Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the balances of assets measured at fair value on a recurring basis (there were no transfers between Level 1, Level 2 and Level 3 recurring measurements) at March 31, 2023 and December 31, 2022:


	Fair Value Measurements at March 31, 2023
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Investments available-for-sale:
Mortgage-backed investments:
Fannie Mae	$	10,031	$	—	$	10,031	$	—
Freddie Mac	11,999		734		11,265		—
Ginnie Mae	27,753		—		27,753		—
Other	31,706		—		31,706		—
Municipal bonds	31,873		—		31,873		—
U.S. Government agencies	73,147		38,768		34,379		—
Corporate bonds	28,439		—		28,439		—
Total available-for-sale investments	214,948		39,502		175,446		—
Derivative fair value asset	8,936		—		8,936		—
Total	$	223,884	$	39,502	$	184,382	$	—


	Fair Value Measurements at December 31, 2022
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
Investments available-for-sale:
Mortgage-backed investments:
Fannie Mae	$	9,940	$	—	$	9,940	$	—
Freddie Mac	11,889		736		11,153		—
Ginnie Mae	27,843		—		27,843		—
Other	32,389		—		32,389		—
Municipal bonds	30,883		—		30,883		—
U.S. Government agencies	74,354		38,450		35,904		—
Corporate bonds	30,480		—		30,480		—
Total available-for-sale investments	217,778		39,186		178,592		—
Derivative fair value asset	10,485		—		10,485		—
Total	$	228,263	$	39,186	$	189,077	$	—

Schedule of balances of assets and liabilities, measured at fair value on a non-recurring basis

The tables below present the balances of assets measured at fair value on a nonrecurring basis at March 31, 2023 and December 31, 2022:


	Fair Value Measurements at March 31, 2023
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Collateral dependent loans included in loans receivable	$	46,775	$	—	$	—	$	46,775

Total	$	46,775	$	—	$	—	$	46,775


	Fair Value Measurements at December 31, 2022
	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Impaired loans (included in loans receivable, net) (1)	$	48,521	$	—	$	—	$	48,521

Total	$	48,521	$	—	$	—	$	48,521

_____________

(1) Total fair value of impaired loans is net of $13,000 of specific allowances on performing TDRs.

Schedule of quantitative information about Level 3 Fair Value Measurements on a nonrecurring basis

The following tables present quantitative information about Level 3 fair value measurements for assets measured at fair value on a nonrecurring basis at March 31, 2023 an December 31, 2022:

March 31, 2023

Fair Value

Valuation Technique

Unobservable Input(s)

Range (Weighted Average)

(Dollars in thousands)

Collateral Dependent Loans

46,775

Market approach

Appraised value discounted by market or borrower conditions

0.0%

(0.0%)

December 31, 2022

Fair Value

Valuation Technique

Unobservable Input(s)

Range (Weighted Average)

(Dollars in thousands)

Impaired Loans

48,521

Market approach

Appraised value discounted by market or borrower conditions

0.0% - 6.91%

(0.06%)

Fair Value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of financial instruments were as follows at the dates indicated:


	March 31, 2023
			Estimated		Fair Value Measurements Using:
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash on hand and in banks	$	9,618	$	9,618	$	9,618	$	—	$	—
Interest-earning deposits with banks	70,998		70,998		70,998		—		—
Investments available-for-sale	214,949		214,949		39,502		175,447		—
Investments held-to-maturity	2,439		2,439		—		2,439		—
Loans receivable, net	1,184,750		1,132,310		—		—		1,132,310
FHLB stock	8,203		8,203		—		8,203		—
Accrued interest receivable	7,011		7,011		—		7,011		—
Derivative fair value asset	8,936		8,936		—		8,936		—

Financial Liabilities:
Deposits	702,780		702,780		702,780		—		—
Certificates of deposit, retail	332,934		326,306		—		326,306		—

Brokered deposits	191,414		191,241		—		191,241		—
Advances from the FHLB	160,000		159,998		—		159,998		—
Accrued interest payable	749		749		—		749		—


	December 31, 2022
			Estimated		Fair Value Measurements Using:
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash on hand and in banks	$	7,722	$	7,722	$	7,722	$	—	$	—
Interest-earning deposits with banks	16,598		16,598		16,598		—		—
Investments available-for-sale	217,778		217,778		39,186		178,592		—
Investments held-to-maturity	2,444		2,444		—		2,444		—
Loans receivable, net	1,167,083		1,120,403		—		—		1,120,403
FHLB stock	7,512		7,512		—		7,512		—
Accrued interest receivable	6,513		6,513		—		6,513		—
Derivative fair value asset	10,485		10,485		—		10,485		—

Financial Liabilities:
Deposits	782,600		782,600		782,600		—		—
Certificates of deposit, retail	262,554		254,004		—		254,004		—
Certificates of deposit, brokered	124,886		124,843		—		124,843		—
Advances from the FHLB	145,000		144,999		—		144,999		—
Accrued interest payable	328		328		—		328		—