve continuous months, unrealized loss	0	0
Twelve months or more, fair value	1,821	1,778
Twelve months or more, unrealized loss	(179)	(222)
Total securities in a loss position, fair value	1,821	1,778
Total securities in a loss position, unrealized loss	$ (179)	$ (222)

Interest Bearing Deposits - Composition of Network Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Interest Bearing Deposits [Line Items]
Total network deposits	$ 700,272	$ 636,524
CDARS
Interest Bearing Deposits [Line Items]
Total network deposits	17,397	16,325
ICS
Interest Bearing Deposits [Line Items]
Total network deposits	$ 682,875	$ 620,199

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for credit losses, available for sale	$ 0	$ 0
Amortized Cost	120,569,000	124,788,000
Allowance for credit losses, held to maturity	20,000	20,000
Securities held-to-maturity	$ 2,801,000	$ 2,913,000
Preferred stock (in USD per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock (in USD per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	21,319,583	17,256,989
Common stock, shares outstanding (in shares)	21,319,583	17,256,989

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2022			17,241,926
Beginning balance at Dec. 31, 2022	$ 252,825	$ (4,491)	$ 219,543	$ 46,736	$ (4,491)	$ (13,454)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Net income	$ 25,890			25,890
Other comprehensive income (loss)	478					478
Stock issued under stock award plans, net (in shares)			16,978
Stock issued under stock award plans, net	0
Stock compensation expense	478		$ 478
Stock forfeitures (in shares)			(1,547)
Stock forfeitures	0
Cash dividends paid	(6,040)			(6,040)
Ending balance (in shares) at Jun. 30, 2023			17,257,357
Ending balance at Jun. 30, 2023	269,140		$ 220,021	62,095		(12,976)
Beginning balance (in shares) at Mar. 31, 2023			17,258,904
Beginning balance at Mar. 31, 2023	260,656		$ 219,785	52,817		(11,946)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,729			12,729
Other comprehensive income (loss)	(1,030)					(1,030)
Stock compensation expense	236		$ 236
Stock forfeitures (in shares)			(1,547)
Stock forfeitures	0
Cash dividends paid	(3,451)			(3,451)
Ending balance (in shares) at Jun. 30, 2023			17,257,357
Ending balance at Jun. 30, 2023	269,140		$ 220,021	62,095		(12,976)
Beginning balance (in shares) at Dec. 31, 2023			17,256,989
Beginning balance at Dec. 31, 2023	285,774		$ 220,505	77,036		(11,767)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,413			21,413
Other comprehensive income (loss)	(465)					(465)
Common stock issued (in shares)			3,967,500
Common stock issued	80,870		$ 80,870
Stock issued under stock award plans, net (in shares)			96,380
Stock issued under stock award plans, net	0
Stock compensation expense	593		$ 593
Stock forfeitures (in shares)			(1,286)
Stock forfeitures	0
Cash dividends paid	(7,715)			(7,715)
Ending balance (in shares) at Jun. 30, 2024			21,319,583
Ending balance at Jun. 30, 2024	380,470		$ 301,968	90,734		(12,232)
Beginning balance (in shares) at Mar. 31, 2024			17,353,251
Beginning balance at Mar. 31, 2024	292,580		$ 220,804	84,216		(12,440)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,782			10,782
Other comprehensive income (loss)	208					208
Common stock issued (in shares)			3,967,500
Common stock issued	80,870		$ 80,870
Stock compensation expense	294		$ 294
Stock forfeitures (in shares)			(1,168)
Stock forfeitures	0
Cash dividends paid	(4,264)			(4,264)
Ending balance (in shares) at Jun. 30, 2024			21,319,583
Ending balance at Jun. 30, 2024	$ 380,470		$ 301,968	$ 90,734		$ (12,232)

Investment Securities

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

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 SBA, and securities issued by U.S. GSEs, such as the FNMA, the FHLMC, and the FHLB. The Company also invests in residential and commercial mortgage-backed securities, collateralized mortgage obligations issued or guaranteed by GSEs, and corporate bonds, as reflected in Tables 3.1 and 3.2.

