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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to          

Commission File Number: 001-38483

BAYCOM CORP

(Exact name of registrant as specified in its charter)

California

 

37-1849111

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

500 Ygnacio Valley Road, Suite 200, Walnut Creek, California

 

94596

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code:  (925) 476-1800

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, no par value per share

BCML

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes    No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date.

As of May 8, 2024, there were 11,248,342 shares of the registrant’s common stock outstanding.

BAYCOM CORP

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION

2

ITEM 1. FINANCIAL STATEMENTS

2

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

33

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

52

ITEM 4. CONTROLS AND PROCEDURES

52

PART II — OTHER INFORMATION

53

ITEM 1. LEGAL PROCEEDINGS

53

ITEM 1A. RISK FACTORS

53

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

53

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

53

ITEM 4. MINE SAFETY DISCLOSURES

53

ITEM 5. OTHER INFORMATION

54

ITEM 6. EXHIBITS

54

SIGNATURES

55

As used throughout this report, the terms “we,” “our,” “us,” “BayCom,” or the “Company” refer to BayCom Corp and its consolidated subsidiary, United Business Bank, which we sometimes refer to as the “Bank,” unless the context otherwise requires.

1

BAYCOM CORP AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share data)

(unaudited)

March 31, 

December 31, 

    

2024

    

2023

ASSETS

 

  

 

  

Cash due from banks

$

20,379

$

17,901

Federal funds sold and interest-bearing balances in banks

 

327,953

 

289,638

Cash and cash equivalents

348,332

 

307,539

Time deposits in banks

996

 

1,245

Investment securities available-for-sale ("AFS"), at fair value, net of allowance for credit losses of $0 at both March 31, 2024 and December 31, 2023

167,919

 

163,152

Equity securities

13,158

12,585

Federal Home Loan Bank ("FHLB") stock, at par

11,313

 

11,313

Federal Reserve Bank ("FRB") stock, at par

9,630

 

9,626

Loans held for sale

1,684

 

Loans, net of allowance for credit losses of $18,890 at March 31, 2024 and $22,000 at December 31, 2023

1,867,840

 

1,905,829

Premises and equipment, net

14,355

 

13,734

Core deposit intangible, net

3,610

 

3,915

Cash surrender value of bank owned life insurance ("BOLI") policies, net

23,044

 

22,867

Right-of-use assets ("ROU"), net

13,460

13,939

Goodwill

38,838

 

38,838

Interest receivable and other assets

46,530

 

47,378

Total assets

$

2,560,709

$

2,551,960

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

Noninterest and interest bearing deposits

$

2,142,907

$

2,132,750

Junior subordinated deferrable interest debentures, net

 

8,585

 

8,565

Subordinated debt, net

63,609

63,881

Salary continuation plan

 

4,667

 

4,552

Lease liabilities

 

14,321

 

14,752

Interest payable and other liabilities

 

12,385

 

14,591

Total liabilities

 

2,246,474

 

2,239,091

Commitments and contingencies (Note 17)

 

  

 

  

Shareholders' equity

 

  

 

  

Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding at both March 31, 2024 and December 31, 2023

 

 

Common stock, no par value; 100,000,000 shares authorized; 11,377,117 and 11,551,271 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

 

177,075

 

180,913

Additional paid in capital

 

287

 

287

Accumulated other comprehensive loss, net of tax

 

(14,108)

 

(14,592)

Retained earnings

 

150,981

 

146,261

Total shareholders’ equity

 

314,235

 

312,869

Total liabilities and shareholders’ equity

$

2,560,709

$

2,551,960

See Notes to Condensed Consolidated Financial Statements.

3

BAYCOM CORP AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except for share and per share data)

(unaudited)

Three months ended

March 31, 

    

2024

    

2023

(As Restated)

Interest income:

 

  

 

  

Loans, including fees

$

25,257

$

26,255

Investment securities

 

1,956

 

1,640

Fed funds sold and interest-bearing balances in banks

4,115

1,829

FHLB dividends

 

272

 

188

FRB dividends

 

144

 

144

Total interest and dividend income

 

31,744

 

30,056

Interest expense:

 

  

 

  

Deposits

 

8,227

 

3,700

Subordinated debt

893

896

Junior subordinated deferrable interest debentures

 

217

 

203

Total interest expense

 

9,337

 

4,799

Net interest income

 

22,407

 

25,257

Provision for credit losses

 

252

 

