BANK OF MARIN BANCORP, 10-K filed on 3/14/2024
Annual Report
v3.24.0.1
Cover - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Feb. 29, 2024
Jun. 30, 2023
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-33572    
Entity Registrant Name Bank of Marin Bancorp    
Entity Incorporation, State or Country Code CA    
Entity Tax Identification Number 20-8859754    
Entity Address, Address Line One 504 Redwood Blvd.    
Entity Address, Address Line Two Suite 100    
Entity Address, City or Town Novato    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94947    
City Area Code 415    
Local Phone Number 763-4520    
Title of 12(g) Security Common Stock, No Par Value    
Trading Symbol BMRC    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Smaller Reporting Company false    
Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Entity Shell Company false    
Entity Public Float     $ 269
Entity Common Stock, Shares Outstanding   16,193,342  
Documents Incorporated by Reference
Portions of the registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on May 14, 2024 are incorporated by reference into Part III.
   
Entity Central Index Key 0001403475    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.24.0.1
Audit Information
12 Months Ended
Dec. 31, 2023
Auditor Information [Abstract]  
Auditor Name Moss Adams LLP
Auditor Location Portland, OR
Auditor Firm ID 659
v3.24.0.1
CONSOLIDATED STATEMENTS OF CONDITION - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Assets    
Cash, cash equivalents and restricted cash $ 30,453 $ 45,424
Investment securities:    
Held-to-maturity, at amortized cost (net of zero allowance for credit losses at December 31, 2023 and 2022) 925,198 972,207
Available-for-sale, at fair value (net of zero allowance for credit losses at December 31, 2023 and 2022) 552,028 802,096
Total investment securities 1,477,226 1,774,303
Loans, at amortized cost 2,073,720 2,092,546
Allowance for credit losses on loans (25,172) (22,983)
Total loans, net of allowance for credit losses on loans 2,048,548 2,069,563
Goodwill 72,754 72,754
Bank-owned life insurance 68,102 67,066
Operating lease right-of-use assets 20,316 24,821
Bank premises and equipment, net 7,792 8,134
Core deposit intangible, net 3,766 5,116
Other real estate owned 0 455
Interest receivable and other assets 74,946 79,828
Total assets 3,803,903 4,147,464
Deposits:    
Non-interest bearing 1,441,987 1,839,114
Interest bearing:    
Transaction accounts 225,040 287,651
Savings accounts 233,298 338,163
Money market accounts 1,138,433 989,390
Time accounts 251,317 119,030
Total deposits 3,290,075 3,573,348
Borrowings and other obligations 26,298 112,439
Operating lease liabilities 22,906 26,639
Interest payable and other liabilities 25,562 22,946
Total liabilities 3,364,841 3,735,372
Commitments and contingent liabilities (Note 12)
Stockholders' Equity    
Preferred stock, no par value, Authorized - 5,000,000 shares, none issued 0 0
Common stock, no par value, Authorized - 30,000,000 shares; Issued and outstanding - 16,158,413 and 16,029,138 at December 31, 2023 and 2022, respectively 217,498 215,057
Retained earnings 274,570 270,781
Accumulated other comprehensive loss, net of tax (53,006) (73,746)
Total stockholders' equity 439,062 412,092
Total liabilities and stockholders' equity $ 3,803,903 $ 4,147,464
v3.24.0.1
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Investment Securities    
Held-to-maturity, allowance for credit Loss $ 0 $ 0
Available-for-sale, allowance for credit loss $ 0 $ 0
Stockholders' Equity    
Preferred stock, no par value (in dollars per share) $ 0 $ 0
Preferred stock, authorized (in shares) 5,000,000 5,000,000
Preferred stock, issued, (in shares) 0 0
Common stock, no par value (in dollars per share) $ 0 $ 0
Common stock, authorized (in shares) 30,000,000 30,000,000
Common stock, issued (in shares) 16,158,413 16,029,138
Common stock, outstanding (in shares) 16,158,413 16,029,138
v3.24.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Interest income      
Interest and fees on loans $ 98,505 $ 93,868 $ 91,612
Interest on investment securities 38,660 34,766 16,342
Interest on federal funds sold and due from banks 2,329 1,407 399
Total interest income 139,494 130,041 108,353
Interest expense      
Interest on interest-bearing transaction accounts 1,036 421 172
Interest on savings accounts 867 125 94
Interest on money market accounts 18,553 1,589 1,520
Interest on time accounts 4,715 323 246
Interest on borrowings and other obligations 11,562 91 9
Interest on subordinated debenture 0 0 1,361
Total interest expense 36,733 2,549 3,402
Net interest income 102,761 127,492 104,951
Provision for (reversal of) credit losses on loans 2,575 (63) (1,449)
Reversal of credit losses on unfunded loan commitments (342) (318) (992)
Net interest income after (reversal of) provision for credit losses 100,528 127,873 107,392
Non-interest income      
Earnings on bank-owned life insurance, net 1,802 1,229 2,194
Dividends on Federal Home Loan Bank stock 1,265 1,056 760
Losses on sale of investment securities, net of gains (5,893) (63) (16)
Other income 1,260 1,849 1,145
Total non-interest income 4,989 10,905 10,132
Non-interest expense      
Salaries and employee benefits 43,448 42,046 41,939
Occupancy and equipment 8,306 7,823 7,297
Data processing 4,057 4,649 5,139
Professional services 3,598 3,299 4,974
Deposit network fees 2,783 258 26
Depreciation and amortization 2,098 1,840 1,740
Information technology 1,569 2,197 1,550
Amortization of core deposit intangible 1,350 1,489 1,135
Directors' expense 1,212 1,107 957
Federal Deposit Insurance Corporation insurance 1,878 1,179 889
Charitable contributions 717 709 587
Other real estate owned 48 359 5
Other expense 8,417 8,314 6,400
Total non-interest expense 79,481 75,269 72,638
Income before provision for income taxes 26,036 63,509 44,886
Provision for income taxes 6,141 16,923 11,658
Net income $ 19,895 $ 46,586 $ 33,228
Net income per common share:      
Basic (in dollars per share) $ 1.24 $ 2.93 $ 2.32
Diluted (in dollars per share) $ 1.24 $ 2.92 $ 2.30
Weighted average common shares:      
Basic (in shares) 16,012 15,921 14,340
Diluted (in shares) 16,026 15,969 14,422
Comprehensive income (loss):      
Net income $ 19,895 $ 46,586 $ 33,228
Other comprehensive income (loss):      
Change in net unrealized gains or losses on available-for-sale securities 20,358 (88,620) (21,281)
Reclassification adjustment for realized losses on available-for-sale securities in net income 8,700 63 16
Reclassification adjustment for gains or losses on fair value hedges (1,359) 0 0
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity 0 (14,847) 0
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity 1,743 1,580 493
Other comprehensive income (loss), before tax 29,442 (101,824) (20,772)
Deferred tax expense (benefit) 8,702 (30,102) (6,147)
Other comprehensive income (loss), net of tax 20,740 (71,722) (14,625)
Comprehensive income (loss) 40,635 (25,136) 18,603
Wealth management and trust services      
Non-interest income      
Wealth management and trust services, debit card interchange fees net, service charges on deposit accounts, and merchant interchange fees net 2,145 2,227 2,222
Debit card interchange fees, net      
Non-interest income      
Wealth management and trust services, debit card interchange fees net, service charges on deposit accounts, and merchant interchange fees net 1,831 2,051 1,812
Service charges on deposit accounts      
Non-interest income      
Wealth management and trust services, debit card interchange fees net, service charges on deposit accounts, and merchant interchange fees net 2,083 2,007 1,593
Merchant interchange fees, net      
Non-interest income      
Wealth management and trust services, debit card interchange fees net, service charges on deposit accounts, and merchant interchange fees net $ 496 $ 549 $ 422
v3.24.0.1
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss), Net of Taxes
Balance (in shares) at Dec. 31, 2020   13,500,453    
Balance at Dec. 31, 2020 $ 358,253 $ 125,905 $ 219,747 $ 12,601
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 33,228   33,228  
Other comprehensive income (loss), net of tax (14,625)     (14,625)
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings (in shares)   36,338    
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings 463 $ 463    
Stock issued under employee stock purchase plan (in shares)   2,648    
Stock issued under employee stock purchase plan 90 $ 90    
Stock issued under employee stock ownership plan (in shares)   36,075    
Stock issued under employee stock ownership plan $ 1,330 $ 1,330    
Restricted stock granted (in shares)   30,742    
Restricted stock surrendered for tax withholdings upon vesting (in shares) (27,929) (4,211)    
Restricted stock surrendered for tax withholdings upon vesting $ (166) $ (166)    
Restricted stock forfeited/cancelled (in shares)   (3,848)    
Stock-based compensation - stock options 491 $ 491    
Stock-based compensation - restricted stock 481 $ 481    
Cash dividends paid on common stock (13,107)   (13,107)  
Stock purchased by directors under director stock plan (in shares)   1,034    
Stock purchased by directors under director stock plan 34 $ 34    
Stock issued in payment of director fees (in shares)   6,443    
Stock issued in payment of director fees $ 217 $ 217    
Stock issued to American River Bankshares shareholders (in shares) 3,441,235      
Stock issued to American River Bankshares shareholders $ 124,401      
Stock repurchased, including commissions (in shares)   (1,117,666)    
Stock repurchased, including commissions (40,722) $ (40,722)    
Balance (in shares) at Dec. 31, 2021   15,929,243    
Balance at Dec. 31, 2021 450,368 $ 212,524 239,868 (2,024)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 46,586   46,586  
Other comprehensive income (loss), net of tax (71,722)     (71,722)
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings (in shares)   40,674    
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings 821 $ 821    
Stock issued under employee stock purchase plan (in shares)   2,025    
Stock issued under employee stock purchase plan 62 $ 62    
Stock issued under employee stock ownership plan (in shares)   38,000    
Stock issued under employee stock ownership plan $ 1,233 $ 1,233    
Restricted stock granted (in shares)   46,672    
Restricted stock surrendered for tax withholdings upon vesting (in shares) (11,505) (1,169)    
Restricted stock surrendered for tax withholdings upon vesting $ (40) $ (40)    
Restricted stock forfeited/cancelled (in shares)   (13,692)    
Stock-based compensation - stock options 251 $ 251    
Stock-based compensation - restricted stock 712 $ 712    
Cash dividends paid on common stock (15,673)   (15,673)  
Stock purchased by directors under director stock plan (in shares)   515    
Stock purchased by directors under director stock plan 16 $ 16    
Stock issued in payment of director fees (in shares)   10,145    
Stock issued in payment of director fees 355 $ 355    
Stock repurchased, including commissions (in shares)   (23,275)    
Stock repurchased, including commissions $ (877) $ (877)    
Balance (in shares) at Dec. 31, 2022 16,029,138 16,029,138    
Balance at Dec. 31, 2022 $ 412,092 $ 215,057 270,781 (73,746)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income 19,895   19,895  
Other comprehensive income (loss), net of tax 20,740     20,740
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings (in shares)   11,530    
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings 230 $ 230    
Stock issued under employee stock purchase plan (in shares)   2,527    
Stock issued under employee stock purchase plan 46 $ 46    
Stock issued under employee stock ownership plan (in shares)   58,400    
Stock issued under employee stock ownership plan $ 1,315 $ 1,315    
Restricted stock granted (in shares)   61,978    
Restricted stock surrendered for tax withholdings upon vesting (in shares) (3,132) (2,498)    
Restricted stock surrendered for tax withholdings upon vesting $ (70) $ (70)    
Restricted stock forfeited/cancelled (in shares)   (21,024)    
Stock-based compensation - stock options 181 $ 181    
Stock-based compensation - restricted stock 341 $ 341    
Cash dividends paid on common stock (16,106)   (16,106)  
Stock issued in payment of director fees (in shares)   18,362    
Stock issued in payment of director fees $ 398 $ 398    
Stock repurchased, including commissions (in shares)   0    
Balance (in shares) at Dec. 31, 2023 16,158,413 16,158,413    
Balance at Dec. 31, 2023 $ 439,062 $ 217,498 $ 274,570 $ (53,006)
v3.24.0.1
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]      
Cash dividends per common share (usd per share) $ 1.00 $ 0.98 $ 0.94
v3.24.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows from Operating Activities:      
Net income $ 19,895 $ 46,586 $ 33,228
Adjustments to reconcile net income to net cash provided by operating activities:      
Provision for (reversal of) credit losses on loans 2,575 (63) (1,449)
Reversal of credit losses on unfunded loan commitments (342) (318) (992)
Noncash contribution expense to employee stock ownership plan 1,315 1,233 1,330
Noncash director compensation expense 398 355 217
Stock-based compensation expense 522 963 972
Amortization of core deposit intangible 1,350 1,489 1,135
Amortization of investment security premiums, net of accretion of discounts 6,897 9,056 5,799
(Accretion of discounts) amortization of premiums on acquired loans, net (573) 153 (571)
Accretion of discount on subordinated debenture 0 0 1,347
Net change in deferred loan origination costs/fees (836) (2,716) (3,155)
Write-down of other real estate owned 40 345 0
Losses on sale of investment securities, net of gains 5,893 63 16
Depreciation and amortization 2,098 1,840 1,740
Earnings on bank-owned life insurance policies (1,802) (1,229) (2,194)
Net changes in interest receivable and other assets (4,149) 2,228 5,554
Net changes in interest payable and other liabilities 2,378 (4,708) 2,276
Total adjustments 15,764 8,691 12,025
Net cash provided by operating activities 35,659 55,277 45,253
Cash Flows from Investing Activities:      
Purchase of held-to-maturity securities 0 (319,937) (305,329)
Purchase of available-for-sale securities 0 (243,459) (620,236)
Proceeds from sale of available-for-sale securities 205,795 10,664 6,632
Proceeds from paydowns/maturities of held-to-maturity securities 47,170 47,098 71,682
Proceeds from paydowns/maturities of available-for-sale securities 59,316 130,178 110,059
Proceeds from sale of Visa Inc. Class B restricted common stock 2,807 0 0
Decrease in loans receivable, net 16,945 164,019 256,856
Proceeds from sale of loan 3,263 0 0
Purchase of bank-owned life insurance policies 0 (4,714) (1,943)
Proceeds from bank-owned life insurance policies 766 350 2,478
Purchase of premises and equipment (1,749) (2,266) (1,044)
Proceeds from sale of other real estate owned 420 0 0
Cash and cash equivalents acquired from American River Bankshares 0 0 140,577
Cash paid for low income housing tax credit investment (42) (30) (398)
Net cash provided by (used in) investing activities 334,691 (218,097) (340,666)
Cash Flows from Financing Activities:      
Net (decrease) increase in deposits (283,273) (235,202) 514,279
(Repayment of) proceeds from short-term borrowings, net (86,000) 112,000 (13,885)
Repayment of finance lease obligations (148) (131) (86)
Repayment of subordinated debenture including execution costs 0 0 (4,126)
Proceeds from stock options exercised 230 821 463
Restricted stock surrendered for tax withholdings upon vesting (70) (40) (166)
Cash dividends paid on common stock (16,106) (15,673) (13,107)
Stock repurchased, including commissions 0 (1,250) (40,762)
Proceeds from stock issued under employee and director stock purchase plans 46 78 124
Net cash (used in) provided by financing activities (385,321) (139,397) 442,734
Net (decrease) increase in cash, cash equivalents and restricted cash (14,971) (302,217) 147,321
Cash, cash equivalents and restricted cash at beginning of period 45,424 347,641 200,320
Cash, cash equivalents and restricted cash at end of period 30,453 45,424 347,641
Supplemental disclosure of cash flow information:      
Interest paid on deposits and borrowings 34,038 2,560 2,105
Income taxes paid, net of refunds 8,428 13,730 12,350
Supplemental disclosure of noncash investing and financing activities:      
Change in net unrealized gains or losses on available-for-sale securities 20,358 (88,620) (21,281)
Securities transferred from available-for-sale to held-to-maturity, at fair value 0 357,482 0
Amortization of net unrealized loss on available-for-sale securities transferred to held-to-maturity 1,743 1,580 493
Transfer of loan to loans held-for-sale 3,263 0 0
Repurchase of stock not yet settled 0 0 373
Acquisition: Fair value of assets acquired, excluding cash and cash equivalents 0 0 757,844
Fair value of liabilities assumed 0 0 816,558
Restricted cash [1] $ 330 $ 0 $ 1,930
[1]
1Restricted cash includes reserve requirements held with the Federal Reserve Bank of San Francisco and other cash pledged. In response to the COVID-19 pandemic, the Federal Reserve reduced the reserve requirement ratios to zero percent effective March 26, 2020.
The accompanying notes are an integral part of these consolidated financial statements.
v3.24.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
 
Nature of Operations: Bank of Marin Bancorp ("Bancorp"), headquartered in Novato, California, conducts business primarily through its wholly-owned subsidiary, Bank of Marin (the "Bank"), a California state-chartered commercial bank that provides a wide range of financial services through 27 retail branches and 8 commercial banking offices across 10 counties, including Alameda, Amador, Contra Costa, Marin, Napa, Placer, Sacramento, San Francisco, San Mateo and Sonoma. Our customer base is made up of business, not-for-profit and personal banking relationships from the communities within our Northern California footprint.

Basis of Presentation: The consolidated financial statements include the accounts of Bancorp, a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin, a California state-chartered commercial bank. References to “we,” “our,” “us” mean Bancorp and the Bank that are consolidated for financial reporting purposes. Our accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP"), general practice, and regulatory guidance within the banking industry. A summary of our significant policies follows. All material intercompany transactions have been eliminated. We monitor financial performance and evaluate the revenue streams of the various products, services, locations, and operations on a company-wide basis. Accordingly, all of the community banking and wealth management and trust services are considered by management to be aggregated into one reportable operating segment, community banking. We evaluated subsequent events through the date of filing with the Securities and Exchange Commission (“SEC”) and determined there were no subsequent events that required additional recognition or disclosure.

Accounting Changes and Reclassifications: Certain items in prior financial statements have been reclassified to conform to the current presentation, including the reclassification of the provision for credit losses on unfunded commitments in the second quarter of 2021 from non-interest expense to a separate line item under the provision for credit losses on loans in the consolidated statements of comprehensive income (loss).

Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the consolidated financial statements include the allowance for credit losses, fair value measurements, and goodwill impairment assessment, as discussed in the Notes herein.

Cash, Cash Equivalents and Restricted Cash: This includes cash, due from banks, federal funds sold and other short-term investments with maturities of less than three months at the time of purchase. Restricted cash includes balances not immediately available for business operations such as Federal Reserve Bank of San Francisco reserve requirements and cash pledged for interest rate swap contracts and local agency deposits.

Investment Securities: Investment securities are classified as "held-to-maturity," "trading securities" or "available-for-sale." Investments classified as held-to-maturity are those that we have the ability and intent to hold until maturity and are reported at cost, adjusted for the amortization or accretion of premiums or discounts. Investments held for resale in anticipation of short-term market movements are classified as trading securities and are reported at fair value, with unrealized gains and losses included in earnings. Investments that are neither held-to-maturity nor trading are classified as available-for-sale and are reported at fair value. Unrealized gains and losses for available-for-sale securities, net of related taxes, are reported as a separate component of comprehensive income (loss) and included in stockholders' equity until realized. For discussion of our methodology in determining fair value, see Note 9, Fair Value of Assets and Liabilities.

Purchase premiums and discounts on investment securities are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For certain callable debt securities purchased at a premium, we amortize the premium to the earliest call date.

Dividend and interest income are recognized when earned. Realized gains and losses on the sale of securities are included in non-interest income. The specific identification method is used to calculate realized gains and losses on sales of securities.

Securities transferred from the available-for-sale category to the held-to-maturity category are recorded at fair value
at the date of transfer. Unrealized holding gains or losses on the dates of the transfer of securities from available-for-sale to held-to-maturity are included in the balance of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets. These unrealized holding gains or losses on the dates of transfer are amortized over the remaining life of the securities as yield adjustments in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security.

Non-marketable equity securities include stock held for membership and regulatory purposes, such as Federal Home Loan Bank ("FHLB") stock and other non-marketable equity securities. These securities are accounted for at cost, evaluated for impairment as of each reporting period, and included in interest receivable and other assets on the consolidated statements of condition. During 2023, the Bank sold its remaining investment in Visa Inc. Class B restricted common stock, as discussed in Note 2 - Investment securities. As of December 31, 2023 and 2022 our investment in FHLB stock was carried at cost, as there was no impairment or changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Both cash and stock dividends from the FHLB are reported as non-interest income.

Allowance for Credit Losses on Investment Securities: The allowance for credit losses on held-to-maturity securities is a contra-asset valuation account determined in accordance with ASC 326, which is deducted from the securities' amortized cost basis at the balance sheet date as a result of management's assessment of the net amount expected to be collected. The allowance is measured on a pooled basis for securities with similar risk characteristics using historical credit loss information, adjusted for current conditions and reasonable and supportable forecasts. Securities that are determined to be uncollectible are written off against the allowance.

For available-for-sale securities in an unrealized loss position ("impaired security"), we assess whether 1) we intend to sell the security, or, 2) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. Under either of these conditions, the security's amortized cost is written down to fair value through a charge to previously recognized allowances or earnings, as applicable. For impaired securities that do not meet these conditions, we assess whether the decline in fair value was due to credit loss or other factors. This assessment considers, among other things: 1) the extent to which the fair value is less than amortized cost, 2) the financial condition and near-term prospects of the issuer, 3) any changes to the rating of the security by a rating agency, and 4) our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss component. Any impairment due to non-credit-related factors that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). The discount rate used in determining the present value of the expected cash flows is based on the effective interest rate implicit in the security at the date of purchase.

Accrued interest receivable is excluded from the amortized costs and fair values of both held-to-maturity and available-for-sale securities and included in interest receivable and other assets on the consolidated statements of condition. Investment securities are placed on non-accrual status when principal or interest is contractually past due more than ninety days, or management does not expect full payment of principal and interest. We do not record an allowance for credit losses for accrued interest on investment securities, as the amounts are written-off when the investment is placed on non-accrual status. There were no non-accrual investment securities in any of the years presented in the consolidated financial statements.

Originated Loans: Loans are reported at amortized cost, which is the principal amount outstanding net of deferred fees (costs), purchase premiums (discounts) and net charge-offs (recoveries). Amortized cost excludes accrued interest, which is reflected in interest receivable and other assets in the consolidated statements of condition. We do not measure an allowance for credit losses on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when loans are placed on non-accrual status as discussed below. Interest income is accrued daily using the simple interest method. Fees collected upon loan origination and certain direct costs of originating loans are deferred and recognized over the contractual lives of the related loans as yield adjustments using the interest method or straight-line method, as applicable. Upon prepayment or other disposition of the underlying loans before their contractual maturities, any associated unearned fees or unamortized costs are recognized.
Acquired Loans: ASC 326 modified the accounting for purchased loans and requires that an allowance for credit losses be established at the date of acquisition. However, for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than reported as a provision for credit losses. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the provision for credit losses.

Past-Due and Non-Accrual Loan Policy: A loan is considered past due when a payment has not been received by the contractual due date. Loans are placed on non-accrual status when management believes that there is substantial doubt as to the collection of principal or interest, generally when they become contractually past due by 90 days or more with respect to principal or interest, except for loans that are well-secured and in the process of collection. When loans are placed on non-accrual status, any accrued but uncollected interest is reversed from current-period interest income and the amortization of deferred loan origination fees and costs is suspended. Interest payments received on nonaccrual loans are either applied against principal or reported as interest income, according to management’s judgment as to the ultimate collectability of principal. We may return non-accrual loans to accrual status when one of the following occurs:

The borrower has resumed paying the full amount of the principal and interest and we are satisfied with the borrower's financial position. In order to meet this test, we must have received repayment of all past due principal and interest, unless the amounts contractually due are reasonably assured of repayment within a reasonable period of time, and there has been a sustained period of repayment performance (generally, six consecutive monthly payments), according to the original or modified contractual terms.
The loan has become well secured and is in the process of collection.

Loan Charge-Off Policy: For all loan types excluding overdraft accounts, we generally make a charge-off determination at or before 90 days past due. A collateral-dependent loan is partially charged down to the fair value of collateral securing it if: (1) it is deemed uncollectable, or (2) it has been classified as a loss by either our internal loan review process or external examiners. A non-collateral-dependent loan is partially charged down to its net realizable value under the same circumstances. Overdraft accounts are generally charged off when they exceed 60 days past due.

Collateral Dependent Loans: A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For collateral dependent loans, including those for which management determines foreclosure is probable, each loan is individually evaluated and the allowance for credit losses is based on the fair value of the collateral, adjusted for estimated selling costs when repayment is expected from the sale of the collateral, less the loan's amortized cost. In determining the fair value, management considers such information as the appraised value of the collateral, observed and potential future changes in collateral value, and historical loss experience for loans that were secured by similar collateral. Generally, with problem credits that are collateral dependent, we obtain appraisals of the collateral at least annually. We may obtain appraisals more frequently if we believe the collateral value is subject to market volatility, if a specific event has affected the collateral, or if we believe foreclosure is imminent.

Allowance for Credit Losses on Loans ("ACL"): The ACL is a valuation account that is deducted from the amortized cost basis at the balance sheet date to present the net amount of loans expected to be collected. Amortized cost does not include accrued interest, which management elected to exclude from the estimate of expected credit losses (refer to the Past-Due and Non-Accrual Loan Policy section above). Management estimates the allowance quarterly using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Credit loss experience provides the basis for the estimation of expected credit losses.

The ACL model utilizes a discounted cash flow ("DCF") method to measure the expected credit losses on loans collectively evaluated that are sub-segmented by loan pools with similar credit risk characteristics, which are generally comprised of federal regulatory reporting codes (i.e., Call codes). Pooled segments include the following:

Loans secured by real estate:
-     1-4 family residential construction loans
-     Other construction loans and all land development and other land loans
-     Secured by farmland (including residential and other improvements)
-     Revolving, open-end loans secured by 1-4 family residential properties and extended under lines
of credit
-     Closed-end loans secured by 1-4 family residential properties, secured by first liens
-     Closed-end loans secured by 1-4 family residential properties, secured by junior liens
-     Secured by multifamily (5 or more) residential properties
-     Commercial real estate loans secured by owner-occupied non-farm nonresidential properties
-     Commercial real estate loans secured by other non-farm nonresidential properties
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Loans to individuals for household, family and other personal expenditures (i.e., consumer loans)
Municipal entities
Non-profit organizations
Other loans (overdraft credit lines)

The DCF method incorporates assumptions for probability of default ("PD"), loss given default ("LGD"), and prepayments and curtailments over the contractual terms of the loans. Under the DCF method, the ACL reflects the difference between the amortized cost basis and the present value of the expected cash flows using the loan's effective rate. We elected to report the change in present values from one reporting period to the next due to the passage of time and changes in the estimate of future expected cash flows through the provision for credit losses, rather than though interest income.

In determining the PD for each pooled segment, the Bank utilized regression analyses to identify certain economic drivers that were considered highly correlated to historical Bank or peer loan default experience. As a result, management chose the California unemployment rate as the primary economic forecast driver for all segments, except for municipal loans. In addition, the annual percentage change in the California gross domestic product was used in the commercial and industrial loan segment. For municipal loans, the ACL model utilized a constant default rate obtained from a nationally recognized default rate study, which is updated annually. A third party provides LGD estimates for each segment based on a banking industry Frye-Jacobs Risk Index approach. The ACL model incorporates a one-year reasonable and supportable forecast of economic factors, updated quarterly, which is based on Moody's Analytics' Baseline Forecast. For periods beyond the forecast horizon, the economic factors revert to historical averages on a straight-line basis over a one-year period.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments and curtailments, when appropriate. The pooled loans' contractual loan terms exclude assumptions about extensions, renewals, and modifications.

Loans that do not share the same risk characteristics as pooled loans are evaluated individually for credit loss and generally include all non-accrual loans, collateral dependent loans, and certain modified loans and loans graded substandard or worse, as determined by management.

Management considers whether adjustments to the quantitative portion of the ACL are needed for differences in segment-specific risk characteristics or to reflect the extent to which it expects current conditions and reasonable and supportable forecasts of economic conditions to differ from the conditions that existed during the historical period included in the development of PD and LGD. Qualitative internal and external risk factors include, but are not limited to, the following:
Changes in the nature and volume of the loan portfolio
Changes in the volume and severity of past due loans, the volume of non-accruals loans, and the volume and severity of adversely classified or graded loans
The existence and effect of individual loan and loan segment concentrations
Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere
Changes in the experience, ability, and depth of lending management and other relevant staff
Changes in the quality of our systematic loan review processes
Changes in economic and business conditions, and developments that affect the collectability of the portfolio
Changes in the value of underlying collateral, where applicable
The effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses in the portfolio
The effect of acquisitions of other loan portfolios on our infrastructure, including risk associated with entering new geographic areas as a result of such acquisitions
The presence of specialized lending segments in the portfolio

There were no material changes to the ACL methodology during 2023. However, assumptions that mainly influenced management's current estimate of the expected credit losses were primarily adjustments to qualitative risk factors from continued uncertainty about inflation and recession risks, the potential impact of rapidly increasing interest rates and other external factors on both our non-owner-occupied commercial real estate and construction portfolios, loan and collateral concentration risks in our construction and commercial real estate portfolios, heightened portfolio management in light of current economic conditions, and continued negative trends in adversely graded loans and/or collateral values for our non-owner occupied commercial real estate office and multi-family real estate portfolios. Other elements of the estimated current expected credit losses included increased allowances for individually analyzed loans exhibiting unique credit risk characteristics and a slight increase in Moody's Analytics' Baseline Forecast of California's unemployment rate, partially offset by the impact of an overall decrease in loans. While we believe we use the best information available to determine the allowance for credit losses, our results of operations could be significantly affected if circumstances differ substantially from the assumptions used in determining the allowance. Our ACL model is sensitive to changes in unemployment rate forecasts and certain other assumptions that could result in material fluctuations in the allowance for credit losses and adversely affect our financial condition and results of operations.

As discussed in the Other Recently Adopted Accounting Standards section below, as of January 1 2023, we adopted ASU No. 2022-02 under which the concept of troubled debt restructured loans and its impact on the ACL calculation was eliminated in favor of the disclosure of certain loan modifications made to borrowers experiencing financial difficulty. Such modified loans are now subject to the Bank's standard ACL process, as outlined above.

For further information regarding the allowance for loan losses, see Note 3, Loans and Allowance for Loan Losses.

Allowance for Credit Losses on Unfunded Loan Commitments: We make commitments to extend credit to meet the financing needs of our customers in the form of loans or standby letters of credit. We are exposed to credit losses over a loan's contractual period in the event that a decline in credit quality of the borrower leads to nonperformance. We record an allowance for losses on unfunded loan commitments at the balance sheet date based on estimates of probability that these commitments will be drawn upon according to historical utilization experience of different types of commitments and expected loss severity and loss rates determined for pooled funded loans. The allowance for credit losses on unfunded commitments is a liability account included in interest payable and other liabilities on the consolidated statements of condition. Adjustments to the allowance for unfunded commitments are included in non-interest expense as a provision for (or reversal of) the allowance for unfunded commitments.

Transfers of Financial Assets: We have entered into certain loan participation agreements with other organizations. We account for these transfers of financial assets as sales when control over the transferred financial assets has been surrendered. Control over transferred assets is deemed to be surrendered when 1) the assets and liabilities have been isolated from us, 2) the transferee has the right to pledge or exchange the assets (or beneficial interests) it received, free of conditions that constrain it from taking advantage of that right, beyond a trivial benefit and 3) we do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Transfers of a portion of a loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, and the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. We recognized no gains or losses on the sale of these participation interests in 2023, 2022 and 2021.

Premises and Equipment: Land is carried at cost and not depreciated. Bank-owned buildings, leasehold improvements, furniture, fixtures, software and equipment and are stated at cost, less accumulated depreciation, and depreciated/amortized on a straight-line basis. Furniture and fixtures are depreciated over eight years and
equipment is generally depreciated over three to twenty years. Bank-owned buildings are depreciated over twenty-five to thirty years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the terms of the leases. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred.

Leases: We lease certain premises under long-term non-cancelable operating leases, most of which include escalation clauses and one or more options to extend the lease term, and some of which contain lease termination clauses. Only those renewal and termination options that management determines are reasonably certain of exercising are included in the calculation of the lease liability. In addition, we lease certain equipment under finance leases. The equipment finance lease terms do not contain renewal options, bargain purchase options or residual value guarantees. We did not have any significant short-term leases during the reported periods.

Lease right-of-use assets represent the right to use the underlying asset while lease liabilities represent the present value of future lease obligations. We elected not to separate non-lease components from lease components and to exclude short-term leases (i.e., lease term of 12 months or less at the commencement date) from right-of-use assets and lease liabilities for all lease classifications. When calculating the lease liability, because most lease contracts do not contain an implicit interest rate, we discount lease payments over a lease's expected term based on the collateralized Federal Home Loan Bank borrowing rate that was commensurate with lease terms and minimum payments at the lease commencement date. Right-of-use assets for operating leases are amortized over the lease term by amounts that represent the difference between periodic straight-line lease expense and periodic interest accretion on the related liability to make lease payments, whereas finance leases are amortized on a straight-line basis over the term of the lease. Expense recognition for operating leases is recorded on a straight-line basis while expense recognition for finance leases represents the sum of periodic amortization of the associated right-of-use asset and the interest accretion on the lease liability. Refer to Note 12, Commitments and Contingencies, for further information.

Business Combinations: Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. A business is defined as a set of activities and assets that is both self-sustaining and managed to provide a return to investors and generally has three elements: inputs, processes and outputs. Under the acquisition method, the acquiring entity in a business combination recognizes the acquired assets and assumed liabilities at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceed the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed from a business combination are recognized at fair value. Results of operations of an acquired business are included in the consolidated statements of operations from the date of acquisition. Business acquisition-related costs, including conversion and restructuring charges, are expensed as incurred. If substantially all of an acquisition is made up of one asset or several similar assets, or without a substantive process that together contributes to the ability to create outputs, the acquisition is accounted for as an asset acquisition and acquisition costs will be capitalized as part of the assets acquired, rather than expensed in a business combinations.

Goodwill and Other Intangible Assets: Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is deemed to have an indefinite life, is not subject to amortization, and as such is tested for impairment at least annually or more frequently if events and circumstances lead management to believe the value of goodwill may be impaired. Goodwill is the only intangible asset with an indefinite life recorded in the Company’s consolidated statements of financial condition. Impairment testing is performed at the reporting unit level. Management considered the Company to be its sole reporting unit for the year ended December 31, 2023.

Management’s assessment of goodwill impairment is performed in accordance with ASC 350-20, Intangibles - Goodwill and Other - Goodwill and encompasses a two-step process. First, the Company has the option to perform a qualitative assessment to evaluate relevant events or circumstances to determine whether it is more likely than not the fair value of the Company is less than its carrying amount, including goodwill. The factors considered in the qualitative assessment typically include macroeconomic conditions, industry and market conditions and the overall financial performance of the Company, among other factors. If the Company determines that it is more likely than
not the fair value of the Company may be less than its carrying amounts, then it proceeds to the quantitative impairment test, whereby it calculates the fair value of the Company. Under GAAP, in its performance of impairment testing, management has the unconditional option to proceed directly to the quantitative impairment test, bypassing the qualitative assessment. If the carrying amount of the Company exceeds its fair value, the amount by which the carrying amount exceeds fair value, up to the carrying value of goodwill, is recorded through earnings as an impairment charge recorded in non-interest expense. If the results of the qualitative assessment indicate that it is not more likely than not that an impairment has occurred, or if the quantitative impairment test results in a fair value of the Company that is greater than the carrying amount, then no impairment charge is recorded.

The Company performs its annual goodwill impairment test as of November 30th each year. Due to the market volatility experienced in the banking sector during 2023, the Company elected to bypass a qualitative assessment of goodwill and proceed directly to a quantitative assessment, the results of which indicated that goodwill totaling $72.8 million was not impaired as of December 31, 2023, and there were no changes to our assessment through December 31, 2023. In addition, the Company recorded no goodwill impairment for the years ended December 31, 2022, and 2021.

Core deposit intangibles ("CDI") arising from the acquisition of other financial institutions are considered to have definite useful lives and are amortized on an accelerated method over their estimated useful life of ten years. At December 31, 2023, the future estimated amortization expense for the CDI arising from our past acquisitions was as follows:
(in thousands)20242025202620272028ThereafterTotal
Core deposit intangible amortization$975 $875 $773 $634 $242 $267 $3,766 

The CDI represents the estimated future benefit of deposits related to an acquisition and is recorded separately from the related deposits and evaluated at least annually or when events and circumstances change. We recorded no impairment adjustments for the CDI in 2023, 2022 and 2021.

Other Real Estate Owned ("OREO"): OREO is comprised of property acquired through a business combination, foreclosure, in substance repossession or acceptance of deeds-in-lieu of foreclosure when the related loan receivable is de-recognized. OREO is recorded at fair value of the collateral less estimated costs to sell, establishing a new cost basis, and subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Any shortfall of collateral value from the recorded investment of the related loan is recognized as loss at the time of foreclosure and is charged against the allowance for loan losses. Fair value of collateral is generally based on an independent appraisal of the property. Revenues and expenses associated with OREO, and subsequent adjustments to the fair value of the property and to the estimated costs of disposal, are realized and reported as a component of non-interest income and expense when incurred. We recorded a $40 thousand and $345 thousand valuation adjustment to OREO in 2023 and 2022, respectively. In July 2023, the Bank completed the sale of its only OREO property.

Bank Owned Life Insurance ("BOLI"): The Bank owns life insurance policies on certain key current and former officers. BOLI is recorded in interest receivable and other assets on the consolidated statements of condition at the amount that can be realized under the insurance contract at period-end, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement.

Investments in Low Income Housing Tax Credit Funds: We have invested in limited partnerships that were formed to develop and operate affordable housing projects for low or moderate-income tenants throughout California. Our ownership percentage in each limited partnership ranges from 1.0% to 3.5%. We account for the investments in qualified affordable housing tax credit funds using the proportional amortization method, where the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received. Low income housing tax credits and other tax benefits received, net of the amortization of the investment is recognized as part of income tax benefit. Each of the partnerships must meet the regulatory minimum requirements for affordable housing for a minimum 15-year compliance period to fully utilize the tax credits. If the partnerships cease to qualify during the compliance period, the credit may be denied for any period in which the project is not in compliance and a portion of the credit previously taken is subject to recapture with interest. We record an impairment charge if the value of the future tax credits and other tax benefits is less than the carrying value of the investments.
Employee Stock Ownership Plan (“ESOP”): We recognize compensation cost for ESOP contributions when funds become committed for the purchase of Bancorp's common shares into the ESOP in the year in which the employees render service entitling them to the contribution. If we contribute stock, the compensation cost is the fair value of the shares when they are committed to be released (i.e., when the number of shares becomes known and formally approved). In 2023, 2022 and 2021, Bancorp only made stock contributions to the ESOP.

Income Taxes: Income taxes reported in the consolidated financial statements are computed based on an asset and liability approach. We recognize the amount of taxes payable or refundable for the current year and we record deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. We record net deferred tax assets to the extent it is more likely than not that they will be realized. In evaluating our ability to recover the deferred tax assets and the need to establish a valuation allowance against the deferred tax assets, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. In projecting future taxable income, management develops assumptions including the amount of future state and federal pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates being used to manage the underlying business. Bancorp files consolidated federal and combined state income tax returns.

We recognize the financial statement effect of a tax position when it is more likely than not, based on the technical merits and all available evidence, that the position will be sustained upon examination, including the resolution through protests, appeals or litigation processes. For tax positions that meet the more likely than not threshold, we measure and record the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with the taxing authority. The remainder of the benefits associated with tax positions taken is recorded as unrecognized tax benefits, along with any related interest and penalties. Interest and penalties related to unrecognized tax benefits are recorded in tax expense.

In deciding whether or not our tax positions taken meet the more likely than not recognition threshold, we must make judgments and interpretations about the application of inherently complex state and federal tax laws. To the extent tax authorities disagree with tax positions taken by us, our effective tax rates could be materially affected in the period of settlement with the taxing authorities. Revision of our estimate of accrued income taxes also may result from our own income tax planning, which may affect effective tax rates and results of operations for any reporting period.

We present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss ("NOL") carryforward, or similar tax loss or tax credit carryforward, rather than as a liability, when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) we intend to and are able to use the deferred tax asset for that purpose. Otherwise, the unrecognized tax benefit is presented as a liability instead of being netted with deferred tax assets.

Earnings per share (“EPS”): EPS is based upon the weighted average number of common shares outstanding during each year. The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic EPS are calculated by dividing net income by the weighted average number of common shares outstanding during each annual period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury stock method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities.
(in thousands, except per share data)202320222021
Weighted average basic common shares outstanding16,012 15,921 14,340 
Potentially dilutive common shares related to:
Stock options31 62 
Unvested restricted stock awards11 17 20 
Weighted average diluted common shares outstanding16,026 15,969 14,422 
Net income$19,895 $46,586 $33,228 
Basic EPS$1.24 $2.93 $2.32 
Diluted EPS$1.24 $2.92 $2.30 
Weighted average anti-dilutive common shares not included in the calculation of diluted EPS364 211 97 

Share-Based Compensation: All share-based payments, including stock options and restricted stock, are recognized as stock-based compensation expense in the consolidated statements of comprehensive income (loss) based on the grant-date fair value of the award with a corresponding increase in common stock. The grant-date fair value of the award is amortized on a straight-line basis over the requisite service period, which is generally the vesting period. The stock-based compensation expense excludes stock grants to directors as compensation for their services, which are recognized as director expenses separately based on the grant-date value of the stock. We account for forfeitures as they occur. See Note 8, Stockholders' Equity and Stock Option Plans, for further discussion.