A summary of the amortized cost and fair value related to securities held-to-maturity as of June 30, 2024 and December 31, 2023 is presented in Table 3.1.


Table 3.1: Securities Held-to-Maturity
(in thousands)	Amortized Cost		Gross Unrealized				Fair Value
			Gains		(Losses)
June 30, 2024
Obligations of states and political subdivisions	$	2,973	$	—	$	(172)	$	2,801
Total held-to-maturity	$	2,973	$	—	$	(172)	$	2,801
December 31, 2023
Obligations of states and political subdivisions	$	3,077	$	—	$	(164)	$	2,913
Total held-to-maturity	$	3,077	$	—	$	(164)	$	2,913

For securities issued by states and political subdivisions, for purposes of evaluating whether to recognize credit loss expense, 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.


Table 3.2: Securities Available-for-Sale
(in thousands)	Amortized Cost		Gross Unrealized				Fair Value
			Gains		(Losses)
June 30, 2024
U.S. government agency securities	$	9,494	$	144	$	(109)	$	9,529
Mortgage-backed securities	65,712		3		(11,695)		54,020
Obligations of states and political subdivisions	43,027		2		(5,500)		37,529
Collateralized mortgage obligations	336		—		(31)		305
Corporate bonds	2,000		—		(179)		1,821
Total available-for-sale	$	120,569	$	149	$	(17,514)	$	103,204
December 31, 2023
U.S. government agency securities	$	10,548	$	142	$	(149)	$	10,541
Mortgage-backed securities	68,585		7		(11,619)		56,973
Obligations of states and political subdivisions	43,288		12		(4,841)		38,459
Collateralized mortgage obligations	367		—		(35)		332
Corporate bonds	2,000		—		(222)		1,778
Total available-for-sale	$	124,788	$	161	$	(16,866)	$	108,083


Table 3.3: Contractual Maturities - Investment Securities
(in thousands)	June 30, 2024								December 31, 2023
	Held-to-Maturity				Available-for-Sale				Held-to-Maturity				Available-for-Sale
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	218	$	205	$	—	$	—	$	277	$	263	$	—	$	—
After one but within five years	920		867		806		736		935		885		394		367
After five years through ten years	1,340		1,263		8,511		7,459		1,365		1,292		6,407		5,838
After ten years	495		466		33,710		29,334		500		473		36,487		32,254

Investment securities not due at a single maturity date:
U.S. government agency securities	—		—		9,494		9,529		—		—		10,548		10,541
Mortgage-backed securities	—		—		65,712		54,020		—		—		68,585		56,973
Collateralized mortgage obligations	—		—		336		305		—		—		367		332
Corporate bonds	—		—		2,000		1,821		—		—		2,000		1,778
Total	$	2,973	$	2,801	$	120,569	$	103,204	$	3,077	$	2,913	$	124,788	$	108,083

There were no purchases or sales of investment securities during the three and six months ended June 30, 2024 and June 30, 2023.

Pledged investment securities are shown in Table 3.4.


Table 3.4: Pledged Investment Securities
(in thousands)	June 30, 2024		December 31, 2023
Pledged to:
The State of California, securing deposits of public funds and borrowings	$	52,687	$	55,435
The Federal Reserve Discount Window, increasing borrowing capacity	47,094		48,964
Total pledged investment securities	$	99,781	$	104,399


Table 3.5: Securities Available-for-Sale in Continuous Unrealized Loss Positions
(in thousands)	Less than 12 months				12 months or more				Total securities in a loss position
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
June 30, 2024
U.S. government agency securities	$	199	$	(1)	$	5,549	$	(108)	$	5,748	$	(109)
Mortgage-backed securities	1,013		(2)		52,686		(11,693)		53,699		(11,695)
Obligations of states and political subdivisions	512		—		36,016		(5,500)		36,528		(5,500)
Collateralized mortgage obligations	—		—		304		(31)		304		(31)
Corporate bonds	—		—		1,821		(179)		1,821		(179)
Total temporarily impaired securities	$	1,724	$	(3)	$	96,376	$	(17,511)	$	98,100	$	(17,514)

