FAIR VALUE INFORMATION

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE INFORMATION

NOTE 14 – 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):

March 31, 2024	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	$	—	$	69,763	$	—	$	69,763
U.S. Treasuries		—		2,770		—		2,770
U.S. Government Agencies		—		8,585		—		8,585
Municipal obligations		—		20,252		—		20,252
Corporate debt		—		856		—		856
Total available-for-sale:	$	—	$	102,226	$	—	$	102,226
Nonrecurring basis:
Collateral Dependent Loans	$	—	$	—	$	1,193	$	1,193

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

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 three months ended March 31, 2024, or the year ended December 31, 2023.

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 March 31, 2024	Fair Value		Valuation Methodologies	Valuation Model	Unobservable Input Valuation
Commercial		1,193	Appraisal	Receivables Discount/Liquidation Discount	0–50%
Total collateral dependent loans	$	1,193
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	%

The estimated fair values of the Company’s consolidated financial instruments on the dates noted are as follows (dollars in thousands):

			March 31,						December 31,
			2024						2023
Financial assets	Fair Value Hierarchy		Carrying Amount			Fair Value			Carrying Amount			Fair Value
Cash and due from banks		Level 1	$	66,234		$	66,234		$	27,182		$	27,182
Federal funds sold		Level 2		6,510			6,510			1,715			1,715
Securities available-for-sale		Level 2		102,226			102,226			56,690			56,690
Securities held-to-maturity		Level 2		5,645			5,235			5,684			5,107
Loans held for investment		Level 3		750,307			730,156			457,027			437,878
Other investments		Level 2		6,097			6,097			4,063			4,063
Accrued interest receivable		Level 1		2,961			2,961			1,597			1,597
Financial liabilities
Nonmaturity Deposits		Level 1	$	(591,281	)	$	(591,281	)	$	(331,596	)	$	(331,596	)
Time deposits		Level 2		(215,125	)		(214,408	)		(128,403	)		(128,108	)
FRB and FHLB advances		Level 2		(49,000	)		(49,000	)		(29,000	)		(29,000	)
Subordinated debentures		Level 3		(23,108	)		(19,383	)		(24,595	)		(20,421	)
Accrued interest payable		Level 1		(1,337	)		(1,337	)		(521	)		(521	)