Other Employee Benefit Plans

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Other Employee Benefit Plans

11. OTHER EMPLOYEE BENEFIT PLANS

Profit Sharing Plan

In 2007, the Company adopted the California Bank of Commerce Profit Sharing 401(k) Plan. All full-time employees 21 years of age or older with 3 months of service are eligible to participate in the 401(k) Plan. Eligible employees may elect to make tax deferred contributions up to the maximum amount allowed by law. The Company may make additional contributions to the plan at the discretion of the Board of Directors. Bank contributions may vest at a rate of 20% annually for all employees. The Company made a fully vested contribution to the 401(k) Plan for the years ended December 31, 2022 and 2021 in the amount of $792,000 and $745,000, respectively.

Salary Continuation and Retirement Plan

The Board of Directors approved a salary continuation plan for certain executives. Under the plan, once these certain executives reach age 65, the Company is obligated to provide them with annual benefits after retirement. The estimated present value of these future benefits has been accrued from the effective date of the plan. The discount rate used to estimate the present value of future benefits was 4.30% and 3.25% for the years ended December 31, 2022 and 2021 respectively.

The expense recognized under this plan for the years ended December 31, 2022 and 2021 totaled $298,000 and $1.2 million, respectively. Accrued compensation payable under the salary continuation plan totaled $3.6 million and $3.3 million at December 31, 2022 and 2021, respectively, and is included in accrued interest payable and other liabilities on the balance sheet.