December 31, 2023
U.S. government agency securities	$	1,130	$	(14)	$	7,081	$	(135)	$	8,211	$	(149)
Mortgage-backed securities	—		—		55,609		(11,619)		55,609		(11,619)
Obligations of states and political subdivisions	—		—		36,930		(4,841)		36,930		(4,841)
Collateralized mortgage obligations	—		—		332		(35)		332		(35)
Corporate bonds	—		—		1,778		(222)		1,778		(222)
Total temporarily impaired securities	$	1,130	$	(14)	$	101,730	$	(16,852)	$	102,860	$	(16,866)

There were 147 and 149 available-for-sale securities in unrealized loss positions at June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, the investment portfolio included 143 investment securities that had been in a continuous loss position for twelve months or more and four investment securities that had been in a loss position for less than twelve months.

There was one held-to-maturity security in a continuous unrealized loss position at June 30, 2024 and December 31, 2023, which had been in a continuous loss position for more than twelve months.

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 $15.0 million of FHLB stock at June 30, 2024 and December 31, 2023. 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 June 30, 2024 and December 31, 2023.

Long Term Debt and Other Borrowings (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Line of Credit Facilities

The Company’s total financing availability with the FHLB is decreased by outstanding borrowings and letters of credit (“LCs”) issued on behalf of the Company, as shown in Table 6.1.


Table 6.1: Financing Availability with the FHLB
(in thousands)	June 30, 2024		December 31, 2023
Total financing ability from the FHLB	$	1,004,397	$	996,712
Less: outstanding borrowings	—		170,000
Less: LCs pledged to secure State of California deposits	146,500		271,500
Less: LCs pledged to secure local agency deposits	425,000		410,000
Total LCs issued	571,500		681,500
Available borrowing capacity with the FHLB	$	432,897	$	145,212

Investment Securities - Amortized Cost and Fair Value of Investment Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Amortized Cost
Within one year	$ 218	$ 277
After one but within five years	920	935
After five years through ten years	1,340	1,365
After ten years	495	500
Fair Value
Within one year	205	263
After one but within five years	867	885
After five years through ten years	1,263	1,292
After ten years	466	473
Amortized Cost
Within one year	0	0
After one but within five years	806	394
After five years through ten years	8,511	6,407
After ten years	33,710	36,487
Fair Value
Within one year	0	0
After one but within five years	736	367
After five years through ten years	7,459	5,838
After ten years	29,334	32,254
Securities held-to-maturity, at amortized cost	2,973	3,077
Securities held-to-maturity	2,801	2,913
Securities available-for-sale, at amortized cost	120,569	124,788
Securities available-for-sale	103,204	108,083
U.S. government agency securities
Fair Value
Securities held-to-maturity, at amortized cost	0	0
Securities held-to-maturity	0	0
Securities available-for-sale, at amortized cost	9,494	10,548
Securities available-for-sale	9,529	10,541
Mortgage-backed securities
Fair Value
Securities held-to-maturity, at amortized cost	0	0
Securities held-to-maturity	0	0
Securities available-for-sale, at amortized cost	65,712	68,585
Securities available-for-sale	54,020	56,973
Collateralized mortgage obligations
Fair Value
Securities held-to-maturity, at amortized cost	0	0
Securities held-to-maturity	0	0
Securities available-for-sale, at amortized cost	336	367
Securities available-for-sale	305	332
Corporate bonds
Fair Value
Securities held-to-maturity, at amortized cost	0	0
Securities held-to-maturity	0	0
Securities available-for-sale, at amortized cost	2,000	2,000
Securities available-for-sale	$ 1,821	$ 1,778

