CALIFORNIA BANCORP \ CA, 10-K filed on 3/13/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Mar. 10, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-41684    
Entity Registrant Name California Bancorp \ CA    
Entity Incorporation, State or Country Code CA    
Entity Tax Identification Number 84-3288397    
Entity Address, Address Line One 12265 El Camino Real    
Entity Address, Address Line Two Suite 210    
Entity Address, City or Town San Diego    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 92130    
City Area Code 844    
Local Phone Number 265-7622    
Title of 12(b) Security Common Stock, no par value per share    
Trading Symbol BCAL    
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    
Entity Small Business true    
Entity Emerging Growth Company true    
Entity Ex Transition Period true    
ICFR Auditor Attestation Flag false    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 388.6
Entity Common Stock, Shares Outstanding   32,326,866  
Documents Incorporated by Reference
The information required by Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K will be found in the Company’s definitive proxy statement for its 2026 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, and such information is incorporated herein by this reference.
   
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001795815    
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name RSM US LLP
Auditor Location Los Angeles, California
Auditor Firm ID 49
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
ASSETS    
Cash and due from banks $ 52,013 $ 60,471
Federal funds and interest-bearing balances 347,900 327,691
Total cash and cash equivalents 399,913 388,162
Debt securities available for sale, at fair value (amortized cost of $237,191 and $151,429 at December 31, 2025 and 2024, respectively) 234,890 142,001
Debt securities held to maturity, at amortized cost, net of allowance of $0 for both periods (fair value of $49,308 and $47,823 at December 31, 2025 and 2024, respectively) 52,936 53,280
Loans held for sale, at lower of cost or fair value 25,105 17,180
Loans held for investment 3,033,887 3,139,165
Allowance for credit losses on loans (34,348) (50,540)
Loans held for investment, net 2,999,539 3,088,625
Restricted stock, at cost 30,932 30,829
Premises and equipment, net 12,116 13,595
Right-of-use asset 15,094 14,350
Other real estate owned, net 0 4,083
Goodwill 110,934 111,787
Intangible assets, net 18,480 22,271
Bank owned life insurance 67,367 66,636
Deferred taxes assets, net 29,041 43,127
Accrued interest and other assets 37,039 35,728
Total assets 4,033,386 4,031,654
LIABILITIES    
Noninterest-bearing demand 1,178,256 1,257,007
Interest-bearing NOW accounts 840,593 673,589
Money market and savings accounts 1,223,486 1,182,927
Time deposits 128,246 285,237
Total deposits 3,370,581 3,398,760
Borrowings 33,832 69,725
Operating lease liability 18,936 18,310
Accrued interest and other liabilities 33,451 33,023
Total liabilities 3,456,800 3,519,818
Commitments and contingencies (Notes 4 and 14)
SHAREHOLDERS’ EQUITY    
Preferred stock - 50,000,000 shares authorized, no par value; no shares issued and outstanding at December 31, 2025 and 2024 0 0
Common stock - 50,000,000 shares authorized, no par value; issued and outstanding 32,418,182 and 32,265,935 at December 31, 2025 and 2024, respectively 442,394 442,469
Retained earnings 135,813 76,008
Accumulated other comprehensive loss, net of taxes (1,621) (6,641)
Total shareholders’ equity 576,586 511,836
Total liabilities and shareholders’ equity $ 4,033,386 $ 4,031,654
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Debt securities available-for-sale, amortized cost $ 237,191 $ 151,429
Debt securities held-to-maturity, at amortized cost, allowance 0 0
Debt securities held-to-maturity, fair value $ 49,308 $ 47,823
Preferred stock authorized (in shares) 50,000,000 50,000,000
Preferred stock issued (in shares) 0 0
Preferred stock outstanding (in shares) 0 0
Common stock authorized (in shares) 50,000,000 50,000,000
Common stock issued (in shares) 32,418,182 32,265,935
Common stock outstanding (in shares) 32,418,182 32,265,935
v3.25.4
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
INTEREST AND DIVIDEND INCOME    
Interest and fees on loans $ 195,913 $ 159,960
Interest on debt securities 7,820 5,827
Interest on tax-exempted debt securities 1,209 1,223
Interest on deposits at other financial institutions 18,702 11,011
Interest and dividends on other interest-earning assets 2,336 1,777
Total interest and dividend income 225,980 179,798
INTEREST EXPENSE    
Interest on NOW, money market and savings accounts 46,041 37,329
Interest on time deposits 6,219 15,432
Interest on borrowings 4,628 4,053
Total interest expense 56,888 56,814
Net interest income 169,092 122,984
(Reversal of) provision for credit losses (8,823) 21,690
Net interest income after (reversal of) provision for credit losses 177,915 101,294
NONINTEREST INCOME    
Gain (loss) on sale of loans 577 (672)
Income from bank owned life insurance 2,336 1,748
Servicing and related income on loans, net 453 307
Loss on sale and disposal of fixed assets (1) (19)
Other charges and fees 3,150 256
Total noninterest income 11,085 4,760
NONINTEREST EXPENSE    
Salaries and employee benefits 62,288 49,845
Occupancy and equipment 8,601 7,242
Data processing and communications 7,608 5,832
Legal, audit and professional 3,646 2,559
Regulatory assessments 2,282 1,714
Director and shareholder expenses 1,463 1,410
Merger and related expenses 0 16,288
Intangible asset amortization 3,791 1,877
Litigation settlements, net 2,035 0
Other real estate owned expenses 924 5,246
Other expenses 8,405 5,778
Total noninterest expense 101,043 97,791
Income before income taxes 87,957 8,263
Income tax expense 24,899 2,830
Net income $ 63,058 $ 5,433
Earnings per share:    
Basic (in dollars per share) $ 1.95 $ 0.22
Diluted (in dollars per share) $ 1.93 $ 0.22
Service charges and fees on deposit accounts    
NONINTEREST INCOME    
Revenue $ 3,170 $ 2,106
Interchange and ATM income    
NONINTEREST INCOME    
Revenue $ 1,400 $ 1,034
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Statement of Comprehensive Income [Abstract]    
Net income $ 63,058 $ 5,433
Unrealized gain (loss) on available-for-sale debt securities:    
Change in net unrealized gain (loss) 7,127 (3,097)
Unrealized gain (loss) on securities available for sale 7,127 (3,097)
Income tax expense (benefit):    
Change in net unrealized gain (loss) 2,107 (915)
Income tax benefit (expense) 2,107 (915)
Total other comprehensive income (loss), net of tax 5,020 (2,182)
Total comprehensive income, net of tax $ 68,078 $ 3,251
v3.25.4
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($)
$ in Thousands
Total
Common Stock and Additional Paid in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2023   18,369,115    
Beginning balance at Dec. 31, 2023 $ 288,152 $ 222,036 $ 70,575 $ (4,459)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Stock-based compensation 6,244 $ 6,244    
Issuance of common stock in business combination (in shares) [1]   13,497,091    
Issuance of common stock in business combination [1] $ 214,380 $ 214,380    
Stock options exercised (in shares) 112,275 112,275    
Stock options exercised $ 950 $ 950    
Restricted stock units vested (in shares) [2]   430,179    
Restricted stock units vested [2] 825 $ 825    
Repurchase of shares in settlement of restricted stock units (in shares)   (142,725)    
Repurchase of shares in settlement of restricted stock units (1,966) $ (1,966)    
Net income 5,433   5,433  
Other comprehensive income (loss) $ (2,182)     (2,182)
Ending balance (in shares) at Dec. 31, 2024 32,265,935 32,265,935    
Ending balance at Dec. 31, 2024 $ 511,836 $ 442,469 76,008 (6,641)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Stock-based compensation $ 5,822 $ 5,822    
Stock options exercised (in shares) 18,013 18,013    
Stock options exercised $ 132 $ 132    
Restricted stock units vested (in shares)   503,406    
Restricted stock units vested 0 $ 0    
Repurchase of shares in settlement of restricted stock units (in shares)   (157,244)    
Repurchase of shares in settlement of restricted stock units $ (2,663) $ (2,663)    
Common stock repurchased under authorized stock repurchase program (in shares) (211,928) (211,928)    
Common stock repurchased under authorized stock repurchase program $ (3,366) $ (3,366)    
Common stock dividends (3,253)   (3,253)  
Net income 63,058   63,058  
Other comprehensive income (loss) $ 5,020     5,020
Ending balance (in shares) at Dec. 31, 2025 32,418,182 32,418,182    
Ending balance at Dec. 31, 2025 $ 576,586 $ 442,394 $ 135,813 $ (1,621)
[1] Includes $1.3 million related to replacement awards granted in connection with the business combination (Refer to Note 2 - Business Combinations).
[2] Related to the acceleration of 123,123 replacement awards issued in connection with the business combination for non-continuing directors, executives and employees (Refer to Note 2 - Business Combinations).
v3.25.4
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Jul. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Cash consideration   $ 0 $ 1,433
CALB | Former Non-Continuing Directors, Officers And Employees      
Number of shares issued (in shares) 82,364    
Restricted Stock Units | CALB      
Cash consideration     $ 1,300
Restricted Stock Units | CALB | Former Non-Continuing Directors, Officers And Employees      
Number of shares issued (in shares)   123,123 123,123
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
OPERATING ACTIVITIES    
Net income $ 63,058 $ 5,433
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation on premises and equipment 1,824 1,759
Core deposit intangible amortization 3,791 1,877
Accretion of net discounts and deferred loan fees (21,273) (12,313)
Amortization of discounts of debt securities (1,450) (939)
(Gain) loss on sale of loans (577) 680
Loss on sale and disposal of fixed assets 1 19
Loans originated for sale (8,955) (6,324)
Proceeds from sales of and principal collected on loans held for sale 9,569 6,778
(Reversal of) provision for credit losses (8,823) 21,690
Deferred income tax expense (benefit) 11,482 (426)
Impairment charges of right-of-use assets 0 78
Stock-based compensation 5,822 6,244
Income from bank owned life insurance (2,336) (1,748)
Loss on sale of other real estate owned 862 4,783
Valuation allowance on other real estate owned 0 614
Net decrease in other items 4,295 22,087
Net cash provided by operating activities 57,290 50,292
INVESTING ACTIVITIES    
Net cash acquired in business combination 0 336,298
Proceeds from bank owned life insurance death benefits 1,572 0
Proceeds from sale of debt securities available for sale 0 3,400
Proceeds from maturities and paydowns of debt securities available for sale 38,396 27,528
Purchases of debt securities available for sale (122,364) (2,041)
Purchases of debt securities held to maturity 0 0
Purchases of restricted stock (103) (8,914)
Net (contributions) distributions of stock investments (680) 2,217
Net repayment of loans 98,357 81,549
Proceeds from sale of loans held for investment 13,500 76,843
Proceeds from sale of other real estate owned 1,421 8,327
Purchases of premises and equipment (346) (552)
Net cash provided by investing activities 29,753 524,655
FINANCING ACTIVITIES    
Net decrease in deposits (28,142) (187,562)
Repayment of Federal Home Loan Bank advances 0 (85,000)
Repayment of other borrowings (38,000) 0
Proceeds from exercise of stock options 132 950
Repurchase of shares in settlement of restricted stock units (2,663) (1,966)
Repurchase of common stock under authorized stock repurchase program (3,366) 0
Common stock dividends (3,253) 0
Net cash used in financing activities (75,292) (273,578)
Net change in cash and cash equivalents 11,751 301,369
Cash and cash equivalents at beginning of year 388,162 86,793
Cash and cash equivalents at end of year 399,913 388,162
Supplemental Disclosures of Cash Flow Information:    
Interest paid 58,481 52,093
Taxes paid (Note 11) 9,779 2,886
Lease liability arising from obtaining right-of-use assets 4,796 105
Loans transferred from loans held for investment to loans held for sale 17,300 25,900
Loans transferred from loans held for investment to other real estate owned 0 17,701
Loan to facilitate sale of other real estate owned 1,800 0
Liabilities assumed in business combination (Note 2):    
Fair value of net assets acquired 0 1,938,700
Fair value of stock and equity award consideration 0 215,205
Cash consideration 0 (1,433)
Liabilities assumed 0 1,722,062
Goodwill measurement period adjustments $ (853) $ (728)
v3.25.4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations

California BanCorp is a California corporation incorporated on October 2, 2019 and is registered with the Board of Governors of the Federal Reserve System as a bank holding company for California Bank of Commerce, N.A. under the Bank Holding Company Act of 1956, as amended. On May 15, 2020, the Company completed a reorganization whereby the Bank became a wholly-owned subsidiary of the Company. California Bank of Commerce, N.A. began business operations in December 2001 under the name Ramona National Bank. The Bank changed its name to First Business Bank, N.A. in 2006, to Bank of Southern California, N.A. in 2010, and to California Bank of Commerce, N.A. on July 31, 2024. The Bank has a wholly-owned subsidiary, BCAL OREO1, LLC, which was incorporated on February 14, 2024. BCAL OREO1, LLC is used for holding other real estate owned and other assets acquired by foreclosure. The Bank operates under a federal charter and its primary regulator is the Office of the Comptroller of the Currency (“OCC”). The words “we,” “us,” “our,” or the “Company” refer to California BanCorp and California Bank of Commerce, N.A. collectively and on a consolidated basis. References herein to “California BanCorp,” or the “holding company” refer to California BanCorp on a stand-alone basis. References to the “Bank” refer to California Bank of Commerce, N.A.
As a relationship-focused community bank, the Bank offers a range of financial products and services to individuals, professionals, and small- to medium-sized businesses through its 14 branch offices and 11 commercial banking offices serving California. Many of the banking offices have been acquired through acquisitions.

Merger with California BanCorp
On January 30, 2024, Southern California Bancorp announced the execution of a definitive merger agreement with the former California BanCorp (“CALB”), the holding company for California Bank of Commerce, pursuant to which CALB would merge into Southern California Bancorp in an all-stock merger. The merger received all required regulatory approvals on May 13, 2024, shareholder approvals on July 17, 2024 and closed on July 31, 2024 (the “Merger”). Shareholders of Southern California Bancorp also approved a change of the Company’s name from Southern California Bancorp to California BanCorp. Refer to Note 2 - Business Combinations for additional information. California BanCorp retained the banking offices of both banks, adding California Bank of Commerce’s one full-service bank branch and its four loan production offices in Northern California to the Bank’s 13 full-service bank branches located throughout the Southern California region, for a total of 14 branch offices.

Basis of Presentation
The accompanying consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-K and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for financial reporting.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates in the Preparation of Consolidated Financial Statements

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change are the determination of the allowance for credit losses, the fair value of assets and liabilities acquired in business combinations and related purchase price allocation, the valuation of acquired loans, the valuation of goodwill and separately identifiable intangible assets associated with mergers and acquisitions, loan sales and servicing of financial assets and deferred tax assets and liabilities.

Operating Segments

We operate one reportable segment — commercial banking. The Company has one reporting unit, one operating segment and, consequently, a single reportable segment. The Company’s CODM is a role shared by three executive officers, the Chairman and Chief Executive Officer, President of the Company and Bank, and Chief Financial Officer of the Company and Chief Strategy Officer of the Bank. The Company’s CODM monitors revenue streams and other information regarding the products and services offered through the Company’s banking operations. The information provided to the CODM is presented on an aggregated single segment level basis, which is consistent with the accompanying consolidated financial statements presented in this Annual Report on Form 10-K. The CODM evaluates the financial performance of the Company’s business by evaluating revenue streams, significant expenses, and comparing budgeted to actual results in assessing operating results and in allocating resources, with profitability only determined at a single segment level. The CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CODM uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis, coupled with the monitoring of budgeted to actual results, is used in assessing performance and allocating resources. Loans, investments, and deposits provide the revenues from the Company's operations. Interest expense, provisions for credit losses, salaries and benefits, and occupancy expenses represent the significant expenses in the Company's operations. All of the Company's income and expenses are included in the accompanying consolidated statements of income presented in this Annual Report on Form 10-K. All of the Company’s operations are domestic. The Company’s assets are reflected in the accompanying consolidated balance sheet as “total assets.”

Cash and Cash Equivalents
Cash and cash equivalents include cash and due from banks, and federal funds sold and interest-bearing balances with other financial institutions represent primarily cash held at the Federal Reserve Bank of San Francisco and an FDIC insured bank. The Board of Governors of the Federal Reserve System (“Federal Reserve”) has cash reserve requirements for depository institutions based on the amount of deposits held. At December 31, 2025, the Bank had no required cash balance held by the Federal Reserve. The Company maintains amounts due from banks that exceed federally insured limits. The Company has not experienced any losses in such accounts.
Debt Securities
Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities classified as held-to-maturity securities are carried at amortized cost. Debt securities classified as “available-for-sale” may be sold prior to maturity
due to changes in interest rates, prepayment risks, and availability of alternative investments, or to meet our liquidity needs. Debt securities not classified as held-to-maturity securities nor as available-for-sale securities are classified as trading securities. Available-for-sale debt securities and trading debt securities are recorded at fair value. Unrealized gains or losses on available-for-sale securities are excluded from net income and reported as an amount net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Premiums or discounts, including fair value adjustments as a result of business combinations, on held-to-maturity and available-for-sale debt securities are amortized or accreted into income using the interest method. Realized gains or losses on sales of held-to-maturity or available-for-sale securities are recorded using the specific identification method. Debt securities held-to-maturity and available-for-sale are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When debt securities held-to-maturity and available-for-sale are placed on nonaccrual status, unpaid interest recognized as interest income is reversed.
Allowance for Credit Losses — Held-to-Maturity Debt Securities
An ACL is established for losses on held-to-maturity debt securities at the time of purchase or designation and is updated each period to reflect management’s expectations of CECL as of the date of the consolidated balance sheets. The ACL is estimated collectively for groups of debt securities with similar risk characteristics, and is determined at the individual security level when the Company deems a security to no longer possess shared risk characteristics. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. For debt securities where the Company has reason to believe the credit loss exposure is remote, a zero credit loss assumption is applied. Such debt securities were municipal securities, and historically have had limited credit loss experience. The Company does not anticipate any credit related losses in this investment portfolio. Changes in the ACL on held-to-maturity debt securities are recorded as a component of the (reversal of ) provision for credit losses in the consolidated statements of income. Losses are charged against the ACL when management believes the uncollectibility of a held-to-maturity debt security is confirmed.
Allowance for Credit Losses — Available-for-Sale Debt Securities
For available-for-sale debt securities, the Company evaluates, on an individual basis, whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. The portion of the decline attributable to credit losses is recognized through an ACL, and changes in the ACL on available-for-sale debt securities are recorded as a component of the provision for (reversal of) credit losses in the consolidated statements of income. The portion of decline in fair value below the amortized cost basis not attributable to credit is recognized through other comprehensive income (loss), net of applicable taxes.
Allowance for Credit Losses — Acquired Debt Securities
The Company has acquired debt securities through merger or acquisitions. To the extent acquired debt securities have more than insignificant credit deterioration since origination, they are designated as purchased credit-deteriorated (“PCD”) securities. An ACL is determined using the same methodology as with other debt securities. The sum of a PCD security’s fair value and associated ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the debt security is a noncredit discount or premium, which is amortized into interest income over the life of the security. Subsequent changes to the ACL are recorded through provision for credit losses.
Restricted Stock
The Bank is a member of the Federal Home Loan Bank (”FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors. In addition, the
Bank is a member of its regional Federal Reserve. FHLB and Federal Reserve stock are carried at cost, classified as a restricted stock, at cost, in the consolidated balance sheets and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as interest and dividends on other interest-earning assets in the accompanying consolidated statements of income. There was no impairment of FHLB and Federal Reserve stock during 2025 and 2024.
Other Equity Securities Without A Readily Determinable Fair Value
The Company also has restricted securities in the form of capital stock invested in two different banker’s bank stocks, other limited partnership investments and other equity investments in technology venture capital funds focused on the intersection of fintech and community banking. These investments do not have a readily determinable fair value, and they are measured at equity method of accounting when its ownership interest in such investments exceed 5% or carried at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer.
The Company invests in and acquired limited partnerships that operate affordable housing
projects throughout California that qualify for and have received an allocation of federal and/or state low-income housing tax credits. The Company accounts for these investments in qualified affordable housing tax credit funds using the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received as part of income tax expense (benefit). If the partnerships cease to qualify for tax credit, 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. These investments are included in accrued interest receivable and other assets in the accompanying consolidated balance sheets.
The Company evaluates its interests in these investments to determine whether it has a variable interest and whether it is required to consolidate these entities both at inception and on an ongoing basis. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity's expected residual returns. If the Company determines it has a variable interest in an entity, it evaluates whether such interest is variable interest entity (“VIE”). A VIE is consolidated by the primary beneficiary, which is the entity that has the power to direct the activities that most significantly impact the economic performance of the VIE and has the right to receive benefits or the obligation to absorb losses that are significant to the VIE. Significant judgments are made to determine whether these entities are VIEs and if the Company is the primary beneficiary.

Loans Held for Sale
Loans held for sale are primarily comprised of SBA 7(a) loans originated and intended for sale in the secondary market. These loans are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains or losses realized on the sales of SBA 7(a) loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the carrying value of the loans sold, adjusted for any servicing asset or liability. Gains and losses on sales of SBA 7(a) loans are included in gain (loss) on sale of loans in the accompanying consolidated statements of income.
Loans Held for Investment
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances reduced by net charge-offs and adjusted for net deferred fees or costs on originated loans, or unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Net deferred loan
origination fees and costs and premiums or discounts on acquired loans are accreted or amortized in interest income as an adjustment of yield, using the interest or straight-line methods, over the expected life of the loans. When a loan is paid off prior to maturity, the remaining unamortized fees and costs on originated loans and unamortized premiums or discounts on acquired loans are immediately recognized as interest income.
Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is generally discontinued when principal or interest is past due 90 days based on the contractual terms of the loan or earlier when, in the opinion of management, there is reasonable doubt as to collectability. Consumer solar loans are typically charged off no later than 120 days past due. Amortization of deferred loan fees and costs are also discontinued when a loan is placed on nonaccrual status. On a case-by-case basis, loans past due 90 days may remain on accrual, if the loan is well collateralized, actively in process of collection and, in the opinion of management, likely to be paid current within the next payment cycle. When loans are placed on nonaccrual status, all interest previously accrued but not collected is generally reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Interest accruals are resumed on such loans only when they are brought current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectable as to all principal and interest.
Allowance for Credit Losses — Loans
An ACL is the Company’s estimate of expected lifetime credit losses for its loans held for investment at the time of origination or acquisition and is maintained at a level deemed appropriate by management to provide for expected lifetime credit losses in the portfolio. The ACL consists of: (i) a specific allowance established for current expected credit losses on loans individually evaluated, (ii) a quantitative allowance for current expected credit losses based on the portfolio and expected economic conditions over a reasonable and supportable forecast period that reverts back to long-term trends to cover the expected life of the loan, (iii) a qualitative allowance including management judgment to capture factors and trends that are not adequately reflected in the quantitative allowance, and (iv) the ACL for off-balance sheet credit exposure for unfunded loan commitments (described in Allowance for Credit Losses - Off-Balance Sheet Credit Exposure below).
The ACL on loans held for investment represents the portion of the loans’ amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loans’ contractual life. Amortized cost does not include accrued interest, which management elected to exclude from the estimate of expected credit losses. Provision for credit losses for loans held for investment is included in provision for credit losses in the consolidated statements of income. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Subsequent recoveries, if any, are credited to the ACL. Credit losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income.
Estimating expected credit losses requires management to use relevant forward-looking information, including the use of reasonable and supportable forecasts. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. The Company measures the ACL using a discounted cash flow methodology, which utilizes pool-level assumptions and cash flow projections on an individual loan basis, which is then aggregated at the portfolio segment level and supplemented by a qualitative reserve that is applied to each portfolio segment level.
The Company’s loan portfolio consists of the following segments, based on regulatory call codes and related risk ratings:
Construction and land development loans are typically adjustable rate residential and commercial construction loans to builders, developers and consumers, with terms generally limited to 12 to 36 months. These loans generally require payment in full upon the sale or refinance of the property. Construction and development loans generally carry a higher degree of risk because repayment depends on the ultimate completion of the project and usually on the subsequent sale or refinance of the property, unless the project is user-owned which would then convert to a conventional term loan. Specific material risks may include (i) unforeseen delays in the building of the project, (ii) cost overruns or inadequate contingency reserves, (iii) poor management of construction process, (iv) inferior or improper construction techniques, (v) changes in the economic environment during the construction period, (vi) a downturn in the real estate market, (vii) rising interest rates which may impact the sale of the property and its price, and (viii) failure to sell or stabilize completed projects in a timely manner. The Company attempts to reduce risks associated with construction and land development loans by obtaining personal guarantees and by keeping the maximum loan-to-value (“LTV”) ratio at or below 75%, depending on the project type. Many of the construction and land development loans include interest reserves built into the loan commitment. For owner-occupied commercial construction loans, periodic cash payments for interest are required from the borrower’s cash flow.
Real estate loans are secured by single family residential properties (one to four units), multifamily residential properties (five or more units), owner-occupied commercial real estate (“CRE”), and non-owner-occupied CRE. Real estate loans are subject to the same general risks as other loans and may also be impacted by changing demographics, collateral maintenance, and product supply and demand. Rising interest rates, as well as other factors arising after a loan has been made, could negatively affect not only property values but also a borrower’s cash flow, creditworthiness, and ability to repay the loan. Increasing interest rates can impact real estate values as rising rates generally cause a similar movement in capitalization rates which can cause real estate collateral values to decline. The Company usually obtains a security interest in real estate, in addition to any other available collateral, in order to increase the likelihood of the ultimate repayment of the loan. The Company does not underwrite closed-end term consumer loans secured by a borrower’s residence. Junior liens may be considered in connection with a consumer home equity line of credit (“HELOC”), or as additional collateral support for SBA and other business loans.
The Company’s commercial and industrial (“C&I”) loans are primarily made to businesses located in California. These loans are made to finance operations, to provide working capital, or for specific purposes such as to finance the purchase of assets or equipment or to finance accounts receivable and inventory. The Company’s C&I loans may be secured (other than by real estate) or unsecured. They may take the form of single payment, installment, or lines of credit. These are generally based on the financial strength and integrity of the borrower and guarantor(s) and generally (with some exceptions) are collateralized by short-term assets such as accounts receivable, inventory, equipment, or a borrower’s other business assets. Commercial term loans are typically made to provide working capital to finance the acquisition of fixed assets, refinance short-term debt originally used to purchase fixed assets or, in rare cases, to finance the purchase of businesses.
Consumer loans consist of loans to individuals for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. Also included in our consumer loan portfolio were consumer solar panel loans that were acquired as part of the merger with CALB. At December 31, 2025, the consumer solar panel loans were transferred to loans held for sale at fair value. They consist of residential solar panel loans to consumers with an average individual term ranging from 10 to 20 years and are primarily collateralized by the related equipment. These loans were originated and serviced by unaffiliated third parties. Consumer loans are underwritten based on the borrower’s income, current debt level, past credit history, and the availability and value of collateral. Consumer rates are both fixed and variable, with negotiable terms. The Company’s installment loans typically amortize over periods up to 5 years. Although the Company typically requires monthly payments of interest and a portion of the principal on its loan products, the Company will offer consumer loans with a single
maturity date when a specific source of repayment is available. Consumer loans are generally considered to have greater risk than first or second mortgages on real estate because they may be unsecured, or, if they are secured, the value of the collateral may be difficult to assess and more likely to decrease in value than real estate.

The Company’s ACL model incorporates assumptions for prepayment/curtailment rates, PD, and LGD to project each loan’s cash flow throughout its entire life cycle. An initial reserve amount is determined based on the difference between the amortized cost basis of each loan and the present value of all future cash flows. The initial reserve amount is then aggregated at the loan segment level to derive the segment level quantitative loss rates. For prepayment and curtailment rates, the Company utilized Abrigo’s benchmark since the adoption on January 1, 2023 through the second quarter of 2023 and switched to the Company’s own historical prepayment and curtailment experience beginning in the third quarter of 2023. Quarterly PD is forecasted using a regression model that incorporates certain economic variables as inputs. The LGD is derived from PD using the Frye-Jacobs index provided by the Company’s third-party model provider. Reasonable and supportable forecasts are used to predict current and future economic conditions. Management elected to use a four quarter reasonable and supportable forecast period followed by an eight quarter straight-line reversion period. After twelve quarters of forecast plus reversion period, the PD is assumed to remain unchanged for the remaining life of the loan.
The Company uses numerous key macroeconomic variables within the economic forecast scenarios from Moody’s Analytics. These economic forecast scenarios are based on past events, current conditions, and the likelihood of future events occurring. These scenarios include a baseline forecast which represents their best estimate of future economic activity. Moody’s Analytics also provides nine alternative scenarios, including five direct variations of the baseline scenario and four more extensive departures from their baseline forecast, including a slower growth, a stagflation, a next cycle recession and a low oil price scenario. Management recognizes the non-linearity of credit losses relative to economic performance and believes the use of multiple probability-weighted economic scenarios is appropriate in estimating credit losses over the forecast period. This approach is based on certain assumptions. The first assumption is that no single forecast of the economy, however detailed or complex, is completely accurate over a reasonable forecast timeframe and is subject to revisions over time. By considering multiple scenarios, management believes some of the uncertainty associated with a single scenario approach can be mitigated. Management periodically evaluates economic scenarios, determines whether to utilize multiple probability-weighted scenarios in the Company’s ACL model, and, if multiple scenarios are utilized, evaluates and determines the weighting for each scenario used in the Company’s ACL model, and thus the scenarios and weightings of each scenario may change in future periods. Economic scenarios as well as assumptions within those scenarios can vary based on changes in current and expected economic conditions.
The ACL process involves subjective and complex judgments and is reflective of significant uncertainties that could potentially result in materially different results under different assumptions and conditions. In addition to the aforementioned quantitative model, management periodically considers the need for qualitative adjustments to the ACL. Such qualitative adjustments may be related to and include, but are not limited to factors such as: differences in segment-specific risk characteristics, periods wherein current conditions and reasonable and supportable forecasts of economic conditions differ from the conditions that existed at the time of the estimated loss calculation, model limitations and management’s overall assessment of the adequacy of the ACL. Qualitative risk factors are periodically evaluated by management.
Generally, the measurement of the ACL is performed by collectively evaluating loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated individually for credit loss and are not included in the evaluation process discussed above. Expected credit losses on all individually evaluated loans are measured, primarily through the evaluation of estimated cash flows
expected to be collected, or collateral values measured by reference to an observable market value, if one exists, or the fair value of the collateral for a collateral-dependent loan. The Company selects the measurement method on a loan-by-loan basis except that collateral-dependent loans for which foreclosure is probable are measured at the net realizable value of the collateral. Cash receipts on individually evaluated loans for which the accrual of interest has been discontinued are applied first to principal and then to interest income. Prior to the adoption of ASC Topic 326, individually evaluated loans were referred to as impaired loans. Amounts are charged-off when available information confirms that specific loans or portions thereof, are uncollectible. This methodology for determining charge-offs is consistently applied to each loan segment.
Loans with terms that have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are evaluated for an ACL utilizing one of the methodologies above.
Allowance for Credit Losses — Acquired Loans
In accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), loans purchased or acquired in connection with a business combination are recorded at their acquisition date fair value. Any resulting discount or premium recorded on acquired loans is accreted or amortized into interest income over the remaining life of the loans using the interest method. The ACL related to the acquired loan portfolio is not carried over from the acquiree. Acquired loans are classified into two categories based on the credit risk characteristics of the underlying borrowers as either PCD loans, or non-PCD loans.
PCD loans are those loans or pool of loans that have experienced more-than-insignificant credit deterioration since the origination date. For PCD loans, an initial allowance is established on the acquisition date using the same methodology as other loans held for investment and combined with the fair value of the loan to arrive at acquisition date amortized cost. Accordingly, no provision for credit losses is recognized on PCD loans at the acquisition date. Subsequent to the acquisition date, changes to the allowance are recognized in the provision for credit losses. The Company measures ACL for PCD loans using a loss-rate method in conjunction with the PD/LGD framework. For each segment, the company applied Abrigo's benchmark PD/LGD to derive the loss rate.
Non-PCD loans are those loans for which there was no evidence of a more-than-insignificant credit deterioration at their acquisition date. Acquired non‑PCD loans, together with originated loans held for investment that share similar risk characteristics, are pooled into segments together. Upon the purchase or acquisition of non-PCD loans, the Company measures and records an ACL based on the Company’s methodology for determining the ACL for its originated loans held for investment. The ACL for non-PCD loans is recorded through a charge to the provision for credit losses in the period in which the loans were purchased or acquired.
Allowance for Credit Losses — Off-Balance Sheet Credit Exposures
The Company also maintains a separate allowance for credit losses for off-balance sheet commitments, which totaled $2.1 million and $3.1 million at December 31, 2025 and 2024, respectively. Management estimates anticipated losses using expected loss factors consistent with those used for the ACL methodology for loans described above, and utilization assumptions based on historical experience. Provision for credit losses for off-balance sheet commitments is included in provision for credit losses in the consolidated statements of income and added to the allowance for off-balance sheet commitments, which is included in accrued interest payable and other liabilities in the consolidated balance sheets.
Loan Modifications, Refinancings and Restructurings
Prior to the adoption of ASU 2022-02, a loan was classified as a TDR when the Company granted a concession to a borrower experiencing financial difficulties that it otherwise would not consider under
its normal lending policies under ASC Subtopic 310-40, Troubled Debt Restructurings by Creditors. Upon the adoption of ASU 2022-02, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. The Company considers some of the indicators that a borrower is experiencing financial difficulty to be: currently in payment default on any of their debt, declaring bankruptcy, having issues continuing as a going concern, insufficient cash flow to service all debt service requirements, inability to obtain funds from other sources at a market rate for similar debt to non-troubled borrowers, and currently classified as substandard loans that are categorized as having well-defined weaknesses.
Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. If the refinancing or restructuring is deemed to be a new loan, unamortized net fees or costs from the original loan and any prepayment penalties are recognized in interest income when the new loan is granted. In addition, a new effective interest rate will be determined. If the refinancing or restructuring is deemed to be a modification, the investment in the new loan is comprised of the remaining net investment in the original loan, any additional funds advanced to the borrower, any fees received, and direct loan origination costs associated with the refinancing or restructuring. The effective interest rate of the loan is recalculated based upon the amortized cost basis of the new loan and its revised contractual cash flows.
A modification may vary by program and by borrower-specific characteristics, that may include interest rate reductions, principal forgiveness, term extensions, payment delays and any combination of the above. It is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company applies the same credit loss methodology it uses for similar loans that were not modified.
GAAP requires that certain types of modifications be reported, which consist of (1) principal forgiveness; (2) interest rate reduction; (3) other-than-insignificant payment delay; (4) term extension; and any combination of the above.
Other Real Estate Owned (“OREO”)
Real estate acquired by foreclosure or deed in lieu of foreclosure is initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis by a charge to the allowance for credit losses, if necessary. Fair value is generally based on independent appraisals, which are frequently adjusted by management to reflect current conditions and estimated selling costs. Subsequent to foreclosure, OREO is carried at the lower of the Company’s carrying value of the property or its fair value, less estimated carrying costs and costs of disposition. Reductions in fair value subsequent to initial measurement result in a valuation allowance recognized as expense within noninterest income in the accompanying consolidated statements of income. Operating expenses of such properties, net of related income, and gains and losses on their disposition are included in other real estate owned expenses in the consolidated statements of income.
Bank Owned Life Insurance
The Company has purchased, or acquired through business combinations, life insurance policies on key executives. Bank owned life insurance is recorded at the amount that can be realized under insurance contracts at the date of the consolidated balance sheets, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Transfers of Financial Assets
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity.
Loan Sales and Servicing of Financial Assets
The Company originates SBA loans that may be sold in the secondary market. Servicing rights are recognized separately when they are acquired through sale of loans. Risks inherent in servicing rights include prepayment and interest rate risk. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sale of loans. Fair value is based on a valuation model that calculates the present value of estimated future cash flows from the servicing assets. The valuation model uses assumptions that market participants would use in estimating cash flows from servicing assets, such as the cost to service, discount rates and prepayment speeds (Level 3 fair value inputs). The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.
Servicing fee income, which is reported in the consolidated statements of income with servicing and related income on loans, net, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of servicing rights and changes in the valuation allowance are netted against loan servicing income.
Premises and Equipment
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which ranges from three to seven years for furniture and equipment and forty-five to fifty-five years for premises. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the remaining lease term, whichever is shorter. Expenditures for betterments or major repairs are capitalized and those for ordinary repairs and maintenance are charged to operations as incurred.
Right-of-Use (”ROU”) Assets and Lease Liabilities
The Company has operating leases for its branches and administrative facilities. The Company determines if an arrangement contains a lease at contract inception and recognizes a ROU asset and operating lease liability based on the present value of lease payments over the lease term. While operating leases may include options to extend the term, the Company does not take into account the options in calculating the ROU asset and lease liability unless it is reasonably certain such options will be exercised. The present value of lease payments is determined based on the discount rate implicit in the lease or the Company’s estimated incremental borrowing rate if the rate is not implicit in the lease. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense is recognized on a straight-line basis over the lease term. The Company accounts for lease agreements with lease and non-lease components as a single lease component.
Employee Benefit Plans
The Company has a retirement savings 401(k) plan in which substantially all employees may participate. Pursuant to the Company’s safe harbor election, matching contributions up to 4.0% of salary are made to the plan. Total contribution expense for the plan was $1.5 million in 2025 and $950 thousand in 2024 and is included in salaries and employee benefits expense in the consolidated statements of income. Deferred compensation and supplemental retirement plan expense is recognized over the years of service.
Compensated Absences
Employees of the Company are generally entitled to paid vacation, paid sick days and personal days off, depending on job classification, length of service, and other factors. The Company’s policy is that fully vested vacation is accrued at each quarter end. The accrued liability for vacation pay, which is included in accrued interest and other liabilities in the consolidated balance sheets was $2.2 million and $2.0 million at December 31, 2025 and 2024, respectively.
Advertising Costs
The Company expenses the costs of advertising in the period incurred. Advertising costs were $969 thousand and $597 thousand for the years ended December 31, 2025 and 2024, respectively and are included in other expenses in the consolidated statements of income.
Income Taxes
Deferred income taxes are computed using the asset and liability method, which recognizes a liability or asset representing the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. A valuation allowance is established to reduce the deferred tax asset to the level at which it is “more likely than not” that the tax asset or benefits will be realized. Realization of tax benefits of deductible temporary differences and operating loss carryforwards depend on having sufficient taxable income of an appropriate character within the carryforward periods.
The Company has adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return and provides that the tax effects from an uncertain tax position can be recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Management believes that all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the consolidated financial statements. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense.
Investments that generate investment tax credits are accounted for under the flow-through method. Under the flow-through method, the allowable investment credit is recognized as a reduction in income tax expense over the life of the acquired investment.
We reclassify stranded tax effects from accumulated other comprehensive income to retained earnings in periods in which there is a change in corporate income tax rates.
Comprehensive Income
Changes in unrealized gains and losses, net of tax on available-for-sale securities is the only component of other comprehensive income (loss) for the Company. There were no amounts reclassified out of other comprehensive income (loss) relating to realized losses on sales of securities for the years ended December 31, 2025 and 2024, respectively.
Financial Instruments
In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded, or related fees are incurred or received.
Earnings Per Share (“EPS”)
Earnings per share presents the net income or loss per common share, after consideration of the preferred shareholders interest in the net income or loss. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution, using the treasury stock method, that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.
Business Combinations
Business combinations are accounted for using the acquisition method of accounting under ASC Topic 805 - Business Combinations. Under the acquisition method, the Company measures the identifiable assets acquired, including identifiable intangible assets, and liabilities assumed in a business combination at fair value on acquisition date. Goodwill is generally determined as the excess of the fair value of the consideration transferred, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. The Company accounts for merger-related costs, which may include advisory, legal, accounting, valuation, other professional fees, data conversion fees, contract termination charges and branch consolidation costs, as expenses in the periods in which the costs are incurred and the services are received.
Goodwill and Other Intangible Assets
Goodwill and other intangible assets acquired in a purchase business combination and determined to have indefinite useful lives are not amortized but tested for impairment no less than annually or when circumstances arise indicating impairment may have occurred. Goodwill is the only intangible asset with an indefinite life recorded in the Company’s consolidated balance sheets. The determination of whether impairment has occurred, includes the considerations of a number of factors including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows, and current market data. Any impairment identified as part of this testing is recognized through a charge to net income. The Company has selected to perform its annual impairment test in the fourth quarter of each fiscal year. There was no impairment recognized related to goodwill for the years ended December 31, 2025 and 2024.
The Company’s trade name intangible is being amortized on a straight-line basis over a period of two years, reflecting the manner in which the related benefit is expected to be realized. Core deposit intangible (”CDI”) is a measure of the value of depositor relationships resulting from whole bank acquisitions. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. CDI is amortized on a straight-line method or an accelerated method over an estimated useful life of ten years.
Loss Contingencies
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and the amount or range of loss can be reasonably estimated. During the year ended December 31, 2025, the Company recorded litigation settlements of $2.0 million related to employment litigation matters, which is reflected as litigation
settlement, net in the accompanying consolidated statements of income. The amount reflects a $5.4 million gross settlement recorded in the accrued interest and other liabilities on the Company’s consolidated balance sheet at December 31, 2025 were presented net of $3.4 million of insurance reimbursements. Both the settlement payments and insurance reimbursements paid and collected in February 2026. Management does not believe there are any other such matters that will have a material effect on the consolidated financial statements at December 31, 2025.
Revenue Recognition – Noninterest Income
The core principle of Topic 606, Revenue from Contracts with Customers, is that an entity recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. Topic 606 requires entities to exercise more judgment when considering the terms of a contract than under Topic 605, Revenue Recognition. Topic 606 applies to all contracts with customers to provide goods or services in the ordinary course of business, except for contracts that are specifically excluded from its scope. Topic 606 does not apply to revenue associated with interest income on financial instruments, including loans and securities. Additionally, certain noninterest income streams, such as income from BOLI and gain and losses on sales of investment securities and loans, are out of the scope of Topic 606.
Topic 606 is applicable to noninterest revenue streams such as (i) service charges and fees on deposit accounts, including account maintenance, transaction-based and overdraft services, and (ii) interchange fees, which represent fees earned when a debit card issued by the Company is used. These revenue streams are largely transaction-based and revenue is recognized upon completion of a transaction.
All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized in noninterest income in the consolidated statements of income.
Gains/losses on the sale of OREO are included in non-interest income/expense in the consolidated statements of income and are generally recognized when the performance obligation is complete. This is typically at delivery of control over the property to the buyer at the time of each real estate closing.
Stock-Based Compensation
Compensation cost is recognized for stock options, time-based restricted stock unit awards and performance-based restricted stock unit awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for time-based and performance-based restricted stock unit awards. Performance-based restricted stock unit awards contain vesting conditions which are based on predetermined performance targets that impact the number of shares that ultimately vest based on the level of targets achievement. These costs are recognized over the period in which the awards are expected to vest, on a straight-line basis. The costs for performance-based restricted unit awards are recognized over the period in which the awards are expected to vest as the Company believes the predetermined performance targets are probable to be fulfilled. For performance-based awards that do not vest because the predetermined performance targets are not fulfilled, no compensation cost is recognized, and any previously recognized compensation is reversed. The Company has elected to account for forfeitures of stock-based awards as they occur. Excess tax benefits and tax deficiencies relating to stock-based compensation are recorded as income tax expense or benefit in the consolidated statements of income when incurred. The Company generally issues new shares upon the exercise of stock options or vesting of restricted stock units.
Fair Value Measurement
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date. The Company measures certain assets and liabilities on a fair value basis, in accordance with ASC Topic 820, “Fair Value Measurement.” Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, ASC Topic 825, “Financial Instruments” requires disclosure of the fair value of financial assets and financial liabilities, including both those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis and a non-recurring basis. ASC Topic 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:
Level 1:     Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2:     Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3:    Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Recently Adopted Accounting Guidance
On January 1, 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a retrospective basis. The standard enhances the Company’s rate reconciliation table by requiring additional categories of information about federal, state and foreign income taxes and expanded detail for reconciling items that exceed a quantitative threshold. ASU 2023-09 also requires disclosure of income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods, including further disaggregation by jurisdiction when quantitative thresholds are met. ASU 2023-09 became effective for us in 2025 (see Note 11 - Income Taxes). The adoption of this standard did not have a material impact to the consolidated financial statements.
ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures: In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” to require, among other things, that a public entity that has a single reportable segment provide enhanced disclosures about significant segment expenses. Significant expense categories are derived from expenses that are 1) regularly reported to an entity’s chief operating decision-maker (“CODM”), and 2) included in a segment’s reported measure of profit or loss. The disclosures should include an amount for "other segment items," reflecting the difference between 1) segment revenue less significant segment expenses, and 2) the reportable segment’s profit or loss measures. It requires that a public entity disclose the title and position of the CODM and how the CODM uses the reported measure of profit or loss to assess segment performance and to allocate resources. Further it clarifies that entities with a single reportable segment must disclose both new and existing segment reporting requirements. The adoption of this standard did not have a material impact to the consolidated financial statements.
Recent Accounting Guidance Not Yet Effective
In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-06, Disclosure Improvements–Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in this update modify the disclosure or presentation requirements for a variety of topics in the codification. Certain amendments represent clarifications to or technical corrections of the current requirements. The following is a summary of the topics included in the update and which pertain to the Company: 1. Statement of cash flows (Topic 230): Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative
instruments and their related gains and losses are presented in the statement of cash flows; 2. Accounting changes and error corrections (Topic 250): Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements; 3. Earnings per share (Topic 260): Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods, and amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings per share computation; 4. Commitments (Topic 440): Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized; and 5. Debt (Topic 470): Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. For public business entities, the amendments in ASU 2023-06 are effective on the date which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation and S-X or Regulation S-K, the pending content of the related amendment will be removed from the codification and will not become effective for any entity. Early adoption is not permitted and the amendments are required to be applied on a prospective basis. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
ASU No. 2024-03, Income Statement– Reporting Comprehensive Income-Expense Disaggregation Disclosures. In November 2024, the FASB issued ASU 2024-03 which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income– Expense Disaggregation Disclosures– Clarifying the Effective Date, which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU 2024-03 is permitted. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810)-Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. In May 2025, the FASB issued ASU 2025-03, which revises the guidance in ASC 805 on identifying the accounting acquirer in a business combination in which the legal acquiree is a variable interest entity (“VIE”). The ASU is intended to improve comparability between business combinations that involve VIEs and those that do not. ASU 2025-03 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The amendments in ASU 2025-03 must be applied prospectively to any business combination that occurs after the initial adoption date. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer. In May 2025, the FASB issued ASU 2025-04 to reduce diversity in practice and improve the usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction with selling goods or services. The ASU is effective for fiscal years beginning after December 15, 2026 with updates to be applied on a retrospective or modified retrospective basis. Early adoption is permitted. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.

ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. In November 2025, the FASB issued ASU 2025-08 which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under this standard, entities must account for acquired loans
(excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses (often referred to as the gross-up approach). These amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”). The standard is effective for fiscal years beginning after December 15, 2026, including interim reporting periods within those fiscal years. Early adoption is permitted, and the standard is to be applied prospectively. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.

ASU 2025-11, Interim Reporting (Topic 270) Narrow-Scope Improvements. In December 2025, the FASB issued ASU 2025-08 which is intended to improve the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. The amendments add to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-08 is not intended to change the fundamental nature of interim reporting or expand or reduce current interim disclosure requirements, rather, the objective of the amendments is to provide clarity on the current interim reporting requirements. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
v3.25.4
BUSINESS COMBINATIONS
12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
BUSINESS COMBINATIONS BUSINESS COMBINATIONS
California BanCorp Merger
On July 31, 2024 (the “Merger Date”), the Company completed its merger with California BanCorp (“CALB”) on the terms set forth in the Agreement and Plan of Merger and Reorganization, dated January 30, 2024, by and between the Company and CALB. Immediately following the merger of CALB with and into the Company, California Bank of Commerce, a California state-chartered bank and wholly-owned subsidiary of CALB, merged with and into the Bank. Effective with these mergers, the corporate names of Southern California Bancorp and Bank of Southern California, N.A. were changed to California BanCorp and California Bank of Commerce, N.A., respectively. The merger expanded the Company’s footprint into Northern California and provided an opportunity for building scale and increasing market share through complementary business models with a strong deposit base. The combined company retained the banking offices of both banks, adding California Bank of Commerce’s one full-service bank branch and its four loan production offices in Northern California to the Bank’s 13 full-service bank branches located throughout the Southern California region, for a total of 14 branch offices.
The Merger was an all-stock transaction valued at approximately $216.6 million based on a closing price of the Company’s common stock of $15.79 on July 31, 2024. Under the terms of the Agreement and Plan of Merger and Reorganization, each outstanding share of CALB common stock was exchanged for the right to receive 1.590 shares of the Company’s common stock, resulting in the net issuance of approximately 13,497,091 shares, with cash (without interest) paid in lieu of fractional shares. An additional 82,364 net shares were issued to CALB’s non-continuing directors, officers and employees where the Company had granted and fully accelerated replacement restricted stock units totaling 123,123 shares with a fair value of $1.9 million, of which $825 thousand related to pre-combination vesting and was included in purchase consideration and $1.1 million related to post-combination vesting and was recognized in expense of the combined company at merger closing. The Company also granted
replacement awards for 295,512 unvested restricted stock units, with a fair value of $4.7 million, to CALB’s continuing directors, officers and employees. Of this amount, $1.3 million related to pre-combination vesting and was included in purchase consideration and $3.4 million related to post-combination vesting and will be recognized in expense of the combined company over the remaining vesting period. In addition, the Company settled for cash all in-the-money CALB stock options immediately prior to the merger in the amount of $1.7 million.
The Company accounted for the Merger using the acquisition method of accounting in accordance with ASC 805, Business Combinations and accordingly, the acquired assets and assumed liabilities of CALB were recorded at their respective fair values on the date of completion of the merger with certain exceptions. In many cases, the determination of fair value required management to make estimates about discount rates, expected future cash flows, market conditions and other future events that are highly subjective in nature and subject to change. While the Company believes that the information available on the Merger Date provided a reasonable basis for estimating fair value, additional or new information during the measurement period pertaining to facts and circumstances that existed as of the Merger Date that, if known, may materially impact the initial valuations would result in changes to the preliminary estimated fair value amounts. The measurement period ended on July 31, 2025 and the Company concluded that all necessary information about the facts and circumstances that existed as of the Merger Date have been obtained. Adjustments recorded during this period are recognized in the current reporting period. The following table summarizes the final adjustments to goodwill subsequent to July 31, 2024.
(dollars in thousands)Goodwill
Balance at July 31, 2024
$74,712 
Adjustments to goodwill acquired in connection with the Merger(1,581)
Balance at September 30, 2025
$73,131 
The Company recorded adjustments related to the Merger resulting in a decrease to goodwill of $1.6 million within the one-year measurement period subsequent to the Merger Date of July 31, 2024. These net of tax adjustments included the fair value of acquired trade name, a true-up of the acquired low-income housing tax credit investments, recoveries on acquired PCD loans previously charged-off prior to the Merger, and deferred tax adjustments related to the finalization of CALB’s final tax return and CALB state net operating losses that cannot be utilized post-merger.
The following table represents the allocation of the purchase consideration to the preliminary fair value of assets acquired and liabilities assumed of CALB, as adjusted, as of July 31, 2024:

(dollars in thousands)Fair
Value
Assets acquired:
Cash and cash equivalents$336,298 
Debt securities, available-for-sale42,560 
Loans held for investment1,359,040 
Allowance for credit losses - PCD loans(10,022)
Restricted stock
6,328 
Other equity securities6,596 
Premises and equipment
1,670 
Operating lease right-of-use asset7,743 
Prepaid expenses876 
(dollars in thousands)Fair
Value
Deferred taxes, net30,149 
Bank owned life insurance26,338 
Trade name
300 
Core deposit intangible22,653 
Other assets35,040 
Total assets acquired1,865,569 
Liabilities assumed:
Deposits1,642,938 
Borrowings50,832 
Operating lease liabilities9,033 
Other liabilities19,259 
Total liabilities assumed1,722,062 
Net assets acquired$143,507 
Purchase consideration:
Outstanding shares of CALB, July 31, 20248,488,829 
Restricted stock units vested fully at merger closing(1)
77,436 
Shares of CALB common stock exchanged8,566,265 
Exchange ratio1.590 
Shares of BCAL common stock issued to CALB shareholders at closing, before fractional shares13,620,361 
Less: fractional shares(147)
Shares of BCAL common stock issued to CALB shareholders at closing
13,620,214 
BCAL closing price per share, July 31, 2024$15.79 
Fair value of common shares issued and exchanged$215,063 
Less: fair value of accelerated restricted stock units attributable to post-combination vesting(2)(3)
(1,119)
Fair value of common shares issued and exchanged attributable to purchase consideration213,944 
Cash paid for outstanding stock options(4)
1,431 
Cash paid for fractional shares
Restricted stock consideration(5)
1,261 
Total purchase consideration216,638 
Goodwill recognized$73,131 
(1)Represents 5,596 unvested restricted stock units of non-continuing CALB directors that were automatically fully vested and converted under the merger agreement and 71,840 of unvested restricted shares (replacement awards) for non-continuing executives and employees that were accelerated and fully vested. The portion of the fair value of these awards attributable to pre-combination vesting is included as a component of purchase consideration. The portion of the fair value of these awards attributable to post-combination vesting (See #2 below) was reflected in expense of the combined company upon merger closing.
(2)Represents the fair value of the 77,436 CALB restricted stock units (replacement awards) that were accelerated for non-continuing directors, executives and employees that was attributable to post-combination vesting. Upon acceleration, 51,801 net CALB shares were then converted into the right to receive the Company’s common
stock after 25,635 of CALB shares were surrendered by certain executives and employees to pay for taxes. The portion of the fair value of these awards attributable to post-combination vesting was recognized as an expense of the combined company upon merger closing.
(3)Included in this amount is $472 thousand related to 31,355 restricted stock units that fully vested due to change in control agreements (double trigger) held by four executives that are no longer employed by the Company upon closing of the Merger.
(4)Represents the payment of (a) $1.3 million for 283,641 vested stock options at a weighted average exercise price of $18.22 and (b) $82 thousand for 92,685 unvested stock options at a weighted average price of $19.03 attributable to pre-combination vesting based on the $22.98 Option Cashout Price. An additional $284 thousand was paid for the portion of unvested stock options attributable to post-combination vesting and was recognized as an expense of the combined company upon merger closing. There were 65,785 unvested stock options at a weighted average price of $23.81 that were out-of-the-money at July 31, 2024 and excluded from stock option consideration as they were cancelled under the terms of the merger agreement.
(5)Represents the fair value of 185,878 unvested restricted stock units (replacement awards) for continuing executives and employees attributable to pre-combination vesting. A forfeiture rate of 3% was applied in determining share-based awards expected to vest.

Goodwill represents the excess of the purchase consideration over the fair value of the net assets acquired and was primarily attributable to the expected synergies and the expansions of economies of scale and new territory from combining the operations of the Company and CALB. Goodwill is not deductible for U.S. income tax purposes and is not amortized. Rather, goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, by comparing its carrying value to the reporting unit’s fair value.
The following methods and assumptions were used to estimate the fair value of significant financial instruments:
Cash and cash equivalents. The carrying amounts of cash and cash equivalents approximates fair value due to the short-term nature and liquidity of these instruments.
Debt securities available for sale. The fair values of debt securities was determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.
Loans held for investment. The Company utilized an independent third-party to assist in valuing loans held for investment. The fair value of the acquired loan portfolio was determined by segregating the portfolio into three groups: PCD loans, non-accruing PCD loans and all other loans (“non-PCD loans”). These three categories were further segmented by loan type. For non-PCD loans, the fair value for each individual loan segment consisted of the principal balance adjusted for both an interest component and credit component, which was calculated on a pool basis using a discounted cash flow approach. The discount rates utilized for this approach were based on a weighted average cost of capital, considering the cost of equity and cost of debt and other factors. Expected loan cash flows incorporated default, loss, and prepayment rates based on industry standards.
PCD loans are defined as loans that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. The initial amortized cost basis for PCD loans represents the fair value of the loans plus an allowance for credit losses at the date of acquisition. The fair value for PCD loans incorporated market-based loss rates used to estimate expected life of loan credit losses. The noncredit discount resulting from the acquired PCD loans was allocated to each individual asset. At the acquisition date, the initial allowance for credit losses was determined on a collective basis and was allocated to the individual PCD loans. The initial allowance for credit losses for PCD loans includes expected recoveries of amounts previously charged off
and expected to be charged off by the Company. The non-credit discount, after the adjustment for the allowance for credit losses, is accreted to interest income using the interest method based on the effective interest rate at acquisition date.
The following table presents the composition of purchased credit-deteriorated (“PCD”) loans as of the acquisition date:
(dollars in thousands)Amount
Unpaid principal balance$111,720 
Allowance for credit losses - PCD loans(11,216)
Non-credit discount amount(5,107)
Loans previously charged-off by CALB(10,171)
PCD loans acquired
$85,226 
Bank owned life insurance. The carrying amount of bank owned life insurance approximates fair value given the liquidity of these instruments.
Deferred tax assets, net. The fair value of acquired deferred tax assets and liabilities represents the estimated amount of tax benefits for acquired assets and assumed liabilities that the Company expects to be recognized on its tax returns. The Company utilized an effective tax rate of 29.56% in determining the fair value on deferred taxes, net.
Trade name. The fair value of trade name was estimated based on the relief from royalty method, which models the cash flows from brand intangibles assuming royalties were received under a licensing arrangement. This discounted cash flow analysis, uses inputs such as forecasted future revenues attributable to the brand, assumed royalty rates and a risk-adjusted discount rate that approximates the estimated cost of capital. The unobservable inputs used in this valuation included projected revenue growth rates, the royalty rate, and the discount rate.
Core deposit intangible. The fair value of the core deposit intangible was determined by evaluating the underlying characteristics of the deposit relationships, including estimated customer attrition, projected deposit interest rates, net maintenance cost of the deposit base, and costs of alternative funding. The value of the after-tax savings on cost of funds is the present value over an estimated fifty-year horizon, using the discount rate applicable to the asset. The core deposit intangible will be amortized over the expected account retention period, which was originally estimated at approximately 10 years or 120 months. The core deposit intangible will be evaluated periodically to determine the reasonableness of the projected amortization period by comparing actual deposit retention to projected retention.
Operating lease right-of-use asset and Lease liability. The fair value of the initial operating lease right-of-use asset and lease liability was based on the present value of lease payments over the lease term of the acquired leases based on the Company’s estimated incremental borrowing rate. The initial fair value of the operating lease right-of-use asset was reduced by the fair value of unfavorable lease terms based on an analysis of the acquire lease terms and current market terms for similar premises.
Deposits. The fair values of demand and savings deposits represent the amount payable on demand at acquisition date. The fair value of time deposits was determined using a discounted cash flow approach, which involved determining the present value of the required contractual payments over the remaining life of the time deposits using market-based interest rates.
Borrowings. The fair value of subordinated debt was determined using a discounted cash flow approach, which involved determining the present value of required contractual payments over the estimated life of the notes, factoring in expected redemption dates, discounted at a rate that incorporated market-based interest rates, inclusive of a credit spread and liquidity premium. The discount will be amortized over the expected life of the borrowings.
Total merger-related costs, which are reflected as merger and related costs in the accompanying consolidated statements of income, included the following total amounts for the year ended December 31, 2024:
(dollars in thousands)2024
Financial advisory fees$2,576 
Legal, accounting, valuation and other professional costs874 
Information technology5,218 
Change in control costs/severance6,238 
Insurance919 
Other463 
$16,288 
The following table presents the measurement period adjustments that were identified and recorded after the measurement period ended.

Initially MeasuredMeasurement
As Adjusted
(dollars in thousands)July 31, 2024Period AdjustmentsJuly 31, 2024
Assets:
Cash and due from banks$336,298 $— $336,298 
Debt securities42,560 — 42,560 
Loans1,347,824 1,194 1,349,018 
Investments in restricted stocks6,328 — 6,328 
Premises and Equipment, net1,670 — 1,670 
Deferred Taxes, net30,221 (72)30,149 
Goodwill74,712 (1,581)73,131 
Trade name
— 300 300 
Core Deposit Intangible22,653 — 22,653 
Other Assets76,434 159 76,593 
Total assets$1,938,700 $— $1,938,700 
Liabilities:
Deposits$1,642,938 $— $1,642,938 
Borrowings50,832 — 50,832 
Other Liabilities28,292 — 28,292 
Total liabilities
$1,722,062 $— $1,722,062 
v3.25.4
INVESTMENT SECURITIES
12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
Debt Securities

Debt securities have been classified as either held-to-maturity or available-for-sale in the consolidated balance sheets according to management’s intent. The amortized cost of held-to-maturity debt securities and their approximate fair values at December 31, 2025 and 2024 were as follows:
(dollars in thousands)Amortized Cost
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Estimated Fair
Value
December 31, 2025
Taxable municipals
$555 $— $(63)$492 
Tax exempt bank-qualified municipals52,381 — (3,565)48,816 
$52,936 $— $(3,628)$49,308 
December 31, 2024
Taxable municipals
$553 $— $(90)$463 
Tax exempt bank-qualified municipals52,727 — (5,367)47,360 
$53,280 $— $(5,457)$47,823 

The amortized cost of available-for-sale debt securities and their approximate fair values at December 31, 2025 and 2024 were as follows:
(dollars in thousands)Amortized CostGross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated Fair
Value
December 31, 2025
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities$161,376 $2,041 $(2,401)$161,016 
SBA securities 3,862 (54)3,816 
U.S. Treasury2,654 — (182)2,472 
U.S. Agency2,000 — (207)1,793 
Collateralized mortgage obligations66,293 457 (1,895)64,855 
Taxable municipals
1,006 — (68)938 
$237,191 $2,506 $(4,807)$234,890 
December 31, 2024
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities$87,930 $109 $(4,765)$83,274 
SBA securities5,423 (97)5,333 
U.S. Treasury12,624 17 (315)12,326 
U.S. Agency2,000 — (330)1,670 
Collateralized mortgage obligations41,615 11 (3,963)37,663 
Taxable municipals1,007 — (98)909 
Tax exempt bank-qualified municipals830 — (4)826 
$151,429 $144 $(9,572)$142,001 

During the years ended December 31, 2025 and 2024, there were no transfers between
held-to-maturity and available-for-sale debt securities.
At December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of our shareholders’ equity.
Accrued interest receivable on held-to-maturity and available-for-sale debt securities totaled $1.1 million and $879 thousand at December 31, 2025 and 2024, respectively, and is included within accrued interest receivable and other assets in the consolidated balance sheets. Accrued interest receivable is excluded from the ACL.
At December 31, 2025, available-for-sale debt securities with an amortized cost of $27.6 million were pledged to the Federal Reserve Bank (“Federal Reserve”) as collateral for a secured public deposits and for other purposes as required by law or contract provisions, in addition to held-to-maturity debt securities with an amortized cost of $52.9 million were pledged as collateral for a secured line of credit with the Federal Reserve. See Note 10 – Borrowing Arrangements for additional information regarding the FHLB and Federal Reserve secured lines of credit. The Company also pledged $15.0 million available-for-sale debt securities to another financial institution to support the collateralization requirement against certain customers’ standby letters of credit.
At December 31, 2024, available-for-sale debt securities with an amortized cost of $3.0 million were pledged to the Federal Reserve as collateral for a secured public deposits and for other purposes as required by law or contract provisions, in addition to held-to-maturity debt securities with an amortized cost of $53.3 million were pledged as collateral for a secured line of credit with the Federal Reserve. The Company also pledged $9.9 million available-for-sale debt securities to another financial institution to support the collateralization requirement against certain customers’ standby letters of credit.
Contractual Maturities
The amortized cost and estimated fair value of all held-to-maturity and available-for-sale debt securities as of December 31, 2025 by contractual maturities are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Held-to-MaturityAvailable-for-Sale
(dollars in thousands)Amortized
Cost
Estimated Fair
Value
Amortized
Cost
Estimated Fair
Value
Due in one year or less$— $— $23 $23 
Due after one year through five years— — 11,777 11,152 
Due after five years through ten years37,796 35,423 13,684 12,768 
Due after ten years15,140 13,885 211,707 210,947 
$52,936 $49,308 $237,191 $234,890 
Realized Gains and Losses

There were no gross realized gains and losses for sales and calls of available-for-sale debt securities for the years ended December 31, 2025 and 2024.

Unrealized Gains and Losses

The gross unrealized losses and related estimated fair values of all available-for-sale debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and 2024 are summarized as follows:
Less than 12 Months12 Months or LongerTotal
(dollars in thousands)
Gross Unrealized
Losses
Estimated
Fair
Value
Gross Unrealized
Losses
Estimated
Fair
Value
Gross Unrealized
Losses
Estimated
Fair
Value
December 31, 2025:
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities:$(329)$47,667 $(2,072)$28,726 $(2,401)$76,393 
SBA securities— — (54)2,813 (54)2,813 
U.S. Treasury— — (182)2,472 (182)2,472 
U.S. Agency
— — (207)1,793 (207)1,793 
Collateralized mortgage obligations(35)7,971 (1,860)25,234 (1,895)33,205 
Taxable municipals
— — (68)438 (68)438 
$(364)$55,638 $(4,443)$61,476 $(4,807)$117,114 
December 31, 2024:
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities:$(1,659)$47,792 $(3,106)$20,692 $(4,765)$68,484 
SBA securities(2)924 (95)3,011 (97)3,935 
U.S. Treasury— — (315)2,392 (315)2,392 
U.S. Agency
— — (330)1,670 (330)1,670 
Collateralized mortgage obligations(279)7,922 (3,684)28,985 (3,963)36,907 
Taxable municipals
— — (98)409 (98)409 
Tax exempt bank-qualified municipals
— — (4)826 (4)826 
$(1,940)$56,638 $(7,632)$57,985 $(9,572)$114,623 

As of December 31, 2025, the Company had a total of 78 available-for-sale debt securities in a gross unrealized loss position totaling $4.8 million, consisting of 63 securities with total gross unrealized losses of $4.4 million that had been in a continual loss position for twelve months and longer. As of December 31, 2024, the Company had a total of 89 available-for-sale debt securities in a gross unrealized loss position totaling $9.6 million, consisting of 64 securities with total gross unrealized losses of $7.6 million that had been in a continual loss position for twelve months and longer. Such unrealized losses on these investment securities have not been recognized into income.

Unrealized losses on available-for-sale debt securities are recognized in shareholders’ equity as accumulated other comprehensive loss, net of tax. At December 31, 2025, the Company had a net unrealized loss on available-for-sale debt securities of $2.3 million, or $1.6 million net of tax in accumulated other comprehensive loss, compared to a net unrealized loss of $9.4 million, or $6.6 million net of tax in accumulated other comprehensive loss, at December 31, 2024.
Allowance for Credit Losses on Debt Securities
For available-for-sale debt securities with unrealized losses, management considered the financial condition of the issuer and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. The Company’s available-for-sale debt securities consisted of U.S. Treasury, U.S. government and agency and government sponsored enterprise securities, and municipals, which historically have had limited credit loss experience. In addition, the Company reviewed the credit rating of the municipal securities. At December 31, 2025, the total fair
value of taxable bank-qualified municipal securities was $938 thousand and there were no tax exempt bank-qualified municipal securities. At December 31, 2025, all of these securities were rated AA and above. At December 31, 2024, the total fair value of taxable and tax exempt bank-qualified municipal securities was $909 thousand and $826 thousand, respectively. At December 31, 2024, all of these securities were rated AA and above.

At December 31, 2025, 61 held-to-maturity debt securities with fair values totaling $49.3 million had gross unrecognized losses totaling $3.6 million, compared to 61 held-to-maturity debt securities with fair values totaling $47.8 million that had gross unrecognized losses totaling $5.5 million at December 31, 2024. The Company has the intent and ability to hold the securities classified as held-to-maturity until they mature, at which time the Company will receive full value for the securities. At December 31, 2025 and December 31, 2024, fair values of held-to-maturity debt securities rated AA and above totaled $46.0 million and $44.7 million, respectively, and rated AA- totaled $3.3 million and $3.2 million, respectively.
Management evaluates securities in an unrealized and unrecognized loss position at least on a quarterly basis, and determined that the unrealized and unrecognized losses at December 31, 2025 and 2024 related to each investment were primarily attributable to factors other than credit related, including changes in interest rates driven by the Federal Reserve’s policy to fight against inflation and general volatility in market conditions. As such, the Company applied a zero credit loss assumption for these securities and no provision for credit losses was recorded for held-to-maturity or available-for-sale debt securities during the years ended December 31, 2025 and 2024.

Restricted Stock
As a member of the Federal Reserve System, the Company must hold stock of the Federal Reserve in an amount equal to 3% of the Company’s common stock and additional paid-in capital. In addition, as a member of the Federal Home Loan Bank (“FHLB”) of San Francisco, the Company is required to own stock of the FHLB based on the Company’s outstanding mortgage assets and outstanding advances from the FHLB.

The table below summarizes the Company’s restricted stock investments at December 31:

(dollars in thousands)20252024
Federal Reserve Bank$15,627 $15,524 
Federal Home Loan Bank15,305 15,305 
$30,932 $30,829 

During the year ended December 31, 2025, the Company purchased $103 thousand of Federal Reserve Bank stock, and purchased no FHLB stock. In connection with the Merger, the Company acquired $5.9 million of FHLB stock during the year ended December 31, 2024. Additionally, during the year ended December 31, 2024, the Company purchased $8.1 million of Federal Reserve Bank stock, and purchased $820 thousand of FHLB stock.
Other Equity Securities Without A Readily Determinable Fair Value
The Company also has equity securities in the form of capital stock invested in two different banker’s bank stocks which totaled $819 thousand at both December 31, 2025 and 2024. The Company acquired $468 thousand of these two banker’s bank stocks in connection with the Merger during the year ended December 31, 2024. These equity securities are reported in accrued interest receivable and other assets in the consolidated balance sheets. At December 31, 2025 and 2024, the Company evaluated the carrying value of these equity securities and determined that they were not impaired. During the years ended December 31, 2025 and 2024, there were no losses related to changes in the fair value of these equity securities.
The Company has other equity investments and investments in a technology venture capital fund focused on the intersection of fintech and community banking. These equity investments represent VIEs, however the Company is not the primary beneficiary. The Company’s maximum exposure to loss related to its investments in these unconsolidated VIEs is limited to the carrying value of each of the investments plus any unfunded capital commitments. At December 31, 2025 and 2024, the balance of these investments, which is included in accrued interest receivable and other assets in the consolidated balance sheets, was $9.1 million and $7.1 million, respectively. Total unfunded capital commitments for these investments were $7.5 million at December 31, 2025. These equity securities are measured using the equity method of accounting when the Company’s ownership interest in such investments exceeds 5%, or carried at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer. Cash distributions considered returns of capital are recorded as a reduction of the Company’s investment. During the year ended December 31, 2025, the Company received $315 thousand of net capital distributions related to these equity investments and earned income of $2.3 million which is included in other charges and fees in the consolidated statements of income. During the year ended December 31, 2024, the Company received $2.0 million of net capital distributions to these equity investments and earned income of $133 thousand which is included in other charges and fees in the consolidated statements of income. At December 31, 2025 and 2024, the Company evaluated the carrying value of these equity investments and determined they were not impaired. During the years ended December 31, 2025 and 2024, there were no losses recognized related to changes in the fair value.
The Company has also invested in and acquired interests in limited partnerships that operate affordable housing projects that qualify for and have received an allocation of federal and/or state low-income housing tax credits. These investments represent VIEs, however the Company is not the primary beneficiary. The Company’s maximum exposure to loss related to its investments in these unconsolidated variable interest entities is limited to the carrying amount of the investment and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. At December 31, 2025 and 2024 the net amortized balance of these investments was $4.8 million and $5.8 million, respectively, and is included in accrued interest and other assets in the consolidated balance sheets. The unfunded portion of these investments totaled $382 thousand and $1.8 million at December 31, 2025 and 2024, respectively, and is included in accrued interest payable and other liabilities in the consolidated balance sheets. The following table presents activity in qualifying low income housing projects for the years ended December 31, 2025 and 2024 follows:

(dollars in thousands)20252024
Amortization expense included in income tax expense$689 $685 
Tax credits and other tax benefits recognized1,206 887 
Contributions
1,033 322 
At December 31, 2025 and 2024, the Company evaluated the carrying value of these tax credit equity investments and determined they were not impaired, and no loss was recognized related to changes in the fair value for the years then ended.
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES
12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans Held for Investment

The Company’s loan portfolio consists primarily of loans to borrowers within its Southern and Northern California markets. Although the Company seeks to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses are among the principal industries in the Company’s market area. The Company’s loan portfolio in real estate secured credit represented 80% and 77% of total loans held for investment at December 31, 2025 and 2024, respectively. The Company also originates SBA loans either for sale to institutional investors or for retention in the loan portfolio. Loans identified as held for sale are carried at the lower of cost or market value and separately designated as such in the consolidated financial statements. A portion of the Company’s revenues are from origination of loans guaranteed by the SBA under its various programs and sale of the guaranteed portions of the loans. Funding for these loans depends on annual appropriations by the U.S. Congress.
The composition of the Company’s loan portfolio at December 31, 2025 and 2024 was as follows:

(dollars in thousands)20252024
Construction and land development$138,894 $227,325 
Real estate - other:
  1-4 family residential142,399 164,401 
  Multifamily residential324,075 243,993 
  Commercial real estate and other1,820,445 1,767,727 
Commercial and industrial
605,859 710,970 
Consumer 2,215 24,749 
Loans held for investment (1)
3,033,887 3,139,165 
Allowance for credit losses - loans(34,348)(50,540)
Loans held for investment, net
$2,999,539 $3,088,625 

(1)Loans held for investment included net unearned fees of $2.8 million and $1.8 million and net unearned discounts on acquired loans of $31.3 million and $58.5 million at December 31, 2025 and 2024, respectively. The Company recognized $21.3 million and $12.3 million in interest accretion for net deferred loan fees and net discounts on acquired loans for the years ended December 31, 2025 and 2024, respectively.

The Company has pledged $2.20 billion of loans with FHLB under a blanket lien, of which an unpaid principal balance of $1.44 billion was considered as eligible collateral under this secured borrowing arrangement and loans with an unpaid principal balance totaling $351.7 million were pledged as collateral under a secured borrowing arrangement with the Federal Reserve as of December 31, 2025. See Note 10 – Borrowing Arrangements for additional information regarding the FHLB and Federal Reserve secured lines of credit.
Loans Held for Sale

At December 31, 2025, the Company had loans held for sale totaling $25.1 million, consisting of $7.8 million SBA 7(a) loans and $17.3 million consumer solar loans transferred from loans held for investment, compared to $17.2 million, consisting of $10.3 million of SBA 7(a) loans and $6.9 million of C&I loans transferred from loans held for investment at December 31, 2024. The Company accounts for loans held for sale at the lower of carrying value or fair value. At December 31, 2025 and 2024, the fair value of loans held for sale totaled $25.6 million and $17.9 million, respectively. During the years ended December 31, 2025 and December 31, 2024, there were $17.3 million of consumer solar loans and $25.9 million of C&I loans, respectively, transferred from loans held for investment to loans held for sale.
Credit Quality Indicators
The Company categorizes loans using risk ratings based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. Larger, non-homogeneous loans such as CRE and C&I loans are analyzed individually for risk rating assessment. For purposes of risk classification, 1-4 Family Residential loans for investment purposes are evaluated with CRE loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings:

Pass - Loans classified as pass include loans not meeting the risk ratings defined below.
Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future.
The risk category of loans by class of loans and origination year as of December 31, 2025 follows:
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20252024202320222021PriorTotal
December 31, 2025
Construction and land development
Pass$28,119 $39,469 $12,434 $35,050 $5,336 $2,263 $— $2,343 $125,014 
Special mention— — — — — — — — — 
Substandard— — — 13,808 — 72 — — 13,880 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total construction and land development28,119 39,469 12,434 48,858 5,336 2,335 — 2,343 138,894 
YTD gross charge-offs
— — — — — — — — — 
Real estate - other:
1-4 family residential
Pass2,469 1,525 12,657 29,542 16,550 22,687 50,872 3,430 139,732 
Special mention— — — — — — — — — 
Substandard— — — 2,667 — — — — 2,667 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total 1-4 family residential2,469 1,525 12,657 32,209 16,550 22,687 50,872 3,430 142,399 
YTD gross charge-offs
— — — — — — — — — 
Multifamily residential
Pass61,974 15,987 18,766 77,050 82,137 58,201 1,990 — 316,105 
Special mention— — — 7,970 — — — — 7,970 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
Total
Loss— — — — — — — — — 
Total multifamily residential61,974 15,987 18,766 85,020 82,137 58,201 1,990 — 324,075 
YTD gross charge-offs
— — — — — — — — — 
Commercial real estate and other
Pass259,144 96,078 81,643 422,093 342,770 472,569 70,135 15,711 1,760,143 
Special mention4,018 — 2,765 13,676 1,108 17,386 6,207 — 45,160 
Substandard— — 3,161 195 1,450 10,336 — — 15,142 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial real estate and other263,162 96,078 87,569 435,964 345,328 500,291 76,342 15,711 1,820,445 
YTD gross charge-offs
— — — — 1,297 717 — — 2,014 
Commercial and industrial
Pass82,767 42,546 18,481 44,235 17,898 57,091 289,223 5,349 557,590 
Special mention— 639 33 486 11 1,747 16,191 170 19,277 
Substandard293 1,052 954 16,421 17 828 8,063 1,364 28,992 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial and industrial83,060 44,237 19,468 61,142 17,926 59,666 313,477 6,883 605,859 
YTD gross charge-offs
— — 91 3,541 163 1,179 — — 4,974 
Consumer
Pass431 873 — 649 259 — 2,215 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total consumer431 873 — 649 259 — 2,215 
YTD gross charge-offs
$— $— $— $— $3,502 $— $— $— $3,502 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
Total
Total by risk rating:
Pass$434,904 $196,478 $143,981 $608,619 $464,693 $612,812 $412,479 $26,833 $2,900,799 
Special mention4,018 639 2,798 22,132 1,119 19,133 22,398 170 72,407 
Substandard293 1,052 4,115 33,091 1,467 11,236 8,063 1,364 60,681 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total loans$439,215 $198,169 $150,894 $663,842 $467,279 $643,181 $442,940 $28,367 $3,033,887 
YTD gross charge-offs
$— $— $91 $3,541 $4,962 $1,896 $— $— $10,490 
The risk category of loans by class of loans and origination year as of December 31, 2024 follows:

Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20242023202220212020PriorTotal
December 31, 2024
Construction and land development
Pass$25,812 $25,857 $84,638 $47,687 $7,297 $2,328 $9,865 $— $203,484 
Special mention— — — — 12,431 — — — 12,431 
Substandard— — 9,659 — 1,669 82 — — 11,410 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total construction and land development25,812 25,857 94,297 47,687 21,397 2,410 9,865 — 227,325 
YTD gross charge-offs
— — 967 — — — — — 967 
Real estate - other:
1-4 family residential
Pass20,297 15,581 33,660 17,902 6,683 18,628 44,286 — 157,037 
Special mention— — — — — — — — — 
Substandard— — 2,895 — — — 4,469 — 7,364 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total 1-4 family residential20,297 15,581 36,555 17,902 6,683 18,628 48,755 — 164,401 
YTD gross charge-offs
— — — — — — — 
Multifamily residential
Pass15,998 11,087 85,834 84,671 5,107 37,510 — — 240,207 
Special mention— — — — — 3,786 — — 3,786 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
Total
Loss— — — — — — — — — 
Total multifamily residential15,998 11,087 85,834 84,671 5,107 41,296 — — 243,993 
YTD gross charge-offs
— — 1,456 — — — — — 1,456 
Commercial real estate and other
Pass111,911 86,261 454,470 399,393 100,110 453,301 104,456 148 1,710,050 
Special mention— 9,568 2,583 11,268 2,264 9,848 — 495 36,026 
Substandard— — — 11,551 — 10,100 — — 21,651 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial real estate and other111,911 95,829 457,053 422,212 102,374 473,249 104,456 643 1,767,727 
YTD gross charge-offs
— — 51 — — — — — 51 
Commercial and industrial
Pass55,350 39,484 91,049 38,303 14,663 63,973 314,284 — 617,106 
Special mention307 46 1,403 1,322 230 1,920 11,868 — 17,096 
Substandard120 1,286 20,859 2,890 — 3,543 48,070 — 76,768 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial and industrial55,777 40,816 113,311 42,515 14,893 69,436 374,222 — 710,970 
YTD gross charge-offs
— 37 24 — — — — — 61 
Consumer
Pass692 — 1,019 22,340 81 206 — 24,344 
Special mention— — — — — — — — — 
Substandard— — — 405 — — — — 405 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total consumer692 — 1,019 22,745 81 206 — 24,749 
YTD gross charge-offs
$— $— $— $238 $— $— $— $— $238 
Total by risk rating:
Pass$230,060 $178,270 $750,670 $610,296 $133,941 $575,746 $473,097 $148 $2,952,228 
Special mention307 9,614 3,986 12,590 14,925 15,554 11,868 495 69,339 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
Total
Substandard120 1,286 33,413 14,846 1,669 13,725 52,539 — 117,598 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total loans$230,487 $189,170 $788,069 $637,732 $150,535 $605,025 $537,504 $643 $3,139,165 
YTD gross charge-offs
$— $37 $2,498 $238 $— $— $$— $2,774 
Past Due Loans

A summary of past due loans as of December 31, 2025 and 2024 follows:
Accruing Loans
(dollars in thousands)30-59 Days
Past Due
60-89 Days
Past Due
90 Days and Over
Past Due
Total
Past Due
CurrentNonaccrualTotal
December 31, 2025
Construction and land development$— $— $— $— $125,086 $13,808 $138,894 
Real estate - other:
  1-4 family residential— — — — 142,399 — 142,399 
  Multifamily residential7,970 — — 7,970 316,105 — 324,075 
  Commercial real estate and other5,838 — — 5,838 1,814,524 83 1,820,445 
Commercial and industrial 845 53 — 898 602,766 2,195 605,859 
Consumer — 29 — 29 2,186 — 2,215 
$14,653 $82 $— $14,735 $3,003,066 $16,086 $3,033,887 
Accruing Loans
(dollars in thousands)30-59 Days
Past Due
60-89 Days
Past Due
90 Days and Over
Past Due
Total
Past Due
CurrentNonaccrualTotal
December 31, 2024
Construction and land development$4,104 $— $— $4,104 $213,562 $9,659 $227,325 
Real estate - other:
  1-4 family residential40 4,469 — 4,509 156,997 2,895 164,401 
  Multifamily residential— — — — 243,993 — 243,993 
  Commercial real estate and other195 — — 195 1,758,617 8,915 1,767,727 
Commercial and industrial 1,866 1,113 — 2,979 703,074 4,917 710,970 
Consumer 69 226 150 445 24,304 — 24,749 
$6,274 $5,808 $150 $12,232 $3,100,547 $26,386 $3,139,165 
The Company had zero and $150 thousand in consumer solar loans that were over 90 days past due that were accruing interest at December 31, 2025 and December 31, 2024, respectively.
Nonaccrual Loans
A summary of total nonaccrual loans and the amount of nonaccrual loans with no related ACL as of December 31, 2025 and 2024 follows:
Nonaccrual Loans
Collateral Dependent Loans
Non-Collateral Dependent Loans
(dollars in thousands)
Balance
ACL
Balance
ACL
Total
Nonaccrual
Loans
Nonaccrual
Loans with no ACL
December 31, 2025
Construction and land development$13,808 $373 $— $— $13,808 $8,808 
Real estate - other:
  1-4 family residential— — — — — — 
  Multifamily residential— — — — — — 
  Commercial real estate and other83 — — — 83 83 
Commercial and industrial 1,865 207 330 — 2,195 553 
Consumer — — — — — — 
Total
$15,756 $580 $330 $— $16,086 $9,444 
Nonaccrual Loans
Collateral Dependent Loans
Non-Collateral Dependent Loans
(dollars in thousands)
Balance
ACL
Balance
ACL
Total
Nonaccrual
Loans
Nonaccrual
Loans with no ACL
December 31, 2024
Construction and land development$9,659 $— $— $— $9,659 $9,659 
Real estate - other:
1-4 family residential2,895 — — — 2,895 2,895 
Multifamily residential— — — — — — 
Commercial real estate and other8,915 820 — — 8,915 — 
Commercial and industrial4,809 675 108 — 4,917 108 
Consumer— — — — — — 
Total
$26,278 $1,495 $108 $— $26,386 $12,662 
Individually Evaluated Loans