We determine the fair value of stock options at the grant date using a Black-Scholes pricing model that takes into account the stock price at the grant date, exercise price, expected life of the option, volatility of the underlying stock, expected dividend yield and risk-free interest rate over the expected life of the option. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is based on the historical volatility of the common stock over the most recent period that is generally commensurate with the expected life of the options. The Black-Scholes option valuation model requires the input of highly subjective assumptions, including the expected life of the stock-based award and stock price volatility. The assumptions used represent management's best estimates based on historical information, but these estimates involve inherent uncertainties and the application of management's judgment. As a result, if other assumptions had been used, the recorded stock-based compensation expense could have been materially different from that recorded in the consolidated financial statements. The fair value of restricted stock is based on the stock price on the grant date.

We record excess tax benefits resulting from the exercise of non-qualified stock options, the disqualifying disposition of incentive stock options and vesting of restricted stock awards as tax benefits in the consolidated statements of comprehensive income (loss) with a corresponding decrease to current taxes payable. In addition, we reflect excess tax benefits as an operating activity in the consolidated statements of cash flows.

Cash paid for tax withholdings when shares are surrendered in a cashless stock option exchange is classified as a financing activity in the consolidated statements of cash flows.

Derivative Financial Instruments and Hedging Activities - Fair Value Hedges: All of our interest rate swap contracts are designated and qualified as fair value hedges. The terms of our loan interest rate swap contracts are closely aligned to the terms of the designated fixed-rate loans. The hedging relationships are tested for effectiveness on a quarterly basis using a qualitative approach. The qualitative analysis includes verification that there are no changes to the derivative's or hedged item's key terms and conditions and no adverse developments regarding risk of counterparty default, and validation that we continue to have fair value hedge designation. Our rate swaps on available-for-sale securities were designated as partial term fair value hedges and structured such that the changes in fair value of the interest rate swaps are expected to be perfectly effective in offsetting the changes in the fair value of the hedged items attributable to changes in the swap rate. Because the hedges met the criteria for using the shortcut method, there is no need to periodically reassess effectiveness during the term of the hedges.

The interest rate swaps are carried on the consolidated statements of condition at their fair value in other assets (when the fair value is positive) or in other liabilities (when the fair value is negative). For fair value designated
hedges, the gain or loss on the hedging instruments, as well as the offsetting loss or gain on the hedged items, are recognized in current earnings as fair values change.

For derivative instruments executed with the same counterparty under a master netting arrangement, we do not offset fair value amounts of interest rate swaps in liability positions with the ones in asset positions.

From time to time, we make firm commitments to enter into long-term fixed-rate loans with borrowers backed by yield maintenance agreements and simultaneously enter into forward interest rate swap agreements with correspondent banks to mitigate the change in fair value of the yield maintenance agreement. Prior to loan funding, yield maintenance agreements with net settlement features that meet the definition of a derivative are considered as non-designated hedges and are carried on the consolidated statements of condition at their fair value in other assets (when the fair value is positive) or in other liabilities (when the fair value is negative). The offsetting changes in the fair value of the forward swap and the yield maintenance agreement are recorded in interest income. When the fixed-rate loans are originated, the forward swaps are designated to offset the change in fair value in the loans. Subsequent to the point of the swap designations, the fair value of the related yield maintenance agreements at the designation date that was recorded in other assets is amortized using the effective yield method over the life of the respective designated loans.

For further detail, refer to Note 14, Derivative Financial Instruments and Hedging Activities.

Revenue Recognition: We utilize the following five-step model for non-financial instrument related revenue that is in scope for ASC 606, Revenue from Contracts with Customers: 1) identify the contract, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and, 5) recognize revenue when (or as) the entity satisfies the performance obligation. Our main revenue streams in scope for ASC 606 include:

Wealth management and trust services ("WMTS") fees - WMTS services include, but are not limited to: customized investment advisory and management; administrative services such as bill pay and tax reporting; trust administration, estate settlement, custody and fiduciary services.  Performance obligations for investment advisory and management services are generally satisfied over time.  Revenue is recognized monthly according to a tiered fee schedule based on the client's month-end market value of assets under our management.  WMTS does not earn revenue based on performance or incentives.  Costs associated with WMTS revenue-generating activities, such as payments to sub-advisors, are recorded separately as part of professional service expenses when incurred.

Deposit account service charges - Service charges on deposit accounts consist of monthly maintenance fees, business account analysis fees, business online banking fees, check order charges, and other deposit account-related fees.  Performance obligations for monthly maintenance fees and account analysis fees are satisfied, and the related revenue recognized, when we complete our performance obligation each month.  Performance obligations related to transaction-based services (such as check orders) are satisfied, and the related revenue recognized, at a point in time typically when the transaction is completed, except for business accounts subject to analysis where the transaction-based fees are part of the monthly account analysis fees.

Debit card interchange fees - We issue debit cards to our consumer and small business customers that allow them to purchase goods and services from merchants in person, online, or via mobile devices using funds held in their demand deposit accounts held with us.  Debit cards issued to our customers are part of global electronic payment networks (such as Visa) who pass a portion of the merchant interchange fees to debit card-issuing member banks like us when our customers make purchases through their networks.  Performance obligations for debit card services are satisfied and revenue is recognized daily as the payment networks process transactions.  Because we act in an agent capacity, we recognize network costs on a net basis with interchange fees in non-interest income.

Advertising Costs: Advertising costs are expensed as incurred. For the years ended December 31, 2023, 2022, and 2021, advertising costs totaled $1.2 million, $1.1 million, and $908 thousand, respectively.
Comprehensive Income (Loss): Comprehensive income (loss) primarily includes net income, changes in the unrealized gains or losses on available-for-sale investment securities, reclassification adjustment for gains or losses
on fair value hedges, reclassification adjustment for realized (gains) losses on available-for-sale securities in net income, and amortization of net unrealized gains or losses on securities transferred from available-for-sale to held-to-maturity, net of related taxes, reported on the consolidated statements of comprehensive income (loss) and as components of stockholders' equity.

Fair Value Measurements: We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., exit price notion) reflecting factors such as a liquidity premium. Securities available-for-sale and derivatives are recorded at fair value on a recurring basis. Equity investments that do not have readily determinable fair values are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. FHLB stock was carried at cost as of December 31, 2023, as there was no impairment or changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Additionally, from time to time, we may be required to record certain assets and liabilities at fair value on a non-recurring basis, such as purchased loans and acquired deposits recorded at acquisition date, certain collateral dependent loans, other real estate owned and securities held-to-maturity that are other-than-temporarily impaired. These non-recurring fair value adjustments typically involve write-downs of individual assets due to application of lower-of-cost or market accounting.

When we develop our fair value measurement process, we maximize the use of observable inputs. Whenever there is no readily available market data, we use our best estimates and assumptions in determining fair value, but these estimates involve inherent uncertainties and the application of management's judgment. As a result, if other assumptions had been used, our recorded earnings or disclosures could have been materially different from those reflected in these consolidated financial statements.

Other Recently Adopted Accounting Standards

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendment eliminated the recognition measurement guidance for troubled debt restructured ("TDR") loans and instead enhanced disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. In addition, the amendment required that an entity include in its vintage disclosures the current period gross loan charge-offs by year of origination. We early adopted the current period charge-off disclosures in the first quarter of 2022. We adopted the loan modification provisions as of January 1, 2023 using a modified retrospective method. The cumulative-effect adjustment to retained earnings was considered immaterial. Refer to Note 5, Loans and Allowance for Credit Losses on Loans, for additional information.

In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. Among other things, the ASU renamed the "last-of-layer" method to the "portfolio layer" method and made fair value hedging more accessible for hedge accounting of interest rate risk for portfolios and financial assets. For example, the guidance permits an entity to apply the same portfolio hedging method to both prepayable and non-prepayable financial assets, thereby providing for consistency between accounting for similar hedges. We adopted the amendments on January 1, 2023, which had no effect on our existing hedge accounting, disclosures, financial condition or results of operations.

In March 2020, the FASB issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU are elective and provide optional guidance for a limited period of time to ease the potential burden of accounting for, or recognizing the effects of reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Topic 848 was further amended in January 2021 with ASU No. 2021-01, which provided additional guidance on certain optional expedients and scope of derivative instruments, and in December 2022 with ASU 2022-06, which extended the sunset date of Topic 848 to December 31, 2024 given the UK Financial Conduct Authority ("FCA") March 2021 announcement that the intended cessation date of certain tenors of USD LIBOR would be June 30, 2023. An entity may elect the amendments in these updates at an interim period with adoption methods varying based on transaction type. As of December 31, 2023, we had three interest rate swap contracts with notional values totaling $8.6 million that were indexed to LIBOR, which transitioned to the Secured Overnight
Financing Rate ("SOFR") effective July 1, 2023. The transition to SOFR did not have a material impact to either our financial condition or results of operations.
Accounting Standards Not Yet Effective

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendment reduces diversity in practice by clarifying that a separate contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. In addition, this ASU provided amended examples to illustrate that a restriction that is a characteristic of the equity security, which market participants would take into account when pricing them, would be considered in measuring fair value. This ASU also introduces new disclosure requirements. The amendments are effective prospectively for years beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements. As discussed in Note 2, Investment Securities, in July 2023 we sold our remaining shares of Visa Inc. Class B restricted common stock. As a result of the sale, this update will not impact our financial condition, results of operations or disclosures.

In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. For public companies, the amendment requires entities to amortize leasehold improvements associated with common control lease arrangements over the useful life of the improvements to the common control group, as opposed to the shorter of the remaining lease term and the useful life of the improvements for all other operating leases. The amendments are effective for years beginning after December 15, 2023, and may be adopted either prospectively or retrospectively. Early adoption is permitted for both interim and annual financial statements. We currently do not have common control lease arrangements, and therefore do not anticipate that the amendments will impact our financial condition and results of operations.

In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. 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 proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the consolidated statements of income as a component of income tax expense (benefit). The amendments will allow entities to elect to account for all other equity investments made primarily for the purpose of receiving income tax credits to using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, when certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023, and may be adopted either on a modified retrospective basis or retrospectively. Other than investments in LIHTC funds, as disclosed in Note 4, Investment Securities, we currently have no other equity investments made primarily for the purpose of receiving income tax credits, and therefore do not anticipate that the amendments will impact our financial condition and results of operations.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, enhanced interim disclosure requirements, clarifying circumstances in which an entity can disclose multiple segment measures of profit or loss, providing new segment disclosure requirements for entities with a single reportable segment, and requiring other disclosures. The amendments are effective for annual reporting periods beginning after December 15, 2023 (i.e., 2024 Form 10-K) and interim periods within fiscal years beginning after December 31, 2024, and shall be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. We currently have only one reportable segment and are evaluating the impact of the amendments on our financial statement disclosures upon adoption.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require disaggregated information about the effective tax rate reconciliation and additional disclosures on reconciling items and taxes paid that meet a quantitative threshold. The amendments are effective for annual reporting periods beginning after December 15, 2024, and may be adopted either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact of the amendments on our financial statement disclosures upon adoption.
v3.24.0.1
Investment Securities
12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
 
Our investment securities portfolio consists of U.S. Treasury securities, obligations of state and political subdivisions, U.S. federal government agencies, such as the Government National Mortgage Association ("GNMA") and Small Business Administration ("SBA"), and U.S. government-sponsored enterprises ("GSEs"), such as the Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), Federal Farm Credit Banks Funding Corporation and FHLB, and U.S. Corporations. We also invest in residential and commercial mortgage-backed securities ("MBS"/"CMBS") and collateralized mortgage obligations ("CMOs") issued or guaranteed by the GSEs, as reflected in the following table.

A summary of the amortized cost, fair value and allowance for credit losses related to securities held-to-maturity as of December 31, 2023 and December 31, 2022 is presented below.

Held-to-maturity:
Amortized Cost 1
Allowance for Credit LossesNet Carrying AmountGross UnrealizedFair Value
(in thousands)Gains(Losses)
December 31, 2023
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$306,261 $— $306,261 $— $(44,396)$261,865 
CMOs issued by FHLMC226,416 — 226,416 28 (24,869)201,575 
CMOs issued by FNMA101,502 — 101,502 — (4,779)96,723 
CMOs issued by GNMA51,006 — 51,006 — (5,235)45,771 
SBA-backed securities1,853 — 1,853 — (90)1,763 
Debentures of government-sponsored agencies146,126 — 146,126 — (21,994)124,132 
Obligations of state and political subdivisions62,034 — 62,034 47 (7,884)54,197 
Corporate bonds30,000 — 30,000 — (1,196)28,804 
Total held-to-maturity$925,198 $— $925,198 $75 $(110,443)$814,830 
December 31, 2022
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$331,281 $— $331,281 $— $(50,147)$281,134 
CMOs issued by FHLMC235,971 — 235,971 59 (29,503)$206,527 
CMOs issued by FNMA111,904 — 111,904 — (5,419)106,485 
CMOs issued by GNMA52,356 — 52,356 11 (3,076)49,291 
  SBA-backed securities2,372 — 2,372 — (133)2,239 
Debentures of government-sponsored agencies145,823 — 145,823 — (26,467)119,356 
Obligations of state and political subdivisions62,500 — 62,500 — (10,741)51,759 
Corporate bonds30,000 — 30,000 — (1,552)28,448 
Total held-to-maturity$972,207 $— $972,207 $70 $(127,038)$845,239 
1 Amortized cost and fair values exclude accrued interest receivable of $3.6 million and $3.7 million at December 31, 2023 and 2022, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.

Management measures expected credit losses on held-to-maturity securities collectively by major security type, with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to MBSs and CMOs issued or guaranteed by the GSEs, and SBA-backed securities, we expect to receive all the contractual principal and interest on these securities, as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. With regard to securities issued by states and political subdivisions and corporate bonds, 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. Based on the comprehensive analysis, no credit losses are expected.
The following table summarizes the amortized cost of our portfolio of held-to-maturity securities issued by states and political subdivisions and corporate bonds by Moody's and/or Standard & Poor's bond ratings as of December 31, 2023 and 2022.
Obligations of state and political subdivisionsCorporate bonds
 (in thousands)December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Aaa / AAA$42,577 $42,986 $— $— 
Aa2 / AA19,457 19,514 — — 
A2 / A— — 30,000 30,000 
Total$62,034 $62,500 $30,000 $30,000 

A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of December 31, 2023 and 2022 is presented below.

Available-for-sale:
Amortized Cost 1
Gross UnrealizedAllowance for Credit LossesFair Value
(in thousands)Gains(Losses)
December 31, 2023
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$81,937 $$(9,516)$— $72,423 
CMOs issued by FHLMC266,407 — (24,758)— 241,649 
CMOs issued by FNMA23,987 — (2,715)— 21,272 
CMOs issued by GNMA20,006 — (2,878)— 17,128 
SBA-backed securities21,126 — (1,655)— 19,471 
Debentures of government- sponsored agencies73,899 — (7,037)— 66,862 
U.S. Treasury securities11,923 — (1,300)— 10,623 
Obligations of state and political subdivisions102,202 (10,321)— 91,882 
Corporate bonds11,992 — (1,274)— 10,718 
Asset-backed securities— — — — — 
Total available-for-sale$613,479 $$(61,454)$— $552,028 
December 31, 2022
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$109,736 $$(12,133)$— $97,606 
CMOs issued by FHLMC347,437 — (33,682)— 313,755 
CMOs issued by FNMA36,172 — (3,852)— 32,320 
CMOs issued by GNMA35,120 — (3,296)— 31,824 
SBA-backed securities47,724 (3,371)— 44,355 
Debentures of government- sponsored agencies149,114 — (14,008)— 135,106 
U.S. Treasury securities11,904 — (1,635)— 10,269 
Obligations of state and political subdivisions116,855 29 (14,761)— 102,123 
Corporate bonds36,990 — (3,714)— 33,276 
Asset-backed securities1,553 — (91)— 1,462 
Total available-for-sale$892,605 $34 $(90,543)$— $802,096 
1 Amortized cost and fair value exclude accrued interest receivable of $2.3 million and $3.2 million at December 31, 2023 and 2022, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.

As part of our ongoing review of our investment securities portfolio, we reassessed the classification of certain securities issued by government-sponsored agencies. In March 2022, we transferred $357.5 million of these securities from available-for-sale to held-to-maturity at fair value. We intend and have the ability to hold these securities to maturity. The net unrealized pre-tax loss of $14.8 million that remained and the related accumulated other comprehensive loss are accreted to interest income over the remaining lives of the securities. Because these entries offset each other, there is no impact on net income.

The amortized cost and fair value of investment debt securities by contractual maturity at December 31, 2023 and 2022 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.
 December 31, 2023December 31, 2022
 Held-to-MaturityAvailable-for-SaleHeld-to-MaturityAvailable-for-Sale
(in thousands)Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Within one year$— $— $101 $100 $450 $446 $1,254 $1,239 
After one but within five years87,887 84,541 226,669 208,444 87,418 83,663 335,813 307,843 
After five years through ten years304,976 261,654 95,552 85,447 262,072 222,280 185,997 166,273 
After ten years532,335 468,635 291,157 258,037 622,267 538,850 369,541 326,741 
Total$925,198 $814,830 $613,479 $552,028 $972,207 $845,239 $892,605 $802,096 

Sales of investment securities and gross gains and losses for the years ended December 31, 2023, 2022 and 2021 are shown in the following table.
(in thousands)202320222021
Available-for-sale:
  Sales proceeds$205,795 $10,664 $6,632 
  Gross realized gains$$17 $
  Gross realized losses$(8,705)$(80)$(17)
Sale of equity securities: 1
Sales proceeds$2,807 $— $— 
Gross realized gain$2,807 $— $— 
1 Refer to VISA Inc. Class B Common Stock section below for more information.

The reported values of pledged investment securities are shown in the following table.
(in thousands)December 31, 2023December 31, 2022
Pledged to the State of California:
   Secure public deposits in compliance with the Local Agency Security Program$287,436 $231,307 
   Collateral for trust deposits666 669 
   Collateral for Wealth Management and Trust Services checking account562 564 
Total investment securities pledged to the State of California288,664 232,540 
Bankruptcy trustee deposits pledged with Federal Reserve Bank1,151 1,686 
Pledged to FHLB Securities-Backed Credit Program383,484 — 
Pledged to the Federal Reserve "BTFP"265,660 — 
Total pledged investment securities$938,959 $234,226 
There were 313 and 407 securities in unrealized loss positions at December 31, 2023 and 2022, respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below.
December 31, 2023< 12 continuous months≥ 12 continuous monthsTotal securities
 in a loss position
(in thousands)Fair valueUnrealized lossFair valueUnrealized lossFair valueUnrealized loss
Held-to-maturity:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$— $— $261,865 $(44,396)$261,865 $(44,396)
CMOs issued by FHLMC8,662 (21)188,657 (24,848)197,319 (24,869)
CMOs issued by FNMA42,474 (411)54,249 (4,368)96,723 (4,779)
CMOs issued by GNMA10,988 (244)34,783 (4,991)45,771 (5,235)
SBA-backed securities— — 1,763 (90)1,763 (90)
Debentures of government-sponsored agencies— — 124,132 (21,994)124,132 (21,994)
Obligations of state and political subdivisions— — 44,437 (7,884)44,437 (7,884)
Corporate bonds— — 28,804 (1,196)28,804 (1,196)
Total held-to-maturity$62,124 $(676)$738,690 $(109,767)$800,814 $(110,443)
Available-for-sale:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$— $— $72,146 $(9,516)$72,146 $(9,516)
CMOs issued by FHLMC1,235 (7)240,414 (24,751)241,649 (24,758)
CMOs issued by FNMA— — 21,272 (2,715)21,272 (2,715)
CMOs issued by GNMA— — 17,128 (2,878)17,128 (2,878)
SBA-backed securities— — 19,471 (1,655)19,471 (1,655)
Debentures of government-sponsored agencies— — 66,862 (7,037)66,862 (7,037)
U.S. Treasury securities— — 10,623 (1,300)10,623 (1,300)
Obligations of state and political subdivisions666 (1)90,655 (10,320)91,321 (10,321)
Corporate bonds— — 10,718 (1,274)10,718 (1,274)
Asset-backed securities— — — — — — 
Total available-for-sale$1,901 $(8)$549,289 $(61,446)$551,190 $(61,454)
Total securities at a loss position$64,025 $(684)$1,287,979 $(171,213)$1,352,004 $(171,897)
December 31, 2022< 12 continuous months> 12 continuous monthsTotal securities
 in a loss position
(in thousands)Fair valueUnrealized lossFair valueUnrealized lossFair valueUnrealized loss
Held-to-maturity:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$62,627 $(5,960)$218,507 $(44,187)$281,134 $(50,147)
CMOs issued by FHLMC78,144 (5,874)113,796 (23,629)191,940 (29,503)
CMOs issued by FNMA106,485 (5,419)— — 106,485 (5,419)
CMOs issued by GNMA27,570 (1,676)10,331 (1,400)37,901 (3,076)
SBA-backed securities2,239 (133)— — 2,239 (133)
Debentures of government-sponsored agencies38,645 (2,530)80,711 (23,937)119,356 (26,467)
Obligations of state and political subdivisions15,155 (589)36,603 (10,152)51,758 (10,741)
Corporate bonds28,448 (1,552)— — 28,448 (1,552)
Total held-to-maturity$359,313 $(23,733)$459,948 $(103,305)$819,261 $(127,038)
Available-for-sale:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$44,630 $(4,501)$52,235 $(7,632)$96,865 $(12,133)
CMOs issued by FHLMC169,760 (15,144)143,995 (18,538)313,755 (33,682)
CMOs issued by GNMA4,790 (235)27,529 (3,617)32,319 (3,852)
CMOs issued by FNMA8,214 (374)23,612 (2,922)31,826 (3,296)
SBA-backed securities37,845 (3,228)6,133 (143)43,978 (3,371)
Debentures of government- sponsored agencies19,054 (946)116,052 (13,062)135,106 (14,008)
U.S. Treasury securities— — 10,269 (1,635)10,269 (1,635)
Obligations of state and political subdivisions70,402 (9,459)28,711 (5,302)99,113 (14,761)
Corporate bonds— — 33,276 (3,714)33,276 (3,714)
Asset-backed securities— — 1,462 (91)1,462 (91)
Total available-for-sale$354,695 $(33,887)$443,274 $(56,656)$797,969 $(90,543)
Total$714,008 $(57,620)$903,222 $(159,961)$1,617,230 $(217,581)
 
As of December 31, 2023, the investment portfolio included 306 investment securities that had been in a continuous loss position for twelve months or more and 7 investment securities that had been in a loss position for less than twelve months.

Securities issued by government-sponsored agencies, such as FNMA and FHLMC, usually have implicit credit support from the U.S. federal government. However, since 2008, FNMA and FHLMC have been under government conservatorship and, therefore, contractual cash flows for these investments carry explicit guarantees by the U.S. federal government while FNMA and FHLMC remain under conservatorship. Securities issued by the SBA and GNMA have explicit credit guarantees by the U.S. federal government, which protects us from credit losses on the contractual cash flows of the securities.

Our investments in obligations of state and political subdivision bonds are deemed creditworthy after our comprehensive analysis of the issuers' latest financial information, credit ratings by major credit agencies, and/or credit enhancements.
No allowances for credit losses have been recognized on available-for-sale securities in an unrealized loss position, as management does not believe any of the securities are impaired due to reasons of credit quality at either December 31, 2023 or 2022. In addition, for any available-for-sale securities in an unrealized loss position at December 31, 2023 and 2022, the Bank assessed whether it intended to sell the securities, or if it was more likely than not that it would be required to sell the securities before recovery of its amortized cost basis, which would require a write-down to fair value through net income. Because the Bank did not intend to sell those securities that were in an unrealized loss position, and it was not more-likely-than-not that the Bank would be required to sell the securities before recovery of their amortized cost bases, the Bank determined that no write-down was necessary as of the reporting date.
On July 7, 2023, the Bank entered into various interest rate swap agreements with notional values totaling $101.8 million to hedge balance sheet interest rate sensitivity and protect selected securities in its available-for-sale portfolio against changes in fair value related to changes in the benchmark interest rate. For additional details, refer to Note 14, Derivative Financial Instruments and Hedging Activities.

Non-Marketable Securities Included in Other Assets

FHLB Capital Stock

As a member of the FHLB, we are required to maintain a minimum investment in FHLB capital stock as determined by the Board of Directors of the FHLB. The minimum investment requirements can increase in the event we increase our 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. We held $16.7 million of FHLB stock included in other assets on the consolidated statements of condition at both December 31, 2023 and 2022. 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 our analysis of FHLB’s financial condition and certain qualitative factors, we determined that the FHLB stock was not impaired at December 31, 2023 or 2022.  On February 21, 2024, FHLB announced a cash dividend for the fourth quarter of 2023 at an annualized dividend rate of 8.75% to be distributed in mid-March 2024. Cash dividends paid on FHLB capital stock are recorded as non-interest income.

Visa Inc. Class B Common Stock

As a member bank of Visa U.S.A., we held 10,439 shares of Visa Inc. Class B common stock as of December 31, 2022. These shares had a carrying value of zero because they lacked a readily determinable fair value due to the restriction from resale to non-member banks of Visa U.S.A. until their conversion into Class A (voting) shares upon the termination of Visa Inc.'s Covered Litigation, and uncertainty about the conversion rate to Class A shares. On July 13, 2023, the Bank sold the entirety of its remaining investment in Visa Inc. Class B restricted common stock for a $2.8 million gain.

For further information, refer to Note 12, Commitments and Contingencies.

Low Income Housing Tax Credits

We invest in low-income housing tax credit funds as a limited partner, which totaled $2.0 million and $2.5 million recorded in other assets as of December 31, 2023 and 2022, respectively. In 2023, we recognized $600 thousand of low income housing tax credits and other tax benefits, offset by $503 thousand of amortization expense for low-income housing tax credit investments, as a component of income tax expense. As of December 31, 2023, our unfunded commitments for these low-income housing tax credit funds totaled $344 thousand. We did not recognize any impairment losses on these low-income housing tax credit investments during 2023 or 2022, as the value of the future tax benefits exceeds the carrying value of the investments.
v3.24.0.1
Loans and Allowance for Credit Losses on Loans
12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Loans and Allowance for Credit Losses on Loans Loans and Allowance for Credit Losses on Loans
The following table presents the amortized cost of loans by portfolio class as of December 31, 2023 and 2022.
December 31,
(in thousands)20232022
Commercial and industrial$153,750 $173,547 
Real estate:
  Commercial owner-occupied333,181 354,877 
  Commercial non-owner occupied
1,219,385 1,191,889 
  Construction99,164 114,373 
  Home equity82,087 88,748 
  Other residential118,508 112,123 
Installment and other consumer loans67,645 56,989 
Total loans, at amortized cost 1
2,073,720 2,092,546 
Allowance for credit losses on loans(25,172)(22,983)
Total loans, net of allowance for credit losses on loans$2,048,548 $2,069,563 
1 Amortized cost includes net deferred loan origination costs of $2.7 million and $1.8 million at December 31, 2023 and 2022, respectively. Amounts are also net of unrecognized purchase discounts of $2.0 million and $2.6 million at December 31, 2023 and 2022, respectively. Amortized cost excludes accrued interest, which totaled $6.6 million and $6.1 million at December 31, 2023 and 2022, respectively, and is included in interest receivable and other assets in the consolidated statements of condition.

Lending Risks

Concentrations of Credit: Virtually all of our loans are from customers located in Northern California. Approximately 90% of total loans were secured by real estate at both December 31, 2023 and 2022. At December 31, 2023 and 2022, 75% and 74%, respectively, of our loans were for commercial real estate, the majority of which were secured by real estate located in Marin, Sonoma, San Francisco, Napa, Alameda, Sacramento, and Contra Costa counties (California).

Commercial and Industrial Loans: Commercial loans are generally made to established small and mid-sized businesses to provide financing for their growth and working capital needs, equipment purchases and acquisitions.  Management examines historical, current, and projected cash flows to determine the ability of the borrower to repay obligations as agreed. Commercial loans are made based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral and guarantor support. The cash flows of borrowers, however, may not occur as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed, such as accounts receivable and inventory, and typically include personal guarantees. We target stable businesses with guarantors who provide additional sources of repayment and have proven to be resilient in periods of economic stress.  A weakened economy, and the resultant decreased consumer and/or business spending, may have an effect on the credit quality of commercial loans.

Commercial Real Estate Loans: Commercial real estate loans, which include income producing investment properties and owner-occupied real estate used for business purposes, are subject to underwriting standards and processes similar to those for commercial loans discussed above. We underwrite these loans to be repaid from cash flow from either the business or investment property and supported by real property collateral. Underwriting standards for commercial real estate loans include, but are not limited to, debt coverage and loan-to-value ratios. Furthermore, a large majority of our loans are guaranteed by the owners of the properties. Conditions in the real estate markets or a downturn in the general economy may adversely affect our commercial real estate loans. In the event of a vacancy, we expect guarantors to carry the loans until they find a replacement tenant.  The owner's substantial equity investment provides a strong economic incentive to continue to support their commercial real estate projects. As such, we have generally experienced a relatively low level of losses and delinquencies in this portfolio.

Construction Loans: Construction loans are generally made to developers and builders to finance construction, renovation and occasionally land acquisitions in anticipation of near-term development. Construction loans include interest reserves that are used for the payment of interest during the development and marketing periods and are capitalized as part of the loan balance. When a construction loan is placed on nonaccrual status before the
depletion of the interest reserve, we apply the interest funded by the interest reserve against the loan's principal balance. These loans are underwritten after an evaluation of the borrower's financial strength, reputation, prior track record, and independent appraisals. We monitor all construction projects to determine whether they are on schedule, completed as planned and in accordance with the approved construction budgets. Significant events can affect the construction industry, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes. Estimates of construction costs and value associated with the completed project may be inaccurate. Repayment of construction loans is largely dependent on the ultimate success of the project.

Consumer Loans: Consumer loans primarily consist of home equity lines of credit, other residential loans, floating homes, and indirect luxury auto loans, along with a small number of installment loans. Our other residential loans include tenancy-in-common fractional interest loans ("TIC") located almost entirely in San Francisco County. We originate consumer loans utilizing credit score information, debt-to-income ratio, and loan-to-value ratio analysis. Diversification among consumer loan types, coupled with relatively small loan amounts that are spread across many individual borrowers, mitigates risk. We do not originate sub-prime residential mortgage loans, nor is it our practice to underwrite loans commonly referred to as "Alt-A mortgages," the characteristics of which are reduced documentation, borrowers with low FICO scores, or collateral with high loan-to-value ratios.

Credit Quality Indicators
 
We use a risk rating system to evaluate asset quality, and to identify and monitor credit risk in individual loans, and in the loan portfolio. Our definitions of “Special Mention” risk graded loans, or worse, are consistent with those used by the Federal Deposit Insurance Corporation ("FDIC").  Our internally assigned grades are as follows:
 
Pass and Watch: Loans to borrowers of acceptable or better credit quality. 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 Bank’s policy regarding debt-service-coverage ratios.  These borrowers are capable of sustaining normal economic, market or operational setbacks without significant financial consequences.  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 whose marketability is more uncertain. This category also includes “Watch” loans, where the primary source of repayment has been delayed. The “Watch” risk rating is intended to be a transitional grade, with either an upgrade or downgrade within a reasonable period.
 
Special Mention: Potential weaknesses that deserve close attention. If left uncorrected, those potential weaknesses may result in deterioration of the payment prospects for the asset. Special Mention assets do not present sufficient risk to warrant adverse classification.
 
Substandard: Inadequately protected by either the current sound worth and paying capacity of the obligor or the collateral pledged, if any. A Substandard asset has well-defined weaknesses that jeopardize the liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if such weaknesses or deficiencies are not corrected. Well-defined weaknesses include adverse trends or developments in the borrower’s financial condition, managerial weaknesses, and/or significant collateral deficiencies.
 
Doubtful: Critical weaknesses that make collection or liquidation in full improbable. There may be specific pending events that work to strengthen the asset; however, the amount or timing of the loss may not be determinable. Pending events generally occur within one year of the asset being classified as Doubtful. Examples include: merger, acquisition, or liquidation; capital injection; guarantee; perfecting liens on additional collateral; and refinancing. Such loans are placed on non-accrual status and are usually collateral-dependent.

We regularly review our credits for the accuracy of risk grades whenever we receive new information and at each quarterly and year-end reporting period. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk and complexity. In addition, investor commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We review home
equity and other consumer loans based on delinquency. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly.

The following tables present the loan portfolio by loan portfolio class, origination/renewal year and internal risk rating as of December 31, 2023 and 2022. The current year vintage table reflects gross charge-offs by portfolio class and year of origination. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to perm loans, are presented by year of origination.
(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
December 31, 202320232022202120202019PriorTotal
Commercial and industrial:
Pass and Watch$25,615 $9,187 $2,970 $3,718 $15,128 $21,004 $62,486 $140,108 
Special Mention— — — — 334 — 9,300 9,634 
Substandard— — — — 1,311 2,697 — 4,008 
Total commercial and industrial$25,615 $9,187 $2,970 $3,718 $16,773 $23,701 $71,786 $153,750 
Gross current period charge-offs$— $— $— $(4)$(3)$(3)$(1)$(11)
Commercial real estate, owner-occupied:
Pass and Watch$13,128 $41,808 $49,887 $37,708 $40,994 $114,018 $56 $297,599 
Special Mention1,431 4,498 15,636 820 286 8,902 — 31,573 
Substandard— 2,231 — — — 1,778 — 4,009 
Total commercial real estate, owner-occupied$14,559 $48,537 $65,523 $38,528 $41,280 $124,698 $56 $333,181 
Gross current period charge-offs$— $— $— $— $(406)$— $— $(406)
Commercial real estate, non-owner occupied:
Pass and Watch$76,718 $172,028 $196,340 $150,831 $139,860 $368,675 $9,832 $1,114,284 
Special Mention— 2,790 9,498 11,776 15,708 41,602 — 81,374 
Substandard878 272 2,204 — — 20,373 — 23,727 
Total commercial real estate, non-owner occupied
$77,596 $175,090 $208,042 $162,607 $155,568 $430,650 $9,832 $1,219,385 
Construction:
Pass and Watch$13,138 $24,403 $19,521 $29,512 $— $— $— $86,574 
Special Mention12,590 — — — — — — 12,590 
Total construction$25,728 $24,403 $19,521 $29,512 $— $— $— $99,164 
Home equity:
Pass and Watch$— $— $— $— $— $734 $80,773 $81,507 
Substandard— — — — — 369 211 580 
Total home equity$— $— $— $— $— $1,103 $80,984 $82,087 
Other residential:
Pass and Watch$17,861 $20,114 $13,390 $25,637 $20,935 $20,571 $— $118,508 
Total other residential$17,861 $20,114 $13,390 $25,637 $20,935 $20,571 $— $118,508 
Installment and other consumer:
Pass and Watch$22,038 $14,528 $10,632 $4,687 $5,300 $9,399 $1,061 $67,645 
Total installment and other consumer$22,038 $14,528 $10,632 $4,687 $5,300 $9,399 $1,061 $67,645 
Gross current period charge-offs$(7)$(6)$(1)$(4)$— $(1)$(5)$(24)
Total loans:
Pass and Watch$168,498 $282,068 $292,740 $252,093 $222,217 $534,401 $154,208 $1,906,225 
Total Special Mention$14,021 $7,288 $25,134 $12,596 $16,328 $50,504 $9,300 $135,171 
Total Substandard$878 $2,503 $2,204 $— $1,311 $25,217 $211 $32,324 
Totals$183,397 $291,859 $320,078 $264,689 $239,856 $610,122 $163,719 $2,073,720 
Total gross current period charge-offs$(7)$(6)$(1)$(8)$(409)$(4)$(6)$(441)
(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
December 31, 202220222021202020192018PriorTotal
Commercial and industrial:
Pass and Watch$15,349 $6,679 $7,603 $19,982 $5,362 $24,954 $84,655 $164,584 
Special Mention275 — — 2,272 3,836 — 402 6,785 
Substandard— — 1,252 — — 625 301 2,178 
Total commercial and industrial$15,624 $6,679 $8,855 $22,254 $9,198 $25,579 $85,358 $173,547 
Commercial real estate, owner-occupied:
Pass and Watch$54,188 $52,080 $40,369 $44,798 $29,856 $104,377 $— $325,668 
Special Mention— 16,199 — 304 5,255 4,493 — 26,251 
Substandard— — — 1,160 — 1,699 — 2,859 
Doubtful— — 99 — — — — 99 
Total commercial real estate, owner-occupied$54,188 $68,279 $40,468 $46,262 $35,111 $110,569 $— $354,877 
Commercial real estate, non-owner occupied:
Pass and Watch$177,822 $211,228 $155,278 $160,670 $129,166 $308,509 $57 $1,142,730 
Special Mention— 1,172 12,097 3,934 678 9,290 — 27,171 
Substandard— 2,264 — — — 19,724 — 21,988 
Total commercial real estate, non-owner occupied
$177,822 $214,664 $167,375 $164,604 $129,844 $337,523 $57 $1,191,889 
Construction:
Pass and Watch$49,262 $19,393 $28,861 $7,745 $9,112 $— $— $114,373 
Total construction$49,262 $19,393 $28,861 $7,745 $9,112 $— $— $114,373 
Home equity:
Pass and Watch$— $— $— $— $— $883 $86,971 $87,854 
Substandard— — — — — 480 414 894 
Total home equity$— $— $— $— $— $1,363 $87,385 $88,748 
Other residential:
Pass and Watch$21,154 $14,547 $29,018 $21,890 $11,064 $14,450 $— $112,123 
Total other residential$21,154 $14,547 $29,018 $21,890 $11,064 $14,450 $— $112,123 
Installment and other consumer:
Pass and Watch$20,054 $13,022 $5,727 $6,492 $4,181 $6,478 $944 $56,898 
Substandard— — — — — 91 — 91 
Total installment and other consumer$20,054 $13,022 $5,727 $6,492 $4,181 $6,569 $944 $56,989 
Total loans:
Pass and Watch$337,829 $316,949 $266,856 $261,577 $188,741 $459,651 $172,627 $2,004,230 
Total Special Mention$275 $17,371 $12,097 $6,510 $9,769 $13,783 $402 $60,207 
Total Substandard$— $2,264 $1,252 $1,160 $— $22,619 $715 $28,010 
Total Doubtful$— $— $99 $— $— $— $— $99 
Totals$338,104 $336,584 $280,304 $269,247 $198,510 $496,053 $173,744 $2,092,546 
The following table shows the amortized cost of loans by portfolio class, payment aging and non-accrual status as of December 31, 2023 and 2022.

Loan Aging Analysis by Portfolio Class
(in thousands)Commercial and industrialCommercial real estate, owner-occupied
Commercial real estate, non-owner occupied
ConstructionHome equityOther residentialInstallment and other consumerTotal
December 31, 2023        
30-59 days past due$2,991 $618 $— $— $43 $83 $195 $3,930 
60-89 days past due69 — 2,204 — — — 2,274 
90 days or more past due 1
1,311 149 — — — — — 1,460 
Total past due4,371 767 2,204 — 43 83 196 7,664 
Current149,379 332,414 1,217,181 99,164 82,044 118,425 67,449 2,066,056 
Total loans 1
$153,750 $333,181 $1,219,385 $99,164 $82,087 $118,508 $67,645 $2,073,720 
Non-accrual loans 2
$4,008 $434 $3,081 $— $469 $— $— $7,992 
Non-accrual loans with no allowance$1,311 $434 $877 $— $469 $— $— $3,091 
December 31, 2022        
30-59 days past due$$— $— $— $319 $93 $$420 
60-89 days past due— — — — 244 — — 244 
90 days or more past due 1
264 — — — 414 — — 678 
Total past due267 — — — 977 93 1,342 
Current173,280 354,877 1,191,889 114,373 87,771 112,030 56,984 2,091,204 
Total loans 1
$173,547 $354,877 $1,191,889 $114,373 $88,748 $112,123 $56,989 $2,092,546 
Non-accrual loans 2
$— $1,563 $— $— $778 $— $91 $2,432 
Non-accrual loans with no allowance$— $1,563 $— $— $778 $— $91 $2,432 
1 There were no non-performing loans past due more than ninety days and accruing interest at December 31, 2023 and 2022.
2 None of the non-accrual loans as of December 31, 2023 or 2022 were earning interest on a cash basis. We recognized no interest income on non-accrual loans in 2023, 2022 or 2021. Accrued interest of $206 thousand and $48 thousand was reversed from interest income for the loans that were placed on non-accrual status in 2023 and 2022, respectively. No interest income was reversed for the single loan that was placed on non-accrual status in 2021.

Collateral Dependent Loans

The following table presents the amortized cost basis of individually analyzed collateral-dependent loans, which were all on non-accrual status, by portfolio class and collateral type as of December 31, 2023 and 2022.
Amortized Cost by Collateral Type
(in thousands)Commercial Real EstateResidential Real EstateOther
Total1
Allowance for Credit Losses
December 31, 2023
Commercial and industrial$1,311 $— $— $1,311 $— 
Commercial real estate, owner-occupied434 — — 434 — 
Commercial real estate, non-owner occupied
3,081 — — 3,081 408 
Home equity— 469 — 469 — 
Total$4,826 $469 $— $5,295 $408 
December 31, 2022
Commercial real estate, owner-occupied$1,563 $— $— $1,563 $— 
Home equity— 778 — 778 — 
Installment and other consumer— — 91 91 — 
Total$1,563 $778 $91 $2,432 $— 
1There were no collateral-dependent residential real estate mortgage loans in process of foreclosure or in substance repossessed at December 31, 2023 and 2022.
The weighted average loan-to-value of collateral-dependent loans was approximately 70% and 42% at December 31, 2023 and 2022, respectively.
Loan Modifications to Borrowers Experiencing Financial Difficulty

We adopted ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023, as described in the Other Recently Adopted Accounting Standards section of Note 1 - Summary of Significant Accounting Policies. The amendments eliminated the accounting guidance for troubled debt restructurings and enhanced disclosures related to certain types of loan modifications for borrowers experiencing financial difficulty, including principal forgiveness, interest rate reductions, other-than-insignificant payment delays, and/or term extensions, which are intended to minimize the economic loss and avoid foreclosure or repossession of collateral.