Loans and Allowance for Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 34,653	$ 34,172	$ 34,431	$ 28,389
Charge-offs	(1,347)	(1,261)	(2,450)	(2,133)
Recoveries	150	153	425	646
Provision (Benefit)	1,950	920	3,000	1,820
Ending Balance	35,406	33,984	35,406	33,984
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	5,262
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	28,895	27,119	29,015	19,216
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Benefit)	(4,187)	434	(4,307)	731
Ending Balance	24,708	27,553	24,708	27,553
Commercial \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	7,606
Commercial land and development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	164	226	178	54
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Benefit)	(92)	(42)	(106)	56
Ending Balance	72	184	72	184
Commercial land and development \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	74
Commercial construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	697	1,438	718	645
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Benefit)	400	(226)	379	(315)
Ending Balance	1,097	1,212	1,097	1,212
Commercial construction \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	882
Residential construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	114	175	89	49
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Benefit)	(14)	42	11	87
Ending Balance	100	217	100	217
Residential construction \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	81
Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	164	181	151	175
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Benefit)	31	(29)	44	(26)
Ending Balance	195	152	195	152
Residential \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	3
Farmland
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	438	219	399	644
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Benefit)	(36)	17	3	(12)
Ending Balance	402	236	402	236
Farmland \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	(396)
Secured
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	3,262	4,258	3,314	7,098
Charge-offs	(1,239)	(1,124)	(2,237)	(1,611)
Recoveries	57	47	239	139
Provision (Benefit)	5,306	570	6,070	1,185
Ending Balance	7,386	3,751	7,386	3,751
Secured \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	(3,060)
Unsecured
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	259	152	189	116
Charge-offs	(36)	0	(70)	0
Recoveries	0	0	0	0
Provision (Benefit)	(9)	57	95	56
Ending Balance	214	209	214	209
Unsecured \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	37
Consumer and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	660	404	378	347
Charge-offs	(72)	(137)	(143)	(522)
Recoveries	93	106	186	507
Provision (Benefit)	551	97	811	58
Ending Balance	1,232	470	1,232	470
Consumer and other \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 0	0	$ 0	80
Unallocated
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance				45
Charge-offs				0
Recoveries				0
Provision (Benefit)				0
Ending Balance		$ 0		0
Unallocated \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance				$ (45)

Shareholders’ Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

(a) EPS

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


Table 7.1: EPS
	Three months ended				Six months ended
(in thousands, except share count and earnings per common share)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Net income	$	10,782	$	12,729	$	21,413	$	25,890

Basic weighted average common shares outstanding	21,039,798		17,165,344		19,115,333		17,157,801
Add: Dilutive effects of assumed vesting of restricted stock	18,287		3,651		50,207		24,067
Total dilutive weighted average common shares outstanding	21,058,085		17,168,995		19,165,540		17,181,868
Earnings per common share:
Basic EPS	$	0.51	$	0.74	$	1.12	$	1.51
Diluted EPS	$	0.51	$	0.74	1.12		1.51

The Company did not have any anti-dilutive shares at June 30, 2024 or June 30, 2023.

(b) Dividends

On April 18, 2024, the board of directors declared a $0.20 per common share dividend, totaling $4.3 million.

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 Five Star Bancorp 2021 Equity Incentive Plan (the “Equity Incentive Plan”). The Historical Incentive Plan consisted of RSAs for certain executive officers of the Company. 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 credit 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 certain employees, officers, executives, and non-employee directors. Shares granted to non-employee directors vested immediately upon grant, while shares granted to certain employees, officers, and executives vest ratably over three, five, or seven years (as defined in the respective agreements). Since the completion of the IPO, the Company has granted RSAs under the Equity Incentive Plan to certain executives, which vest ratably over three or five years (as defined in the respective agreements), and to directors, which vest over one year. 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.