275

Net interest income after provision for credit losses

 

22,155

 

24,982

Noninterest income:

 

  

 

  

Gain on sale of loans

 

 

412

Gain (loss) on equity securities

573

(896)

Service charges and other fees

 

839

 

885

Loan servicing and other loan fees

 

392

 

410

(Loss) income on investment in Small Business Investment Company (“SBIC”) fund

 

(30)

 

489

Other income and fees

 

288

 

261

Total noninterest income

 

2,062

 

1,561

Noninterest expense:

 

  

 

  

Salaries and employee benefits

 

10,036

 

11,036

Occupancy and equipment

 

2,154

 

2,027

Data processing

 

1,753

 

1,465

Other expense

 

2,128

 

2,001

Total noninterest expense

 

16,071

 

16,529

Income before provision for income taxes

 

8,146

 

10,014

Provision for income taxes

 

2,269

 

2,823

Net income

$

5,877

$

7,191

Earnings per common share:

 

  

 

  

Basic earnings per common share

$

0.51

$

0.57

Weighted average common shares outstanding

 

11,525,752

 

12,699,476

Diluted earnings per common share

$

0.51

$

0.57

Weighted average common shares outstanding

 

11,525,752

 

12,699,476

See Notes to Condensed Consolidated Financial Statements.

4

BAYCOM CORP AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(unaudited)

Three months ended

March 31, 

    

2024

    

2023

    

(As Restated)

Net income

$

5,877

$

7,191

Other comprehensive loss:

 

  

 

  

Change in unrealized gain (loss) on AFS securities

 

696

 

(1,821)

Deferred tax (expense) benefit

 

(212)

 

524

Other comprehensive income (loss), net of tax

 

484

 

(1,297)

Total comprehensive income

$

6,361

$

5,894

See Notes to Condensed Consolidated Financial Statements.

5

BAYCOM CORP AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands, except for share and per share data)

(unaudited)

    

    

    

    

Accumulated

    

    

Common

Additional

Other

Total

Number of

Stock

Paid in

Comprehensive

Retained

Shareholders’

Shares

Amount

Capital

Income/(Loss)

Earnings

Equity

Three months ended March 31, 2024

Balance, December 31, 2023

11,551,271

$

180,913

$

287

$

(14,592)

$

146,261

$

312,869

Net income

5,877

5,877

Other comprehensive income, net

484

484

Restricted stock granted

24,471

Forfeiture of restricted stock grants

(505)

Cash dividends of $0.10 per share

(1,157)

(1,157)

Stock based compensation

160

160

Repurchase of shares

(198,120)

(3,998)

(3,998)

Balance, March 31, 2024

11,377,117

$

177,075

$

287

$

(14,108)

$

150,981

$

314,235

Three months ended March 31, 2023

Balance, December 31, 2022
(As Restated)

12,838,462

$

204,301

$

287

$

(11,561)

$

124,122

$

317,149

Net income

7,191

7,191

Other comprehensive loss, net

(1,297)

(1,297)

Cumulative change from adoption of ASU 2016-13, net of tax

(491)

(491)

Restricted stock granted

28,392

Cash dividends of $0.10 per share

(1,264)

(1,264)

Stock based compensation

250

250

Repurchase of shares

(422,877)

(8,066)

(8,066)

Balance, March 31, 2023
(As Restated)

12,443,977

$

196,485

$

287

$

(12,858)

$

129,558

$

313,472

See Notes to Condensed Consolidated Financial Statements.

6

BAYCOM CORP AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

Three months ended

March 31, 

    

2024

    

2023

 

(As Restated)

Cash flows from operating activities:

 

  

 

  

 

Net income

$

5,877

$

7,191

Adjustments to reconcile net income to net cash provided by operating activities:

 

  

 

  

Provision for credit losses

 

252

 

275

Deferred tax expense

 

1,909

 

1,681

Accretion on acquired loans

 

(38)

 

(893)

Gain on sale of loans

 

 

(412)

Proceeds from sale of loans

 

 

8,497

Loans originated for sale

 

 

(6,372)

Accretion on junior subordinated debentures

 

20

 

20

Gain on repayment of subordinated debt, net

34

Increase in cash surrender value of life insurance policies

 

(177)

 

(166)

Amortization/accretion of premiums/discounts on investment securities, net

 

36

 

113

(Gain) loss on equity securities

(573)

896

Depreciation and amortization

 

491

 