The following table summarizes the amortized cost of loans as of December 31, 2023 modified for borrowers experiencing financial difficulty during the year ended December 31, 2023 by portfolio class and type of modification granted.
(in thousands)
Term Extension
Percent of Portfolio Class Total
December 31, 2023
Commercial real estate, owner-occupied
$1,431 0.4 %
Commercial real estate, non-owner occupied
878 0.1 %
Total
$2,309 

As of December 31, 2023, there were no unfunded loan commitments for loans that were modified during the year ended December 31, 2023.

The following table summarizes the financial effect of loan modifications presented in the table above during the year ended December 31, 2023 by portfolio class.
(in thousands)Weighted-Average Term Extension (in years)
Year ended December 31, 2023
Commercial real estate, owner-occupied
2.3
Commercial real estate, non-owner occupied
0.5

The loan modifications did not significantly impact the determination of the allowance for credit losses on loans during the year ended December 31, 2023.

The Bank closely monitors the performance of the modified loans to understand the effectiveness of its modification efforts. The following table summarizes the amortized cost and payment status of loans as of December 31, 2023 that were modified during the year ended December 31, 2023 by portfolio class.
(in thousands)
Current
30-59 Days Past Due60-89 Days Past Due
90 Days or More Past Due
Total
Non-Accrual
December 31, 2023
Commercial real estate, owner-occupied
$1,431 $— $— $— $1,431 $— 
Commercial real estate, non-owner occupied
878 — — — 878 878 
Total
$2,309 $— $— $— $2,309 $878 

There were no loans to borrowers experiencing financial difficulty that were modified within the previous twelve months that had subsequently defaulted (i.e., fully or partially charged-off or became 90 days or more past due).
Allocation of the Allowance for Credit Losses on Loans

The following table presents the details of the allowance for credit losses on loans segregated by loan portfolio class as of December 31, 2023 and 2022.

Allocation of the Allowance for Credit Losses on Loans
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
December 31, 2023
        
Modeled expected credit losses$897 $1,270 $7,380 $185 $482 $619 $634 $— $11,467 
Qualitative adjustments622 1,205 6,327 1,647 70 33 342 2,038 12,284 
Specific allocations193 1,226 — — — — 1,421 
Total$1,712 $2,476 $14,933 $1,832 $552 $653 $976 $2,038 $25,172 
December 31, 2022
        
Modeled expected credit losses$1,079 $1,497 $7,937 $453 $504 $571 $610 $— $12,651 
Qualitative adjustments706 990 4,739 1,484 54 24 258 2,068 10,323 
Specific allocations— — — — — — — 
Total$1,794 $2,487 $12,676 $1,937 $558 $595 $868 $2,068 $22,983 

Allowance for Credit Losses on Loans Rollforward

The following table discloses activity in the allowance for credit losses for the periods presented.
Allowance for Credit Losses on Loans Rollforward
(in thousands)Commercial and industrialCommercial real estate, owner-occupied
Commercial real estate, non-owner occupied
ConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
Year ended December 31, 2023
Beginning balance$1,794 $2,487 $12,676 $1,937 $558 $595 $868 $2,068 $22,983 
(Reversal) provision (100)395 2,257 (130)(6)58 131 (30)2,575 
(Charge-offs)(11)(406)— — — — (24)— (441)
Recoveries29 — — 25 — — — 55 
Ending balance$1,712 $2,476 $14,933 $1,832 $552 $653 $976 $2,038 $25,172 
Year ended December 31, 2022
Beginning balance$1,709 $2,776 $12,739 $1,653 $595 $644 $621 $2,286 23,023 
Provision (reversal)72 (289)(63)251 (37)(49)270 (218)(63)
(Charge-offs)(9)— — — — — (23)— (32)
Recoveries22 — — 33 — — — — 55 
Ending balance$1,794 $2,487 $12,676 $1,937 $558 $595 $868 $2,068 $22,983 
Year ended December 31, 2021
Beginning balance$2,530 $2,778 $12,682 $1,557 $738 $998 $291 $1,300 $22,874 
(Reversal) provision (1,240)(561)(476)62 (193)(360)333 986 (1,449)
Initial allowance for PCD loans 1
405 559 533 — — — 1,505 
(Charge-offs)— — — — — — (5)— (5)
Recoveries14 — — 34 50 — — — 98 
Ending balance$1,709 $2,776 $12,739 $1,653 $595 $644 $621 $2,286 $23,023 
1 The initial allowance for purchased credit impaired ("PCD") loans relates to the AMRB merger discussed in Note 18, Merger.

Pledged Loans

Our FHLB line of credit is secured under terms of a blanket collateral agreement by a pledge of certain qualifying loans with unpaid principal balances of $1.288 billion and $1.298 billion at December 31, 2023 and 2022, respectively. In addition, we pledged eligible TIC loans, which totaled $110.4 million and $105.0 million at December 31, 2023 and 2022, respectively, to secure our borrowing capacity with the Federal Reserve Bank ("FRB"). For additional information, see Note 7, Borrowings.
Related Party Loans

The Bank has, and expects to have in the future, banking transactions in the ordinary course of its business with directors, officers, principal shareholders and their businesses or associates. These transactions, including loans, are granted on substantially the same terms, including interest rates and collateral on loans, as those prevailing at the same time for comparable transactions with persons not related to us. Likewise, these transactions do not involve more than the normal risk of collectability or present other unfavorable features.

The following table shows changes in net loans to related parties for each of the three years ended December 31, 2023, 2022 and 2021.
(in thousands)202320222021
Balance at beginning of year$6,445 $7,942 $6,423 
Additions— 1,525 — 
Assumed in the AMRB acquisition— — 4,037 
Repayments(613)(364)(2,518)
Reclassified due to a change in borrower status— (2,658)— 
Balance at end of year$5,832 $6,445 $7,942 
Undisbursed commitments to related parties totaled $212 thousand and $562 thousand as of December 31, 2023 and 2022, respectively.
v3.24.0.1
Bank Premises and Equipment
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Bank Premises and Equipment Bank Premises and Equipment
A summary of bank premises and equipment follows:
December 31,
(in thousands)20232022
Leasehold improvements$16,578 $16,115 
Furniture and equipment11,336 12,762 
Buildings 1,248 1,217 
Land
1,170 1,170 
Finance lease right-of-use assets 1
608 616 
Subtotal30,940 31,880 
Accumulated depreciation and amortization(23,148)(23,746)
Bank premises and equipment, net$7,792 $8,134 
1 See Note 12, Commitments and Contingencies, for more information.
The amount of depreciation and amortization totaled $2.1 million, $1.8 million, and $1.7 million for the years ended December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
Bank Owned Life Insurance
12 Months Ended
Dec. 31, 2023
Insurance [Abstract]  
Bank Owned Life Insurance Bank Owned Life Insurance
We own life insurance policies on the lives of certain current and former officers designated by the Board of Directors to fund our employee benefit programs. Death benefits, including gross amounts under split dollar agreements, were estimated to be $131.8 million as of December 31, 2023. Generally, under split dollar agreements, the benefits to the employees' beneficiaries are limited to each employee's active service period. The investments in BOLI policies are reported at their cash surrender value, net of surrender charges, of $68.1 million and $67.1 million at December 31, 2023 and 2022, respectively. The cash surrender value includes both the original premiums paid for the life insurance policies and the accumulated accretion of policy income since the inception of the policies, net of mortality costs and other fees. Earnings on BOLI totaled $1.8 million, $1.2 million and $2.2 million in 2023, 2022 and 2021, respectively. These earnings included death benefit proceeds in excess of the cash surrender values of the BOLI policies of $313 thousand in 2023, $86 thousand in 2022 and $1.1 million in 2021. We regularly monitor the financial information and credit ratings of our insurance carriers to ensure that they are creditworthy and comply with our policy.
v3.24.0.1
Deposits
12 Months Ended
Dec. 31, 2023
Deposits [Abstract]  
Deposits Deposits
A stratification of time deposits is presented in the following table:

December 31,
(in thousands)20232022
Time deposits of less than or equal to $250 thousand$145,697 $74,421 
Time deposits of more than $250 thousand105,620 44,609 
Total time deposits$251,317 $119,030 

Interest on time deposits was $4.7 million, $323 thousand and $246 thousand in 2023, 2022 and 2021, respectively.

Scheduled maturities of time deposits at December 31, 2023 are as follows:
(in thousands)20242025202620272028ThereafterTotal
Scheduled time deposit maturities$233,726 $6,760 $5,510 $2,705 $2,616 $— $251,317 

As of December 31, 2023, $287.4 million in securities were pledged as collateral for our local agency deposits.

Our deposit portfolio includes deposits offered through the Promontory Interfinancial Network that are comprised of Certificate of Deposit Account Registry Service® ("CDARS") balances included in time deposits and Insured Cash Sweep® ("ICS") balances included in money market deposits. In addition, we offer deposits through Reich & Tang Deposit Networks, LLC, comprised of Demand Deposit MarketplaceSM ("DDM") balances. Through these two networks we are able to offer our customers access to FDIC-insured deposit products in aggregate amounts exceeding current insurance limits. When we place funds through CDARS, ICS and DDM, on behalf of a customer, we have the option of receiving matching deposits through the network's reciprocal deposit program, or placing deposits "one-way" for which we receive no matching deposits. We consider reciprocal deposits to be in-market deposits, as distinguished from traditional out-of-market brokered deposits. The following table shows the composition of our network deposits at December 31, 2023 and 2022.
(in thousands)December 31, 2023December 31, 2022
Reciprocal 1
One-Way 1
Reciprocal 1
One-Way 1
CDARS$46,162 $2,164 $11,031 $2,162 
ICS245,577 — 100,749 — 
DDM132,276 — 62,219 — 
Total network deposits$424,015 $2,164 $173,999 $2,162 
1 Reciprocal deposits are on-balance-sheet while one-way deposits are off-balance-sheet.

The aggregate amount of deposit overdrafts that have been reclassified as loan balances was $320 thousand and $247 thousand at December 31, 2023 and 2022, respectively.

The Bank accepts deposits from shareholders, members of the board of directors, and employees in the normal course of business, and the terms are comparable to those with non-affiliated parties. The total deposits from board directors and their businesses, and executive officers were $23.6 million and $11.2 million at December 31, 2023 and 2022, respectively.
v3.24.0.1
Borrowings and Other Obligations
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Borrowings and Other Obligations Borrowings and Other Obligations
Federal Home Loan Bank: The Bank had lines of credit with the FHLB totaling $1.009 billion and $711.6 million as of December 31, 2023 and 2022, respectively, based on the eligible collateral of certain loans and investment securities.

Federal Funds Lines of Credit: The Bank had unsecured lines of credit with correspondent banks for overnight borrowings totaling $135.0 million and $150.0 million as of December 31, 2023 and 2022, respectively.  In general, interest rates on these lines approximate the federal funds target rate.
Federal Reserve Bank: The Bank had a line of credit with the FRBSF secured by certain residential loans totaling $64.0 million and $58.7 million as of December 31, 2023 and 2022, respectively. In addition, under the Federal Reserve’s Bank Term Funding Program ("BTFP") facility, the Bank could borrow an additional $270.2 million based on the par values of pledged investment securities as of December 31, 2023.

Other Obligations: Finance lease liabilities totaling $298 thousand and $439 thousand at December 31, 2023 and 2022, respectively, are included in borrowings and other obligations in the Consolidated Statements of Condition. Refer to Note 12, Commitments and Contingencies, for additional information.

The carrying values, average balances and average rates on borrowings and other obligations as of and for the years ended December 31, 2023, 2022 and 2021 are summarized in the following table.
202320222021
(dollars in thousands)Carrying ValueAverage BalanceAverage RateCarrying ValueAverage BalanceAverage RateCarrying ValueAverage BalanceAverage Rate
FHLB short-term borrowings$— $164,299 5.10 %$112,000 $1,921 4.48 %$— $— — %
FHLB fixed-rate advances— — — %— — — %— 642 1.18 %
Federal funds lines of credit— — — %— — — %— — — %
FRBSF short-term borrowings under the BTFP26,000 56,959 5.30 %— — — %— — — %
Other obligations (finance leases)298 364 1.88 %$439 $374 0.65 %419 250 0.71 %
Total borrowings and other obligations$26,298 $221,623 5.15 %$112,439 $2,295 3.90 %$419 $892 1.08 %
Subordinated Debenture: As part of an acquisition, Bancorp assumed a subordinated debenture with a contractual balance of $4.1 million due to NorCal Community Bancorp Trust II (the "Trust"), established for the sole purpose of issuing trust preferred securities. On March 15, 2021, Bancorp redeemed in full the $2.8 million (book value) subordinated debenture due to the Trust, which had a 251.5% effective rate in 2021, and included accelerated accretion of the $1.3 million remaining purchase discount due to the early redemption.
v3.24.0.1
Stockholders' Equity and Stock Plans
12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Stockholders' Equity and Stock Plans Stockholders' Equity and Stock Plans
Share-Based Awards

The 2020 Director Stock Plan (the "Plan") provides for the payment of director fees in common shares of Bancorp's common stock not to exceed 250,000 shares and a way for directors to purchase shares at fair market value. During 2023, 2022 and 2021 we issued 18,362, 10,145 and 6,443 shares of common stock, respectively, for director payments. As of December 31, 2023, 209,642 shares were available for future director fees and purchases.

The 2017 Employee Stock Purchase Plan ("ESPP") gives our employees an opportunity to purchase Bancorp's common shares through payroll deductions of between one and fifteen percent of their pay. Shares are purchased quarterly at a five percent discount from the closing market price on the last day of the quarter. As of December 31, 2023, 372,923 shares were available for future purchases under the ESPP.

Under the 2017 Equity Plan, the Compensation Committee of the Board of Directors has the discretion to determine, among other things, which employees, advisors and non-employee directors will receive share-based awards, the number and timing of awards, the vesting schedule for each award, and the type of award to be granted. As of December 31, 2023, there were 790,201 shares available for future grants to employees, advisors and non-employee directors. Options are issued at an exercise price equal to the fair value of the stock at the date of grant. Options granted to officers and employees generally vest by one-third on each anniversary of the grant for three years and expire ten years from the grant date. Options granted to non-employee directors vest immediately and expire ten years from the grant date. Stock options and restricted stock may be net settled in a cashless exercise by a reduction in the number of shares otherwise deliverable upon exercise or vesting in satisfaction of the exercise payment and/or applicable tax withholding requirements. Shares withheld under net settlement arrangements are available for future grants. The table below depicts the total number of shares, amount, and weighted average price withheld for cashless exercises in each of the respective years.
December 31, 2023December 31, 2022December 31, 2021
Number of shares withheld3,132 11,505 27,929 
Total amount withheld (in thousands)$86 $393 $1,085 
Weighted-average price$27.57 $34.13 $38.85 

Performance-based stock awards (restricted stock) are issued to a selected group of employees under the 2017 Equity Plan. Stock award vesting is contingent upon the achievement of pre-established long-term performance goals set by the Compensation Committee of the Board of Directors. Performance is measured over a three-year period and cliff vested. These performance-based stock awards were granted at a maximum opportunity level, and based on the achievement of the pre-established goals, the actual payouts can range from 0% to 200% of the target award. For performance-based stock awards, an estimate is made of the number of shares expected to vest based on the probability that the performance criteria will be met to determine the amount of compensation expense to be recognized. The estimate is re-evaluated quarterly, and total compensation expense is adjusted for any change in the current period.

A summary of stock option activity for the years ended December 31, 2023, 2022, and 2021 is presented in the following table. The intrinsic value of options outstanding and exercisable is calculated as the number of in-the-money options times the difference between the market price of our stock and the exercise prices of the in-the-money options as of each year-end period presented.
Number of SharesWeighted Average Exercise Price Aggregate Intrinsic Value
(in thousands)
Weighted Average Grant-Date Fair ValueWeighted Average Remaining Contractual Term
(in years)
Options outstanding at December 31, 2020
371,584 $29.92 $2,262 5.12
Granted55,861 36.39 8.84 
Cancelled, expired or forfeited(2,008)42.50 
Exercised(60,056)23.01 885 
Options outstanding at December 31, 2021
365,381 31.97 2,326 5.57
Exercisable (vested) at December 31, 2021
315,744 30.85 2,264 5.15
Options outstanding at December 31, 2021
365,381 31.97 2,326 5.57
Granted39,094 34.16 8.49 
Cancelled, expired or forfeited(23,760)37.48 
Exercised(51,010)23.01 617 
Options outstanding at December 31, 2022
329,705 33.22 813 5.59
Exercisable (vested) at December 31, 2022
287,228 32.81 813 5.15
Options outstanding at December 31, 2022
329,705 33.22 813 5.59
Granted10,040 32.54 8.49 
Cancelled, expired or forfeited(23,804)35.06 
Exercised(12,164)20.25 88 
Options outstanding at December 31, 2023
303,777 33.22 4.86
Exercisable (vested) at December 31, 2023
283,578 33.46 4.65

A summary of the options outstanding and exercisable by price range as of December 31, 2023 is presented in the following table:
Stock Options Outstanding as of December 31, 2023
 Stock Options Exercisable as of December 31, 2023
Range of Exercise PricesStock Options OutstandingRemaining Contractual Life (in years)Weighted Average Exercise PriceStock Options ExercisableWeighted Average Exercise Price
$10.00 - $20.00
402 3.1$19.96 402 $19.96 
$20.01 - $30.00
73,080 1.524.6473,080 24.64
$30.01 - $40.00
171,457 6.034.48151,258 34.39
$40.01 - $50.00
58,838 5.642.1358,838 42.13
303,777 283,578 
The following table summarizes non-vested restricted stock awards and changes during the years ended December 31, 2023, 2022, and 2021.
Number of SharesWeighted Average Grant-Date Fair Value
Non-vested awards at December 31, 2020
61,328 $39.50 
Granted30,742 38.00 
Vested(26,392)36.81 
Cancelled or forfeited(3,848)33.96 
Non-vested awards at December 31, 2021
61,830 40.25 
Granted46,672 34.03 
Vested(12,444)41.49 
Cancelled or forfeited(13,692)41.80 
Non-vested awards at December 31, 2022
82,366 36.28 
Granted61,978 27.10 
Vested(15,768)36.24 
Cancelled or forfeited(21,024)36.86 
Non-vested awards at December 31, 2023
107,552 30.88 

We determine the fair value of stock options at the grant date using the Black-Scholes pricing model that takes into account the stock price at the grant date, exercise price, and the following assumptions (weighted-average shown).
Years ended December 31,
202320222021
Risk-free interest rate3.94 %1.86 %0.98 %
Expected dividend yield on common stock3.07 %2.85 %2.57 %
Expected life in years5.06.06.1
Expected price volatility34.68 %33.44 %33.12 %

The fair value of stock options as of the grant date is recorded as stock-based compensation expense in the consolidated statements of comprehensive income (loss) over the requisite service period, which is generally the vesting period, with a corresponding increase in common stock. Stock-based compensation also includes compensation expense related to the issuance of restricted stock awards. The grant-date fair value of the restricted stock awards, which equals the grant date price, is recorded as compensation expense over the requisite service period with a corresponding increase in common stock as the shares vest. Stock options and restricted stock awards issued include a retirement eligibility clause whereby the requisite service period is satisfied at the retirement eligibility date. For those awards, we accelerate the recording of stock-based compensation when the award holder is eligible to retire. However, retirement eligibility does not affect the vesting of restricted stock or the exercisability of the stock options, which are based on the scheduled vesting period. Total compensation expense for stock options and restricted stock awards was $522 thousand, $962 thousand, and $972 thousand during 2023, 2022, and 2021, respectively, and the total recognized deferred tax benefits related thereto were $146 thousand, $257 thousand, and $213 thousand, respectively.

As of December 31, 2023, there was $1.3 million of total unrecognized compensation expense related to non-vested stock options and restricted stock awards, which is expected to be recognized over a weighted-average period of approximately 2.2 years. The total grant-date fair value of stock options vested during the years ended December 31, 2023, 2022, and 2021 was $255 thousand, $356 thousand, and $514 thousand, respectively. The total grant-date fair value of restricted stock awards vested during 2023, 2022, and 2021 was $428 thousand, $431 thousand, and $1.0 million, respectively.

We record excess tax benefits (deficiencies) resulting from the exercise of non-qualified stock options, the disqualifying disposition of incentive stock options and vesting of restricted stock awards as income tax benefits (expense) in the consolidated statements of comprehensive income (loss), with a corresponding decrease (increase) to current taxes payable. In 2023, 2022, and 2021 we recognized $2 thousand, $3 thousand, and $87 thousand, respectively, in excess tax benefits recorded as a reduction to income tax expense related to these
types of transactions. The tax benefits realized from disqualifying dispositions of incentive stock options were recognized in tax expense to the extent of the book compensation cost recorded.

Dividends
 
Presented below is a summary of cash dividends paid in 2023, 2022 and 2021 to common shareholders, recorded as a reduction from retained earnings. On January 25, 2024, the Board of Directors declared a $0.25 per share cash dividend, paid on February 15, 2024 to the shareholders of record at the close of business on February 8, 2024.
 Years ended December 31,
(in thousands except per share data)202320222021
Cash dividends to common stockholders$16,106 $15,673 $13,107 
Cash dividends per common share$1.00 $0.98 $0.94 
 
Holders of unvested restricted stock awards are entitled to dividends at the same per-share ratio as holders of common stock. Tax benefits for dividends paid on unvested restricted stock awards are recorded as tax benefits in the consolidated statements of comprehensive income (loss) with a corresponding decrease to current taxes payable. Dividends on forfeited awards are included in stock-based compensation expense.

Under the California Corporations Code, payment of dividends by Bancorp to its shareholders is restricted to the amount of retained earnings immediately prior to the distribution or the amount of assets that exceeds the total liabilities immediately after the distribution. As of December 31, 2023, Bancorp's retained earnings and total assets that exceeded total liabilities were $274.6 million and $439.1 million, respectively.

Under the California Financial Code, payment of dividends by the Bank to Bancorp is restricted to the lesser of retained earnings or the amount of undistributed net profits of the Bank from the three most recent fiscal years. Under this restriction, approximately $6.1 million of the Bank's retained earnings balance was available for payment of dividends to Bancorp as of December 31, 2023. Bancorp held $7.2 million in cash as of December 31, 2023.

Share Repurchase Program

On July 16, 2021, Bancorp Board of Directors approved a share repurchase program under which Bancorp could repurchase up to $25.0 million of its outstanding common stock through July 31, 2023. On October 22, 2021, Bancorp's Board of Directors approved an amendment to the share repurchase program, which increased the total authorization from $25.0 million to $57.0 million and left the expiration date unchanged. The last activity under the program was in the first quarter of 2022 when Bancorp repurchased 23,275 shares totaling $877 thousand.

On July 21, 2023, the Board of Directors approved the adoption of Bancorp's new share repurchase program, which replaced the existing program that expired on July 31, 2023, for up to $25.0 million and expires on July 31, 2025. There were no repurchases under this program in 2023.

Under the share repurchase program, Bancorp may purchase shares of its common stock through various means, such as open market transactions, including block purchases, and privately negotiated transactions. The number of shares repurchased and the timing, manner, price and amount of any repurchases will be determined at Bancorp's discretion. Factors include, but are not limited to, stock price, trading volume and general market conditions, along with Bancorp’s general business conditions. The program may be suspended or discontinued at any time and does not obligate Bancorp to acquire any specific number of shares of its common stock.

As part of the share repurchase program, Bancorp entered into a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The 10b5-1 trading plan permits common stock to be repurchased at times that might otherwise be prohibited under insider trading laws or self-imposed trading restrictions. The 10b5-1 trading plan is administered by an independent broker and is subject to price, market volume and timing restrictions.
v3.24.0.1
Fair Value of Assets and Liabilities
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities
Fair Value Hierarchy and Fair Value Measurement
 
We group our assets and liabilities that are measured at fair value into three levels within the fair value hierarchy, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:
 
Level 1: Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.
 
Level 2: Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data.
 
Level 3: Valuations are based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Values are determined using pricing models and discounted cash flow models and may include significant management judgment and estimation.

Transfers between levels of the fair value hierarchy are recognized through our monthly and/or quarterly valuation process in the reporting period during which the event or circumstances that caused the transfer occurred. No such transfers occurred in the years presented.

The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis.
(in thousands)
 
Description of Financial Instruments
Carrying ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Measurement Categories: Changes in Fair Value Recorded In1
December 31, 2023    
Securities available for sale:    
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies$352,472 $— $352,472 $— OCI
SBA-backed securities$19,471 $— $19,471 $— OCI
Debentures of government sponsored agencies$66,862 $— $66,862 $— OCI
U.S. Treasury securities$10,623 $10,623 $— $— OCI
Obligations of state and political subdivisions$91,882 $— $91,882 $— OCI
Corporate bonds$10,718 $— $10,718 $— OCI
Derivative financial assets (interest rate contracts)$287 $— $287 $— NI
Derivative financial liabilities (interest rate contracts)$1,361 $— $1,361 $— NI
December 31, 2022    
Securities available for sale:   
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies$475,505 $— $475,505 $— OCI
SBA-backed securities$44,355 $— $44,355 $— OCI
Debentures of government sponsored agencies$135,106 $— $135,106 $— OCI
U.S. Treasury securities$10,269 $10,269 $— $— OCI
Obligations of state and political subdivisions$102,123 $— $102,123 $— OCI
Corporate bonds$33,276 $— $33,276 $— OCI
Asset-backed securities$1,462 $— $1,462 $— OCI
Derivative financial assets (interest rate contracts)$602 $— $602 $— NI
 1Other comprehensive income (loss) ("OCI") or net income ("NI").
Available-for-sale securities are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1) are used to determine the fair value of available-for-sale securities. Level 1 securities include U.S.
Treasury securities. If quoted market prices are not available, we obtain pricing information from a reputable third-party service provider, who may utilize valuation techniques that use current market-based or independently sourced parameters, such as bid/ask prices, dealer-quoted prices, interest rates, benchmark yield curves, prepayment speeds, probability of default, loss severity and credit spreads (Level 2).   Level 2 securities include asset-backed securities, obligations of state and political subdivisions, U.S. agencies or government-sponsored agencies' debt securities, mortgage-backed securities, government agency-issued securities, and corporate bonds. As of December 31, 2023 and 2022, there were no Level 3 securities.

Held-to-maturity securities may be subject to an allowance for credit losses as a result of our evaluation of expected losses due to credit quality factors. We did not record any credit loss expense on held-to-maturity securities during 2023 or 2022. The fair value of held-to-maturity securities is determined using the same techniques discussed above for available-for-sale securities.

On a recurring basis, derivative financial instruments are recorded at fair value, which is based on the income approach using observable Level 2 market inputs, reflecting market expectations of future interest rates as of the measurement date.  Standard valuation techniques are used to calculate the present value of the future expected cash flows assuming an orderly transaction. Valuation adjustments may be made to reflect both our own credit risk and the counterparties’ credit risk in determining the fair value of the derivatives. These unobservable inputs are not considered significant inputs to the fair value measurement overall. Level 2 inputs for the valuations are limited to observable market prices for Secured Overnight Financing Rate ("SOFR") and Overnight Index Swap ("OIS") rates (for the very short term), quoted prices for SOFR futures contracts, observable market prices for SOFR and OIS swap rates, and one-month and three-month SOFR basis spreads at commonly quoted intervals.   Mid-market pricing of the inputs is used as a practical expedient in fair value measurements.  We project spot rates at reset days specified by each swap contract to determine future cash flows, then discount to present value using OIS curves as of the measurement date.  When the value of any collateral placed with counterparties is less than the interest rate derivative liability, a credit valuation adjustment ("CVA") is applied to reflect the credit risk we pose to counterparties.  We have used the spread between the Standard & Poor's BBB rated U.S. Bank Composite rate and SOFR for the closest maturity term corresponding to the duration of the swaps to derive the CVA. Because there is little to no counterparty risk, we did not incorporate credit adjustments from our assessment of the counterparty credit risk in determining fair value. For further discussion on our methodology for valuing our derivative financial instruments, refer to Note 9, Derivative Financial Instruments and Hedging Activities.

Certain financial assets may be measured at fair value on a non-recurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as individually analyzed loans that are collateral dependent and other real estate owned ("OREO").

OREO is classified as Level 3 and represents collateral acquired through foreclosure and is initially recorded at fair value as established by a current appraisal of the collateral. Subsequent to foreclosure, OREO is carried at the lower of cost or fair value, less estimated costs to sell. On July 12, 2023, the Bank completed the sale of its only OREO property.

The following table presents the carrying value of assets measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of December 31, 2023 and 2022.
(in thousands)Carrying ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs 
(Level 3)
December 31, 2023
Other real estate owned$— $— $— $— 
December 31, 2022
Other real estate owned$455 $— $— $455 
Disclosures about Fair Value of Financial Instruments

The table below is a summary of fair value estimates for financial instruments as of December 31, 2023 and 2022, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI"), lease obligations and non-maturity deposit liabilities. Additionally, we held shares of Federal Home Loan Bank ("FHLB") of San Francisco stock at cost as of December 31, 2023 and 2022, and Visa Inc. Class B common stock with no carrying value as of December 31, 2022, which was sold entirely in July of 2023. There were no impairments or changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer as of December 31, 2023 and 2022. See further discussion on values within Note 2, Investment Securities, above.
 December 31, 2023December 31, 2022
(in thousands)Carrying AmountsFair ValueFair Value HierarchyCarrying AmountsFair ValueFair Value Hierarchy
Financial assets (recorded at amortized cost)   
Cash and cash equivalents$30,453 $30,453 Level 1$45,424 $45,424 Level 1
Investment securities held-to-maturity925,198 814,830 Level 2972,207 845,239 Level 2
Loans, net of allowance for credit losses2,048,548 1,939,702 Level 32,069,563 1,993,866 Level 3
Interest receivable12,752 12,752 Level 213,069 13,069 Level 2
Financial liabilities (recorded at amortized cost)   
Time deposits251,317 252,824 Level 2119,030 118,333 Level 2
Federal Home Loan Bank overnight borrowings
— — 
Level 1
112,000 112,000 
Level 1
FRBSF short-term borrowings under the BTFP
26,000 25,998 Level 2— — Level 2
Interest payable2,752 2,752 Level 275 75 Level 2
The fair value of loans is based on exit price techniques and obtained from an independent third-party that uses its proprietary valuation model and methodology and may differ from the actual price from a prospective buyer. The discounted cash flow valuation approach reflects key inputs and assumptions that are unobservable, such as loan probability of default, loss given default, prepayment speed, and market discount rates.
The fair value of fixed-rate time deposits is estimated by discounting future contractual cash flows using discount rates that reflect the current observable market rates offered for time deposits of similar remaining maturities.
The value of off-balance-sheet financial instruments is estimated based on the fee income associated with the commitments, which, in the absence of credit exposure, is considered to approximate their settlement value. The fair value of commitment fees was not material as of December 31, 2023 and 2022.
v3.24.0.1
Benefit Plans
12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
Deferred Compensation Plans

We established the Bank of Marin Executive Deferred Compensation Plan, which allows certain key management personnel designated by the Board of Directors of the Bank to defer up to 80% of their salary and 100% of their annual bonus. In addition, we assumed deferred compensation plans for certain members of management and non-employee directors as part of an acquisition in 2021. In 2021, we established a similar Deferred Director Fee Plan, which allows members of the Board of Directors to defer the cash portion of their director compensation. Amounts deferred earn interest equal to the prime rate, as published in the Wall Street Journal, on the first business day of each year, which was 7.50% on January 1, 2023, and 3.25% on January 1, 2022. Benefit payments will generally commence upon separation from service at or after normal retirement age, as elected by the participant.

Our deferred compensation obligations under these plans totaled $6.6 million and $7.1 million at December 31, 2023 and 2022, respectively, and are included in interest payable and other liabilities.
401(k) Defined Contribution Plan

Our 401(k) Defined Contribution Plan (“401(k) Plan”) is available to all regular employees at least eighteen years of age who complete ninety days of service, and participate in the plan beginning on the first day of the calendar quarter that immediately follows the date the participant meets the age and service requirements. Under the 401(k) Plan, employees can defer between 1% and 50% of their eligible compensation, up to the maximum amount allowed by the Internal Revenue Code. The Bank provides an employer-match of 70% of each participant's contribution, with a maximum of $5 thousand per participant per year. Employer matching contributions to the 401(k) Plan vest at a rate of 20% per year over five years. Employer contributions totaled $871 thousand, $949 thousand and $991 thousand for the years ended December 31, 2023, 2022 and 2021, respectively, and are recorded in salaries and employee benefits expense.

Employee Stock Ownership Plan

Our Employee Stock Ownership Plan (“ESOP”) is available to all employees under the same eligibility criteria as the 401(k) Plan; however, employee contributions are not permitted. The Board of Directors determines a specific portion of the Bank's profits to be contributed to the ESOP each year either in common stock or in cash for the purchase of Bancorp stock to be allocated to all eligible employees based on a percentage of their salaries, regardless of whether an employee participates in the 401(k) Plan. For all participants, employer contributions vest over a five-year service period. After five years of service, all future employer contributions vest immediately.

Bancorp issued shares of common stock and contributed them to the ESOP totaling $1.3 million in 2023, $1.2 million in 2022 and $1.3 million in 2021, based on the quoted market price on the date of contribution. Cash dividends paid on Bancorp stock held by the ESOP are used to purchase additional shares in the open market. All shares of Bancorp stock held by the ESOP are included in the calculations of basic and diluted earnings per share. The Company's contributions to the ESOP are included in salaries and benefits expense.

Supplemental Executive Retirement Plans

Supplemental executive retirement plans ("SERPs") have been established for a select group of executive management who, upon retirement, will receive 25% of their estimated salary as salary continuation benefit payments that are fixed between five to fifteen years, depending on the executives' service period.  Each participant is required to participate in the plan for five years before vesting begins. After five years, the participant vests ratably in the benefit over the remaining service period until age 65. As part of previous acquisitions, we assumed SERPs for certain former executive officers and directors. These plans are unfunded and nonqualified for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974.
At December 31, 2023 and 2022, respectively, our total liability under the SERPs was $4.5 million and $4.7 million recorded in interest payable and other liabilities.
v3.24.0.1
Income Taxes
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The current and deferred components of the income tax provision for each of the three years ended December 31 are as follows:
(in thousands)202320222021
Current tax provision
Federal$3,234 $10,670 $6,627 
State2,823 6,687 4,815 
Total current tax provision6,057 17,357 11,442 
Deferred tax provision (benefit)
Federal319 (441)274 
State(235)(58)
Total deferred tax provision (benefit)
84 (434)216 
Total income tax provision$6,141 $16,923 $11,658 
The following table shows the tax effect of our cumulative temporary differences as of December 31:
(in thousands)20232022
Deferred tax assets:
Net unrealized losses on securities available-for-sale$20,993 $29,458 
Allowance for credit losses on loans and unfunded loan commitments7,775 7,229 
Operating and finance lease liabilities6,860 8,002 
Deferred compensation and salary continuation plans3,289 3,481 
Accrued but unpaid expenses1,709 1,751 
Net operating loss carryforwards1,136 1,239 
Fair value adjustment on acquired loans695 905 
Stock-based compensation632 697 
State franchise tax593 1,396 
Depreciation and disposals on premises and equipment179 236 
Other74 194 
  Total gross deferred tax assets43,935 54,588 
Deferred tax liabilities:
Operating and finance lease right-of-use assets(6,092)(7,465)
Deferred loan origination costs and fees(1,435)(1,476)
Core deposit intangible assets(1,113)(1,512)
Other(226)(279)
  Total gross deferred tax liabilities(8,866)(10,732)
Net deferred tax assets$35,069 $43,856 

As of December 31, 2023, California net operating loss carryforwards ("NOLs") of $13.3 million corresponded to the total $1.1 million deferred tax asset above. If not fully utilized, the California NOLs will begin to expire in 2031. Based upon the level of historical taxable income and projections for future taxable income over the periods during which the deferred tax assets are expected to be deductible, management believes it is more likely than not that we will realize the benefit of the remaining deferred tax assets. Accordingly, no valuation allowance has been established as of December 31, 2023 or 2022.

The effective tax rate for 2023, 2022 and 2021 differs from the current federal statutory income tax rate as follows:
202320222021
Federal statutory income tax rate21.0 %21.0 %21.0 %
Increase (decrease) due to:
California franchise tax, net of federal tax benefit7.9 %8.3 %8.4 %
Tax exempt interest on municipal securities and loans(3.1)%(1.9)%(2.5)%
Tax exempt earnings on bank owned life insurance(1.5)%(0.4)%(1.0)%
Non-deductible acquisition related expenses— %— %0.6 %
Non-deductible executive compensation— %— %0.4 %
Low income housing and qualified zone academy bond tax credits(0.6)%(0.2)%(0.4)%
Stock-based compensation and excess tax deficiencies (benefits)0.2 %— %(0.1)%
Other(0.3)%(0.2)%(0.4)%
Effective Tax Rate23.6 %26.6 %26.0 %

Bancorp and the Bank have entered into a tax allocation agreement, which provides that income taxes shall be allocated between the parties on a separate entity basis. The intent of this agreement is that each member of the consolidated group will incur no greater tax liability than it would have incurred on a stand-alone basis.

We file a consolidated return in the U.S. federal tax jurisdiction and a combined return in the State of California tax jurisdiction. There were no ongoing federal or state income tax examinations at the time of the issuance of this report. We are no longer subject to examinations by tax authorities for years before 2020 for federal income tax and before 2019 for California. At December 31, 2023 and 2022, there were no unrecognized tax benefits, and neither the Bank nor Bancorp had accruals for interest and penalties related to unrecognized tax benefits.
v3.24.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases
 
We lease premises under long-term non-cancelable operating leases with remaining terms of approximately 4 months to 18 years, 5 months, most of which include escalation clauses and one or more options to extend the lease term, and some of which contain lease termination clauses. Lease terms may include certain renewal options that were considered reasonably certain to be exercised.

We lease certain equipment under finance leases with initial terms of 3 to 5 years. The equipment finance leases do not contain renewal options, bargain purchase options, or residual value guarantees.

The following table shows the balances of operating and finance lease right-of-use assets and lease liabilities as of December 31, 2023 and 2022.
(in thousands)December 31, 2023December 31, 2022
Operating leases:
Operating lease right-of-use assets$20,316 $24,821 
Operating lease liabilities22,906 26,639 
Finance leases:
Finance lease right-of-use assets608 616 
Accumulated amortization(319)(187)
Finance lease right-of-use assets, net1
$289 $429 
Finance lease liabilities2
$298 $439 
1 Included in premises and equipment in the consolidated statements of condition.
2 Included in borrowings and other obligations in the consolidated statements of condition.

The following table shows supplemental disclosures of noncash investing and financing activities for the years ended December 31, 2023, 2022 and 2021.
(in thousands)202320222021
Right-of-use assets obtained in exchange for operating lease liabilities$437 $6,116 $2,376 
Right-of-use assets obtained in exchange for finance lease liabilities$$151 $444 

The following table shows components of operating and finance lease cost for the years ended December 31, 2023, 2022 and 2021.
(in thousands)202320222021
Operating lease cost1
$5,493 $5,356 $4,823 
Variable lease cost— — — 
Total operating lease cost$5,493 $5,356 $4,823 
Finance lease cost:
Amortization of right-of-use assets2
$147 $127 $96 
Interest on finance lease liabilities3
Total finance lease cost$154 $130 $98 
Total lease cost$5,647 $5,486 $4,921 
1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income (loss).
2 Included in depreciation and amortization in the consolidated statements of comprehensive income (loss).
3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income (loss).

The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of December 31, 2023. Total minimum lease payments do not include future minimum payment obligations of approximately $2.0 million, excluding renewal options, for an operating lease agreement related to an existing retail branch that commenced subsequent to December 31, 2023. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the lease commencement date.
(in thousands)December 31, 2023
YearOperating LeasesFinance Leases
2024$4,753 $155 
20254,112 108 
20263,373 38 
20273,096 
20282,710 — 
Thereafter7,308 — 
Total minimum lease payments25,352 306 
Amounts representing interest (present value discount)(2,446)(8)
Present value of net minimum lease payments (lease liability)$22,906 $298 
Weighted average remaining term (in years)7.32.2
Weighted average discount rate2.40 %2.07 %

Litigation Matters

Bancorp may be subject to legal actions that arise from time to time in the normal course of business. Bancorp's management is not aware of any pending legal proceedings to which either it or the Bank may be a party or has recently been a party that will have a material adverse effect on the financial condition or results of operations of Bancorp or the Bank.

The Bank is responsible for a proportionate share of certain litigation indemnifications provided to Visa U.S.A. ("Visa") by its member banks in connection with Visa's lawsuits related to anti-trust charges and interchange fees ("Covered Litigation"). We sold our remaining shares on July 13, 2023, however, our proportionate share of the litigation indemnification liability does not change or transfer upon the sale of our Class B Visa shares to member banks or, per the terms of the sale, to the recent purchaser of our shares. Visa established an escrow account for the Covered Litigation that it periodically funds, which is expected to cover the settlement payment obligations.