Non-cash stock compensation expense recognized for the three months ended June 30, 2024 and 2023 was $0.3 million and $0.2 million, respectively. Non-cash stock compensation expense recognized for the six months ended June 30, 2024 and 2023 was $0.6 million and $0.5 million, respectively.

At June 30, 2024 and 2023, there were 137,457 and 82,324 unvested restricted shares, respectively. As of June 30, 2024, there was approximately $2.6 million of unrecognized compensation expense related to the 137,457 unvested restricted shares. The holders of unvested RSAs are entitled to dividends at 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. Such tax benefits are expected to be recognized over the weighted average term remaining on the unvested restricted shares of 3.39 years as of June 30, 2024. The impact of tax benefits for dividends paid on unvested restricted stock on the Company’s unaudited consolidated statements of income for the three and six months ended June 30, 2024 and 2023 was immaterial.

Table 7.2 summarizes activity related to restricted shares for the periods indicated.


Table 7.2: Restricted Share Activity
	For the three months ended June 30,						For the six months ended June 30,
	2024			2023			2024			2023
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Beginning of the period balance	162,348	$	21.22	108,363	$	21.43	69,338	$	20.53	96,826	$	20.34
Shares granted	—	—		—	—		96,380	21.97		16,978	28.52
Shares vested	(23,723)	20.00		(24,492)	20.00		(26,975)	21.03		(29,933)	20.78
Shares forfeited	(1,168)	21.69		(1,547)	26.95		(1,286)	21.54		(1,547)	26.95
End of the period balance	137,457	$	21.43	82,324	$	21.75	137,457	$	21.43	82,324	$	21.75

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478448/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis

Table 2.1 summarizes the Company’s assets and liabilities required to be recorded at fair value on a recurring basis.


Table 2.1: 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 In
June 30, 2024
Assets:
Securities available-for-sale:
U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds	$	103,204	$	—	$	103,204	$	—	OCI
Derivatives – interest rate swap	5		—		5		—		NI
Liabilities:
Derivatives – interest rate swap	5		—		5		—		NI

December 31, 2023
Assets:
Securities available-for-sale:
U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, collateralized mortgage obligations, and corporate bonds	$	108,083	$	—	$	108,083	$	—	OCI
Derivatives – interest rate swap	10		—		10		—		NI
Liabilities:
Derivatives – interest rate swap	10		—		10		—		NI

Summary of Fair Value Estimates for Financial Instruments by Balance Sheet Grouping


Table 2.2: Fair Value Estimates for Financial Instruments
	June 30, 2024					December 31, 2023
(in thousands)	Carrying Amounts		Fair Value		Fair Value Hierarchy	Carrying Amounts		Fair Value		Fair Value Hierarchy
Financial assets:
Cash and cash equivalents	$	190,359	$	190,359	Level 1	$	321,576	$	321,576	Level 1
Time deposits in banks	4,097		4,097		Level 1	5,858		5,858		Level 1
Securities available-for-sale	103,204		103,204		Level 2	108,083		108,083		Level 2
Securities held-to-maturity	2,973		2,801		Level 3	3,077		2,913		Level 3
Loans held for sale	5,322		5,907		Level 2	11,464		12,626		Level 2
Loans held for investment, net of allowance for credit losses	3,230,885		3,081,250		Level 3	3,047,288		2,891,925		Level 3
FHLB stock and other investments	22,801		N/A		N/A	21,801		N/A		N/A
Interest rate swap	5		5		Level 2	10		10		Level 2
Financial liabilities:
Interest rate swap	$	5	$	5	Level 2	$	10	$	10	Level 2
Time deposits	333,431		332,557		Level 2	466,572		465,205		Level 2
Subordinated notes	73,822		72,772		Level 3	73,749		72,693		Level 3
Other borrowings	—		—		Level 2	170,000		170,000		Level 2

