XML 45 R34.htm IDEA: XBRL DOCUMENT

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 and December 31, 2023 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)
June 30, 2024
Assets:
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	40,196	$	—	$	40,196	$	—
Residential collateralized mortgage obligations	153,206		—		153,206		—
Municipal securities - tax exempt	5,803		—		5,803		—
Other investments:
Mutual fund - CRA qualified	3,462		3,462		—		—
Liabilities:
Derivative financial instruments	$	254	$	—	$	254	$	—
December 31, 2023
Assets:
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	43,877	$	—	$	43,877	$	—
Residential collateralized mortgage obligations	144,459		—		144,459		—
Municipal securities - tax exempt	5,914		—		5,914		—
Other investments:
Mutual fund - CRA qualified	3,463		3,463		—		—

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 June 30, 2024 and December 31, 2023:



	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)
June 30, 2024
Collateral-dependent loans:

SBA—real estate	$	1,434	$	—	$	—	$	1,434


OREO	1,237		—		—		1,237
Total	$	2,671	$	—	$	—	$	2,671
December 31, 2023
Collateral-dependent loans:
SBA—real estate	$	1,432	$	—	$	—	$	1,432
Total	$	1,432	$	—	$	—	$	1,432
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 June 30,				Six Months Ended June 30,
($ in thousands)	2024		2023		2024		2023
Collateral-dependent loans:

SBA—real estate	$	—	$	(1)	$	—	$	1


Total	$	—	$	(1)	$	—	$	1

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 June 30, 2024 and December 31, 2023:

($ in thousands)

Fair Value
Measurements
(Level 3)

Valuation
Techniques

Unobservable
Inputs

Range of
Inputs

Weighted-

Average of

Inputs(1)

June 30, 2024

Collateral-dependent loans:

SBA—real estate

1,434

Income approach - income capitalization

Capitalization rate

8.0% to 11.8%

10.4%

OREO

1,237

Sales comparison approach

Market data comparison

(3.7)% to 2.2%

(0.5)%

December 31, 2023

Collateral-dependent loans:

SBA—real estate

1,432

Income approach - income capitalization

Capitalization rate

9.3% to 11.0%

9.9%

(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of June 30, 2024 and December 31, 2023.

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 June 30, 2024 and December 31, 2023 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets:



	June 30, 2024
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	127,676	$	127,676	$	—	$	—	$	127,676
Loans held for sale	6,485		—		7,034		—		7,034
Loans receivable, net	1,847,346		—		—		1,907,170		1,907,170
Accrued interest receivable, net	8,555		82		1,004		7,469		8,555
Other investments:
FHLB and PCBB stock	12,805		N/A		N/A		N/A		N/A
Time deposits placed	100		—		100		—		100
Servicing assets	11,043		—		—		16,813		16,813
Financial liabilities:
Deposits	1,940,821		—		1,940,821		—		1,940,821
FHLB advances	115,000		—		114,485		—		114,485
Accrued interest payable	15,504		—		15,504		—		15,504



	December 31, 2023
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	91,216	$	91,216	$	—	$	—	$	91,216
Loans receivable, net	1,743,852		—		—		1,793,258		1,793,258
Accrued interest receivable, net	8,259		69		859		7,331		8,259
Other investments:
FHLB and PCBB stock	12,718		N/A		N/A		N/A		N/A
Time deposits placed	95		—		95		—		95
Servicing assets	11,741		—		—		17,218		17,218
Financial liabilities:
Deposits	1,807,558		—		1,808,444		—		1,808,444
FHLB advances	105,000		—		104,231		—		104,231
Accrued interest payable	12,628		—		12,628		—		12,628