Litigation is ongoing, and until the court approval process is complete, there is no assurance that Visa will resolve the claims as contemplated by the amended class settlement agreement, and additional lawsuits may arise from individual merchants who opted out of the class settlement. However, until the escrow account is fully depleted and the conversion rate of Class B to Class A common stock is reduced to zero, no future cash settlement payments are required by the member banks, such as us, on the Covered Litigation. Therefore, we are not required to record any contingent liabilities for the indemnification related to the Covered Litigation, as we consider the probability of losses to be remote.
v3.24.0.1
Concentrations of Credit Risk
12 Months Ended
Dec. 31, 2023
Risks and Uncertainties [Abstract]  
Concentrations of Credit Risk Concentrations of Credit Risk
Concentration of credit risk is associated with a lack of diversification, such as having substantial investments in a few individual issuers, thereby potentially exposing us to adverse economic, political, regulatory, geographic, industrial or credit developments. Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investment securities and loans.
At times, our cash in correspondent bank accounts may exceed FDIC insured limits. We place cash and cash equivalents with the Federal Reserve Bank and other high credit quality financial institutions, periodically monitor their credit worthiness and limit the amount of credit exposure to any one institution according to regulations.
Concentrations of credit risk with respect to investment securities primarily related to the U.S. government and GSEs, which accounted for $1.272 billion, or 86% of our total investment portfolio at December 31, 2023 and $1.535 billion, or 87% at December 31, 2022. The decrease was mainly due to the sale of $167.4 million and $106.1 million in paydowns of this security type in 2023. The largest security not issued by the U.S. government or a GSE accounted for approximately 1% of our total investment portfolio at both December 31, 2023 and 2022.
We also manage our credit exposure related to our loan portfolio to avoid the risk of undue concentration of credits in a particular industry or geographic location by reducing significant exposure to highly leveraged transactions or to
any individual customer or counterparty, and by obtaining collateral, as appropriate. With the heightened market concern about non-owner-occupied commercial real estate, and in particular the office sector, we continue to maintain diversity among property types and within our geographic footprint. In particular, our office commercial real estate portfolio in the City of San Francisco represented 3% of our total loan portfolio and 6% of our total non-owner-occupied commercial real estate portfolio as of December 31, 2023.
No single borrower relationship accounted for more than 3% of outstanding loan balances at December 31, 2023 or 2022. The largest loan concentration is real estate, which accounted for 90% of our loan portfolio at both December 31, 2023 and 2022.
v3.24.0.1
Derivative Financial Instruments and Hedging Activities
12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Hedging Activities Derivative Financial Instruments and Hedging Activities
The Bank is exposed to certain risks from both its business operations and changes in economic conditions. As part of our asset/liability and interest rate risk management strategy, we may enter into interest rate derivative contracts to modify repricing characteristics of certain of our interest-earning assets and interest-bearing liabilities. The Bank generally designates interest rate hedging agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges.

Our credit exposure, if any, on interest rate swap asset positions is limited to the fair value (net of any collateral pledged to us) and interest payments of all swaps by each counterparty. Conversely, when an interest rate swap is in a liability position exceeding a certain threshold, we may be required to post collateral to the counterparty in an amount determined by the agreements. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values.

On July 7, 2023, the Bank entered into various interest rate swap agreements with notional values totaling $101.8 million split evenly between terms of 2.5 and 3.0 years to hedge balance sheet interest rate sensitivity and protect certain of our fixed rate available-for-sale securities against changes in fair value related to changes in the benchmark interest rate. The interest rate swaps involve the receipt of floating rate interest from a counterparty in exchange for us making fixed-rate interest payments over the lives of the agreements, without the exchange of the underlying notional values. The transactions were designated as partial term fair value hedges and structured such that the changes in the fair value of the interest rate swaps are expected to be perfectly effective in offsetting the changes in the fair value of the hedged items attributable to changes in the SOFR OIS swap rate, the designated benchmark interest rate. Because the hedges met the criteria for using the shortcut method, there is no need to periodically reassess effectiveness during the term of the hedges. For fair value designated hedges, the gains or losses on the hedging instruments as well as the offsetting gains or losses on the hedged items, are recognized in current earnings as their fair values change.

In addition, we had three interest rate swap agreements on certain loans with our customers, which are scheduled to mature at various dates ranging from June 2031 to July 2032. In December 2023, one interest rate swap, scheduled to mature in October 2037, was terminated as the hedged loan was paid off. The loan interest rate swaps were designated as fair value hedges and allowed us to offer long-term fixed-rate loans to customers without assuming the interest rate risk of a long-term asset. Converting our fixed-rate interest payments to floating-rate interest payments, generally benchmarked to the one-month U.S. dollar SOFR index, protects us against changes in the fair value of our loans associated with fluctuating interest rates. The notional amounts of the interest rate contracts are equal to the notional amounts of the hedged loans.

Information on our derivatives follows:
 Asset derivativesLiability derivatives
(in thousands)December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Available-for-sale securities:
Interest rate swaps - notional amount$— $— $101,770 $— 
Interest rate swaps - fair value1
$— $— $1,359 $— 
Loans receivable:
Interest rate contracts - notional amount$6,441 $12,046 $2,157 $— 
Interest rate contracts - fair value1
$287 $602 $$— 
1 Refer to Note 9, Fair Value of Assets and Liabilities, for valuation methodology.
The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of December 31, 2023 and 2022.
Carrying Amounts of Hedged AssetsCumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets
(in thousands)December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Available-for-sale securities 1
$107,181 $— $(1,359)$— 
Loans receivable 2
$8,183 $11,319 $(367)$(726)
1 Carrying value equals the amortized cost basis of the securities underlying the hedge relationship, which is the book value net of the fair value hedge adjustment. Amortized cost excludes accrued interest totaling $222 thousand as of December 31, 2023.
2 Carrying value equals the amortized cost basis of the loans underlying the hedge relationship, which is the loan balance net of deferred loan origination fees and cost and the fair value hedge adjustment. Amortized cost excludes accrued interest, which was not material.

The following table presents the pretax net gains (losses) recognized in interest income related to our fair value hedges for the years presented.
 Years ended December 31,
(in thousands)202320222021
Interest on investment securities 1
Decrease in fair value of interest rate swaps hedging available-for-sale securities$(1,359)$— $— 
Hedged interest earned (paid)367 — — 
Increase in carrying value included in the hedged available-for-sale securities1,359 — — 
Net gain recognized in interest income on investment securities$367 $— $— 
Interest and fees on loans 1
(Decrease) increase in fair value of interest rate swaps hedging loans receivable$(317)$1,687 $827 
Hedged interest earned (paid)268 (143)(369)
Increase (decrease) in carrying value included in the hedged loans359 (1,666)(814)
Decrease in value of yield maintenance agreement(9)(10)(11)
Net gain (loss) recognized in interest income on loans$301 $(132)$(367)
1 Represents the income line item in the statements of comprehensive income (loss) in which the effects of fair value hedges are recorded.

Our derivative transactions with the counterparty are under an International Swaps and Derivative Association (“ISDA”) master agreement that includes “right of set-off” provisions. “Right of set-off” provisions are legally enforceable rights to offset recognized amounts and there may be an intention to settle such amounts on a net basis. We do not offset such financial instruments for financial reporting purposes. Information on financial instruments that are eligible for offset in the consolidated statements of condition follows:

Offsetting of Financial Assets and Derivative Assets
Gross AmountsNet AmountsGross Amounts Not Offset in the Statements of Condition
Gross AmountsOffset in theof Assets Presented
of RecognizedStatements ofin the StatementsFinancialCash Collateral
(in thousands)
Assets 1
Condition
of Condition 1
InstrumentsReceivedNet Amount
December 31, 2023
   Counterparty$287 $— $287 $— $— $287 
Total$287 $ $287 $ $ $287 
December 31, 2022
   Counterparty$602 $— $602 $— $— $602 
Total$602 $ $602 $ $ $602 
Offsetting of Financial Liabilities and Derivative Liabilities
Gross Amounts of Recognized Liabilities 1
Gross Amounts Offset in the Statements of Condition
Net Amounts of Liabilities Presented in the Statements of Condition 1
Gross Amounts Not Offset in the Statements of Condition
Financial InstrumentsCash Collateral Pledged
(in thousands)Net Amount
December 31, 2023
   Counterparty$1,361 $— $1,361 $(287)(330)$744 
Total$1,361 $ $1,361 $(287)$(330)$744 
December 31, 2022
   Counterparty$— $— $— $— — $— 
Total$ $ $ $ $ $ 
1 Amounts exclude accrued interest on swaps.
v3.24.0.1
Regulatory Matters
12 Months Ended
Dec. 31, 2023
Regulatory Assets and Liabilities Disclosure [Abstract]  
Regulatory Matters Regulatory Matters
We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements as set forth in the following tables can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on our consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and the Bank’s prompt corrective action classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors.

Management reviews capital ratios on a regular basis and produces a five-year capital plan semi-annually to ensure that capital exceeds the prescribed regulatory minimums and is adequate to meet our anticipated future needs.  Stress tests are performed on capital ratios and include scenarios such as additional unrealized losses on the investment portfolio, additional deposit growth, loan credit quality deterioration, and potential share repurchases. For all periods presented, the Bank’s ratios exceed the regulatory definition of “well-capitalized” under the regulatory framework for prompt corrective action and Bancorp’s ratios exceed the required minimum ratios to be considered a well-capitalized bank holding company. In addition, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action as of December 31, 2023. There are no conditions or events since that notification that management believes have changed the Bank’s categories and we expect the Bank to remain well capitalized for prompt corrective action purposes.

The Bancorp’s and Bank's capital adequacy ratios as of December 31, 2023 and 2022 are presented in the following tables.
Bancorp Capital Ratios
(dollars in thousands)
Actual
Adequately Capitalized Threshold 1
Threshold to be a Well Capitalized Bank Holding Company
December 31, 2023AmountRatioAmountRatioAmountRatio
Total Capital (to risk-weighted assets)$440,842 16.89 %$274,002 10.50 %$260,954 10.00 %
Tier 1 Capital (to risk-weighted assets)$415,224 15.91 %$221,811 8.50 %$208,763 8.00 %
Tier 1 Leverage Capital (to average assets)$415,224 10.46 %$158,771 4.00 %$198,464 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$415,224 15.91 %$182,668 7.00 %$169,620 6.50 %
December 31, 2022      
Total Capital (to risk-weighted assets)$431,667 15.90 %$285,079 10.50 %$271,504 10.00 %
Tier 1 Capital (to risk-weighted assets)$407,912 15.02 %$230,778 8.50 %$217,203 8.00 %
Tier 1 Leverage Capital (to average assets)$407,912 9.60 %$169,948 4.00 %$212,435 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$407,912 15.02 %$190,053 7.00 %$176,478 6.50 %
Bank Capital Ratios
(dollars in thousands)
Actual
Adequately Capitalized Threshold 1
Threshold to be Well Capitalized under Prompt Corrective Action Provisions
December 31, 2023AmountRatioAmountRatioAmountRatio
Total Capital (to risk-weighted assets)$433,598 16.62 %$273,986 10.50 %$260,939 10.00 %
Tier 1 Capital (to risk-weighted assets)$407,981 15.64 %$221,798 8.50 %$208,751 8.00 %
Tier 1 Leverage Capital (to average assets)$407,981 10.28 %$158,767 4.00 %$198,459 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$407,981 15.64 %$182,657 7.00 %$169,610 6.50 %
December 31, 2022      
Total Capital (to risk-weighted assets)$427,108 15.73 %$285,052 10.50 %$271,478 10.00 %
Tier 1 Capital (to risk-weighted assets)$403,352 14.86 %$230,757 8.50 %$217,183 8.00 %
Tier 1 Leverage Capital (to average assets)$403,352 9.49 %$169,940 4.00 %$212,425 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$403,352 14.86 %$190,035 7.00 %$176,461 6.50 %
1 Except for Tier 1 Leverage Capital, the adequately capitalized thresholds reflect the regulatory minimum plus a 2.5% capital conservation buffer as required under the Basel III Capital Standards in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses.
v3.24.0.1
Financial Instruments with Off-Balance Sheet Risk
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Financial Instruments with Off-Balance Sheet Risk Financial Instruments with Off-Balance Sheet Risk
 
We make commitments to extend credit in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit in the form of loans or through standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because various commitments will expire without being fully drawn, the total commitment amount does not necessarily represent future cash requirements.
 
Our credit loss exposure is equal to the contractual amount of the commitment in the event of nonperformance by the borrower. We use the same credit underwriting criteria for all credit exposure. The amount of collateral obtained, if deemed necessary by us, is based on management's credit evaluation of the borrower. Collateral types pledged may include accounts receivable, inventory, other personal property and real property.

The contractual amount of unfunded loan commitments and standby letters of credit not reflected in the consolidated statements of condition are as follows:
(in thousands)December 31, 2023December 31, 2022
Commercial lines of credit$259,989 $292,204 
Revolving home equity lines218,935 218,907 
Undisbursed construction loans13,943 43,179 
Personal and other lines of credit9,136 10,842 
Standby letters of credit3,147 1,738 
   Total unfunded loan commitments and standby letters of credit$505,150 $566,870 

As of December 31, 2023, approximately 38% of the commitments expire in 2024, 51% expire between 2025 and 2031 and 11% expire thereafter.

We record an allowance for credit losses on unfunded loan commitments at the 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 expected loss rates determined for pooled funded loans. The allowance for credit losses on unfunded commitments totaled $1.1 million and $1.5 million as of December 31, 2023 and 2022, respectively, which is included in interest payable and other liabilities in the consolidated statements of condition.

We recorded reversals of the provision for credit losses on unfunded commitments totaling $342 thousand, $318 thousand and $992 thousand in 2023, 2022, and 2021, respectively. The reversals in 2023 and 2022 were due primarily to decreases in total unfunded loan commitments. The reversal in 2021 was largely due to ongoing improvements in the underlying economic forecasts under the CECL accounting method at the time.
v3.24.0.1
Condensed Bank of Marin Bancorp Parent Only Financial Statements
12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Condensed Bank of Marin Bancorp Parent Only Financial Statements Condensed Bank of Marin Bancorp Parent Only Financial Statements
Presented below is financial information for Bank of Marin Bancorp, parent holding company only.
CONDENSED UNCONSOLIDATED STATEMENTS OF CONDITION
December 31, 2023 and 2022
(in thousands)20232022
Assets
   Cash and due from Bank of Marin$7,189 $4,493 
   Investment in bank subsidiary431,819 407,532 
   Other assets156 255 
     Total assets$439,164 $412,280 
Liabilities and Stockholders' Equity
   Accrued expenses payable$102 $188 
   Other liabilities— — 
     Total liabilities102 188 
   Stockholders' equity439,062 412,092 
     Total liabilities and stockholders' equity$439,164 $412,280 

CONDENSED UNCONSOLIDATED STATEMENTS OF INCOME
Years ended December 31, 2023, 2022 and 2021
(in thousands)202320222021
Income
   Dividends from bank subsidiary$20,000 $16,200 $64,000 
   Miscellaneous income— — — 
     Total income20,000 16,200 64,000 
Expense
   Interest expense— — 1,361 
   Non-interest expense1,705 1,793 4,025 
     Total expense1,705 1,793 5,386 
Income before income taxes and equity in undistributed net income of subsidiary18,295 14,407 58,614 
   Income tax benefit504 530 1,235 
Income before equity in undistributed net income of subsidiary18,799 14,937 59,849 
Earnings of bank subsidiary greater (less) than dividends received from bank subsidiary1,096 31,649 (26,621)
     Net income$19,895 $46,586 $33,228 
CONDENSED UNCONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2023, 2022 and 2021
(in thousands)202320222021
Cash Flows from Operating Activities:
Net income$19,895 $46,586 $33,228 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Earnings of bank subsidiary (greater) less than dividends received from bank subsidiary(1,096)(31,649)26,621 
Accretion of discount on subordinated debenture— — 1,347 
Noncash director compensation expense60 36 35 
Net changes in:
Other assets99 (12)(1,655)
Other liabilities(86)(129)(88)
Net cash provided by operating activities18,872 14,832 59,488 
Cash Flows from Investing Activities:
Capital contribution to bank subsidiary(276)(899)(619)
Net cash used in investing activities(276)(899)(619)
Cash Flows from Financing Activities:
Repayment of subordinated debenture including execution costs— — (4,126)
Restricted stock surrendered for tax withholdings upon vesting(70)(40)(166)
Cash dividends paid on common stock(16,106)(15,673)(13,107)
Stock repurchased, including commissions— (1,250)(40,762)
Proceeds from stock options exercised and stock issued under employee and director stock purchase plans276 899 587 
Net cash used in financing activities(15,900)(16,064)(57,574)
Net increase (decrease) in cash and cash equivalents2,696 (2,131)1,295 
Cash and cash equivalents at beginning of year4,493 6,624 5,329 
Cash and cash equivalents at end of year$7,189 $4,493 $6,624 
Supplemental schedule of noncash investing and financing activities:
Stock issued in payment of director fees$398 $355 $217 
Repurchase of stock not yet settled$— $— $373 
Stock issued to ESOP$1,315 $1,233 $1,330 
v3.24.0.1
Merger
12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Merger Merger
Bancorp completed its merger and acquired all assets and assumed all liabilities of AMRB on August 6, 2021. The merger expanded Bank of Marin's presence throughout the Greater Sacramento, Amador and Sonoma County Regions where AMRB had ten branches. The merger added $898.4 million in total assets, including $297.8 million in investment securities and $419.4 million in loans, and $816.6 million in total liabilities, including $790.0 million in deposits, to Bank of Marin as of the merger date. Bancorp accounted for the merger as a business combination under the acquisition method of accounting. The assets acquired and liabilities assumed, both tangible and intangible, were recorded at their fair values as of the merger date in accordance with ASC 805, Business Combinations.

AMRB's shareholders received 0.575 shares of Bancorp's common stock for each share of AMRB common stock outstanding immediately prior to the Merger resulting in the issuance of 3,441,235 shares of Bancorp common stock. In addition, merger consideration included cash paid for outstanding stock options and cash paid in lieu of fractional shares, as summarized in the following table.
(in thousands)Merger Consideration
Value of common stock consideration paid to shareholders (0.575 fixed exchange ratio, stock price $36.15)
$124,401 
Cash consideration for stock options63
Cash paid in lieu of fractional shares13
Total merger consideration$124,477 
We recorded $42.6 million in goodwill, which represented the excess of the total merger consideration paid of $124.5 million over the fair value of the net assets acquired of $81.9 million. Goodwill mainly reflects the expected value created through the combined operations of AMRB and Bancorp and is evaluated for impairment annually.

Merger-related and conversion costs are recognized as incurred and continue until all systems have been converted and operational functions are fully integrated. Bancorp's pretax merger-related costs reflected in the consolidated statements of comprehensive income (loss) are summarized in the following table.
Years ended December 31,
(in thousands)202320222021
Personnel and severance$— $393 $3,005 
Professional services— 67 1,976 
Data processing— 77 1,127 
Other expense— 321 350 
Total merger-related and conversion costs$— $858 $6,458 
v3.24.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation: The consolidated financial statements include the accounts of Bancorp, a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin, a California state-chartered commercial bank. References to “we,” “our,” “us” mean Bancorp and the Bank that are consolidated for financial reporting purposes. Our accounting and reporting policies conform to U.S. generally accepted accounting principles ("GAAP"), general practice, and regulatory guidance within the banking industry. A summary of our significant policies follows. All material intercompany transactions have been eliminated. We monitor financial performance and evaluate the revenue streams of the various products, services, locations, and operations on a company-wide basis. Accordingly, all of the community banking and wealth management and trust services are considered by management to be aggregated into one reportable operating segment, community banking. We evaluated subsequent events through the date of filing with the Securities and Exchange Commission (“SEC”) and determined there were no subsequent events that required additional recognition or disclosure.
Reclassifications Accounting Changes and Reclassifications: Certain items in prior financial statements have been reclassified to conform to the current presentation, including the reclassification of the provision for credit losses on unfunded commitments in the second quarter of 2021 from non-interest expense to a separate line item under the provision for credit losses on loans in the consolidated statements of comprehensive income (loss).
Recently Adopted and Issued Accounting Standards, Other Recently Adopted Announcements and Accounting Standards Not Yet Effective
Other Recently Adopted Accounting Standards

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendment eliminated the recognition measurement guidance for troubled debt restructured ("TDR") loans and instead enhanced disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. In addition, the amendment required that an entity include in its vintage disclosures the current period gross loan charge-offs by year of origination. We early adopted the current period charge-off disclosures in the first quarter of 2022. We adopted the loan modification provisions as of January 1, 2023 using a modified retrospective method. The cumulative-effect adjustment to retained earnings was considered immaterial. Refer to Note 5, Loans and Allowance for Credit Losses on Loans, for additional information.

In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. Among other things, the ASU renamed the "last-of-layer" method to the "portfolio layer" method and made fair value hedging more accessible for hedge accounting of interest rate risk for portfolios and financial assets. For example, the guidance permits an entity to apply the same portfolio hedging method to both prepayable and non-prepayable financial assets, thereby providing for consistency between accounting for similar hedges. We adopted the amendments on January 1, 2023, which had no effect on our existing hedge accounting, disclosures, financial condition or results of operations.

In March 2020, the FASB issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU are elective and provide optional guidance for a limited period of time to ease the potential burden of accounting for, or recognizing the effects of reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Topic 848 was further amended in January 2021 with ASU No. 2021-01, which provided additional guidance on certain optional expedients and scope of derivative instruments, and in December 2022 with ASU 2022-06, which extended the sunset date of Topic 848 to December 31, 2024 given the UK Financial Conduct Authority ("FCA") March 2021 announcement that the intended cessation date of certain tenors of USD LIBOR would be June 30, 2023. An entity may elect the amendments in these updates at an interim period with adoption methods varying based on transaction type. As of December 31, 2023, we had three interest rate swap contracts with notional values totaling $8.6 million that were indexed to LIBOR, which transitioned to the Secured Overnight
Financing Rate ("SOFR") effective July 1, 2023. The transition to SOFR did not have a material impact to either our financial condition or results of operations.
Accounting Standards Not Yet Effective

In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendment reduces diversity in practice by clarifying that a separate contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. In addition, this ASU provided amended examples to illustrate that a restriction that is a characteristic of the equity security, which market participants would take into account when pricing them, would be considered in measuring fair value. This ASU also introduces new disclosure requirements. The amendments are effective prospectively for years beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements. As discussed in Note 2, Investment Securities, in July 2023 we sold our remaining shares of Visa Inc. Class B restricted common stock. As a result of the sale, this update will not impact our financial condition, results of operations or disclosures.

In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. For public companies, the amendment requires entities to amortize leasehold improvements associated with common control lease arrangements over the useful life of the improvements to the common control group, as opposed to the shorter of the remaining lease term and the useful life of the improvements for all other operating leases. The amendments are effective for years beginning after December 15, 2023, and may be adopted either prospectively or retrospectively. Early adoption is permitted for both interim and annual financial statements. We currently do not have common control lease arrangements, and therefore do not anticipate that the amendments will impact our financial condition and results of operations.

In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. 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 proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the consolidated statements of income as a component of income tax expense (benefit). The amendments will allow entities to elect to account for all other equity investments made primarily for the purpose of receiving income tax credits to using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, when certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023, and may be adopted either on a modified retrospective basis or retrospectively. Other than investments in LIHTC funds, as disclosed in Note 4, Investment Securities, we currently have no other equity investments made primarily for the purpose of receiving income tax credits, and therefore do not anticipate that the amendments will impact our financial condition and results of operations.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, enhanced interim disclosure requirements, clarifying circumstances in which an entity can disclose multiple segment measures of profit or loss, providing new segment disclosure requirements for entities with a single reportable segment, and requiring other disclosures. The amendments are effective for annual reporting periods beginning after December 15, 2023 (i.e., 2024 Form 10-K) and interim periods within fiscal years beginning after December 31, 2024, and shall be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. We currently have only one reportable segment and are evaluating the impact of the amendments on our financial statement disclosures upon adoption.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require disaggregated information about the effective tax rate reconciliation and additional disclosures on reconciling items and taxes paid that meet a quantitative threshold. The amendments are effective for annual reporting periods beginning after December 15, 2024, and may be adopted either prospectively or retrospectively. Early adoption is permitted. We are currently evaluating the impact of the amendments on our financial statement disclosures upon adoption.
Use of Estimates
Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the consolidated financial statements include the allowance for credit losses, fair value measurements, and goodwill impairment assessment, as discussed in the Notes herein.
Cash, Cash Equivalents Cash, Cash Equivalents and Restricted Cash: This includes cash, due from banks, federal funds sold and other short-term investments with maturities of less than three months at the time of purchase.
Restricted Cash Restricted cash includes balances not immediately available for business operations such as Federal Reserve Bank of San Francisco reserve requirements and cash pledged for interest rate swap contracts and local agency deposits.
Investment Securities
Investment Securities: Investment securities are classified as "held-to-maturity," "trading securities" or "available-for-sale." Investments classified as held-to-maturity are those that we have the ability and intent to hold until maturity and are reported at cost, adjusted for the amortization or accretion of premiums or discounts. Investments held for resale in anticipation of short-term market movements are classified as trading securities and are reported at fair value, with unrealized gains and losses included in earnings. Investments that are neither held-to-maturity nor trading are classified as available-for-sale and are reported at fair value. Unrealized gains and losses for available-for-sale securities, net of related taxes, are reported as a separate component of comprehensive income (loss) and included in stockholders' equity until realized. For discussion of our methodology in determining fair value, see Note 9, Fair Value of Assets and Liabilities.

Purchase premiums and discounts on investment securities are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For certain callable debt securities purchased at a premium, we amortize the premium to the earliest call date.

Dividend and interest income are recognized when earned. Realized gains and losses on the sale of securities are included in non-interest income. The specific identification method is used to calculate realized gains and losses on sales of securities.

Securities transferred from the available-for-sale category to the held-to-maturity category are recorded at fair value
at the date of transfer. Unrealized holding gains or losses on the dates of the transfer of securities from available-for-sale to held-to-maturity are included in the balance of accumulated other comprehensive income (loss), net of tax, in the consolidated balance sheets. These unrealized holding gains or losses on the dates of transfer are amortized over the remaining life of the securities as yield adjustments in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security.

Non-marketable equity securities include stock held for membership and regulatory purposes, such as Federal Home Loan Bank ("FHLB") stock and other non-marketable equity securities. These securities are accounted for at cost, evaluated for impairment as of each reporting period, and included in interest receivable and other assets on the consolidated statements of condition. During 2023, the Bank sold its remaining investment in Visa Inc. Class B restricted common stock, as discussed in Note 2 - Investment securities. As of December 31, 2023 and 2022 our investment in FHLB stock was carried at cost, as there was no impairment or changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Both cash and stock dividends from the FHLB are reported as non-interest income.

Allowance for Credit Losses on Investment Securities: The allowance for credit losses on held-to-maturity securities is a contra-asset valuation account determined in accordance with ASC 326, which is deducted from the securities' amortized cost basis at the balance sheet date as a result of management's assessment of the net amount expected to be collected. The allowance is measured on a pooled basis for securities with similar risk characteristics using historical credit loss information, adjusted for current conditions and reasonable and supportable forecasts. Securities that are determined to be uncollectible are written off against the allowance.

For available-for-sale securities in an unrealized loss position ("impaired security"), we assess whether 1) we intend to sell the security, or, 2) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. Under either of these conditions, the security's amortized cost is written down to fair value through a charge to previously recognized allowances or earnings, as applicable. For impaired securities that do not meet these conditions, we assess whether the decline in fair value was due to credit loss or other factors. This assessment considers, among other things: 1) the extent to which the fair value is less than amortized cost, 2) the financial condition and near-term prospects of the issuer, 3) any changes to the rating of the security by a rating agency, and 4) our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss component. Any impairment due to non-credit-related factors that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). The discount rate used in determining the present value of the expected cash flows is based on the effective interest rate implicit in the security at the date of purchase.

Accrued interest receivable is excluded from the amortized costs and fair values of both held-to-maturity and available-for-sale securities and included in interest receivable and other assets on the consolidated statements of condition. Investment securities are placed on non-accrual status when principal or interest is contractually past due more than ninety days, or management does not expect full payment of principal and interest. We do not record an allowance for credit losses for accrued interest on investment securities, as the amounts are written-off when the investment is placed on non-accrual status. There were no non-accrual investment securities in any of the years presented in the consolidated financial statements.
Originated Loans, Acquired Loans, and Past-Due and Non-Accrual Loan Policy
Originated Loans: Loans are reported at amortized cost, which is the principal amount outstanding net of deferred fees (costs), purchase premiums (discounts) and net charge-offs (recoveries). Amortized cost excludes accrued interest, which is reflected in interest receivable and other assets in the consolidated statements of condition. We do not measure an allowance for credit losses on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when loans are placed on non-accrual status as discussed below. Interest income is accrued daily using the simple interest method. Fees collected upon loan origination and certain direct costs of originating loans are deferred and recognized over the contractual lives of the related loans as yield adjustments using the interest method or straight-line method, as applicable. Upon prepayment or other disposition of the underlying loans before their contractual maturities, any associated unearned fees or unamortized costs are recognized.
Acquired Loans: ASC 326 modified the accounting for purchased loans and requires that an allowance for credit losses be established at the date of acquisition. However, for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than reported as a provision for credit losses. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the provision for credit losses.

Past-Due and Non-Accrual Loan Policy: A loan is considered past due when a payment has not been received by the contractual due date. Loans are placed on non-accrual status when management believes that there is substantial doubt as to the collection of principal or interest, generally when they become contractually past due by 90 days or more with respect to principal or interest, except for loans that are well-secured and in the process of collection. When loans are placed on non-accrual status, any accrued but uncollected interest is reversed from current-period interest income and the amortization of deferred loan origination fees and costs is suspended. Interest payments received on nonaccrual loans are either applied against principal or reported as interest income, according to management’s judgment as to the ultimate collectability of principal. We may return non-accrual loans to accrual status when one of the following occurs:

The borrower has resumed paying the full amount of the principal and interest and we are satisfied with the borrower's financial position. In order to meet this test, we must have received repayment of all past due principal and interest, unless the amounts contractually due are reasonably assured of repayment within a reasonable period of time, and there has been a sustained period of repayment performance (generally, six consecutive monthly payments), according to the original or modified contractual terms.
The loan has become well secured and is in the process of collection.
Commercial and Industrial Loans: Commercial loans are generally made to established small and mid-sized businesses to provide financing for their growth and working capital needs, equipment purchases and acquisitions.  Management examines historical, current, and projected cash flows to determine the ability of the borrower to repay obligations as agreed. Commercial loans are made based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral and guarantor support. The cash flows of borrowers, however, may not occur as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed, such as accounts receivable and inventory, and typically include personal guarantees. We target stable businesses with guarantors who provide additional sources of repayment and have proven to be resilient in periods of economic stress.  A weakened economy, and the resultant decreased consumer and/or business spending, may have an effect on the credit quality of commercial loans.

Commercial Real Estate Loans: Commercial real estate loans, which include income producing investment properties and owner-occupied real estate used for business purposes, are subject to underwriting standards and processes similar to those for commercial loans discussed above. We underwrite these loans to be repaid from cash flow from either the business or investment property and supported by real property collateral. Underwriting standards for commercial real estate loans include, but are not limited to, debt coverage and loan-to-value ratios. Furthermore, a large majority of our loans are guaranteed by the owners of the properties. Conditions in the real estate markets or a downturn in the general economy may adversely affect our commercial real estate loans. In the event of a vacancy, we expect guarantors to carry the loans until they find a replacement tenant.  The owner's substantial equity investment provides a strong economic incentive to continue to support their commercial real estate projects. As such, we have generally experienced a relatively low level of losses and delinquencies in this portfolio.

Construction Loans: Construction loans are generally made to developers and builders to finance construction, renovation and occasionally land acquisitions in anticipation of near-term development. Construction loans include interest reserves that are used for the payment of interest during the development and marketing periods and are capitalized as part of the loan balance. When a construction loan is placed on nonaccrual status before the
depletion of the interest reserve, we apply the interest funded by the interest reserve against the loan's principal balance. These loans are underwritten after an evaluation of the borrower's financial strength, reputation, prior track record, and independent appraisals. We monitor all construction projects to determine whether they are on schedule, completed as planned and in accordance with the approved construction budgets. Significant events can affect the construction industry, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes. Estimates of construction costs and value associated with the completed project may be inaccurate. Repayment of construction loans is largely dependent on the ultimate success of the project.

Consumer Loans: Consumer loans primarily consist of home equity lines of credit, other residential loans, floating homes, and indirect luxury auto loans, along with a small number of installment loans. Our other residential loans include tenancy-in-common fractional interest loans ("TIC") located almost entirely in San Francisco County. We originate consumer loans utilizing credit score information, debt-to-income ratio, and loan-to-value ratio analysis. Diversification among consumer loan types, coupled with relatively small loan amounts that are spread across many individual borrowers, mitigates risk. We do not originate sub-prime residential mortgage loans, nor is it our practice to underwrite loans commonly referred to as "Alt-A mortgages," the characteristics of which are reduced documentation, borrowers with low FICO scores, or collateral with high loan-to-value ratios.
Loan Charge-Off Policy
Loan Charge-Off Policy: For all loan types excluding overdraft accounts, we generally make a charge-off determination at or before 90 days past due. A collateral-dependent loan is partially charged down to the fair value of collateral securing it if: (1) it is deemed uncollectable, or (2) it has been classified as a loss by either our internal loan review process or external examiners. A non-collateral-dependent loan is partially charged down to its net realizable value under the same circumstances. Overdraft accounts are generally charged off when they exceed 60 days past due.
Collateral Dependent Loans
Collateral Dependent Loans: A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For collateral dependent loans, including those for which management determines foreclosure is probable, each loan is individually evaluated and the allowance for credit losses is based on the fair value of the collateral, adjusted for estimated selling costs when repayment is expected from the sale of the collateral, less the loan's amortized cost. In determining the fair value, management considers such information as the appraised value of the collateral, observed and potential future changes in collateral value, and historical loss experience for loans that were secured by similar collateral. Generally, with problem credits that are collateral dependent, we obtain appraisals of the collateral at least annually. We may obtain appraisals more frequently if we believe the collateral value is subject to market volatility, if a specific event has affected the collateral, or if we believe foreclosure is imminent.
Allowance for Credit Losses on Loans ("ACL")
Allowance for Credit Losses on Loans ("ACL"): The ACL is a valuation account that is deducted from the amortized cost basis at the balance sheet date to present the net amount of loans expected to be collected. Amortized cost does not include accrued interest, which management elected to exclude from the estimate of expected credit losses (refer to the Past-Due and Non-Accrual Loan Policy section above). Management estimates the allowance quarterly using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Credit loss experience provides the basis for the estimation of expected credit losses.

The ACL model utilizes a discounted cash flow ("DCF") method to measure the expected credit losses on loans collectively evaluated that are sub-segmented by loan pools with similar credit risk characteristics, which are generally comprised of federal regulatory reporting codes (i.e., Call codes). Pooled segments include the following:

Loans secured by real estate:
-     1-4 family residential construction loans
-     Other construction loans and all land development and other land loans
-     Secured by farmland (including residential and other improvements)
-     Revolving, open-end loans secured by 1-4 family residential properties and extended under lines
of credit
-     Closed-end loans secured by 1-4 family residential properties, secured by first liens
-     Closed-end loans secured by 1-4 family residential properties, secured by junior liens
-     Secured by multifamily (5 or more) residential properties
-     Commercial real estate loans secured by owner-occupied non-farm nonresidential properties
-     Commercial real estate loans secured by other non-farm nonresidential properties
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Loans to individuals for household, family and other personal expenditures (i.e., consumer loans)
Municipal entities
Non-profit organizations
Other loans (overdraft credit lines)

The DCF method incorporates assumptions for probability of default ("PD"), loss given default ("LGD"), and prepayments and curtailments over the contractual terms of the loans. Under the DCF method, the ACL reflects the difference between the amortized cost basis and the present value of the expected cash flows using the loan's effective rate. We elected to report the change in present values from one reporting period to the next due to the passage of time and changes in the estimate of future expected cash flows through the provision for credit losses, rather than though interest income.

In determining the PD for each pooled segment, the Bank utilized regression analyses to identify certain economic drivers that were considered highly correlated to historical Bank or peer loan default experience. As a result, management chose the California unemployment rate as the primary economic forecast driver for all segments, except for municipal loans. In addition, the annual percentage change in the California gross domestic product was used in the commercial and industrial loan segment. For municipal loans, the ACL model utilized a constant default rate obtained from a nationally recognized default rate study, which is updated annually. A third party provides LGD estimates for each segment based on a banking industry Frye-Jacobs Risk Index approach. The ACL model incorporates a one-year reasonable and supportable forecast of economic factors, updated quarterly, which is based on Moody's Analytics' Baseline Forecast. For periods beyond the forecast horizon, the economic factors revert to historical averages on a straight-line basis over a one-year period.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments and curtailments, when appropriate. The pooled loans' contractual loan terms exclude assumptions about extensions, renewals, and modifications.

Loans that do not share the same risk characteristics as pooled loans are evaluated individually for credit loss and generally include all non-accrual loans, collateral dependent loans, and certain modified loans and loans graded substandard or worse, as determined by management.

Management considers whether adjustments to the quantitative portion of the ACL are needed for differences in segment-specific risk characteristics or to reflect the extent to which it expects current conditions and reasonable and supportable forecasts of economic conditions to differ from the conditions that existed during the historical period included in the development of PD and LGD. Qualitative internal and external risk factors include, but are not limited to, the following:
Changes in the nature and volume of the loan portfolio
Changes in the volume and severity of past due loans, the volume of non-accruals loans, and the volume and severity of adversely classified or graded loans
The existence and effect of individual loan and loan segment concentrations
Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere
Changes in the experience, ability, and depth of lending management and other relevant staff
Changes in the quality of our systematic loan review processes
Changes in economic and business conditions, and developments that affect the collectability of the portfolio
Changes in the value of underlying collateral, where applicable
The effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses in the portfolio
The effect of acquisitions of other loan portfolios on our infrastructure, including risk associated with entering new geographic areas as a result of such acquisitions
The presence of specialized lending segments in the portfolio

There were no material changes to the ACL methodology during 2023. However, assumptions that mainly influenced management's current estimate of the expected credit losses were primarily adjustments to qualitative risk factors from continued uncertainty about inflation and recession risks, the potential impact of rapidly increasing interest rates and other external factors on both our non-owner-occupied commercial real estate and construction portfolios, loan and collateral concentration risks in our construction and commercial real estate portfolios, heightened portfolio management in light of current economic conditions, and continued negative trends in adversely graded loans and/or collateral values for our non-owner occupied commercial real estate office and multi-family real estate portfolios. Other elements of the estimated current expected credit losses included increased allowances for individually analyzed loans exhibiting unique credit risk characteristics and a slight increase in Moody's Analytics' Baseline Forecast of California's unemployment rate, partially offset by the impact of an overall decrease in loans. While we believe we use the best information available to determine the allowance for credit losses, our results of operations could be significantly affected if circumstances differ substantially from the assumptions used in determining the allowance. Our ACL model is sensitive to changes in unemployment rate forecasts and certain other assumptions that could result in material fluctuations in the allowance for credit losses and adversely affect our financial condition and results of operations.

As discussed in the Other Recently Adopted Accounting Standards section below, as of January 1 2023, we adopted ASU No. 2022-02 under which the concept of troubled debt restructured loans and its impact on the ACL calculation was eliminated in favor of the disclosure of certain loan modifications made to borrowers experiencing financial difficulty. Such modified loans are now subject to the Bank's standard ACL process, as outlined above.

For further information regarding the allowance for loan losses, see Note 3, Loans and Allowance for Loan Losses.
 
We use a risk rating system to evaluate asset quality, and to identify and monitor credit risk in individual loans, and in the loan portfolio. Our definitions of “Special Mention” risk graded loans, or worse, are consistent with those used by the Federal Deposit Insurance Corporation ("FDIC").  Our internally assigned grades are as follows:
 
Pass and Watch: Loans to borrowers of acceptable or better credit quality. 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 Bank’s policy regarding debt-service-coverage ratios.  These borrowers are capable of sustaining normal economic, market or operational setbacks without significant financial consequences.  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 whose marketability is more uncertain. This category also includes “Watch” loans, where the primary source of repayment has been delayed. The “Watch” risk rating is intended to be a transitional grade, with either an upgrade or downgrade within a reasonable period.
 
Special Mention: Potential weaknesses that deserve close attention. If left uncorrected, those potential weaknesses may result in deterioration of the payment prospects for the asset. Special Mention assets do not present sufficient risk to warrant adverse classification.
 
Substandard: Inadequately protected by either the current sound worth and paying capacity of the obligor or the collateral pledged, if any. A Substandard asset has well-defined weaknesses that jeopardize the liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if such weaknesses or deficiencies are not corrected. Well-defined weaknesses include adverse trends or developments in the borrower’s financial condition, managerial weaknesses, and/or significant collateral deficiencies.
 
Doubtful: Critical weaknesses that make collection or liquidation in full improbable. There may be specific pending events that work to strengthen the asset; however, the amount or timing of the loss may not be determinable. Pending events generally occur within one year of the asset being classified as Doubtful. Examples include: merger, acquisition, or liquidation; capital injection; guarantee; perfecting liens on additional collateral; and refinancing. Such loans are placed on non-accrual status and are usually collateral-dependent.