Shareholders' Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Equity [Abstract]
Net income	$ 10,782	$ 12,729	$ 21,413	$ 25,890
Basic weighted average common shares outstanding (in shares)	21,039,798	17,165,344	19,115,333	17,157,801
Add: Dilutive effects of assumed vesting of restricted stock (in shares)	18,287	3,651	50,207	24,067
Total dilutive weighted average common shares outstanding (in shares)	21,058,085	17,168,995	19,165,540	17,181,868
Earnings per common share:
Basic EPS (in USD per share)	$ 0.51	$ 0.74	$ 1.12	$ 1.51
Diluted EPS (in USD per share)	$ 0.51	$ 0.74	$ 1.12	$ 1.51

- Definition

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

+ References

+ 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

+ Details

- Definition

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

+ References

+ Details

Investment Securities - Amortized Cost and Fair Value of Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Marketable Securities [Line Items]
Amortized Cost	$ 2,973	$ 3,077
Gross unrealized gains	0	0
Gross unrealized losses	(172)	(164)
Fair Value	2,801	2,913
Obligations of states and political subdivisions
Marketable Securities [Line Items]
Amortized Cost	2,973	3,077
Gross unrealized gains	0	0
Gross unrealized losses	(172)	(164)
Fair Value	$ 2,801	$ 2,913

Loans and Allowance for Credit Losses - Unfunded Loan Commitment Reserve (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 34,653	$ 34,172	$ 34,431	$ 28,389
Provision	1,950	920	3,000	1,820
Ending Balance	35,406	33,984	35,406	33,984
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	0	5,262
Unfunded Loan Commitment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	1,097	1,217	1,247	125
Provision	50	330	(100)	330
Ending Balance	1,147	1,547	1,147	1,547
Unfunded Loan Commitment \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 0	$ 0	$ 0	$ 1,092

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Fair Value of Assets and Liabilities - Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 103,204	$ 108,083
Assets: \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	103,204	108,083
Assets: \| Fair Value, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	0	0
Assets: \| Fair Value, Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	103,204	108,083
Assets: \| Fair Value, Recurring \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	0	0
Assets: \| Derivatives – interest rate swap \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives – interest rate swap	5	10
Assets: \| Derivatives – interest rate swap \| Fair Value, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives – interest rate swap	0	0
Assets: \| Derivatives – interest rate swap \| Fair Value, Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives – interest rate swap	5	10
Assets: \| Derivatives – interest rate swap \| Fair Value, Recurring \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives – interest rate swap	0	0
Liabilities: \| Derivatives – interest rate swap \| Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives – interest rate swap	5	10
Liabilities: \| Derivatives – interest rate swap \| Fair Value, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives – interest rate swap	0	0
Liabilities: \| Derivatives – interest rate swap \| Fair Value, Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives – interest rate swap	5	10
Liabilities: \| Derivatives – interest rate swap \| Fair Value, Recurring \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives – interest rate swap	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 21,413	$ 25,890
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	2,900	2,150
Depreciation and amortization	938	824
Amortization of deferred loan fees and costs	9	270
Amortization of premiums and discounts on securities	478	612
Amortization of subordinated note issuance costs	73	71
Stock compensation expense	593	478
Earnings on BOLI	(300)	(228)
Deferred tax provision	15	70
Loans originated for sale	(17,414)	(32,126)
Gain on sale of loans	(818)	(1,239)
Gross proceeds from sale of loans	12,909	24,806
Gain on partial sale of equity investment	(300)	(1,274)
Net changes in:
Interest receivable and other assets	4,067	(3,478)
Interest payable and other liabilities	(7,808)	9,277
Operating lease liability	(484)	(482)
Net cash provided by operating activities	16,271	25,621
Cash flows from investing activities:
Maturities, prepayments, and calls of securities available-for-sale	3,844	5,512
Capital call for equity investment	(1,269)	0
Proceeds received from equity investment	300	0
Low income housing tax credits	(1,160)	0
Net change in time deposits in banks	1,761	2,506
Loan originations, net of repayments	(174,992)	(128,757)
Purchase of premises and equipment	(312)	(335)
Purchase of FHLB stock	0	(4,110)
Purchase of BOLI	(1,550)	(2,000)
Net cash used in investing activities	(173,378)	(127,184)
Cash flows from financing activities:
Net change in deposits	122,735	147,735
Proceeds from issuance of stock, net of issuance costs	80,870	0
Payments on other borrowings	(170,000)	0
Cash dividends paid	(7,715)	(6,040)
Net cash provided by financing activities	25,890	141,695
Net change in cash and cash equivalents	(131,217)	40,132
Cash and cash equivalents at beginning of period	321,576	259,991
Cash and cash equivalents at end of period	190,359	300,123
Supplemental disclosure of cash flow information:
Interest paid	41,904	2,716
Income taxes paid	9,391	686
Supplemental disclosure of noncash items:
Transfer from loans held for sale to loans held for investment	11,464	9,416
Unrealized (loss) gain on securities	(660)	679
Operating lease liabilities exchanged for ROUA	1,958	1,513
ROUA acquired	$ (1,958)	$ (1,534)