453

Core deposit intangible amortization

 

305

 

369

Stock based compensation expense

 

160

 

250

Increase (decrease) in deferred loan origination fees, net

 

64

 

(66)

Net change in interest receivable and other assets

 

(811)

 

1,317

Increase in salary continuation plan, net

 

115

 

81

Net change in interest payable and other liabilities

 

(2,581)

 

(5,046)

Net cash provided by operating activities

 

5,083

 

8,188

Cash flows from investing activities:

 

  

 

  

Proceeds from maturities of interest bearing deposits in banks

 

249

 

Purchase of investment securities AFS

 

(7,132)

 

(1,500)

Proceeds from maturities, repayments and calls of investment securities AFS

 

3,025

 

1,170

Purchase of FRB stock

 

(4)

 

(7)

Decrease (increase) in loans, net

 

36,027

 

(20,560)

Purchase of equipment and leasehold improvements, net

 

(1,143)

 

(148)

Net cash provided by (used in) investing activities

 

31,022

 

(21,045)

7

BAYCOM CORP AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – (continued)

(In thousands)

(unaudited)

Three months ended

March 31, 

    

2024

    

2023

    

(As Restated)

Cash flows from financing activities:

 

  

 

  

 

Decrease in noninterest and interest bearing deposits in banks, net

 

(26,816)

 

(54,301)

 

Increase in time deposits, net

 

36,973

 

96,591

 

Repayment of subordinated debt, net

(315)

Repurchase of common stock

 

(3,998)

 

(8,066)

 

Dividends paid on common stock

(1,156)

(644)

Net cash provided by financing activities

 

4,688

 

33,580

 

Increase in cash and cash equivalents

 

40,793

 

20,723

 

Cash and cash equivalents at beginning of period

 

307,539

 

176,815

 

Cash and cash equivalents at end of period

$

348,332

$

197,538

Supplemental disclosure of cash flow information:

 

  

 

  

Cash paid during the year for:

 

  

 

  

Interest expense

$

9,673

$

5,108

Income taxes paid, net

 

10

Recognition of ROU assets

575

Recognition of lease liability

570

Non-cash operating activities:

Increase in allowance for credit losses upon adoption of ASU 2016-03

$

$

1,545

Non-cash investing and financing activities:

 

  

 

  

Change in unrealized gain (loss) on AFS securities, net of tax

$

484

$

(1,297)

Transfer of loans to held-for-sale

1,684

Cash dividends declared on common stock not yet paid

(1,157)

(1,264)

See Notes to Condensed Consolidated Financial Statements.

8

NOTE 1 – BASIS OF PRESENTATION

BayCom Corp (the “Company”) is a bank holding company headquartered in Walnut Creek, California. United Business Bank (the “Bank”), the Company’s wholly owned banking subsidiary, is a California state-chartered bank which provides a broad range of financial services primarily to local small and mid-sized businesses, service professionals and individuals. In its 19 years of operation, the Bank has grown to 35 full-service banking branches, with 16 locations in California, one in Nevada, two in Washington, five in New Mexico and 11 in Colorado. The condensed consolidated financial statements include the accounts of the Company and the Bank.

All intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements include all adjustments of a normal and recurring nature, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented to the nearest thousands of dollars except per share amounts. If the amounts are above $1.0 million, they are rounded one decimal point, and if they are above $1.0 billion, they are rounded two decimal points.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes normally included in annual financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Results of operations for interim periods are not necessarily indicative of results for the full year. Certain prior year information has been reclassified to conform to the current year presentation. None of the reclassifications impacted consolidated net income, earnings per share or shareholders’ equity.

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for a public company that qualified as an “emerging growth company,” or EGC. The Company qualified as an EGC and remained an EGC until December 31, 2023, the last day of the Company’s fiscal year following the fifth anniversary of the completion of the Company’s initial public offering. As an EGC, we were permitted to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements were made applicable to private companies. We took advantage of the benefits of this extended transition period; accordingly, our condensed consolidated financial statements for periods prior to our exit from EGC status may not be comparable to companies that comply with such new or revised accounting standards.

Restatement of Previously Issued Consolidated Financial Statements

On July 18, 2023, the audit committee of the Company’s board of directors concluded that the Company’s previously issued unaudited interim consolidated financial statements for the period ended March 31, 2023 and the consolidated financial statements for the year ended December 31, 2022, as well as for the unaudited interim periods included in that fiscal year (collectively, “Restated Periods”), should no longer be relied upon because of errors related to the accounting for unrealized losses on preferred equity securities that resulted in material misstatements of noninterest income and accumulated other comprehensive income.