The Company evaluates loans collectively for purposes of determining the ACL in accordance with ASC 326. Loans are grouped based on shared risk characteristics, such as loan type, credit rating, collateral type, and borrower industry. In certain cases, the Company may identify loans that no longer exhibit similar risk characteristics to others in the portfolio. These loans are typically assigned a substandard or worse internal risk grade, as their credit profiles become more unique with deterioration. Such loans are often non-performing, may be modified for borrowers experiencing financial difficulty, and/or are considered collateral-dependent—where repayment is expected to come from the operation or sale of the underlying collateral. Loans deemed by management to lack shared risk characteristics are evaluated individually for ACL purposes. For individually evaluated loans, the Company generally applies a discounted cash flow method using the loan’s effective interest rate. If a loan is deemed collateral-dependent, the ACL is determined based on the estimated fair value of the collateral, net of estimated costs to sell. Adjustments to the ACL for collateral-dependent loans reflect changes in the expected fair value of the collateral. For all other individually evaluated loans with amortized balances below $200 thousand, the ACL is primarily determined using the loan pricing approach, which applies a discount factor to the loan’s unguaranteed book balance to reflect expected credit risk and recovery assumptions.
As of December 31, 2025, $30.4 million of loans were individually evaluated with a $373 thousand ACL attributed to such loans. At December 31, 2025, $29.8 million of individually evaluated loans were evaluated based on the underlying value of the collateral, and $553 thousand were evaluated using a discounted cash flow approach. One C&I loan with net amortized balance of $16.1 million was moved to individually evaluated loans due in part, to ongoing third-party litigation against the guarantor. The loan was on accrual status and current on its payment obligation as of December 31, 2025. All other individually evaluated loans were on nonaccrual status at December 31, 2025.
As of December 31, 2024, $12.7 million of loans were individually evaluated with no ACL attributed to such loans. At December 31, 2024, $12.6 million of the individually evaluated loans were evaluated based on the underlying value of the collateral, and $108 thousand were evaluated using a loan pricing approach. All individually evaluated loans were on nonaccrual status at December 31, 2024.
Collateral Dependent Loans
Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. Collateral dependent loans are individually evaluated to measure the ACL, which is determined based on the estimated fair value of the collateral. Estimates for costs to sell are included in the determination of the ACL when liquidation of the collateral is anticipated. In cases where the loan is well secured and the estimated value of the collateral exceeds the amortized cost of the loan, no ACL is recorded.
A summary of collateral dependent loans by collateral type as of December 31, 2025 and 2024 follows:
Type of Collateral
(dollars in thousands)
Commercial
Real Estate
Residential
Real Estate
Business
Assets
December 31, 2025
Construction and land development$— $13,808 $— 
Real estate - other:
  1-4 family residential— — — 
  Commercial real estate and other83 — — 
Commercial and industrial 17,330 — 250 
$17,413 $13,808 $250 
December 31, 2024
Construction and land development$— $9,659 $— 
Real estate - other:
1-4 family residential— 2,895 — 
Commercial real estate and other8,915 — — 
Commercial and industrial1,402 3,407 
$10,317 $12,554 $3,407 
Modified Loans to Borrowers Experiencing Financial Difficulty
The following table presents the period-end amortized cost basis of modified loans to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024.
Year Ended December 31, 2025
(dollars in thousands)Term ExtensionPayment DelayInterest Rate Reduction and Term ExtensionTerm Extension and Payment Delay
Total
Total as a % of Loan Class
Construction and land development$— $— $8,808 $— $8,808 6.3 %
Real estate - other:
  Multifamily residential
— — 7,970 — 7,970 2.5 %
  Commercial real estate and other
13,249 — — 3,616 16,865 0.9 %
Commercial and industrial20,101 672 — — 20,773 3.4 %
Total
$33,350 $672 $16,778 $3,616 $54,416 1.8 %
Year Ended December 31, 2024
(dollars in thousands)Term ExtensionPayment DelayInterest Rate Reduction and Term Extension
Total
Total as a % of Loan Class
Construction and land development$1,669 $— $— $1,669 0.7 %
Commercial and industrial22,452 — — 22,452 3.2 %
Total
$24,121 $— $— $24,121 0.8 %
The following tables present the financial effect of loans to borrowers experiencing financial difficulty that were modified during the years ended December 31, 2025 and 2024.
Year Ended December 31, 2025
(dollars in thousands)Financial effect
Term Extension:
Real estate - other:
Commercial real estate and other
Extended term by a weighted average of seven months
Commercial and industrial
Extended term by a weighted average of eleven months
Payment Delay:
Commercial and industrial
Weighted average of two months full payment deferrals. Upon completion of payment deferrals, weighted average of twelve months of partial payment deferrals
Interest Rate Reduction and Term Extension:
Construction and land development
Extended maturity by a weighted average of four months and reduced interest rates by a weighted average of 2.16%
Real estate - other:
Multifamily residential
Extended maturity by a weighted average of three months and reduced interest rates by a weighted average of 1.50%
Term Extension and Payment Delay:
Real estate - other:
Commercial real estate and other
Extended maturity by a weighted average of seven months, weighted average of 6 months of interest only payment, weighted average of 60 days payment deferrals. Upon completion of payment deferrals, weighted average of 12 months partial payments

Year Ended December 31, 2024
(dollars in thousands)
Financial effect
Term Extension:
Construction and land development
Extended term by a weighted average of two months
Commercial and industrial
Extended term by a weighted average of nine months
The following tables present a payment aging analysis of the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the years ended December 31, 2025 and 2024:
Accruing Loans
(dollars in thousands)30-59
Days
Past Due
60-89
Days
Past Due
90 Days and Over
Past Due
Total
Past Due
NonaccrualCurrentTotal
December 31, 2025
Construction and land development$— $— $— $— $8,808 $— $8,808 
Real estate:
Multifamily residential7,970 — — 7,970 — — 7,970 
Commercial real estate and other— — — — — 16,865 16,865 
Commercial and industrial— — — — 330 20,443 20,773 
$7,970 $— $— $7,970 $9,138 $37,308 $54,416 
Accruing Loans
(dollars in thousands)
30-59
Days
Past Due
60-89
Days
Past Due
90 Days and Over
Past Due
Total
Past Due
NonaccrualCurrentTotal
December 31, 2024
Construction and land development$1,669 $— $— $1,669 $— $— $1,669 
Commercial and industrial— — — — 3,510 18,942 22,452 
$— $— $— $— $3,510 $18,942 $24,121 
Allowance for Credit Losses - Loans

The ACL consists of: (i) a specific allowance established for CECL on loans individually evaluated, (ii) a quantitative allowance for current expected loan losses based on the portfolio and expected economic conditions over a reasonable and supportable forecast period that reverts back to long-term trends to cover the expected life of the loan, (iii) a qualitative allowance including management judgment to capture factors and trends that are not adequately reflected in the quantitative allowance, and (iv) the ACL for off-balance sheet credit exposure for unfunded loan commitments.
The Company used the probability-weighted two-scenario forecasts, representing a baseline scenario and one downside scenario (S2), to estimate the ACL. The Company utilized economic forecasts released by Moody’s Analytics during the second week of December 2025. Other sources of economic forecasts and meeting minutes of the Federal Open Market Committee (“FOMC”) meeting were also considered by the Company when determining the scenario weighting. At December 31, 2025, minor adjustments were made to the Moody’s December 2025 U.S. baseline forecast from prior quarter, with slightly stronger GDP growth and investment expectations, a slower monetary easing path, and marginal adjustments to tariffs and oil price assumptions, maintaining a cautious outlook with weak near-term growth but avoiding recession. With limited new official data due to government shutdown, real GDP growth reflected a slightly stronger annualized growth in 2025 through 2027, with upward adjustments to 1.9%, 2.1% and 1.9%, respectively. The Conference Board’s forecast for 2025 GDP was updated to 1.6% in December 2025, down from 2.0% at the beginning of the year, and it is in line with Moody’s Baseline scenario of 1.9%. Moody’s economic forecast anticipated a 25 basis points rate cut in December 2025, followed by gradual reduction to 2.75% by 2027. The inflation outlook was slightly revised downward from prior quarter in December. The 10-year Treasury yield was adjusted from 4.3% to 4.1%. The labor market remained weak in the December update. Job growth nearly stalled over the fall. Despite this, the
unemployment rate is still projected to peak at 4.8% by the second half of 2026, consistent with the prior quarter forecast.
Between September 2025 and December 2025, Moody’s December update to its S2 downside scenario reflected a less severe near-term shock but a slower recovery compared to September. Tariff assumptions were significantly reduced, with the effective rate falling from nearly 22% in September to about 15% in December, and the baseline comparator lowered from 15.3% to 12%. This change signals a softer trade impact in the later scenario. The timing of the recession shifted forward by one quarter—from Q4 2025 in September to Q1 2026 in December—while its depth remains similar at a 1% peak-to-trough GDP decline. Monetary policy assumptions diverged notably: September anticipated a Fed rate hike in late 2025 due to inflation before easing in early 2026, whereas December assumes the Fed cuts rates slightly below baseline almost immediately, then eases further as conditions deteriorate. Alongside this shift, the peak unemployment rate of 7.2% was moved to Q4 2026 from Q3 2026 in December 2025. The economic outlook also became slightly more pessimistic. The projected decline in real GDP for 2026 was revised upward from -0.2% to +0.1%, and the December 2025 update projected a decline to 1.3% from 1.9% in 2027, and lower than the baseline of 1.8%.
Moody’s economic forecasts for California suggested California gross state product (“GSP”) growth of 2.2% in 2025, that continues to decrease to 1.9% in 2026. The report forecasts 2025 California unemployment revised upward to 5.4%, and up to 5.6% in 2026. Beacon Economics characterizes California’s labor market as soft with persistently elevated unemployment, noting the statewide unemployment rate is around the mid‑5% range and remains among the highest in the nation, with only modest improvement expected in the near term.
The other California economic forecasts, like GSP for the construction sector, California Home Price Index (“HPI”) and Personal Consumption Expenditure (“PCE”), used in the ACL calculation were mixed in the baseline and downside scenarios. The overall changes are more optimistic for most loss drivers, except the California unemployment rate which was adjusted marginally higher in the near term in S2 scenario. California GSP is considerably higher in baseline scenario, but the change is mixed in S2 scenario. California GSP construction is adjusted higher in both scenarios. California Home Price Index (“HPI”) was revised substantially higher to reflect recent trend, and 5-year treasury yield is adjusted lower in both scenarios. These varied changes in key economic forecasts for California are expected to have a mixed impact on the Company's ACL.
Based on the above reviews and analyses, the Company continues using the two probability-weighted scenario forecasts, and assigned 80% to the baseline scenario and 20% to the S2 downside scenario at December 31, 2025. The recommended weightings are based on the FOMC lowering the federal funds rate by 25 basis points in the December 2025 meeting and a total of 75 bps in 2025, to achieve maximum employment and return inflation to its 2% objective. Uncertainty about the economic outlook has diminished, but remains elevated, unemployment rate remains low, and labor market conditions remain solid. Short-term rates are likely to decline due to the Fed’s increased focus on employment and potential monetary easing, while the long-term rates may remain evaluated due to persistent inflation and policy uncertainty. The Company opts to utilize solely the base-case scenario for the ACL model; however, given recent heightened domestic and geopolitical uncertainty, uncertainty around the new administration and tariff policy, a rising inflation level that is still considerably above the Fed’s 2.0% target rate, and slowing GDP growth projection, the Company believes it is prudent to assign a weighting to a downside scenario (S2) that considers the potential for rising inflation. Inflation is a difficult economic variable to predict, as it is subject to a variety of factors and there are limited tools to control it. A new presidential administration has brought changes in U.S. economic policy, the effects of which are unknown and may potentially lead to higher inflation, as could other domestic and geopolitical developments. Incorporating the S2 scenario in our ACL model provides a hedge against the potential for increasing inflation in an uncertain economic environment.
For prepayment and curtailment rates, the Company used its own historical quarterly prepayment and curtailment experience covering the period starting February 2021 through November 2025 to estimate the ACL. During the fourth quarter of 2025, the Company updated its historical prepayment and curtailment rates analysis, which reflected a slight decrease in prepayment rates and slight increase in curtailment rates from the third quarter of 2025.
Accrued interest receivable on loans receivable, net, totaled $9.8 million and $11.7 million at December 31, 2025 and 2024, respectively, and is included within accrued interest receivable and other assets in the accompanying consolidated balance sheets. Accrued interest receivable is excluded from the ACL.
Allowance for Credit Losses - Unfunded Loan Commitments
The allowance for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. The Company evaluates the loss exposure for unfunded loan commitments to extend credit following the same principles used for the ACL, with consideration for experienced utilization rates on client credit lines and the inherently lower risk of unfunded loan commitments relative to disbursed commitments. The Company recognized a reversal of provision for unfunded loan commitments of $998 thousand for the year ended December 31, 2025. There was a $2.2 million provision for unfunded loan commitments for the year ended December 31, 2024, of which $2.7 million related to the initial allowance for unfunded credit commitments acquired in the Merger. The (reversal of) provision for credit losses on unfunded loan commitments is included in (reversal of) provision for credit losses in the consolidated statements of income. The reserve for unfunded loan commitments was $2.1 million and $3.1 million at December 31, 2025 and 2024, respectively. The reserve for unfunded loan commitments is included in accrued interest and other liabilities in the consolidated balance sheets.
A summary of the changes in the ACL for loans and unfunded commitments for the periods indicated follows:
Year Ended
December 31,
(dollars in thousands)20252024
Allowance for loan losses (ALL)
Balance, beginning of year
$50,540 $22,569 
Initial allowance for acquired PCD loans
— 11,216 
(Reversal of) provision for loan losses(1)
(7,825)19,520 
Charge-offs(10,490)(2,774)
Recoveries2,123 
     Net charge-offs
(8,367)(2,765)
Balance, end of year
$34,348 $50,540 
Reserve for unfunded loan commitments
Balance, beginning of year
$3,103 $933 
(Reversal of) provision for unfunded commitment losses(2)
(998)2,170 
Balance, end of year
2,105 3,103 
Allowance for credit losses, end of year
$36,453 $53,643 
(1)Includes an initial provision for credit losses for non-PCD loans acquired in the Merger of $18.5 million for the year ended December 31, 2024. There was no similar activity in the comparable 2025 period.
(2)Includes an initial provision for credit losses for unfunded commitments acquired in the Merger of $2.7 million for the year ended December 31, 2024. There was no similar activity in the comparable 2025 period.
A summary of changes in the ALL by loan portfolio segment for the periods indicated follows:
(dollars in thousands)Construction and Land DevelopmentReal Estate -
Other
Commercial & IndustrialConsumerTotal
Year Ended December 31, 2025
Beginning of year
$1,953 $29,399 $18,056 $1,132 $50,540 
(Reversal of) provision for loan losses(749)(3,075)(6,330)2,329 (7,825)
Charge-offs— (2,014)(4,974)(3,502)(10,490)
Recoveries— 280 1,792 51 2,123 
Net charge-offs— (1,734)(3,182)(3,451)(8,367)
End of year
$1,204 $24,590 $8,544 $10 $34,348 
Year Ended December 31, 2024
Beginning of year
$2,032 $16,280 $4,242 $15 $22,569 
Initial allowance for acquired PCD loans328 2,392 8,355 141 11,216 
Provision for loan losses(1)
560 12,235 5,511 1,214 19,520 
Charge-offs(967)(1,508)(61)(238)(2,774)
Recoveries— — — 
Net charge-offs(967)(1,508)(52)(238)(2,765)
End of year
$1,953 $29,399 $18,056 $1,132 $50,540 
(1)Includes an initial provision for credit losses for non-PCD loans acquired in the Merger of $18.5 million for the year ended December 31, 2024. There was no similar activity in the comparable 2025 period.
v3.25.4
TRANSFERS AND SERVICING OF FINANCIAL ASSETS
12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
TRANSFERS AND SERVICING OF FINANCIAL ASSETS TRANSFERS AND SERVICING OF FINANCIAL ASSETS
The Company has originated loans that are serviced for others, including loans partially guaranteed by the SBA, some of which have been sold in the secondary market, as well as CRE loans and C&I loans participated with various other financial institutions and special purpose vehicle (“SPV”) participations for the Main Street loans. Loans sold and serviced for others are accounted for as sales and are therefore not included in the accompanying consolidated balance sheets. Loans serviced for others totaled $113.5 million and $138.0 million at December 31, 2025 and 2024, respectively. This includes SBA loans serviced for others of $35.6 million and $33.2 million at December 31, 2025 and 2024, respectively, for which there was a related servicing asset of $346 thousand and $344 thousand, respectively. At December 31, 2024, loans serviced for others acquired from the Merger totaled $86.9 million.
Consideration for each SBA loan sale includes the cash received and a related servicing asset. The Company receives servicing fees ranging from 0.25% to 1.00% for the services provided over the life of the loan. The servicing asset is based on the estimated fair value of these future cash flows to be collected. The risks inherent in SBA servicing assets primarily relates to accelerated prepayment of loans in excess of what was originally modeled driven by changes in interest rates and a reduction in the estimated future cash flows.
The servicing asset activity includes additions from loan sales with servicing retained, and reductions from amortization as the serviced loans are repaid and servicing fees are earned. The SBA servicing asset is reported in accrued interest receivable and other assets in the consolidated balance sheets.
A summary of changes in the SBA servicing asset for the years ended December 31, 2025 and 2024 follows:
(dollars in thousands)20252024
Balance, beginning of period$344 $546 
Additions164 109 
Amortization (1)
(162)(311)
Balance, end of period$346 $344 
(1) Amortization included accelerated amortization of $50 thousand and $174 thousand for the years ended December 31, 2025 and 2024, respectively.

SBA 7(a) loans sold during the year ended December 31, 2025 totaled $9.0 million, resulting in total gains on sale of SBA loans of $577 thousand. SBA 7(a) loans sold during the year ended December 31, 2024 totaled $6.3 million, resulting in total gains on sale of SBA loans of $415 thousand, respectively.
The Company did not sell any C&I loans during the year ended December 31, 2025. The Company sold C&I loans with a net carrying value of $77.6 million, resulting in total losses of $1.1 million during the year ended December 31, 2024.
The fair value of the servicing asset approximated the carrying value at December 31, 2025 and 2024. The significant assumptions used in the valuation of the SBA servicing asset at December 31, 2025 and 2024 included:
(dollars in thousands)December 31,
2025
December 31,
2024
Discount rate:
Range
5.1% – 19.8%
5.8% – 23.3%
Weighted average12.0%14.3%
Prepayment speed:
Range
15.6% – 37.2%
12.9% – 40.2%
Weighted average19.9%20.5%

The following table presents the components of net servicing fees, included in servicing and related income on loans, net in the consolidated statements of income, for the years ended December 31, 2025 and 2024:
(dollars in thousands)20252024
Contractually specified fees$365 $380 
Amortization(162)(311)
Net servicing fees$203 $69 
v3.25.4
PREMISES AND EQUIPMENT AND LEASES
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
PREMISES AND EQUIPMENT AND LEASES PREMISES AND EQUIPMENT AND LEASES
A summary of premises and equipment as of December 31 follows:
(dollars in thousands)20252024
Land$5,386 $5,386 
Building4,766 4,766 
Leasehold improvements6,226 5,976 
Furniture & fixtures2,100 2,261 
Computer & other equipment4,049 3,888 
22,527 22,277 
Less: Accumulated depreciation and amortization(10,411)(8,682)
Total $12,116 $13,595 

Depreciation and amortization expense on premises and equipment was $1.8 million for both the years ended December 31, 2025 and 2024.
Substantially all leases are operating leases for corporate offices and branch locations and loan production offices. The amount of the lease liability and ROU asset is impacted by the lease term and the discount rate applied to determine the present value of future lease payments. The remaining terms of operating leases range from 6 months to 7.5 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term by varying amounts. The exercise of renewal options is at the sole discretion of the Company. Renewal option periods were not included in the measurement of ROU assets and lease liabilities as they were not considered reasonably certain of exercise at commencement.
During the year ended December 31, 2024, management decided to vacate the office space in New York that was used solely by the relationship manager managing the sponsor finance loan portfolio and recorded an impairment of ROU assets of $78 thousand. The impairment of the ROU asset was based on a discounted cash flow of lease payments. There were no similar impairment charges for the year ended December 31, 2025. Impairment charges are included in occupancy and equipment expenses in the consolidated statements of income.
The ROU assets, lease liabilities and supplemental information at December 31 are shown below.

(dollars in thousands)20252024
Operating lease ROU assets(1)
$15,094 $14,350 
Operating lease liability(1)
$18,936 $18,310 
Weighted average remaining lease term, in years4.894.70
Weighted average discount rate6.3 %6.1 %
(1)Includes $7.7 million of ROU assets and $9.0 million lease liabilities obtained in connection with the Merger during the year ended December 31, 2024.
The Company’s lease expense is recorded in occupancy and equipment expense in the consolidated statements of income. The following table presents the components of lease expense for the years ended December 31:

(dollars in thousands)20252024
Lease costs:
  Operating lease$4,442 $3,528 
  Short-term lease97 — 
Total lease costs$4,539 $3,528 
Other information:
  Cash paid for amounts included in lease liabilities$5,201 $3,827 
  ROU assets obtained for new operating lease obligations$4,796 $105 

Lease liabilities as of December 31, 2025, mature as indicated below:
(dollars in thousands)Amount
Twelve months ending December 31:
2026$4,775 
20274,738 
20284,250 
20293,182 
20302,604 
Thereafter2,778 
Total future minimum lease payments22,327 
Less: imputed interest3,391 
Present value of net future minimum lease payments$18,936 
v3.25.4
OTHER REAL ESTATE OWNED, NET
12 Months Ended
Dec. 31, 2025
Banking And Thrift [Abstract]  
OTHER REAL ESTATE OWNED, NET OTHER REAL ESTATE OWNED, NET
Real estate acquired by foreclosure or deed in lieu of foreclosure is recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis by a charge to the ACL, if necessary. The Company had zero and $4.1 million of foreclosed assets at December 31, 2025 and 2024, respectively.

The following table presents activity with other real estate owned, net for the years ended December 31:
(dollars in thousands)20252024
Balance, beginning of year
$4,083 $— 
Loans transferred to other real estate owned— 17,701 
Valuation allowance for losses
— (614)
Sales
(4,083)(13,004)
Balance, end of year
$— $4,083 
The following table presents activity within the valuation allowance for other real estate owned, net for the years ended December 31:
(dollars in thousands)20252024
Balance, beginning of year
$614 $— 
Valuation allowance for losses— 614 
Sales(614)— 
Balance, end of year
$— $614 
During the year ended December 31, 2025, the Company sold $4.1 million of OREO consisting of a multifamily property, and recognized an $862 thousand pre-tax loss. During the year ended December 31, 2025, there were no valuation allowances recorded due to a decline in the fair value of the underlying property.

During the year ended December 31, 2024, the Company foreclosed on and sold $13.0 million of OREO related to a three-property multifamily OREO, and recognized a $4.8 million pre-tax loss. Additionally, during the year ended December 31, 2024, the Company foreclosed on a multifamily nonaccrual loan of $4.7 million, that was transferred to OREO. During the year ended December 31, 2024, the Company recorded a $614 thousand valuation allowance due to a decline in the fair value of the underlying property.
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, the excess purchase price over the fair value of all identifiable assets and liabilities acquired, totaled $110.9 million and $111.8 million at December 31, 2025 and 2024, respectively. Goodwill is reviewed for impairment at least annually during the fourth quarter of each fiscal year. On an ongoing basis, the Company qualitatively assesses if current events or circumstances warrant the need for an interim quantitative assessment of goodwill impairment.
The Company performed a qualitative assessment for the annual impairment review as of December 31, 2025, and as a result of that assessment had determined that there has been no impairment to the goodwill.
The following table presents changes in the carrying amount of goodwill for the years ended December 31:
(dollars in thousands)20252024
Beginning of the year$111,787 $37,803 
Goodwill from business combination— 74,712 
Adjustments to goodwill(1)(2)
(853)(728)
End of year$110,934 $111,787 
(1)During the year ended December 31, 2025, goodwill adjustments were related to a true-up of the low-income housing tax credit investments acquired from the Merger, offset by CALB state net operating losses that cannot be utilized post-merger and recoveries on acquired PCD loans previously charged-off prior to the Merger. These adjustments resulted in an $853 thousand decrease to goodwill.
(2)During the year ended December 31, 2024, goodwill adjustments for the Merger were related to an increase in the preliminary valuation of intangible assets, net by $300 thousand, with a net increase of $428 thousand to deferred taxes based on the change in the allocated fair value of intangible assets, net and the finalization of initial accounting for income taxes. These adjustments resulted in a $728 thousand decrease to goodwill.
Core deposit intangibles are amortized over remaining periods of 3.0 to 8.6 years. Trade name is amortized over a remaining period of 0.6 years. As of December 31, 2025, the weighted-average remaining amortization period for intangible assets was approximately 8.4 years.
The Company performs the annual impairment analysis for intangible assets at least annually during the fourth quarter of each fiscal year. The Company performed a qualitative assessment for potential impairment as of December 31, 2025, and as a result of that assessment had determined that there has been no impairment to intangible assets, net.
The following table presents the changes in intangibles assets, net for the years ended December 31:
(dollars in thousands)20252024
Gross balance, beginning of year$27,138 $4,185 
Additions(1)
— 22,953 
Gross balance, end of year$27,138 $27,138 
Accumulated amortization:
Balance, beginning of year$(4,867)$(2,990)
Amortization(2)
(3,791)(1,877)
Balance, end of period(8,658)(4,867)
Intangible assets, net, end of year
$18,480 $22,271 
(1)Includes $22.7 million of core deposit intangibles and $300 thousand of trade name obtained in connection with the Merger during the year ended December 31, 2024.
(2)Amortization of the core deposit intangibles and trade name obtained in connection with the merger were 10 years and 2 years, respectively, for a weighted average original term of 9.9 years.

Future estimated amortization for intangible assets, net for each of the next five years is as follows:
(dollars in thousands)Amount
2026$3,138 
20272,761 
20282,465 
20292,160 
20302,003 
Thereafter5,953 
$18,480 
v3.25.4
DEPOSITS
12 Months Ended
Dec. 31, 2025
Deposits [Abstract]  
DEPOSITS DEPOSITS
The Company is a participant in the Certificate of Deposit Account Registry Service (“CDARS”) and IntraFi Network Insured Cash Sweep (“ICS”). The Company receives an equal dollar amount of deposits (“reciprocal deposits”) from other participating banks in exchange for the deposits we place into the networks to fully qualify large customer deposits for FDIC insurance. These reciprocal deposits are
not required to be treated as brokered deposits up to the lesser of 20% of the Bank’s total liabilities or $5 billion.
As of December 31, 2025, reciprocal deposits were $743.6 million, representing 22.1% of total deposits and 21.6% of Bank’s total liabilities, compared to $754.4 million, or 22.2% of total deposits and 21.8% of Bank’s total liabilities at December 31, 2024. The excess over 20% increased the Bank’s wholesale funding to total assets ratio and net non core funding dependence ratio. These two ratios were still within the Bank's internal policy limit. In connection with the Merger, the Company acquired $442.7 million in fair value of reciprocal deposits, of which $98.4 million was in ICS, $306.6 million in Reich & Tang Deposit Solutions (“R&T”) networks and $37.7 million in CDARS. The Company no longer participated in R&T networks. These deposits were moved to ICS deposits.
Time deposits that exceeded the FDIC insurance limit of $250,000 amounted to $65.1 million and $80.6 million as of December 31, 2025 and 2024, respectively. Brokered time deposits totaled $3.8 million and $121.1 million as of December 31, 2025 and 2024, respectively.
The Company participates in a state public deposits program that allows it to receive deposits from the state or from political subdivisions within the state in amounts that would not be covered by the FDIC. This program provides a stable source of funding to the Company. As of December 31, 2025 and 2024, total collateralized deposits, including the deposits of the State of California and their public agencies, were $45.8 million and $25.1 million, respectively, and were collateralized by letters of credit issued by the FHLB under the Company’s secured line of credit with the FHLB. See Note 10 – Borrowing Arrangements for additional information regarding the FHLB secured line of credit.
At December 31, 2025, the scheduled maturities of time deposits are as follows:

(dollars in thousands)Amount
2026$126,895 
20271,205 
202820 
2029125 
2030
$128,246 
v3.25.4
BORROWING ARRANGEMENTS
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
BORROWING ARRANGEMENTS BORROWING ARRANGEMENTS
A summary of outstanding borrowings as of December 31 follows:

(dollars in thousands)20252024
FHLB advances$— $— 
Subordinated debt33,832 69,725 
Total borrowings$33,832 $69,725 

Federal Home Loan Bank Secured Line of Credit
At December 31, 2025, the Company had a secured line of credit of $814.3 million from the FHLB, of which $749.3 million was available. This secured borrowing arrangement is collateralized under a blanket lien on qualifying real estate loans and is subject to the Company providing adequate collateral and continued compliance with the Advances and Security Agreement and other eligibility requirements established by the FHLB. At December 31, 2025, the Company had pledged $2.20 billion of
qualifying loans with the FHLB under a blanket lien, of which an unpaid principal balance of $1.44 billion was considered as eligible collateral under this secured borrowing arrangement. In addition, at December 31, 2025, the Company used $65.0 million of its secured FHLB borrowing capacity by having the FHLB issue letters of credit to meet collateral requirements for deposits from the State of California and other public agencies.
There were no borrowings at December 31, 2025 and 2024.
Federal Reserve Bank Secured Line of Credit
At December 31, 2025, the Company had credit availability of $327.8 million at the Federal Reserve discount window to the extent of collateral pledged. At December 31, 2025, the Company had pledged debt securities with an amortized cost of $52.9 million as collateral, and qualifying loans with an unpaid principal balance of $351.7 million as collateral through the Borrower-in-Custody (“BIC”) program. The Company also pledged available-for-sale debt securities with an amortized cost of $27.6 million as collateral for secured public deposits and for other purposes as required by law or contract provisions. The Company had no discount window borrowings at December 31, 2025 and 2024.
Federal Funds Unsecured Lines of Credit
At December 31, 2025, the Company had four overnight unsecured credit lines from correspondent banks totaling $90.5 million. The lines are subject to annual review. There were no outstanding borrowings under these lines at December 31, 2025 and 2024.
Revolving Line of Credit
The Company assumed a senior revolving line of credit from CALB in connection with the Merger with a commitment of $3.0 million. This facility was secured by 100% of the common stock of the Bank. This revolving line of credit’s interest, due quarterly, was Prime plus 0.40% and matured in November 2024 and was not renewed. The revolving line of credit contained certain financial covenants, including but not limited to, minimum capital, classified asset, non-performing asset, primary and secondary liquidity, and debt service coverage ratios.
Fixed-to-Floating Rate Subordinated Debt
On May 28, 2020, the Company issued $18 million of 5.50% Fixed-to-Floating Rate Subordinated Debt Due 2030 (the “Notes”). The Notes mature March 25, 2030 and accrue interest at a fixed rate of 5.50% through the fixed-rate period to March 26, 2025, after which interest accrues at a floating rate of 90-day Secured Overnight Financing Rate (“SOFR”) plus 3.50%, until maturity, unless redeemed early, at the Company’s option, after the end of the fixed-rate period. Issuance costs of $475 thousand were incurred and are being amortized over the first 5-year fixed term of the Notes; unamortized issuance costs at December 31, 2025 and 2024, were zero and $40 thousand, respectively. The net unamortized issuance costs was netted against the balance and recorded in borrowings in the consolidated balance sheets. The amortization expense was recorded in interest expense in the consolidated statements of income. During the second quarter of 2025, the Company redeemed all $18 million of the subordinated debt at par value.
In connection with the Merger, the Company assumed $20 million in subordinated debt, with a fixed interest rate of 5.00% and a stated maturity of September 30, 2030. Beginning September 30, 2025, the interest rate changes to a quarterly variable rate equal to the then current 90-day SOFR plus 4.88%, until maturity, unless redeemed early, at the Company’s option, after the end of the fixed-rate period. The
subordinated debt was initially recognized with a fair value discount of $794 thousand. At December 31, 2025 and 2024, the net unamortized fair value discount was zero and $509 thousand, respectively. The net unamortized fair value discount was netted against the balance and recorded in borrowings in the consolidated balance sheets. The amortization of the fair value discount was recorded in interest expense in the consolidated statements of income. During the third quarter of 2025, the Company redeemed all $20 million of the subordinated debt at par value.
In addition and in connection with the Merger, the Company assumed an additional $35 million in subordinated debt, with a fixed interest rate of 3.50% and a stated maturity of September 1, 2031. Beginning August 17, 2026, the interest rate changes to a quarterly variable rate equal to the then current 90-day SOFR plus 2.86%, until maturity, unless redeemed early, at the Company’s option, after the end of the fixed-rate period. The subordinated debt was initially recognized with a fair value discount of $3.4 million. At December 31, 2025 and 2024, the net unamortized fair value discount was $1.2 million and $2.7 million, respectively. The net unamortized fair value discount is netted against the balance and recorded in borrowings in the consolidated balance sheets. The amortization of the fair value discount is recorded in interest expense in the consolidated statements of income. At December 31, 2025, the Company was in compliance with all covenants and terms of these notes.
v3.25.4
INCOME TAXES
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company does not have pretax income from continuing foreign operations or foreign tax expense during the years ended December 31, 2025 and 2024. The income tax expense for the years ended December 31, is comprised of the following:

(dollars in thousands)20252024
Current tax expense:
Federal$8,648 $1,290 
State4,769 1,966 
Total current tax expense13,417 3,256 
Deferred tax expense (benefit):
Federal6,997 497 
State4,485 (923)
Total deferred tax expense (benefit)11,482 (426)
Total income tax expense$24,899 $2,830 

The following table presents cash payments for income taxes, net of refunds received, buy jurisdiction for the years ended December 31:

(dollars in thousands)20252024
Federal$4,253 $2,720 
State:
California
5,480 166 
Other states(1)
46 — 
$9,779 $2,886 
(1)Represents states that individually accounted for less than 5% of the total taxes paid, net of refunds received.
A comparison of the federal statutory income tax rates to the Company’s effective income tax rates at December 31 follows:
20252024
(dollars in thousands)AmountRateAmountRate
Statutory federal income tax provision$18,471 21.0 %$1,735 21.0 %
State taxes(1)
7,310 8.3 %824 10.0 %
Tax credits:
Net expense (benefit) related to tax credit equity investment(516)(0.6)%21 0.3 %
Nontaxable or nondeductible items:
Bank owned life insurance(490)(0.6)%(367)(4.4)%
Tax exempt interest income(94)(0.1)%(218)(2.6)%
Excess executive compensation378 0.4 %533 6.4 %
Merger expenses— — %374 4.5 %
Other152 0.2 %100 1.1 %
Other adjustments:
Employee stock-based compensation(307)(0.3)%(103)(1.3)%
Other(5)— %(69)(0.8)%
$24,899 28.3 %$2,830 34.2 %
(1)State taxes in California made up the majority (greater than 50%) of the tax effect in this category.

The Company is subject to federal income and California franchise tax, as well as various immaterial states taxes. Income tax returns for the years ended after December 31, 2021 are open to audit by federal authorities and income tax returns for the years ending after December 31, 2020 are open to audit by California authorities. Other states vary, but generally income tax returns for the years ending after December 31, 2020 are subject to examination by those state authorities. There were no interest and penalties related to unrecognized tax benefits in income tax expense at December 31, 2025 and 2024. The total amount of unrecognized tax benefits was zero at December 31, 2025 and 2024.
Deferred taxes are a result of differences between income tax accounting and generally accepted accounting principles with respect to income and expense recognition. At December 31, 2025 and 2024, after considering all available positive and negative evidence, management concluded that a valuation allowance against deferred tax assets was not necessary because it is more likely than not that these tax benefits will be fully realized in future periods. The following is a summary of the components of the net deferred tax asset accounts recognized in the accompanying consolidated balance sheets at December 31:
(dollars in thousands)20252024
Deferred tax assets:
   Allowance for loan losses$9,895 $14,860 
   Organizational expenses89 102 
   Stock-based compensation1,383 1,626 
   Fair value adjustment on acquired loans8,894 16,833 
   Net operating loss carryforward8,050 8,939 
   Accrued expenses1,882 1,253 
   Deferred compensation2,165 1,997 
   California franchise tax1,004 412 
(dollars in thousands)20252024
   Depreciation differences
47 297 
   Operating Lease liabilities5,455 5,384 
   Unrealized loss on securities available for sale680 2,787 
   Other 1,045 1,535 
Total deferred tax assets40,589 56,025 
Deferred tax liabilities:
   Deferred loan costs(1,236)(1,169)
   Core deposit intangibles(5,589)(6,790)
   Right of use asset(4,348)(4,219)
Other(375)(720)
Total deferred tax liabilities(11,548)(12,898)
Net deferred tax assets$29,041 $43,127 

Section 382 of the Internal Revenue Code imposes an annual limitation on a corporation’s ability to use any net unrealized built-in losses and other tax attributes, such as net operating loss and tax credit carryforwards, when it undergoes a greater than 50% ownership change over a designated testing period not to exceed three years. Deferred tax assets are recognized for net operating losses because the benefit is more likely than not to be realized.
On June 29, 2020, California Assembly Bill 85 (A.B. 85) was signed into law. A.B. 85 suspends the use of the net operating loss (“NOL”) for the 2020, 2021, and 2022 tax years. For NOL incurred in tax years before 2020 for which a deduction is denied, the carryover period is extended by three years. On February 9, 2022, Senate Bill 113 (“S.B. 113”) S.B. 113 was signed into law, and among other changes, S.B. 113 reinstates the California NOL deductions for tax years beginning in 2022, in effect shortening the suspension period for NOL deductions from A.B. 85 by one year. On June 27, 2024, Senate Bill 167 (“S.B. 167”) was signed into law. S.B. 167 suspends the use of the net operating loss (“NOL”) for the 2024, 2025, and 2026 tax years. S.B. 167 includes an extended carryover period for the suspended NOLs with an additional year carryforward for each year of suspension.
As a result of the acquisition of CalWest in 2020, the Company has federal and California Section 382 limited net operating loss carryforwards of approximately $3.9 million and $5.4 million at December 31, 2025, which are scheduled to begin expiring in 2030 for federal and 2034 for California. The federal and California net operating loss carryforwards are subject to annual limitations of $381 thousand each year.
As a result of the merger with CALB completed in 2024, the Company has federal and California Section 382 limited net operating loss carryforwards of approximately $20.8 million and $28.1 million at December 31, 2025. The federal and California net operating loss carryforwards are subject to annual limitations of $7.8 million each year. Other state acquired net operating losses are immaterial to the consolidated financial statements at December 31, 2025. The Company expects to fully utilize the recorded federal, California, and other state net operating loss carryforwards before they expire.
v3.25.4
EARNINGS PER SHARE (“EPS”)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
EARNINGS PER SHARE (“EPS”) EARNINGS PER SHARE (“EPS”)
The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute EPS:

(dollars in thousands, except share and per share data)20252024
Net income$63,058 $5,433 
Weighted average common shares outstanding - basic32,391,016 24,247,064 
Dilutive effect of outstanding:
Stock options and unvested stock grants(1)
355,094 376,333 
Weighted average common shares outstanding - diluted32,746,110 24,623,397 
Earnings per common share - basic$1.95 $0.22 
Earnings per common share - diluted$1.93 $0.22 
(1)The dilutive effect of stock options and unvested stock grants is determined using the treasury method.

For the years ended December 31, 2025 and 2024, there were 5,328 and 97,211 restricted stock units and zero and 1,989 stock options, respectively, that were not included in the computation of diluted earnings per share, because they were anti-dilutive.
v3.25.4
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
In the ordinary course of business, the Company has granted loans to certain directors, their related interests with which they are associated, and beneficial owners with more than 5% of any class of voting securities.
The balance of these loans outstanding and activity in related party loans for the periods ended December 31, 2025 and 2024 follows:

(dollars in thousands)20252024
Balance at beginning of year$27,734 $5,928 
Assumed in the Merger
— 22,523 
Payoffs(1,553)— 
Repayments
(1,738)(717)
Balance at end of year$24,443 $27,734 
Directors and related interests deposits at December 31, 2025 and 2024, amounted to approximately $37.5 million and $62.9 million, respectively.
The Company leases its Ramona branch office from a beneficial owner who holds more than 5% of any class of the Company’s voting securities and is a former member of the Company’s Board of Directors under an operating lease expiring in 2027 on terms considered to be prevailing in the market at the time of the lease. Total lease expense for each of 2025 and 2024 was $44 thousand and $44 thousand and future minimum lease payments under the lease were $62 thousand as of December 31, 2025.
In April 2022, the holding company entered into an investment commitment for $2.0 million with the Castle Creek Launchpad Fund I (“Launchpad”). A director of the Company is a member of the Investment Committee for Launchpad. At December 31, 2025 and 2024, total capital contributions to this investment were $1.5 million and $1.2 million, respectively.
v3.25.4
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
In the ordinary course of business, the Company enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit and standby letters of credit. Those instruments involve to varying degrees, elements of credit and interest rate risk not recognized in the Company’s financial statements.
Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Company evaluates each client’s credit worthiness on a case-by-case basis. Collateral may or may not be required based on management’s credit evaluation of the customer. The majority of the Company’s commitments to extend credit and standby letters of credit are secured by real estate.
The Company’s exposure to loan loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for loans reflected in the consolidated financial statements.