Investment Securities - Pledged Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Marketable Securities [Line Items]
Securities available-for-sale	$ 103,204	$ 108,083
Federal Funds Purchased
Marketable Securities [Line Items]
Securities available-for-sale	47,094	48,964
Deposits and Federal Funds Purchased
Marketable Securities [Line Items]
Securities available-for-sale	99,781	104,399
CALIFORNIA \| Deposits
Marketable Securities [Line Items]
Securities available-for-sale	$ 52,687	$ 55,435

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 103
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-URI https://asc.fasb.org/1943274/2147482078/820-10-55-103

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479130/326-30-45-1

+ Details

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 18, 2024, the board of directors of the Company declared a cash dividend of $0.20 per common share, payable on August 12, 2024 to shareholders of record as of August 5, 2024.

Interest Bearing Deposits - Interest Expense Recognized on Interest-bearing Deposits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest-bearing Deposits
Interest-bearing transaction accounts	$ 1,104	$ 825	$ 2,230	$ 1,258
Savings accounts	856	758	1,718	1,303
Money market accounts	13,388	8,136	25,543	13,572
Time accounts, $250 or more	2,412	2,634	6,235	4,597
Other time accounts	957	1,616	2,502	2,617
Total interest expense on interest-bearing deposits	$ 18,717	$ 13,969	38,228	$ 23,347
Time deposits minimum			$ 250

Loans and Allowance for Credit Losses - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) loan	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) loan	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) loan
Financing Receivable, Past Due [Line Items]
Loans greater than 90 days past due	$ 0		$ 0		$ 0
Number of collateral dependent loans in process of foreclosure \| loan	0		0		0
Interest income related to non-accrual loans	$ 0	$ 0	$ 0	$ 0
Foregone interest income related to non-accrual loans	38,200	$ 26,100	77,400	$ 35,300
Pledged loans	1,600,000,000		1,600,000,000		$ 1,700,000,000
Federal Reserve Bank of San Francisco
Financing Receivable, Past Due [Line Items]
FRB pledged loans	$ 1,200,000,000		$ 1,200,000,000		$ 1,200,000,000

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2024 office segment	Jun. 02, 2003 shares
Financing Receivable, Past Due [Line Items]
Bank common stock exchanged for company common stock (in shares) \| shares			1
Number of branch offices \| office		7
Number of reportable segments \| segment		1
MHC
Financing Receivable, Past Due [Line Items]
Allowance for credit loss, increase (decrease)	$ (5.8)
C&I
Financing Receivable, Past Due [Line Items]
Allowance for credit loss, increase (decrease)	$ 4.6

