Fair Value (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2023 and December 31, 2022:


	Fair Value Measurements at September 30, 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	$	9,431	$	—	$	9,431	$	—
Freddie Mac	11,402		—		11,402		—
Ginnie Mae	26,506		—		26,506		—
Other	29,285		—		29,285		—
Municipal bonds	29,330		—		29,330		—
U.S. Government agencies	70,707		39,194		31,513		—
Corporate bonds	28,314		—		28,314		—
Total available-for-sale investments	204,975		39,194		165,781		—
Derivative fair value asset	10,698		—		10,698		—
Total	$	215,673	$	39,194	$	176,479	$	—


	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 September 30, 2023 and December 31, 2022:


	Fair Value Measurements at September 30, 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	$	45,850	$	—	$	—	$	45,850

Total	$	45,850	$	—	$	—	$	45,850


	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 September 30, 2023 and December 31, 2022:

September 30, 2023

Fair Value

Valuation Technique

Unobservable Input(s)

Range (Weighted Average)

(Dollars in thousands)

Collateral dependent loans

45,850

Market approach

Appraised value discounted by market or borrower conditions

0.0% - 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:


	September 30, 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	$	8,074	$	8,074	$	8,074	$	—	$	—
Interest-earning deposits with banks	49,618		49,618		49,618		—		—
Investments available-for-sale	204,975		204,975		39,194		165,781		—
Investments held-to-maturity	2,450		2,450		—		2,450		—
Loans receivable, net	1,168,079		1,101,010		—		—		1,101,010
FHLB stock	6,803		6,803		—		6,803		—
Accrued interest receivable	7,263		7,263		—		7,263		—
Derivative fair value asset	10,698		10,698		—		10,698		—

Financial Liabilities:
Deposits	684,992		684,992		684,992		—		—
Certificates of deposit, retail	349,446		343,663		—		343,663		—

Brokered deposits	175,972		175,808		—		175,808		—
Advances from the FHLB	125,000		124,998		—		124,998		—
Accrued interest payable	2,646		2,646		—		2,646		—


	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		—
Brokered deposits	124,886		124,843		—		124,843		—
Advances from the FHLB	145,000		144,999		—		144,999		—
Accrued interest payable	328		328		—		328		—