The Company had the following outstanding financial commitments whose contractual amount represents potential credit risk at December 31:

(dollars in thousands)20252024
Commitments to extend credit$877,525 $925,076 
Letters of credit issued to customers23,589 16,147 
Commitments to contribute capital to other equity investments7,859 5,914 
$908,973 $947,137 

The Company entered into Supplemental Executive Retirement Plan (“SERP”) agreements to provide a 10-year benefit to certain key officers upon their retirement. Under these agreements, annual benefits range from $20 thousand to $75 thousand. In connection with the Merger, the Company assumed all SERP agreements from CALB, under the same terms and conditions, with the exception of the Chief Executive Officer whose maximum “targeted benefit amount” increased from 25% to 30% of the average of his three highest calendar years of base salary as part of his employment agreement with the Company. In connection with the retirement of the Company’s former CEO and the related Transition and Separation Agreement, $336 thousand benefits under the SERP were accelerated on December 31, 2025, resulting in a total SERP liability of $2.1 million.The estimated present value of future benefits to be paid is being accrued over the period from the effective date of the agreements until the expected retirement dates of the participants. The expense incurred for these agreements in 2025 and 2024 was $1.3 million and $746 thousand, respectively. The Company is a beneficiary of life insurance policies that have been purchased as a method of financing the obligated benefits under these agreements.
In the normal course of business, the Company is named or threatened to be named as a defendant in various legal actions. The ultimate outcome with respect to these legal matters and claims cannot be determined. At this time, the Company believes that liability, if any, is not likely to be material to the consolidated balance sheets or consolidated statements of income.
v3.25.4
STOCK-BASED COMPENSATION PLAN
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION PLAN STOCK-BASED COMPENSATION PLAN
In contemplation of the holding company reorganization, in November 2019 the Company’s Board of Directors adopted the Southern California Bancorp 2019 Omnibus Equity Incentive Plan (the “2019 Plan”). The 2019 Plan was approved by shareholders in April 2020 with a maximum number of shares of common stock that may be issued or paid out under the plan of 2,200,000. In addition, upon the completion of the bank holding company reorganization in 2020, the Bank’s 2001 Stock Option Plan and 2011 Omnibus Equity Incentive Plan were terminated and all outstanding and unexpired stock options and all shares of restricted stock outstanding under the terminated plans became equivalent awards of the Company under the 2019 Plan.
In October 2020, the maximum number of shares under the 2019 Plan was increased by 300,000 to 2,500,000. In June 2021, the maximum number of shares under the 2019 Plan was increased by 900,000 to 3,400,000.
In addition, the 2019 Plan permits the Company to grant additional stock options and restricted share units. The Plan provides for the granting to eligible participants such incentive awards as the Board of Directors or a committee established by the Board, in its sole discretion, to administer the Plan. The Board has the power to determine the terms of the awards, including the exercise price, the number of shares subject to each award, the vesting and exercisability of the awards and the form of consideration payable upon exercise. Stock options expire no later than ten years from the date of the grant. The 2019 Plan provides for accelerated vesting if there is a change of control, as defined in the Plan. Restricted stock units generally vest over a period of one to five years.
Future levels of compensation cost recognized related to stock-based compensation awards may be impacted by new awards and/or modifications, repurchases and cancellations of existing awards. Under the terms of the 2019 Plan, vested options generally expire ninety days after the director or employee terminates their service affiliation with the Company.
In connection with the Merger, each of the 185,878 outstanding, unvested restricted stock units granted to the continuing directors, executives and employees under CALB’s Amended and Restated 2017 Equity Incentive Plan were converted into 295,512 unvested restricted stock units of the Company. Each such converted restricted stock unit award continues to be subject to the same terms and conditions as were applicable to the corresponding CALB restricted stock unit award immediately prior to the Merger. The weighted average remaining term on these assumed restricted stock units was 4.0 years, ranging from two months to 5.0 years. All outstanding unvested CALB restricted stock units of 77,436 shares in aggregate that were held by employees who are not continuing directors, executives and employees were accelerated and became fully vested and converted automatically into the right to receive approximately 82,364 shares of the Company’s common stock after 25,635 of CALB shares were surrendered by certain executives and employees to pay for taxes at the effective time of the Merger.
For the year ended December 31, 2025, total stock-based compensation cost related to stock options and restricted shares units was $5.8 million. For the year ended December 31, 2024, total stock-based compensation cost related to stock options and restricted shares units was $6.2 million. Included in this amount was $1.1 million related to the acceleration of vesting for replacement awards issued in connection with the Merger to non-continuing directors, executives and employees.
Stock Options

As of December 31, 2025, there was $9 thousand of total unrecognized compensation cost related to the outstanding stock options to be recognized over a period of 0.9 years. There were 18,013 and 112,275 stock options exercised with the intrinsic value of $146 thousand and $788 thousand in 2025 and
2024, respectively. There were approximately $406 thousand in related tax benefits for the disqualifying disposition of incentive stock options (“ISO”) exercised for the year ended December 31, 2025. There were $72 thousand related tax expense for non-qualified stock option exercised for the year ended December 31, 2024. There were no disqualifying disposition of ISO exercised during the year ended December 31, 2024.
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. There were no options granted during the years ended December 31, 2025 and 2024.
A summary of changes in outstanding stock options during the years ended December 31, 2025 and 2024 are presented below:
(dollars in thousands, except share data)SharesWeighted
Average
Exercise
Price
Weighted Average Remaining Contractual TermAggregate Intrinsic
Value
December 31, 2025
Outstanding at beginning of year136,888 $9.64 
Granted— $— 
Exercised(18,013)$7.34 
Expired— $— 
Forfeited — $— 
Outstanding at end of year118,875 $9.98 2.0 Years$1,033 
Options exercisable117,325 $9.97 2.0 Years$1,021 

(dollars in thousands, except share data)SharesWeighted
Average
Exercise
Price
Weighted Average Remaining Contractual TermAggregate Intrinsic
Value
December 31, 2024
Outstanding at beginning of year272,813 $9.30 
Granted— $— 
Exercised(112,275)$8.47 
Expired(750)$5.93 
Forfeited (22,900)$11.48 
Outstanding at end of year136,888 $9.64 2.8 Years$945 
Options exercisable132,388 $9.61 2.7 Years$918 
Restricted Stock Units

A summary of the changes in outstanding unvested restricted stock units during the years ended December 31, 2025 and 2024 is presented below:

December 31, 2025
Restricted
Shares
Weighted Average Grant Date Fair Value
Unvested at beginning of year1,048,899 $14.73 
Granted201,139 $15.71 
Vested(503,406)$13.92 
Forfeited (32,727)$16.12 
Unvested at end of year713,905 $15.51 


December 31, 2024
Restricted
Shares
Weighted Average Grant Date Fair Value
Unvested at beginning of year637,899 $13.11 
Granted(1)
958,016 $15.49 
Vested(2)
(430,179)$13.78 
Forfeited (116,837)$15.69 
Unvested at end of year1,048,899 $14.73 
(1)Includes 418,634 shares granted as replacement awards to continuing and non-continuing directors, executives and employees in connection with the Merger for the year ended December 31, 2024. The fair value of these replacement awards attributable to post-combination vesting a) will be recognized over the remaining vesting period for continuing directors, executives and employees and b) was immediately recognized for non-continuing directors, executives and employees as components of compensation expense.
(2)Includes the discretionary vesting of 123,123 replacement awards issued in connection with the Merger for non-continuing directors, executives and employees for the year ended December 31, 2024.
As of December 31, 2025, there was $7.7 million of total unrecognized compensation expense related to the outstanding restricted stock units that will be recognized over the weighted-average period of 2.7 years. The total grant date fair value of restricted stock units vested during 2025 and 2024 was $7.0 million and $5.9 million, respectively. Related tax benefits were approximately $19 thousand and $307 thousand for the years ended December 31, 2025 and 2024, respectively.
v3.25.4
SHAREHOLDERS' EQUITY
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
SHAREHOLDERS' EQUITY SHAREHOLDERS’ EQUITY
Common Stock Repurchase Plan
On June 14, 2023, the Company announced an authorized share repurchase plan, providing for the repurchase of up to 550,000 shares of the Company’s outstanding common stock, or approximately 3% of its then outstanding shares. On May 1, 2025 the Company announced an increase in the number of shares authorized for repurchase to up to 1,600,000 shares. Repurchases under the program may occur from time to time in open market transactions, in privately negotiated transactions, or by other means in
accordance with federal securities laws and other restrictions. The Company intends to fund its repurchases from available working capital and cash provided by operating activities. The timing of repurchases, as well as the number of shares repurchased, will depend on a variety of factors, including price; trading volume; business, economic and general market conditions; and the terms of any Rule 10b5-1 plan adopted by the Company. The repurchase program has no expiration date and may be suspended, modified, or terminated at any time without prior notice.
There were 211,928 shares repurchased at a weighted average market price of $15.89 and a total cost of $3.4 million under this share repurchase plan during the year ended December 31, 2025. The remaining maximum number of shares authorized to be repurchased under this program was 1,388,072 shares at December 31, 2025.
During the third quarter of 2024, the Company issued 13,579,454 shares of common stock, including net shares for the settlement of accelerated restricted stock units, in connection with the Merger (refer to Note 2 - Business Combinations for additional information).
v3.25.4
REGULATORY MATTERS
12 Months Ended
Dec. 31, 2025
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
REGULATORY MATTERS REGULATORY MATTERS
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Prior to the merger with CALB during the third quarter of 2024, the Company qualified for treatment under the Small Bank Holding Company Policy Statement (Regulation Y, Appendix C) and, therefore, was not subject to consolidated capital rules at the bank holding company level. Beginning in the third quarter of 2024, the Company became subject to the consolidated capital rules at the bank holding company level.
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of their respective assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. These capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Company and Bank also elected to exclude the effects of credit loss accounting under CECL from common equity Tier 1 capital ratio for a three-year transitional period.
For a bank holding company and bank to be considered to be “adequately capitalized” it is required to maintain a minimum total capital ratio of 8.0%, a minimum Tier 1 capital ratio of 6.0%, a minimum common equity Tier 1 capital ratio of 4.5%, and a minimum leverage ratio of 4.0%. For a holding company and bank considered to be “well capitalized,” it must maintain a minimum total capital ratio of 10.0%, a minimum Tier 1 capital ratio of 8.0%, a minimum common equity Tier 1 capital ratio of 6.5%, and a minimum leverage ratio of 5.0%. As of December 31, 2025 and 2024, the Company’s and the Bank’s regulatory capital ratios exceeded the regulatory capital requirements to be considered “well capitalized” under the regulatory framework for prompt corrective action (“PCA”). Management believes, as of December 31, 2025 and 2024, that the Company and the Bank met all capital adequacy requirements to which we are subject.
Basel III, the comprehensive regulatory capital rules for U.S. banking organizations, requires all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively comprised of common equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not to the leverage ratio. Effective January 1, 2019, the capital conservation buffer increased by 0.625% to its fully phased-in 2.5%, such that the common equity Tier 1, Tier 1 and total capital ratio minimums
inclusive of the capital conservation buffers were 7.0%, 8.5%, and 10.5% at December 31, 2025. At December 31, 2025, the Company and the Bank were in compliance with the capital conservation buffer requirements. To be categorized as “well-capitalized,” the Company and the Bank must maintain minimum ratios as set forth in the table below.
The following table also sets forth the Bank’s actual capital amounts and ratios:
Amount of Capital Required
To beTo be Well-
AdequatelyCapitalized under
ActualCapitalizedPCA Provisions
(dollars in thousands)AmountRatioAmountRatioAmountRatio
As of December 31, 2025:
California BanCorp:
Total Capital (to Risk-Weighted Assets)$519,772 14.86 %$279,836 8.0 %N/AN/A
Tier 1 Capital (to Risk-Weighted Assets)451,511 12.91 %209,877 6.0 %N/AN/A
CET1 Capital (to Risk-Weighted Assets)451,511 12.91 %157,408 4.5 %N/AN/A
Tier 1 Capital (to Average Assets)451,511 11.27 %160,304 4.0 %N/AN/A
California Bank of Commerce, N.A.:
Total Capital (to Risk-Weighted Assets)$497,919 14.24 %$279,707 8.0 %$349,634 10.0 %
Tier 1 Capital (to Risk-Weighted Assets)463,490 13.26 %209,780 6.0 %279,707 8.0 %
CET1 Capital (to Risk-Weighted Assets)463,490 13.26 %157,335 4.5 %227,262 6.5 %
Tier 1 Capital (to Average Assets)463,490 11.57 %160,210 4.0 %200,262 5.0 %
As of December 31, 2024:
California BanCorp:
Total Capital (to Risk-Weighted Assets)$496,912 13.67 %$290,897 8.0 %N/AN/A
Tier 1 Capital (to Risk-Weighted Assets)$385,354 10.60 %$218,173 6.0 %N/AN/A
CET1 Capital (to Risk-Weighted Assets)$385,354 10.60 %$163,630 4.5 %N/AN/A
Tier 1 Capital (to Average Assets)$385,354 9.53 %$161,710 4.0 %N/AN/A
California Bank of Commerce, N.A.:
Total Capital (to Risk-Weighted Assets)$492,433 13.55 %$290,753 8.0 %$363,441 10.0 %
Tier 1 Capital (to Risk-Weighted Assets)450,600 12.40 %218,065 6.0 %290,753 8.0 %
CET1 Capital (to Risk-Weighted Assets)450,600 12.40 %163,548 4.5 %236,237 6.5 %
Tier 1 Capital (to Average Assets)450,600 11.15 %161,689 4.0 %202,111 5.0 %

The primary source of funds for the Company is dividends from the Bank. During the years ended December 31, 2025 and 2024, dividends paid by the Bank to the Company were $60.0 million and zero, respectively. Under federal law, the Bank may not declare a dividend in excess of its undivided profits and, absent the approval of the OCC, the Bank’s primary banking regulator, if the total amount of dividends declared by the Bank in any calendar year exceeds the total of the Bank’s retained net income of that current period, year to date, combined with its retained net income for the preceding two years. The Bank is also prohibited from declaring or paying any dividend if, after making the dividend, the Bank would be considered “undercapitalized” (as defined by reference to other OCC regulations). Federal bank
regulatory agencies have authority to prohibit banking institutions from paying dividends if those agencies determine that, based on the financial condition of the bank, such payment will constitute an unsafe or unsound practice.
The Federal Reserve limits the amount of dividends that bank holding companies may pay on common stock to income available over the past year, and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. It is also the Federal Reserve’s policy that bank holding companies should not maintain dividend levels that undermine their ability to be a source of strength to its banking subsidiaries. Additionally, in consideration of the current financial and economic environment, the Federal Reserve has indicated that bank holding companies should carefully review their dividend policies.
v3.25.4
FAIR VALUE
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has
the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar
assets or liabilities; quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a Company’s own assumptions about the
assumptions that market participants would use in pricing an asset or liability.

Fair value of financial instruments

Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business, and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments:

Cash and Due from Banks: The carrying amounts of cash and short-term instruments approximate fair values because of the liquidity of these instruments.
Federal Funds Sold and Interest-Bearing Balances: The carrying amount is assumed to be the fair value given the short-term nature of these deposits.
Debt Securities Held to Maturity and Available for Sale: The fair values of securities held to maturity and available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.
Loans Held for Sale: The fair value of loans held-for-sale is based on commitments outstanding from investors as well as what secondary market investors are currently offering for portfolios with similar characteristics.

Loans Held for Investment, net: The fair value of loans, which is based on an exit price notion, is generally determined using an income based approach based on discounted cash flow analysis. This approach utilizes the contractual maturity of the loans and market indications of interest rates, prepayment speeds, defaults and credit risk in determining fair value. The fair value for PCD loans incorporated market-based loss rates used to estimated expected life of loan credit losses. The noncredit discount resulting from the acquired PCD loans was allocated to each individual asset. If an individually evaluated loan has had a charge-off or if the fair value of the collateral is less than the recorded investment in the loan, we establish a specific reserve and report the loan as nonrecurring Level 3. Loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. For the fair value of collateral-dependent individually evaluated loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral based on recent real estate appraisals, less costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. New appraisals in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.
Restricted Stock Investments: Investments in FHLB and Federal Reserve stocks are recorded at cost and measured for impairment. Ownership of FHLB and Federal Reserve stocks are restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB and Federal Reserve stock is equal to the carrying amount.
Other Equity Securities: The fair value of equity securities is based on quoted prices in active markets for identical assets to determine the fair value. If quoted prices are not available to determine fair value, the Company estimates the fair values by using independent pricing models, quoted prices of securities with similar characteristics, or discounted cash flows.
Other Real Estate Owned: Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of the carrying amount or fair value, less costs to sell. The fair value of OREO is generally based on recent real estate appraisals or broker opinions, obtained from independent third parties, which are frequently adjusted by management to reflect current conditions and estimated selling costs.
Accrued Interest Receivable: The fair value of accrued interest receivable approximates their carrying amounts.
Deposits: The fair values disclosed for demand deposits, including interest and non-interest demand accounts, savings, and certain types of money market accounts are, by definition based on
carrying value. Fair value for fixed-rate certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities on time deposits. Early withdrawal of fixed-rate certificates of deposit is not expected to be significant.
Borrowings: The fair value of fixed-rated term borrowings is estimated using a discounted cash flow through the remaining maturity dates based on the current borrowing rates for similar types of borrowing arrangements. The fair values of subordinated debt and notes are based on rates currently available to the Company for debt with similar terms and remaining maturities.
Accrued Interest Payable: The fair value of accrued interest payable approximates the carrying amounts.
Off-Balance Sheet Financial Instruments: The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. The fair value of these financial instruments is not material.
The estimated fair value hierarchy level and estimated fair value of financial instruments at December 31, 2025 and 2024, is summarized as follows:

20252024
EstimatedEstimated
Fair ValueCarryingFairCarryingFair
(dollars in thousands)HierarchyValueValue ValueValue
Financial assets:
Cash and due from banksLevel 1$52,013 $52,013 $60,471 $60,471 
Federal funds and interest-bearing balances
Level 1347,900 347,900 327,691 327,691 
Debt securities available for saleLevel 1/2234,890 234,890 142,001 142,001 
Debt securities held to maturityLevel 252,936 49,308 53,280 47,823 
Loans held for saleLevel 225,105 25,566 17,180 17,855 
Loans held for investment, netLevel 32,999,539 3,000,768 3,088,625 3,080,175 
Restricted stock, at costLevel 230,932 30,932 30,829 30,829 
Other equity securitiesLevel 214,760 14,760 13,691 13,691 
Accrued interest receivableLevel 211,115 11,115 12,824 12,824 
Financial liabilities:
DepositsLevel 23,370,581 3,370,456 3,398,760 3,398,447 
BorrowingsLevel 233,832 34,149 69,725 69,876 
Accrued interest payableLevel 2679 679 4,342 4,342 
Recurring fair value measurements

The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024:

Recurring Fair Value Measurements
(dollars in thousands)Level 1Level 2Level 3Total
December 31, 2025
Securities available for sale:
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities$— $161,016 $— $161,016 
SBA securities— 3,816 — 3,816 
U.S. Treasury2,472 — — 2,472 
U.S. Agency— 1,793 — 1,793 
Collateralized mortgage obligations— 64,855 — 64,855 
Taxable municipals
— 938 — 938 
$2,472 $232,418 $— $234,890 
December 31, 2024
Securities available for sale:
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities$— $83,274 $— $83,274 
SBA securities— 5,333 — 5,333 
U.S. Treasury12,326 — — 12,326 
U.S. Agency— 1,670 — 1,670 
Collateralized mortgage obligations— 37,663 — 37,663 
Taxable municipals
— 909 — 909 
Tax exempt bank-qualified municipals— 826 — 826 
$12,326 $129,675 $— $142,001 

Nonrecurring fair value measurements

The Company may also be required, from time to time, to measure certain other assets and liabilities on a nonrecurring basis in accordance with generally accepted accounting principles.
Collateral-dependent loans. For the valuation of the collateral-dependent loans, the Company relies primarily on third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. Depending on the type of underlying collateral, valuations may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.
At December 31, 2025, the Company’s individual evaluated collateral-dependent loans were evaluated based on the estimated fair value of the underlying collateral from the Company’s internal reviews, including reviews of the most recent appraisals and the current sale market condition. There
were $83 thousand partial charge-offs on certain individually evaluated loans based on recent real estate or property appraisals and $373 thousand related reserves were recorded during the year ended December 31, 2025.
At December 31, 2024, the Company took a partial charge-off of $967 thousand on the individually evaluated loans in 2024.
Other real estate owned, net. Subsequent to foreclosure, it may be necessary to record nonrecurring fair value adjustments for declines in fair value of OREO. Fair value, when recorded, is determined based on appraisals by qualified licensed appraisers and adjusted for management’s estimates of costs to sell. Accordingly, values for OREO are classified as Level 3.
The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2025.
Fair Value Measurement Level
Quoted Prices in
Active Markets forSignificant OtherSignificant
FairIdentical AssetsObservable InputsUnobservable Inputs
(dollars in thousands)Value(Level 1)(Level 2)(Level 3)
December 31, 2025
Collateral dependent loans (1):
Construction and Land$13,908 $— $— $13,908 
1-4 Family Residential— — — — 
Multifamily Residential— — — — 
Commercial real estate and other— — — — 
Commercial and industrial— — — — 
Total collateral dependent loans
$13,908 $— $— $13,908 
December 31, 2024
Collateral dependent loans (1):
Construction and Land$9,708 $— $— $9,708 
1-4 Family Residential4,191 — — 4,191 
Commercial real estate and other14,316 — — 14,316 
Commercial and industrial6,476 — — 6,476 
Total collateral dependent loans
$34,691 $— $— $34,691 
Foreclosed assets:
Other real estate owned, net$4,083 $— $— $4,083 
(1) Collateral-dependent loans whose fair value is based upon appraisals.
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis are summarized below as of December 31, 2025. The balance as of December 31, 2024 included $20.8 million in PCD loans.
Asset FairValuationUnobservableRange %
(dollars in thousands)ValueTechniqueInput(Weighted Average)
December 31, 2025
Collateral dependent loans
Construction and Land$9,281 Fair value of propertyCost to sell
7.19% – 7.19% (7.19%)
4,627 Fair value of landCost to sell
7.64% - 7.64% (7.64%)
Total collateral dependent loans$13,908 
December 31, 2024
Collateral dependent loans
Construction and Land$9,708 Fair value of propertyCost to sell
7.50%-7.50% (7.50%)
1-4 Family Residential4,191 Fair value of propertyCost to sell
7.50%-7.50% (7.50%)
Commercial real estate and other14,316 Fair value of propertyDiscount to appraised values
18.13%-30.00% (19.70%)
Costs to sell
7.50%-7.50% (7.50%)
14,316 
Commercial and industrial5,582 Fair value of collateralDiscount to appraised values
20.00%-60.00% (27.37%)
Costs to sell
7.50%-7.50% (7.50%)
894 Fair value of propertyCosts to sell
8.00%-10.00% (8.62%)
6,476 
Total collateral dependent loans$34,691 
Other real estate owned, net$4,083 Market approachCost to sell
7.50%-7.50% (7.50%)
v3.25.4
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY
12 Months Ended
Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract]  
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY
California BanCorp was organized in 2020 to serve as the holding company for California Bank of Commerce, N.A., its wholly owned subsidiary. The earnings of the subsidiary are recognized using the equity method of accounting. The following tables present the parent company only condensed balance sheets at December 31, 2025 and 2024 and the related condensed statements of income and condensed statements of cash flows for the years ended December 31, 2025 and 2024.
California BanCorp (Parent Company Only)
CONDENSED BALANCE SHEETS

December 31,
(dollars in thousands)20252024
ASSETS
Cash $21,377 $4,098 
Investment in bank Subsidiary
591,819 577,083 
Other investments2,005 1,610 
Accrued interest and other assets380 
Total assets$615,209 $583,171 
LIABILITIES
Subordinated debt and other borrowings$33,832 $69,725 
Accrued interest and other liabilities4,791 1,610 
Total liabilities38,623 71,335 
SHAREHOLDERS’ EQUITY
   Common stock 442,394 442,469 
   Retained earnings 135,813 76,008 
   Accumulated other comprehensive loss, net of taxes
(1,621)(6,641)
Total shareholders’ equity576,586 511,836 
Total liabilities and shareholders’ equity$615,209 $583,171 

California BanCorp (Parent Company Only)
CONDENSED STATEMENTS OF INCOME
Year Ended December 31,
(dollars in thousands)20252024
INCOME
Other interest and dividends$11 $— 
Dividends from bank subsidiary60,000 — 
Total income60,011 — 
EXPENSES
Interest on borrowings4,628 2,950 
Other noninterest expense463 535 
Total expenses5,091 3,485 
Income (loss) before income taxes54,920 (3,485)
Income tax benefit
1,581 1,071 
Income (loss) before equity in undistributed earnings of bank subsidiary56,501 (2,414)
Equity in undistributed earnings of bank subsidiary
6,557 7,847 
Net income$63,058 $5,433 
California BanCorp (Parent Company Only)
CONDENSED STATEMENTS OF CASH FLOWS

Year Ended December 31,
(dollars in thousands)20252024
OPERATING ACTIVITIES
Net Income$63,058 $5,433 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of debt issuance costs and discounts
2,107 1,028 
Equity in undistributed earnings of bank subsidiary(6,557)(7,847)
Other items 3,549 (168)
Net cash provided by (used in) operating activities62,157 (1,554)
INVESTING ACTIVITIES
Net purchase of other equity investments(391)(329)
Cash acquired in business combination
— 1,445 
Net cash (used in) provided by investing activities(391)1,116 
FINANCING ACTIVITIES
Repayment of subordinated debt(38,000)— 
Repurchases of common shares(3,366)— 
Common stock dividends(3,253)— 
Proceeds from exercise of stock options132 950 
Net cash (used in) provided by financing activities(44,487)950 
Increase in cash and cash equivalents
17,279 512 
Cash and cash equivalents, beginning of year4,098 3,586 
Cash and cash equivalents, end of year$21,377 $4,098 
v3.25.4
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
On March 12, 2026, the Company declared a $0.10 cash dividend payable on April 15, 2026 to shareholders of record as of March 24, 2026.
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management and Strategy
The Company implements a comprehensive Information Security Program (“Program”) to safeguard data confidentiality, integrity, and availability. The Program leverages recognized frameworks like National Institute of Standards and Technology (or “NIST”) and Federal Financial Institutions Examination Council (“FFIEC”) to identify, prevent, and mitigate cybersecurity threats. Regular assessments and updates ensure the Program's effectiveness in managing and reducing risk.
The Program integrates seamlessly with the Company's enterprise risk management program. Continuous threat and vulnerability assessments inform system and control updates, effectively mitigating risks. Layered security controls work together to protect customer information and transactions. Additionally, third-party experts conduct periodic program evaluations through penetration testing, audits, and best practice consultations, with results driving program improvement initiatives. As a regulated entity, the Bank undergoes regular bank regulatory examinations evaluating the information security program and its compliance with federal regulations.
The Company's third-party risk management program oversees and identifies cybersecurity threats associated with service providers. While visibility into third-party operations is limited, risk-based evaluations are conducted. These evaluations involve reviewing security assessment questionnaires, testing summaries, audit reports, and information security policies.
Recognizing the importance of continuous security awareness, the Company provides comprehensive employee training. This includes mandatory cybersecurity and fraud training at onboarding, monthly email phishing tests, and annual computer-based training.
In addition, the Company has an incident response plan (“IRP”) that is activated if an event is identified by information technology or information security team or one of our third party vendors. The Company’s Information Security Officer (“ISO”) would activate the IRP and communicate with the team members in accordance with the IRP. If the incident is material, the Chief Risk Officer would disclose the incident to the management Disclosure Control Committee.
While no material cybersecurity incidents have been identified during the reported fiscal year, the Company acknowledges the ongoing and evolving nature of cyber threats and remains vigilant in its efforts to defend against them.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
The Company implements a comprehensive Information Security Program (“Program”) to safeguard data confidentiality, integrity, and availability. The Program leverages recognized frameworks like National Institute of Standards and Technology (or “NIST”) and Federal Financial Institutions Examination Council (“FFIEC”) to identify, prevent, and mitigate cybersecurity threats. Regular assessments and updates ensure the Program's effectiveness in managing and reducing risk.
The Program integrates seamlessly with the Company's enterprise risk management program. Continuous threat and vulnerability assessments inform system and control updates, effectively mitigating risks. Layered security controls work together to protect customer information and transactions. Additionally, third-party experts conduct periodic program evaluations through penetration testing, audits, and best practice consultations, with results driving program improvement initiatives. As a regulated entity, the Bank undergoes regular bank regulatory examinations evaluating the information security program and its compliance with federal regulations.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] The Company's internal controls incorporate a protocol for reporting and escalating information security matters to management and the Board of Directors for resolution and, if necessary, disclosure of any material incidents. The Board oversees continuous efforts to strengthen operational resilience and receives ongoing education to enhance their oversight capabilities in the face of evolving threats
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
The Board of Directors provides ultimate oversight and monitoring of the Program and its policies. The ARC Committee oversees areas like information technology activities, cybersecurity-related risks, and disaster recovery processes. Additionally, management-level technology and security personnel oversee program management and related assessments, while operational committees manage specific cybersecurity-related risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] who reports directly to the Chief Risk Officer, periodically updates the Company’s management Information Technology Committee, the Company’s Audit and Risk Committee (“ARC Committee”) and the Board of Directors on information and cybersecurity risks, threats, exposures, and mitigation measures.
Cybersecurity Risk Role of Management [Text Block] The ISO, who reports directly to the Chief Risk Officer, periodically updates the Company’s management Information Technology Committee, the Company’s Audit and Risk Committee (“ARC Committee”) and the Board of Directors on information and cybersecurity risks, threats, exposures, and mitigation measures. The Company's IRP is regularly tested, incorporating cybersecurity scenarios.
The ISO leads program development, implementation, and reporting to the Board. The ISO possesses extensive experience with over 25 years of securing information systems and data, and holds many industry certifications including Microsoft Certified Software Engineer + Security, Exchange Security, Comptia Security+, Pentest+, Cyber Security Analyst(CYSA+), Cisco Certified Network Admin + Security enhancement, Cisco Certified Design architect and Certified Ethical Hacker. Recognizing cybersecurity as a shared responsibility, the Company conducts periodic management-level simulations and tabletop exercises with external resources and advisors as needed.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] The ISO, who reports directly to the Chief Risk Officer, periodically updates the Company’s management Information Technology Committee, the Company’s Audit and Risk Committee (“ARC Committee”) and the Board of Directors on information and cybersecurity risks, threats, exposures, and mitigation measures. The Company's IRP is regularly tested, incorporating cybersecurity scenarios.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The ISO possesses extensive experience with over 25 years of securing information systems and data, and holds many industry certifications including Microsoft Certified Software Engineer + Security, Exchange Security, Comptia Security+, Pentest+, Cyber Security Analyst(CYSA+), Cisco Certified Network Admin + Security enhancement, Cisco Certified Design architect and Certified Ethical Hacker.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] who reports directly to the Chief Risk Officer, periodically updates the Company’s management Information Technology Committee, the Company’s Audit and Risk Committee (“ARC Committee”) and the Board of Directors on information and cybersecurity risks, threats, exposures, and mitigation measures.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-K and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for financial reporting.
Principles of Consolidation
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates in the Preparation of Consolidated Financial Statements
Use of Estimates in the Preparation of Consolidated Financial Statements

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change are the determination of the allowance for credit losses, the fair value of assets and liabilities acquired in business combinations and related purchase price allocation, the valuation of acquired loans, the valuation of goodwill and separately identifiable intangible assets associated with mergers and acquisitions, loan sales and servicing of financial assets and deferred tax assets and liabilities.
Operating Segments
Operating Segments

We operate one reportable segment — commercial banking. The Company has one reporting unit, one operating segment and, consequently, a single reportable segment. The Company’s CODM is a role shared by three executive officers, the Chairman and Chief Executive Officer, President of the Company and Bank, and Chief Financial Officer of the Company and Chief Strategy Officer of the Bank. The Company’s CODM monitors revenue streams and other information regarding the products and services offered through the Company’s banking operations. The information provided to the CODM is presented on an aggregated single segment level basis, which is consistent with the accompanying consolidated financial statements presented in this Annual Report on Form 10-K. The CODM evaluates the financial performance of the Company’s business by evaluating revenue streams, significant expenses, and comparing budgeted to actual results in assessing operating results and in allocating resources, with profitability only determined at a single segment level. The CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The CODM uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis, coupled with the monitoring of budgeted to actual results, is used in assessing performance and allocating resources. Loans, investments, and deposits provide the revenues from the Company's operations. Interest expense, provisions for credit losses, salaries and benefits, and occupancy expenses represent the significant expenses in the Company's operations. All of the Company's income and expenses are included in the accompanying consolidated statements of income presented in this Annual Report on Form 10-K. All of the Company’s operations are domestic. The Company’s assets are reflected in the accompanying consolidated balance sheet as “total assets.”
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents include cash and due from banks, and federal funds sold and interest-bearing balances with other financial institutions represent primarily cash held at the Federal Reserve Bank of San Francisco and an FDIC insured bank. The Board of Governors of the Federal Reserve System (“Federal Reserve”) has cash reserve requirements for depository institutions based on the amount of deposits held. At December 31, 2025, the Bank had no required cash balance held by the Federal Reserve. The Company maintains amounts due from banks that exceed federally insured limits. The Company has not experienced any losses in such accounts.
Debt Securities
Debt Securities
Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Debt securities classified as held-to-maturity securities are carried at amortized cost. Debt securities classified as “available-for-sale” may be sold prior to maturity
due to changes in interest rates, prepayment risks, and availability of alternative investments, or to meet our liquidity needs. Debt securities not classified as held-to-maturity securities nor as available-for-sale securities are classified as trading securities. Available-for-sale debt securities and trading debt securities are recorded at fair value. Unrealized gains or losses on available-for-sale securities are excluded from net income and reported as an amount net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Premiums or discounts, including fair value adjustments as a result of business combinations, on held-to-maturity and available-for-sale debt securities are amortized or accreted into income using the interest method. Realized gains or losses on sales of held-to-maturity or available-for-sale securities are recorded using the specific identification method. Debt securities held-to-maturity and available-for-sale are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When debt securities held-to-maturity and available-for-sale are placed on nonaccrual status, unpaid interest recognized as interest income is reversed.
Allowance for Credit Losses - Held-to-Maturity Debt Securities, Available-for-Sale Debt Securities, Acquired Debt Securities, Loans, Acquired Loans, and Off-Balance Sheet Credit Exposures
Allowance for Credit Losses — Held-to-Maturity Debt Securities
An ACL is established for losses on held-to-maturity debt securities at the time of purchase or designation and is updated each period to reflect management’s expectations of CECL as of the date of the consolidated balance sheets. The ACL is estimated collectively for groups of debt securities with similar risk characteristics, and is determined at the individual security level when the Company deems a security to no longer possess shared risk characteristics. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. For debt securities where the Company has reason to believe the credit loss exposure is remote, a zero credit loss assumption is applied. Such debt securities were municipal securities, and historically have had limited credit loss experience. The Company does not anticipate any credit related losses in this investment portfolio. Changes in the ACL on held-to-maturity debt securities are recorded as a component of the (reversal of ) provision for credit losses in the consolidated statements of income. Losses are charged against the ACL when management believes the uncollectibility of a held-to-maturity debt security is confirmed.
Allowance for Credit Losses — Available-for-Sale Debt Securities
For available-for-sale debt securities, the Company evaluates, on an individual basis, whether a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. The portion of the decline attributable to credit losses is recognized through an ACL, and changes in the ACL on available-for-sale debt securities are recorded as a component of the provision for (reversal of) credit losses in the consolidated statements of income. The portion of decline in fair value below the amortized cost basis not attributable to credit is recognized through other comprehensive income (loss), net of applicable taxes.
Allowance for Credit Losses — Acquired Debt Securities
The Company has acquired debt securities through merger or acquisitions. To the extent acquired debt securities have more than insignificant credit deterioration since origination, they are designated as purchased credit-deteriorated (“PCD”) securities. An ACL is determined using the same methodology as with other debt securities. The sum of a PCD security’s fair value and associated ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the debt security is a noncredit discount or premium, which is amortized into interest income over the life of the security. Subsequent changes to the ACL are recorded through provision for credit losses.
Allowance for Credit Losses — Loans
An ACL is the Company’s estimate of expected lifetime credit losses for its loans held for investment at the time of origination or acquisition and is maintained at a level deemed appropriate by management to provide for expected lifetime credit losses in the portfolio. The ACL consists of: (i) a specific allowance established for current expected credit losses on loans individually evaluated, (ii) a quantitative allowance for current expected credit losses based on the portfolio and expected economic conditions over a reasonable and supportable forecast period that reverts back to long-term trends to cover the expected life of the loan, (iii) a qualitative allowance including management judgment to capture factors and trends that are not adequately reflected in the quantitative allowance, and (iv) the ACL for off-balance sheet credit exposure for unfunded loan commitments (described in Allowance for Credit Losses - Off-Balance Sheet Credit Exposure below).
The ACL on loans held for investment represents the portion of the loans’ amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loans’ contractual life. Amortized cost does not include accrued interest, which management elected to exclude from the estimate of expected credit losses. Provision for credit losses for loans held for investment is included in provision for credit losses in the consolidated statements of income. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Subsequent recoveries, if any, are credited to the ACL. Credit losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income.
Estimating expected credit losses requires management to use relevant forward-looking information, including the use of reasonable and supportable forecasts. Pools of loans with similar risk characteristics are collectively evaluated while loans that no longer share risk characteristics with loan pools are evaluated individually. The Company measures the ACL using a discounted cash flow methodology, which utilizes pool-level assumptions and cash flow projections on an individual loan basis, which is then aggregated at the portfolio segment level and supplemented by a qualitative reserve that is applied to each portfolio segment level.
The Company’s loan portfolio consists of the following segments, based on regulatory call codes and related risk ratings:
Construction and land development loans are typically adjustable rate residential and commercial construction loans to builders, developers and consumers, with terms generally limited to 12 to 36 months. These loans generally require payment in full upon the sale or refinance of the property. Construction and development loans generally carry a higher degree of risk because repayment depends on the ultimate completion of the project and usually on the subsequent sale or refinance of the property, unless the project is user-owned which would then convert to a conventional term loan. Specific material risks may include (i) unforeseen delays in the building of the project, (ii) cost overruns or inadequate contingency reserves, (iii) poor management of construction process, (iv) inferior or improper construction techniques, (v) changes in the economic environment during the construction period, (vi) a downturn in the real estate market, (vii) rising interest rates which may impact the sale of the property and its price, and (viii) failure to sell or stabilize completed projects in a timely manner. The Company attempts to reduce risks associated with construction and land development loans by obtaining personal guarantees and by keeping the maximum loan-to-value (“LTV”) ratio at or below 75%, depending on the project type. Many of the construction and land development loans include interest reserves built into the loan commitment. For owner-occupied commercial construction loans, periodic cash payments for interest are required from the borrower’s cash flow.
Real estate loans are secured by single family residential properties (one to four units), multifamily residential properties (five or more units), owner-occupied commercial real estate (“CRE”), and non-owner-occupied CRE. Real estate loans are subject to the same general risks as other loans and may also be impacted by changing demographics, collateral maintenance, and product supply and demand. Rising interest rates, as well as other factors arising after a loan has been made, could negatively affect not only property values but also a borrower’s cash flow, creditworthiness, and ability to repay the loan. Increasing interest rates can impact real estate values as rising rates generally cause a similar movement in capitalization rates which can cause real estate collateral values to decline. The Company usually obtains a security interest in real estate, in addition to any other available collateral, in order to increase the likelihood of the ultimate repayment of the loan. The Company does not underwrite closed-end term consumer loans secured by a borrower’s residence. Junior liens may be considered in connection with a consumer home equity line of credit (“HELOC”), or as additional collateral support for SBA and other business loans.
The Company’s commercial and industrial (“C&I”) loans are primarily made to businesses located in California. These loans are made to finance operations, to provide working capital, or for specific purposes such as to finance the purchase of assets or equipment or to finance accounts receivable and inventory. The Company’s C&I loans may be secured (other than by real estate) or unsecured. They may take the form of single payment, installment, or lines of credit. These are generally based on the financial strength and integrity of the borrower and guarantor(s) and generally (with some exceptions) are collateralized by short-term assets such as accounts receivable, inventory, equipment, or a borrower’s other business assets. Commercial term loans are typically made to provide working capital to finance the acquisition of fixed assets, refinance short-term debt originally used to purchase fixed assets or, in rare cases, to finance the purchase of businesses.
Consumer loans consist of loans to individuals for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. Also included in our consumer loan portfolio were consumer solar panel loans that were acquired as part of the merger with CALB. At December 31, 2025, the consumer solar panel loans were transferred to loans held for sale at fair value. They consist of residential solar panel loans to consumers with an average individual term ranging from 10 to 20 years and are primarily collateralized by the related equipment. These loans were originated and serviced by unaffiliated third parties. Consumer loans are underwritten based on the borrower’s income, current debt level, past credit history, and the availability and value of collateral. Consumer rates are both fixed and variable, with negotiable terms. The Company’s installment loans typically amortize over periods up to 5 years. Although the Company typically requires monthly payments of interest and a portion of the principal on its loan products, the Company will offer consumer loans with a single
maturity date when a specific source of repayment is available. Consumer loans are generally considered to have greater risk than first or second mortgages on real estate because they may be unsecured, or, if they are secured, the value of the collateral may be difficult to assess and more likely to decrease in value than real estate.