We regularly review our credits for the accuracy of risk grades whenever we receive new information and at each quarterly and year-end reporting period. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk and complexity. In addition, investor commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We review home
equity and other consumer loans based on delinquency. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly.
Allowance for Credit Loss on Unfunded Loan Commitments Allowance for Credit Losses on Unfunded Loan Commitments: We make commitments to extend credit to meet the financing needs of our customers in the form of loans or standby letters of credit. We are exposed to credit losses over a loan's contractual period in the event that a decline in credit quality of the borrower leads to nonperformance. We record an allowance for losses on unfunded loan commitments at the balance sheet date based on estimates of probability that these commitments will be drawn upon according to historical utilization experience of different types of commitments and expected loss severity and loss rates determined for pooled funded loans. The allowance for credit losses on unfunded commitments is a liability account included in interest payable and other liabilities on the consolidated statements of condition. Adjustments to the allowance for unfunded commitments are included in non-interest expense as a provision for (or reversal of) the allowance for unfunded commitments.
Transfers of Financial Assets Transfers of Financial Assets: We have entered into certain loan participation agreements with other organizations. We account for these transfers of financial assets as sales when control over the transferred financial assets has been surrendered. Control over transferred assets is deemed to be surrendered when 1) the assets and liabilities have been isolated from us, 2) the transferee has the right to pledge or exchange the assets (or beneficial interests) it received, free of conditions that constrain it from taking advantage of that right, beyond a trivial benefit and 3) we do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Transfers of a portion of a loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, and the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan.
Premises and Equipment
Premises and Equipment: Land is carried at cost and not depreciated. Bank-owned buildings, leasehold improvements, furniture, fixtures, software and equipment and are stated at cost, less accumulated depreciation, and depreciated/amortized on a straight-line basis. Furniture and fixtures are depreciated over eight years and
equipment is generally depreciated over three to twenty years. Bank-owned buildings are depreciated over twenty-five to thirty years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the terms of the leases. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred.
Leases
Leases: We lease certain premises under long-term non-cancelable operating leases, most of which include escalation clauses and one or more options to extend the lease term, and some of which contain lease termination clauses. Only those renewal and termination options that management determines are reasonably certain of exercising are included in the calculation of the lease liability. In addition, we lease certain equipment under finance leases. The equipment finance lease terms do not contain renewal options, bargain purchase options or residual value guarantees. We did not have any significant short-term leases during the reported periods.

Lease right-of-use assets represent the right to use the underlying asset while lease liabilities represent the present value of future lease obligations. We elected not to separate non-lease components from lease components and to exclude short-term leases (i.e., lease term of 12 months or less at the commencement date) from right-of-use assets and lease liabilities for all lease classifications. When calculating the lease liability, because most lease contracts do not contain an implicit interest rate, we discount lease payments over a lease's expected term based on the collateralized Federal Home Loan Bank borrowing rate that was commensurate with lease terms and minimum payments at the lease commencement date. Right-of-use assets for operating leases are amortized over the lease term by amounts that represent the difference between periodic straight-line lease expense and periodic interest accretion on the related liability to make lease payments, whereas finance leases are amortized on a straight-line basis over the term of the lease. Expense recognition for operating leases is recorded on a straight-line basis while expense recognition for finance leases represents the sum of periodic amortization of the associated right-of-use asset and the interest accretion on the lease liability. Refer to Note 12, Commitments and Contingencies, for further information.
Business Combinations
Business Combinations: Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. A business is defined as a set of activities and assets that is both self-sustaining and managed to provide a return to investors and generally has three elements: inputs, processes and outputs. Under the acquisition method, the acquiring entity in a business combination recognizes the acquired assets and assumed liabilities at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceed the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed from a business combination are recognized at fair value. Results of operations of an acquired business are included in the consolidated statements of operations from the date of acquisition. Business acquisition-related costs, including conversion and restructuring charges, are expensed as incurred. If substantially all of an acquisition is made up of one asset or several similar assets, or without a substantive process that together contributes to the ability to create outputs, the acquisition is accounted for as an asset acquisition and acquisition costs will be capitalized as part of the assets acquired, rather than expensed in a business combinations.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets: Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is deemed to have an indefinite life, is not subject to amortization, and as such is tested for impairment at least annually or more frequently if events and circumstances lead management to believe the value of goodwill may be impaired. Goodwill is the only intangible asset with an indefinite life recorded in the Company’s consolidated statements of financial condition. Impairment testing is performed at the reporting unit level. Management considered the Company to be its sole reporting unit for the year ended December 31, 2023.

Management’s assessment of goodwill impairment is performed in accordance with ASC 350-20, Intangibles - Goodwill and Other - Goodwill and encompasses a two-step process. First, the Company has the option to perform a qualitative assessment to evaluate relevant events or circumstances to determine whether it is more likely than not the fair value of the Company is less than its carrying amount, including goodwill. The factors considered in the qualitative assessment typically include macroeconomic conditions, industry and market conditions and the overall financial performance of the Company, among other factors. If the Company determines that it is more likely than
not the fair value of the Company may be less than its carrying amounts, then it proceeds to the quantitative impairment test, whereby it calculates the fair value of the Company. Under GAAP, in its performance of impairment testing, management has the unconditional option to proceed directly to the quantitative impairment test, bypassing the qualitative assessment. If the carrying amount of the Company exceeds its fair value, the amount by which the carrying amount exceeds fair value, up to the carrying value of goodwill, is recorded through earnings as an impairment charge recorded in non-interest expense. If the results of the qualitative assessment indicate that it is not more likely than not that an impairment has occurred, or if the quantitative impairment test results in a fair value of the Company that is greater than the carrying amount, then no impairment charge is recorded.

The Company performs its annual goodwill impairment test as of November 30th each year. Due to the market volatility experienced in the banking sector during 2023, the Company elected to bypass a qualitative assessment of goodwill and proceed directly to a quantitative assessment, the results of which indicated that goodwill totaling $72.8 million was not impaired as of December 31, 2023, and there were no changes to our assessment through December 31, 2023. In addition, the Company recorded no goodwill impairment for the years ended December 31, 2022, and 2021.
Core deposit intangibles ("CDI") arising from the acquisition of other financial institutions are considered to have definite useful lives and are amortized on an accelerated method over their estimated useful life of ten years.We recorded no impairment adjustments for the CDI in 2023, 2022 and 2021.
Other Real Estate Owned ("OREO")
Other Real Estate Owned ("OREO"): OREO is comprised of property acquired through a business combination, foreclosure, in substance repossession or acceptance of deeds-in-lieu of foreclosure when the related loan receivable is de-recognized. OREO is recorded at fair value of the collateral less estimated costs to sell, establishing a new cost basis, and subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Any shortfall of collateral value from the recorded investment of the related loan is recognized as loss at the time of foreclosure and is charged against the allowance for loan losses. Fair value of collateral is generally based on an independent appraisal of the property. Revenues and expenses associated with OREO, and subsequent adjustments to the fair value of the property and to the estimated costs of disposal, are realized and reported as a component of non-interest income and expense when incurred. We recorded a $40 thousand and $345 thousand valuation adjustment to OREO in 2023 and 2022, respectively. In July 2023, the Bank completed the sale of its only OREO property.
Bank Owned Life Insurance ("BOLI")
Bank Owned Life Insurance ("BOLI"): The Bank owns life insurance policies on certain key current and former officers. BOLI is recorded in interest receivable and other assets on the consolidated statements of condition at the amount that can be realized under the insurance contract at period-end, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement.
Investments in Low Income Housing Tax Credit Funds
Investments in Low Income Housing Tax Credit Funds: We have invested in limited partnerships that were formed to develop and operate affordable housing projects for low or moderate-income tenants throughout California. Our ownership percentage in each limited partnership ranges from 1.0% to 3.5%. We account for the investments in qualified affordable housing tax credit funds using the proportional amortization method, where the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received. Low income housing tax credits and other tax benefits received, net of the amortization of the investment is recognized as part of income tax benefit. Each of the partnerships must meet the regulatory minimum requirements for affordable housing for a minimum 15-year compliance period to fully utilize the tax credits. If the partnerships cease to qualify during the compliance period, the credit may be denied for any period in which the project is not in compliance and a portion of the credit previously taken is subject to recapture with interest. We record an impairment charge if the value of the future tax credits and other tax benefits is less than the carrying value of the investments.
Employee Stock Ownership Plan (ESOP)
Employee Stock Ownership Plan (“ESOP”): We recognize compensation cost for ESOP contributions when funds become committed for the purchase of Bancorp's common shares into the ESOP in the year in which the employees render service entitling them to the contribution. If we contribute stock, the compensation cost is the fair value of the shares when they are committed to be released (i.e., when the number of shares becomes known and formally approved). In 2023, 2022 and 2021, Bancorp only made stock contributions to the ESOP.
Income Taxes
Income Taxes: Income taxes reported in the consolidated financial statements are computed based on an asset and liability approach. We recognize the amount of taxes payable or refundable for the current year and we record deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the temporary differences are expected to reverse. We record net deferred tax assets to the extent it is more likely than not that they will be realized. In evaluating our ability to recover the deferred tax assets and the need to establish a valuation allowance against the deferred tax assets, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. In projecting future taxable income, management develops assumptions including the amount of future state and federal pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates being used to manage the underlying business. Bancorp files consolidated federal and combined state income tax returns.

We recognize the financial statement effect of a tax position when it is more likely than not, based on the technical merits and all available evidence, that the position will be sustained upon examination, including the resolution through protests, appeals or litigation processes. For tax positions that meet the more likely than not threshold, we measure and record the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with the taxing authority. The remainder of the benefits associated with tax positions taken is recorded as unrecognized tax benefits, along with any related interest and penalties. Interest and penalties related to unrecognized tax benefits are recorded in tax expense.

In deciding whether or not our tax positions taken meet the more likely than not recognition threshold, we must make judgments and interpretations about the application of inherently complex state and federal tax laws. To the extent tax authorities disagree with tax positions taken by us, our effective tax rates could be materially affected in the period of settlement with the taxing authorities. Revision of our estimate of accrued income taxes also may result from our own income tax planning, which may affect effective tax rates and results of operations for any reporting period.

We present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss ("NOL") carryforward, or similar tax loss or tax credit carryforward, rather than as a liability, when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) we intend to and are able to use the deferred tax asset for that purpose. Otherwise, the unrecognized tax benefit is presented as a liability instead of being netted with deferred tax assets.
Earnings per share (EPS)
Earnings per share (“EPS”): EPS is based upon the weighted average number of common shares outstanding during each year. The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic EPS are calculated by dividing net income by the weighted average number of common shares outstanding during each annual period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury stock method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities.
Share-Based Compensation
Share-Based Compensation: All share-based payments, including stock options and restricted stock, are recognized as stock-based compensation expense in the consolidated statements of comprehensive income (loss) based on the grant-date fair value of the award with a corresponding increase in common stock. The grant-date fair value of the award is amortized on a straight-line basis over the requisite service period, which is generally the vesting period. The stock-based compensation expense excludes stock grants to directors as compensation for their services, which are recognized as director expenses separately based on the grant-date value of the stock. We account for forfeitures as they occur. See Note 8, Stockholders' Equity and Stock Option Plans, for further discussion.

We determine the fair value of stock options at the grant date using a Black-Scholes pricing model that takes into account the stock price at the grant date, exercise price, expected life of the option, volatility of the underlying stock, expected dividend yield and risk-free interest rate over the expected life of the option. The expected term of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is based on the historical volatility of the common stock over the most recent period that is generally commensurate with the expected life of the options. The Black-Scholes option valuation model requires the input of highly subjective assumptions, including the expected life of the stock-based award and stock price volatility. The assumptions used represent management's best estimates based on historical information, but these estimates involve inherent uncertainties and the application of management's judgment. As a result, if other assumptions had been used, the recorded stock-based compensation expense could have been materially different from that recorded in the consolidated financial statements. The fair value of restricted stock is based on the stock price on the grant date.

We record excess tax benefits resulting from the exercise of non-qualified stock options, the disqualifying disposition of incentive stock options and vesting of restricted stock awards as tax benefits in the consolidated statements of comprehensive income (loss) with a corresponding decrease to current taxes payable. In addition, we reflect excess tax benefits as an operating activity in the consolidated statements of cash flows.

Cash paid for tax withholdings when shares are surrendered in a cashless stock option exchange is classified as a financing activity in the consolidated statements of cash flows.
Derivative Financial Instruments and Hedging Activities
Derivative Financial Instruments and Hedging Activities - Fair Value Hedges: All of our interest rate swap contracts are designated and qualified as fair value hedges. The terms of our loan interest rate swap contracts are closely aligned to the terms of the designated fixed-rate loans. The hedging relationships are tested for effectiveness on a quarterly basis using a qualitative approach. The qualitative analysis includes verification that there are no changes to the derivative's or hedged item's key terms and conditions and no adverse developments regarding risk of counterparty default, and validation that we continue to have fair value hedge designation. Our rate swaps on available-for-sale securities were designated as partial term fair value hedges and structured such that the changes in fair value of the interest rate swaps are expected to be perfectly effective in offsetting the changes in the fair value of the hedged items attributable to changes in the swap rate. Because the hedges met the criteria for using the shortcut method, there is no need to periodically reassess effectiveness during the term of the hedges.

The interest rate swaps are carried on the consolidated statements of condition at their fair value in other assets (when the fair value is positive) or in other liabilities (when the fair value is negative). For fair value designated
hedges, the gain or loss on the hedging instruments, as well as the offsetting loss or gain on the hedged items, are recognized in current earnings as fair values change.

For derivative instruments executed with the same counterparty under a master netting arrangement, we do not offset fair value amounts of interest rate swaps in liability positions with the ones in asset positions.

From time to time, we make firm commitments to enter into long-term fixed-rate loans with borrowers backed by yield maintenance agreements and simultaneously enter into forward interest rate swap agreements with correspondent banks to mitigate the change in fair value of the yield maintenance agreement. Prior to loan funding, yield maintenance agreements with net settlement features that meet the definition of a derivative are considered as non-designated hedges and are carried on the consolidated statements of condition at their fair value in other assets (when the fair value is positive) or in other liabilities (when the fair value is negative). The offsetting changes in the fair value of the forward swap and the yield maintenance agreement are recorded in interest income. When the fixed-rate loans are originated, the forward swaps are designated to offset the change in fair value in the loans. Subsequent to the point of the swap designations, the fair value of the related yield maintenance agreements at the designation date that was recorded in other assets is amortized using the effective yield method over the life of the respective designated loans.

For further detail, refer to Note 14, Derivative Financial Instruments and Hedging Activities.
Revenue Recognition
Revenue Recognition: We utilize the following five-step model for non-financial instrument related revenue that is in scope for ASC 606, Revenue from Contracts with Customers: 1) identify the contract, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and, 5) recognize revenue when (or as) the entity satisfies the performance obligation. Our main revenue streams in scope for ASC 606 include:

Wealth management and trust services ("WMTS") fees - WMTS services include, but are not limited to: customized investment advisory and management; administrative services such as bill pay and tax reporting; trust administration, estate settlement, custody and fiduciary services.  Performance obligations for investment advisory and management services are generally satisfied over time.  Revenue is recognized monthly according to a tiered fee schedule based on the client's month-end market value of assets under our management.  WMTS does not earn revenue based on performance or incentives.  Costs associated with WMTS revenue-generating activities, such as payments to sub-advisors, are recorded separately as part of professional service expenses when incurred.

Deposit account service charges - Service charges on deposit accounts consist of monthly maintenance fees, business account analysis fees, business online banking fees, check order charges, and other deposit account-related fees.  Performance obligations for monthly maintenance fees and account analysis fees are satisfied, and the related revenue recognized, when we complete our performance obligation each month.  Performance obligations related to transaction-based services (such as check orders) are satisfied, and the related revenue recognized, at a point in time typically when the transaction is completed, except for business accounts subject to analysis where the transaction-based fees are part of the monthly account analysis fees.

Debit card interchange fees - We issue debit cards to our consumer and small business customers that allow them to purchase goods and services from merchants in person, online, or via mobile devices using funds held in their demand deposit accounts held with us.  Debit cards issued to our customers are part of global electronic payment networks (such as Visa) who pass a portion of the merchant interchange fees to debit card-issuing member banks like us when our customers make purchases through their networks.  Performance obligations for debit card services are satisfied and revenue is recognized daily as the payment networks process transactions.  Because we act in an agent capacity, we recognize network costs on a net basis with interchange fees in non-interest income.
Advertising Costs Advertising Costs: Advertising costs are expensed as incurred.
Comprehensive (Loss) Income
Comprehensive Income (Loss): Comprehensive income (loss) primarily includes net income, changes in the unrealized gains or losses on available-for-sale investment securities, reclassification adjustment for gains or losses
on fair value hedges, reclassification adjustment for realized (gains) losses on available-for-sale securities in net income, and amortization of net unrealized gains or losses on securities transferred from available-for-sale to held-to-maturity, net of related taxes, reported on the consolidated statements of comprehensive income (loss) and as components of stockholders' equity.
Fair Value Measurements
Fair Value Measurements: We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., exit price notion) reflecting factors such as a liquidity premium. Securities available-for-sale and derivatives are recorded at fair value on a recurring basis. Equity investments that do not have readily determinable fair values are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. FHLB stock was carried at cost as of December 31, 2023, as there was no impairment or changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Additionally, from time to time, we may be required to record certain assets and liabilities at fair value on a non-recurring basis, such as purchased loans and acquired deposits recorded at acquisition date, certain collateral dependent loans, other real estate owned and securities held-to-maturity that are other-than-temporarily impaired. These non-recurring fair value adjustments typically involve write-downs of individual assets due to application of lower-of-cost or market accounting.
When we develop our fair value measurement process, we maximize the use of observable inputs. Whenever there is no readily available market data, we use our best estimates and assumptions in determining fair value, but these estimates involve inherent uncertainties and the application of management's judgment. As a result, if other assumptions had been used, our recorded earnings or disclosures could have been materially different from those reflected in these consolidated financial statements.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense At December 31, 2023, the future estimated amortization expense for the CDI arising from our past acquisitions was as follows:
(in thousands)20242025202620272028ThereafterTotal
Core deposit intangible amortization$975 $875 $773 $634 $242 $267 $3,766 
Schedule of Earnings Per Share Reconciliation The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic EPS are calculated by dividing net income by the weighted average number of common shares outstanding during each annual period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury stock method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities.
(in thousands, except per share data)202320222021
Weighted average basic common shares outstanding16,012 15,921 14,340 
Potentially dilutive common shares related to:
Stock options31 62 
Unvested restricted stock awards11 17 20 
Weighted average diluted common shares outstanding16,026 15,969 14,422 
Net income$19,895 $46,586 $33,228 
Basic EPS$1.24 $2.93 $2.32 
Diluted EPS$1.24 $2.92 $2.30 
Weighted average anti-dilutive common shares not included in the calculation of diluted EPS364 211 97 
v3.24.0.1
Investment Securities (Tables)
12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Held-to-Maturity Investments
A summary of the amortized cost, fair value and allowance for credit losses related to securities held-to-maturity as of December 31, 2023 and December 31, 2022 is presented below.

Held-to-maturity:
Amortized Cost 1
Allowance for Credit LossesNet Carrying AmountGross UnrealizedFair Value
(in thousands)Gains(Losses)
December 31, 2023
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$306,261 $— $306,261 $— $(44,396)$261,865 
CMOs issued by FHLMC226,416 — 226,416 28 (24,869)201,575 
CMOs issued by FNMA101,502 — 101,502 — (4,779)96,723 
CMOs issued by GNMA51,006 — 51,006 — (5,235)45,771 
SBA-backed securities1,853 — 1,853 — (90)1,763 
Debentures of government-sponsored agencies146,126 — 146,126 — (21,994)124,132 
Obligations of state and political subdivisions62,034 — 62,034 47 (7,884)54,197 
Corporate bonds30,000 — 30,000 — (1,196)28,804 
Total held-to-maturity$925,198 $— $925,198 $75 $(110,443)$814,830 
December 31, 2022
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$331,281 $— $331,281 $— $(50,147)$281,134 
CMOs issued by FHLMC235,971 — 235,971 59 (29,503)$206,527 
CMOs issued by FNMA111,904 — 111,904 — (5,419)106,485 
CMOs issued by GNMA52,356 — 52,356 11 (3,076)49,291 
  SBA-backed securities2,372 — 2,372 — (133)2,239 
Debentures of government-sponsored agencies145,823 — 145,823 — (26,467)119,356 
Obligations of state and political subdivisions62,500 — 62,500 — (10,741)51,759 
Corporate bonds30,000 — 30,000 — (1,552)28,448 
Total held-to-maturity$972,207 $— $972,207 $70 $(127,038)$845,239 
1 Amortized cost and fair values exclude accrued interest receivable of $3.6 million and $3.7 million at December 31, 2023 and 2022, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.
Schedule of Bond Ratings for Held-to-Maturity Securities
The following table summarizes the amortized cost of our portfolio of held-to-maturity securities issued by states and political subdivisions and corporate bonds by Moody's and/or Standard & Poor's bond ratings as of December 31, 2023 and 2022.
Obligations of state and political subdivisionsCorporate bonds
 (in thousands)December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Aaa / AAA$42,577 $42,986 $— $— 
Aa2 / AA19,457 19,514 — — 
A2 / A— — 30,000 30,000 
Total$62,034 $62,500 $30,000 $30,000 
Schedule of Available-for-Sale Investments
A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of December 31, 2023 and 2022 is presented below.

Available-for-sale:
Amortized Cost 1
Gross UnrealizedAllowance for Credit LossesFair Value
(in thousands)Gains(Losses)
December 31, 2023
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$81,937 $$(9,516)$— $72,423 
CMOs issued by FHLMC266,407 — (24,758)— 241,649 
CMOs issued by FNMA23,987 — (2,715)— 21,272 
CMOs issued by GNMA20,006 — (2,878)— 17,128 
SBA-backed securities21,126 — (1,655)— 19,471 
Debentures of government- sponsored agencies73,899 — (7,037)— 66,862 
U.S. Treasury securities11,923 — (1,300)— 10,623 
Obligations of state and political subdivisions102,202 (10,321)— 91,882 
Corporate bonds11,992 — (1,274)— 10,718 
Asset-backed securities— — — — — 
Total available-for-sale$613,479 $$(61,454)$— $552,028 
December 31, 2022
Securities of U.S. government-sponsored enterprises:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$109,736 $$(12,133)$— $97,606 
CMOs issued by FHLMC347,437 — (33,682)— 313,755 
CMOs issued by FNMA36,172 — (3,852)— 32,320 
CMOs issued by GNMA35,120 — (3,296)— 31,824 
SBA-backed securities47,724 (3,371)— 44,355 
Debentures of government- sponsored agencies149,114 — (14,008)— 135,106 
U.S. Treasury securities11,904 — (1,635)— 10,269 
Obligations of state and political subdivisions116,855 29 (14,761)— 102,123 
Corporate bonds36,990 — (3,714)— 33,276 
Asset-backed securities1,553 — (91)— 1,462 
Total available-for-sale$892,605 $34 $(90,543)$— $802,096 
1 Amortized cost and fair value exclude accrued interest receivable of $2.3 million and $3.2 million at December 31, 2023 and 2022, respectively, which is included in interest receivable and other assets in the consolidated statements of condition.
Schedule of Investments Classified by Contractual Maturity Date
The amortized cost and fair value of investment debt securities by contractual maturity at December 31, 2023 and 2022 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.
 December 31, 2023December 31, 2022
 Held-to-MaturityAvailable-for-SaleHeld-to-MaturityAvailable-for-Sale
(in thousands)Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Within one year$— $— $101 $100 $450 $446 $1,254 $1,239 
After one but within five years87,887 84,541 226,669 208,444 87,418 83,663 335,813 307,843 
After five years through ten years304,976 261,654 95,552 85,447 262,072 222,280 185,997 166,273 
After ten years532,335 468,635 291,157 258,037 622,267 538,850 369,541 326,741 
Total$925,198 $814,830 $613,479 $552,028 $972,207 $845,239 $892,605 $802,096 
Schedule of Sale of Investment Securities and Gross Gains and Losses
Sales of investment securities and gross gains and losses for the years ended December 31, 2023, 2022 and 2021 are shown in the following table.
(in thousands)202320222021
Available-for-sale:
  Sales proceeds$205,795 $10,664 $6,632 
  Gross realized gains$$17 $
  Gross realized losses$(8,705)$(80)$(17)
Sale of equity securities: 1
Sales proceeds$2,807 $— $— 
Gross realized gain$2,807 $— $— 
1 Refer to VISA Inc. Class B Common Stock section below for more information.
Schedule of Financial Instruments Owned and Pledged as Collateral
The reported values of pledged investment securities are shown in the following table.
(in thousands)December 31, 2023December 31, 2022
Pledged to the State of California:
   Secure public deposits in compliance with the Local Agency Security Program$287,436 $231,307 
   Collateral for trust deposits666 669 
   Collateral for Wealth Management and Trust Services checking account562 564 
Total investment securities pledged to the State of California288,664 232,540 
Bankruptcy trustee deposits pledged with Federal Reserve Bank1,151 1,686 
Pledged to FHLB Securities-Backed Credit Program383,484 — 
Pledged to the Federal Reserve "BTFP"265,660 — 
Total pledged investment securities$938,959 $234,226 
Schedule of Unrealized Loss on Investments Those securities are summarized and classified according to the duration of the loss period in the tables below.
December 31, 2023< 12 continuous months≥ 12 continuous monthsTotal securities
 in a loss position
(in thousands)Fair valueUnrealized lossFair valueUnrealized lossFair valueUnrealized loss
Held-to-maturity:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$— $— $261,865 $(44,396)$261,865 $(44,396)
CMOs issued by FHLMC8,662 (21)188,657 (24,848)197,319 (24,869)
CMOs issued by FNMA42,474 (411)54,249 (4,368)96,723 (4,779)
CMOs issued by GNMA10,988 (244)34,783 (4,991)45,771 (5,235)
SBA-backed securities— — 1,763 (90)1,763 (90)
Debentures of government-sponsored agencies— — 124,132 (21,994)124,132 (21,994)
Obligations of state and political subdivisions— — 44,437 (7,884)44,437 (7,884)
Corporate bonds— — 28,804 (1,196)28,804 (1,196)
Total held-to-maturity$62,124 $(676)$738,690 $(109,767)$800,814 $(110,443)
Available-for-sale:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$— $— $72,146 $(9,516)$72,146 $(9,516)
CMOs issued by FHLMC1,235 (7)240,414 (24,751)241,649 (24,758)
CMOs issued by FNMA— — 21,272 (2,715)21,272 (2,715)
CMOs issued by GNMA— — 17,128 (2,878)17,128 (2,878)
SBA-backed securities— — 19,471 (1,655)19,471 (1,655)
Debentures of government-sponsored agencies— — 66,862 (7,037)66,862 (7,037)
U.S. Treasury securities— — 10,623 (1,300)10,623 (1,300)
Obligations of state and political subdivisions666 (1)90,655 (10,320)91,321 (10,321)
Corporate bonds— — 10,718 (1,274)10,718 (1,274)
Asset-backed securities— — — — — — 
Total available-for-sale$1,901 $(8)$549,289 $(61,446)$551,190 $(61,454)
Total securities at a loss position$64,025 $(684)$1,287,979 $(171,213)$1,352,004 $(171,897)
December 31, 2022< 12 continuous months> 12 continuous monthsTotal securities
 in a loss position
(in thousands)Fair valueUnrealized lossFair valueUnrealized lossFair valueUnrealized loss
Held-to-maturity:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$62,627 $(5,960)$218,507 $(44,187)$281,134 $(50,147)
CMOs issued by FHLMC78,144 (5,874)113,796 (23,629)191,940 (29,503)
CMOs issued by FNMA106,485 (5,419)— — 106,485 (5,419)
CMOs issued by GNMA27,570 (1,676)10,331 (1,400)37,901 (3,076)
SBA-backed securities2,239 (133)— — 2,239 (133)
Debentures of government-sponsored agencies38,645 (2,530)80,711 (23,937)119,356 (26,467)
Obligations of state and political subdivisions15,155 (589)36,603 (10,152)51,758 (10,741)
Corporate bonds28,448 (1,552)— — 28,448 (1,552)
Total held-to-maturity$359,313 $(23,733)$459,948 $(103,305)$819,261 $(127,038)
Available-for-sale:
MBS pass-through securities issued by FHLMC, FNMA and GNMA$44,630 $(4,501)$52,235 $(7,632)$96,865 $(12,133)
CMOs issued by FHLMC169,760 (15,144)143,995 (18,538)313,755 (33,682)
CMOs issued by GNMA4,790 (235)27,529 (3,617)32,319 (3,852)
CMOs issued by FNMA8,214 (374)23,612 (2,922)31,826 (3,296)
SBA-backed securities37,845 (3,228)6,133 (143)43,978 (3,371)
Debentures of government- sponsored agencies19,054 (946)116,052 (13,062)135,106 (14,008)
U.S. Treasury securities— — 10,269 (1,635)10,269 (1,635)
Obligations of state and political subdivisions70,402 (9,459)28,711 (5,302)99,113 (14,761)
Corporate bonds— — 33,276 (3,714)33,276 (3,714)
Asset-backed securities— — 1,462 (91)1,462 (91)
Total available-for-sale$354,695 $(33,887)$443,274 $(56,656)$797,969 $(90,543)
Total$714,008 $(57,620)$903,222 $(159,961)$1,617,230 $(217,581)
v3.24.0.1
Loans and Allowance for Credit Losses on Loans (Tables)
12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Loans by Class
The following table presents the amortized cost of loans by portfolio class as of December 31, 2023 and 2022.
December 31,
(in thousands)20232022
Commercial and industrial$153,750 $173,547 
Real estate:
  Commercial owner-occupied333,181 354,877 
  Commercial non-owner occupied
1,219,385 1,191,889 
  Construction99,164 114,373 
  Home equity82,087 88,748 
  Other residential118,508 112,123 
Installment and other consumer loans67,645 56,989 
Total loans, at amortized cost 1
2,073,720 2,092,546 
Allowance for credit losses on loans(25,172)(22,983)
Total loans, net of allowance for credit losses on loans$2,048,548 $2,069,563 
1 Amortized cost includes net deferred loan origination costs of $2.7 million and $1.8 million at December 31, 2023 and 2022, respectively. Amounts are also net of unrecognized purchase discounts of $2.0 million and $2.6 million at December 31, 2023 and 2022, respectively. Amortized cost excludes accrued interest, which totaled $6.6 million and $6.1 million at December 31, 2023 and 2022, respectively, and is included in interest receivable and other assets in the consolidated statements of condition.
Schedule of Financing Receivable Credit Quality Indicators
The following tables present the loan portfolio by loan portfolio class, origination/renewal year and internal risk rating as of December 31, 2023 and 2022. The current year vintage table reflects gross charge-offs by portfolio class and year of origination. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to perm loans, are presented by year of origination.
(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
December 31, 202320232022202120202019PriorTotal
Commercial and industrial:
Pass and Watch$25,615 $9,187 $2,970 $3,718 $15,128 $21,004 $62,486 $140,108 
Special Mention— — — — 334 — 9,300 9,634 
Substandard— — — — 1,311 2,697 — 4,008 
Total commercial and industrial$25,615 $9,187 $2,970 $3,718 $16,773 $23,701 $71,786 $153,750 
Gross current period charge-offs$— $— $— $(4)$(3)$(3)$(1)$(11)
Commercial real estate, owner-occupied:
Pass and Watch$13,128 $41,808 $49,887 $37,708 $40,994 $114,018 $56 $297,599 
Special Mention1,431 4,498 15,636 820 286 8,902 — 31,573 
Substandard— 2,231 — — — 1,778 — 4,009 
Total commercial real estate, owner-occupied$14,559 $48,537 $65,523 $38,528 $41,280 $124,698 $56 $333,181 
Gross current period charge-offs$— $— $— $— $(406)$— $— $(406)
Commercial real estate, non-owner occupied:
Pass and Watch$76,718 $172,028 $196,340 $150,831 $139,860 $368,675 $9,832 $1,114,284 
Special Mention— 2,790 9,498 11,776 15,708 41,602 — 81,374 
Substandard878 272 2,204 — — 20,373 — 23,727 
Total commercial real estate, non-owner occupied
$77,596 $175,090 $208,042 $162,607 $155,568 $430,650 $9,832 $1,219,385 
Construction:
Pass and Watch$13,138 $24,403 $19,521 $29,512 $— $— $— $86,574 
Special Mention12,590 — — — — — — 12,590 
Total construction$25,728 $24,403 $19,521 $29,512 $— $— $— $99,164 
Home equity:
Pass and Watch$— $— $— $— $— $734 $80,773 $81,507 
Substandard— — — — — 369 211 580 
Total home equity$— $— $— $— $— $1,103 $80,984 $82,087 
Other residential:
Pass and Watch$17,861 $20,114 $13,390 $25,637 $20,935 $20,571 $— $118,508 
Total other residential$17,861 $20,114 $13,390 $25,637 $20,935 $20,571 $— $118,508 
Installment and other consumer:
Pass and Watch$22,038 $14,528 $10,632 $4,687 $5,300 $9,399 $1,061 $67,645 
Total installment and other consumer$22,038 $14,528 $10,632 $4,687 $5,300 $9,399 $1,061 $67,645 
Gross current period charge-offs$(7)$(6)$(1)$(4)$— $(1)$(5)$(24)
Total loans:
Pass and Watch$168,498 $282,068 $292,740 $252,093 $222,217 $534,401 $154,208 $1,906,225 
Total Special Mention$14,021 $7,288 $25,134 $12,596 $16,328 $50,504 $9,300 $135,171 
Total Substandard$878 $2,503 $2,204 $— $1,311 $25,217 $211 $32,324 
Totals$183,397 $291,859 $320,078 $264,689 $239,856 $610,122 $163,719 $2,073,720 
Total gross current period charge-offs$(7)$(6)$(1)$(8)$(409)$(4)$(6)$(441)
(in thousands)Term Loans - Amortized Cost by Origination YearRevolving Loans Amortized Cost
December 31, 202220222021202020192018PriorTotal
Commercial and industrial:
Pass and Watch$15,349 $6,679 $7,603 $19,982 $5,362 $24,954 $84,655 $164,584 
Special Mention275 — — 2,272 3,836 — 402 6,785 
Substandard— — 1,252 — — 625 301 2,178 
Total commercial and industrial$15,624 $6,679 $8,855 $22,254 $9,198 $25,579 $85,358 $173,547 
Commercial real estate, owner-occupied:
Pass and Watch$54,188 $52,080 $40,369 $44,798 $29,856 $104,377 $— $325,668 
Special Mention— 16,199 — 304 5,255 4,493 — 26,251 
Substandard— — — 1,160 — 1,699 — 2,859 
Doubtful— — 99 — — — — 99 
Total commercial real estate, owner-occupied$54,188 $68,279 $40,468 $46,262 $35,111 $110,569 $— $354,877 
Commercial real estate, non-owner occupied:
Pass and Watch$177,822 $211,228 $155,278 $160,670 $129,166 $308,509 $57 $1,142,730 
Special Mention— 1,172 12,097 3,934 678 9,290 — 27,171 
Substandard— 2,264 — — — 19,724 — 21,988 
Total commercial real estate, non-owner occupied
$177,822 $214,664 $167,375 $164,604 $129,844 $337,523 $57 $1,191,889 
Construction:
Pass and Watch$49,262 $19,393 $28,861 $7,745 $9,112 $— $— $114,373 
Total construction$49,262 $19,393 $28,861 $7,745 $9,112 $— $— $114,373 
Home equity:
Pass and Watch$— $— $— $— $— $883 $86,971 $87,854 
Substandard— — — — — 480 414 894 
Total home equity$— $— $— $— $— $1,363 $87,385 $88,748 
Other residential:
Pass and Watch$21,154 $14,547 $29,018 $21,890 $11,064 $14,450 $— $112,123 
Total other residential$21,154 $14,547 $29,018 $21,890 $11,064 $14,450 $— $112,123 
Installment and other consumer:
Pass and Watch$20,054 $13,022 $5,727 $6,492 $4,181 $6,478 $944 $56,898 
Substandard— — — — — 91 — 91 
Total installment and other consumer$20,054 $13,022 $5,727 $6,492 $4,181 $6,569 $944 $56,989 
Total loans:
Pass and Watch$337,829 $316,949 $266,856 $261,577 $188,741 $459,651 $172,627 $2,004,230 
Total Special Mention$275 $17,371 $12,097 $6,510 $9,769 $13,783 $402 $60,207 
Total Substandard$— $2,264 $1,252 $1,160 $— $22,619 $715 $28,010 
Total Doubtful$— $— $99 $— $— $— $— $99 
Totals$338,104 $336,584 $280,304 $269,247 $198,510 $496,053 $173,744 $2,092,546 
Schedule of Past Due Financing Receivables
The following table shows the amortized cost of loans by portfolio class, payment aging and non-accrual status as of December 31, 2023 and 2022.

Loan Aging Analysis by Portfolio Class
(in thousands)Commercial and industrialCommercial real estate, owner-occupied
Commercial real estate, non-owner occupied
ConstructionHome equityOther residentialInstallment and other consumerTotal
December 31, 2023        
30-59 days past due$2,991 $618 $— $— $43 $83 $195 $3,930 
60-89 days past due69 — 2,204 — — — 2,274 
90 days or more past due 1
1,311 149 — — — — — 1,460 
Total past due4,371 767 2,204 — 43 83 196 7,664 
Current149,379 332,414 1,217,181 99,164 82,044 118,425 67,449 2,066,056 
Total loans 1
$153,750 $333,181 $1,219,385 $99,164 $82,087 $118,508 $67,645 $2,073,720 
Non-accrual loans 2
$4,008 $434 $3,081 $— $469 $— $— $7,992 
Non-accrual loans with no allowance$1,311 $434 $877 $— $469 $— $— $3,091 
December 31, 2022        
30-59 days past due$$— $— $— $319 $93 $$420 
60-89 days past due— — — — 244 — — 244 
90 days or more past due 1
264 — — — 414 — — 678 
Total past due267 — — — 977 93 1,342 
Current173,280 354,877 1,191,889 114,373 87,771 112,030 56,984 2,091,204 
Total loans 1
$173,547 $354,877 $1,191,889 $114,373 $88,748 $112,123 $56,989 $2,092,546 
Non-accrual loans 2
$— $1,563 $— $— $778 $— $91 $2,432 
Non-accrual loans with no allowance$— $1,563 $— $— $778 $— $91 $2,432 
1 There were no non-performing loans past due more than ninety days and accruing interest at December 31, 2023 and 2022.
2 None of the non-accrual loans as of December 31, 2023 or 2022 were earning interest on a cash basis. We recognized no interest income on non-accrual loans in 2023, 2022 or 2021. Accrued interest of $206 thousand and $48 thousand was reversed from interest income for the loans that were placed on non-accrual status in 2023 and 2022, respectively. No interest income was reversed for the single loan that was placed on non-accrual status in 2021.
Schedule of Collateral Dependent Loans
The following table presents the amortized cost basis of individually analyzed collateral-dependent loans, which were all on non-accrual status, by portfolio class and collateral type as of December 31, 2023 and 2022.
Amortized Cost by Collateral Type
(in thousands)Commercial Real EstateResidential Real EstateOther
Total1
Allowance for Credit Losses
December 31, 2023
Commercial and industrial$1,311 $— $— $1,311 $— 
Commercial real estate, owner-occupied434 — — 434 — 
Commercial real estate, non-owner occupied
3,081 — — 3,081 408 
Home equity— 469 — 469 — 
Total$4,826 $469 $— $5,295 $408 
December 31, 2022
Commercial real estate, owner-occupied$1,563 $— $— $1,563 $— 
Home equity— 778 — 778 — 
Installment and other consumer— — 91 91 — 
Total$1,563 $778 $91 $2,432 $— 
1There were no collateral-dependent residential real estate mortgage loans in process of foreclosure or in substance repossessed at December 31, 2023 and 2022.
The weighted average loan-to-value of collateral-dependent loans was approximately 70% and 42% at December 31, 2023 and 2022, respectively.
Schedule of Troubled Debt Restructurings on Financing Receivables
The following table summarizes the amortized cost of loans as of December 31, 2023 modified for borrowers experiencing financial difficulty during the year ended December 31, 2023 by portfolio class and type of modification granted.
(in thousands)
Term Extension
Percent of Portfolio Class Total
December 31, 2023
Commercial real estate, owner-occupied
$1,431 0.4 %
Commercial real estate, non-owner occupied
878 0.1 %
Total
$2,309 
The following table summarizes the financial effect of loan modifications presented in the table above during the year ended December 31, 2023 by portfolio class.
(in thousands)Weighted-Average Term Extension (in years)
Year ended December 31, 2023
Commercial real estate, owner-occupied
2.3
Commercial real estate, non-owner occupied
0.5
The following table summarizes the amortized cost and payment status of loans as of December 31, 2023 that were modified during the year ended December 31, 2023 by portfolio class.
(in thousands)
Current
30-59 Days Past Due60-89 Days Past Due
90 Days or More Past Due
Total
Non-Accrual
December 31, 2023
Commercial real estate, owner-occupied
$1,431 $— $— $— $1,431 $— 
Commercial real estate, non-owner occupied
878 — — — 878 878 
Total
$2,309 $— $— $— $2,309 $878 
Schedule of Allowance for Credit Losses on Financing Receivables
The following table presents the details of the allowance for credit losses on loans segregated by loan portfolio class as of December 31, 2023 and 2022.

