Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020 are summarized below:

	Fair Value Measure on a Recurring Basis
($ in thousands)	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2021
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	37,412	$	—	$	37,412	$	—
Residential collateralized mortgage obligations	$	113,032	$	—	$	113,032	$	—
Other investments:
Mutual fund - CRA qualified	$	3,708	$	3,708	$	—	$	—
December 31, 2020
U.S. Government sponsored agency securities	$	1,005	$	—	$	1,005	$	—
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	19,704	$	—	$	19,704	$	—
Residential collateralized mortgage obligations	$	71,082	$	—	$	71,082	$	—
Other investments:
Mutual fund - CRA qualified	$	3,773	$	3,773	$	—	$	—

Summary of Fair Value Hierarchy and Fair Value of Assets that Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis

The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of December 31, 2021 and 2020:

	Fair Value Measure on a Nonrecurring Basis
($ in thousands)	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2021
Impaired loans	$	814	$	—	$	—	$	814
December 31, 2020
Impaired loans	$	87	$	—	$	—	$	87

Summary of Increase (Decrease) In Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment

The following table presents the increase (decrease) in value of certain assets held at the end of the respective reporting periods presented for which a nonrecurring fair value adjustment was recognized during the period presented:

	December 31,
($ in thousands)	2021		2020		2019
Impaired loans	$	105	$	(84)	$	13

Summary of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements

The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of December 31, 2021 and 2020:

($ in thousands)	Fair Value Measurements (Level 3)		Valuation Techniques	Unobservable Inputs	Range of Inputs	Weighted- Average of Inputs (1)
December 31, 2021
Impaired loans:
SBA loans—real estate	$	419	Market approach	Market data comparison	2% to 17%	8.7%
SBA loans—real estate	$	395	Income approach - income capitalization	Capitalization rate	12.0%	12.0%
December 31, 2020
Impaired loans:
SBA loans—non-real estate	$	25	Market approach	Market data comparison	(3.5)% to 7.1%	2.9%

(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of December 31, 2021 and 2020.

(2)Applying fair value adjustments on the impaired loan through the full specific reserve allowance of the loan carrying value resulted in a zero fair value balance as of December 31, 2021 and 2020.

Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value

Financial Instruments: The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of December 31, 2021 and 2020 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets:

	December 31, 2021
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Value
Financial Assets:
Cash and cash equivalents	$	115,459	$	115,459	$	—	$	—	$	115,459
Loans held for sale	$	89,428	$	—	$	99,301	$	—	$	99,301
Loans receivable, net	$	1,297,896	$	—	$	—	$	1,291,926	$	1,291,926
Accrued interest receivable, net	$	4,579	$	—	$	348	$	4,231	$	4,579
Other investments:
FHLB and PCBB stock	$	7,196	N/A		N/A		N/A		N/A
Time deposits placed	$	95	$	—	$	95	$	—	$	95
Servicing assets	12,720						15,505		$	15,505
Financial Liabilities:
Deposit	$	1,534,066	$	—	$	1,534,066	$	—	$	1,534,066
FHLB Advances	$	—	$	—	$	—	$	—	$	—
Accrued interest payable	$	558	$	—	$	558	$	—	$	558

	December 31, 2020
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Value
Financial Assets:
Cash and cash equivalents	$	106,310	$	106,310	$	—	$	—	$	106,310
Loans held for sale	$	26,659	$	—	$	26,659	$	—	$	26,659
Loans receivable, net	$	1,084,384	$	—	$	—	$	1,109,217	$	1,109,217
Accrued interest receivable, net	$	3,985	$	7	$	249	$	3,729	$	3,985
Other investments:
FHLB and PCBB stock	$	6,233	N/A		N/A		N/A		N/A
Time deposits placed	$	95	$	—	$	95	$	—	$	95
Servicing assets	$	7,360	$	—	$	—	$	9,106	$	9,106
Financial Liabilities:
Deposit	$	1,200,090	$	—	$	1,200,789	$	—	$	1,200,789
FHLB Advances	$	5,000	$	—	$	5,000	$	—	$	5,000
Accrued interest payable	$	1,021	$	—	$	1,021	$	—	$	1,021