The Company’s ACL model incorporates assumptions for prepayment/curtailment rates, PD, and LGD to project each loan’s cash flow throughout its entire life cycle. An initial reserve amount is determined based on the difference between the amortized cost basis of each loan and the present value of all future cash flows. The initial reserve amount is then aggregated at the loan segment level to derive the segment level quantitative loss rates. For prepayment and curtailment rates, the Company utilized Abrigo’s benchmark since the adoption on January 1, 2023 through the second quarter of 2023 and switched to the Company’s own historical prepayment and curtailment experience beginning in the third quarter of 2023. Quarterly PD is forecasted using a regression model that incorporates certain economic variables as inputs. The LGD is derived from PD using the Frye-Jacobs index provided by the Company’s third-party model provider. Reasonable and supportable forecasts are used to predict current and future economic conditions. Management elected to use a four quarter reasonable and supportable forecast period followed by an eight quarter straight-line reversion period. After twelve quarters of forecast plus reversion period, the PD is assumed to remain unchanged for the remaining life of the loan.
The Company uses numerous key macroeconomic variables within the economic forecast scenarios from Moody’s Analytics. These economic forecast scenarios are based on past events, current conditions, and the likelihood of future events occurring. These scenarios include a baseline forecast which represents their best estimate of future economic activity. Moody’s Analytics also provides nine alternative scenarios, including five direct variations of the baseline scenario and four more extensive departures from their baseline forecast, including a slower growth, a stagflation, a next cycle recession and a low oil price scenario. Management recognizes the non-linearity of credit losses relative to economic performance and believes the use of multiple probability-weighted economic scenarios is appropriate in estimating credit losses over the forecast period. This approach is based on certain assumptions. The first assumption is that no single forecast of the economy, however detailed or complex, is completely accurate over a reasonable forecast timeframe and is subject to revisions over time. By considering multiple scenarios, management believes some of the uncertainty associated with a single scenario approach can be mitigated. Management periodically evaluates economic scenarios, determines whether to utilize multiple probability-weighted scenarios in the Company’s ACL model, and, if multiple scenarios are utilized, evaluates and determines the weighting for each scenario used in the Company’s ACL model, and thus the scenarios and weightings of each scenario may change in future periods. Economic scenarios as well as assumptions within those scenarios can vary based on changes in current and expected economic conditions.
The ACL process involves subjective and complex judgments and is reflective of significant uncertainties that could potentially result in materially different results under different assumptions and conditions. In addition to the aforementioned quantitative model, management periodically considers the need for qualitative adjustments to the ACL. Such qualitative adjustments may be related to and include, but are not limited to factors such as: differences in segment-specific risk characteristics, periods wherein current conditions and reasonable and supportable forecasts of economic conditions differ from the conditions that existed at the time of the estimated loss calculation, model limitations and management’s overall assessment of the adequacy of the ACL. Qualitative risk factors are periodically evaluated by management.
Generally, the measurement of the ACL is performed by collectively evaluating loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated individually for credit loss and are not included in the evaluation process discussed above. Expected credit losses on all individually evaluated loans are measured, primarily through the evaluation of estimated cash flows
expected to be collected, or collateral values measured by reference to an observable market value, if one exists, or the fair value of the collateral for a collateral-dependent loan. The Company selects the measurement method on a loan-by-loan basis except that collateral-dependent loans for which foreclosure is probable are measured at the net realizable value of the collateral. Cash receipts on individually evaluated loans for which the accrual of interest has been discontinued are applied first to principal and then to interest income. Prior to the adoption of ASC Topic 326, individually evaluated loans were referred to as impaired loans. Amounts are charged-off when available information confirms that specific loans or portions thereof, are uncollectible. This methodology for determining charge-offs is consistently applied to each loan segment.
Loans with terms that have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are evaluated for an ACL utilizing one of the methodologies above.
Allowance for Credit Losses — Acquired Loans
In accordance with ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), loans purchased or acquired in connection with a business combination are recorded at their acquisition date fair value. Any resulting discount or premium recorded on acquired loans is accreted or amortized into interest income over the remaining life of the loans using the interest method. The ACL related to the acquired loan portfolio is not carried over from the acquiree. Acquired loans are classified into two categories based on the credit risk characteristics of the underlying borrowers as either PCD loans, or non-PCD loans.
PCD loans are those loans or pool of loans that have experienced more-than-insignificant credit deterioration since the origination date. For PCD loans, an initial allowance is established on the acquisition date using the same methodology as other loans held for investment and combined with the fair value of the loan to arrive at acquisition date amortized cost. Accordingly, no provision for credit losses is recognized on PCD loans at the acquisition date. Subsequent to the acquisition date, changes to the allowance are recognized in the provision for credit losses. The Company measures ACL for PCD loans using a loss-rate method in conjunction with the PD/LGD framework. For each segment, the company applied Abrigo's benchmark PD/LGD to derive the loss rate.
Non-PCD loans are those loans for which there was no evidence of a more-than-insignificant credit deterioration at their acquisition date. Acquired non‑PCD loans, together with originated loans held for investment that share similar risk characteristics, are pooled into segments together. Upon the purchase or acquisition of non-PCD loans, the Company measures and records an ACL based on the Company’s methodology for determining the ACL for its originated loans held for investment. The ACL for non-PCD loans is recorded through a charge to the provision for credit losses in the period in which the loans were purchased or acquired.
Allowance for Credit Losses — Off-Balance Sheet Credit Exposures
The Company also maintains a separate allowance for credit losses for off-balance sheet commitments, which totaled $2.1 million and $3.1 million at December 31, 2025 and 2024, respectively. Management estimates anticipated losses using expected loss factors consistent with those used for the ACL methodology for loans described above, and utilization assumptions based on historical experience. Provision for credit losses for off-balance sheet commitments is included in provision for credit losses in the consolidated statements of income and added to the allowance for off-balance sheet commitments, which is included in accrued interest payable and other liabilities in the consolidated balance sheets.
Restricted Stock and Other Equity Securities Without A Readily Determinable Fair Value
Restricted Stock
The Bank is a member of the Federal Home Loan Bank (”FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors. In addition, the
Bank is a member of its regional Federal Reserve. FHLB and Federal Reserve stock are carried at cost, classified as a restricted stock, at cost, in the consolidated balance sheets and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as interest and dividends on other interest-earning assets in the accompanying consolidated statements of income. There was no impairment of FHLB and Federal Reserve stock during 2025 and 2024.
Other Equity Securities Without A Readily Determinable Fair Value
The Company also has restricted securities in the form of capital stock invested in two different banker’s bank stocks, other limited partnership investments and other equity investments in technology venture capital funds focused on the intersection of fintech and community banking. These investments do not have a readily determinable fair value, and they are measured at equity method of accounting when its ownership interest in such investments exceed 5% or carried at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer.
The Company invests in and acquired limited partnerships that operate affordable housing
projects throughout California that qualify for and have received an allocation of federal and/or state low-income housing tax credits. The Company accounts for these investments in qualified affordable housing tax credit funds using the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received as part of income tax expense (benefit). If the partnerships cease to qualify for tax credit, 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. These investments are included in accrued interest receivable and other assets in the accompanying consolidated balance sheets.
The Company evaluates its interests in these investments to determine whether it has a variable interest and whether it is required to consolidate these entities both at inception and on an ongoing basis. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity's expected residual returns. If the Company determines it has a variable interest in an entity, it evaluates whether such interest is variable interest entity (“VIE”). A VIE is consolidated by the primary beneficiary, which is the entity that has the power to direct the activities that most significantly impact the economic performance of the VIE and has the right to receive benefits or the obligation to absorb losses that are significant to the VIE. Significant judgments are made to determine whether these entities are VIEs and if the Company is the primary beneficiary.
Loans Held For Sale
Loans Held for Sale
Loans held for sale are primarily comprised of SBA 7(a) loans originated and intended for sale in the secondary market. These loans are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains or losses realized on the sales of SBA 7(a) loans are recognized at the time of sale and are determined by the difference between the net sales proceeds and the carrying value of the loans sold, adjusted for any servicing asset or liability. Gains and losses on sales of SBA 7(a) loans are included in gain (loss) on sale of loans in the accompanying consolidated statements of income.
Loans Held for Investment
Loans Held for Investment
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances reduced by net charge-offs and adjusted for net deferred fees or costs on originated loans, or unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Net deferred loan
origination fees and costs and premiums or discounts on acquired loans are accreted or amortized in interest income as an adjustment of yield, using the interest or straight-line methods, over the expected life of the loans. When a loan is paid off prior to maturity, the remaining unamortized fees and costs on originated loans and unamortized premiums or discounts on acquired loans are immediately recognized as interest income.
Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is generally discontinued when principal or interest is past due 90 days based on the contractual terms of the loan or earlier when, in the opinion of management, there is reasonable doubt as to collectability. Consumer solar loans are typically charged off no later than 120 days past due. Amortization of deferred loan fees and costs are also discontinued when a loan is placed on nonaccrual status. On a case-by-case basis, loans past due 90 days may remain on accrual, if the loan is well collateralized, actively in process of collection and, in the opinion of management, likely to be paid current within the next payment cycle. When loans are placed on nonaccrual status, all interest previously accrued but not collected is generally reversed against current period interest income. Income on nonaccrual loans is subsequently recognized only to the extent that cash is received and the loan’s principal balance is deemed collectible. Interest accruals are resumed on such loans only when they are brought current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectable as to all principal and interest.
Loan Modifications, Refinancings and Restructurings
Loan Modifications, Refinancings and Restructurings
Prior to the adoption of ASU 2022-02, a loan was classified as a TDR when the Company granted a concession to a borrower experiencing financial difficulties that it otherwise would not consider under
its normal lending policies under ASC Subtopic 310-40, Troubled Debt Restructurings by Creditors. Upon the adoption of ASU 2022-02, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty. The Company considers some of the indicators that a borrower is experiencing financial difficulty to be: currently in payment default on any of their debt, declaring bankruptcy, having issues continuing as a going concern, insufficient cash flow to service all debt service requirements, inability to obtain funds from other sources at a market rate for similar debt to non-troubled borrowers, and currently classified as substandard loans that are categorized as having well-defined weaknesses.
Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. If the refinancing or restructuring is deemed to be a new loan, unamortized net fees or costs from the original loan and any prepayment penalties are recognized in interest income when the new loan is granted. In addition, a new effective interest rate will be determined. If the refinancing or restructuring is deemed to be a modification, the investment in the new loan is comprised of the remaining net investment in the original loan, any additional funds advanced to the borrower, any fees received, and direct loan origination costs associated with the refinancing or restructuring. The effective interest rate of the loan is recalculated based upon the amortized cost basis of the new loan and its revised contractual cash flows.
A modification may vary by program and by borrower-specific characteristics, that may include interest rate reductions, principal forgiveness, term extensions, payment delays and any combination of the above. It is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company applies the same credit loss methodology it uses for similar loans that were not modified.
GAAP requires that certain types of modifications be reported, which consist of (1) principal forgiveness; (2) interest rate reduction; (3) other-than-insignificant payment delay; (4) term extension; and any combination of the above.
Other Real Estate Owned (“OREO”)
Other Real Estate Owned (“OREO”)
Real estate acquired by foreclosure or deed in lieu of foreclosure is initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis by a charge to the allowance for credit losses, if necessary. Fair value is generally based on independent appraisals, which are frequently adjusted by management to reflect current conditions and estimated selling costs. Subsequent to foreclosure, OREO is carried at the lower of the Company’s carrying value of the property or its fair value, less estimated carrying costs and costs of disposition. Reductions in fair value subsequent to initial measurement result in a valuation allowance recognized as expense within noninterest income in the accompanying consolidated statements of income. Operating expenses of such properties, net of related income, and gains and losses on their disposition are included in other real estate owned expenses in the consolidated statements of income.
Bank Owned Life Insurance
Bank Owned Life Insurance
The Company has purchased, or acquired through business combinations, life insurance policies on key executives. Bank owned life insurance is recorded at the amount that can be realized under insurance contracts at the date of the consolidated balance sheets, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Transfers of Financial Assets
Transfers of Financial Assets
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity.
Loan Sales and Servicing of Financial Assets
Loan Sales and Servicing of Financial Assets
The Company originates SBA loans that may be sold in the secondary market. Servicing rights are recognized separately when they are acquired through sale of loans. Risks inherent in servicing rights include prepayment and interest rate risk. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sale of loans. Fair value is based on a valuation model that calculates the present value of estimated future cash flows from the servicing assets. The valuation model uses assumptions that market participants would use in estimating cash flows from servicing assets, such as the cost to service, discount rates and prepayment speeds (Level 3 fair value inputs). The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.
Servicing fee income, which is reported in the consolidated statements of income with servicing and related income on loans, net, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of servicing rights and changes in the valuation allowance are netted against loan servicing income.
Premises and Equipment
Premises and Equipment
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives, which ranges from three to seven years for furniture and equipment and forty-five to fifty-five years for premises. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the remaining lease term, whichever is shorter. Expenditures for betterments or major repairs are capitalized and those for ordinary repairs and maintenance are charged to operations as incurred.
Right-of-Use (”ROU”) Assets and Lease Liabilities
Right-of-Use (”ROU”) Assets and Lease Liabilities
The Company has operating leases for its branches and administrative facilities. The Company determines if an arrangement contains a lease at contract inception and recognizes a ROU asset and operating lease liability based on the present value of lease payments over the lease term. While operating leases may include options to extend the term, the Company does not take into account the options in calculating the ROU asset and lease liability unless it is reasonably certain such options will be exercised. The present value of lease payments is determined based on the discount rate implicit in the lease or the Company’s estimated incremental borrowing rate if the rate is not implicit in the lease. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense is recognized on a straight-line basis over the lease term. The Company accounts for lease agreements with lease and non-lease components as a single lease component.
Employee Benefit Plans
Employee Benefit Plans
The Company has a retirement savings 401(k) plan in which substantially all employees may participate. Pursuant to the Company’s safe harbor election, matching contributions up to 4.0% of salary are made to the plan. Total contribution expense for the plan was $1.5 million in 2025 and $950 thousand in 2024 and is included in salaries and employee benefits expense in the consolidated statements of income. Deferred compensation and supplemental retirement plan expense is recognized over the years of service.
Compensated Absences
Compensated Absences
Employees of the Company are generally entitled to paid vacation, paid sick days and personal days off, depending on job classification, length of service, and other factors. The Company’s policy is that fully vested vacation is accrued at each quarter end.
Advertising Costs
Advertising Costs
The Company expenses the costs of advertising in the period incurred.
Income Taxes
Income Taxes
Deferred income taxes are computed using the asset and liability method, which recognizes a liability or asset representing the tax effects, based on current tax law, of future deductible or taxable amounts attributable to events that have been recognized in the financial statements. A valuation allowance is established to reduce the deferred tax asset to the level at which it is “more likely than not” that the tax asset or benefits will be realized. Realization of tax benefits of deductible temporary differences and operating loss carryforwards depend on having sufficient taxable income of an appropriate character within the carryforward periods.
The Company has adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return and provides that the tax effects from an uncertain tax position can be recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Management believes that all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the consolidated financial statements. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense.
Investments that generate investment tax credits are accounted for under the flow-through method. Under the flow-through method, the allowable investment credit is recognized as a reduction in income tax expense over the life of the acquired investment.
We reclassify stranded tax effects from accumulated other comprehensive income to retained earnings in periods in which there is a change in corporate income tax rates.
Comprehensive Income
Comprehensive Income
Changes in unrealized gains and losses, net of tax on available-for-sale securities is the only component of other comprehensive income (loss) for the Company.
Financial Instruments
Financial Instruments
In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded, or related fees are incurred or received.
Earnings Per Share ("EPS")
Earnings Per Share (“EPS”)
Earnings per share presents the net income or loss per common share, after consideration of the preferred shareholders interest in the net income or loss. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution, using the treasury stock method, that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.
Business Combinations
Business Combinations
Business combinations are accounted for using the acquisition method of accounting under ASC Topic 805 - Business Combinations. Under the acquisition method, the Company measures the identifiable assets acquired, including identifiable intangible assets, and liabilities assumed in a business combination at fair value on acquisition date. Goodwill is generally determined as the excess of the fair value of the consideration transferred, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. The Company accounts for merger-related costs, which may include advisory, legal, accounting, valuation, other professional fees, data conversion fees, contract termination charges and branch consolidation costs, as expenses in the periods in which the costs are incurred and the services are received.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and other intangible assets acquired in a purchase business combination and determined to have indefinite useful lives are not amortized but tested for impairment no less than annually or when circumstances arise indicating impairment may have occurred. Goodwill is the only intangible asset with an indefinite life recorded in the Company’s consolidated balance sheets. The determination of whether impairment has occurred, includes the considerations of a number of factors including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows, and current market data. Any impairment identified as part of this testing is recognized through a charge to net income. The Company has selected to perform its annual impairment test in the fourth quarter of each fiscal year. There was no impairment recognized related to goodwill for the years ended December 31, 2025 and 2024.
The Company’s trade name intangible is being amortized on a straight-line basis over a period of two years, reflecting the manner in which the related benefit is expected to be realized. Core deposit intangible (”CDI”) is a measure of the value of depositor relationships resulting from whole bank acquisitions. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. CDI is amortized on a straight-line method or an accelerated method over an estimated useful life of ten years.
Loss Contingencies
Loss Contingencies
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable, and the amount or range of loss can be reasonably estimated. During the year ended December 31, 2025, the Company recorded litigation settlements of $2.0 million related to employment litigation matters, which is reflected as litigation
settlement, net in the accompanying consolidated statements of income. The amount reflects a $5.4 million gross settlement recorded in the accrued interest and other liabilities on the Company’s consolidated balance sheet at December 31, 2025 were presented net of $3.4 million of insurance reimbursements. Both the settlement payments and insurance reimbursements paid and collected in February 2026. Management does not believe there are any other such matters that will have a material effect on the consolidated financial statements at December 31, 2025.
Revenue Recognition - Noninterest Income
Revenue Recognition – Noninterest Income
The core principle of Topic 606, Revenue from Contracts with Customers, is that an entity recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. Topic 606 requires entities to exercise more judgment when considering the terms of a contract than under Topic 605, Revenue Recognition. Topic 606 applies to all contracts with customers to provide goods or services in the ordinary course of business, except for contracts that are specifically excluded from its scope. Topic 606 does not apply to revenue associated with interest income on financial instruments, including loans and securities. Additionally, certain noninterest income streams, such as income from BOLI and gain and losses on sales of investment securities and loans, are out of the scope of Topic 606.
Topic 606 is applicable to noninterest revenue streams such as (i) service charges and fees on deposit accounts, including account maintenance, transaction-based and overdraft services, and (ii) interchange fees, which represent fees earned when a debit card issued by the Company is used. These revenue streams are largely transaction-based and revenue is recognized upon completion of a transaction.
All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized in noninterest income in the consolidated statements of income.
Gains/losses on the sale of OREO are included in non-interest income/expense in the consolidated statements of income and are generally recognized when the performance obligation is complete. This is typically at delivery of control over the property to the buyer at the time of each real estate closing.
Stock-Based Compensation
Stock-Based Compensation
Compensation cost is recognized for stock options, time-based restricted stock unit awards and performance-based restricted stock unit awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for time-based and performance-based restricted stock unit awards. Performance-based restricted stock unit awards contain vesting conditions which are based on predetermined performance targets that impact the number of shares that ultimately vest based on the level of targets achievement. These costs are recognized over the period in which the awards are expected to vest, on a straight-line basis. The costs for performance-based restricted unit awards are recognized over the period in which the awards are expected to vest as the Company believes the predetermined performance targets are probable to be fulfilled. For performance-based awards that do not vest because the predetermined performance targets are not fulfilled, no compensation cost is recognized, and any previously recognized compensation is reversed. The Company has elected to account for forfeitures of stock-based awards as they occur. Excess tax benefits and tax deficiencies relating to stock-based compensation are recorded as income tax expense or benefit in the consolidated statements of income when incurred. The Company generally issues new shares upon the exercise of stock options or vesting of restricted stock units.
Fair Value Measurement
Fair Value Measurement
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date. The Company measures certain assets and liabilities on a fair value basis, in accordance with ASC Topic 820, “Fair Value Measurement.” Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, ASC Topic 825, “Financial Instruments” requires disclosure of the fair value of financial assets and financial liabilities, including both those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis and a non-recurring basis. ASC Topic 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:
Level 1:     Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2:     Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3:    Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
The fair value of a financial instrument is the amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has
the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar
assets or liabilities; quoted prices in markets that are not active; or other inputs that are
observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a Company’s own assumptions about the
assumptions that market participants would use in pricing an asset or liability.

Fair value of financial instruments

Fair value estimates are based on financial instruments both on and off the balance sheet without attempting to estimate the value of anticipated future business, and the value of assets and liabilities that are not considered financial instruments. Additionally, tax consequences related to the realization of the unrealized gains and losses can have a potential effect on fair value estimates and have not been considered in many of the estimates. The following methods and assumptions were used to estimate the fair value of significant financial instruments:

Cash and Due from Banks: The carrying amounts of cash and short-term instruments approximate fair values because of the liquidity of these instruments.
Federal Funds Sold and Interest-Bearing Balances: The carrying amount is assumed to be the fair value given the short-term nature of these deposits.
Debt Securities Held to Maturity and Available for Sale: The fair values of securities held to maturity and available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities.
Loans Held for Sale: The fair value of loans held-for-sale is based on commitments outstanding from investors as well as what secondary market investors are currently offering for portfolios with similar characteristics.

Loans Held for Investment, net: The fair value of loans, which is based on an exit price notion, is generally determined using an income based approach based on discounted cash flow analysis. This approach utilizes the contractual maturity of the loans and market indications of interest rates, prepayment speeds, defaults and credit risk in determining fair value. The fair value for PCD loans incorporated market-based loss rates used to estimated expected life of loan credit losses. The noncredit discount resulting from the acquired PCD loans was allocated to each individual asset. If an individually evaluated loan has had a charge-off or if the fair value of the collateral is less than the recorded investment in the loan, we establish a specific reserve and report the loan as nonrecurring Level 3. Loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. For the fair value of collateral-dependent individually evaluated loans, an asset-based approach is applied to determine the estimated fair values of the underlying collateral based on recent real estate appraisals, less costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. New appraisals in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.
Restricted Stock Investments: Investments in FHLB and Federal Reserve stocks are recorded at cost and measured for impairment. Ownership of FHLB and Federal Reserve stocks are restricted to member banks and the securities do not have a readily determinable market value. Purchases and sales of these securities are at par value with the issuer. The fair value of investments in FHLB and Federal Reserve stock is equal to the carrying amount.
Other Equity Securities: The fair value of equity securities is based on quoted prices in active markets for identical assets to determine the fair value. If quoted prices are not available to determine fair value, the Company estimates the fair values by using independent pricing models, quoted prices of securities with similar characteristics, or discounted cash flows.
Other Real Estate Owned: Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of the carrying amount or fair value, less costs to sell. The fair value of OREO is generally based on recent real estate appraisals or broker opinions, obtained from independent third parties, which are frequently adjusted by management to reflect current conditions and estimated selling costs.
Accrued Interest Receivable: The fair value of accrued interest receivable approximates their carrying amounts.
Deposits: The fair values disclosed for demand deposits, including interest and non-interest demand accounts, savings, and certain types of money market accounts are, by definition based on
carrying value. Fair value for fixed-rate certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregate expected monthly maturities on time deposits. Early withdrawal of fixed-rate certificates of deposit is not expected to be significant.
Borrowings: The fair value of fixed-rated term borrowings is estimated using a discounted cash flow through the remaining maturity dates based on the current borrowing rates for similar types of borrowing arrangements. The fair values of subordinated debt and notes are based on rates currently available to the Company for debt with similar terms and remaining maturities.
Accrued Interest Payable: The fair value of accrued interest payable approximates the carrying amounts.
Off-Balance Sheet Financial Instruments: The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. The fair value of these financial instruments is not material.
Recently Adopted Accounting Guidance and Recent Accounting Guidance Not Yet Effective
Recently Adopted Accounting Guidance
On January 1, 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a retrospective basis. The standard enhances the Company’s rate reconciliation table by requiring additional categories of information about federal, state and foreign income taxes and expanded detail for reconciling items that exceed a quantitative threshold. ASU 2023-09 also requires disclosure of income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods, including further disaggregation by jurisdiction when quantitative thresholds are met. ASU 2023-09 became effective for us in 2025 (see Note 11 - Income Taxes). The adoption of this standard did not have a material impact to the consolidated financial statements.
ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures: In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” to require, among other things, that a public entity that has a single reportable segment provide enhanced disclosures about significant segment expenses. Significant expense categories are derived from expenses that are 1) regularly reported to an entity’s chief operating decision-maker (“CODM”), and 2) included in a segment’s reported measure of profit or loss. The disclosures should include an amount for "other segment items," reflecting the difference between 1) segment revenue less significant segment expenses, and 2) the reportable segment’s profit or loss measures. It requires that a public entity disclose the title and position of the CODM and how the CODM uses the reported measure of profit or loss to assess segment performance and to allocate resources. Further it clarifies that entities with a single reportable segment must disclose both new and existing segment reporting requirements. The adoption of this standard did not have a material impact to the consolidated financial statements.
Recent Accounting Guidance Not Yet Effective
In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-06, Disclosure Improvements–Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). The amendments in this update modify the disclosure or presentation requirements for a variety of topics in the codification. Certain amendments represent clarifications to or technical corrections of the current requirements. The following is a summary of the topics included in the update and which pertain to the Company: 1. Statement of cash flows (Topic 230): Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative
instruments and their related gains and losses are presented in the statement of cash flows; 2. Accounting changes and error corrections (Topic 250): Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements; 3. Earnings per share (Topic 260): Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods, and amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings per share computation; 4. Commitments (Topic 440): Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized; and 5. Debt (Topic 470): Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. For public business entities, the amendments in ASU 2023-06 are effective on the date which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation and S-X or Regulation S-K, the pending content of the related amendment will be removed from the codification and will not become effective for any entity. Early adoption is not permitted and the amendments are required to be applied on a prospective basis. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
ASU No. 2024-03, Income Statement– Reporting Comprehensive Income-Expense Disaggregation Disclosures. In November 2024, the FASB issued ASU 2024-03 which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income– Expense Disaggregation Disclosures– Clarifying the Effective Date, which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of ASU 2024-03 is permitted. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810)-Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. In May 2025, the FASB issued ASU 2025-03, which revises the guidance in ASC 805 on identifying the accounting acquirer in a business combination in which the legal acquiree is a variable interest entity (“VIE”). The ASU is intended to improve comparability between business combinations that involve VIEs and those that do not. ASU 2025-03 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The amendments in ASU 2025-03 must be applied prospectively to any business combination that occurs after the initial adoption date. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
ASU 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer. In May 2025, the FASB issued ASU 2025-04 to reduce diversity in practice and improve the usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction with selling goods or services. The ASU is effective for fiscal years beginning after December 15, 2026 with updates to be applied on a retrospective or modified retrospective basis. Early adoption is permitted. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.

ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. In November 2025, the FASB issued ASU 2025-08 which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under this standard, entities must account for acquired loans
(excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses (often referred to as the gross-up approach). These amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”). The standard is effective for fiscal years beginning after December 15, 2026, including interim reporting periods within those fiscal years. Early adoption is permitted, and the standard is to be applied prospectively. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.

ASU 2025-11, Interim Reporting (Topic 270) Narrow-Scope Improvements. In December 2025, the FASB issued ASU 2025-08 which is intended to improve the guidance in Topic 270, Interim Reporting, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. The amendments add to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-08 is not intended to change the fundamental nature of interim reporting or expand or reduce current interim disclosure requirements, rather, the objective of the amendments is to provide clarity on the current interim reporting requirements. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company expects the adoption of this standard will not have a material impact on its consolidated financial statements.
v3.25.4
BUSINESS COMBINATIONS (Tables)
12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Adjustments to Goodwill Acquired The following table summarizes the final adjustments to goodwill subsequent to July 31, 2024.
(dollars in thousands)Goodwill
Balance at July 31, 2024
$74,712 
Adjustments to goodwill acquired in connection with the Merger(1,581)
Balance at September 30, 2025
$73,131 
Schedule of Fair Value of Assets Acquired and Liabilities
The following table represents the allocation of the purchase consideration to the preliminary fair value of assets acquired and liabilities assumed of CALB, as adjusted, as of July 31, 2024:

(dollars in thousands)Fair
Value
Assets acquired:
Cash and cash equivalents$336,298 
Debt securities, available-for-sale42,560 
Loans held for investment1,359,040 
Allowance for credit losses - PCD loans(10,022)
Restricted stock
6,328 
Other equity securities6,596 
Premises and equipment
1,670 
Operating lease right-of-use asset7,743 
Prepaid expenses876 
(dollars in thousands)Fair
Value
Deferred taxes, net30,149 
Bank owned life insurance26,338 
Trade name
300 
Core deposit intangible22,653 
Other assets35,040 
Total assets acquired1,865,569 
Liabilities assumed:
Deposits1,642,938 
Borrowings50,832 
Operating lease liabilities9,033 
Other liabilities19,259 
Total liabilities assumed1,722,062 
Net assets acquired$143,507 
Purchase consideration:
Outstanding shares of CALB, July 31, 20248,488,829 
Restricted stock units vested fully at merger closing(1)
77,436 
Shares of CALB common stock exchanged8,566,265 
Exchange ratio1.590 
Shares of BCAL common stock issued to CALB shareholders at closing, before fractional shares13,620,361 
Less: fractional shares(147)
Shares of BCAL common stock issued to CALB shareholders at closing
13,620,214 
BCAL closing price per share, July 31, 2024$15.79 
Fair value of common shares issued and exchanged$215,063 
Less: fair value of accelerated restricted stock units attributable to post-combination vesting(2)(3)
(1,119)
Fair value of common shares issued and exchanged attributable to purchase consideration213,944 
Cash paid for outstanding stock options(4)
1,431 
Cash paid for fractional shares
Restricted stock consideration(5)
1,261 
Total purchase consideration216,638 
Goodwill recognized$73,131 
(1)Represents 5,596 unvested restricted stock units of non-continuing CALB directors that were automatically fully vested and converted under the merger agreement and 71,840 of unvested restricted shares (replacement awards) for non-continuing executives and employees that were accelerated and fully vested. The portion of the fair value of these awards attributable to pre-combination vesting is included as a component of purchase consideration. The portion of the fair value of these awards attributable to post-combination vesting (See #2 below) was reflected in expense of the combined company upon merger closing.
(2)Represents the fair value of the 77,436 CALB restricted stock units (replacement awards) that were accelerated for non-continuing directors, executives and employees that was attributable to post-combination vesting. Upon acceleration, 51,801 net CALB shares were then converted into the right to receive the Company’s common
stock after 25,635 of CALB shares were surrendered by certain executives and employees to pay for taxes. The portion of the fair value of these awards attributable to post-combination vesting was recognized as an expense of the combined company upon merger closing.
(3)Included in this amount is $472 thousand related to 31,355 restricted stock units that fully vested due to change in control agreements (double trigger) held by four executives that are no longer employed by the Company upon closing of the Merger.
(4)Represents the payment of (a) $1.3 million for 283,641 vested stock options at a weighted average exercise price of $18.22 and (b) $82 thousand for 92,685 unvested stock options at a weighted average price of $19.03 attributable to pre-combination vesting based on the $22.98 Option Cashout Price. An additional $284 thousand was paid for the portion of unvested stock options attributable to post-combination vesting and was recognized as an expense of the combined company upon merger closing. There were 65,785 unvested stock options at a weighted average price of $23.81 that were out-of-the-money at July 31, 2024 and excluded from stock option consideration as they were cancelled under the terms of the merger agreement.
(5)Represents the fair value of 185,878 unvested restricted stock units (replacement awards) for continuing executives and employees attributable to pre-combination vesting. A forfeiture rate of 3% was applied in determining share-based awards expected to vest.
The following table presents the measurement period adjustments that were identified and recorded after the measurement period ended.

Initially MeasuredMeasurement
As Adjusted
(dollars in thousands)July 31, 2024Period AdjustmentsJuly 31, 2024
Assets:
Cash and due from banks$336,298 $— $336,298 
Debt securities42,560 — 42,560 
Loans1,347,824 1,194 1,349,018 
Investments in restricted stocks6,328 — 6,328 
Premises and Equipment, net1,670 — 1,670 
Deferred Taxes, net30,221 (72)30,149 
Goodwill74,712 (1,581)73,131 
Trade name
— 300 300 
Core Deposit Intangible22,653 — 22,653 
Other Assets76,434 159 76,593 
Total assets$1,938,700 $— $1,938,700 
Liabilities:
Deposits$1,642,938 $— $1,642,938 
Borrowings50,832 — 50,832 
Other Liabilities28,292 — 28,292 
Total liabilities
$1,722,062 $— $1,722,062 
Schedule of Purchase Consideration
The following table represents the allocation of the purchase consideration to the preliminary fair value of assets acquired and liabilities assumed of CALB, as adjusted, as of July 31, 2024:

(dollars in thousands)Fair
Value
Assets acquired:
Cash and cash equivalents$336,298 
Debt securities, available-for-sale42,560 
Loans held for investment1,359,040 
Allowance for credit losses - PCD loans(10,022)
Restricted stock
6,328 
Other equity securities6,596 
Premises and equipment
1,670 
Operating lease right-of-use asset7,743 
Prepaid expenses876 
(dollars in thousands)Fair
Value
Deferred taxes, net30,149 
Bank owned life insurance26,338 
Trade name
300 
Core deposit intangible22,653 
Other assets35,040 
Total assets acquired1,865,569 
Liabilities assumed:
Deposits1,642,938 
Borrowings50,832 
Operating lease liabilities9,033 
Other liabilities19,259 
Total liabilities assumed1,722,062 
Net assets acquired$143,507 
Purchase consideration:
Outstanding shares of CALB, July 31, 20248,488,829 
Restricted stock units vested fully at merger closing(1)
77,436 
Shares of CALB common stock exchanged8,566,265 
Exchange ratio1.590 
Shares of BCAL common stock issued to CALB shareholders at closing, before fractional shares13,620,361 
Less: fractional shares(147)
Shares of BCAL common stock issued to CALB shareholders at closing
13,620,214 
BCAL closing price per share, July 31, 2024$15.79 
Fair value of common shares issued and exchanged$215,063 
Less: fair value of accelerated restricted stock units attributable to post-combination vesting(2)(3)
(1,119)
Fair value of common shares issued and exchanged attributable to purchase consideration213,944 
Cash paid for outstanding stock options(4)
1,431 
Cash paid for fractional shares
Restricted stock consideration(5)
1,261 
Total purchase consideration216,638 
Goodwill recognized$73,131 
(1)Represents 5,596 unvested restricted stock units of non-continuing CALB directors that were automatically fully vested and converted under the merger agreement and 71,840 of unvested restricted shares (replacement awards) for non-continuing executives and employees that were accelerated and fully vested. The portion of the fair value of these awards attributable to pre-combination vesting is included as a component of purchase consideration. The portion of the fair value of these awards attributable to post-combination vesting (See #2 below) was reflected in expense of the combined company upon merger closing.
(2)Represents the fair value of the 77,436 CALB restricted stock units (replacement awards) that were accelerated for non-continuing directors, executives and employees that was attributable to post-combination vesting. Upon acceleration, 51,801 net CALB shares were then converted into the right to receive the Company’s common
stock after 25,635 of CALB shares were surrendered by certain executives and employees to pay for taxes. The portion of the fair value of these awards attributable to post-combination vesting was recognized as an expense of the combined company upon merger closing.
(3)Included in this amount is $472 thousand related to 31,355 restricted stock units that fully vested due to change in control agreements (double trigger) held by four executives that are no longer employed by the Company upon closing of the Merger.
(4)Represents the payment of (a) $1.3 million for 283,641 vested stock options at a weighted average exercise price of $18.22 and (b) $82 thousand for 92,685 unvested stock options at a weighted average price of $19.03 attributable to pre-combination vesting based on the $22.98 Option Cashout Price. An additional $284 thousand was paid for the portion of unvested stock options attributable to post-combination vesting and was recognized as an expense of the combined company upon merger closing. There were 65,785 unvested stock options at a weighted average price of $23.81 that were out-of-the-money at July 31, 2024 and excluded from stock option consideration as they were cancelled under the terms of the merger agreement.
(5)Represents the fair value of 185,878 unvested restricted stock units (replacement awards) for continuing executives and employees attributable to pre-combination vesting. A forfeiture rate of 3% was applied in determining share-based awards expected to vest.
Total merger-related costs, which are reflected as merger and related costs in the accompanying consolidated statements of income, included the following total amounts for the year ended December 31, 2024:
(dollars in thousands)2024
Financial advisory fees$2,576 
Legal, accounting, valuation and other professional costs874 
Information technology5,218 
Change in control costs/severance6,238 
Insurance919 
Other463 
$16,288 
Schedule of Purchased Credit Deteriorated Loans
The following table presents the composition of purchased credit-deteriorated (“PCD”) loans as of the acquisition date:
(dollars in thousands)Amount
Unpaid principal balance$111,720 
Allowance for credit losses - PCD loans(11,216)
Non-credit discount amount(5,107)
Loans previously charged-off by CALB(10,171)
PCD loans acquired
$85,226 
v3.25.4
INVESTMENT SECURITIES (Tables)
12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost and Fair Value of Held-to-Maturity Debt Securities The amortized cost of held-to-maturity debt securities and their approximate fair values at December 31, 2025 and 2024 were as follows:
(dollars in thousands)Amortized Cost
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Estimated Fair
Value
December 31, 2025
Taxable municipals
$555 $— $(63)$492 
Tax exempt bank-qualified municipals52,381 — (3,565)48,816 
$52,936 $— $(3,628)$49,308 
December 31, 2024
Taxable municipals
$553 $— $(90)$463 
Tax exempt bank-qualified municipals52,727 — (5,367)47,360 
$53,280 $— $(5,457)$47,823 
Schedule of Amortized Cost and Fair Value of Available-for-Sale Debt Securities
The amortized cost of available-for-sale debt securities and their approximate fair values at December 31, 2025 and 2024 were as follows:
(dollars in thousands)Amortized CostGross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated Fair
Value
December 31, 2025
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities$161,376 $2,041 $(2,401)$161,016 
SBA securities 3,862 (54)3,816 
U.S. Treasury2,654 — (182)2,472 
U.S. Agency2,000 — (207)1,793 
Collateralized mortgage obligations66,293 457 (1,895)64,855 
Taxable municipals
1,006 — (68)938 
$237,191 $2,506 $(4,807)$234,890 
December 31, 2024
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities$87,930 $109 $(4,765)$83,274 
SBA securities5,423 (97)5,333 
U.S. Treasury12,624 17 (315)12,326 
U.S. Agency2,000 — (330)1,670 
Collateralized mortgage obligations41,615 11 (3,963)37,663 
Taxable municipals1,007 — (98)909 
Tax exempt bank-qualified municipals830 — (4)826 
$151,429 $144 $(9,572)$142,001 
Schedule of Debt Securities Classified by Contractual Maturities
The amortized cost and estimated fair value of all held-to-maturity and available-for-sale debt securities as of December 31, 2025 by contractual maturities are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Held-to-MaturityAvailable-for-Sale
(dollars in thousands)Amortized
Cost
Estimated Fair
Value
Amortized
Cost
Estimated Fair
Value
Due in one year or less$— $— $23 $23 
Due after one year through five years— — 11,777 11,152 
Due after five years through ten years37,796 35,423 13,684 12,768 
Due after ten years15,140 13,885 211,707 210,947 
$52,936 $49,308 $237,191 $234,890 
Schedule of Gross Unrealized Losses and Estimated Fair Values of Available-for-Sale Debt Securities
The gross unrealized losses and related estimated fair values of all available-for-sale debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and 2024 are summarized as follows:
Less than 12 Months12 Months or LongerTotal
(dollars in thousands)
Gross Unrealized
Losses
Estimated
Fair
Value
Gross Unrealized
Losses
Estimated
Fair
Value
Gross Unrealized
Losses
Estimated
Fair
Value
December 31, 2025:
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities:$(329)$47,667 $(2,072)$28,726 $(2,401)$76,393 
SBA securities— — (54)2,813 (54)2,813 
U.S. Treasury— — (182)2,472 (182)2,472 
U.S. Agency
— — (207)1,793 (207)1,793 
Collateralized mortgage obligations(35)7,971 (1,860)25,234 (1,895)33,205 
Taxable municipals
— — (68)438 (68)438 
$(364)$55,638 $(4,443)$61,476 $(4,807)$117,114 
December 31, 2024:
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities:$(1,659)$47,792 $(3,106)$20,692 $(4,765)$68,484 
SBA securities(2)924 (95)3,011 (97)3,935 
U.S. Treasury— — (315)2,392 (315)2,392 
U.S. Agency
— — (330)1,670 (330)1,670 
Collateralized mortgage obligations(279)7,922 (3,684)28,985 (3,963)36,907 
Taxable municipals
— — (98)409 (98)409 
Tax exempt bank-qualified municipals
— — (4)826 (4)826 
$(1,940)$56,638 $(7,632)$57,985 $(9,572)$114,623 
Schedule of Restricted Stock Investments
The table below summarizes the Company’s restricted stock investments at December 31:

(dollars in thousands)20252024
Federal Reserve Bank$15,627 $15,524 
Federal Home Loan Bank15,305 15,305 
$30,932 $30,829 
Schedule of Activity in Qualifying Low Income Housing Projects The following table presents activity in qualifying low income housing projects for the years ended December 31, 2025 and 2024 follows:
(dollars in thousands)20252024
Amortization expense included in income tax expense$689 $685 
Tax credits and other tax benefits recognized1,206 887 
Contributions
1,033 322 
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Loan Portfolio
The composition of the Company’s loan portfolio at December 31, 2025 and 2024 was as follows:

(dollars in thousands)20252024
Construction and land development$138,894 $227,325 
Real estate - other:
  1-4 family residential142,399 164,401 
  Multifamily residential324,075 243,993 
  Commercial real estate and other1,820,445 1,767,727 
Commercial and industrial
605,859 710,970 
Consumer 2,215 24,749 
Loans held for investment (1)
3,033,887 3,139,165 
Allowance for credit losses - loans(34,348)(50,540)
Loans held for investment, net
$2,999,539 $3,088,625 
(1)Loans held for investment included net unearned fees of $2.8 million and $1.8 million and net unearned discounts on acquired loans of $31.3 million and $58.5 million at December 31, 2025 and 2024, respectively. The Company recognized $21.3 million and $12.3 million in interest accretion for net deferred loan fees and net discounts on acquired loans for the years ended December 31, 2025 and 2024, respectively.
Schedule of Risk Category of Loans by Class and Origination Year
The risk category of loans by class of loans and origination year as of December 31, 2025 follows:
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20252024202320222021PriorTotal
December 31, 2025
Construction and land development
Pass$28,119 $39,469 $12,434 $35,050 $5,336 $2,263 $— $2,343 $125,014 
Special mention— — — — — — — — — 
Substandard— — — 13,808 — 72 — — 13,880 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total construction and land development28,119 39,469 12,434 48,858 5,336 2,335 — 2,343 138,894 
YTD gross charge-offs
— — — — — — — — — 
Real estate - other:
1-4 family residential
Pass2,469 1,525 12,657 29,542 16,550 22,687 50,872 3,430 139,732 
Special mention— — — — — — — — — 
Substandard— — — 2,667 — — — — 2,667 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total 1-4 family residential2,469 1,525 12,657 32,209 16,550 22,687 50,872 3,430 142,399 
YTD gross charge-offs
— — — — — — — — — 
Multifamily residential
Pass61,974 15,987 18,766 77,050 82,137 58,201 1,990 — 316,105 
Special mention— — — 7,970 — — — — 7,970 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
Total
Loss— — — — — — — — — 
Total multifamily residential61,974 15,987 18,766 85,020 82,137 58,201 1,990 — 324,075 
YTD gross charge-offs
— — — — — — — — — 
Commercial real estate and other
Pass259,144 96,078 81,643 422,093 342,770 472,569 70,135 15,711 1,760,143 
Special mention4,018 — 2,765 13,676 1,108 17,386 6,207 — 45,160 
Substandard— — 3,161 195 1,450 10,336 — — 15,142 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial real estate and other263,162 96,078 87,569 435,964 345,328 500,291 76,342 15,711 1,820,445 
YTD gross charge-offs
— — — — 1,297 717 — — 2,014 
Commercial and industrial
Pass82,767 42,546 18,481 44,235 17,898 57,091 289,223 5,349 557,590 
Special mention— 639 33 486 11 1,747 16,191 170 19,277 
Substandard293 1,052 954 16,421 17 828 8,063 1,364 28,992 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial and industrial83,060 44,237 19,468 61,142 17,926 59,666 313,477 6,883 605,859 
YTD gross charge-offs
— — 91 3,541 163 1,179 — — 4,974 
Consumer
Pass431 873 — 649 259 — 2,215 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total consumer431 873 — 649 259 — 2,215 
YTD gross charge-offs
$— $— $— $— $3,502 $— $— $— $3,502 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
Total
Total by risk rating:
Pass$434,904 $196,478 $143,981 $608,619 $464,693 $612,812 $412,479 $26,833 $2,900,799 
Special mention4,018 639 2,798 22,132 1,119 19,133 22,398 170 72,407 
Substandard293 1,052 4,115 33,091 1,467 11,236 8,063 1,364 60,681 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total loans$439,215 $198,169 $150,894 $663,842 $467,279 $643,181 $442,940 $28,367 $3,033,887 
YTD gross charge-offs
$— $— $91 $3,541 $4,962 $1,896 $— $— $10,490 
The risk category of loans by class of loans and origination year as of December 31, 2024 follows:

Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20242023202220212020PriorTotal
December 31, 2024
Construction and land development
Pass$25,812 $25,857 $84,638 $47,687 $7,297 $2,328 $9,865 $— $203,484 
Special mention— — — — 12,431 — — — 12,431 
Substandard— — 9,659 — 1,669 82 — — 11,410 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total construction and land development25,812 25,857 94,297 47,687 21,397 2,410 9,865 — 227,325 
YTD gross charge-offs
— — 967 — — — — — 967 
Real estate - other:
1-4 family residential
Pass20,297 15,581 33,660 17,902 6,683 18,628 44,286 — 157,037 
Special mention— — — — — — — — — 
Substandard— — 2,895 — — — 4,469 — 7,364 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total 1-4 family residential20,297 15,581 36,555 17,902 6,683 18,628 48,755 — 164,401 
YTD gross charge-offs
— — — — — — — 
Multifamily residential
Pass15,998 11,087 85,834 84,671 5,107 37,510 — — 240,207 
Special mention— — — — — 3,786 — — 3,786 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
Total
Loss— — — — — — — — — 
Total multifamily residential15,998 11,087 85,834 84,671 5,107 41,296 — — 243,993 
YTD gross charge-offs
— — 1,456 — — — — — 1,456 
Commercial real estate and other
Pass111,911 86,261 454,470 399,393 100,110 453,301 104,456 148 1,710,050 
Special mention— 9,568 2,583 11,268 2,264 9,848 — 495 36,026 
Substandard— — — 11,551 — 10,100 — — 21,651 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial real estate and other111,911 95,829 457,053 422,212 102,374 473,249 104,456 643 1,767,727 
YTD gross charge-offs
— — 51 — — — — — 51 
Commercial and industrial
Pass55,350 39,484 91,049 38,303 14,663 63,973 314,284 — 617,106 
Special mention307 46 1,403 1,322 230 1,920 11,868 — 17,096 
Substandard120 1,286 20,859 2,890 — 3,543 48,070 — 76,768 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial and industrial55,777 40,816 113,311 42,515 14,893 69,436 374,222 — 710,970 
YTD gross charge-offs
— 37 24 — — — — — 61 
Consumer
Pass692 — 1,019 22,340 81 206 — 24,344 
Special mention— — — — — — — — — 
Substandard— — — 405 — — — — 405 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total consumer692 — 1,019 22,745 81 206 — 24,749 
YTD gross charge-offs
$— $— $— $238 $— $— $— $— $238 
Total by risk rating:
Pass$230,060 $178,270 $750,670 $610,296 $133,941 $575,746 $473,097 $148 $2,952,228 
Special mention307 9,614 3,986 12,590 14,925 15,554 11,868 495 69,339 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
Total
Substandard120 1,286 33,413 14,846 1,669 13,725 52,539 — 117,598 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total loans$230,487 $189,170 $788,069 $637,732 $150,535 $605,025 $537,504 $643 $3,139,165 
YTD gross charge-offs
$— $37 $2,498 $238 $— $— $$— $2,774 
Schedule of Past Due Loans and Collateral Dependent Loans
A summary of past due loans as of December 31, 2025 and 2024 follows:
Accruing Loans
(dollars in thousands)30-59 Days
Past Due
60-89 Days
Past Due
90 Days and Over
Past Due
Total
Past Due
CurrentNonaccrualTotal
December 31, 2025
Construction and land development$— $— $— $— $125,086 $13,808 $138,894 
Real estate - other:
  1-4 family residential— — — — 142,399 — 142,399 
  Multifamily residential7,970 — — 7,970 316,105 — 324,075 
  Commercial real estate and other5,838 — — 5,838 1,814,524 83 1,820,445 
Commercial and industrial 845 53 — 898 602,766 2,195 605,859 
Consumer — 29 — 29 2,186 — 2,215 
$14,653 $82 $— $14,735 $3,003,066 $16,086 $3,033,887 
Accruing Loans
(dollars in thousands)30-59 Days
Past Due
60-89 Days
Past Due
90 Days and Over
Past Due
Total
Past Due
CurrentNonaccrualTotal
December 31, 2024
Construction and land development$4,104 $— $— $4,104 $213,562 $9,659 $227,325 
Real estate - other:
  1-4 family residential40 4,469 — 4,509 156,997 2,895 164,401 
  Multifamily residential— — — — 243,993 — 243,993 
  Commercial real estate and other195 — — 195 1,758,617 8,915 1,767,727 
Commercial and industrial 1,866 1,113 — 2,979 703,074 4,917 710,970 
Consumer 69 226 150 445 24,304 — 24,749 
$6,274 $5,808 $150 $12,232 $3,100,547 $26,386 $3,139,165 
A summary of collateral dependent loans by collateral type as of December 31, 2025 and 2024 follows:
Type of Collateral
(dollars in thousands)
Commercial
Real Estate
Residential
Real Estate
Business
Assets
December 31, 2025
Construction and land development$— $13,808 $— 
Real estate - other:
  1-4 family residential— — — 
  Commercial real estate and other83 — — 
Commercial and industrial 17,330 — 250 
$17,413 $13,808 $250 
December 31, 2024
Construction and land development$— $9,659 $— 
Real estate - other:
1-4 family residential— 2,895 — 
Commercial real estate and other8,915 — — 
Commercial and industrial1,402 3,407 
$10,317 $12,554 $3,407 
Schedule of Nonaccrual Loans
A summary of total nonaccrual loans and the amount of nonaccrual loans with no related ACL as of December 31, 2025 and 2024 follows:
Nonaccrual Loans
Collateral Dependent Loans
Non-Collateral Dependent Loans
(dollars in thousands)
Balance
ACL
Balance
ACL
Total
Nonaccrual
Loans
Nonaccrual
Loans with no ACL
December 31, 2025
Construction and land development$13,808 $373 $— $— $13,808 $8,808 
Real estate - other:
  1-4 family residential— — — — — — 
  Multifamily residential— — — — — — 
  Commercial real estate and other83 — — — 83 83 
Commercial and industrial 1,865 207 330 — 2,195 553 
Consumer — — — — — — 
Total
$15,756 $580 $330 $— $16,086 $9,444 
Nonaccrual Loans
Collateral Dependent Loans
Non-Collateral Dependent Loans
(dollars in thousands)
Balance
ACL
Balance
ACL
Total
Nonaccrual
Loans
Nonaccrual
Loans with no ACL
December 31, 2024
Construction and land development$9,659 $— $— $— $9,659 $9,659 
Real estate - other:
1-4 family residential2,895 — — — 2,895 2,895 
Multifamily residential— — — — — — 
Commercial real estate and other8,915 820 — — 8,915 — 
Commercial and industrial4,809 675 108 — 4,917 108 
Consumer— — — — — — 
Total
$26,278 $1,495 $108 $— $26,386 $12,662 
Schedule of Modified Loans to Borrowers
The following table presents the period-end amortized cost basis of modified loans to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024.
Year Ended December 31, 2025
(dollars in thousands)Term ExtensionPayment DelayInterest Rate Reduction and Term ExtensionTerm Extension and Payment Delay
Total
Total as a % of Loan Class
Construction and land development$— $— $8,808 $— $8,808 6.3 %
Real estate - other:
  Multifamily residential
— — 7,970 — 7,970 2.5 %
  Commercial real estate and other
13,249 — — 3,616 16,865 0.9 %
Commercial and industrial20,101 672 — — 20,773 3.4 %
Total
$33,350 $672 $16,778 $3,616 $54,416 1.8 %
Year Ended December 31, 2024
(dollars in thousands)Term ExtensionPayment DelayInterest Rate Reduction and Term Extension
Total
Total as a % of Loan Class
Construction and land development$1,669 $— $— $1,669 0.7 %
Commercial and industrial22,452 — — 22,452 3.2 %
Total
$24,121 $— $— $24,121 0.8 %
The following tables present the financial effect of loans to borrowers experiencing financial difficulty that were modified during the years ended December 31, 2025 and 2024.
Year Ended December 31, 2025
(dollars in thousands)Financial effect
Term Extension:
Real estate - other:
Commercial real estate and other
Extended term by a weighted average of seven months
Commercial and industrial
Extended term by a weighted average of eleven months
Payment Delay:
Commercial and industrial
Weighted average of two months full payment deferrals. Upon completion of payment deferrals, weighted average of twelve months of partial payment deferrals
Interest Rate Reduction and Term Extension:
Construction and land development
Extended maturity by a weighted average of four months and reduced interest rates by a weighted average of 2.16%
Real estate - other:
Multifamily residential
Extended maturity by a weighted average of three months and reduced interest rates by a weighted average of 1.50%
Term Extension and Payment Delay:
Real estate - other:
Commercial real estate and other
Extended maturity by a weighted average of seven months, weighted average of 6 months of interest only payment, weighted average of 60 days payment deferrals. Upon completion of payment deferrals, weighted average of 12 months partial payments

Year Ended December 31, 2024
(dollars in thousands)
Financial effect
Term Extension:
Construction and land development
Extended term by a weighted average of two months
Commercial and industrial
Extended term by a weighted average of nine months
Schedule of Modified Financing Receivable, Modified, Past Due
The following tables present a payment aging analysis of the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the years ended December 31, 2025 and 2024:
Accruing Loans
(dollars in thousands)30-59
Days
Past Due
60-89
Days
Past Due
90 Days and Over
Past Due
Total
Past Due
NonaccrualCurrentTotal
December 31, 2025
Construction and land development$— $— $— $— $8,808 $— $8,808 
Real estate:
Multifamily residential7,970 — — 7,970 — — 7,970 
Commercial real estate and other— — — — — 16,865 16,865 
Commercial and industrial— — — — 330 20,443 20,773 
$7,970 $— $— $7,970 $9,138 $37,308 $54,416 
Accruing Loans
(dollars in thousands)
30-59
Days
Past Due
60-89
Days
Past Due
90 Days and Over
Past Due
Total
Past Due
NonaccrualCurrentTotal
December 31, 2024
Construction and land development$1,669 $— $— $1,669 $— $— $1,669 
Commercial and industrial— — — — 3,510 18,942 22,452 
$— $— $— $— $3,510 $18,942 $24,121 
Schedule of Changes in Allowance for Credit Losses
A summary of the changes in the ACL for loans and unfunded commitments for the periods indicated follows:
Year Ended
December 31,
(dollars in thousands)20252024
Allowance for loan losses (ALL)
Balance, beginning of year
$50,540 $22,569 
Initial allowance for acquired PCD loans
— 11,216 
(Reversal of) provision for loan losses(1)
(7,825)19,520 
Charge-offs(10,490)(2,774)
Recoveries2,123 
     Net charge-offs
(8,367)(2,765)
Balance, end of year
$34,348 $50,540 
Reserve for unfunded loan commitments
Balance, beginning of year
$3,103 $933 
(Reversal of) provision for unfunded commitment losses(2)
(998)2,170 
Balance, end of year
2,105 3,103 
Allowance for credit losses, end of year
$36,453 $53,643 
(1)Includes an initial provision for credit losses for non-PCD loans acquired in the Merger of $18.5 million for the year ended December 31, 2024. There was no similar activity in the comparable 2025 period.
(2)Includes an initial provision for credit losses for unfunded commitments acquired in the Merger of $2.7 million for the year ended December 31, 2024. There was no similar activity in the comparable 2025 period.
A summary of changes in the ALL by loan portfolio segment for the periods indicated follows:
(dollars in thousands)Construction and Land DevelopmentReal Estate -
Other
Commercial & IndustrialConsumerTotal
Year Ended December 31, 2025
Beginning of year
$1,953 $29,399 $18,056 $1,132 $50,540 
(Reversal of) provision for loan losses(749)(3,075)(6,330)2,329 (7,825)
Charge-offs— (2,014)(4,974)(3,502)(10,490)
Recoveries— 280 1,792 51 2,123 
Net charge-offs— (1,734)(3,182)(3,451)(8,367)
End of year
$1,204 $24,590 $8,544 $10 $34,348 
Year Ended December 31, 2024
Beginning of year
$2,032 $16,280 $4,242 $15 $22,569 
Initial allowance for acquired PCD loans328 2,392 8,355 141 11,216 
Provision for loan losses(1)
560 12,235 5,511 1,214 19,520 
Charge-offs(967)(1,508)(61)(238)(2,774)
Recoveries— — — 
Net charge-offs(967)(1,508)(52)(238)(2,765)
End of year
$1,953 $29,399 $18,056 $1,132 $50,540 
(1)Includes an initial provision for credit losses for non-PCD loans acquired in the Merger of $18.5 million for the year ended December 31, 2024. There was no similar activity in the comparable 2025 period.
v3.25.4
TRANSFERS AND SERVICING OF FINANCIAL ASSETS (Tables)
12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
Schedule of Change in SBA Servicing Asset
A summary of changes in the SBA servicing asset for the years ended December 31, 2025 and 2024 follows:
(dollars in thousands)20252024
Balance, beginning of period$344 $546 
Additions164 109 
Amortization (1)
(162)(311)
Balance, end of period$346 $344 
(1) Amortization included accelerated amortization of $50 thousand and $174 thousand for the years ended December 31, 2025 and 2024, respectively.
Schedule of Significant Valuation Assumptions for the SBA Servicing Asset The significant assumptions used in the valuation of the SBA servicing asset at December 31, 2025 and 2024 included:
(dollars in thousands)December 31,
2025
December 31,
2024
Discount rate:
Range
5.1% – 19.8%
5.8% – 23.3%
Weighted average12.0%14.3%
Prepayment speed:
Range
15.6% – 37.2%
12.9% – 40.2%
Weighted average19.9%20.5%
Schedule of Components of Net Servicing Fees Included in Noninterest Income
The following table presents the components of net servicing fees, included in servicing and related income on loans, net in the consolidated statements of income, for the years ended December 31, 2025 and 2024:
(dollars in thousands)20252024
Contractually specified fees$365 $380 
Amortization(162)(311)
Net servicing fees$203 $69 
v3.25.4
PREMISES AND EQUIPMENT AND LEASES (Tables)
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Premises and Equipment
A summary of premises and equipment as of December 31 follows:
(dollars in thousands)20252024
Land$5,386 $5,386 
Building4,766 4,766 
Leasehold improvements6,226 5,976 
Furniture & fixtures2,100 2,261 
Computer & other equipment4,049 3,888 
22,527 22,277 
Less: Accumulated depreciation and amortization(10,411)(8,682)
Total $12,116 $13,595 
Schedule of ROU Assets, Lease Liabilities and Supplemental Information
The ROU assets, lease liabilities and supplemental information at December 31 are shown below.

(dollars in thousands)20252024
Operating lease ROU assets(1)
$15,094 $14,350 
Operating lease liability(1)
$18,936 $18,310 
Weighted average remaining lease term, in years4.894.70
Weighted average discount rate6.3 %6.1 %
(1)Includes $7.7 million of ROU assets and $9.0 million lease liabilities obtained in connection with the Merger during the year ended December 31, 2024.
Schedule of Lease Expense The following table presents the components of lease expense for the years ended December 31:
(dollars in thousands)20252024
Lease costs:
  Operating lease$4,442 $3,528 
  Short-term lease97 — 
Total lease costs$4,539 $3,528 
Other information:
  Cash paid for amounts included in lease liabilities$5,201 $3,827 
  ROU assets obtained for new operating lease obligations$4,796 $105 
Schedule of Lease Liabilities
Lease liabilities as of December 31, 2025, mature as indicated below:
(dollars in thousands)Amount
Twelve months ending December 31:
2026$4,775 
20274,738 
20284,250 
20293,182 
20302,604 
Thereafter2,778 
Total future minimum lease payments22,327 
Less: imputed interest3,391 
Present value of net future minimum lease payments$18,936 
v3.25.4
OTHER REAL ESTATE OWNED, NET (Tables)
12 Months Ended
Dec. 31, 2025
Banking And Thrift [Abstract]  
Schedule Other Real Estate
The following table presents activity with other real estate owned, net for the years ended December 31:
(dollars in thousands)20252024
Balance, beginning of year
$4,083 $— 
Loans transferred to other real estate owned— 17,701 
Valuation allowance for losses
— (614)
Sales
(4,083)(13,004)
Balance, end of year
$— $4,083 
Schedule of Valuation Allowance for Other Real Estate Owned
The following table presents activity within the valuation allowance for other real estate owned, net for the years ended December 31:
(dollars in thousands)20252024
Balance, beginning of year
$614 $— 
Valuation allowance for losses— 614 
Sales(614)— 
Balance, end of year
$— $614 
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Goodwill
The following table presents changes in the carrying amount of goodwill for the years ended December 31:
(dollars in thousands)20252024
Beginning of the year$111,787 $37,803 
Goodwill from business combination— 74,712 
Adjustments to goodwill(1)(2)
(853)(728)
End of year$110,934 $111,787 
(1)During the year ended December 31, 2025, goodwill adjustments were related to a true-up of the low-income housing tax credit investments acquired from the Merger, offset by CALB state net operating losses that cannot be utilized post-merger and recoveries on acquired PCD loans previously charged-off prior to the Merger. These adjustments resulted in an $853 thousand decrease to goodwill.
(2)During the year ended December 31, 2024, goodwill adjustments for the Merger were related to an increase in the preliminary valuation of intangible assets, net by $300 thousand, with a net increase of $428 thousand to deferred taxes based on the change in the allocated fair value of intangible assets, net and the finalization of initial accounting for income taxes. These adjustments resulted in a $728 thousand decrease to goodwill.
Schedule of Changes in Core Deposit Intangibles
The following table presents the changes in intangibles assets, net for the years ended December 31:
(dollars in thousands)20252024
Gross balance, beginning of year$27,138 $4,185 
Additions(1)
— 22,953 
Gross balance, end of year$27,138 $27,138 
Accumulated amortization:
Balance, beginning of year$(4,867)$(2,990)
Amortization(2)
(3,791)(1,877)
Balance, end of period(8,658)(4,867)
Intangible assets, net, end of year
$18,480 $22,271 
(1)Includes $22.7 million of core deposit intangibles and $300 thousand of trade name obtained in connection with the Merger during the year ended December 31, 2024.
(2)Amortization of the core deposit intangibles and trade name obtained in connection with the merger were 10 years and 2 years, respectively, for a weighted average original term of 9.9 years.
Schedule of Future Estimated Amortization Expense
Future estimated amortization for intangible assets, net for each of the next five years is as follows:
(dollars in thousands)Amount
2026$3,138 
20272,761 
20282,465 
20292,160 
20302,003 
Thereafter5,953 
$18,480 
v3.25.4
DEPOSITS (Tables)
12 Months Ended
Dec. 31, 2025
Deposits [Abstract]  
Schedule of Scheduled Maturities of Time Deposits
At December 31, 2025, the scheduled maturities of time deposits are as follows:

(dollars in thousands)Amount
2026$126,895 
20271,205 
202820 
2029125 
2030
$128,246 
v3.25.4
BORROWING ARRANGEMENTS (Tables)
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Outstanding Borrowings
A summary of outstanding borrowings as of December 31 follows:

(dollars in thousands)20252024
FHLB advances$— $— 
Subordinated debt33,832 69,725 
Total borrowings$33,832 $69,725 
v3.25.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense The income tax expense for the years ended December 31, is comprised of the following:
(dollars in thousands)20252024
Current tax expense:
Federal$8,648 $1,290 
State4,769 1,966 
Total current tax expense13,417 3,256 
Deferred tax expense (benefit):
Federal6,997 497 
State4,485 (923)
Total deferred tax expense (benefit)11,482 (426)
Total income tax expense$24,899 $2,830 
Schedule of Cash Payments for Income Taxes, Net of Refunds Received
The following table presents cash payments for income taxes, net of refunds received, buy jurisdiction for the years ended December 31:

(dollars in thousands)20252024
Federal$4,253 $2,720 
State:
California
5,480 166 
Other states(1)
46 — 
$9,779 $2,886 
(1)Represents states that individually accounted for less than 5% of the total taxes paid, net of refunds received.
Schedule of Effective Income Tax Rate Reconciliation
A comparison of the federal statutory income tax rates to the Company’s effective income tax rates at December 31 follows:
20252024
(dollars in thousands)AmountRateAmountRate
Statutory federal income tax provision$18,471 21.0 %$1,735 21.0 %
State taxes(1)
7,310 8.3 %824 10.0 %
Tax credits:
Net expense (benefit) related to tax credit equity investment(516)(0.6)%21 0.3 %
Nontaxable or nondeductible items:
Bank owned life insurance(490)(0.6)%(367)(4.4)%
Tax exempt interest income(94)(0.1)%(218)(2.6)%
Excess executive compensation378 0.4 %533 6.4 %
Merger expenses— — %374 4.5 %
Other152 0.2 %100 1.1 %
Other adjustments:
Employee stock-based compensation(307)(0.3)%(103)(1.3)%
Other(5)— %(69)(0.8)%
$24,899 28.3 %$2,830 34.2 %
(1)State taxes in California made up the majority (greater than 50%) of the tax effect in this category.
Schedule of Components of Net Deferred Tax Assets The following is a summary of the components of the net deferred tax asset accounts recognized in the accompanying consolidated balance sheets at December 31:
(dollars in thousands)20252024
Deferred tax assets:
   Allowance for loan losses$9,895 $14,860 
   Organizational expenses89 102 
   Stock-based compensation1,383 1,626 
   Fair value adjustment on acquired loans8,894 16,833 
   Net operating loss carryforward8,050 8,939 
   Accrued expenses1,882 1,253 
   Deferred compensation2,165 1,997 
   California franchise tax1,004 412 
(dollars in thousands)20252024
   Depreciation differences
47 297 
   Operating Lease liabilities5,455 5,384 
   Unrealized loss on securities available for sale680 2,787 
   Other 1,045 1,535 
Total deferred tax assets40,589 56,025 
Deferred tax liabilities:
   Deferred loan costs(1,236)(1,169)
   Core deposit intangibles(5,589)(6,790)
   Right of use asset(4,348)(4,219)
Other(375)(720)
Total deferred tax liabilities(11,548)(12,898)
Net deferred tax assets$29,041 $43,127 
v3.25.4
EARNINGS PER SHARE (“EPS”) (Tables)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Reconciliation of Net Income and Shares Outstanding to Compute EPS
The following is a reconciliation of net income and shares outstanding to the income and number of shares used to compute EPS:

(dollars in thousands, except share and per share data)20252024
Net income$63,058 $5,433 
Weighted average common shares outstanding - basic32,391,016 24,247,064 
Dilutive effect of outstanding:
Stock options and unvested stock grants(1)
355,094 376,333 
Weighted average common shares outstanding - diluted32,746,110 24,623,397 
Earnings per common share - basic$1.95 $0.22 
Earnings per common share - diluted$1.93 $0.22 
(1)The dilutive effect of stock options and unvested stock grants is determined using the treasury method.
v3.25.4
RELATED PARTY TRANSACTIONS (Tables)
12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Schedule of Related Party Loans Outstanding
The balance of these loans outstanding and activity in related party loans for the periods ended December 31, 2025 and 2024 follows:

(dollars in thousands)20252024
Balance at beginning of year$27,734 $5,928 
Assumed in the Merger
— 22,523 
Payoffs(1,553)— 
Repayments
(1,738)(717)
Balance at end of year$24,443 $27,734 
v3.25.4
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Outstanding Financial Commitments Representing Potential Credit Risk
The Company had the following outstanding financial commitments whose contractual amount represents potential credit risk at December 31:

(dollars in thousands)20252024
Commitments to extend credit$877,525 $925,076 
Letters of credit issued to customers23,589 16,147 
Commitments to contribute capital to other equity investments7,859 5,914 
$908,973 $947,137 
v3.25.4
STOCK-BASED COMPENSATION PLAN (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Changes in Outstanding Stock Options
A summary of changes in outstanding stock options during the years ended December 31, 2025 and 2024 are presented below:
(dollars in thousands, except share data)SharesWeighted
Average
Exercise
Price
Weighted Average Remaining Contractual TermAggregate Intrinsic
Value
December 31, 2025
Outstanding at beginning of year136,888 $9.64 
Granted— $— 
Exercised(18,013)$7.34 
Expired— $— 
Forfeited — $— 
Outstanding at end of year118,875 $9.98 2.0 Years$1,033 
Options exercisable117,325 $9.97 2.0 Years$1,021 

(dollars in thousands, except share data)SharesWeighted
Average
Exercise
Price
Weighted Average Remaining Contractual TermAggregate Intrinsic
Value
December 31, 2024
Outstanding at beginning of year272,813 $9.30 
Granted— $— 
Exercised(112,275)$8.47 
Expired(750)$5.93 
Forfeited (22,900)$11.48 
Outstanding at end of year136,888 $9.64 2.8 Years$945 
Options exercisable132,388 $9.61 2.7 Years$918 
Schedule of Changes in Outstanding Unvested Restricted Stock Units
A summary of the changes in outstanding unvested restricted stock units during the years ended December 31, 2025 and 2024 is presented below:

December 31, 2025
Restricted
Shares
Weighted Average Grant Date Fair Value
Unvested at beginning of year1,048,899 $14.73 
Granted201,139 $15.71 
Vested(503,406)$13.92 
Forfeited (32,727)$16.12 
Unvested at end of year713,905 $15.51 


December 31, 2024
Restricted
Shares
Weighted Average Grant Date Fair Value
Unvested at beginning of year637,899 $13.11 
Granted(1)
958,016 $15.49 
Vested(2)
(430,179)$13.78 
Forfeited (116,837)$15.69 
Unvested at end of year1,048,899 $14.73 
(1)Includes 418,634 shares granted as replacement awards to continuing and non-continuing directors, executives and employees in connection with the Merger for the year ended December 31, 2024. The fair value of these replacement awards attributable to post-combination vesting a) will be recognized over the remaining vesting period for continuing directors, executives and employees and b) was immediately recognized for non-continuing directors, executives and employees as components of compensation expense.
(2)Includes the discretionary vesting of 123,123 replacement awards issued in connection with the Merger for non-continuing directors, executives and employees for the year ended December 31, 2024.
v3.25.4
REGULATORY MATTERS (Tables)
12 Months Ended
Dec. 31, 2025
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Schedule of Capital Amounts and Ratios
The following table also sets forth the Bank’s actual capital amounts and ratios:
Amount of Capital Required
To beTo be Well-
AdequatelyCapitalized under
ActualCapitalizedPCA Provisions
(dollars in thousands)AmountRatioAmountRatioAmountRatio
As of December 31, 2025:
California BanCorp:
Total Capital (to Risk-Weighted Assets)$519,772 14.86 %$279,836 8.0 %N/AN/A
Tier 1 Capital (to Risk-Weighted Assets)451,511 12.91 %209,877 6.0 %N/AN/A
CET1 Capital (to Risk-Weighted Assets)451,511 12.91 %157,408 4.5 %N/AN/A
Tier 1 Capital (to Average Assets)451,511 11.27 %160,304 4.0 %N/AN/A
California Bank of Commerce, N.A.:
Total Capital (to Risk-Weighted Assets)$497,919 14.24 %$279,707 8.0 %$349,634 10.0 %
Tier 1 Capital (to Risk-Weighted Assets)463,490 13.26 %209,780 6.0 %279,707 8.0 %
CET1 Capital (to Risk-Weighted Assets)463,490 13.26 %157,335 4.5 %227,262 6.5 %
Tier 1 Capital (to Average Assets)463,490 11.57 %160,210 4.0 %200,262 5.0 %
As of December 31, 2024:
California BanCorp:
Total Capital (to Risk-Weighted Assets)$496,912 13.67 %$290,897 8.0 %N/AN/A
Tier 1 Capital (to Risk-Weighted Assets)$385,354 10.60 %$218,173 6.0 %N/AN/A
CET1 Capital (to Risk-Weighted Assets)$385,354 10.60 %$163,630 4.5 %N/AN/A
Tier 1 Capital (to Average Assets)$385,354 9.53 %$161,710 4.0 %N/AN/A
California Bank of Commerce, N.A.:
Total Capital (to Risk-Weighted Assets)$492,433 13.55 %$290,753 8.0 %$363,441 10.0 %
Tier 1 Capital (to Risk-Weighted Assets)450,600 12.40 %218,065 6.0 %290,753 8.0 %
CET1 Capital (to Risk-Weighted Assets)450,600 12.40 %163,548 4.5 %236,237 6.5 %
Tier 1 Capital (to Average Assets)450,600 11.15 %161,689 4.0 %202,111 5.0 %
v3.25.4
FAIR VALUE (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Hierarchy and Fair Value of Financial Instruments
The estimated fair value hierarchy level and estimated fair value of financial instruments at December 31, 2025 and 2024, is summarized as follows:

20252024
EstimatedEstimated
Fair ValueCarryingFairCarryingFair
(dollars in thousands)HierarchyValueValue ValueValue
Financial assets:
Cash and due from banksLevel 1$52,013 $52,013 $60,471 $60,471 
Federal funds and interest-bearing balances
Level 1347,900 347,900 327,691 327,691 
Debt securities available for saleLevel 1/2234,890 234,890 142,001 142,001 
Debt securities held to maturityLevel 252,936 49,308 53,280 47,823 
Loans held for saleLevel 225,105 25,566 17,180 17,855 
Loans held for investment, netLevel 32,999,539 3,000,768 3,088,625 3,080,175 
Restricted stock, at costLevel 230,932 30,932 30,829 30,829 
Other equity securitiesLevel 214,760 14,760 13,691 13,691 
Accrued interest receivableLevel 211,115 11,115 12,824 12,824 
Financial liabilities:
DepositsLevel 23,370,581 3,370,456 3,398,760 3,398,447 
BorrowingsLevel 233,832 34,149 69,725 69,876 
Accrued interest payableLevel 2679 679 4,342 4,342 
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis
The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024:

Recurring Fair Value Measurements
(dollars in thousands)Level 1Level 2Level 3Total
December 31, 2025
Securities available for sale:
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities$— $161,016 $— $161,016 
SBA securities— 3,816 — 3,816 
U.S. Treasury2,472 — — 2,472 
U.S. Agency— 1,793 — 1,793 
Collateralized mortgage obligations— 64,855 — 64,855 
Taxable municipals
— 938 — 938 
$2,472 $232,418 $— $234,890 
December 31, 2024
Securities available for sale:
U.S. government and agency and government sponsored enterprise securities:
Mortgage-backed securities$— $83,274 $— $83,274 
SBA securities— 5,333 — 5,333 
U.S. Treasury12,326 — — 12,326 
U.S. Agency— 1,670 — 1,670 
Collateralized mortgage obligations— 37,663 — 37,663 
Taxable municipals
— 909 — 909 
Tax exempt bank-qualified municipals— 826 — 826 
$12,326 $129,675 $— $142,001 
Schedule of Fair Value Measurements, Nonrecurring
The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2025.
Fair Value Measurement Level
Quoted Prices in
Active Markets forSignificant OtherSignificant
FairIdentical AssetsObservable InputsUnobservable Inputs
(dollars in thousands)Value(Level 1)(Level 2)(Level 3)
December 31, 2025
Collateral dependent loans (1):
Construction and Land$13,908 $— $— $13,908 
1-4 Family Residential— — — — 
Multifamily Residential— — — — 
Commercial real estate and other— — — — 
Commercial and industrial— — — — 
Total collateral dependent loans
$13,908 $— $— $13,908 
December 31, 2024
Collateral dependent loans (1):
Construction and Land$9,708 $— $— $9,708 
1-4 Family Residential4,191 — — 4,191 
Commercial real estate and other14,316 — — 14,316 
Commercial and industrial6,476 — — 6,476 
Total collateral dependent loans
$34,691 $— $— $34,691 
Foreclosed assets:
Other real estate owned, net$4,083 $— $— $4,083 
(1) Collateral-dependent loans whose fair value is based upon appraisals.
Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis are summarized below as of December 31, 2025. The balance as of December 31, 2024 included $20.8 million in PCD loans.
Asset FairValuationUnobservableRange %
(dollars in thousands)ValueTechniqueInput(Weighted Average)
December 31, 2025
Collateral dependent loans
Construction and Land$9,281 Fair value of propertyCost to sell
7.19% – 7.19% (7.19%)
4,627 Fair value of landCost to sell
7.64% - 7.64% (7.64%)
Total collateral dependent loans$13,908 
December 31, 2024
Collateral dependent loans
Construction and Land$9,708 Fair value of propertyCost to sell
7.50%-7.50% (7.50%)
1-4 Family Residential4,191 Fair value of propertyCost to sell
7.50%-7.50% (7.50%)
Commercial real estate and other14,316 Fair value of propertyDiscount to appraised values
18.13%-30.00% (19.70%)
Costs to sell
7.50%-7.50% (7.50%)
14,316 
Commercial and industrial5,582 Fair value of collateralDiscount to appraised values
20.00%-60.00% (27.37%)
Costs to sell
7.50%-7.50% (7.50%)
894 Fair value of propertyCosts to sell
8.00%-10.00% (8.62%)
6,476 
Total collateral dependent loans$34,691 
Other real estate owned, net$4,083 Market approachCost to sell
7.50%-7.50% (7.50%)
v3.25.4
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY (Tables)
12 Months Ended
Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract]  
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS

December 31,
(dollars in thousands)20252024
ASSETS
Cash $21,377 $4,098 
Investment in bank Subsidiary
591,819 577,083 
Other investments2,005 1,610 
Accrued interest and other assets380 
Total assets$615,209 $583,171 
LIABILITIES
Subordinated debt and other borrowings$33,832 $69,725 
Accrued interest and other liabilities4,791 1,610 
Total liabilities38,623 71,335 
SHAREHOLDERS’ EQUITY
   Common stock 442,394 442,469 
   Retained earnings 135,813 76,008 
   Accumulated other comprehensive loss, net of taxes
(1,621)(6,641)
Total shareholders’ equity576,586 511,836 
Total liabilities and shareholders’ equity$615,209 $583,171 
CONDENSED STATEMENTS OF INCOME
CONDENSED STATEMENTS OF INCOME
Year Ended December 31,
(dollars in thousands)20252024
INCOME
Other interest and dividends$11 $— 
Dividends from bank subsidiary60,000 — 
Total income60,011 — 
EXPENSES
Interest on borrowings4,628 2,950 
Other noninterest expense463 535 
Total expenses5,091 3,485 
Income (loss) before income taxes54,920 (3,485)
Income tax benefit
1,581 1,071 
Income (loss) before equity in undistributed earnings of bank subsidiary56,501 (2,414)
Equity in undistributed earnings of bank subsidiary
6,557 7,847 
Net income$63,058 $5,433 
CONDENSED STATEMENTS OF CASH FLOWS
CONDENSED STATEMENTS OF CASH FLOWS