Allocation of the Allowance for Credit Losses on Loans
(in thousands)Commercial and industrialCommercial real estate, owner-occupiedCommercial real estate, non-owner occupiedConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
December 31, 2023
        
Modeled expected credit losses$897 $1,270 $7,380 $185 $482 $619 $634 $— $11,467 
Qualitative adjustments622 1,205 6,327 1,647 70 33 342 2,038 12,284 
Specific allocations193 1,226 — — — — 1,421 
Total$1,712 $2,476 $14,933 $1,832 $552 $653 $976 $2,038 $25,172 
December 31, 2022
        
Modeled expected credit losses$1,079 $1,497 $7,937 $453 $504 $571 $610 $— $12,651 
Qualitative adjustments706 990 4,739 1,484 54 24 258 2,068 10,323 
Specific allocations— — — — — — — 
Total$1,794 $2,487 $12,676 $1,937 $558 $595 $868 $2,068 $22,983 
The following table discloses activity in the allowance for credit losses for the periods presented.
Allowance for Credit Losses on Loans Rollforward
(in thousands)Commercial and industrialCommercial real estate, owner-occupied
Commercial real estate, non-owner occupied
ConstructionHome equityOther residentialInstallment and other consumerUnallocatedTotal
Year ended December 31, 2023
Beginning balance$1,794 $2,487 $12,676 $1,937 $558 $595 $868 $2,068 $22,983 
(Reversal) provision (100)395 2,257 (130)(6)58 131 (30)2,575 
(Charge-offs)(11)(406)— — — — (24)— (441)
Recoveries29 — — 25 — — — 55 
Ending balance$1,712 $2,476 $14,933 $1,832 $552 $653 $976 $2,038 $25,172 
Year ended December 31, 2022
Beginning balance$1,709 $2,776 $12,739 $1,653 $595 $644 $621 $2,286 23,023 
Provision (reversal)72 (289)(63)251 (37)(49)270 (218)(63)
(Charge-offs)(9)— — — — — (23)— (32)
Recoveries22 — — 33 — — — — 55 
Ending balance$1,794 $2,487 $12,676 $1,937 $558 $595 $868 $2,068 $22,983 
Year ended December 31, 2021
Beginning balance$2,530 $2,778 $12,682 $1,557 $738 $998 $291 $1,300 $22,874 
(Reversal) provision (1,240)(561)(476)62 (193)(360)333 986 (1,449)
Initial allowance for PCD loans 1
405 559 533 — — — 1,505 
(Charge-offs)— — — — — — (5)— (5)
Recoveries14 — — 34 50 — — — 98 
Ending balance$1,709 $2,776 $12,739 $1,653 $595 $644 $621 $2,286 $23,023 
1 The initial allowance for purchased credit impaired ("PCD") loans relates to the AMRB merger discussed in Note 18, Merger.
Schedule of Related Party Transactions
The following table shows changes in net loans to related parties for each of the three years ended December 31, 2023, 2022 and 2021.
(in thousands)202320222021
Balance at beginning of year$6,445 $7,942 $6,423 
Additions— 1,525 — 
Assumed in the AMRB acquisition— — 4,037 
Repayments(613)(364)(2,518)
Reclassified due to a change in borrower status— (2,658)— 
Balance at end of year$5,832 $6,445 $7,942 
v3.24.0.1
Bank Premises and Equipment (Tables)
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Bank Premises and Equipment
A summary of bank premises and equipment follows:
December 31,
(in thousands)20232022
Leasehold improvements$16,578 $16,115 
Furniture and equipment11,336 12,762 
Buildings 1,248 1,217 
Land
1,170 1,170 
Finance lease right-of-use assets 1
608 616 
Subtotal30,940 31,880 
Accumulated depreciation and amortization(23,148)(23,746)
Bank premises and equipment, net$7,792 $8,134 
1 See Note 12, Commitments and Contingencies, for more information.
v3.24.0.1
Deposits (Tables)
12 Months Ended
Dec. 31, 2023
Deposits [Abstract]  
Schedule of Time Deposits
A stratification of time deposits is presented in the following table:

December 31,
(in thousands)20232022
Time deposits of less than or equal to $250 thousand$145,697 $74,421 
Time deposits of more than $250 thousand105,620 44,609 
Total time deposits$251,317 $119,030 
Schedule of Maturities for Time Deposits
Scheduled maturities of time deposits at December 31, 2023 are as follows:
(in thousands)20242025202620272028ThereafterTotal
Scheduled time deposit maturities$233,726 $6,760 $5,510 $2,705 $2,616 $— $251,317 
Schedule of Network Deposits The following table shows the composition of our network deposits at December 31, 2023 and 2022.
(in thousands)December 31, 2023December 31, 2022
Reciprocal 1
One-Way 1
Reciprocal 1
One-Way 1
CDARS$46,162 $2,164 $11,031 $2,162 
ICS245,577 — 100,749 — 
DDM132,276 — 62,219 — 
Total network deposits$424,015 $2,164 $173,999 $2,162 
1 Reciprocal deposits are on-balance-sheet while one-way deposits are off-balance-sheet.
v3.24.0.1
Borrowings and Other Obligations (Tables)
12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Borrowings
The carrying values, average balances and average rates on borrowings and other obligations as of and for the years ended December 31, 2023, 2022 and 2021 are summarized in the following table.
202320222021
(dollars in thousands)Carrying ValueAverage BalanceAverage RateCarrying ValueAverage BalanceAverage RateCarrying ValueAverage BalanceAverage Rate
FHLB short-term borrowings$— $164,299 5.10 %$112,000 $1,921 4.48 %$— $— — %
FHLB fixed-rate advances— — — %— — — %— 642 1.18 %
Federal funds lines of credit— — — %— — — %— — — %
FRBSF short-term borrowings under the BTFP26,000 56,959 5.30 %— — — %— — — %
Other obligations (finance leases)298 364 1.88 %$439 $374 0.65 %419 250 0.71 %
Total borrowings and other obligations$26,298 $221,623 5.15 %$112,439 $2,295 3.90 %$419 $892 1.08 %
Subordinated Debenture: As part of an acquisition, Bancorp assumed a subordinated debenture with a contractual balance of $4.1 million due to NorCal Community Bancorp Trust II (the "Trust"), established for the sole purpose of issuing trust preferred securities. On March 15, 2021, Bancorp redeemed in full the $2.8 million (book value) subordinated debenture due to the Trust, which had a 251.5% effective rate in 2021, and included accelerated accretion of the $1.3 million remaining purchase discount due to the early redemption.
v3.24.0.1
Stockholders' Equity and Stock Plans (Tables)
12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Schedule of Information of Cashless Exercise Prices The table below depicts the total number of shares, amount, and weighted average price withheld for cashless exercises in each of the respective years.
December 31, 2023December 31, 2022December 31, 2021
Number of shares withheld3,132 11,505 27,929 
Total amount withheld (in thousands)$86 $393 $1,085 
Weighted-average price$27.57 $34.13 $38.85 
Schedule of Share-based Compensation, Stock Options, Activity
A summary of stock option activity for the years ended December 31, 2023, 2022, and 2021 is presented in the following table. The intrinsic value of options outstanding and exercisable is calculated as the number of in-the-money options times the difference between the market price of our stock and the exercise prices of the in-the-money options as of each year-end period presented.
Number of SharesWeighted Average Exercise Price Aggregate Intrinsic Value
(in thousands)
Weighted Average Grant-Date Fair ValueWeighted Average Remaining Contractual Term
(in years)
Options outstanding at December 31, 2020
371,584 $29.92 $2,262 5.12
Granted55,861 36.39 8.84 
Cancelled, expired or forfeited(2,008)42.50 
Exercised(60,056)23.01 885 
Options outstanding at December 31, 2021
365,381 31.97 2,326 5.57
Exercisable (vested) at December 31, 2021
315,744 30.85 2,264 5.15
Options outstanding at December 31, 2021
365,381 31.97 2,326 5.57
Granted39,094 34.16 8.49 
Cancelled, expired or forfeited(23,760)37.48 
Exercised(51,010)23.01 617 
Options outstanding at December 31, 2022
329,705 33.22 813 5.59
Exercisable (vested) at December 31, 2022
287,228 32.81 813 5.15
Options outstanding at December 31, 2022
329,705 33.22 813 5.59
Granted10,040 32.54 8.49 
Cancelled, expired or forfeited(23,804)35.06 
Exercised(12,164)20.25 88 
Options outstanding at December 31, 2023
303,777 33.22 4.86
Exercisable (vested) at December 31, 2023
283,578 33.46 4.65
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range
A summary of the options outstanding and exercisable by price range as of December 31, 2023 is presented in the following table:
Stock Options Outstanding as of December 31, 2023
 Stock Options Exercisable as of December 31, 2023
Range of Exercise PricesStock Options OutstandingRemaining Contractual Life (in years)Weighted Average Exercise PriceStock Options ExercisableWeighted Average Exercise Price
$10.00 - $20.00
402 3.1$19.96 402 $19.96 
$20.01 - $30.00
73,080 1.524.6473,080 24.64
$30.01 - $40.00
171,457 6.034.48151,258 34.39
$40.01 - $50.00
58,838 5.642.1358,838 42.13
303,777 283,578 
Schedule of Unrecognized Compensation Cost, Nonvested Awards
The following table summarizes non-vested restricted stock awards and changes during the years ended December 31, 2023, 2022, and 2021.
Number of SharesWeighted Average Grant-Date Fair Value
Non-vested awards at December 31, 2020
61,328 $39.50 
Granted30,742 38.00 
Vested(26,392)36.81 
Cancelled or forfeited(3,848)33.96 
Non-vested awards at December 31, 2021
61,830 40.25 
Granted46,672 34.03 
Vested(12,444)41.49 
Cancelled or forfeited(13,692)41.80 
Non-vested awards at December 31, 2022
82,366 36.28 
Granted61,978 27.10 
Vested(15,768)36.24 
Cancelled or forfeited(21,024)36.86 
Non-vested awards at December 31, 2023
107,552 30.88 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
We determine the fair value of stock options at the grant date using the Black-Scholes pricing model that takes into account the stock price at the grant date, exercise price, and the following assumptions (weighted-average shown).
Years ended December 31,
202320222021
Risk-free interest rate3.94 %1.86 %0.98 %
Expected dividend yield on common stock3.07 %2.85 %2.57 %
Expected life in years5.06.06.1
Expected price volatility34.68 %33.44 %33.12 %
Schedule of Cash Dividends Paid to Common Shareholders
Presented below is a summary of cash dividends paid in 2023, 2022 and 2021 to common shareholders, recorded as a reduction from retained earnings. On January 25, 2024, the Board of Directors declared a $0.25 per share cash dividend, paid on February 15, 2024 to the shareholders of record at the close of business on February 8, 2024.
 Years ended December 31,
(in thousands except per share data)202320222021
Cash dividends to common stockholders$16,106 $15,673 $13,107 
Cash dividends per common share$1.00 $0.98 $0.94 
v3.24.0.1
Fair Value of Assets and Liabilities (Tables)
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis.
(in thousands)
 
Description of Financial Instruments
Carrying ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Measurement Categories: Changes in Fair Value Recorded In1
December 31, 2023    
Securities available for sale:    
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies$352,472 $— $352,472 $— OCI
SBA-backed securities$19,471 $— $19,471 $— OCI
Debentures of government sponsored agencies$66,862 $— $66,862 $— OCI
U.S. Treasury securities$10,623 $10,623 $— $— OCI
Obligations of state and political subdivisions$91,882 $— $91,882 $— OCI
Corporate bonds$10,718 $— $10,718 $— OCI
Derivative financial assets (interest rate contracts)$287 $— $287 $— NI
Derivative financial liabilities (interest rate contracts)$1,361 $— $1,361 $— NI
December 31, 2022    
Securities available for sale:   
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies$475,505 $— $475,505 $— OCI
SBA-backed securities$44,355 $— $44,355 $— OCI
Debentures of government sponsored agencies$135,106 $— $135,106 $— OCI
U.S. Treasury securities$10,269 $10,269 $— $— OCI
Obligations of state and political subdivisions$102,123 $— $102,123 $— OCI
Corporate bonds$33,276 $— $33,276 $— OCI
Asset-backed securities$1,462 $— $1,462 $— OCI
Derivative financial assets (interest rate contracts)$602 $— $602 $— NI
 1Other comprehensive income (loss) ("OCI") or net income ("NI").
Schedule of Fair Value Assets Measured on Non-recurring Basis
The following table presents the carrying value of assets measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of December 31, 2023 and 2022.
(in thousands)Carrying ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs 
(Level 3)
December 31, 2023
Other real estate owned$— $— $— $— 
December 31, 2022
Other real estate owned$455 $— $— $455 
Schedule of Fair Value by Balance Sheet Grouping
The table below is a summary of fair value estimates for financial instruments as of December 31, 2023 and 2022, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI"), lease obligations and non-maturity deposit liabilities. Additionally, we held shares of Federal Home Loan Bank ("FHLB") of San Francisco stock at cost as of December 31, 2023 and 2022, and Visa Inc. Class B common stock with no carrying value as of December 31, 2022, which was sold entirely in July of 2023. There were no impairments or changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer as of December 31, 2023 and 2022. See further discussion on values within Note 2, Investment Securities, above.
 December 31, 2023December 31, 2022
(in thousands)Carrying AmountsFair ValueFair Value HierarchyCarrying AmountsFair ValueFair Value Hierarchy
Financial assets (recorded at amortized cost)   
Cash and cash equivalents$30,453 $30,453 Level 1$45,424 $45,424 Level 1
Investment securities held-to-maturity925,198 814,830 Level 2972,207 845,239 Level 2
Loans, net of allowance for credit losses2,048,548 1,939,702 Level 32,069,563 1,993,866 Level 3
Interest receivable12,752 12,752 Level 213,069 13,069 Level 2
Financial liabilities (recorded at amortized cost)   
Time deposits251,317 252,824 Level 2119,030 118,333 Level 2
Federal Home Loan Bank overnight borrowings
— — 
Level 1
112,000 112,000 
Level 1
FRBSF short-term borrowings under the BTFP
26,000 25,998 Level 2— — Level 2
Interest payable2,752 2,752 Level 275 75 Level 2
v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Provision
The current and deferred components of the income tax provision for each of the three years ended December 31 are as follows:
(in thousands)202320222021
Current tax provision
Federal$3,234 $10,670 $6,627 
State2,823 6,687 4,815 
Total current tax provision6,057 17,357 11,442 
Deferred tax provision (benefit)
Federal319 (441)274 
State(235)(58)
Total deferred tax provision (benefit)
84 (434)216 
Total income tax provision$6,141 $16,923 $11,658 
Schedule of Deferred Tax Assets and Liabilities
The following table shows the tax effect of our cumulative temporary differences as of December 31:
(in thousands)20232022
Deferred tax assets:
Net unrealized losses on securities available-for-sale$20,993 $29,458 
Allowance for credit losses on loans and unfunded loan commitments7,775 7,229 
Operating and finance lease liabilities6,860 8,002 
Deferred compensation and salary continuation plans3,289 3,481 
Accrued but unpaid expenses1,709 1,751 
Net operating loss carryforwards1,136 1,239 
Fair value adjustment on acquired loans695 905 
Stock-based compensation632 697 
State franchise tax593 1,396 
Depreciation and disposals on premises and equipment179 236 
Other74 194 
  Total gross deferred tax assets43,935 54,588 
Deferred tax liabilities:
Operating and finance lease right-of-use assets(6,092)(7,465)
Deferred loan origination costs and fees(1,435)(1,476)
Core deposit intangible assets(1,113)(1,512)
Other(226)(279)
  Total gross deferred tax liabilities(8,866)(10,732)
Net deferred tax assets$35,069 $43,856 
Schedule of Effective Income Tax Rate Reconciliation
The effective tax rate for 2023, 2022 and 2021 differs from the current federal statutory income tax rate as follows:
202320222021
Federal statutory income tax rate21.0 %21.0 %21.0 %
Increase (decrease) due to:
California franchise tax, net of federal tax benefit7.9 %8.3 %8.4 %
Tax exempt interest on municipal securities and loans(3.1)%(1.9)%(2.5)%
Tax exempt earnings on bank owned life insurance(1.5)%(0.4)%(1.0)%
Non-deductible acquisition related expenses— %— %0.6 %
Non-deductible executive compensation— %— %0.4 %
Low income housing and qualified zone academy bond tax credits(0.6)%(0.2)%(0.4)%
Stock-based compensation and excess tax deficiencies (benefits)0.2 %— %(0.1)%
Other(0.3)%(0.2)%(0.4)%
Effective Tax Rate23.6 %26.6 %26.0 %
v3.24.0.1
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Operating and Finance Lease Right-of-use Assets and Lease Liabilities
The following table shows the balances of operating and finance lease right-of-use assets and lease liabilities as of December 31, 2023 and 2022.
(in thousands)December 31, 2023December 31, 2022
Operating leases:
Operating lease right-of-use assets$20,316 $24,821 
Operating lease liabilities22,906 26,639 
Finance leases:
Finance lease right-of-use assets608 616 
Accumulated amortization(319)(187)
Finance lease right-of-use assets, net1
$289 $429 
Finance lease liabilities2
$298 $439 
1 Included in premises and equipment in the consolidated statements of condition.
2 Included in borrowings and other obligations in the consolidated statements of condition.
Schedule of Components of Operating and Finance Lease Cost
The following table shows supplemental disclosures of noncash investing and financing activities for the years ended December 31, 2023, 2022 and 2021.
(in thousands)202320222021
Right-of-use assets obtained in exchange for operating lease liabilities$437 $6,116 $2,376 
Right-of-use assets obtained in exchange for finance lease liabilities$$151 $444 

