Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Schedule 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, 2023 and December 31, 2022 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, 2023
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	48,715	$	—	$	48,715	$	—
Residential collateralized mortgage obligations	158,189		—		158,189		—
Municipal securities-tax exempt	5,863		—		5,863		—
Other investments:
Mutual fund - CRA qualified	3,404		3,404		—		—
December 31, 2022
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	49,764	$	—	$	49,764	$	—
Residential collateralized mortgage obligations	160,045		—		160,045		—
Other investments:
Mutual fund - CRA qualified	3,330		3,330		—		—

Schedule 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, 2023 and December 31, 2022:

	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, 2023
Individually evaluated loans:
SBA—real estate	$	772	$	—	$	—	$	772
C&I	11		—		—		11
Home mortgage	1,133		—		—		1,133
Total	$	1,916	$	—	$	—	$	1,916
December 31, 2022
Impaired loans:
SBA—real estate	$	423	$	—	$	—	$	423
Total	$	423	$	—	$	—	$	423
Total

Schedule 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)	2023		2022
Individually evaluated loans:
SBA—real estate	$	2	$	7
C&I	11		—
Total	$	13	$	7

Schedule 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, 2023 and December 31, 2022:

($ in thousands)	Fair Value Measurements (Level 3)		Valuation Techniques	Unobservable Inputs	Range of Inputs	Weighted- Average of Inputs (1)
March 31, 2023
Individually evaluated loans:
SBA—real estate	$	772	Income approach - income capitalization	Capitalization rate	8.0% to 11.5%	9.9%
C&I	11		Income approach - discounted cash flow	Discount rate	8.0%	8.0%
Home mortgage	1,133		Sales comparison approach	Market data comparison	3.1% to 13.1%	7.0%
December 31, 2022
Impaired loans:
SBA—real estate	$	423	Income approach - income capitalization	Capitalization rate	11.5%	11.5%

(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of March 31, 2023 and December 31, 2022.

Schedule 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, 2023 and December 31, 2022 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets:

	March 31, 2023
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	181,509	$	181,509	$	—	$	—	$	181,509
Loans held for sale	7,534		—		8,046		—		8,046
Loans receivable, net	1,671,671		—		—		1,653,450		1,653,450
Accrued interest receivable, net	7,302		139		723		6,440		7,302
Other investments:
FHLB and PCBB stock	8,673		N/A		N/A		N/A		N/A
Time deposits placed	95		—		95		—		95
Servicing assets	12,898		—		—		18,010		18,010
Financial liabilities:
Deposits	1,904,818		—		1,902,346		—		1,902,346
Accrued interest payable	5,751		—		5,751		—		5,751

	December 31, 2022
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	82,972	$	82,972	$	—	$	—	$	82,972
Loans held for sale	44,335		—		47,217		—		47,217
Loans receivable, net	1,659,051		—		—		1,626,036		1,626,036
Accrued interest receivable, net	7,180		51		716		6,413		7,180
Other investments:
FHLB and PCBB stock	8,673		N/A		N/A		N/A		N/A
Time deposits placed	95		—		95		—		95
Servicing assets	12,759		—		—		16,845		16,845
Financial liabilities:
Deposits	1,885,771		—		1,880,508		—		1,880,508
Accrued interest payable	2,771		—		2,771		—		2,771