FAIR VALUE INFORMATION

6 Months Ended

Jun. 30, 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):

June 30, 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	$	—	$	29,898	$	—	$	29,898
U.S. Treasuries		—		5,736		—		5,736
U.S. Government Agencies		—		233		—		233
Municipal obligations		—		20,534		—		19,534
Corporate debt		—		856		—		856
Total available-for-sale:	$	—	$	56,257	$	—	$	56,257
Nonrecurring basis:
Collateral Dependent Loans	$	—	$	—	$	2,423	$	2,423

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 June 30, 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):

June 30, 2024	Fair Value		Valuation Methodologies	Valuation Model	Unobservable Input Valuation
Collateral Dependent Loans Commercial		2,423	Appraisal/Borrower Financial Statements	Receivables Discount/Liquidation Discount	0–95	%
Total collateral dependent loans	$	2,423
December 31, 2023	Fair Value		Valuation Methodologies	Valuation Model	Unobservable Input Valuation
Collateral Dependent Loans Commercial		1,071	Appraisal/Borrower Financial Statements	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):

		June 30,						December 31,
		2024						2023
Financial assets	Fair Value Hierarchy	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Cash and due from banks	Level 1	$	52,515		$	52,515		$	27,182		$	27,182
Federal funds sold	Level 2		26,175			26,175			1,715			1,715
Securities available-for-sale	Level 2		56,257			56,257			56,690			56,690
Securities held-to-maturity	Level 2		5,647			5,249			5,684			5,107
Loans held for investment	Level 3		724,694			699,088			451,167			437,878
Other investments	Level 2		6,185			6,185			4,063			4,063
Accrued interest receivable	Level 1		2,787			2,787			1,597			1,597
Financial liabilities
Nonmaturity Deposits	Level 1	$	(555,280	)	$	(555,280	)	$	(331,596	)	$	(331,596	)
Time deposits	Level 2		(214,415	)		(213,739	)		(128,403	)		(128,108	)
FRB and FHLB advances	Level 2		(27,000	)		(27,000	)		(29,000	)		(29,000	)
Subordinated debentures	Level 3		(23,122	)		(19,383	)		(24,595	)		(20,421	)
Federal funds purchased	Level 2		(1,663	)		(1,663	)		—			—
Accrued interest payable	Level 1		(1,615	)		(1,615	)		(521	)		(521	)