At the time of its purchase of the preferred equity securities for investment purposes, the Company inappropriately accounted for them as AFS debt securities under Accounting Standards Codification (“ASC”) Topic 320 – Investments-Debt Securities. As such, the changes in the fair value of these securities were not recorded as part of net income but rather as a component of shareholders’ equity (in accumulated other comprehensive income, net of tax). However, as a result of subsequent research and third-party consultation, the Company determined that the securities should instead have been accounted for under ASC Topic 321 – Investments-Equity Securities. The result of this change in classification of the preferred equity securities is that the change in the fair value of the securities each quarter should have been recorded in noninterest income on the consolidated statements of income.

9

On July 25, 2023, the Company filed amendments to its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2023, September 30, 2022, June 30, 2022, and March 31, 2022, and its Form 10-K for the year ended December 31, 2022, (the “Original Reports”) with the Securities and Exchange Commission (“SEC”), to reflect the restatement of the Company’s consolidated financial statements for the Restated Periods (the “Amended Form 10-Qs” and the “Amended Form 10-K,” collectively, the “Amended Reports”).

As disclosed in the Original Reports, the Company recorded the change, net of taxes, in the fair value of preferred equity securities as part of other comprehensive loss, net of taxes, under ASC Topic 320 – Investments-Debt Securities rather than as part of non-interest income under ASC Topic 321 – Investments-Equity Securities. In addition, various footnotes in the Amended Reports reflect the effects of these restatements.

For additional information on the effects of the restatement, see Note 2 Restatement of Consolidated Financial Statements in the Notes to Consolidated Financial Statements contained in the Amended Form 10-K and Note 3. Restatement of the Consolidated Financial Statements in the Notes to Condensed Consolidated Financial Statements contained in each of the Amended Form 10-Qs.

NOTE 2 - ACCOUNTING GUIDANCE NOT YET EFFECTIVE AND ADOPTED ACCOUNTING GUIDANCE

Accounting Guidance Adopted in 2024

On January 1, 2024, the Company adopted Accounting Standards Update (“ASU”) 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, a consensus of the Emerging Issues Task Force. ASU 2023-02 allows an entity the option to apply the proportional amortization method of accounting to other equity investments that are made for the primary purpose of receiving tax credits or other income tax benefits if certain conditions are met. Prior to this ASU, the application of the proportional amortization method of accounting was limited to investments in low-income housing tax credit structures. The proportional amortization method of accounting results in the amortization of applicable investments, as well as the related income tax credits or other income tax benefits received, being presented on a single line in the statements of income, income tax expense. Under this ASU, an entity has the option to apply the proportional amortization method of accounting to applicable investments on a tax-credit-program-by-tax-credit program basis. In addition, the amendments in this ASU require that all tax equity investments accounted for using the proportional amortization method use the delayed equity contribution guidance in paragraph 323-740-25-3, requiring a liability to be recognized for delayed equity contributions that are unconditional and legally binding or for equity contributions that are contingent upon a future event when that contingent event becomes probable. Under this ASU, low-income housing tax credit investments for which the proportional amortization method is not applied can no longer be accounted for using the delayed equity contribution guidance. Further, this ASU specifies that impairment of low-income housing tax credit investments not accounted for using the equity method must apply the impairment guidance in Subtopic 323-10: Investments - Equity Method and Joint Ventures - Overall. This ASU also clarifies that for low-income housing tax credit investments not accounted for under the proportional amortization method or the equity method, an entity shall account for them under Topic 321: Investments - Equity Securities. The amendments in the ASU also require additional disclosures in interim and annual periods concerning investments for which the proportional amortization method is applied, including (i) the nature of tax equity investments, and (ii) the effect of tax equity investments and related income tax credits and other income tax benefits on the financial position and results of operations. ASU 2023-02 is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The adoption of ASU 2023-02 did not have a material impact on the Company's consolidated financial statements and related disclosures.

Fair Value Measurement (Topic 820) - In June 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The guidance in the ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account on the equity security and, therefore, is not considered in measuring fair value. The ASU also requires additional disclosures about the restriction. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of ASU 2022-03 did not have a significant impact on the Company's consolidated financial statements and related disclosures.

