Fair Value Information (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities measured at Fair Value

The following table presents information about assets and liabilities measured at fair value on a recurring and non-recurring basis and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair values as of September 30, 2023, and December 31, 2022 (dollars in thousands).

September 30, 2023	Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value
Recurring
Assets
Securities available-for-sale
Mortgage-backed securities	$	—	$	30,093	$	—	$	30,093
U.S. Treasuries		—		2,704		—		2,704
U.S. Government Agencies		—		280		—		280
Municipal obligations		—		19,469		—		19,469
Corporate debt		—		816		—		816
Total available-for-sale	$	—	$	53,362	$	—	$	53,362
Nonrecurring basis
Collateral dependent loans		—		—	$	5,338	$	5,338
December 31, 2022	Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Fair Value
Recurring
Assets
Securities available-for-sale
Mortgage-backed securities	$	—	$	34,532	$	—	$	34,532
U.S. Treasuries		—		2,717		—		2,717
U.S. Government Agencies		—		370		—		370
Municipal obligations		—		20,151		—		20,151
Corporate debt		—		812		—		812
Total available-for-sale	$	—	$	58,582	$	—	$	58,582
Nonrecurring basis
Collateral dependent loans	$	—	$	—	$	3,951	$	3,951

Fair Value Measurement Inputs and Valuation Techniques

The following table presents the significant unobservable inputs used in the fair value measurements for Level 3 financial assets measured on a non-recurring basis (dollars in thousands):

Collateral Dependent Loans September 30, 2023	Fair Value		Valuation Methodologies	Valuation Model	Unobservable Input Valuation
1–4 family residential RE	$	—
Commercial		1,838	Appraisal	Receivables Discount/Liquidation Discount	0–50	%
NOO CRE		3,500	Appraisal	Appraisal Discount/Estimated Selling Costs	7–50	%
Construction		—
Multifamily		—
Total impaired loans	$	5,338
Collateral Dependent Loans December 31, 2022	Fair Value		Valuation Methodologies	Valuation Model	Unobservable Input Valuation
Commercial	$	1,641	Appraisal	Receivables Discount/Liquidation Discount	0–18	%
NOO CRE		1,591	Appraisal	Appraisal Discount/Estimated Selling Costs	18–50	%
1–4 family residential RE		719	Appraisal	Appraisal Discount/Estimated Selling Costs	0–18	%
Total impaired loans	$	3,951

Schedule of Fair Value of Financial Instruments

The estimated fair values of the Company’s consolidated financial instruments at September 30, 2023, and December 31, 2022 are as follows (dollars in thousands):

		September 30,						December 31,
		2023						2022
	Fair Value	Carrying			Fair			Carrying			Fair
	Hierarchy	Amount			Value			Amount			Value
Financial assets
Cash and due from banks	Level 1	$	12,898		$	12,898		$	16,112		$	16,112
Federal funds sold	Level 2		1,640			1,640			835			835
Securities available-for-sale	Level 2		53,362			53,362			58,582			58,582
Securities held-to-maturity	Level 2		5,765			5,023			5,832			5,432
Loans	Level 3		480,216			457,406			463,360			419,251
Other investments	Level 2		2,915			2,915			1,277			1,277
Accrued interest receivable	Level 1		1,489			1,489			1,505			1,505
Financial liabilities
Nonmaturity Deposits	Level 1	$	(339,116	)	$	(339,116	)	$	(414,094	)	$	(414,094	)
Time deposits	Level 2		(129,275	)		(130,588	)		(73,493	)		(71,932	)
FHLB advances	Level 2		(18,000	)		(18,000	)		(5,000	)		(5,292	)
Subordinated debentures	Level 3		(24,581	)		(20,277	)		(24,531	)		(21,728	)
Accrued interest payable	Level 1		(357	)		(357	)		(562	)		(562	)