The following table shows components of operating and finance lease cost for the years ended December 31, 2023, 2022 and 2021.
(in thousands)202320222021
Operating lease cost1
$5,493 $5,356 $4,823 
Variable lease cost— — — 
Total operating lease cost$5,493 $5,356 $4,823 
Finance lease cost:
Amortization of right-of-use assets2
$147 $127 $96 
Interest on finance lease liabilities3
Total finance lease cost$154 $130 $98 
Total lease cost$5,647 $5,486 $4,921 
1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income (loss).
2 Included in depreciation and amortization in the consolidated statements of comprehensive income (loss).
3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income (loss).
Schedule of Finance Lease Liability Maturities
The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of December 31, 2023. Total minimum lease payments do not include future minimum payment obligations of approximately $2.0 million, excluding renewal options, for an operating lease agreement related to an existing retail branch that commenced subsequent to December 31, 2023. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the lease commencement date.
(in thousands)December 31, 2023
YearOperating LeasesFinance Leases
2024$4,753 $155 
20254,112 108 
20263,373 38 
20273,096 
20282,710 — 
Thereafter7,308 — 
Total minimum lease payments25,352 306 
Amounts representing interest (present value discount)(2,446)(8)
Present value of net minimum lease payments (lease liability)$22,906 $298 
Weighted average remaining term (in years)7.32.2
Weighted average discount rate2.40 %2.07 %
v3.24.0.1
Derivative Financial Instruments and Hedging Activities (Tables)
12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
Information on our derivatives follows:
 Asset derivativesLiability derivatives
(in thousands)December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Available-for-sale securities:
Interest rate swaps - notional amount$— $— $101,770 $— 
Interest rate swaps - fair value1
$— $— $1,359 $— 
Loans receivable:
Interest rate contracts - notional amount$6,441 $12,046 $2,157 $— 
Interest rate contracts - fair value1
$287 $602 $$— 
1 Refer to Note 9, Fair Value of Assets and Liabilities, for valuation methodology.
The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of December 31, 2023 and 2022.
Carrying Amounts of Hedged AssetsCumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets
(in thousands)December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Available-for-sale securities 1
$107,181 $— $(1,359)$— 
Loans receivable 2
$8,183 $11,319 $(367)$(726)
1 Carrying value equals the amortized cost basis of the securities underlying the hedge relationship, which is the book value net of the fair value hedge adjustment. Amortized cost excludes accrued interest totaling $222 thousand as of December 31, 2023.
2 Carrying value equals the amortized cost basis of the loans underlying the hedge relationship, which is the loan balance net of deferred loan origination fees and cost and the fair value hedge adjustment. Amortized cost excludes accrued interest, which was not material.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
 Years ended December 31,
(in thousands)202320222021
Interest on investment securities 1
Decrease in fair value of interest rate swaps hedging available-for-sale securities$(1,359)$— $— 
Hedged interest earned (paid)367 — — 
Increase in carrying value included in the hedged available-for-sale securities1,359 — — 
Net gain recognized in interest income on investment securities$367 $— $— 
Interest and fees on loans 1
(Decrease) increase in fair value of interest rate swaps hedging loans receivable$(317)$1,687 $827 
Hedged interest earned (paid)268 (143)(369)
Increase (decrease) in carrying value included in the hedged loans359 (1,666)(814)
Decrease in value of yield maintenance agreement(9)(10)(11)
Net gain (loss) recognized in interest income on loans$301 $(132)$(367)
1 Represents the income line item in the statements of comprehensive income (loss) in which the effects of fair value hedges are recorded.
Schedule of Offsetting Liabilities Information on financial instruments that are eligible for offset in the consolidated statements of condition follows:
Offsetting of Financial Assets and Derivative Assets
Gross AmountsNet AmountsGross Amounts Not Offset in the Statements of Condition
Gross AmountsOffset in theof Assets Presented
of RecognizedStatements ofin the StatementsFinancialCash Collateral
(in thousands)
Assets 1
Condition
of Condition 1
InstrumentsReceivedNet Amount
December 31, 2023
   Counterparty$287 $— $287 $— $— $287 
Total$287 $ $287 $ $ $287 
December 31, 2022
   Counterparty$602 $— $602 $— $— $602 
Total$602 $ $602 $ $ $602 
Offsetting of Financial Liabilities and Derivative Liabilities
Gross Amounts of Recognized Liabilities 1
Gross Amounts Offset in the Statements of Condition
Net Amounts of Liabilities Presented in the Statements of Condition 1
Gross Amounts Not Offset in the Statements of Condition
Financial InstrumentsCash Collateral Pledged
(in thousands)Net Amount
December 31, 2023
   Counterparty$1,361 $— $1,361 $(287)(330)$744 
Total$1,361 $ $1,361 $(287)$(330)$744 
December 31, 2022
   Counterparty$— $— $— $— — $— 
Total$ $ $ $ $ $ 
1 Amounts exclude accrued interest on swaps.
v3.24.0.1
Regulatory Matters (Tables)
12 Months Ended
Dec. 31, 2023
Regulatory Assets and Liabilities Disclosure [Abstract]  
Schedule of Capital Adequacy Ratios
The Bancorp’s and Bank's capital adequacy ratios as of December 31, 2023 and 2022 are presented in the following tables.
Bancorp Capital Ratios
(dollars in thousands)
Actual
Adequately Capitalized Threshold 1
Threshold to be a Well Capitalized Bank Holding Company
December 31, 2023AmountRatioAmountRatioAmountRatio
Total Capital (to risk-weighted assets)$440,842 16.89 %$274,002 10.50 %$260,954 10.00 %
Tier 1 Capital (to risk-weighted assets)$415,224 15.91 %$221,811 8.50 %$208,763 8.00 %
Tier 1 Leverage Capital (to average assets)$415,224 10.46 %$158,771 4.00 %$198,464 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$415,224 15.91 %$182,668 7.00 %$169,620 6.50 %
December 31, 2022      
Total Capital (to risk-weighted assets)$431,667 15.90 %$285,079 10.50 %$271,504 10.00 %
Tier 1 Capital (to risk-weighted assets)$407,912 15.02 %$230,778 8.50 %$217,203 8.00 %
Tier 1 Leverage Capital (to average assets)$407,912 9.60 %$169,948 4.00 %$212,435 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$407,912 15.02 %$190,053 7.00 %$176,478 6.50 %
Bank Capital Ratios
(dollars in thousands)
Actual
Adequately Capitalized Threshold 1
Threshold to be Well Capitalized under Prompt Corrective Action Provisions
December 31, 2023AmountRatioAmountRatioAmountRatio
Total Capital (to risk-weighted assets)$433,598 16.62 %$273,986 10.50 %$260,939 10.00 %
Tier 1 Capital (to risk-weighted assets)$407,981 15.64 %$221,798 8.50 %$208,751 8.00 %
Tier 1 Leverage Capital (to average assets)$407,981 10.28 %$158,767 4.00 %$198,459 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$407,981 15.64 %$182,657 7.00 %$169,610 6.50 %
December 31, 2022      
Total Capital (to risk-weighted assets)$427,108 15.73 %$285,052 10.50 %$271,478 10.00 %
Tier 1 Capital (to risk-weighted assets)$403,352 14.86 %$230,757 8.50 %$217,183 8.00 %
Tier 1 Leverage Capital (to average assets)$403,352 9.49 %$169,940 4.00 %$212,425 5.00 %
Common Equity Tier 1 (to risk-weighted assets)$403,352 14.86 %$190,035 7.00 %$176,461 6.50 %
1 Except for Tier 1 Leverage Capital, the adequately capitalized thresholds reflect the regulatory minimum plus a 2.5% capital conservation buffer as required under the Basel III Capital Standards in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses.
v3.24.0.1
Financial Instruments with Off-Balance Sheet Risk (Tables)
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Contractual Amount, Off-Balance Sheet Risks
The contractual amount of unfunded loan commitments and standby letters of credit not reflected in the consolidated statements of condition are as follows:
(in thousands)December 31, 2023December 31, 2022
Commercial lines of credit$259,989 $292,204 
Revolving home equity lines218,935 218,907 
Undisbursed construction loans13,943 43,179 
Personal and other lines of credit9,136 10,842 
Standby letters of credit3,147 1,738 
   Total unfunded loan commitments and standby letters of credit$505,150 $566,870 
v3.24.0.1
Condensed Bank of Marin Bancorp Parent Only Financial Statements (Tables)
12 Months Ended
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule of Condensed Balance Sheet
Presented below is financial information for Bank of Marin Bancorp, parent holding company only.
CONDENSED UNCONSOLIDATED STATEMENTS OF CONDITION
December 31, 2023 and 2022
(in thousands)20232022
Assets
   Cash and due from Bank of Marin$7,189 $4,493 
   Investment in bank subsidiary431,819 407,532 
   Other assets156 255 
     Total assets$439,164 $412,280 
Liabilities and Stockholders' Equity
   Accrued expenses payable$102 $188 
   Other liabilities— — 
     Total liabilities102 188 
   Stockholders' equity439,062 412,092 
     Total liabilities and stockholders' equity$439,164 $412,280 
Schedule of Condensed Income Statement
CONDENSED UNCONSOLIDATED STATEMENTS OF INCOME
Years ended December 31, 2023, 2022 and 2021
(in thousands)202320222021
Income
   Dividends from bank subsidiary$20,000 $16,200 $64,000 
   Miscellaneous income— — — 
     Total income20,000 16,200 64,000 
Expense
   Interest expense— — 1,361 
   Non-interest expense1,705 1,793 4,025 
     Total expense1,705 1,793 5,386 
Income before income taxes and equity in undistributed net income of subsidiary18,295 14,407 58,614 
   Income tax benefit504 530 1,235 
Income before equity in undistributed net income of subsidiary18,799 14,937 59,849 
Earnings of bank subsidiary greater (less) than dividends received from bank subsidiary1,096 31,649 (26,621)
     Net income$19,895 $46,586 $33,228 
Schedule of Condensed Cash Flow Statement
CONDENSED UNCONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2023, 2022 and 2021
(in thousands)202320222021
Cash Flows from Operating Activities:
Net income$19,895 $46,586 $33,228 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Earnings of bank subsidiary (greater) less than dividends received from bank subsidiary(1,096)(31,649)26,621 
Accretion of discount on subordinated debenture— — 1,347 
Noncash director compensation expense60 36 35 
Net changes in:
Other assets99 (12)(1,655)
Other liabilities(86)(129)(88)
Net cash provided by operating activities18,872 14,832 59,488 
Cash Flows from Investing Activities:
Capital contribution to bank subsidiary(276)(899)(619)
Net cash used in investing activities(276)(899)(619)
Cash Flows from Financing Activities:
Repayment of subordinated debenture including execution costs— — (4,126)
Restricted stock surrendered for tax withholdings upon vesting(70)(40)(166)
Cash dividends paid on common stock(16,106)(15,673)(13,107)
Stock repurchased, including commissions— (1,250)(40,762)
Proceeds from stock options exercised and stock issued under employee and director stock purchase plans276 899 587 
Net cash used in financing activities(15,900)(16,064)(57,574)
Net increase (decrease) in cash and cash equivalents2,696 (2,131)1,295 
Cash and cash equivalents at beginning of year4,493 6,624 5,329 
Cash and cash equivalents at end of year$7,189 $4,493 $6,624 
Supplemental schedule of noncash investing and financing activities:
Stock issued in payment of director fees$398 $355 $217 
Repurchase of stock not yet settled$— $— $373 
Stock issued to ESOP$1,315 $1,233 $1,330 
v3.24.0.1
Merger (Tables)
12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Consideration Paid for AMRB In addition, merger consideration included cash paid for outstanding stock options and cash paid in lieu of fractional shares, as summarized in the following table.
(in thousands)Merger Consideration
Value of common stock consideration paid to shareholders (0.575 fixed exchange ratio, stock price $36.15)
$124,401 
Cash consideration for stock options63
Cash paid in lieu of fractional shares13
Total merger consideration$124,477 
Schedule of Merger-Related One-Time and Conversion Costs Bancorp's pretax merger-related costs reflected in the consolidated statements of comprehensive income (loss) are summarized in the following table.
Years ended December 31,
(in thousands)202320222021
Personnel and severance$— $393 $3,005 
Professional services— 67 1,976 
Data processing— 77 1,127 
Other expense— 321 350 
Total merger-related and conversion costs$— $858 $6,458 
v3.24.0.1
Summary of Significant Accounting Policies - Nature of Operations and Basis of Presentation (Details)
12 Months Ended
Dec. 31, 2023
commercialBankingOffice
county
segment
retailBranch
Accounting Policies [Abstract]  
Number of retail branches | retailBranch 27
Number of commercial banking offices | commercialBankingOffice 8
Number of counties | county 10
Number of reportable segments 1
Number of operating segments 1
v3.24.0.1
Summary of Significant Accounting Policies - Financing Receivable Narrative (Details)
12 Months Ended
Dec. 31, 2023
payment
Accounting Policies [Abstract]  
Threshold period a past due loan is charged off 90 days
Number of consecutive payments considered sustained repayment performance 6
Threshold period a past due overdraft account is charged off 60 days
v3.24.0.1
Summary of Significant Accounting Policies - Transfer of Financial Assets (Details) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]      
Gain (loss) on sale of financial assets $ 0 $ 0 $ 0
v3.24.0.1
Summary of Significant Accounting Policies - Premises and Equipment (Details)
Dec. 31, 2023
Furniture and equipment  
Property, Plant and Equipment [Line Items]  
Premises and equipment useful life 8 years
Minimum | Equipment  
Property, Plant and Equipment [Line Items]  
Premises and equipment useful life 3 years
Minimum | Buildings  
Property, Plant and Equipment [Line Items]  
Premises and equipment useful life 25 years
Maximum | Equipment  
Property, Plant and Equipment [Line Items]  
Premises and equipment useful life 20 years
Maximum | Buildings  
Property, Plant and Equipment [Line Items]  
Premises and equipment useful life 30 years
v3.24.0.1
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]      
Goodwill $ 72,754,000 $ 72,754,000  
Goodwill impairment $ 0 0 $ 0
Core deposit intangible      
Finite-Lived Intangible Assets [Line Items]      
Useful life of core deposit intangible asset 10 years    
Impairment of intangible assets $ 0 $ 0 $ 0
v3.24.0.1
Summary of Significant Accounting Policies - Future Amortization Expense of Core Deposits (Details) - Core deposit intangible
$ in Thousands
Dec. 31, 2023
USD ($)
Finite-Lived Intangible Assets [Line Items]  
2024 $ 975
2025 875
2026 773
2027 634
2028 242
Thereafter 267
Total $ 3,766
v3.24.0.1
Summary of Significant Accounting Policies - Other Real Estate Owned (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]    
OREO valuation allowance adjustment $ 40 $ 345
v3.24.0.1
Summary of Significant Accounting Policies - Investments in Low Income Housing Tax Credit Funds (Details)
12 Months Ended
Dec. 31, 2023
Minimum  
Other Ownership Interests [Line Items]  
Ownership percentage in limited partnerships related to Low Income Housing Tax Credits 1.00%
Maximum  
Other Ownership Interests [Line Items]  
Ownership percentage in limited partnerships related to Low Income Housing Tax Credits 3.50%
v3.24.0.1
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share, Basic and Diluted [Abstract]      
Weighted average basic shares outstanding (in shares) 16,012 15,921 14,340
Potentially dilutive common shares related to:      
Potential common shares related to stock options (in shares) 3 31 62
Potential common shares related to unvested restricted stock awards (in shares) 11 17 20
Weighted average diluted shares outstanding (in shares) 16,026 15,969 14,422
Net income $ 19,895 $ 46,586 $ 33,228
Basic EPS (in dollars per share) $ 1.24 $ 2.93 $ 2.32
Diluted EPS (in dollars per share) $ 1.24 $ 2.92 $ 2.30
Weighted average anti-dilutive shares not included in the calculation of diluted EPS (in shares) 364 211 97
v3.24.0.1
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]      
Advertising costs $ 1,200 $ 1,100 $ 908
v3.24.0.1
Summary of Significant Accounting Policies - Other Recently Adopted Accounting Standards (Details)
Dec. 31, 2023
interest_rate_swap
Accounting Policies [Abstract]  
Number of interest rate derivatives held 3
v3.24.0.1
Investment Securities - Held-to-Maturity Amortized Cost and Fair Value (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost $ 925,198,000 $ 972,207,000
Allowance for Credit Losses 0 0
Net Carrying Amount 925,198,000 972,207,000
Held-to-maturity, gross unrealized gains 75,000 70,000
Held-to-maturity, gross unrealized losses (110,443,000) (127,038,000)
Held to maturity, fair value 814,830,000 845,239,000
Accrued interest 3,600,000 3,700,000
MBS pass-through securities issued by FHLMC, FNMA and GNMA    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost 306,261,000 331,281,000
Allowance for Credit Losses 0 0
Net Carrying Amount 306,261,000 331,281,000
Held-to-maturity, gross unrealized gains 0 0
Held-to-maturity, gross unrealized losses (44,396,000) (50,147,000)
Held to maturity, fair value 261,865,000 281,134,000
CMOs issued by FHLMC    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost 226,416,000 235,971,000
Allowance for Credit Losses 0 0
Net Carrying Amount 226,416,000 235,971,000
Held-to-maturity, gross unrealized gains 28,000 59,000
Held-to-maturity, gross unrealized losses (24,869,000) (29,503,000)
Held to maturity, fair value 201,575,000 206,527,000
CMOs issued by FNMA    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost 101,502,000 111,904,000
Allowance for Credit Losses 0 0
Net Carrying Amount 101,502,000 111,904,000
Held-to-maturity, gross unrealized gains 0 0
Held-to-maturity, gross unrealized losses (4,779,000) (5,419,000)
Held to maturity, fair value 96,723,000 106,485,000
CMOs issued by GNMA    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost 51,006,000 52,356,000
Allowance for Credit Losses 0 0
Net Carrying Amount 51,006,000 52,356,000
Held-to-maturity, gross unrealized gains 0 11,000
Held-to-maturity, gross unrealized losses (5,235,000) (3,076,000)
Held to maturity, fair value 45,771,000 49,291,000
SBA-backed securities    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost 1,853,000 2,372,000
Allowance for Credit Losses 0 0
Net Carrying Amount 1,853,000 2,372,000
Held-to-maturity, gross unrealized gains 0 0
Held-to-maturity, gross unrealized losses (90,000) (133,000)
Held to maturity, fair value 1,763,000 2,239,000
Debentures of government sponsored agencies    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost 146,126,000 145,823,000
Allowance for Credit Losses 0 0
Net Carrying Amount 146,126,000 145,823,000
Held-to-maturity, gross unrealized gains 0 0
Held-to-maturity, gross unrealized losses (21,994,000) (26,467,000)
Held to maturity, fair value 124,132,000 119,356,000
Obligations of state and political subdivisions    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost 62,034,000 62,500,000
Allowance for Credit Losses 0 0
Net Carrying Amount 62,034,000 62,500,000
Held-to-maturity, gross unrealized gains 47,000 0
Held-to-maturity, gross unrealized losses (7,884,000) (10,741,000)
Held to maturity, fair value 54,197,000 51,759,000
Corporate bonds    
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]    
Held to maturity, amortized cost 30,000,000 30,000,000
Allowance for Credit Losses 0 0
Net Carrying Amount 30,000,000 30,000,000
Held-to-maturity, gross unrealized gains 0 0
Held-to-maturity, gross unrealized losses (1,196,000) (1,552,000)
Held to maturity, fair value $ 28,804,000 $ 28,448,000
v3.24.0.1
Investment Securities - Narrative (Details)
1 Months Ended
Mar. 31, 2022
USD ($)
Dec. 31, 2023
USD ($)
security
Jul. 07, 2023
USD ($)
Dec. 31, 2022
USD ($)
security
Debt Securities, Available-for-sale [Line Items]        
Held-to-maturity, allowance for credit Loss   $ 0   $ 0
Transfer of securities from available-for-sale to held-to-maturity at fair value $ 357,500,000      
Net unrealized pre-tax loss   $ 61,454,000   $ 90,543,000
Number of investment securities in unrealized loss position | security   313   407
Number of investment securities in unrealized loss position longer than 12 months | security   306    
Number of investment securities in unrealized loss position less than 12 months | security   7    
Debt securities, available-for-sale unrealized loss position, allowance for credit loss   $ 0   $ 0
Interest rate swap        
Debt Securities, Available-for-sale [Line Items]        
Derivative notional amount   $ 8,600,000 $ 101,800,000  
Accumulated Other Comprehensive Income (Loss), Net of Tax        
Debt Securities, Available-for-sale [Line Items]        
Net unrealized pre-tax loss $ 14,800,000      
v3.24.0.1
Investment Securities - Schedule of Bond Ratings For Held-to-Maturity Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost $ 925,198 $ 972,207
Obligations of state and political subdivisions    
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost 62,034 62,500
Corporate bonds    
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost 30,000 30,000
Moody's And/Or Standard & Poor's AAA Rating | Obligations of state and political subdivisions    
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost 42,577 42,986
Moody's And/Or Standard & Poor's AAA Rating | Corporate bonds    
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost 0 0
Moody's And/Or Standard & Poor's AA Rating | Obligations of state and political subdivisions    
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost 19,457 19,514
Moody's And/Or Standard & Poor's AA Rating | Corporate bonds    
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost 0 0
Moody's And/Or Standard & Poor's A Rating | Obligations of state and political subdivisions    
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost 0 0
Moody's And/Or Standard & Poor's A Rating | Corporate bonds    
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]    
Held to maturity, amortized cost $ 30,000 $ 30,000
v3.24.0.1
Investment Securities - Schedule of Available-for-Sale Securities Amortized Cost and Fair Value (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost $ 613,479,000 $ 892,605,000
Available-for-sale, gross unrealized gains 3,000 34,000
Available-for-sale, gross unrealized losses (61,454,000) (90,543,000)
Allowance for Credit Losses 0 0
Available-for-sale securities $ 552,028,000 $ 802,096,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Interest receivable and other assets Interest receivable and other assets
Accrued interest $ 2,300,000 $ 3,200,000
MBS pass-through securities issued by FHLMC, FNMA and GNMA    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 81,937,000 109,736,000
Available-for-sale, gross unrealized gains 2,000 3,000
Available-for-sale, gross unrealized losses (9,516,000) (12,133,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 72,423,000 97,606,000
CMOs issued by FHLMC    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 266,407,000 347,437,000
Available-for-sale, gross unrealized gains 0 0
Available-for-sale, gross unrealized losses (24,758,000) (33,682,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 241,649,000 313,755,000
CMOs issued by FNMA    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 23,987,000 36,172,000
Available-for-sale, gross unrealized gains 0 0
Available-for-sale, gross unrealized losses (2,715,000) (3,852,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 21,272,000 32,320,000
CMOs issued by GNMA    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 20,006,000 35,120,000
Available-for-sale, gross unrealized gains 0 0
Available-for-sale, gross unrealized losses (2,878,000) (3,296,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 17,128,000 31,824,000
SBA-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 21,126,000 47,724,000
Available-for-sale, gross unrealized gains 0 2,000
Available-for-sale, gross unrealized losses (1,655,000) (3,371,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 19,471,000 44,355,000
Debentures of government sponsored agencies    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 73,899,000 149,114,000
Available-for-sale, gross unrealized gains 0 0
Available-for-sale, gross unrealized losses (7,037,000) (14,008,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 66,862,000 135,106,000
U.S. Treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 11,923,000 11,904,000
Available-for-sale, gross unrealized gains 0 0
Available-for-sale, gross unrealized losses (1,300,000) (1,635,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 10,623,000 10,269,000
Obligations of state and political subdivisions    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 102,202,000 116,855,000
Available-for-sale, gross unrealized gains 1,000 29,000
Available-for-sale, gross unrealized losses (10,321,000) (14,761,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 91,882,000 102,123,000
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 11,992,000 36,990,000
Available-for-sale, gross unrealized gains 0 0
Available-for-sale, gross unrealized losses (1,274,000) (3,714,000)
Allowance for Credit Losses 0 0
Available-for-sale securities 10,718,000 33,276,000
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, amortized cost 0 1,553,000
Available-for-sale, gross unrealized gains 0 0
Available-for-sale, gross unrealized losses 0 (91,000)
Allowance for Credit Losses 0 0
Available-for-sale securities $ 0 $ 1,462,000
v3.24.0.1
Investment Securities - Schedule of Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Held-to-maturity Securities, Amortized Cost    
Within one year $ 0 $ 450
After one but within five years 87,887 87,418
After five years through ten years 304,976 262,072
After ten years 532,335 622,267
Net Carrying Amount 925,198 972,207
Held-to-maturity Securities, Fair Value    
Within one year 0 446
After one but within five years 84,541 83,663
After five years through ten years 261,654 222,280
After ten years 468,635 538,850
Total 814,830 845,239
Available-for-sale Securities, Amortized Cost    
Within one year 101 1,254
After one but within five years 226,669 335,813
After five years through ten years 95,552 185,997
After ten years 291,157 369,541
Total 613,479 892,605
Available-for-sale Securities, Fair Value    
Within one year 100 1,239
After one but within five years 208,444 307,843
After five years through ten years 85,447 166,273
After ten years 258,037 326,741
Total $ 552,028 $ 802,096
v3.24.0.1
Investment Securities - Schedule of Sale of Investment Securities and Gross Gains and Losses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Available-for-sale:      
Sales proceeds $ 205,795 $ 10,664 $ 6,632
Gross realized gains 5 17 1
Gross realized losses (8,705) (80) (17)
Sale of equity securities:      
Sales proceeds 2,807 0 0
Gross realized gain $ 2,807 $ 0 $ 0
v3.24.0.1
Investment Securities - Schedule of Pledged and Transferred Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Available-for-sale securities pledged as collateral $ 938,959 $ 234,226
State of California    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Available-for-sale securities pledged as collateral 288,664 232,540
Public deposits    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Available-for-sale securities pledged as collateral 287,436 231,307
Trust deposits    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Available-for-sale securities pledged as collateral 666 669
Internal checking account    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Available-for-sale securities pledged as collateral 562 564
Bankruptcy trustee deposits    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Available-for-sale securities pledged as collateral 1,151 1,686
Pledged to FHLB Securities-Backed Credit Program    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Available-for-sale securities pledged as collateral 383,484 0
Pledged to the Federal Reserve "BTFP"    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Available-for-sale securities pledged as collateral $ 265,660 $ 0
v3.24.0.1
Investment Securities - Schedule of Unrealized Loss Positions (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months $ 62,124 $ 359,313
Greater than or equal to 12 continuous months 738,690 459,948
Total Securities in a loss position 800,814 819,261
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months (676) (23,733)
Greater than or equal to 12 continuous months (109,767) (103,305)
Held-to-maturity, gross unrealized losses (110,443) (127,038)
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 1,901 354,695
Available-for-sale, greater than 12 continuous months, fair value 549,289 443,274
Available-for-sale, total securities in a loss position, fair value 551,190 797,969
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss (8) (33,887)
Available-for-sale, greater than 12 continuous months, unrealized loss (61,446) (56,656)
Available-for-sale, total securities in a loss position, unrealized loss (61,454) (90,543)
Marketable Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Marketable securities, less than 12 continuous months, fair value 64,025 714,008
Marketable securities, greater than 12 continuous months, fair value 1,287,979 903,222
Marketable securities, total securities in a loss position, fair value 1,352,004 1,617,230
Marketable Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]    
Marketable securities, less than 12 continuous months, unrealized loss (684) (57,620)
Marketable securities, greater than 12 continuous months, unrealized loss (171,213) (159,961)
Marketable securities, total securities in a loss position, unrealized loss (171,897) (217,581)
MBS pass-through securities issued by FHLMC, FNMA and GNMA    
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months 0 62,627
Greater than or equal to 12 continuous months 261,865 218,507
Total Securities in a loss position 261,865 281,134
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months 0 (5,960)
Greater than or equal to 12 continuous months (44,396) (44,187)
Held-to-maturity, gross unrealized losses (44,396) (50,147)
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 0 44,630
Available-for-sale, greater than 12 continuous months, fair value 72,146 52,235
Available-for-sale, total securities in a loss position, fair value 72,146 96,865
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss 0 (4,501)
Available-for-sale, greater than 12 continuous months, unrealized loss (9,516) (7,632)
Available-for-sale, total securities in a loss position, unrealized loss (9,516) (12,133)
CMOs issued by FHLMC    
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months 8,662 78,144
Greater than or equal to 12 continuous months 188,657 113,796
Total Securities in a loss position 197,319 191,940
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months (21) (5,874)
Greater than or equal to 12 continuous months (24,848) (23,629)
Held-to-maturity, gross unrealized losses (24,869) (29,503)
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 1,235 169,760
Available-for-sale, greater than 12 continuous months, fair value 240,414 143,995
Available-for-sale, total securities in a loss position, fair value 241,649 313,755
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss (7) (15,144)
Available-for-sale, greater than 12 continuous months, unrealized loss (24,751) (18,538)
Available-for-sale, total securities in a loss position, unrealized loss (24,758) (33,682)
CMOs issued by FNMA    
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months 42,474 106,485
Greater than or equal to 12 continuous months 54,249 0
Total Securities in a loss position 96,723 106,485
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months (411) (5,419)
Greater than or equal to 12 continuous months (4,368) 0
Held-to-maturity, gross unrealized losses (4,779)  
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 0 8,214
Available-for-sale, greater than 12 continuous months, fair value 21,272 23,612
Available-for-sale, total securities in a loss position, fair value 21,272 31,826
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss 0 (374)
Available-for-sale, greater than 12 continuous months, unrealized loss (2,715) (2,922)
Available-for-sale, total securities in a loss position, unrealized loss (2,715) (3,296)
CMOs issued by GNMA    
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months 10,988 27,570
Greater than or equal to 12 continuous months 34,783 10,331
Total Securities in a loss position 45,771 37,901
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months (244) (1,676)
Greater than or equal to 12 continuous months (4,991) (1,400)
Held-to-maturity, gross unrealized losses (5,235) (3,076)
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 0 4,790
Available-for-sale, greater than 12 continuous months, fair value 17,128 27,529
Available-for-sale, total securities in a loss position, fair value 17,128 32,319
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss 0 (235)
Available-for-sale, greater than 12 continuous months, unrealized loss (2,878) (3,617)
Available-for-sale, total securities in a loss position, unrealized loss (2,878) (3,852)
SBA-backed securities    
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months 0 2,239
Greater than or equal to 12 continuous months 1,763 0
Total Securities in a loss position 1,763 2,239
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months 0 (133)
Greater than or equal to 12 continuous months (90) 0
Held-to-maturity, gross unrealized losses (90) (133)
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 0 37,845
Available-for-sale, greater than 12 continuous months, fair value 19,471 6,133
Available-for-sale, total securities in a loss position, fair value 19,471 43,978
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss 0 (3,228)
Available-for-sale, greater than 12 continuous months, unrealized loss (1,655) (143)
Available-for-sale, total securities in a loss position, unrealized loss (1,655) (3,371)
Debentures of government sponsored agencies    
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months 0 38,645
Greater than or equal to 12 continuous months 124,132 80,711
Total Securities in a loss position 124,132 119,356
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months 0 (2,530)
Greater than or equal to 12 continuous months (21,994) (23,937)
Held-to-maturity, gross unrealized losses (21,994) (26,467)
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 0 19,054
Available-for-sale, greater than 12 continuous months, fair value 66,862 116,052
Available-for-sale, total securities in a loss position, fair value 66,862 135,106
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss 0 (946)
Available-for-sale, greater than 12 continuous months, unrealized loss (7,037) (13,062)
Available-for-sale, total securities in a loss position, unrealized loss (7,037) (14,008)
U.S. Treasury securities    
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 0 0
Available-for-sale, greater than 12 continuous months, fair value 10,623 10,269
Available-for-sale, total securities in a loss position, fair value 10,623 10,269
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss 0 0
Available-for-sale, greater than 12 continuous months, unrealized loss (1,300) (1,635)
Available-for-sale, total securities in a loss position, unrealized loss (1,300) (1,635)
Obligations of state and political subdivisions    
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months 0 15,155
Greater than or equal to 12 continuous months 44,437 36,603
Total Securities in a loss position 44,437 51,758
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months 0 (589)
Greater than or equal to 12 continuous months (7,884) (10,152)
Held-to-maturity, gross unrealized losses (7,884) (10,741)
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 666 70,402
Available-for-sale, greater than 12 continuous months, fair value 90,655 28,711
Available-for-sale, total securities in a loss position, fair value 91,321 99,113
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss (1) (9,459)
Available-for-sale, greater than 12 continuous months, unrealized loss (10,320) (5,302)
Available-for-sale, total securities in a loss position, unrealized loss (10,321) (14,761)
Corporate bonds    
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 continuous months 0 28,448
Greater than or equal to 12 continuous months 28,804 0
Total Securities in a loss position 28,804 28,448
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract]    
Less than 12 continuous months 0 (1,552)
Greater than or equal to 12 continuous months (1,196) 0
Held-to-maturity, gross unrealized losses (1,196) (1,552)
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 0 0
Available-for-sale, greater than 12 continuous months, fair value 10,718 33,276
Available-for-sale, total securities in a loss position, fair value 10,718 33,276
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss 0 0
Available-for-sale, greater than 12 continuous months, unrealized loss (1,274) (3,714)
Available-for-sale, total securities in a loss position, unrealized loss (1,274) (3,714)
Asset-backed securities    
Debt Securities, Available-For-Sale, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Available-for-sale, less than 12 continuous months, fair value 0 0
Available-for-sale, greater than 12 continuous months, fair value 0 1,462
Available-for-sale, total securities in a loss position, fair value 0 1,462
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]    
Available-for-sale, less than 12 continuous months, unrealized loss 0 0
Available-for-sale, greater than 12 continuous months, unrealized loss 0 (91)
Available-for-sale, total securities in a loss position, unrealized loss $ 0 $ (91)
v3.24.0.1
Investment Securities - Non-Marketable Securities Included in Other Assets Narrative (Details) - USD ($)
12 Months Ended
Jul. 13, 2023
Dec. 31, 2023
Dec. 31, 2022
Feb. 21, 2024
Schedule of Equity Method Investments [Line Items]        
Federal home loan bank stock, par value (in usd per share)   $ 100    
Investments in low income housing tax credit funds   $ 2,000,000 $ 2,500,000  
Low income housing tax credits and other tax benefits   600,000    
Low income housing amortization expense   503,000    
Unfunded commitments for low income housing tax credit funds   344,000    
Impairment losses   $ 0 $ 0  
Subsequent event        
Schedule of Equity Method Investments [Line Items]        
Federal home loan bank, dividend rate percentage       8.75%
Visa Inc. Class B common stock        
Schedule of Equity Method Investments [Line Items]        
Equity securities, FV-NI gain $ 2,800,000      
Visa Inc. Class B common stock        
Schedule of Equity Method Investments [Line Items]        
Number of shares of securities carried at cost (in shares)   10,439 10,439  
Carrying value of securities carried at cost   $ 0 $ 0  
Other assets        
Schedule of Equity Method Investments [Line Items]        
Federal home loan bank stock   $ 16,700,000 $ 16,700,000  
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Schedule of Loans by Class (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]        
Loans, at amortized cost $ 2,073,720 $ 2,092,546    
Allowance for credit losses on loans (25,172) (22,983) $ (23,023) $ (22,874)
Total loans, net of allowance for credit losses on loans 2,048,548 2,069,563    
Net deferred loan origination costs (fees) 2,700 1,800    
Unrecognized purchase discounts on non-PCI loans 2,000 2,600    
Financing receivable, accrued interest, net $ 6,600 $ 6,100    
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Interest receivable and other assets Interest receivable and other assets    
Commercial | Commercial and industrial        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Loans, at amortized cost $ 153,750 $ 173,547    
Allowance for credit losses on loans (1,712) (1,794) (1,709) (2,530)
Commercial real estate | Commercial owner-occupied        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Loans, at amortized cost 333,181 354,877    
Allowance for credit losses on loans (2,476) (2,487) (2,776) (2,778)
Commercial real estate | Commercial non-owner occupied        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Loans, at amortized cost 1,219,385 1,191,889    
Allowance for credit losses on loans (14,933) (12,676) (12,739) (12,682)
Commercial real estate | Construction        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Loans, at amortized cost 99,164 114,373    
Allowance for credit losses on loans (1,832) (1,937) (1,653) (1,557)
Residential loans | Home equity        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Loans, at amortized cost 82,087 88,748    
Allowance for credit losses on loans (552) (558) (595) (738)
Residential loans | Other residential        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Loans, at amortized cost 118,508 112,123    
Allowance for credit losses on loans (653) (595) (644) (998)
Consumer loans | Installment and other consumer loans        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Loans, at amortized cost 67,645 56,989    
Allowance for credit losses on loans $ (976) $ (868) $ (621) $ (291)
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Concentrations of Credit Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans, at amortized cost $ 2,073,720 $ 2,092,546
Commercial real estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Percentage of loans by class to all loans 75.00% 74.00%
Loans secured by real estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Percentage of loans by class to all loans 90.00% 90.00%
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Schedule of Loans by Risk Grade and Origination Year (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one $ 183,397 $ 338,104  
Financing receivable, originated, year two 291,859 336,584  
Financing receivable, originated, year three 320,078 280,304  
Financing receivable, originated, year four 264,689 269,247  
Financing receivable, originated, year five 239,856 198,510  
Prior 610,122 496,053  
Revolving Loans Amortized Cost 163,719 173,744  
Total 2,073,720 2,092,546  
Gross current period charge-offs, originated, year one (7)    
Gross current period charge-offs, originated, year two (6)    
Gross current period charge-offs, originated, year three (1)    
Gross current period charge-offs, originated, year four (8)    
Gross current period charge-offs, originated, year five (409)    
Gross current period charge-offs, originated, prior (4)    
Gross current period charge-offs, originated, Revolving Loans Amortized Cost (6)    
Gross current period charge-offs, originated, total (441) (32) $ (5)
Pass and Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 168,498 337,829  
Financing receivable, originated, year two 282,068 316,949  
Financing receivable, originated, year three 292,740 266,856  
Financing receivable, originated, year four 252,093 261,577  
Financing receivable, originated, year five 222,217 188,741  
Prior 534,401 459,651  
Revolving Loans Amortized Cost 154,208 172,627  
Total 1,906,225 2,004,230  
Special Mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 14,021 275  
Financing receivable, originated, year two 7,288 17,371  
Financing receivable, originated, year three 25,134 12,097  
Financing receivable, originated, year four 12,596 6,510  
Financing receivable, originated, year five 16,328 9,769  
Prior 50,504 13,783  
Revolving Loans Amortized Cost 9,300 402  
Total 135,171 60,207  
Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 878 0  
Financing receivable, originated, year two 2,503 2,264  
Financing receivable, originated, year three 2,204 1,252  
Financing receivable, originated, year four 0 1,160  
Financing receivable, originated, year five 1,311 0  
Prior 25,217 22,619  
Revolving Loans Amortized Cost 211 715  
Total 32,324 28,010  
Doubtful      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one   0  
Financing receivable, originated, year two   0  
Financing receivable, originated, year three   99  
Financing receivable, originated, year four   0  
Financing receivable, originated, year five   0  
Prior   0  
Revolving Loans Amortized Cost   0  
Total   99  
Commercial | Commercial and industrial      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 25,615 15,624  
Financing receivable, originated, year two 9,187 6,679  
Financing receivable, originated, year three 2,970 8,855  
Financing receivable, originated, year four 3,718 22,254  
Financing receivable, originated, year five 16,773 9,198  
Prior 23,701 25,579  
Revolving Loans Amortized Cost 71,786 85,358  
Total 153,750 173,547  
Gross current period charge-offs, originated, year one 0    
Gross current period charge-offs, originated, year two 0    
Gross current period charge-offs, originated, year three 0    
Gross current period charge-offs, originated, year four (4)    
Gross current period charge-offs, originated, year five (3)    
Gross current period charge-offs, originated, prior (3)    
Gross current period charge-offs, originated, Revolving Loans Amortized Cost (1)    
Gross current period charge-offs, originated, total (11) (9) 0
Commercial | Commercial and industrial | Pass and Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 25,615 15,349  
Financing receivable, originated, year two 9,187 6,679  
Financing receivable, originated, year three 2,970 7,603  
Financing receivable, originated, year four 3,718 19,982  
Financing receivable, originated, year five 15,128 5,362  
Prior 21,004 24,954  
Revolving Loans Amortized Cost 62,486 84,655  
Total 140,108 164,584  
Commercial | Commercial and industrial | Special Mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 0 275  
Financing receivable, originated, year two 0 0  
Financing receivable, originated, year three 0 0  
Financing receivable, originated, year four 0 2,272  
Financing receivable, originated, year five 334 3,836  
Prior 0 0  
Revolving Loans Amortized Cost 9,300 402  
Total 9,634 6,785  
Commercial | Commercial and industrial | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 0 0  
Financing receivable, originated, year two 0 0  
Financing receivable, originated, year three 0 1,252  
Financing receivable, originated, year four 0 0  
Financing receivable, originated, year five 1,311 0  
Prior 2,697 625  
Revolving Loans Amortized Cost 0 301  
Total 4,008 2,178  
Commercial real estate | Commercial owner-occupied      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 14,559 54,188  
Financing receivable, originated, year two 48,537 68,279  
Financing receivable, originated, year three 65,523 40,468  
Financing receivable, originated, year four 38,528 46,262  
Financing receivable, originated, year five 41,280 35,111  
Prior 124,698 110,569  
Revolving Loans Amortized Cost 56 0  
Total 333,181 354,877  
Gross current period charge-offs, originated, year one 0    
Gross current period charge-offs, originated, year two 0    
Gross current period charge-offs, originated, year three 0    
Gross current period charge-offs, originated, year four 0    
Gross current period charge-offs, originated, year five (406)    
Gross current period charge-offs, originated, prior 0    
Gross current period charge-offs, originated, Revolving Loans Amortized Cost 0    
Gross current period charge-offs, originated, total (406) 0 0
Commercial real estate | Commercial owner-occupied | Pass and Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 13,128 54,188  
Financing receivable, originated, year two 41,808 52,080  
Financing receivable, originated, year three 49,887 40,369  
Financing receivable, originated, year four 37,708 44,798  
Financing receivable, originated, year five 40,994 29,856  
Prior 114,018 104,377  
Revolving Loans Amortized Cost 56 0  
Total 297,599 325,668  
Commercial real estate | Commercial owner-occupied | Special Mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 1,431 0  
Financing receivable, originated, year two 4,498 16,199  
Financing receivable, originated, year three 15,636 0  
Financing receivable, originated, year four 820 304  
Financing receivable, originated, year five 286 5,255  
Prior 8,902 4,493  
Revolving Loans Amortized Cost 0 0  
Total 31,573 26,251  
Commercial real estate | Commercial owner-occupied | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 0 0  
Financing receivable, originated, year two 2,231 0  
Financing receivable, originated, year three 0 0  
Financing receivable, originated, year four 0 1,160  
Financing receivable, originated, year five 0 0  
Prior 1,778 1,699  
Revolving Loans Amortized Cost 0 0  
Total 4,009 2,859  
Commercial real estate | Commercial owner-occupied | Doubtful      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one   0  
Financing receivable, originated, year two   0  
Financing receivable, originated, year three   99  
Financing receivable, originated, year four   0  
Financing receivable, originated, year five   0  
Prior   0  
Revolving Loans Amortized Cost   0  
Total   99  
Commercial real estate | Commercial real estate, non-owner occupied      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 77,596 177,822  
Financing receivable, originated, year two 175,090 214,664  
Financing receivable, originated, year three 208,042 167,375  
Financing receivable, originated, year four 162,607 164,604  
Financing receivable, originated, year five 155,568 129,844  
Prior 430,650 337,523  
Revolving Loans Amortized Cost 9,832 57  
Total 1,219,385 1,191,889  
Gross current period charge-offs, originated, total 0 0 0
Commercial real estate | Commercial real estate, non-owner occupied | Pass and Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 76,718 177,822  
Financing receivable, originated, year two 172,028 211,228  
Financing receivable, originated, year three 196,340 155,278  
Financing receivable, originated, year four 150,831 160,670  
Financing receivable, originated, year five 139,860 129,166  
Prior 368,675 308,509  
Revolving Loans Amortized Cost 9,832 57  
Total 1,114,284 1,142,730  
Commercial real estate | Commercial real estate, non-owner occupied | Special Mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 0 0  
Financing receivable, originated, year two 2,790 1,172  
Financing receivable, originated, year three 9,498 12,097  
Financing receivable, originated, year four 11,776 3,934  
Financing receivable, originated, year five 15,708 678  
Prior 41,602 9,290  
Revolving Loans Amortized Cost 0 0  
Total 81,374 27,171  
Commercial real estate | Commercial real estate, non-owner occupied | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 878 0  
Financing receivable, originated, year two 272 2,264  
Financing receivable, originated, year three 2,204 0  
Financing receivable, originated, year four 0 0  
Financing receivable, originated, year five 0 0  
Prior 20,373 19,724  
Revolving Loans Amortized Cost 0 0  
Total 23,727 21,988  
Commercial real estate | Construction      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 25,728 49,262  
Financing receivable, originated, year two 24,403 19,393  
Financing receivable, originated, year three 19,521 28,861  
Financing receivable, originated, year four 29,512 7,745  
Financing receivable, originated, year five 0 9,112  
Prior 0 0  
Revolving Loans Amortized Cost 0 0  
Total 99,164 114,373  
Gross current period charge-offs, originated, total 0 0 0
Commercial real estate | Construction | Pass and Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 13,138 49,262  
Financing receivable, originated, year two 24,403 19,393  
Financing receivable, originated, year three 19,521 28,861  
Financing receivable, originated, year four 29,512 7,745  
Financing receivable, originated, year five 0 9,112  
Prior 0 0  
Revolving Loans Amortized Cost 0 0  
Total 86,574 114,373  
Commercial real estate | Construction | Special Mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 12,590    
Financing receivable, originated, year two 0    
Financing receivable, originated, year three 0    
Financing receivable, originated, year four 0    
Financing receivable, originated, year five 0    
Prior 0    
Revolving Loans Amortized Cost 0    
Total 12,590    
Residential loans | Home equity      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 0 0  
Financing receivable, originated, year two 0 0  
Financing receivable, originated, year three 0 0  
Financing receivable, originated, year four 0 0  
Financing receivable, originated, year five 0 0  
Prior 1,103 1,363  
Revolving Loans Amortized Cost 80,984 87,385  
Total 82,087 88,748  
Gross current period charge-offs, originated, total 0 0 0
Residential loans | Home equity | Pass and Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 0 0  
Financing receivable, originated, year two 0 0  
Financing receivable, originated, year three 0 0  
Financing receivable, originated, year four 0 0  
Financing receivable, originated, year five 0 0  
Prior 734 883  
Revolving Loans Amortized Cost 80,773 86,971  
Total 81,507 87,854  
Residential loans | Home equity | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 0 0  
Financing receivable, originated, year two 0 0  
Financing receivable, originated, year three 0 0  
Financing receivable, originated, year four 0 0  
Financing receivable, originated, year five 0 0  
Prior 369 480  
Revolving Loans Amortized Cost 211 414  
Total 580 894  
Residential loans | Other residential      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 17,861 21,154  
Financing receivable, originated, year two 20,114 14,547  
Financing receivable, originated, year three 13,390 29,018  
Financing receivable, originated, year four 25,637 21,890  
Financing receivable, originated, year five 20,935 11,064  
Prior 20,571 14,450  
Revolving Loans Amortized Cost 0 0  
Total 118,508 112,123  
Gross current period charge-offs, originated, total 0 0 0
Residential loans | Other residential | Pass and Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 17,861 21,154  
Financing receivable, originated, year two 20,114 14,547  
Financing receivable, originated, year three 13,390 29,018  
Financing receivable, originated, year four 25,637 21,890  
Financing receivable, originated, year five 20,935 11,064  
Prior 20,571 14,450  
Revolving Loans Amortized Cost 0 0  
Total 118,508 112,123  
Consumer loans | Installment and other consumer loans      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 22,038 20,054  
Financing receivable, originated, year two 14,528 13,022  
Financing receivable, originated, year three 10,632 5,727  
Financing receivable, originated, year four 4,687 6,492  
Financing receivable, originated, year five 5,300 4,181  
Prior 9,399 6,569  
Revolving Loans Amortized Cost 1,061 944  
Total 67,645 56,989  
Gross current period charge-offs, originated, year one (7)    
Gross current period charge-offs, originated, year two (6)    
Gross current period charge-offs, originated, year three (1)    
Gross current period charge-offs, originated, year four (4)    
Gross current period charge-offs, originated, year five 0    
Gross current period charge-offs, originated, prior (1)    
Gross current period charge-offs, originated, Revolving Loans Amortized Cost (5)    
Gross current period charge-offs, originated, total (24) (23) $ (5)
Consumer loans | Installment and other consumer loans | Pass and Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one 22,038 20,054  
Financing receivable, originated, year two 14,528 13,022  
Financing receivable, originated, year three 10,632 5,727  
Financing receivable, originated, year four 4,687 6,492  
Financing receivable, originated, year five 5,300 4,181  
Prior 9,399 6,478  
Revolving Loans Amortized Cost 1,061 944  
Total $ 67,645 56,898  
Consumer loans | Installment and other consumer loans | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
Financing receivable, originated, year one   0  
Financing receivable, originated, year two   0  
Financing receivable, originated, year three   0  
Financing receivable, originated, year four   0  
Financing receivable, originated, year five   0  
Prior   91  
Revolving Loans Amortized Cost   0  
Total   $ 91  
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Loans Outstanding and Aging Analysis (Details)
12 Months Ended
Dec. 31, 2023
USD ($)
loan
Dec. 31, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost $ 2,073,720,000 $ 2,092,546,000  
Non-accrual loans 7,992,000 2,432,000  
Non-accrual loans with no allowance $ 3,091,000 $ 2,432,000  
Number of loans past due more than 90 days still accruing | loan 0 0  
Nonaccrual loans earning interest on cash basis $ 0 $ 0  
Nonaccrual interest income 0 0 $ 0
Accrued interest writeoff 206,000 48,000 $ 0
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 2,073,720,000 2,092,546,000  
Total past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 7,664,000 1,342,000  
30-59 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 3,930,000 420,000  
60-89 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 2,274,000 244,000  
90 days or more past due 1 | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 1,460,000 678,000  
Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 2,066,056,000 2,091,204,000  
Commercial | Commercial and industrial      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 153,750,000 173,547,000  
Non-accrual loans 4,008,000 0  
Non-accrual loans with no allowance 1,311,000 0  
Commercial | Commercial and industrial | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 153,750,000 173,547,000  
Commercial | Commercial and industrial | Total past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 4,371,000 267,000  
Commercial | Commercial and industrial | 30-59 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 2,991,000 3,000  
Commercial | Commercial and industrial | 60-89 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 69,000 0  
Commercial | Commercial and industrial | 90 days or more past due 1 | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 1,311,000 264,000  
Commercial | Commercial and industrial | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 149,379,000 173,280,000  
Commercial real estate | Commercial owner-occupied      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 333,181,000 354,877,000  
Non-accrual loans 434,000 1,563,000  
Non-accrual loans with no allowance 434,000 1,563,000  
Commercial real estate | Commercial owner-occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 333,181,000 354,877,000  
Commercial real estate | Commercial owner-occupied | Total past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 767,000 0  
Commercial real estate | Commercial owner-occupied | 30-59 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 618,000 0  
Commercial real estate | Commercial owner-occupied | 60-89 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Commercial real estate | Commercial owner-occupied | 90 days or more past due 1 | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 149,000 0  
Commercial real estate | Commercial owner-occupied | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 332,414,000 354,877,000  
Commercial real estate | Commercial real estate, non-owner occupied      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 1,219,385,000 1,191,889,000  
Non-accrual loans 3,081,000 0  
Non-accrual loans with no allowance 877,000 0  
Commercial real estate | Commercial real estate, non-owner occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 1,219,385,000 1,191,889,000  
Commercial real estate | Commercial real estate, non-owner occupied | Total past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 2,204,000 0  
Commercial real estate | Commercial real estate, non-owner occupied | 30-59 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Commercial real estate | Commercial real estate, non-owner occupied | 60-89 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 2,204,000 0  
Commercial real estate | Commercial real estate, non-owner occupied | 90 days or more past due 1 | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Commercial real estate | Commercial real estate, non-owner occupied | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 1,217,181,000 1,191,889,000  
Commercial real estate | Construction      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 99,164,000 114,373,000  
Non-accrual loans 0 0  
Non-accrual loans with no allowance 0 0  
Commercial real estate | Construction | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 99,164,000 114,373,000  
Commercial real estate | Construction | Total past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Commercial real estate | Construction | 30-59 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Commercial real estate | Construction | 60-89 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Commercial real estate | Construction | 90 days or more past due 1 | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Commercial real estate | Construction | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 99,164,000 114,373,000  
Residential loans | Home equity      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 82,087,000 88,748,000  
Non-accrual loans 469,000 778,000  
Non-accrual loans with no allowance 469,000 778,000  
Residential loans | Home equity | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 82,087,000 88,748,000  
Residential loans | Home equity | Total past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 43,000 977,000  
Residential loans | Home equity | 30-59 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 43,000 319,000  
Residential loans | Home equity | 60-89 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 244,000  
Residential loans | Home equity | 90 days or more past due 1 | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 414,000  
Residential loans | Home equity | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 82,044,000 87,771,000  
Residential loans | Other residential      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 118,508,000 112,123,000  
Non-accrual loans 0 0  
Non-accrual loans with no allowance 0 0  
Residential loans | Other residential | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 118,508,000 112,123,000  
Residential loans | Other residential | Total past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 83,000 93,000  
Residential loans | Other residential | 30-59 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 83,000 93,000  
Residential loans | Other residential | 60-89 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Residential loans | Other residential | 90 days or more past due 1 | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Residential loans | Other residential | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 118,425,000 112,030,000  
Consumer loans | Installment and other consumer loans      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 67,645,000 56,989,000  
Non-accrual loans 0 91,000  
Non-accrual loans with no allowance 0 91,000  
Consumer loans | Installment and other consumer loans | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 67,645,000 56,989,000  
Consumer loans | Installment and other consumer loans | Total past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 196,000 5,000  
Consumer loans | Installment and other consumer loans | 30-59 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 195,000 5,000  
Consumer loans | Installment and other consumer loans | 60-89 days past due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 1,000 0  
Consumer loans | Installment and other consumer loans | 90 days or more past due 1 | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost 0 0  
Consumer loans | Installment and other consumer loans | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans, at amortized cost $ 67,449,000 $ 56,984,000  
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Schedule of Collateral-Dependent Non-Accrual Loans (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans $ 7,992,000 $ 2,432,000    