10

Recent Accounting Guidance Not Yet Effective

Business Combinations (Topic 805) - In August 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture (JV) Formations: Recognition and Initial Measurement. The guidance requires newly-formed JVs to apply a new basis of accounting to all of its contributed net assets, which results in the JV initially measuring its contributed net assets under ASC 805-20, Business Combinations. The new guidance would be applied prospectively and is effective for all newly-formed joint venture entities with a formation date on or after January 1, 2025, with early adoption permitted. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

Segment Reporting – Improvements to Reportable Segment Disclosures (Topic 280) – In November 2023, the FASB issued ASU 2023-07 to enhance disclosures about significant segment expenses for public entities reporting segment information under Topic 280. It requires that a public entity disclose, on an annual and interim basis, significant expense categories for each reportable segment. 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 amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Entities must adopt the guidance on a retrospective basis. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

Income Taxes – Improvements to Income Tax Disclosures (Topic 740) –In December 2023, the FASB issued ASU 2023-09 to provide additional transparency into an entity’s income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The standard requires that public business entities disclose, on an annual basis, specific categories in the rate reconciliation and additional information for reconciling items meeting a certain quantitative threshold. The amendments also require that entities disclose on an annual basis: 1) income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes and 2) the income taxes paid (net of refunds received) disaggregated by individual jurisdictions exceeding 5% of total income taxes paid (net of refunds received). The amendments are effective for public business entities for annual periods beginning after December 15, 2024. The Company is evaluating the accounting and disclosure requirements of this update and does not expect them to have a material effect on the consolidated financial statements.

11

NOTE 3 – INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities AFS at the dates indicated are summarized as follows:

    

    

Gross

    

Gross

Amortized

unrealized

unrealized

Estimated

cost

gains

losses

fair value

March 31, 2024

  

 

  

 

  

  

Municipal securities

$

23,080

$

98

$

(1,326)

$

21,852

Mortgage-backed securities

 

40,499

 

136

 

(3,745)

 

36,890

Collateralized mortgage obligations

 

37,787

 

136

 

(2,330)

 

35,593

SBA securities

 

4,954

 

40

 

(82)

 

4,912

Corporate bonds

 

81,391

 

7

 

(12,726)

 

68,672

Total

$

187,711

$

417

$

(20,209)

$

167,919

    

    

Gross

    

Gross

Amortized

unrealized

unrealized

Estimated

cost

gains

losses

fair value

December 31, 2023

  

 

  

 

  

  

Municipal securities

$

21,910

$

75

$

(1,158)

$

20,827

Mortgage-backed securities

 

41,048

 

194

 

(3,641)

 

37,601

Collateralized mortgage obligations

 

35,019

 

256

 

(2,299)

 

32,976

SBA securities

 

5,280

 

49

 

(77)

 

5,252

Corporate bonds

 

80,383

 

7

 

(13,894)

 

66,496

Total

$

183,640

$

581

$

(21,069)

$

163,152

Amortized cost and fair values exclude accrued interest receivable of $1.5 million and $1.2 million at March 31, 2024 and December 31, 2023, respectively, which is included in interest receivable and other assets in the condensed consolidated balance sheets.

During both the three months ended March 31, 2024 and 2023, the Company sold no securities AFS.

The amortized cost and estimated fair value of securities AFS at the dates indicated by contractual maturity 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.

March 31, 2024

December 31, 2023

    

Amortized

    

Estimated

    

Amortized

    

Estimated

cost

fair value

cost

fair value

Securities AFS

 

  

 

  

 

  

 

  

Due in one year or less

$

4,880

$

4,839

$

6,397

$

6,338

Due after one through five years

 

16,285

 

14,560

 

15,909

 

14,206

Due after five years through ten years

 

102,621

 

89,055

 

102,430

 

87,867

Due after ten years

 

63,925

 

59,465

 

58,904

 

54,741

Total

$

187,711

$

167,919

$

183,640

$

163,152

At March 31, 2024, there were $12.0 million securities pledged, compared to no securities pledged at December 31, 2023.

12

The estimated fair value and gross unrealized losses for securities AFS aggregated by the length of time that individual securities have been in a continuous unrealized loss position at the dates indicated are as follows:

Less than 12 months

12 months or more

Total

    

Estimated

    

Unrealized

    

Estimated

    

Unrealized

    

Estimated

    

Unrealized

fair value

loss

fair value

loss

fair value

loss

March 31, 2024