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest and fee income:
Loans, including fees	$ 46,362	$ 39,929	$ 90,148	$ 77,423
Taxable securities	474	463	951	929
Nontaxable securities	176	183	352	367
Interest-bearing deposits in banks	1,986	2,218	5,088	4,385
Total interest and fee income	48,998	42,793	96,539	83,104
Interest expense:
Deposits	18,717	13,969	38,228	23,347
Subordinated notes	1,162	1,162	2,323	2,323
Other borrowings	27	84	152	708
Total interest expense	19,906	15,215	40,703	26,378
Net interest income	29,092	27,578	55,836	56,726
Provision for credit losses	2,000	1,250	2,900	2,150
Net interest income after provision for credit losses	27,092	26,328	52,936	54,576
Non-interest income:
Service charges on deposit accounts	189	135	377	252
Gain on sale of loans	449	641	818	1,239
Loan-related fees	370	389	799	697
FHLB stock dividends	329	189	661	382
Earnings on BOLI	158	126	300	228
Other	78	1,340	451	1,393
Total non-interest income	1,573	2,820	3,406	4,191
Non-interest expense:
Salaries and employee benefits	7,803	6,421	15,380	13,039
Occupancy and equipment	646	551	1,272	1,074
Data processing and software	1,235	1,013	2,392	1,885
FDIC insurance	390	410	790	812
Professional services	767	586	1,474	1,217
Advertising and promotional	615	733	1,075	1,151
Loan-related expenses	297	324	594	579
Other operating expenses	1,760	1,941	3,252	3,340
Total non-interest expense	13,513	11,979	26,229	23,097
Income before provision for income taxes	15,152	17,169	30,113	35,670
Provision for income taxes	4,370	4,440	8,700	9,780
Net income	$ 10,782	$ 12,729	$ 21,413	$ 25,890
Basic earnings per common share (in USD per share)	$ 0.51	$ 0.74	$ 1.12	$ 1.51
Diluted earnings per common share (in USD per share)	$ 0.51	$ 0.74	$ 1.12	$ 1.51

Interest-Bearing Deposits - Narrative (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Interest-bearing Deposits
Interest-bearing domestic deposit, time deposits	$ 333,431,000	$ 466,600,000
One-way deposits	$ 0	$ 0

Shareholders' Equity - Summary of Unvested Shares Activity (Details) - Restricted Stock - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Shares
Beginning of the period balance (in shares)	162,348	108,363	69,338	96,826
Shares granted (in shares)	0	0	96,380	16,978
Shares vested (in shares)	(23,723)	(24,492)	(26,975)	(29,933)
Shares forfeited (in shares)	(1,168)	(1,547)	(1,286)	(1,547)
End of the period balance (in shares)	137,457	82,324	137,457	82,324
Weighted Average Grant Date Fair Value
Beginning of the period balance (in USD per share)	$ 21.22	$ 21.43	$ 20.53	$ 20.34
Shares granted (in USD per share)	0	0	21.97	28.52
Shares vested (in USD per share)	20.00	20.00	21.03	20.78
Shares forfeited (in USD per share)	21.69	26.95	21.54	26.95
End of the period balance (in USD per share)	$ 21.43	$ 21.75	$ 21.43	$ 21.75

Long Term Debt and Other Borrowings - Schedule of Borrowing Capacity (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Line of Credit
Debt Instrument [Line Items]
Less: outstanding borrowings	$ 0	$ 0
FHLB Agreement
Debt Instrument [Line Items]
Less: outstanding borrowings	0	170,000,000
FHLB Agreement \| Line of Credit
Debt Instrument [Line Items]
Total financing ability from the FHLB	1,004,397,000	996,712,000
Available borrowing capacity with the FHLB	432,897,000	145,212,000
FHLB Agreement \| Letter of Credit
Debt Instrument [Line Items]
Total LCs issued	571,500,000	681,500,000
Secure State of California Deposits \| Letter of Credit
Debt Instrument [Line Items]
Total LCs issued	146,500,000	271,500,000
Secure Local Agency Deposit \| Letter of Credit
Debt Instrument [Line Items]
Total LCs issued	$ 425,000,000	$ 410,000,000