Allowance for credit losses on loans $ 25,172,000 $ 22,983,000 $ 23,023,000 $ 22,874,000
Weighted average ratio of loans value to collateral dependent loans value 70.00% 42.00%    
Collateral Pledged        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans $ 5,295,000 $ 2,432,000    
Allowance for credit losses on loans 408,000 0    
Commercial Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 4,826,000 1,563,000    
Residential Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 469,000 778,000    
Other        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0 91,000    
Commercial real estate | Commercial and industrial | Collateral Pledged        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 1,311,000      
Allowance for credit losses on loans 0      
Commercial real estate | Commercial and industrial | Commercial Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 1,311,000      
Commercial real estate | Commercial and industrial | Residential Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0      
Commercial real estate | Commercial and industrial | Other        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0      
Commercial real estate | Commercial owner-occupied        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 434,000 1,563,000    
Allowance for credit losses on loans 2,476,000 2,487,000 2,776,000 2,778,000
Commercial real estate | Commercial owner-occupied | Collateral Pledged        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 434,000 1,563,000    
Allowance for credit losses on loans 0 0    
Commercial real estate | Commercial owner-occupied | Commercial Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 434,000 1,563,000    
Commercial real estate | Commercial owner-occupied | Residential Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0 0    
Commercial real estate | Commercial owner-occupied | Other        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0 0    
Commercial real estate | Commercial real estate, non-owner occupied        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 3,081,000 0    
Allowance for credit losses on loans 14,933,000 12,676,000 12,739,000 12,682,000
Commercial real estate | Commercial real estate, non-owner occupied | Collateral Pledged        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 3,081,000      
Allowance for credit losses on loans 408,000      
Commercial real estate | Commercial real estate, non-owner occupied | Commercial Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 3,081,000      
Commercial real estate | Commercial real estate, non-owner occupied | Residential Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0      
Commercial real estate | Commercial real estate, non-owner occupied | Other        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0      
Residential loans | Home equity        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 469,000 778,000    
Allowance for credit losses on loans 552,000 558,000 595,000 738,000
Residential loans | Home equity | Collateral Pledged        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 469,000 778,000    
Allowance for credit losses on loans 0 0    
Residential loans | Home equity | Commercial Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0 0    
Residential loans | Home equity | Residential Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 469,000 778,000    
Residential loans | Home equity | Other        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0 0    
Residential loans | Other residential        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0 0    
Allowance for credit losses on loans 653,000 595,000 644,000 998,000
Residential loans | Other residential | Residential Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Nonaccrual collateral dependent loans in process of foreclosure 0 0    
Consumer loans | Installment and other consumer loans        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans 0 91,000    
Allowance for credit losses on loans $ 976,000 868,000 $ 621,000 $ 291,000
Consumer loans | Installment and other consumer loans | Collateral Pledged        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans   91,000    
Allowance for credit losses on loans   0    
Consumer loans | Installment and other consumer loans | Commercial Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans   0    
Consumer loans | Installment and other consumer loans | Residential Real Estate        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans   0    
Consumer loans | Installment and other consumer loans | Other        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Non-accrual loans   $ 91,000    
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Schedule of Amortized Cost of Loan (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2023
USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications $ 2,309
Term Extension  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 2,309
Commercial real estate | Commercial owner-occupied  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications $ 1,431
Percent of Portfolio Class Total 0.40%
Commercial real estate | Commercial owner-occupied | Term Extension  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications $ 1,431
Commercial real estate | Commercial real estate, non-owner occupied  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications $ 878
Percent of Portfolio Class Total 0.10%
Commercial real estate | Commercial real estate, non-owner occupied | Term Extension  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications $ 878
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Schedule of Financial Effect of Loan Modifications (Details) - Commercial real estate - Extended Maturity
12 Months Ended
Dec. 31, 2023
Commercial owner-occupied  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Weighted-Average Term Extension (in years) 2 years 3 months 18 days
Commercial real estate, non-owner occupied  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Weighted-Average Term Extension (in years) 6 months
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Schedule of Amortized Cost and Payment Status of Loans (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2023
USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications $ 2,309
Non-Accrual 878
Current  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 2,309
30-59 days past due  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 0
60-89 days past due  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 0
90 days or more past due 1  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 0
Commercial real estate | Commercial owner-occupied  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 1,431
Non-Accrual 0
Commercial real estate | Commercial owner-occupied | Current  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 1,431
Commercial real estate | Commercial owner-occupied | 30-59 days past due  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 0
Commercial real estate | Commercial owner-occupied | 60-89 days past due  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 0
Commercial real estate | Commercial owner-occupied | 90 days or more past due 1  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 0
Commercial real estate | Commercial real estate, non-owner occupied  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 878
Non-Accrual 878
Commercial real estate | Commercial real estate, non-owner occupied | Current  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 878
Commercial real estate | Commercial real estate, non-owner occupied | 30-59 days past due  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 0
Commercial real estate | Commercial real estate, non-owner occupied | 60-89 days past due  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications 0
Commercial real estate | Commercial real estate, non-owner occupied | 90 days or more past due 1  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Total Modifications $ 0
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Schedule of Allocation of the Allowance for Credit Losses on Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans $ 25,172 $ 22,983 $ 23,023 $ 22,874
Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 11,467 12,651    
Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 12,284 10,323    
Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1,421 9    
Commercial | Commercial and industrial        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1,712 1,794 1,709 2,530
Commercial | Commercial and industrial | Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 897 1,079    
Commercial | Commercial and industrial | Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 622 706    
Commercial | Commercial and industrial | Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 193 9    
Commercial real estate | Commercial owner-occupied        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 2,476 2,487 2,776 2,778
Commercial real estate | Commercial owner-occupied | Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1,270 1,497    
Commercial real estate | Commercial owner-occupied | Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1,205 990    
Commercial real estate | Commercial owner-occupied | Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1 0    
Commercial real estate | Commercial real estate, non-owner occupied        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 14,933 12,676 12,739 12,682
Commercial real estate | Commercial real estate, non-owner occupied | Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 7,380 7,937    
Commercial real estate | Commercial real estate, non-owner occupied | Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 6,327 4,739    
Commercial real estate | Commercial real estate, non-owner occupied | Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1,226 0    
Commercial real estate | Construction        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1,832 1,937 1,653 1,557
Commercial real estate | Construction | Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 185 453    
Commercial real estate | Construction | Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1,647 1,484    
Commercial real estate | Construction | Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 0 0    
Residential loans | Home equity        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 552 558 595 738
Residential loans | Home equity | Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 482 504    
Residential loans | Home equity | Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 70 54    
Residential loans | Home equity | Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 0 0    
Residential loans | Other residential        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 653 595 644 998
Residential loans | Other residential | Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 619 571    
Residential loans | Other residential | Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 33 24    
Residential loans | Other residential | Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 1 0    
Consumer loans | Installment and other consumer loans        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 976 868 621 291
Consumer loans | Installment and other consumer loans | Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 634 610    
Consumer loans | Installment and other consumer loans | Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 342 258    
Consumer loans | Installment and other consumer loans | Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 0 0    
Unallocated        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 2,038 2,068 $ 2,286 $ 1,300
Unallocated | Modeled expected credit losses        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 0 0    
Unallocated | Qualitative adjustments        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans 2,038 2,068    
Unallocated | Specific allocations        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
Allowance for credit losses on loans $ 0 $ 0    
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Schedule of Allowance for Credit Losses on Loans (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance $ 22,983 $ 23,023 $ 22,874
(Reversal) provision 2,575 (63) (1,449)
Initial allowance for PCD loans     1,505
(Charge-offs) (441) (32) (5)
Recoveries 55 55 98
Ending balance 25,172 22,983 23,023
Commercial | Commercial and industrial      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 1,794 1,709 2,530
(Reversal) provision (100) 72 (1,240)
Initial allowance for PCD loans     405
(Charge-offs) (11) (9) 0
Recoveries 29 22 14
Ending balance 1,712 1,794 1,709
Commercial real estate | Commercial owner-occupied      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 2,487 2,776 2,778
(Reversal) provision 395 (289) (561)
Initial allowance for PCD loans     559
(Charge-offs) (406) 0 0
Recoveries 0 0 0
Ending balance 2,476 2,487 2,776
Commercial real estate | Commercial real estate, non-owner occupied      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 12,676 12,739 12,682
(Reversal) provision 2,257 (63) (476)
Initial allowance for PCD loans     533
(Charge-offs) 0 0 0
Recoveries 0 0 0
Ending balance 14,933 12,676 12,739
Commercial real estate | Construction      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 1,937 1,653 1,557
(Reversal) provision (130) 251 62
Initial allowance for PCD loans     0
(Charge-offs) 0 0 0
Recoveries 25 33 34
Ending balance 1,832 1,937 1,653
Residential loans | Home equity      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 558 595 738
(Reversal) provision (6) (37) (193)
Initial allowance for PCD loans     0
(Charge-offs) 0 0 0
Recoveries 0 0 50
Ending balance 552 558 595
Residential loans | Other residential      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 595 644 998
(Reversal) provision 58 (49) (360)
Initial allowance for PCD loans     6
(Charge-offs) 0 0 0
Recoveries 0 0 0
Ending balance 653 595 644
Consumer loans | Installment and other consumer loans      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 868 621 291
(Reversal) provision 131 270 333
Initial allowance for PCD loans     2
(Charge-offs) (24) (23) (5)
Recoveries 1 0 0
Ending balance 976 868 621
Unallocated      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 2,068 2,286 1,300
(Reversal) provision (30) (218) 986
Initial allowance for PCD loans     0
(Charge-offs) 0 0 0
Recoveries 0 0 0
Ending balance $ 2,038 $ 2,068 $ 2,286
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Pledged Loans Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Other residential | Federal Reserve Bank    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Collateral pledged $ 110.4 $ 105.0
Federal Home Loan Bank of San Francisco    
Financial Instruments Owned and Pledged as Collateral [Line Items]    
Collateral pledged $ 1,288.0 $ 1,298.0
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Related Party Loans (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Loans and Leases Receivable, Related Parties [Roll Forward]      
Balance at beginning of year $ 6,445 $ 7,942 $ 6,423
Additions 0 1,525 0
Assumed in the AMRB acquisition 0 0 4,037
Repayments (613) (364) (2,518)
Reclassified due to a change in borrower status 0 (2,658) 0
Balance at end of year $ 5,832 $ 6,445 $ 7,942
v3.24.0.1
Loans and Allowance for Credit Losses on Loans - Related Party Loans Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Directors, Officers, Principal Shareholders and Associates    
Related Party Transaction [Line Items]    
Undisbursed commitment to related parties $ 212 $ 562
v3.24.0.1
Bank Premises and Equipment - Schedule of Bank Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Finance lease right-of-use assets $ 608 $ 616
Subtotal 30,940 31,880
Accumulated depreciation and amortization (23,148) (23,746)
Bank premises and equipment, net 7,792 8,134
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Bank premises and equipment, gross 16,578 16,115
Furniture and equipment    
Property, Plant and Equipment [Line Items]    
Bank premises and equipment, gross 11,336 12,762
Buildings    
Property, Plant and Equipment [Line Items]    
Bank premises and equipment, gross 1,248 1,217
Land    
Property, Plant and Equipment [Line Items]    
Bank premises and equipment, gross 1,170 1,170
Finance lease right-of-use assets    
Property, Plant and Equipment [Line Items]    
Finance lease right-of-use assets $ 608 $ 616
v3.24.0.1
Bank Premises and Equipment - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Depreciation and amortization $ 2.1 $ 1.8 $ 1.7
v3.24.0.1
Bank Owned Life Insurance (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Insurance [Abstract]      
Estimated death benefits $ 131,800    
Death benefits provided under terms of the programs 68,100 $ 67,100  
Earnings on bank-owned life insurance, net 1,802 1,229 $ 2,194
Proceeds in excess of the cash surrender values $ 313 $ 86 $ 1,100
v3.24.0.1
Deposits - Schedule of Stratification of Time Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deposits [Abstract]    
Time deposits of less than or equal to $250 thousand $ 145,697 $ 74,421
Time deposits of more than $250 thousand 105,620 44,609
Total time deposits $ 251,317 $ 119,030
v3.24.0.1
Deposits - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Deposits [Abstract]      
Interest on time accounts $ 4,715 $ 323 $ 246
Held-to-maturity securities pledged as collateral 287,400    
Deposit overdrafts reclassified as loan balances 320 247  
Related party deposit liabilities $ 23,600 $ 11,200  
v3.24.0.1
Deposits - Schedule of Time Deposit Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Scheduled time deposit maturities    
2024 $ 233,726  
2025 6,760  
2026 5,510  
2027 2,705  
2028 2,616  
Thereafter 0  
Total time deposits $ 251,317 $ 119,030
v3.24.0.1
Deposits - Schedule of Composition of Network Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Reciprocal    
CDARS $ 46,162 $ 11,031
ICS 245,577 100,749
DDM 132,276 62,219
Total network deposits 424,015 173,999
One Way    
CDARS 2,164 2,162
ICS 0 0
DDM 0 0
Total network deposits $ 2,164 $ 2,162
v3.24.0.1
Borrowings and Other Obligations - Lines of Credit and Borrowing Agreements (Details) - Line of Credit - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Federal Reserve Bank Advances    
Line of Credit Facility [Line Items]    
Lines of credit $ 64.0 $ 58.7
FHLB short-term borrowings    
Line of Credit Facility [Line Items]    
Lines of credit 1,009.0 711.6
Federal Funds Purchased | Unsecured Debt    
Line of Credit Facility [Line Items]    
Lines of credit 135.0 $ 150.0
Federal Reserve Bank Advances | Pledged to the Federal Reserve "BTFP"    
Line of Credit Facility [Line Items]    
Lines of credit $ 270.2  
v3.24.0.1
Borrowings and Other Obligations - Subordinated Debenture and Other Obligations (Details) - USD ($)
$ in Thousands
12 Months Ended
Mar. 15, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2013
Debt Instrument [Line Items]          
Present value of net minimum lease payments (lease liability)   $ 298 $ 439    
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]   Debt and Lease Obligation Debt and Lease Obligation    
Accretion of discount on subordinated debenture   $ 0 $ 0 $ 1,347  
NorCal Community Bancorp Trust II | Subordinated debenture          
Debt Instrument [Line Items]          
Long-term debt         $ 4,100
Repayments of debt $ 2,800        
Interest rate, effective percentage 251.50%        
Accretion of discount on subordinated debenture $ 1,300        
v3.24.0.1
Borrowings and Other Obligations - Schedule of Borrowings (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Carrying Value $ 26,298 $ 112,439 $ 419
Average Balance $ 221,623 $ 2,295 $ 892
Average Rate 5.15% 3.90% 1.08%
Other obligations (finance leases)      
Debt Instrument [Line Items]      
Average Rate 1.88% 0.65% 0.71%
Carrying Value $ 298 $ 439 $ 419
Average Balance 364 374 250
FHLB short-term borrowings | Line of Credit      
Debt Instrument [Line Items]      
Carrying Value 0 112,000 0
Average Balance $ 164,299 $ 1,921 $ 0
Average Rate 5.10% 4.48% 0.00%
FHLB fixed-rate advances | Line of Credit      
Debt Instrument [Line Items]      
Carrying Value $ 0 $ 0 $ 0
Average Balance $ 0 $ 0 $ 642
Average Rate 0.00% 0.00% 1.18%
Federal funds lines of credit | Line of Credit      
Debt Instrument [Line Items]      
Carrying Value $ 0 $ 0 $ 0
Average Balance $ 0 $ 0 $ 0
Average Rate 0.00% 0.00% 0.00%
Pledged to the Federal Reserve "BTFP" | Line of Credit      
Debt Instrument [Line Items]      
Carrying Value $ 26,000 $ 0 $ 0
Average Balance $ 56,959 $ 0 $ 0
Average Rate 5.30% 0.00% 0.00%
v3.24.0.1
Stockholders' Equity and Stock Plans - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Jan. 25, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2017
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total compensation cost for share-based payment arrangements   $ 522 $ 962 $ 972    
Share-based compensation income tax benefit recognized   146 257 213    
Unrecognized compensation expense   $ 1,300        
Period for recognizing unrecognized compensation expense   2 years 2 months 12 days        
Excess tax benefits recorded as a reduction to income tax expense   $ 2 3 87    
Subsequent event            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Dividends declared per common share (usd per share) $ 0.25          
Stock options            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total grant-date fair value of option shares vested   $ 255 356 514    
Stock options | Officers and Employees            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting period   3 years        
Expiration period of grants   10 years        
Stock options | Officers and Employees | Share-Based Payment Arrangement, Tranche One            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage   33.33%        
Stock options | Officers and Employees | Share-Based Payment Arrangement, Tranche Two            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage   33.33%        
Stock options | Officers and Employees | Share-Based Payment Arrangement, Tranche Three            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage   33.33%        
Stock options | Non-Employee Directors            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Expiration period of grants   10 years        
Performance shares            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting period   3 years        
Restricted stock award            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total grant-date fair value of option shares vested   $ 428 $ 431 $ 1,000    
Minimum | Performance shares            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage   0.00%        
Maximum | Performance shares            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage   200.00%        
The Plan, 2020            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares approved to be issued in common stock (in shares)           250,000
Number of shares available for future grants under plan (in shares)   209,642        
Employee Stock Purchase Plan, 2007            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for future grants under plan (in shares)   372,923        
Discount from closing market price at end of each quarter         5.00%  
Employee Stock Purchase Plan, 2007 | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Approved payroll deduction to purchase shares, percentage         1.00%  
Employee Stock Purchase Plan, 2007 | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Approved payroll deduction to purchase shares, percentage         15.00%  
The 2017 Equity Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for future grants under plan (in shares)   790,201        
Common Stock | The Plan, 2020            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares awarded in period from plan (in shares)   18,362 10,145 6,443    
v3.24.0.1
Stockholders' Equity and Stock Plans - Schedule of Cashless Exercise Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Equity [Abstract]      
Number of shares withheld (in shares) 3,132 11,505 27,929
Total amount withheld (in thousands) $ 86 $ 393 $ 1,085
Weighted-average price (usd per share) $ 27.57 $ 34.13 $ 38.85
v3.24.0.1
Stockholders' Equity and Stock Plans - Schedule of Options Outstanding Rollforward (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Number of Shares        
Options outstanding, beginning balance (in shares) 329,705 365,381 371,584  
Granted (in shares) 10,040 39,094 55,861  
Cancelled, expired or forfeited (in shares) (23,804) (23,760) (2,008)  
Exercised (in shares) (12,164) (51,010) (60,056)  
Options outstanding, ending balance (in shares) 303,777 329,705 365,381 371,584
Exercisable (vested), ending balance (in shares) 283,578 287,228 315,744  
Weighted Average Exercise Price        
Options outstanding, beginning balance (in dollars per share) $ 33.22 $ 31.97 $ 29.92  
Granted (in dollars per share) 32.54 34.16 36.39  
Cancelled, expired or forfeited (in dollars per share) 35.06 37.48 42.50  
Exercised (in dollars per share) 20.25 23.01 23.01  
Options outstanding, ending balance (in dollars per share) 33.22 33.22 31.97 $ 29.92
Exercisable (vested), ending balance (in dollars per shares) $ 33.46 $ 32.81 $ 30.85  
Aggregate Intrinsic Value        
Options outstanding, beginning balance $ 813 $ 2,326 $ 2,262  
Exercised 88 617 885  
Options outstanding, ending balance 1 813 2,326 $ 2,262
Exercisable (vested) $ 1 $ 813 $ 2,264  
Weighted Average Grant-Date Fair Value        
Granted (in dollars per share) $ 8.49 $ 8.49 $ 8.84  
Weighted Average Remaining Contractual Term        
Options outstanding 4 years 10 months 9 days 5 years 7 months 2 days 5 years 6 months 25 days 5 years 1 month 13 days
Exercisable (vested) 4 years 7 months 24 days 5 years 1 month 24 days 5 years 1 month 24 days  
v3.24.0.1
Stockholders' Equity and Stock Plans - Schedule of Options Outstanding by Price Range (Details) - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock Options Outstanding (in shares) 303,777 329,705 365,381 371,584
Stock Options Outstanding, Remaining Contractual Life 4 years 10 months 9 days 5 years 7 months 2 days 5 years 6 months 25 days 5 years 1 month 13 days
Weighted Average Exercise Price (in dollars per share) $ 33.22 $ 33.22 $ 31.97 $ 29.92
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock Options Outstanding (in shares) 303,777      
Stock Options Exercisable (in shares) 283,578      
Stock options | $10.00 - $20.00        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Range of Exercise Prices, Lower Limit (in dollars per share) $ 10.00      
Range of Exercise Prices, Upper Limit (in dollars per share) $ 20.00      
Stock Options Outstanding (in shares) 402      
Stock Options Outstanding, Remaining Contractual Life 3 years 1 month 6 days      
Weighted Average Exercise Price (in dollars per share) $ 19.96      
Stock Options Exercisable (in shares) 402      
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 19.96      
Stock options | $20.01 - $30.00        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Range of Exercise Prices, Lower Limit (in dollars per share) 20.01      
Range of Exercise Prices, Upper Limit (in dollars per share) $ 30.00      
Stock Options Outstanding (in shares) 73,080      
Stock Options Outstanding, Remaining Contractual Life 1 year 6 months      
Weighted Average Exercise Price (in dollars per share) $ 24.64      
Stock Options Exercisable (in shares) 73,080      
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 24.64      
Stock options | $30.01 - $40.00        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Range of Exercise Prices, Lower Limit (in dollars per share) 30.01      
Range of Exercise Prices, Upper Limit (in dollars per share) $ 40.00      
Stock Options Outstanding (in shares) 171,457      
Stock Options Outstanding, Remaining Contractual Life 6 years      
Weighted Average Exercise Price (in dollars per share) $ 34.48      
Stock Options Exercisable (in shares) 151,258      
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 34.39      
Stock options | $40.01 - $50.00        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Range of Exercise Prices, Lower Limit (in dollars per share) 40.01      
Range of Exercise Prices, Upper Limit (in dollars per share) $ 50.00      
Stock Options Outstanding (in shares) 58,838      
Stock Options Outstanding, Remaining Contractual Life 5 years 7 months 6 days      
Weighted Average Exercise Price (in dollars per share) $ 42.13      
Stock Options Exercisable (in shares) 58,838      
Stock Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 42.13      
v3.24.0.1
Stockholders' Equity and Stock Plans - Schedule of Non-vested Awards Activity (Details) - Restricted Stock Awards - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number of Shares      
Non-vested awards, beginning balance (in shares) 82,366 61,830 61,328
Granted (in shares) 61,978 46,672 30,742
Vested (in shares) (15,768) (12,444) (26,392)
Forfeited (in shares) (21,024) (13,692) (3,848)
Non-vested awards, ending balance (in shares) 107,552 82,366 61,830
Weighted Average Grant-Date Fair Value      
Non-vested awards, beginning balance (in dollars per share) $ 36.28 $ 40.25 $ 39.50
Granted (in dollars per share) 27.10 34.03 38.00
Vested (in dollars per share) 36.24 41.49 36.81
Forfeited (in dollars per share) 36.86 41.80 33.96
Non-vested awards, ending balance (in dollars per share) $ 30.88 $ 36.28 $ 40.25
v3.24.0.1
Stockholders' Equity and Stock Plans - Schedule of Valuation Assumptions (Details) - Stock options
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 3.94% 1.86% 0.98%
Expected dividend yield on common stock 3.07% 2.85% 2.57%
Expected life in years 5 years 6 years 6 years 1 month 6 days
Expected price volatility 34.68% 33.44% 33.12%
v3.24.0.1
Stockholders' Equity and Stock Plans - Schedule of Dividends (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Equity [Abstract]        
Cash dividends to common stockholders $ 16,106 $ 15,673 $ 13,107  
Cash dividends per common share (usd per share) $ 1.00 $ 0.98 $ 0.94  
Retained earnings $ 274,570 $ 270,781    
Stockholders' equity $ 439,062 $ 412,092 $ 450,368 $ 358,253
Period used to determine amount available for payment of dividends based on restriction (in years) 3 years      
Amount of retained earnings available for payment of dividends based on restriction $ 6,100      
Cash held $ 7,200      
v3.24.0.1
Stockholders' Equity and Stock Plans - Schedule of Share Repurchases (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jul. 21, 2023
Oct. 22, 2021
Jul. 16, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Stock repurchased     $ 877 $ 40,722      
Common Stock              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Stock repurchase program, authorized amount         $ 25,000 $ 57,000 $ 25,000
Stock repurchased, including commissions (in shares) 23,275 0 23,275 1,117,666      
Stock repurchased $ 877   $ 877 $ 40,722      
v3.24.0.1
Fair Value of Assets and Liabilities - Schedule of Recorded on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities $ 552,028 $ 802,096
SBA-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 19,471 44,355
Debentures of government sponsored agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 66,862 135,106
U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 10,623 10,269
Obligations of state and political subdivisions    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 91,882 102,123
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 10,718 33,276
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 1,462
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 352,472 475,505
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 19,471 44,355
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government sponsored agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 66,862 135,106
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 10,623 10,269
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 91,882 102,123
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 10,718 33,276
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities   1,462
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Interest rate contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative financial assets (interest rate contracts) 287 602
Derivative financial liabilities (interest rate contracts) 1,361  
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 352,472 475,505
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 19,471 44,355
Fair Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government sponsored agencies | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government sponsored agencies | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 66,862 135,106
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government sponsored agencies | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | U.S. Treasury securities | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 10,623 10,269
Fair Value | Assets and liabilities at fair value measured on a recurring basis | U.S. Treasury securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | U.S. Treasury securities | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 91,882 102,123
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 10,718 33,276
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities   0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Asset-backed securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities   1,462
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Asset-backed securities | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities   0
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Interest rate contracts | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative financial assets (interest rate contracts) 0 0
Derivative financial liabilities (interest rate contracts) 0  
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Interest rate contracts | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative financial assets (interest rate contracts) 287 602
Derivative financial liabilities (interest rate contracts) 1,361  
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Interest rate contracts | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative financial assets (interest rate contracts) 0 $ 0
Derivative financial liabilities (interest rate contracts) $ 0  
v3.24.0.1
Fair Value of Assets and Liabilities - Narrative (Details)
12 Months Ended
Dec. 31, 2023
USD ($)
security
Dec. 31, 2022
USD ($)
security
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Credit loss on held-to-maturity securities | $ $ 0 $ 0
Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Number of securities | security 0 0
v3.24.0.1
Fair Value of Assets and Liabilities - Schedule of Fair Value Assets Measured on Non-recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities $ 552,028 $ 802,096
Assets and liabilities at fair value measured on a recurring basis | Other real estate owned | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 455
Assets and liabilities at fair value measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Assets and liabilities at fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Other real estate owned | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities 0 0
Assets and liabilities at fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Other real estate owned | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale securities $ 0 $ 455
v3.24.0.1
Fair Value of Assets and Liabilities - Schedule of Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Financial assets (recorded at amortized cost)    
Investment securities held-to-maturity $ 814,830 $ 845,239
Fair Value Hierarcy (Level 1) | Carrying Value    
Financial assets (recorded at amortized cost)    
Cash and cash equivalents 30,453 45,424
Financial liabilities (recorded at amortized cost)    
Federal Home Loan Bank overnight borrowings 0 112,000
Fair Value Hierarcy (Level 1) | Fair Value    
Financial assets (recorded at amortized cost)    
Cash and cash equivalents 30,453 45,424
Financial liabilities (recorded at amortized cost)    
Federal Home Loan Bank overnight borrowings 0 112,000
Significant Other Observable Inputs (Level 2) | Carrying Value    
Financial assets (recorded at amortized cost)    
Investment securities held-to-maturity 925,198 972,207
Interest receivable 12,752 13,069
Financial liabilities (recorded at amortized cost)    
Time deposits 251,317 119,030
FRBSF short-term borrowings under the BTFP 26,000 0
Interest payable 2,752 75
Significant Other Observable Inputs (Level 2) | Fair Value    
Financial assets (recorded at amortized cost)    
Investment securities held-to-maturity 814,830 845,239
Interest receivable 12,752 13,069
Financial liabilities (recorded at amortized cost)    
Time deposits 252,824 118,333
FRBSF short-term borrowings under the BTFP 25,998 0
Interest payable 2,752 75
Fair Value Hierarchy (Level 3) | Carrying Value    
Financial assets (recorded at amortized cost)    
Loans, net of allowance for credit losses 2,048,548 2,069,563
Fair Value Hierarchy (Level 3) | Fair Value    
Financial assets (recorded at amortized cost)    
Loans, net of allowance for credit losses $ 1,939,702 $ 1,993,866
v3.24.0.1
Benefit Plans - Deferred Compensation Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Jan. 01, 2023
Dec. 31, 2022
Jan. 01, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Interest rate earned on deferred amounts, prime rate first business day of year   7.50%   3.25%
Deferred compensation obligation $ 6.6   $ 7.1  
Annual Salary | Management        
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Maximum percentage of compensation allowed to be deferred 80.00%      
Deferred Bonus | Management        
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Maximum percentage of compensation allowed to be deferred 100.00%      
v3.24.0.1
Benefit Plans - Defined Contribution Plan and Employee Stock Ownership Plan (Details) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Contribution Plan Disclosure [Line Items]      
Employer matching contribution percentage 70.00%    
Employer matching contribution maximum amount $ 5,000    
Stock issued to employee stock ownership plan $ 1,315,000 $ 1,233,000 $ 1,330,000
Defined Contribution Plan (the 401k Plan)      
Defined Contribution Plan Disclosure [Line Items]      
Minimum age of eligible employee for 401(k) plan 18 years    
Minimum employment period to qualify for 401(k) plan 90 days    
Minimum annual contribution per employee, percent of eligible compensation 1.00%    
Maximum annual contribution per employee, percent of eligible compensation 50.00%    
Annual vesting percentage 20.00%    
Defined contribution plan, number of years to be fully vested 5 years    
Employer contributions $ 871,000 949,000 991,000
Bank of Marin Employee Stock Ownership and Savings Plan (the Plan)      
Defined Contribution Plan Disclosure [Line Items]      
Defined contribution plan, number of years to be fully vested 5 years    
Stock issued to employee stock ownership plan $ 1,300,000 $ 1,200,000 $ 1,300,000
v3.24.0.1
Benefit Plans - Supplemental Executive Retirement Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Percentage of salary paid upon retirement 25.00%  
Period before ratable vesting begins 5 years  
Age ratable vesting ends 65 years  
Liability under the Salary Continuation Plan $ 4.5 $ 4.7
Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Payment period determined by service period 5 years  
Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Payment period determined by service period 15 years  
v3.24.0.1
Income Taxes - Schedule of Components of Income Tax Provision (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current tax provision      
Federal $ 3,234 $ 10,670 $ 6,627
State 2,823 6,687 4,815
Total current tax provision 6,057 17,357 11,442
Deferred tax provision (benefit)      
Federal 319 (441) 274
State (235) 7 (58)
Total deferred tax provision (benefit) 84 (434) 216
Total income tax provision $ 6,141 $ 16,923 $ 11,658
v3.24.0.1
Income Taxes - Schedule of Deferred Tax Asset and Liability (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Net unrealized losses on securities available-for-sale $ 20,993,000 $ 29,458,000
Allowance for credit losses on loans and unfunded loan commitments 7,775,000 7,229,000
Operating and finance lease liabilities 6,860,000 8,002,000
Deferred compensation and salary continuation plans 3,289,000 3,481,000
Accrued but unpaid expenses 1,709,000 1,751,000
Net operating loss carryforwards 1,136,000 1,239,000
Fair value adjustment on acquired loans 695,000 905,000
Stock-based compensation 632,000 697,000
State franchise tax 593,000 1,396,000
Depreciation and disposals on premises and equipment 179,000 236,000
Other 74,000 194,000
Total gross deferred tax assets 43,935,000 54,588,000
Deferred tax liabilities:    
Operating and finance lease right-of-use assets (6,092,000) (7,465,000)
Deferred loan origination costs and fees (1,435,000) (1,476,000)
Core deposit intangible assets (1,113,000) (1,512,000)
Other (226,000) (279,000)
Total gross deferred tax liabilities (8,866,000) (10,732,000)
Net deferred tax assets 35,069,000 43,856,000
Net operating loss carryforwards 1,136,000 1,239,000
Valuation allowance of deferred tax assets 0 $ 0
California    
Deferred tax liabilities:    
Net operating loss carryforwards expected to expire $ 13,300,000  
v3.24.0.1
Income Taxes - Schedule of Effective Income Tax Reconciliation (Details)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Effective Income Tax Rate Reconciliation, Percent      
Federal statutory income tax rate 21.00% 21.00% 21.00%
California franchise tax, net of federal tax benefit 7.90% 8.30% 8.40%
Tax exempt interest on municipal securities and loans (3.10%) (1.90%) (2.50%)
Tax exempt earnings on bank owned life insurance (1.50%) (0.40%) (1.00%)
Non-deductible acquisition related expenses 0.00% 0.00% 0.60%
Non-deductible executive compensation 0.00% 0.00% 0.40%
Low income housing and qualified zone academy bond tax credits (0.60%) (0.20%) (0.40%)
Stock-based compensation and excess tax deficiencies (benefits) 0.20% 0.00% (0.10%)
Other (0.30%) (0.20%) (0.40%)
Effective Tax Rate 23.60% 26.60% 26.00%
v3.24.0.1
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Loss Contingencies [Line Items]      
Total minimum lease payments $ 25,352    
Balance of escrow account for legal settlements maintained by Visa [1] 330 $ 0 $ 1,930
Operating lease, lease not yet commenced, liability $ 2,000    
Minimum      
Loss Contingencies [Line Items]      
Operating lease, remaining lease term (in years) 4 months    
Finance lease, initial contract terms (in years) 3 years    
Maximum      
Loss Contingencies [Line Items]      
Operating lease, remaining lease term (in years) 18 years 5 months    
Finance lease, initial contract terms (in years) 5 years    
[1]
1Restricted cash includes reserve requirements held with the Federal Reserve Bank of San Francisco and other cash pledged. In response to the COVID-19 pandemic, the Federal Reserve reduced the reserve requirement ratios to zero percent effective March 26, 2020.
The accompanying notes are an integral part of these consolidated financial statements.
v3.24.0.1
Commitments and Contingencies - Schedule of Operating and Finance Lease Right-of-Use Assets and Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Operating leases:    
Operating lease right-of-use assets $ 20,316 $ 24,821
Operating lease liabilities $ 22,906 $ 26,639
Finance leases:    
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Bank premises and equipment, net Bank premises and equipment, net
Finance lease right-of-use assets $ 608 $ 616
Accumulated amortization (319) (187)
Finance lease right-of-use assets, net 289 429
Present value of net minimum lease payments (lease liability) $ 298 $ 439
v3.24.0.1
Commitments and Contingencies - Schedule of Noncash Investing and Financing Activities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]      
Right-of-use assets obtained in exchange for operating lease liabilities $ 437 $ 6,116 $ 2,376
Right-of-use assets obtained in exchange for finance lease liabilities $ 7 $ 151 $ 444
v3.24.0.1
Commitments and Contingencies - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]      
Operating lease cost $ 5,493 $ 5,356 $ 4,823
Variable lease cost 0 0 0
Total operating lease cost 5,493 5,356 4,823
Finance lease cost:      
Amortization of right-of-use assets 147 127 96
Interest on finance lease liabilities 7 3 2
Total finance lease cost 154 130 98
Total lease cost $ 5,647 $ 5,486 $ 4,921
v3.24.0.1
Commitments and Contingencies - Schedule of Lease Liability Maturity Schedule (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Operating Leases    
2024 $ 4,753  
2025 4,112  
2026 3,373  
2027 3,096  
2028 2,710  
Thereafter 7,308  
Total minimum lease payments 25,352  
Amounts representing interest (present value discount) (2,446)  
Present value of net minimum lease payments (lease liability) $ 22,906 $ 26,639
Weighted average remaining term (in years) 7 years 3 months 18 days  
Weighted average discount rate 2.40%  
Finance Leases    
2024 $ 155  
2025 108  
2026 38  
2027 5  
2028 0  
Thereafter 0  
Total minimum lease payments 306  
Amounts representing interest (present value discount) (8)  
Present value of net minimum lease payments (lease liability) $ 298 $ 439
Weighted average remaining term (in years) 2 years 2 months 12 days  
Weighted average discount rate 2.07%  
v3.24.0.1
Concentrations of Credit Risk (Details) - Credit concentration risk - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
U.S. Government, its agencies and Government Sponsored Enterprises (GSEs) | U.S. Government And Government-Sponsored Enterprises    
Concentration Risk [Line Items]    
Concentration risk amount $ 1,272.0 $ 1,535.0
Concentration risk percentage 86.00% 87.00%
Non-Government Sponsored Enterprises | U.S. Government And Government-Sponsored Enterprises    
Concentration Risk [Line Items]    
Concentration risk amount $ 167.4 $ 106.1
Non-Government Sponsored Enterprises | Non-Government Sponsored Enterprises    
Concentration Risk [Line Items]    
Concentration risk percentage 1.00% 1.00%
Loans Receivable    
Concentration Risk [Line Items]    
Concentration risk, threshold for major borrower, percentage 3.00% 3.00%
Loans Receivable | Commercial real estate | San Francisco    
Concentration Risk [Line Items]    
Concentration risk percentage 3.00%  
Loans on real estate | Residential loans    
Concentration Risk [Line Items]    
Concentration risk percentage 90.00%  
Loans on real estate | Commercial real estate | Commercial real estate, non-owner occupied    
Concentration Risk [Line Items]    
Concentration risk percentage 6.00%  
v3.24.0.1
Derivative Financial Instruments and Hedging Activities - Narrative (Details) - Interest rate swap
$ in Millions
1 Months Ended
Jul. 07, 2023
USD ($)
Dec. 31, 2023
USD ($)
interest_rate_swap
Derivatives, Fair Value [Line Items]    
Derivative notional amount | $ $ 101.8 $ 8.6
Fair value hedge | Designated as hedging instrument    
Derivatives, Fair Value [Line Items]    
Number of instruments held   3
Number instruments terminated   1
Minimum    
Derivatives, Fair Value [Line Items]    
Derivative, term of contract 2 years 6 months  
Maximum    
Derivatives, Fair Value [Line Items]    
Derivative, term of contract 3 years  
v3.24.0.1
Derivative Financial Instruments and Hedging Activities - Schedule of Information on Derivatives (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Accrued interest $ 2,300 $ 3,200
Available For Sale Securities    
Derivatives, Fair Value [Line Items]    
Carrying Amounts of Hedged Assets 107,181 0
Cumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets (1,359) 0
Loans Receivable    
Derivatives, Fair Value [Line Items]    
Carrying Amounts of Hedged Assets 8,183 11,319
Cumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets (367) (726)
Fair value hedge    
Derivatives, Fair Value [Line Items]    
Accrued interest 222  
Fair value hedge | Designated as hedging instrument | Interest rate swap | Available For Sale Securities    
Derivatives, Fair Value [Line Items]    
Interest rate contracts notional amount, asset derivatives 0 0
Interest rate contracts notional amount, liability derivatives 101,770 0
Interest rate contracts fair value, asset derivatives 0 0
Interest rate contracts fair value, liability derivatives 1,359 0
Fair value hedge | Designated as hedging instrument | Interest rate contract | Loans Receivable    
Derivatives, Fair Value [Line Items]    
Interest rate contracts notional amount, asset derivatives 6,441 12,046
Interest rate contracts notional amount, liability derivatives 2,157 0
Interest rate contracts fair value, asset derivatives 287 602
Interest rate contracts fair value, liability derivatives $ 2 $ 0
v3.24.0.1
Derivative Financial Instruments and Hedging Activities - Schedule of Interest Income (Details) - Fair value hedge - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Interest on investment securities      
Derivatives, Fair Value [Line Items]      
(Decrease) increase in fair value of interest rate swaps hedging loans receivable $ (1,359) $ 0 $ 0
Hedged interest earned (paid) 367 0 0
Increase (decrease) in carrying value included in the hedged loans 1,359 0 0
Net gain (loss) recognized in interest income on loans 367 0 0
Interest and fees on loans      
Derivatives, Fair Value [Line Items]      
(Decrease) increase in fair value of interest rate swaps hedging loans receivable (317) 1,687 827
Hedged interest earned (paid) 268 (143) (369)
Increase (decrease) in carrying value included in the hedged loans 359 (1,666) (814)
Decrease in value of yield maintenance agreement (9) (10) (11)
Net gain (loss) recognized in interest income on loans $ 301 $ (132) $ (367)
v3.24.0.1
Derivative Financial Instruments and Hedging Activities - Schedule of Offsetting of Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Gross amounts of recognized assets $ 287 $ 602
Gross amounts offset in the statements of condition 0 0
Net amounts of assets presented in the statements of condition 287 602
Gross amounts not offset in the statements of condition, financial instruments 0 0
Gross amounts not offset in the statements of condition, cash collateral received 0 0
Net Amount 287 602
Counterparty    
Derivatives, Fair Value [Line Items]    
Gross amounts of recognized assets 287 602
Gross amounts offset in the statements of condition 0 0
Net amounts of assets presented in the statements of condition 287 602
Gross amounts not offset in the statements of condition, financial instruments 0 0
Gross amounts not offset in the statements of condition, cash collateral received 0 0
Net Amount $ 287 $ 602
v3.24.0.1
Derivative Financial Instruments and Hedging Activities - Schedule of Offsetting of Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Gross Amounts of Recognized Liabilities $ 1,361 $ 0
Gross Amounts Offset in the Statements of Condition 0 0
Net Amounts of Liabilities Presented in the Statements of Condition 1,361 0
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments (287) 0
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged (330) 0
Net Amount 744 0
Counterparty    
Derivatives, Fair Value [Line Items]    
Gross Amounts of Recognized Liabilities 1,361 0
Gross Amounts Offset in the Statements of Condition 0 0
Net Amounts of Liabilities Presented in the Statements of Condition 1,361 0
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments (287) 0
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Pledged (330) 0
Net Amount $ 744 $ 0
v3.24.0.1
Regulatory Matters - Schedule of Capital Adequacy Ratios (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Bancorp    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Total Capital, Actual, Amount $ 440,842 $ 431,667
Total Capital (to risk-weighted assets), Actual, Ratio 0.1689 0.1590
Total Capital, Minimum Capital for Capital Adequacy Purposes, Amount $ 274,002 $ 285,079
Total Capital (to risk-weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio 0.1050 0.1050
Total Capital, Minimum Capital to be Well Capitalized, Amount $ 260,954 $ 271,504
Total Capital (to risk-weighted assets), Minimum to be Well Capitalized, Ratio 0.1000 0.1000
Tier 1 Risk Based Capital, Actual, Amount $ 415,224 $ 407,912
Tier 1 Risk Based Capital (to risk-weighted assets), Actual, Ratio 0.1591 0.1502
Tier 1 Capital, Minimum Capital for Capital Adequacy Purposes, Amount $ 221,811 $ 230,778
Tier OneR isk Based Capital Required For Capital Adequacy With Buffer To Risk Weighted Assets 0.0850 0.0850
Tier One Risk Based Capital Required For Capital Adequacy With Buffer $ 208,763 $ 217,203
Tier 1 Risk Based Capital (to risk-weighted assets), Minimum Capital to be Well Capitalized, Ratio 0.0800 0.0800
Tier 1 Leverage Capital, Amount, Actual $ 415,224 $ 407,912
Tier 1 Leverage Capital (to average assets), Actual, Ratio 0.1046 0.0960
Tier 1 Leverage Capital, Minimum Capital for Capital Adequacy Purposes, Amount $ 158,771 $ 169,948
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio 0.0400 0.0400
Tier 1 Leverage Capital, Actual, Amount $ 198,464 $ 212,435
Tier 1 Leverage Capital (to average assets), Minimum Capital to be Well Capitalized, Ratio 0.0500 0.0500
Tier 1 Common Equity $ 415,224 $ 407,912
Tier 1 Common Equity To Average Assets 15.91% 15.02%
Tier 1 Common Equity Required for Capital Adequacy $ 182,668 $ 190,053
Tier 1 Common Equity Required for Capital Adequacy to Average Assets 7.00% 7.00%
Tier 1 Common Equity Required to be Well Capitalized $ 169,620 $ 176,478
Tier 1 Common Equity Required to be Well Capitalized to Average Assets 6.50% 6.50%
The Bank    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Total Capital, Actual, Amount $ 433,598 $ 427,108
Total Capital (to risk-weighted assets), Actual, Ratio 0.1662 0.1573
Total Capital, Minimum Capital for Capital Adequacy Purposes, Amount $ 273,986 $ 285,052
Total Capital (to risk-weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio 0.1050 0.1050
Total Capital, Minimum Capital to be Well Capitalized, Amount $ 260,939 $ 271,478
Total Capital (to risk-weighted assets), Minimum to be Well Capitalized, Ratio 0.1000 0.1000
Tier 1 Risk Based Capital, Actual, Amount $ 407,981 $ 403,352
Tier 1 Risk Based Capital (to risk-weighted assets), Actual, Ratio 0.1564 0.1486
Tier 1 Capital, Minimum Capital for Capital Adequacy Purposes, Amount $ 221,798 $ 230,757
Tier OneR isk Based Capital Required For Capital Adequacy With Buffer To Risk Weighted Assets 0.0850 0.0850
Tier One Risk Based Capital Required For Capital Adequacy With Buffer $ 208,751 $ 217,183
Tier 1 Risk Based Capital (to risk-weighted assets), Minimum Capital to be Well Capitalized, Ratio 0.0800 0.0800
Tier 1 Leverage Capital, Amount, Actual $ 407,981 $ 403,352
Tier 1 Leverage Capital (to average assets), Actual, Ratio 0.1028 0.0949
Tier 1 Leverage Capital, Minimum Capital for Capital Adequacy Purposes, Amount $ 158,767 $ 169,940
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio 0.0400 0.0400
Tier 1 Leverage Capital, Actual, Amount $ 198,459 $ 212,425
Tier 1 Leverage Capital (to average assets), Minimum Capital to be Well Capitalized, Ratio 0.0500 0.0500
Tier 1 Common Equity $ 407,981 $ 403,352
Tier 1 Common Equity To Average Assets 15.64% 14.86%
Tier 1 Common Equity Required for Capital Adequacy $ 182,657 $ 190,035
Tier 1 Common Equity Required for Capital Adequacy to Average Assets 7.00% 7.00%
Tier 1 Common Equity Required to be Well Capitalized $ 169,610 $ 176,461
Tier 1 Common Equity Required to be Well Capitalized to Average Assets 6.50% 6.50%
v3.24.0.1
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Commercial lines of credit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loan commitments and standby letters of credit, off-balance sheet $ 259,989 $ 292,204
Revolving home equity lines    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loan commitments and standby letters of credit, off-balance sheet 218,935 218,907
Undisbursed construction loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loan commitments and standby letters of credit, off-balance sheet 13,943 43,179
Personal and other lines of credit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loan commitments and standby letters of credit, off-balance sheet 9,136 10,842
Standby letters of credit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loan commitments and standby letters of credit, off-balance sheet 3,147 1,738
Total unfunded loan commitments and standby letters of credit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loan commitments and standby letters of credit, off-balance sheet $ 505,150 566,870
Percentage of commitments expiring in 2023 38.00%  
Percentage of commitments expiring between 2024 and 2030 51.00%  
Percentage of commitments expiring 2030 and thereafter 11.00%  
Allowance for off-balance sheet commitments $ 1,100 $ 1,500
v3.24.0.1
Condensed Bank of Marin Bancorp Parent Only Financial Statements - Condensed Uncosolidated Statements of Condition (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Assets        
Total assets $ 3,803,903 $ 4,147,464    
Liabilities and Stockholders' Equity        
Other liabilities 25,562 22,946    
Total liabilities 3,364,841 3,735,372    
Stockholders' equity 439,062 412,092 $ 450,368 $ 358,253
Total liabilities and stockholders' equity 3,803,903 4,147,464    
Bancorp        
Assets        
Cash and due from Bank of Marin 7,189 4,493    
Investment in bank subsidiary 431,819 407,532    
Other assets 156 255    
Total assets 439,164 412,280    
Liabilities and Stockholders' Equity        
Accrued expenses payable 102 188    
Other liabilities 0 0    
Total liabilities 102 188    
Stockholders' equity 439,062 412,092    
Total liabilities and stockholders' equity $ 439,164 $ 412,280    
v3.24.0.1
Condensed Bank of Marin Bancorp Parent Only Financial Statements - Condensed Unconsolidated Statements of Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Expense      
Interest expense $ 36,733 $ 2,549 $ 3,402
Non-interest expense 79,481 75,269 72,638
Income tax benefit (6,141) (16,923) (11,658)
Net income 19,895 46,586 33,228
Bancorp      
Income      
Dividends from bank subsidiary 20,000 16,200 64,000
Miscellaneous income 0 0 0
Total income 20,000 16,200 64,000
Expense      
Interest expense 0 0 1,361
Non-interest expense 1,705 1,793 4,025
Total expense 1,705 1,793 5,386
Income before income taxes and equity in undistributed net income of subsidiary 18,295 14,407 58,614
Income tax benefit 504 530 1,235
Income before equity in undistributed net income of subsidiary 18,799 14,937 59,849
Earnings of bank subsidiary greater (less) than dividends received from bank subsidiary 1,096 31,649 (26,621)
Net income $ 19,895 $ 46,586 $ 33,228
v3.24.0.1
Condensed Bank of Marin Bancorp Parent Only Financial Statements - Condensed Unconsolidated Statements of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows from Operating Activities:      
Net income $ 19,895 $ 46,586 $ 33,228
Accretion of discount on subordinated debenture 0 0 1,347
Noncash director compensation expense 398 355 217
Other assets (4,149) 2,228 5,554
Other liabilities 2,378 (4,708) 2,276
Net cash provided by operating activities 35,659 55,277 45,253
Cash Flows from Investing Activities:      
Net cash provided by (used in) investing activities 334,691 (218,097) (340,666)
Cash Flows from Financing Activities:      
Repayment of subordinated debenture including execution costs 0 0 (4,126)
Restricted stock surrendered for tax withholdings upon vesting (70) (40) (166)
Cash dividends paid on common stock (16,106) (15,673) (13,107)
Stock repurchased, including commissions 0 (1,250) (40,762)
Net cash (used in) provided by financing activities (385,321) (139,397) 442,734
Net (decrease) increase in cash, cash equivalents and restricted cash (14,971) (302,217) 147,321
Cash, cash equivalents and restricted cash at beginning of period 45,424 347,641 200,320
Cash, cash equivalents and restricted cash at end of period 30,453 45,424 347,641
Stock issued in payment of director fees 398 355 217
Repurchase of stock not yet settled 0 0 373
Bancorp      
Cash Flows from Operating Activities:      
Net income 19,895 46,586 33,228
Earnings of bank subsidiary (greater) less than dividends received from bank subsidiary (1,096) (31,649) 26,621
Accretion of discount on subordinated debenture 0 0 1,347
Noncash director compensation expense 60 36 35
Other assets 99 (12) (1,655)
Other liabilities (86) (129) (88)
Net cash provided by operating activities 18,872 14,832 59,488
Cash Flows from Investing Activities:      
Capital contribution to bank subsidiary (276) (899) (619)
Net cash provided by (used in) investing activities (276) (899) (619)
Cash Flows from Financing Activities:      
Repayment of subordinated debenture including execution costs 0 0 (4,126)
Restricted stock surrendered for tax withholdings upon vesting (70) (40) (166)
Cash dividends paid on common stock (16,106) (15,673) (13,107)
Stock repurchased, including commissions 0 (1,250) (40,762)
Proceeds from stock options exercised and stock issued under employee and director stock purchase plans 276 899 587
Net cash (used in) provided by financing activities (15,900) (16,064) (57,574)
Net (decrease) increase in cash, cash equivalents and restricted cash 2,696 (2,131) 1,295
Cash, cash equivalents and restricted cash at beginning of period 4,493 6,624 5,329
Cash, cash equivalents and restricted cash at end of period 7,189 4,493 6,624
Stock issued in payment of director fees 398 355 217
Repurchase of stock not yet settled 0 0 373
Stock issued to employee stock ownership plan $ 1,315 $ 1,233 $ 1,330
v3.24.0.1
Merger - Narrative (Details)
$ in Thousands
Aug. 06, 2021
USD ($)
shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Business Combination, Separately Recognized Transactions [Line Items]      
Goodwill   $ 72,754 $ 72,754
American River Bank (ARB) Merger      
Business Combination, Separately Recognized Transactions [Line Items]      
Assets $ 898,400    
Investment securities acquired 297,800    
Loans 419,400    
Liabilities 816,600    
Deposits 790,000    
Goodwill 42,600    
Total merger consideration 124,477    
Net assets acquired $ 81,900    
American River Bank (ARB) Merger | Bank of Marin      
Business Combination, Separately Recognized Transactions [Line Items]      
Business combination, number of common stock issued (in shares) | shares 3,441,235    
American River Bank (ARB) Merger | Common Stock      
Business Combination, Separately Recognized Transactions [Line Items]      
Fixed exchange ratio 0.575    
v3.24.0.1
Merger - Schedule of Consideration Paid for AMRB (Details) - AMRB
$ / shares in Units, $ in Thousands
Aug. 06, 2021
USD ($)
$ / shares
Business Acquisition [Line Items]  
Cash consideration for stock options $ 63
Cash paid in lieu of fractional shares 13
Total merger consideration 124,477
Common Stock  
Business Acquisition [Line Items]  
Value of common stock consideration paid to shareholders (0.575 fixed exchange ratio, stock price $36.15) $ 124,401
Fixed exchange ratio 0.575
Business combination, common stock issuance price per share (in dollars per share) | $ / shares $ 36.15
v3.24.0.1
Merger - Schedule of Merger-Related One-Time and Conversion Costs (Details) - Bank of Marin - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]      
Total merger-related and conversion costs $ 0 $ 858 $ 6,458
Personnel and severance      
Restructuring Cost and Reserve [Line Items]      
Total merger-related and conversion costs 0 393 3,005
Professional services      
Restructuring Cost and Reserve [Line Items]      
Total merger-related and conversion costs 0 67 1,976
Data processing      
Restructuring Cost and Reserve [Line Items]      
Total merger-related and conversion costs 0 77 1,127
Other expense      
Restructuring Cost and Reserve [Line Items]      
Total merger-related and conversion costs $ 0 $ 321 $ 350