Fair Value Information

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Information

Note 15 – Fair Value Information

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 (dollars in thousands):

December 31, 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	$	—	$	32,467	$	—	$	32,467
U.S. Treasuries		—		2,792		—		2,792
U.S. Government Agencies		—		270		—		270
Municipal obligations		—		20,328		—		20,328
Corporate debt		—		833		—		833
Total available-for-sale:	$	—	$	56,690	$	—	$	56,690
Nonrecurring basis:
Collateral dependent loans	$	—	$	—	$	1,071	$	1,071
Other Real Estate Owned	$	—	$	—	$	3,000	$	3,000

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:
Impaired loans	$	—	$	—	$	3,951	$	3,951

The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Bank does not know whether the fair values shown represent values at which the respective financial instruments could be sold individually or in the aggregate.

There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2023, or 2022.

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 December 31, 2023	Fair Value		Valuation Methodologies		Valuation Model		Unobservable Input Valuation
Commercial		1,071		Appraisal		Receivables Discount/Liquidation Discount		0–50%
Total collateral dependent loans	$	1,071
Other Assets
Other Real Estate Owned	$	3,000		Appraisal		Appraisal Discount/Estimated Selling Costs		23	%
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 collateral dependent loans	$	3,951

The estimated fair values of the Company’s consolidated financial instruments at year-end are as follows (dollars in thousands):

			December 31,
			2023						2022
Financial assets	Fair Value Hierarchy		Carrying Amount			Fair Value			Carrying Amount			Fair Value
Cash and due from banks		Level 1	$	27,182		$	27,182		$	16,112		$	16,112
Federal funds sold		Level 2		1,715			1,715			835			835
Securities available-for-sale		Level 2		56,690			56,690			58,582			58,582
Securities held-to-maturity		Level 2		5,684			5,107			5,832			5,432
Loans held for investment		Level 3		457,027			437,878			463,360			419,251
Other Real Estate Owned		Level 3		3,000			3,000
Other investments		Level 2		4,063			4,063			1,277			1,277
Accrued interest receivable		Level 1		1,597			1,597			1,505			1,505
Financial liabilities
Nonmaturity Deposits		Level 1	$	(331,596	)	$	(331,596	)	$	(414,094	)	$	(414,094	)
Time deposits		Level 2		(128,403	)		(128,108	)		(73,493	)		(71,932	)
FRB and FHLB advances		Level 2		(29,000	)		(29,000	)		(5,000	)		(5,292	)
Subordinated debentures		Level 3		(24,595	)		(20,421	)		(24,531	)		(21,728	)
Accrued interest payable		Level 1		(521	)		(521	)		(562	)		(562	)