Year Ended December 31,
(dollars in thousands)20252024
OPERATING ACTIVITIES
Net Income$63,058 $5,433 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of debt issuance costs and discounts
2,107 1,028 
Equity in undistributed earnings of bank subsidiary(6,557)(7,847)
Other items 3,549 (168)
Net cash provided by (used in) operating activities62,157 (1,554)
INVESTING ACTIVITIES
Net purchase of other equity investments(391)(329)
Cash acquired in business combination
— 1,445 
Net cash (used in) provided by investing activities(391)1,116 
FINANCING ACTIVITIES
Repayment of subordinated debt(38,000)— 
Repurchases of common shares(3,366)— 
Common stock dividends(3,253)— 
Proceeds from exercise of stock options132 950 
Net cash (used in) provided by financing activities(44,487)950 
Increase in cash and cash equivalents
17,279 512 
Cash and cash equivalents, beginning of year4,098 3,586 
Cash and cash equivalents, end of year$21,377 $4,098 
v3.25.4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
12 Months Ended
Jul. 31, 2024
Dec. 31, 2025
USD ($)
segment
investment
reporting_unit
office
officer
Dec. 31, 2024
USD ($)
Jul. 31, 2024
full_service_bank_branch
Jul. 31, 2024
loan_production_office
Jul. 31, 2024
branch
Dec. 31, 2023
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Number of branch offices | office   14          
Number of commercial banking offices | office   11          
Number of reportable segments | segment   1          
Number of reporting units | reporting_unit   1          
Number of operating Segments | segment   1          
CODM role share by executive officers | officer   3          
Number of capital stock investments | investment   2          
Separate allowance for credit losses for off-balance sheet commitments   $ 2,105,000 $ 3,103,000       $ 933,000
401(k) matching contributions, percent of salary   4.00%          
401(k) contribution expense   $ 1,500,000 950,000        
Accrued vacation   2,200,000 2,000,000.0        
Advertising cost   969,000 597,000        
Reclassification of loss recognized in net income   0 0        
Goodwill impairment   0 $ 0        
Litigation settlements   2,000,000.0          
Gross settlement   5,400,000          
Insurance reimbursements   $ 3,400,000          
Trade name              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Intangibles assets, amortization period   2 years          
Core Deposit Intangible              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Intangibles assets, amortization period   10 years          
Construction and land development              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Maximum LTV ratio   75.00%          
Consumer | Installment Loan              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Loan term   5 years          
Minimum | Furniture and Equipment              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Estimated useful lives   3 years          
Minimum | Building              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Estimated useful lives   45 years          
Minimum | Construction and land development              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Loan term   12 months          
Maximum | Furniture and Equipment              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Estimated useful lives   7 years          
Maximum | Building              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Estimated useful lives   55 years          
Maximum | Construction and land development              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Loan term   36 months          
CALB              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Number of properties acquired | branch           14  
CALB | Core Deposit Intangible              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Intangibles assets, amortization period 10 years            
CALB | Minimum | Consumer | Solar Loan              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Loan term 10 years            
CALB | Maximum | Consumer | Solar Loan              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Loan term 20 years            
Northern California | CALB              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Number of properties acquired       1 4    
Southern California | CALB              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Number of properties acquired | full_service_bank_branch       13      
v3.25.4
BUSINESS COMBINATIONS - Narrative (Details)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended 14 Months Ended
Jul. 31, 2024
USD ($)
shares
Jul. 30, 2024
USD ($)
Sep. 30, 2024
shares
Dec. 31, 2025
USD ($)
shares
Jul. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
shares
Sep. 30, 2025
USD ($)
Jul. 31, 2024
full_service_bank_branch
Jul. 31, 2024
loan_production_office
Jul. 31, 2024
branch
Jul. 31, 2024
$ / shares
Jul. 31, 2024
Business Combination [Line Items]                        
Share price (in dollars per share) | $ / shares                     $ 15.79  
Issuance of common stock in business combination (in shares) | shares     13,579,454                  
Adjustments to goodwill       $ 853   $ 728            
Effective income tax rate       28.30%   34.20%            
Core Deposit Intangible                        
Business Combination [Line Items]                        
Intangibles assets, amortization period       10 years                
Common Stock and Additional Paid in Capital                        
Business Combination [Line Items]                        
Issuance of common stock in business combination (in shares) | shares 13,497,091                      
CALB                        
Business Combination [Line Items]                        
Number of properties acquired | branch                   14    
Total purchase consideration $ 216,638                      
Share price (in dollars per share) | $ / shares                     $ 15.79  
Exchange ratio                       1.590
Fair value of stock and equity award consideration $ 213,944                      
Payment of in-the-money stock options   $ 1,700                    
Adjustments to goodwill         $ 1,600   $ 1,581          
Effective income tax rate 29.56%                      
CALB | Core Deposit Intangible                        
Business Combination [Line Items]                        
Intangibles assets, amortization period 10 years                      
CALB | Restricted Stock Units                        
Business Combination [Line Items]                        
Stock-based compensation cost $ 1,100                      
CALB | Former Non-Continuing Directors, Officers And Employees                        
Business Combination [Line Items]                        
Number of shares issued (in shares) | shares 82,364                      
CALB | Former Non-Continuing Directors, Officers And Employees | Restricted Stock Units                        
Business Combination [Line Items]                        
Number of shares issued (in shares) | shares       123,123   123,123            
Fair value of stock and equity award consideration $ 1,900 825                    
CALB | Former Continuing Directors, Officers And Employees | Restricted Stock Units                        
Business Combination [Line Items]                        
Number of shares issued (in shares) | shares 295,512                      
Fair value of stock and equity award consideration $ 4,700 $ 1,300                    
Stock-based compensation cost $ 3,400                      
Northern California | CALB                        
Business Combination [Line Items]                        
Number of properties acquired               1 4      
Southern California | CALB                        
Business Combination [Line Items]                        
Number of properties acquired | full_service_bank_branch               13        
v3.25.4
BUSINESS COMBINATIONS - Schedule of Adjustments to Goodwill Acquired (Details) - USD ($)
$ in Thousands
12 Months Ended 14 Months Ended
Dec. 31, 2025
Jul. 31, 2025
Dec. 31, 2024
Sep. 30, 2025
Goodwill [Roll Forward]        
Beginning of the year $ 111,787   $ 37,803  
Adjustments to goodwill acquired in connection with the Merger (853)   (728)  
End of year $ 110,934   $ 111,787  
CALB        
Goodwill [Roll Forward]        
Beginning of the year   $ 74,712   $ 74,712
Adjustments to goodwill acquired in connection with the Merger   $ (1,600)   (1,581)
End of year       $ 73,131
v3.25.4
BUSINESS COMBINATIONS- Schedule of Final Fair Value of Assets Acquired and Liabilities (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Jul. 31, 2024
USD ($)
$ / shares
shares
Jul. 30, 2024
USD ($)
Dec. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Sep. 30, 2025
USD ($)
Dec. 31, 2023
USD ($)
$ / shares
Purchase consideration:            
Outstanding shares of CALB (in shares) | shares     32,418,182 32,265,935    
Shares of BCAL common stock issued to CBC shareholders at closing (in shares) | shares 13,620,214          
BCAL closing price per share, July 31, 2024 (in dollars per share) | $ / shares $ 15.79          
Cash consideration     $ 0 $ 1,433    
Goodwill     $ 110,934 $ 111,787   $ 37,803
Weighted average exercise price (in dollars per share) | $ / shares     $ 9.98 $ 9.64   $ 9.30
CALB            
Purchase consideration:            
Outstanding shares of CALB (in shares) | shares 8,488,829          
Shares of CALB common stock exchanged (in shares) | shares 8,566,265          
CALB | Restricted Stock Units            
Purchase consideration:            
Restricted stock units vested fully at merger closing (in shares) | shares 77,436          
Accelerated vesting of awards (in shares) | shares 77,436          
Number of shares withheld for taxes (in shares) | shares 25,635          
CALB | Restricted Stock Units | Non-continuing Directors            
Purchase consideration:            
Restricted stock units vested fully at merger closing (in shares) | shares 5,596          
CALB | Restricted Stock Units | Non-continuing Executives and Employees            
Purchase consideration:            
Restricted stock units vested fully at merger closing (in shares) | shares 71,840          
CALB            
Assets acquired:            
Cash and cash equivalents $ 336,298 $ 336,298     $ 336,298  
Debt securities, available-for-sale 42,560 42,560     42,560  
Loans held for investment 1,359,040          
Allowance for credit losses - PCD loans (10,022)          
Restricted stock 6,328 6,328     6,328  
Other equity securities 6,596          
Premises and equipment 1,670 1,670     1,670  
Operating lease right-of-use asset 7,743     $ 7,700    
Prepaid expenses 876          
Deferred taxes, net 30,149 30,221     30,149  
Bank owned life insurance 26,338          
Other assets 35,040          
Total assets acquired 1,865,569          
Liabilities assumed:            
Deposits 1,642,938 1,642,938     1,642,938  
Borrowings 50,832 50,832     50,832  
Operating lease liabilities 9,033     9,000    
Other liabilities 19,259          
Total liabilities assumed 1,722,062 1,722,062     1,722,062  
Net assets acquired $ 143,507          
Purchase consideration:            
Exchange ratio 1.590          
Shares of BCAL common stock issued to CALB shareholders at closing, before fractional shares (in shares) | shares 13,620,361          
Less: fractional shares (in shares) | shares (147)          
BCAL closing price per share, July 31, 2024 (in dollars per share) | $ / shares $ 15.79          
Fair value of common shares issued and exchanged $ 215,063          
Less: fair value of accelerated restricted stock units attributable to post-combination vesting (1,119)   $ (1,100)      
Fair value of common shares issued and exchanged attributable to purchase consideration 213,944          
Total purchase consideration 216,638          
Goodwill $ 74,712 74,712     $ 73,131  
CALB | $18.22            
Purchase consideration:            
Vested stock options (in shares) | shares 283,641          
CALB | Restricted Stock Units            
Purchase consideration:            
Cash consideration       1,300    
Number of awards issued. before shares are withheld for taxes (in shares) | shares 51,801          
CALB | Restricted Stock Units | Former Continuing Directors, Officers And Employees            
Purchase consideration:            
Fair value of common shares issued and exchanged attributable to purchase consideration $ 4,700 $ 1,300        
Business combination, consideration transferred, attributable to post-combination replacement awards, number of shares (in shares) | shares 185,878          
CALB | Restricted Stock Units | Executive Officer            
Purchase consideration:            
Less: fair value of accelerated restricted stock units attributable to post-combination vesting $ (472)          
Accelerated vesting of awards (in shares) | shares 31,355          
CALB | Restricted Stock Units | Former Continuing Directors, Officers And Employees            
Purchase consideration:            
Business combination, forfeiture rate 3.00%          
CALB | Stock Options            
Purchase consideration:            
Cash consideration $ 1,431          
Business acquisition, unvested option cashout price (in dollars per share) | $ / shares $ 22.98          
Share-based compensation arrangement by share-based payment award, options, nonvested options cancelled, number of shares (in shares) | shares 65,785          
Share-based compensation arrangements by share-based payment award, options, cancelled in period, exercise price (in dollars per share) | $ / shares $ 23.81          
CALB | Stock Options | $18.22            
Purchase consideration:            
Cash consideration $ 1,300          
Weighted average exercise price (in dollars per share) | $ / shares $ 18.22          
CALB | Stock Options | $19.03            
Purchase consideration:            
Cash consideration $ 82          
Unvested stock option (in shares) | shares 92,685          
Weighted average exercise price, options, nonvested (in dollars per share) | $ / shares $ 19.03          
CALB | Post-Combination Stock Option            
Purchase consideration:            
Cash consideration $ 284          
CALB | Fractional Shares            
Purchase consideration:            
Cash consideration 2          
CALB | Restricted Stock            
Purchase consideration:            
Cash consideration 1,261          
CALB | Trade name            
Assets acquired:            
Intangible assets 300     $ 300    
CALB | Core Deposit Intangible            
Assets acquired:            
Intangible assets $ 22,653          
v3.25.4
BUSINESS COMBINATIONS - Schedule of Purchased Credit Deteriorated Loans (Details) - CALB
$ in Thousands
Jul. 31, 2024
USD ($)
Business Combination [Line Items]  
Unpaid principal balance $ 111,720
Allowance for credit losses - PCD loans (11,216)
Non-credit discount amount (5,107)
Loans previously charged-off by CALB (10,171)
PCD loans acquired $ 85,226
v3.25.4
BUSINESS COMBINATIONS - Schedule of Acquisition-Related Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Business Combination [Line Items]    
Total acquisition-related costs $ 0 $ 16,288
CALB    
Business Combination [Line Items]    
Financial advisory fees   2,576
Legal, accounting, valuation and other professional costs   874
Information technology   5,218
Change in control costs/severance   6,238
Insurance   919
Other   463
Total acquisition-related costs   $ 16,288
v3.25.4
BUSINESS COMBINATIONS - Schedule of Measurement Period Adjustments (Details) - USD ($)
$ in Thousands
12 Months Ended 14 Months Ended
Dec. 31, 2025
Jul. 31, 2025
Dec. 31, 2024
Sep. 30, 2025
Jul. 31, 2024
Jul. 30, 2024
Dec. 31, 2023
Business Combination [Line Items]              
Goodwill $ 110,934   $ 111,787       $ 37,803
Measurement Period Adjustments              
Goodwill $ (853)   (728)        
CALB              
Business Combination [Line Items]              
Cash and due from banks       $ 336,298 $ 336,298 $ 336,298  
Debt securities       42,560 42,560 42,560  
Loans       1,349,018   1,347,824  
Investments in restricted stocks       6,328 6,328 6,328  
Premises and Equipment, net       1,670 1,670 1,670  
Deferred taxes, net       30,149 30,149 30,221  
Goodwill       73,131 74,712 74,712  
Other Assets       76,593   76,434  
Total assets acquired       1,938,700   1,938,700  
Total assets       0      
Deposits       1,642,938 1,642,938 1,642,938  
Borrowings       50,832 50,832 50,832  
Other Liabilities       28,292   28,292  
Total liabilities assumed       1,722,062 $ 1,722,062 1,722,062  
Measurement Period Adjustments              
Loans       1,194      
Deferred Taxes, net     $ 428 (72)      
Goodwill   $ (1,600)   (1,581)      
Other Assets       159      
CALB | Trade name              
Business Combination [Line Items]              
Intangible assets       300   0  
Measurement Period Adjustments              
Intangible assets       300      
CALB | Core Deposit Intangible              
Business Combination [Line Items]              
Intangible assets       $ 22,653   $ 22,653  
v3.25.4
INVESTMENT SECURITIES - Schedule of Amortized Cost and Fair Value of Held-to-Maturity Debt Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Schedule of Held-to-Maturity Securities [Line Items]    
Amortized Cost $ 52,936 $ 53,280
Gross Unrecognized Gains 0 0
Gross Unrecognized Losses (3,628) (5,457)
Estimated Fair Value 49,308 47,823
Taxable municipals    
Schedule of Held-to-Maturity Securities [Line Items]    
Amortized Cost 555 553
Gross Unrecognized Gains 0 0
Gross Unrecognized Losses (63) (90)
Estimated Fair Value 492 463
Tax exempt bank-qualified municipals    
Schedule of Held-to-Maturity Securities [Line Items]    
Amortized Cost 52,381 52,727
Gross Unrecognized Gains 0 0
Gross Unrecognized Losses (3,565) (5,367)
Estimated Fair Value $ 48,816 $ 47,360
v3.25.4
INVESTMENT SECURITIES - Schedule of Amortized Cost and Fair Value of Available-for-Sale Debt Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost $ 237,191 $ 151,429
Gross Unrealized Gains 2,506 144
Gross Unrealized Losses (4,807) (9,572)
Estimated Fair Value 234,890 142,001
Mortgage-backed securities    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 161,376 87,930
Gross Unrealized Gains 2,041 109
Gross Unrealized Losses (2,401) (4,765)
Estimated Fair Value 161,016 83,274
SBA securities    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 3,862 5,423
Gross Unrealized Gains 8 7
Gross Unrealized Losses (54) (97)
Estimated Fair Value 3,816 5,333
U.S. Treasury    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 2,654 12,624
Gross Unrealized Gains 0 17
Gross Unrealized Losses (182) (315)
Estimated Fair Value 2,472 12,326
U.S. Agency    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 2,000 2,000
Gross Unrealized Gains 0 0
Gross Unrealized Losses (207) (330)
Estimated Fair Value 1,793 1,670
Collateralized mortgage obligations    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 66,293 41,615
Gross Unrealized Gains 457 11
Gross Unrealized Losses (1,895) (3,963)
Estimated Fair Value 64,855 37,663
Taxable municipals    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 1,006 1,007
Gross Unrealized Gains 0 0
Gross Unrealized Losses (68) (98)
Estimated Fair Value 938 909
Tax exempt bank-qualified municipals    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost   830
Gross Unrealized Gains   0
Gross Unrealized Losses   (4)
Estimated Fair Value $ 0 $ 826
v3.25.4
INVESTMENT SECURITIES - Narrative (Details)
12 Months Ended
Dec. 31, 2025
USD ($)
security
investment
Dec. 31, 2024
USD ($)
security
investment
Jul. 31, 2024
USD ($)
Debt Securities, Available-for-Sale [Line Items]      
Accrued interest receivable on debt securities $ 1,100,000 $ 879,000  
Debt securities available-for-sale, amortized cost 237,191,000 151,429,000  
Held-to-maturity debt securities pledged as collateral 52,936,000 53,280,000  
Gross realized gains (losses) for sales and calls of available-for-sale debt securities $ 0 $ 0  
Number of available-for-sale debt securities in a gross unrealized loss position | security 78 89  
Available-for-sale debt securities in a gross unrealized loss position $ 4,807,000 $ 9,572,000  
Number of available-for-sale debt securities with total unrealized losses in a continual loss position for 12 months or longer | security 63 64  
Unrealized losses in a continual loss position for 12 months or longer $ 4,443,000 $ 7,632,000  
Net unrealized loss on available-for-sale debt securities 2,300,000 9,400,000  
AOCI, debt securities, available-for-sale, adjustment, after tax (1,600,000) (6,600,000)  
Estimated Fair Value $ 234,890,000 $ 142,001,000  
Number of held-to-maturity debt securities | security 61 61  
Debt securities held-to-maturity, unrealized loss position, fair value $ 49,300,000 $ 47,800,000  
Unrealized losses on held-to-maturity debt securities 3,628,000 5,457,000  
Provision for credit losses on available-for-sale debt securities 0 0  
Provision for credit losses on held-to-maturity debt securities 0 0  
Federal Reserve Bank stock purchased 103,000 8,100,000  
FHLB stock purchased $ 0 $ 820,000  
Number of banker's ban stocks invested in | investment 2 2  
CALB      
Debt Securities, Available-for-Sale [Line Items]      
FHLB stock purchased   $ 5,900,000  
Standard & Poor's, AA Rating And Above      
Debt Securities, Available-for-Sale [Line Items]      
Debt securities, held-to-maturity, amortized cost, before allowance for credit Loss $ 46,000,000.0 44,700,000  
Standard & Poor's, AA- Rating      
Debt Securities, Available-for-Sale [Line Items]      
Debt securities, held-to-maturity, amortized cost, before allowance for credit Loss 3,300,000 3,200,000  
Taxable municipals      
Debt Securities, Available-for-Sale [Line Items]      
Debt securities available-for-sale, amortized cost 1,006,000 1,007,000  
Held-to-maturity debt securities pledged as collateral 555,000 553,000  
Available-for-sale debt securities in a gross unrealized loss position 68,000 98,000  
Unrealized losses in a continual loss position for 12 months or longer 68,000 98,000  
Estimated Fair Value 938,000 909,000  
Unrealized losses on held-to-maturity debt securities 63,000 90,000  
Tax exempt bank-qualified municipals      
Debt Securities, Available-for-Sale [Line Items]      
Debt securities available-for-sale, amortized cost   830,000  
Held-to-maturity debt securities pledged as collateral 52,381,000 52,727,000  
Available-for-sale debt securities in a gross unrealized loss position   4,000  
Unrealized losses in a continual loss position for 12 months or longer   4,000  
Estimated Fair Value 0 826,000  
Unrealized losses on held-to-maturity debt securities 3,565,000 5,367,000  
Other Bank Stock      
Debt Securities, Available-for-Sale [Line Items]      
Equity securities without readily determinable fair values 819,000 819,000  
Impairment loss from change in fair value of other equity securities 0 0  
Other Bank Stock | CALB      
Debt Securities, Available-for-Sale [Line Items]      
Equity securities without readily determinable fair values     $ 468,000
Other Equity Investments      
Debt Securities, Available-for-Sale [Line Items]      
Equity securities without readily determinable fair values 9,100,000 7,100,000  
Impairment loss from change in fair value of other equity securities 0 0  
Investment company, committed capital, unfunded 7,500,000    
Net capital contributions made (distributions received) (315,000) (2,000,000.0)  
Income recorded 2,300,000 133,000  
Limited Partnership      
Debt Securities, Available-for-Sale [Line Items]      
Affordable housing projects, aggregate funding commitment 4,800,000 5,800,000  
Affordable housing projects, unfunded portion of commitment 382,000 1,800,000  
Impairment loss from change in fair value of affordable housing project investment 0 0  
Asset Pledged as Collateral | Deposits      
Debt Securities, Available-for-Sale [Line Items]      
Debt securities available-for-sale, amortized cost 27,600,000 3,000,000.0  
Asset Pledged as Collateral | Federal Reserve Bank Advances      
Debt Securities, Available-for-Sale [Line Items]      
Held-to-maturity debt securities pledged as collateral 52,900,000 53,300,000  
Asset Pledged as Collateral | Letter of Credit      
Debt Securities, Available-for-Sale [Line Items]      
Debt securities available-for-sale, amortized cost $ 15,000,000.0 $ 9,900,000  
v3.25.4
INVESTMENT SECURITIES - Schedule of Debt Securities Classified by Contractual Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Held-to-Maturity, Amortized Cost    
Due in one year or less $ 0  
Due after one year through five years 0  
Due after five years through ten years 37,796  
Due after ten years 15,140  
Amortized Cost 52,936 $ 53,280
Held-to-Maturity, Estimated Fair Value    
Due in one year or less 0  
Due after one year through five years 0  
Due after five years through ten years 35,423  
Due after ten years 13,885  
Held-to-Maturity, Estimated Fair Value 49,308 47,823
Available-for-Sale, Amortized Cost    
Due in one year or less 23  
Due after one year through five years 11,777  
Due after five years through ten years 13,684  
Due after ten years 211,707  
Amortized Cost 237,191 151,429
Available-for-Sale, Estimated Fair Value    
Due in one year or less 23  
Due after one year through five years 11,152  
Due after five years through ten years 12,768  
Due after ten years 210,947  
Available-for-Sale, Estimated Fair Value $ 234,890 $ 142,001
v3.25.4
INVESTMENT SECURITIES - Schedule of Gross Unrealized Losses and Estimated Fair Values of Available-for-Sale Debt Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Less than 12 months, gross unrealized losses $ (364) $ (1,940)
Less than 12 months, estimated fair value 55,638 56,638
12 months or longer, gross unrealized losses (4,443) (7,632)
12 months or longer, estimated fair value 61,476 57,985
Total, gross unrealized losses (4,807) (9,572)
Total, estimated fair value 117,114 114,623
Mortgage-backed securities    
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Less than 12 months, gross unrealized losses (329) (1,659)
Less than 12 months, estimated fair value 47,667 47,792
12 months or longer, gross unrealized losses (2,072) (3,106)
12 months or longer, estimated fair value 28,726 20,692
Total, gross unrealized losses (2,401) (4,765)
Total, estimated fair value 76,393 68,484
SBA securities    
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Less than 12 months, gross unrealized losses 0 (2)
Less than 12 months, estimated fair value 0 924
12 months or longer, gross unrealized losses (54) (95)
12 months or longer, estimated fair value 2,813 3,011
Total, gross unrealized losses (54) (97)
Total, estimated fair value 2,813 3,935
U.S. Treasury    
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Less than 12 months, gross unrealized losses 0 0
Less than 12 months, estimated fair value 0 0
12 months or longer, gross unrealized losses (182) (315)
12 months or longer, estimated fair value 2,472 2,392
Total, gross unrealized losses (182) (315)
Total, estimated fair value 2,472 2,392
U.S. Agency    
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Less than 12 months, gross unrealized losses 0 0
Less than 12 months, estimated fair value 0 0
12 months or longer, gross unrealized losses (207) (330)
12 months or longer, estimated fair value 1,793 1,670
Total, gross unrealized losses (207) (330)
Total, estimated fair value 1,793 1,670
Collateralized mortgage obligations    
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Less than 12 months, gross unrealized losses (35) (279)
Less than 12 months, estimated fair value 7,971 7,922
12 months or longer, gross unrealized losses (1,860) (3,684)
12 months or longer, estimated fair value 25,234 28,985
Total, gross unrealized losses (1,895) (3,963)
Total, estimated fair value 33,205 36,907
Taxable municipals    
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Less than 12 months, gross unrealized losses 0 0
Less than 12 months, estimated fair value 0 0
12 months or longer, gross unrealized losses (68) (98)
12 months or longer, estimated fair value 438 409
Total, gross unrealized losses (68) (98)
Total, estimated fair value $ 438 409
Tax exempt bank-qualified municipals    
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]    
Less than 12 months, gross unrealized losses   0
Less than 12 months, estimated fair value   0
12 months or longer, gross unrealized losses   (4)
12 months or longer, estimated fair value   826
Total, gross unrealized losses   (4)
Total, estimated fair value   $ 826
v3.25.4
INVESTMENT SECURITIES - Schedule of Restricted Stock Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]    
Federal Reserve Bank $ 15,627 $ 15,524
Federal Home Loan Bank 15,305 15,305
Restricted stock investments $ 30,932 $ 30,829
v3.25.4
INVESTMENT SECURITIES - Schedule of Activity in Qualifying Low Income Housing Projects (Details) - Limited Partnership - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Investment Program, Proportional Amortization Method, Elected [Table]    
Amortization expense included in income tax expense $ 689 $ 685
Tax credits and other tax benefits recognized 1,206 887
Contributions $ 1,033 $ 322
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans pledge with FHLB under blanket lien $ 2,200,000    
Loans held for investment 3,033,887 $ 3,139,165  
Loans held for sale, at lower of cost or fair value 25,105 17,180  
Loans held for sale 25,600 17,900  
Loans transferred from loans held for investment to loans held for sale 17,300 25,900  
Loans over 90 days past due and still accruing interest 0 150  
Loans individually evaluated 30,400 12,700  
ACL attributed to loans individually evaluated 373 0  
Changes in individually evaluated loans 16,100    
Accrued interest receivable on loans receivable, net $ 9,800 $ 11,700  
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] Accrued interest and other assets Accrued interest and other assets  
Provision for (reversal of) credit losses for unfunded loan commitments $ (998) $ 2,170  
Reserve for unfunded loan commitments 2,105 3,103 $ 933
CALB | Allowance For Credit Losses, Unfunded Commitments      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Initial allowance for unfunded credit commitments acquired 0 2,700  
Valuation Technique, Loan Pricing      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Maximum amortized balance of other individually evaluated loans triggering loan pricing approach 200    
Loans individually evaluated   108  
Valuation Technique, Underlying Value Of Collateral      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans individually evaluated 29,800 12,600  
Valuation Technique, Discounted Cash Flow      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans individually evaluated 553    
Small Business Administration 7(a) Loans      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for sale, at lower of cost or fair value 7,800 10,300  
Asset Pledged as Collateral | Federal Home Loan Bank Advances      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 1,440,000    
Asset Pledged as Collateral | Federal Reserve Bank Advances      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 351,700    
Commercial and industrial      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 605,859 710,970  
Loans held for sale, at lower of cost or fair value 17,300 6,900  
Loans transferred from loans held for investment to loans held for sale $ 17,300 $ 25,900  
Financing Receivable | Credit Concentration Risk | Real estate - other:      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Percent of total loans 80.00% 77.00%  
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Loan Portfolio (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment $ 3,033,887 $ 3,139,165  
Allowance for credit losses - loans (34,348) (50,540) $ (22,569)
Loans held for investment, net 2,999,539 3,088,625  
Net unearned fees 2,800 1,800  
Net unearned discount 31,300 58,500  
Interest accretion 21,300 12,300  
Construction and land development      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 138,894 227,325  
Allowance for credit losses - loans (1,204) (1,953) (2,032)
Real estate - other:      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for credit losses - loans (24,590) (29,399) (16,280)
Real estate - other: | 1-4 family residential      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 142,399 164,401  
Real estate - other: | Multifamily residential      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 324,075 243,993  
Real estate - other: | Commercial real estate and other      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 1,820,445 1,767,727  
Commercial and industrial      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 605,859 710,970  
Allowance for credit losses - loans (8,544) (18,056) (4,242)
Consumer      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans held for investment 2,215 24,749  
Allowance for credit losses - loans $ (10) $ (1,132) $ (15)
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Risk Category of Loans by Class and Origination Year (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Term Loans Amortized Cost Basis by Origination Year    
Current year $ 439,215 $ 230,487
One year before current year 198,169 189,170
Two years before current year 150,894 788,069
Three years before current year 663,842 637,732
Four years before current year 467,279 150,535
Prior 643,181 605,025
Revolving Loans Amortized Cost Basis 442,940 537,504
Revolving Loans Amortized Cost Basis Converted to Term During the Period 28,367 643
Loans held for investment 3,033,887 3,139,165
YTD gross charge-offs    
Current year 0 0
One year before current year 0 37
Two years before current year 91 2,498
Three years before current year 3,541 238
Four years before current year 4,962 0
Prior 1,896 0
Revolving Loans Amortized Cost Basis 0 1
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Total 10,490 2,774
Construction and land development    
Term Loans Amortized Cost Basis by Origination Year    
Current year 28,119 25,812
One year before current year 39,469 25,857
Two years before current year 12,434 94,297
Three years before current year 48,858 47,687
Four years before current year 5,336 21,397
Prior 2,335 2,410
Revolving Loans Amortized Cost Basis 0 9,865
Revolving Loans Amortized Cost Basis Converted to Term During the Period 2,343 0
Loans held for investment 138,894 227,325
YTD gross charge-offs    
Current year 0 0
One year before current year 0 0
Two years before current year 0 967
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Total 0 967
Real estate - other:    
YTD gross charge-offs    
Total 2,014 1,508
Real estate - other: | 1-4 family residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 2,469 20,297
One year before current year 1,525 15,581
Two years before current year 12,657 36,555
Three years before current year 32,209 17,902
Four years before current year 16,550 6,683
Prior 22,687 18,628
Revolving Loans Amortized Cost Basis 50,872 48,755
Revolving Loans Amortized Cost Basis Converted to Term During the Period 3,430 0
Loans held for investment 142,399 164,401
YTD gross charge-offs    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 1
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Total 0 1
Real estate - other: | Multifamily residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 61,974 15,998
One year before current year 15,987 11,087
Two years before current year 18,766 85,834
Three years before current year 85,020 84,671
Four years before current year 82,137 5,107
Prior 58,201 41,296
Revolving Loans Amortized Cost Basis 1,990 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 324,075 243,993
YTD gross charge-offs    
Current year 0 0
One year before current year 0 0
Two years before current year 0 1,456
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Total 0 1,456
Real estate - other: | Commercial real estate and other    
Term Loans Amortized Cost Basis by Origination Year    
Current year 263,162 111,911
One year before current year 96,078 95,829
Two years before current year 87,569 457,053
Three years before current year 435,964 422,212
Four years before current year 345,328 102,374
Prior 500,291 473,249
Revolving Loans Amortized Cost Basis 76,342 104,456
Revolving Loans Amortized Cost Basis Converted to Term During the Period 15,711 643
Loans held for investment 1,820,445 1,767,727
YTD gross charge-offs    
Current year 0 0
One year before current year 0 0
Two years before current year 0 51
Three years before current year 0 0
Four years before current year 1,297 0
Prior 717 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Total 2,014 51
Commercial and industrial    
Term Loans Amortized Cost Basis by Origination Year    
Current year 83,060 55,777
One year before current year 44,237 40,816
Two years before current year 19,468 113,311
Three years before current year 61,142 42,515
Four years before current year 17,926 14,893
Prior 59,666 69,436
Revolving Loans Amortized Cost Basis 313,477 374,222
Revolving Loans Amortized Cost Basis Converted to Term During the Period 6,883 0
Loans held for investment 605,859 710,970
YTD gross charge-offs    
Current year 0 0
One year before current year 0 37
Two years before current year 91 24
Three years before current year 3,541 0
Four years before current year 163 0
Prior 1,179 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Total 4,974 61
Consumer    
Term Loans Amortized Cost Basis by Origination Year    
Current year 431 692
One year before current year 873 0
Two years before current year 0 1,019
Three years before current year 649 22,745
Four years before current year 2 81
Prior 1 6
Revolving Loans Amortized Cost Basis 259 206
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 2,215 24,749
YTD gross charge-offs    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 238
Four years before current year 3,502 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Total 3,502 238
Pass    
Term Loans Amortized Cost Basis by Origination Year    
Current year 434,904 230,060
One year before current year 196,478 178,270
Two years before current year 143,981 750,670
Three years before current year 608,619 610,296
Four years before current year 464,693 133,941
Prior 612,812 575,746
Revolving Loans Amortized Cost Basis 412,479 473,097
Revolving Loans Amortized Cost Basis Converted to Term During the Period 26,833 148
Loans held for investment 2,900,799 2,952,228
Pass | Construction and land development    
Term Loans Amortized Cost Basis by Origination Year    
Current year 28,119 25,812
One year before current year 39,469 25,857
Two years before current year 12,434 84,638
Three years before current year 35,050 47,687
Four years before current year 5,336 7,297
Prior 2,263 2,328
Revolving Loans Amortized Cost Basis 0 9,865
Revolving Loans Amortized Cost Basis Converted to Term During the Period 2,343 0
Loans held for investment 125,014 203,484
Pass | Real estate - other: | 1-4 family residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 2,469 20,297
One year before current year 1,525 15,581
Two years before current year 12,657 33,660
Three years before current year 29,542 17,902
Four years before current year 16,550 6,683
Prior 22,687 18,628
Revolving Loans Amortized Cost Basis 50,872 44,286
Revolving Loans Amortized Cost Basis Converted to Term During the Period 3,430 0
Loans held for investment 139,732 157,037
Pass | Real estate - other: | Multifamily residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 61,974 15,998
One year before current year 15,987 11,087
Two years before current year 18,766 85,834
Three years before current year 77,050 84,671
Four years before current year 82,137 5,107
Prior 58,201 37,510
Revolving Loans Amortized Cost Basis 1,990 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 316,105 240,207
Pass | Real estate - other: | Commercial real estate and other    
Term Loans Amortized Cost Basis by Origination Year    
Current year 259,144 111,911
One year before current year 96,078 86,261
Two years before current year 81,643 454,470
Three years before current year 422,093 399,393
Four years before current year 342,770 100,110
Prior 472,569 453,301
Revolving Loans Amortized Cost Basis 70,135 104,456
Revolving Loans Amortized Cost Basis Converted to Term During the Period 15,711 148
Loans held for investment 1,760,143 1,710,050
Pass | Commercial and industrial    
Term Loans Amortized Cost Basis by Origination Year    
Current year 82,767 55,350
One year before current year 42,546 39,484
Two years before current year 18,481 91,049
Three years before current year 44,235 38,303
Four years before current year 17,898 14,663
Prior 57,091 63,973
Revolving Loans Amortized Cost Basis 289,223 314,284
Revolving Loans Amortized Cost Basis Converted to Term During the Period 5,349 0
Loans held for investment 557,590 617,106
Pass | Consumer    
Term Loans Amortized Cost Basis by Origination Year    
Current year 431 692
One year before current year 873 0
Two years before current year 0 1,019
Three years before current year 649 22,340
Four years before current year 2 81
Prior 1 6
Revolving Loans Amortized Cost Basis 259 206
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 2,215 24,344
Special mention    
Term Loans Amortized Cost Basis by Origination Year    
Current year 4,018 307
One year before current year 639 9,614
Two years before current year 2,798 3,986
Three years before current year 22,132 12,590
Four years before current year 1,119 14,925
Prior 19,133 15,554
Revolving Loans Amortized Cost Basis 22,398 11,868
Revolving Loans Amortized Cost Basis Converted to Term During the Period 170 495
Loans held for investment 72,407 69,339
Special mention | Construction and land development    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 12,431
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 12,431
Special mention | Real estate - other: | 1-4 family residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Special mention | Real estate - other: | Multifamily residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 7,970 0
Four years before current year 0 0
Prior 0 3,786
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 7,970 3,786
Special mention | Real estate - other: | Commercial real estate and other    
Term Loans Amortized Cost Basis by Origination Year    
Current year 4,018 0
One year before current year 0 9,568
Two years before current year 2,765 2,583
Three years before current year 13,676 11,268
Four years before current year 1,108 2,264
Prior 17,386 9,848
Revolving Loans Amortized Cost Basis 6,207 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 495
Loans held for investment 45,160 36,026
Special mention | Commercial and industrial    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 307
One year before current year 639 46
Two years before current year 33 1,403
Three years before current year 486 1,322
Four years before current year 11 230
Prior 1,747 1,920
Revolving Loans Amortized Cost Basis 16,191 11,868
Revolving Loans Amortized Cost Basis Converted to Term During the Period 170 0
Loans held for investment 19,277 17,096
Special mention | Consumer    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Substandard    
Term Loans Amortized Cost Basis by Origination Year    
Current year 293 120
One year before current year 1,052 1,286
Two years before current year 4,115 33,413
Three years before current year 33,091 14,846
Four years before current year 1,467 1,669
Prior 11,236 13,725
Revolving Loans Amortized Cost Basis 8,063 52,539
Revolving Loans Amortized Cost Basis Converted to Term During the Period 1,364 0
Loans held for investment 60,681 117,598
Substandard | Construction and land development    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 9,659
Three years before current year 13,808 0
Four years before current year 0 1,669
Prior 72 82
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 13,880 11,410
Substandard | Real estate - other: | 1-4 family residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 2,895
Three years before current year 2,667 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 4,469
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 2,667 7,364
Substandard | Real estate - other: | Multifamily residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Substandard | Real estate - other: | Commercial real estate and other    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 3,161 0
Three years before current year 195 11,551
Four years before current year 1,450 0
Prior 10,336 10,100
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 15,142 21,651
Substandard | Commercial and industrial    
Term Loans Amortized Cost Basis by Origination Year    
Current year 293 120
One year before current year 1,052 1,286
Two years before current year 954 20,859
Three years before current year 16,421 2,890
Four years before current year 17 0
Prior 828 3,543
Revolving Loans Amortized Cost Basis 8,063 48,070
Revolving Loans Amortized Cost Basis Converted to Term During the Period 1,364 0
Loans held for investment 28,992 76,768
Substandard | Consumer    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 405
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 405
Doubtful    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Doubtful | Construction and land development    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Doubtful | Real estate - other: | 1-4 family residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Doubtful | Real estate - other: | Multifamily residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Doubtful | Real estate - other: | Commercial real estate and other    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Doubtful | Commercial and industrial    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Doubtful | Consumer    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Loss    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Loss | Construction and land development    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Loss | Real estate - other: | 1-4 family residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Loss | Real estate - other: | Multifamily residential    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Loss | Real estate - other: | Commercial real estate and other    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Loss | Commercial and industrial    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment 0 0
Loss | Consumer    
Term Loans Amortized Cost Basis by Origination Year    
Current year 0 0
One year before current year 0 0
Two years before current year 0 0
Three years before current year 0 0
Four years before current year 0 0
Prior 0 0
Revolving Loans Amortized Cost Basis 0 0
Revolving Loans Amortized Cost Basis Converted to Term During the Period 0 0
Loans held for investment $ 0 $ 0
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Past Due Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Past Due [Line Items]    
Accruing Loans $ 3,033,887 $ 3,139,165
Nonaccrual 16,086 26,386
30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 14,653 6,274
60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 82 5,808
90 Days and Over Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 150
Total Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 14,735 12,232
Current    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 3,003,066 3,100,547
Construction and land development    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 138,894 227,325
Nonaccrual 13,808 9,659
Construction and land development | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 4,104
Construction and land development | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 0
Construction and land development | 90 Days and Over Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 0
Construction and land development | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 4,104
Construction and land development | Current    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 125,086 213,562
Real estate - other: | 1-4 family residential    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 142,399 164,401
Nonaccrual 0 2,895
Real estate - other: | 1-4 family residential | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 40
Real estate - other: | 1-4 family residential | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 4,469
Real estate - other: | 1-4 family residential | 90 Days and Over Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 0
Real estate - other: | 1-4 family residential | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 4,509
Real estate - other: | 1-4 family residential | Current    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 142,399 156,997
Real estate - other: | Multifamily residential    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 324,075 243,993
Nonaccrual 0 0
Real estate - other: | Multifamily residential | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 7,970 0
Real estate - other: | Multifamily residential | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 0
Real estate - other: | Multifamily residential | 90 Days and Over Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 0
Real estate - other: | Multifamily residential | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 7,970 0
Real estate - other: | Multifamily residential | Current    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 316,105 243,993
Real estate - other: | Commercial real estate and other    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 1,820,445 1,767,727
Nonaccrual 83 8,915
Real estate - other: | Commercial real estate and other | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 5,838 195
Real estate - other: | Commercial real estate and other | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 0
Real estate - other: | Commercial real estate and other | 90 Days and Over Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 0
Real estate - other: | Commercial real estate and other | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 5,838 195
Real estate - other: | Commercial real estate and other | Current    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 1,814,524 1,758,617
Commercial and industrial    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 605,859 710,970
Nonaccrual 2,195 4,917
Commercial and industrial | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 845 1,866
Commercial and industrial | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 53 1,113
Commercial and industrial | 90 Days and Over Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 0
Commercial and industrial | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 898 2,979
Commercial and industrial | Current    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 602,766 703,074
Consumer    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 2,215 24,749
Nonaccrual 0 0
Consumer | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 69
Consumer | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 29 226
Consumer | 90 Days and Over Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 0 150
Consumer | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Accruing Loans 29 445
Consumer | Current    
Financing Receivable, Past Due [Line Items]    
Accruing Loans $ 2,186 $ 24,304
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Nonaccrual Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans $ 16,086 $ 26,386  
ACL 34,348 50,540 $ 22,569
Nonaccrual Loans with no ACL 9,444 12,662  
Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 15,756 26,278  
ACL 580 1,495  
Non-Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 330 108  
ACL 0 0  
Construction and land development      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 13,808 9,659  
ACL 1,204 1,953 2,032
Nonaccrual Loans with no ACL 8,808 9,659  
Construction and land development | Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 13,808 9,659  
ACL 373 0  
Construction and land development | Non-Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
ACL 0 0  
Real estate - other:      
Financing Receivable, Nonaccrual [Line Items]      
ACL 24,590 29,399 16,280
Real estate - other: | 1-4 family residential      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 2,895  
Nonaccrual Loans with no ACL 0 2,895  
Real estate - other: | 1-4 family residential | Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 2,895  
ACL 0 0  
Real estate - other: | 1-4 family residential | Non-Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
ACL 0 0  
Real estate - other: | Multifamily residential      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
Nonaccrual Loans with no ACL 0 0  
Real estate - other: | Multifamily residential | Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
ACL 0 0  
Real estate - other: | Multifamily residential | Non-Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
ACL 0 0  
Real estate - other: | Commercial real estate and other      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 83 8,915  
Nonaccrual Loans with no ACL 83 0  
Real estate - other: | Commercial real estate and other | Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 83 8,915  
ACL 0 820  
Real estate - other: | Commercial real estate and other | Non-Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
ACL 0 0  
Commercial and industrial      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 2,195 4,917  
ACL 8,544 18,056 4,242
Nonaccrual Loans with no ACL 553 108  
Commercial and industrial | Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 1,865 4,809  
ACL 207 675  
Commercial and industrial | Non-Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 330 108  
ACL 0 0  
Consumer      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
ACL 10 1,132 $ 15
Nonaccrual Loans with no ACL 0 0  
Consumer | Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
ACL 0 0  
Consumer | Non-Collateral Dependent Loans      
Financing Receivable, Nonaccrual [Line Items]      
Total Nonaccrual Loans 0 0  
ACL $ 0 $ 0  
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Collateral Dependent Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net $ 2,999,539 $ 3,088,625
Commercial Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 17,413 10,317
Residential Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 13,808 12,554
Business Assets    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 250 3,407
Construction and land development | Commercial Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 0 0
Construction and land development | Residential Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 13,808 9,659
Construction and land development | Business Assets    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 0 0
Real estate - other: | 1-4 family residential | Commercial Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 0 0
Real estate - other: | 1-4 family residential | Residential Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 0 2,895
Real estate - other: | 1-4 family residential | Business Assets    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 0 0
Real estate - other: | Commercial real estate and other | Commercial Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 83 8,915
Real estate - other: | Commercial real estate and other | Residential Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 0 0
Real estate - other: | Commercial real estate and other | Business Assets    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 0 0
Commercial and industrial | Commercial Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 17,330 1,402
Commercial and industrial | Residential Real Estate    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net 0
Commercial and industrial | Business Assets    
Financing Receivable, Past Due [Line Items]    
Loans held for investment, net $ 250 $ 3,407
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Modified Loans to Borrowers and Financial Effect of Loans Modification (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 54,416 $ 24,121
Total as a % of Loan Class 1.80% 0.80%
Term Extension and Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 3,616  
Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis 33,350 $ 24,121
Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis 672 0
Interest Rate Reduction and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis 16,778 0
Construction and land development    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 8,808 $ 1,669
Total as a % of Loan Class 6.30% 0.70%
Construction and land development | Term Extension and Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 0  
Construction and land development | Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis 0 $ 1,669
Weighted-average term extension   2 months
Construction and land development | Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis 0 $ 0
Construction and land development | Interest Rate Reduction and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 8,808 0
Weighted-average term extension 4 months  
Weighted-average interest rate reduction 2.16%  
Real estate - other: | Multifamily residential    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 7,970  
Total as a % of Loan Class 2.50%  
Real estate - other: | Multifamily residential | Term Extension and Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 0  
Real estate - other: | Multifamily residential | Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis 0  
Real estate - other: | Multifamily residential | Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis 0  
Real estate - other: | Multifamily residential | Interest Rate Reduction and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 7,970  
Weighted-average term extension 3 months  
Weighted-average interest rate reduction 1.50%  
Real estate - other: | Commercial real estate and other    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 16,865  
Total as a % of Loan Class 0.90%  
Real estate - other: | Commercial real estate and other | Term Extension and Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 3,616  
Weighted-average payment deferral 6 months  
Real estate - other: | Commercial real estate and other | Term Extension and Payment Delay, Full    
Financing Receivable, Modified [Line Items]    
Weighted-average payment deferral 60 days  
Real estate - other: | Commercial real estate and other | Term Extension and Payment Delay, Partial    
Financing Receivable, Modified [Line Items]    
Weighted-average payment deferral 12 months  
Real estate - other: | Commercial real estate and other | Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 13,249  
