Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021 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)
March 31, 2022
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	40,696	$	—	$	40,696	$	—
Residential collateralized mortgage obligations	$	120,486	$	—	$	120,486	$	—
Other investments:
Mutual fund - CRA qualified	$	3,545	$	3,545	$	—	$	—
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	$	—	$	—

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 March 31, 2022 and December 31, 2021:

	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)
March 31, 2022
Impaired loans	$	804	$	—	$	—	$	804
December 31, 2021
Impaired loans	$	814	$	—	$	—	$	814

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:

	Three Months Ended March 31,
($ in thousands)	2022		2021
Impaired loans	$	7	$	4

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 March 31, 2022 and December 31, 2021:

($ in thousands)	Fair Value Measurements (Level 3)		Valuation Techniques	Unobservable Inputs	Range of Inputs	Weighted- Average of Inputs (1)
March 31, 2022
Impaired loans:
SBA loans—real estate	$	404	Market approach	Market data comparison	2% to 9%	5.1%
SBA loans—real estate	$	400	Income approach - income capitalization	Capitalization rate	12.0%	12.0%
December 31, 2021
Impaired loans:
SBA loans—non-real estate	$	419	Market approach	Market data comparison	2% to 17%	8.7%
SBA loans—non-real estate	$	395	Income approach - income capitalization	Capitalization rate	12.0%	12.0%

(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of March 31, 2022 and December 31, 2021.

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 March 31, 2022 and December 31, 2021 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets:

	March 31, 2022
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Value
Financial Assets:
Cash and cash equivalents	$	129,976	$	129,976	$	—	$	—	$	129,976
Loans held for sale	$	86,243	$	—	$	95,850	$	—	$	95,850
Loans receivable, net	$	1,411,738	$	—	$	—	$	1,368,115	$	1,368,115
Accrued interest receivable, net	$	4,893	$	7	$	392	$	4,494	$	4,893
Other investments:
FHLB and PCBB stock	$	7,196	N/A		N/A		N/A		N/A
Time deposits placed	$	95	$	—	$	95	$	—	$	95
Servicing assets	$	12,341	$	—	$	—	$	15,161	$	15,161
Financial Liabilities:
Deposit	$	1,672,003	$	—	$	1,669,804	$	—	$	1,669,804
FHLB Advances	$	—	$	—	—		$	—	$	—
Accrued interest payable	$	548	$	—	$	548	$	—	$	548

	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