Weighted-average term extension 7 months  
Real estate - other: | Commercial real estate and other | Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 0  
Real estate - other: | Commercial real estate and other | Interest Rate Reduction and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis 0  
Commercial and industrial    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 20,773 $ 22,452
Total as a % of Loan Class 3.40% 3.20%
Commercial and industrial | Term Extension and Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 0  
Commercial and industrial | Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 20,101 $ 22,452
Weighted-average term extension 11 months 9 months
Commercial and industrial | Payment Delay    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 672 $ 0
Commercial and industrial | Full Payment Deferral    
Financing Receivable, Modified [Line Items]    
Weighted-average payment deferral 2 months  
Commercial and industrial | Partial Payment Deferral    
Financing Receivable, Modified [Line Items]    
Weighted-average payment deferral 12 months  
Commercial and industrial | Interest Rate Reduction and Term Extension    
Financing Receivable, Modified [Line Items]    
Amortized cost basis $ 0 $ 0
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Modified Financing Receivable, Modified, Past Due (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Modified [Line Items]    
Accruing Loans $ 54,416 $ 24,121
Nonaccrual 9,138 3,510
Total Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 7,970 0
30-59 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 7,970 0
60-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
90 Days and Over Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
Current    
Financing Receivable, Modified [Line Items]    
Accruing Loans 37,308 18,942
Construction and land development    
Financing Receivable, Modified [Line Items]    
Accruing Loans 8,808 1,669
Nonaccrual 8,808 0
Construction and land development | Total Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 1,669
Construction and land development | 30-59 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 1,669
Construction and land development | 60-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
Construction and land development | 90 Days and Over Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
Construction and land development | Current    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
Real estate - other: | Multifamily residential    
Financing Receivable, Modified [Line Items]    
Accruing Loans 7,970  
Nonaccrual 0  
Real estate - other: | Multifamily residential | Total Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 7,970  
Real estate - other: | Multifamily residential | 30-59 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 7,970  
Real estate - other: | Multifamily residential | 60-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0  
Real estate - other: | Multifamily residential | 90 Days and Over Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0  
Real estate - other: | Multifamily residential | Current    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0  
Real estate - other: | Commercial real estate and other    
Financing Receivable, Modified [Line Items]    
Accruing Loans 16,865  
Nonaccrual 0  
Real estate - other: | Commercial real estate and other | Total Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0  
Real estate - other: | Commercial real estate and other | 30-59 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0  
Real estate - other: | Commercial real estate and other | 60-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0  
Real estate - other: | Commercial real estate and other | 90 Days and Over Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0  
Real estate - other: | Commercial real estate and other | Current    
Financing Receivable, Modified [Line Items]    
Accruing Loans 16,865  
Commercial and industrial    
Financing Receivable, Modified [Line Items]    
Accruing Loans 20,773 22,452
Nonaccrual 330 3,510
Commercial and industrial | Total Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
Commercial and industrial | 30-59 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
Commercial and industrial | 60-89 Days Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
Commercial and industrial | 90 Days and Over Past Due    
Financing Receivable, Modified [Line Items]    
Accruing Loans 0 0
Commercial and industrial | Current    
Financing Receivable, Modified [Line Items]    
Accruing Loans $ 20,443 $ 18,942
v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Changes in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Allowance for loan losses (ALL)    
Balance, beginning of year $ 50,540 $ 22,569
Initial allowance for acquired PCD loans 0 11,216
(Reversal of) provision for loan losses (7,825) 19,520
Charge-offs (10,490) (2,774)
Recoveries 2,123 9
Net charge-offs (8,367) (2,765)
Balance, end of year 34,348 50,540
Reserve for unfunded loan commitments    
Balance, beginning of year 3,103 933
(Reversal of) provision for unfunded commitment losses (998) 2,170
Balance, end of year 2,105 3,103
Allowance for credit losses, end of year 36,453 53,643
CALB | Allowance For Credit Losses, Non-Purchased Credit Deterioration Loans    
Reserve for unfunded loan commitments    
Initial provision for credit losses for non-PCD loans acquired 0 18,500
Construction and Land Development    
Allowance for loan losses (ALL)    
Balance, beginning of year 1,953 2,032
Initial allowance for acquired PCD loans   328
(Reversal of) provision for loan losses (749) 560
Charge-offs 0 (967)
Recoveries 0 0
Net charge-offs 0 (967)
Balance, end of year 1,204 1,953
Real Estate - Other    
Allowance for loan losses (ALL)    
Balance, beginning of year 29,399 16,280
Initial allowance for acquired PCD loans   2,392
(Reversal of) provision for loan losses (3,075) 12,235
Charge-offs (2,014) (1,508)
Recoveries 280 0
Net charge-offs (1,734) (1,508)
Balance, end of year 24,590 29,399
Commercial & Industrial    
Allowance for loan losses (ALL)    
Balance, beginning of year 18,056 4,242
Initial allowance for acquired PCD loans   8,355
(Reversal of) provision for loan losses (6,330) 5,511
Charge-offs (4,974) (61)
Recoveries 1,792 9
Net charge-offs (3,182) (52)
Balance, end of year 8,544 18,056
Consumer    
Allowance for loan losses (ALL)    
Balance, beginning of year 1,132 15
Initial allowance for acquired PCD loans   141
(Reversal of) provision for loan losses 2,329 1,214
Charge-offs (3,502) (238)
Recoveries 51 0
Net charge-offs (3,451) (238)
Balance, end of year $ 10 $ 1,132
v3.25.4
TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Servicing Assets at Fair Value [Line Items]      
Loans serviced $ 113,500 $ 138,000  
Loans serviced with related servicing asset 35,600 33,200  
Servicing asset $ 346 $ 344 $ 546
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] Servicing and related income on loans, net Servicing and related income on loans, net  
SBA securities      
Servicing Assets at Fair Value [Line Items]      
Loans sold $ 9,000 $ 6,300  
Gain (losses) on sale of loans 577 415  
Non-SBA Securities      
Servicing Assets at Fair Value [Line Items]      
Loans sold $ 0 77,600  
Gain (losses) on sale of loans   (1,100)  
CALB      
Servicing Assets at Fair Value [Line Items]      
Loans serviced   $ 86,900  
Minimum      
Servicing Assets at Fair Value [Line Items]      
Servicing fees, percent 0.25%    
Maximum      
Servicing Assets at Fair Value [Line Items]      
Servicing fees, percent 1.00%    
v3.25.4
TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Schedule of Change in SBA Servicing Asset (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Servicing Asset at Amortized Cost, Balance [Roll Forward]    
Balance, beginning of period $ 344 $ 546
Additions 164 109
Amortization (162) (311)
Balance, end of period 346 344
Accelerated amortization $ 50 $ 174
v3.25.4
TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Schedule of Significant Valuation Assumptions for the SBA Servicing Asset (Details)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Minimum    
Servicing Assets at Fair Value [Line Items]    
Discount rate (percent) 5.10% 5.80%
Prepayment speed (percent) 15.60% 12.90%
Maximum    
Servicing Assets at Fair Value [Line Items]    
Discount rate (percent) 19.80% 23.30%
Prepayment speed (percent) 37.20% 40.20%
Weighted average    
Servicing Assets at Fair Value [Line Items]    
Discount rate (percent) 12.00% 14.30%
Prepayment speed (percent) 19.90% 20.50%
v3.25.4
TRANSFERS AND SERVICING OF FINANCIAL ASSETS - Schedule of Components of Net Servicing Fees Included in Noninterest Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Transfers and Servicing [Abstract]    
Contractually specified fees $ 365 $ 380
Amortization (162) (311)
Net servicing fees $ 203 $ 69
v3.25.4
PREMISES AND EQUIPMENT AND LEASES - Schedule of Premises and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross $ 22,527 $ 22,277
Less: Accumulated depreciation and amortization (10,411) (8,682)
Premises and equipment, net 12,116 13,595
Land    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 5,386 5,386
Building    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 4,766 4,766
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 6,226 5,976
Furniture & fixtures    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross 2,100 2,261
Computer & other equipment    
Property, Plant and Equipment [Line Items]    
Premises and equipment, gross $ 4,049 $ 3,888
v3.25.4
PREMISES AND EQUIPMENT AND LEASES - Narrative (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2025
USD ($)
option
Dec. 31, 2024
USD ($)
Property, Plant and Equipment [Line Items]    
Depreciation on premises and equipment $ 1,824 $ 1,759
ROU asset impairment $ 0 $ 78
Minimum    
Property, Plant and Equipment [Line Items]    
Operating lease, remaining lease term 6 months  
Operating lease, number of options to renew | option 1  
Maximum    
Property, Plant and Equipment [Line Items]    
Operating lease, remaining lease term 7 years 6 months  
v3.25.4
PREMISES AND EQUIPMENT AND LEASES - Schedule of ROU Assets, Lease Liabilities and Supplemental Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Jul. 31, 2024
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]      
Operating lease ROU assets $ 15,094 $ 14,350  
Operating lease liability $ 18,936 $ 18,310  
Weighted average remaining lease term, in years 4 years 10 months 20 days 4 years 8 months 12 days  
Weighted average discount rate 6.30% 6.10%  
CALB      
Property, Plant, and Equipment, Lessor Asset under Operating Lease [Line Items]      
Operating lease right-of-use asset   $ 7,700 $ 7,743
Operating lease liabilities   $ 9,000 $ 9,033
v3.25.4
PREMISES AND EQUIPMENT AND LEASES - Schedule of Lease Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Lease costs:    
Operating lease $ 4,442 $ 3,528
Short-term lease 97 0
Total lease costs 4,539 3,528
Other information:    
Cash paid for amounts included in lease liabilities 5,201 3,827
ROU assets obtained for new operating lease obligations $ 4,796 $ 105
v3.25.4
PREMISES AND EQUIPMENT AND LEASES - Schedule of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Abstract]    
2026 $ 4,775  
2027 4,738  
2028 4,250  
2029 3,182  
2030 2,604  
Thereafter 2,778  
Total future minimum lease payments 22,327  
Less: imputed interest 3,391  
Present value of net future minimum lease payments $ 18,936 $ 18,310
v3.25.4
OTHER REAL ESTATE OWNED, NET- Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Other real estate owned, net $ 0 $ 4,083 $ 0
Foreclosed on and sold other real estate 4,083 13,004  
Loss on sale of other real estate owned 862 4,783  
Valuation allowance on other real estate owned 0 614  
Loans transferred from loans held for investment to other real estate owned 0 17,701  
Valuation allowance recorded $ 0 614  
Real estate - other: | Multifamily residential      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans transferred from loans held for investment to other real estate owned   $ 4,700  
v3.25.4
OTHER REAL ESTATE OWNED, NET - Schedule Other Real Estate (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Other Real Estate [Roll Forward]    
Balance, beginning of year $ 4,083 $ 0
Loans transferred to other real estate owned 0 17,701
Valuation allowance for losses 0 (614)
Sales (4,083) (13,004)
Balance, end of year $ 0 $ 4,083
v3.25.4
OTHER REAL ESTATE OWNED, NET - Schedule of Valuation Allowance for Other Real Estate Owned (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Real Estate Owned Valuation Allowance [Roll Forward]    
Balance, beginning of year $ 614 $ 0
Valuation allowance for losses 0 614
Sales (614) 0
Balance, end of year $ 0 $ 614
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]      
Goodwill $ 110,934,000 $ 111,787,000 $ 37,803,000
Goodwill impairment $ 0 $ 0  
Weighted-average remaining amortization period intangibles 8 years 4 months 24 days    
Impairment of intangible assets $ 0    
Core Deposit Intangible | Minimum      
Finite-Lived Intangible Assets [Line Items]      
Weighted-average remaining amortization period intangibles 3 years    
Core Deposit Intangible | Maximum      
Finite-Lived Intangible Assets [Line Items]      
Weighted-average remaining amortization period intangibles 8 years 7 months 6 days    
Trade name      
Finite-Lived Intangible Assets [Line Items]      
Weighted-average remaining amortization period intangibles 7 months 6 days    
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended 14 Months Ended
Dec. 31, 2025
Jul. 31, 2025
Dec. 31, 2024
Sep. 30, 2025
Goodwill [Roll Forward]        
Beginning of the year $ 111,787   $ 37,803  
Goodwill from business combination 0   74,712  
Goodwill measurement period adjustments (853)   (728)  
End of year $ 110,934   111,787  
CALB        
Goodwill [Roll Forward]        
Beginning of the year   $ 74,712   $ 74,712
Goodwill measurement period adjustments   $ (1,600)   (1,581)
End of year       73,131
Increase in intangible assets     300  
Increase in deferred tax assets     $ 428 $ (72)
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Changes in Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Jul. 31, 2024
Finite-Lived Intangible Assets [Roll Forward]      
Gross balance, beginning of year $ 27,138 $ 4,185  
Additions 0 22,953  
Gross balance, end of year 27,138 27,138  
Accumulated amortization:      
Balance, beginning of year (4,867) (2,990)  
Amortization (3,791) (1,877)  
Balance, end of period (8,658) (4,867)  
Future estimated amortization expense $ 18,480 22,271  
Weighted-average period 9 years 10 months 24 days    
Core Deposit Intangible      
Accumulated amortization:      
Intangibles assets, amortization period 10 years    
Trademarks      
Accumulated amortization:      
Intangibles assets, amortization period 2 years    
Trade name      
Accumulated amortization:      
Intangibles assets, amortization period 2 years    
CALB      
Accumulated amortization:      
Core Deposit Intangible   22,700  
CALB | Core Deposit Intangible      
Accumulated amortization:      
Intangibles obtained in connection with Merger     $ 22,653
Intangibles assets, amortization period     10 years
CALB | Trade name      
Accumulated amortization:      
Intangibles obtained in connection with Merger   $ 300 $ 300
v3.25.4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Future Estimated Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
2026 $ 3,138  
2027 2,761  
2028 2,465  
2029 2,160  
2030 2,003  
Thereafter 5,953  
Future estimated amortization expense $ 18,480 $ 22,271
v3.25.4
DEPOSITS - Narrative (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Jul. 31, 2024
USD ($)
Deposit Liability [Line Items]      
Percentage of deposit contracts, to bank liabilities 0.20    
Deposit contracts, liabilities $ 5,000.0    
ICS deposits $ 743.6 $ 754.4  
Percent of total deposits 22.10% 22.20%  
Percentage of bank liabilities 0.216 0.218  
Reciprocal deposits     $ 442.7
Time deposits exceeding FDIC insurance limit $ 65.1 $ 80.6  
Brokered time deposits 3.8 121.1  
Asset Pledged as Collateral | Letter of Credit      
Deposit Liability [Line Items]      
Collateralized deposits $ 45.8 $ 25.1  
IntraFi Network Insured Cash Sweep ICS      
Deposit Liability [Line Items]      
Reciprocal deposits     98.4
Reich & Tang Deposit Solutions R&T Network      
Deposit Liability [Line Items]      
Reciprocal deposits     306.6
Certificate of Deposit Account Registry Service CDARS      
Deposit Liability [Line Items]      
Reciprocal deposits     $ 37.7
v3.25.4
DEPOSITS - Schedule of Scheduled Maturities of Time Deposits (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deposits [Abstract]    
2026 $ 126,895  
2027 1,205  
2028 20  
2029 125  
2030 1  
Time deposits $ 128,246 $ 285,237
v3.25.4
BORROWING ARRANGEMENTS - Schedule of Outstanding Borrowings (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
FHLB advances $ 0 $ 0
Subordinated debt 33,832 69,725
Total borrowings $ 33,832 $ 69,725
v3.25.4
BORROWING ARRANGEMENTS - Narrative (Details)
3 Months Ended
Jul. 31, 2024
USD ($)
May 28, 2020
USD ($)
Jun. 30, 2025
USD ($)
Dec. 31, 2025
USD ($)
lineOfCredit
Sep. 30, 2025
USD ($)
Dec. 31, 2024
USD ($)
Debt Instrument [Line Items]            
FHLB secured line of credit       $ 814,300,000    
FHLB secured line of credit, amount available       749,300,000    
Loans pledge with FHLB under blanket lien       2,200,000,000    
Loans held for investment       3,033,887,000   $ 3,139,165,000
FHLB advances       0   0
Federal reserve secured line of credit       327,800,000    
Held-to-maturity debt securities pledged as collateral       52,936,000   53,280,000
Debt securities available-for-sale, amortized cost       237,191,000   151,429,000
Discount window borrowings       0   0
Subordinated Debt | Fixed To Floating Rate Subordinated Notes Due 2030            
Debt Instrument [Line Items]            
Basis spread on variable interest rate   3.50%        
Debt instrument face amount   $ 18,000,000        
Subordinated notes interest rate   5.50%        
Issuance costs   $ 475,000   0   40,000
Fixed amortization term   5 years        
Debt redeemed at par value     $ 18,000,000      
Subordinated Debt | Subordinated Debt, 3.50% Maturing In September 2031            
Debt Instrument [Line Items]            
Basis spread on variable interest rate 2.86%          
Debt instrument face amount $ 35,000,000          
Interest rate 3.50%          
Debt instrument, unamortized discount $ 3,400,000     1,200,000   2,700,000
Subordinated Debt | CALB | Subordinated Debt, 5.00% Maturing In September 2030            
Debt Instrument [Line Items]            
Basis spread on variable interest rate 4.88%          
Debt instrument face amount $ 20,000,000          
Interest rate 5.00%          
Debt instrument, unamortized discount $ 794,000     $ 0   509,000
Redeemed notes         $ 20,000,000  
Overnight Unsecured Line of Credit | Line of Credit            
Debt Instrument [Line Items]            
Number of overnight unsecured credit lines | lineOfCredit       4    
Overnight unsecured credit lines       $ 90,500,000    
Overnight unsecured credit lines, outstanding borrowings       0   0
Revolving Credit Facility | Line of Credit | CALB            
Debt Instrument [Line Items]            
Overnight unsecured credit lines $ 3,000,000.0          
Percentage of the facility secured by common stock 100.00%          
Basis spread on variable interest rate 0.40%          
Asset Pledged as Collateral | Federal Home Loan Bank Advances            
Debt Instrument [Line Items]            
FHLB secured line of credit, amount available       65,000,000.0    
Loans held for investment       1,440,000,000    
Asset Pledged as Collateral | Federal Reserve Bank Advances            
Debt Instrument [Line Items]            
Loans held for investment       351,700,000    
Held-to-maturity debt securities pledged as collateral       52,900,000   53,300,000
Asset Pledged as Collateral | Deposits            
Debt Instrument [Line Items]            
Debt securities available-for-sale, amortized cost       $ 27,600,000   $ 3,000,000.0
v3.25.4
INCOME TAXES - Schedule of Income Tax Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Current tax expense:    
Federal $ 8,648 $ 1,290
State 4,769 1,966
Total current tax expense 13,417 3,256
Deferred tax expense (benefit):    
Federal 6,997 497
State 4,485 (923)
Total deferred tax expense (benefit) 11,482 (426)
Income tax expense $ 24,899 $ 2,830
v3.25.4
INCOME TAXES - Schedule of Cash Payments for Income Taxes, Net of Refunds Received (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Effective Income Tax Rate Reconciliation [Line Items]    
Federal $ 4,253 $ 2,720
Total income tax paid, net 9,779 2,886
California    
Effective Income Tax Rate Reconciliation [Line Items]    
State 5,480 166
Other states    
Effective Income Tax Rate Reconciliation [Line Items]    
State $ 46 $ 0
v3.25.4
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Amount    
Statutory federal income tax provision $ 18,471 $ 1,735
State taxes 7,310 824
Tax credits:    
Net expense (benefit) related to tax credit equity investment (516) 21
Nontaxable or nondeductible items:    
Bank owned life insurance (490) (367)
Tax exempt interest income (94) (218)
Excess executive compensation 378 533
Merger expenses 0 374
Other 152 100
Other adjustments:    
Employee stock-based compensation (307) (103)
Other (5) (69)
Income tax expense $ 24,899 $ 2,830
Rate    
Statutory federal income tax provision 21.00% 21.00%
State taxes 8.30% 10.00%
Tax credits:    
Net expense (benefit) related to tax credit equity investment (0.60%) 0.30%
Nontaxable or nondeductible items:    
Bank owned life insurance (0.60%) (4.40%)
Tax exempt interest income (0.10%) (2.60%)
Excess executive compensation 0.40% 6.40%
Merger expenses 0.00% 4.50%
Other 0.20% 1.10%
Other adjustments:    
Employee stock-based compensation (0.30%) (1.30%)
Other 0.00% (0.80%)
Effective income tax rate 28.30% 34.20%
v3.25.4
INCOME TAXES - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Operating Loss Carryforwards [Line Items]    
Interest and penalties related to unrecognized tax benefits $ 0 $ 0
Unrecognized tax benefits 0 $ 0
CalWest Bancorp    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards, annual limitations on use 381,000  
CALB    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards, annual limitations on use 7,800,000  
Domestic Tax Jurisdiction | CalWest Bancorp    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 3,900,000  
Domestic Tax Jurisdiction | CALB    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 20,800,000  
State and Local Jurisdiction | CalWest Bancorp    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 5,400,000  
State and Local Jurisdiction | CALB    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards $ 28,100,000  
v3.25.4
INCOME TAXES - Schedule of Components of Net Deferred Tax Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Allowance for loan losses $ 9,895 $ 14,860
Organizational expenses 89 102
Stock-based compensation 1,383 1,626
Fair value adjustment on acquired loans 8,894 16,833
Net operating loss carryforward 8,050 8,939
Accrued expenses 1,882 1,253
Deferred compensation 2,165 1,997
California franchise tax 1,004 412
Depreciation differences 47 297
Operating Lease liabilities 5,455 5,384
Unrealized loss on securities available for sale 680 2,787
Other 1,045 1,535
Total deferred tax assets 40,589 56,025
Deferred tax liabilities:    
Deferred loan costs (1,236) (1,169)
Core deposit intangibles (5,589) (6,790)
Right of use asset (4,348) (4,219)
Other (375) (720)
Total deferred tax liabilities (11,548) (12,898)
Net deferred tax assets $ 29,041 $ 43,127
v3.25.4
EARNINGS PER SHARE (“EPS”) - Schedule of Reconciliation of Net Income and Shares Outstanding to Compute EPS (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Earnings Per Share [Abstract]    
Net income $ 63,058 $ 5,433
Weighted average common shares outstanding - basic (in shares) 32,391,016 24,247,064
Dilutive effect of outstanding:    
Stock options and unvested stock grants (in shares) 355,094 376,333
Weighted average common shares outstanding - diluted (in shares) 32,746,110 24,623,397
Earnings per common share - basic (in dollars per share) $ 1.95 $ 0.22
Earnings per common share - diluted (in dollars per share) $ 1.93 $ 0.22
v3.25.4
EARNINGS PER SHARE (“EPS”) - Narrative (Details) - shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restricted Stock Units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from computation of earnings per share (in shares) 5,328 97,211
Stock Options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from computation of earnings per share (in shares) 0 1,989
v3.25.4
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Apr. 30, 2022
Dec. 31, 2025
Dec. 31, 2024
Related Party Transaction [Line Items]      
Federal funds and interest-bearing balances   $ 347,900 $ 327,691
Future minimum lease payments   $ 22,327  
Beneficial Owner      
Related Party Transaction [Line Items]      
Percentage of voting securities (more than)   5.00%  
Director      
Related Party Transaction [Line Items]      
Federal funds and interest-bearing balances   $ 37,500 62,900
Director | Launchpad      
Related Party Transaction [Line Items]      
Committed investment $ 2,000    
Capital contributions   1,500 1,200
Related Party      
Related Party Transaction [Line Items]      
Lease expense   44 $ 44
Future minimum lease payments   $ 62  
v3.25.4
RELATED PARTY TRANSACTIONS - Schedule of Related Party Loans Outstanding (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Roll Forward]    
Balance at beginning of year $ 3,139,165  
Balance at end of year 3,033,887 $ 3,139,165
Related Party    
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss [Roll Forward]    
Balance at beginning of year 27,734 5,928
Assumed in the Merger 0 22,523
Payoffs (1,553) 0
Repayments (1,738) (717)
Balance at end of year $ 24,443 $ 27,734
v3.25.4
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Financial Commitments Representing Potential Credit Risk (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
Commitments to extend credit $ 877,525 $ 925,076
Letters of credit issued to customers 23,589 16,147
Commitments to contribute capital to other equity investments 7,859 5,914
Outstanding financial commitments $ 908,973 $ 947,137
v3.25.4
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Jul. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Commitments [Line Items]        
Deferred compensation agreement, benefit term   10 years    
Targeted benefit amount as a percentage of the average of his three highest calendar years of base salary 30.00%     25.00%
Deferred compensation agreement, expense   $ 1,300 $ 746  
Supplemental Employee Retirement Plan        
Other Commitments [Line Items]        
Deferred compensation agreement, annual benefit   336    
Deferred compensation arrangement, recorded liability   2,100    
Minimum        
Other Commitments [Line Items]        
Deferred compensation agreement, annual benefit   20    
Maximum        
Other Commitments [Line Items]        
Deferred compensation agreement, annual benefit   $ 75    
v3.25.4
STOCK-BASED COMPENSATION PLAN - Narrative (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Jul. 31, 2024
Jun. 30, 2021
Oct. 31, 2020
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Apr. 30, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Unrecognized compensation cost       $ 9      
Stock options exercised (in shares)       18,013 112,275    
Intrinsic value of stock options exercised       $ 146 $ 788    
Tax (expense) benefit associated with options exercised       $ 406 $ (72)    
Granted (in shares)       0 0    
CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Fair value of accelerated restricted stock units attributable to post-combination vesting $ 1,119     $ 1,100      
Former Non-Continuing Directors, Officers And Employees | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Number of shares issued (in shares) 82,364            
Stock Options and Restricted Stock Units              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Stock-based compensation cost       $ 5,800 $ 6,200    
Stock Options              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Weighted-average period for recognition of unrecognized compensation cost       10 months 24 days      
Restricted Stock Units              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Unvested outstanding (in shares)       713,905 1,048,899 637,899  
Weighted-average period for recognition of unrecognized compensation cost       2 years 8 months 12 days      
Unrecognized compensation expense       $ 7,700      
Equity instruments other than options, vested in period, fair value       7,000 $ 5,900    
Tax (expense) benefit       $ 19 $ 307    
Restricted Stock Units | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Number of shares withheld for taxes (in shares) 25,635            
Restricted Stock Units | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Stock-based compensation cost $ 1,100            
Restricted Stock Units | Former Continuing Directors, Officers And Employees | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Business combination, consideration transferred, attributable to post-combination replacement awards, number of shares (in shares) 185,878            
Number of shares issued (in shares) 295,512            
Stock-based compensation cost $ 3,400            
Restricted Stock Units | Former Non-Continuing Directors, Officers And Employees | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Number of shares issued (in shares)       123,123 123,123    
Restricted Stock | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Weighted average remaining term 4 years            
Restricted Stock | Former Continuing Directors, Officers And Employees | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Number of shares issued (in shares) 295,512            
Restricted Stock | Former Non-Continuing Directors, Officers And Employees | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Unvested outstanding (in shares) 77,436            
Restricted Stock | Minimum | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Weighted average remaining term 2 months            
Restricted Stock | Maximum | CALB              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Weighted average remaining term 5 years            
2019 Plan              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Maximum shares approved for issuance (in shares)   3,400,000 2,500,000       2,200,000
Increase in maximum shares approved for issuance (in shares)   900,000 300,000        
2019 Plan | Stock Options              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Stock option expiration period       10 years      
Expiration period of vested options following termination of service affiliation       90 days      
2019 Plan | Restricted Stock Units | Minimum              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Restricted stock vesting period       1 year      
2019 Plan | Restricted Stock Units | Maximum              
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]              
Restricted stock vesting period       5 years      
v3.25.4
STOCK-BASED COMPENSATION PLAN - Schedule of Changes in Outstanding Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Shares    
Outstanding at beginning of year (in shares) 136,888 272,813
Granted (in shares) 0 0
Exercised (in shares) (18,013) (112,275)
Expired (in shares) 0 (750)
Forfeited (in shares) 0 (22,900)
Outstanding at end of year (in shares) 118,875 136,888
Options exercisable (in shares) 117,325 132,388
Weighted Average Exercise Price    
Outstanding at beginning of year (in dollars per share) $ 9.64 $ 9.30
Granted (in dollars per share) 0 0
Exercised (in dollars per share) 7.34 8.47
Expired (in dollars per share) 0 5.93
Forfeited (in dollars per share) 0 11.48
Outstanding at end of year (in dollars per share) 9.98 9.64
Options exercisable (in dollars per share) $ 9.97 $ 9.61
Weighted Average Remaining Contractual Term    
Outstanding at end of year (years) 2 years 2 years 9 months 18 days
Options exercisable (years) 2 years 2 years 8 months 12 days
Aggregate Intrinsic Value    
Outstanding at end of year $ 1,033 $ 945
Options exercisable $ 1,021 $ 918
v3.25.4
STOCK-BASED COMPENSATION PLAN - Schedule of Changes in Outstanding Unvested Restricted Stock Units (Details) - $ / shares
12 Months Ended
Jul. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
CALB | Former Non-Continuing Directors, Officers And Employees      
Weighted Average Grant Date Fair Value      
Number of shares issued (in shares) 82,364    
Restricted Stock Units      
Restricted Shares      
Unvested at beginning of year (in shares)   1,048,899 637,899
Granted (in shares)   201,139 958,016
Vested (in shares)   (503,406) (430,179)
Forfeited (in shares)   (32,727) (116,837)
Unvested at end of year (in shares)   713,905 1,048,899
Weighted Average Grant Date Fair Value      
Unvested at beginning of year (in dollars per share)   $ 14.73 $ 13.11
Granted (in dollars per share)   15.71 15.49
Vested (in dollars per share)   13.92 13.78
Forfeited (in dollars per share)   16.12 15.69
Unvested at end of year (in dollars per share)   $ 15.51 $ 14.73
Restricted Stock Units | CALB      
Restricted Shares      
Granted (in shares)     418,634
Restricted Stock Units | CALB | Former Non-Continuing Directors, Officers And Employees      
Weighted Average Grant Date Fair Value      
Number of shares issued (in shares)   123,123 123,123
v3.25.4
SHAREHOLDERS' EQUITY (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2025
May 01, 2025
Jun. 14, 2023
Equity [Abstract]        
Share repurchase plan, shares authorized (in shares)     1,600,000 550,000
Share repurchase plan, percent of outstanding shares authorized       3.00%
Stock repurchased (in shares)   211,928    
Shares repurchased at a weighted average market price (in dollars per share)   $ 15.89    
Total cost of shares repurchased   $ 3,366    
Remaining maximum number of shares authorized to be repurchased (in shares)   1,388,072    
Issuance of common stock in business combination (in shares) 13,579,454      
v3.25.4
REGULATORY MATTERS - Narrative (Details)
$ in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]    
Total capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.080 0.080
Tier 1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.060 0.060
CET1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.045 0.045
Tier 1 capital (to average assets), amount of capital required to be adequately capitalized, ratio 0.040 0.040
Total capital (to risk-weighted assets), amount of capital required to be well-capitalized under PCA provisions, ratio 0.100 0.100
Tier 1 capital (to risk-weighted assets), amount of capital required to be well-capitalized under PCA provisions, ratio 0.080 0.080
CET1 capital (to risk-weighted assets), amount of capital required to be well-capitalized under PCA provisions, ratio 0.065 0.065
Tier 1 capital (to average assets), amount of capital required to be well-capitalized under PCA provisions, ratio 0.050 0.050
Dividends paid by Bank to Company $ 60.0 $ 0.0
v3.25.4
REGULATORY MATTERS - Schedule of Capital Amounts and Ratios (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Total capital (to risk-weighted assets), actual amount $ 497,919 $ 492,433
Total capital (to risk-weighted assets), actual ratio 0.1424 0.1355
Total capital (to risk-weighted assets), amount of capital required to be adequately capitalized $ 279,707 $ 290,753
Total capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.080 0.080
Total capital (to risk-weighted assets), amount of capital required to be well-capitalized under pca provisions $ 349,634 $ 363,441
Total capital (to risk-weighted assets), amount of capital required to be well-capitalized under PCA provisions, ratio 0.100 0.100
Tier 1 capital (to risk-weighted assets), actual amount $ 463,490 $ 450,600
Tier 1 capital (to risk-weighted assets), actual ratio 0.1326 0.1240
Tier 1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized $ 209,780 $ 218,065
Tier 1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.060 0.060
Tier 1 capital (to risk-weighted assets), amount of capital required to be well-capitalized under pca provisions $ 279,707 $ 290,753
Tier 1 capital (to risk-weighted assets), amount of capital required to be well-capitalized under PCA provisions, ratio 0.080 0.080
Cet1 capital (to risk-weighted assets), actual amount $ 463,490 $ 450,600
Cet1 capital (to risk-weighted assets), actual ratio 0.1326 0.1240
Cet1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized $ 157,335 $ 163,548
CET1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.045 0.045
Cet1 capital (to risk-weighted assets), amount of capital required to be well-capitalized under pca provisions $ 227,262 $ 236,237
CET1 capital (to risk-weighted assets), amount of capital required to be well-capitalized under PCA provisions, ratio 0.065 0.065
Tier 1 capital (to average assets), actual amount $ 463,490 $ 450,600
Tier 1 capital (to average assets), actual ratio 0.1157 0.1115
Tier 1 capital (to average assets), amount of capital required to be adequately capitalized $ 160,210 $ 161,689
Tier 1 capital (to average assets), amount of capital required to be adequately capitalized, ratio 0.040 0.040
Tier 1 capital (to average assets), amount of capital required to be well-capitalized under pca provisions $ 200,262 $ 202,111
Tier 1 capital (to average assets), amount of capital required to be well-capitalized under PCA provisions, ratio 0.050 0.050
Parent Company    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Total capital (to risk-weighted assets), actual amount $ 519,772 $ 496,912
Total capital (to risk-weighted assets), actual ratio 0.1486 0.1367
Total capital (to risk-weighted assets), amount of capital required to be adequately capitalized $ 279,836 $ 290,897
Total capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.080 0.080
Tier 1 capital (to risk-weighted assets), actual amount $ 451,511 $ 385,354
Tier 1 capital (to risk-weighted assets), actual ratio 0.1291 0.1060
Tier 1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized $ 209,877 $ 218,173
Tier 1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.060 0.060
Cet1 capital (to risk-weighted assets), actual amount $ 451,511 $ 385,354
Cet1 capital (to risk-weighted assets), actual ratio 0.1291 0.1060
Cet1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized $ 157,408 $ 163,630
CET1 capital (to risk-weighted assets), amount of capital required to be adequately capitalized, ratio 0.045 0.045
Tier 1 capital (to average assets), actual amount $ 451,511 $ 385,354
Tier 1 capital (to average assets), actual ratio 0.1127 0.0953
Tier 1 capital (to average assets), amount of capital required to be adequately capitalized $ 160,304 $ 161,710
Tier 1 capital (to average assets), amount of capital required to be adequately capitalized, ratio 0.040 0.040
v3.25.4
FAIR VALUE - Schedule of Fair Value Hierarchy and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Financial assets:    
Debt securities available for sale $ 234,890 $ 142,001
Debt securities held to maturity 49,308 47,823
Loans held for sale 25,600 17,900
Accrued interest receivable 9,800 11,700
Carrying Value | Level 1 and Level 2    
Financial assets:    
Debt securities available for sale 234,890 142,001
Carrying Value | Level 1    
Financial assets:    
Cash and due from banks 52,013 60,471
Federal funds and interest-bearing balances 347,900 327,691
Carrying Value | Level 2    
Financial assets:    
Debt securities held to maturity 52,936 53,280
Loans held for sale 25,105 17,180
Restricted stock, at cost 30,932 30,829
Other equity securities 14,760 13,691
Accrued interest receivable 11,115 12,824
Financial liabilities:    
Deposits 3,370,581 3,398,760
Borrowings 33,832 69,725
Accrued interest payable 679 4,342
Carrying Value | Level 3    
Financial assets:    
Loans held for investment, net 2,999,539 3,088,625
Estimated Fair Value | Level 1 and Level 2    
Financial assets:    
Debt securities available for sale 234,890 142,001
Estimated Fair Value | Level 1    
Financial assets:    
Cash and due from banks 52,013 60,471
Federal funds and interest-bearing balances 347,900 327,691
Estimated Fair Value | Level 2    
Financial assets:    
Debt securities held to maturity 49,308 47,823
Loans held for sale 25,566 17,855
Restricted stock, at cost 30,932 30,829
Other equity securities 14,760 13,691
Accrued interest receivable 11,115 12,824
Financial liabilities:    
Deposits 3,370,456 3,398,447
Borrowings 34,149 69,876
Accrued interest payable 679 4,342
Estimated Fair Value | Level 3    
Financial assets:    
Loans held for investment, net $ 3,000,768 $ 3,080,175
v3.25.4
FAIR VALUE - Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale $ 234,890 $ 142,001
Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 161,016 83,274
SBA securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 3,816 5,333
U.S. Treasury    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 2,472 12,326
U.S. Agency    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 1,793 1,670
Collateralized mortgage obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 64,855 37,663
Taxable municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 938 909
Tax exempt bank-qualified municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 826
Recurring Fair Value Measurements    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 234,890 142,001
Recurring Fair Value Measurements | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 161,016 83,274
Recurring Fair Value Measurements | SBA securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 3,816 5,333
Recurring Fair Value Measurements | U.S. Treasury    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 2,472 12,326
Recurring Fair Value Measurements | U.S. Agency    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 1,793 1,670
Recurring Fair Value Measurements | Collateralized mortgage obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 64,855 37,663
Recurring Fair Value Measurements | Taxable municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 938 909
Recurring Fair Value Measurements | Tax exempt bank-qualified municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale   826
Recurring Fair Value Measurements | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 2,472 12,326
Recurring Fair Value Measurements | Level 1 | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 1 | SBA securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 1 | U.S. Treasury    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 2,472 12,326
Recurring Fair Value Measurements | Level 1 | U.S. Agency    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 1 | Collateralized mortgage obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 1 | Taxable municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 1 | Tax exempt bank-qualified municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale   0
Recurring Fair Value Measurements | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 232,418 129,675
Recurring Fair Value Measurements | Level 2 | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 161,016 83,274
Recurring Fair Value Measurements | Level 2 | SBA securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 3,816 5,333
Recurring Fair Value Measurements | Level 2 | U.S. Treasury    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 2 | U.S. Agency    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 1,793 1,670
Recurring Fair Value Measurements | Level 2 | Collateralized mortgage obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 64,855 37,663
Recurring Fair Value Measurements | Level 2 | Taxable municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 938 909
Recurring Fair Value Measurements | Level 2 | Tax exempt bank-qualified municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale   826
Recurring Fair Value Measurements | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 3 | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 3 | SBA securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 3 | U.S. Treasury    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 3 | U.S. Agency    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 3 | Collateralized mortgage obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale 0 0
Recurring Fair Value Measurements | Level 3 | Taxable municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale $ 0 0
Recurring Fair Value Measurements | Level 3 | Tax exempt bank-qualified municipals    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities available for sale   $ 0
v3.25.4
FAIR VALUE - Narrative (Details) - Fair Value, Nonrecurring - Real estate - other: - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Partial charge-off on loan $ 83 $ 967
Reserves recorded on loan $ 373  
v3.25.4
FAIR VALUE - Schedule of Fair Value of Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net $ 2,999,539 $ 3,088,625  
Other real estate owned, net 0 4,083 $ 0
Fair Value, Nonrecurring | Estimated Fair Value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other real estate owned, net   4,083  
Fair Value, Nonrecurring | Estimated Fair Value | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 13,908 34,691  
Fair Value, Nonrecurring | Construction and land development | Estimated Fair Value | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 13,908 9,708  
Fair Value, Nonrecurring | Real estate - other: | 1-4 family residential | Estimated Fair Value | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 4,191  
Fair Value, Nonrecurring | Real estate - other: | Multifamily residential | Estimated Fair Value | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0    
Fair Value, Nonrecurring | Real estate - other: | Commercial real estate and other | Estimated Fair Value | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 14,316  
Fair Value, Nonrecurring | Commercial and industrial | Estimated Fair Value | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 6,476  
Fair Value, Nonrecurring | Level 1      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other real estate owned, net   0  
Fair Value, Nonrecurring | Level 1 | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 1 | Construction and land development | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 1 | Real estate - other: | 1-4 family residential | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 1 | Real estate - other: | Multifamily residential | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0    
Fair Value, Nonrecurring | Level 1 | Real estate - other: | Commercial real estate and other | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 1 | Commercial and industrial | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 2      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other real estate owned, net   0  
Fair Value, Nonrecurring | Level 2 | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 2 | Construction and land development | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 2 | Real estate - other: | 1-4 family residential | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 2 | Real estate - other: | Multifamily residential | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0    
Fair Value, Nonrecurring | Level 2 | Real estate - other: | Commercial real estate and other | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 2 | Commercial and industrial | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 0  
Fair Value, Nonrecurring | Level 3      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Other real estate owned, net   4,083  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 13,908 34,691  
Fair Value, Nonrecurring | Level 3 | Construction and land development | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 13,908 9,708  
Fair Value, Nonrecurring | Level 3 | Real estate - other: | 1-4 family residential | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 4,191  
Fair Value, Nonrecurring | Level 3 | Real estate - other: | Multifamily residential | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0    
Fair Value, Nonrecurring | Level 3 | Real estate - other: | Commercial real estate and other | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net 0 14,316  
Fair Value, Nonrecurring | Level 3 | Commercial and industrial | Collateral Dependent Loans      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for investment, net $ 0 $ 6,476  
v3.25.4
FAIR VALUE - Schedule of Quantitative Information About Fair Value Measurements Measured on Nonrecurring Basis (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans $ 2,999,539 $ 3,088,625  
Other real estate owned, net 0 4,083 $ 0
Fair Value, Nonrecurring | Level 3      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
PCD loans   20,800  
Other real estate owned, net   $ 4,083  
Fair Value, Nonrecurring | Level 3 | Cost to sell | Minimum      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Other real estate owned, net, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Cost to sell | Maximum      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Other real estate owned, net, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Cost to sell | Weighted average      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Other real estate owned, net, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans 13,908 $ 34,691  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans 13,908 $ 9,708  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans 9,281    
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development | Fair value of land      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans $ 4,627    
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development | Cost to sell | Minimum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range % 0.0719 0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development | Cost to sell | Minimum | Fair value of land      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range % 0.0764    
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development | Cost to sell | Maximum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range % 0.0719 0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development | Cost to sell | Maximum | Fair value of land      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range % 0.0764    
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development | Cost to sell | Weighted average | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range % 0.0719 0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Construction and land development | Cost to sell | Weighted average | Fair value of land      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range % 0.0764    
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | 1-4 family residential      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans $ 0 $ 4,191  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | 1-4 family residential | Cost to sell | Minimum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | 1-4 family residential | Cost to sell | Maximum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | 1-4 family residential | Cost to sell | Weighted average | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | Commercial real estate and other      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans 0 $ 14,316  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | Commercial real estate and other | Cost to sell | Minimum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | Commercial real estate and other | Cost to sell | Maximum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | Commercial real estate and other | Cost to sell | Weighted average | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | Commercial real estate and other | Discount to appraised values | Minimum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.1813  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | Commercial real estate and other | Discount to appraised values | Maximum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.3000  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Real estate - other: | Commercial real estate and other | Discount to appraised values | Weighted average | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.1970  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans $ 0 $ 6,476  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans   894  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Fair value of collateral      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans   $ 5,582  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Cost to sell | Minimum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0800  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Cost to sell | Minimum | Fair value of collateral      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Cost to sell | Maximum | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.1000  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Cost to sell | Maximum | Fair value of collateral      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Cost to sell | Weighted average | Fair value of property      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0862  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Cost to sell | Weighted average | Fair value of collateral      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.0750  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Discount to appraised values | Minimum | Fair value of collateral      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.2000  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Discount to appraised values | Maximum | Fair value of collateral      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.6000  
Fair Value, Nonrecurring | Level 3 | Collateral Dependent Loans | Commercial and industrial | Discount to appraised values | Weighted average | Fair value of collateral      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Collateral dependent loans, range %   0.2737  
v3.25.4
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY - Condensed Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
ASSETS      
Cash $ 399,913 $ 388,162  
Accrued interest and other assets 37,039 35,728  
Total assets 4,033,386 4,031,654  
LIABILITIES      
Subordinated debt and other borrowings 33,832 69,725  
Accrued interest and other liabilities 33,451 33,023  
Total liabilities 3,456,800 3,519,818  
SHAREHOLDERS’ EQUITY      
Common stock 442,394 442,469  
Retained earnings 135,813 76,008  
Accumulated other comprehensive loss, net of taxes (1,621) (6,641)  
Total shareholders’ equity 576,586 511,836 $ 288,152
Total liabilities and shareholders’ equity 4,033,386 4,031,654  
Parent Company      
ASSETS      
Cash 21,377 4,098  
Investment in bank Subsidiary 591,819 577,083  
Other investments 2,005 1,610  
Accrued interest and other assets 8 380  
Total assets 615,209 583,171  
LIABILITIES      
Subordinated debt and other borrowings 33,832 69,725  
Accrued interest and other liabilities 4,791 1,610  
Total liabilities 38,623 71,335  
SHAREHOLDERS’ EQUITY      
Common stock 442,394 442,469  
Retained earnings 135,813 76,008  
Accumulated other comprehensive loss, net of taxes (1,621) (6,641)  
Total shareholders’ equity 576,586 511,836  
Total liabilities and shareholders’ equity $ 615,209 $ 583,171  
v3.25.4
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY - Condensed Statements of Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
INCOME    
Other interest and dividends $ 2,336 $ 1,777
Total interest and dividend income 225,980 179,798
EXPENSES    
Interest on borrowings 4,628 4,053
Other noninterest expense 8,405 5,778
Income tax benefit (24,899) (2,830)
Net income 63,058 5,433
Parent Company    
INCOME    
Other interest and dividends 11 0
Dividends from bank subsidiary 60,000 0
Total interest and dividend income 60,011 0
EXPENSES    
Interest on borrowings 4,628 2,950
Other noninterest expense 463 535
Total expenses 5,091 3,485
Income (loss) before income taxes 54,920 (3,485)
Income tax benefit 1,581 1,071
Income (loss) before equity in undistributed earnings of bank subsidiary 56,501 (2,414)
Equity in undistributed earnings of bank subsidiary 6,557 7,847
Net income $ 63,058 $ 5,433
v3.25.4
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY ONLY - Condensed Statements of Cash Flows (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
OPERATING ACTIVITIES    
Net income $ 63,058 $ 5,433
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Other items 4,295 22,087
Net cash provided by operating activities 57,290 50,292
INVESTING ACTIVITIES    
Cash acquired in business combination 0 336,298
Net cash provided by investing activities 29,753 524,655
FINANCING ACTIVITIES    
Repurchase of common stock under authorized stock repurchase program (3,366) 0
Common stock dividends (3,253) 0
Proceeds from exercise of stock options 132 950
Net cash used in financing activities (75,292) (273,578)
Net change in cash and cash equivalents 11,751 301,369
Cash and cash equivalents at beginning of year 388,162 86,793
Cash and cash equivalents at end of year 399,913 388,162
Parent Company    
OPERATING ACTIVITIES    
Net income 63,058 5,433
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Amortization of debt issuance costs and discounts 2,107 1,028
Equity in undistributed earnings of bank subsidiary (6,557) (7,847)
Other items 3,549 (168)
Net cash provided by operating activities 62,157 (1,554)
INVESTING ACTIVITIES    
Net purchase of other equity investments (391) (329)
Cash acquired in business combination 0 1,445
Net cash provided by investing activities (391) 1,116
FINANCING ACTIVITIES    
Repayment of subordinated debt (38,000) 0
Repurchase of common stock under authorized stock repurchase program (3,366) 0
Common stock dividends (3,253) 0
Proceeds from exercise of stock options 132 950
Net cash used in financing activities (44,487) 950
Net change in cash and cash equivalents 17,279 512
Cash and cash equivalents at beginning of year 4,098 3,586
Cash and cash equivalents at end of year $ 21,377 $ 4,098
v3.25.4
SUBSEQUENT EVENTS (Details)
Mar. 12, 2026
$ / shares
Subsequent Event  
Subsequent Event [Line Items]  
Common dividend declared (in dollars per share) $ 0.10