Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025 and December 31, 2024 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, 2025
Assets:
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	36,398	$	—	$	36,398	$	—
Residential collateralized mortgage obligations	140,576		—		140,576		—
Municipal securities - tax exempt	5,506		—		5,506		—
Other investments:
Mutual fund - CRA qualified	3,612		3,612		—		—
Derivative financial instruments	124		—		124		—
Liabilities:
Derivative financial instruments	$	883	$	—	$	883	$	—

December 31, 2024
Assets:
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	37,076	$	—	$	37,076	$	—
Residential collateralized mortgage obligations	143,041		—		143,041		—
Municipal securities - tax exempt	5,792		—		5,792		—
Other investments:
Mutual fund - CRA qualified	3,532		3,532		—		—
Derivative financial instruments	368		—		368		—
Liabilities:
Derivative financial instruments	$	579	$	—	$	579	$	—

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, 2025 and December 31, 2024:



	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, 2025
Collateral-dependent loans:
Commercial real estate	$	222	$	—	$	—	$	222
SBA—real estate	1,393		—		—		1,393



Total	$	1,615	$	—	$	—	$	1,615

December 31, 2024
Collateral-dependent loans:
Commercial real estate	$	173	$	—	$	—	$	173
SBA—real estate	952		—		—		952


OREO	1237		—		—		1237
Total	$	2,362	$	—	$	—	$	2,362
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)	2025		2024
Collateral-dependent loans:
Commercial real estate	$	49	$	—
SBA—real estate	274		—


Total	$	323	$	—

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, 2025 and December 31, 2024:

($ in thousands)

Fair Value
Measurements
(Level 3)

Valuation
Techniques

Unobservable
Inputs

Range of
Inputs

Weighted-

Average of

Inputs(1)

March 31, 2025

Collateral-dependent loans:

Commercial real estate

222

Income approach - income capitalization

Capitalization rate

5.5% to 7.3%

6.0%

SBA—real estate

948

Income approach - income capitalization

Capitalization rate

5.5% to 9.0%

6.7%

SBA—real estate

278

Sales comparison approach

Market data comparison

0.0% to 35.0%

4.7%

SBA—real estate

167

Cost approach

Replacement cost estimates

1.23x for building / 0.0% to 36.0% for land

1.23x for building / 26.2% for land

December 31, 2024

Collateral-dependent loans:

Commercial real estate

173

Income approach - income capitalization

Capitalization rate

5.5% to 7.3%

6.0%

SBA—real estate

539

Income approach - income capitalization

Capitalization rate

5.5% to 7.3%

10.4%

SBA—real estate

413

Sales comparison

Market data / purchase price

n/a

OREO

1,237

Sales comparison approach

Market data comparison

(3.7)% to 2.2%

(0.5)%

(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of March 31, 2025 and December 31, 2024.

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, 2025 and December 31, 2024 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets:



	March 31, 2025
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	198,861	$	198,861	$	—	$	—	$	198,861
Loans held for sale	4,555		—		4,916		—		4,916
Loans receivable, net	2,018,517		—		—		2,083,302		2,083,302
Accrued interest receivable, net	9,871		471		814		8,586		9,871
Other investments:
FHLB and PCBB stock	12,805		N/A		N/A		N/A		N/A
Time deposits placed	100		—		100		—		100
Financial liabilities:
Deposits	2,189,871		—		2,191,005		—		2,191,005
FHLB advances	75,000		—		74,998		—		74,998
Accrued interest payable	14,994		—		14,994		—		14,994



	December 31, 2024
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	134,943	$	134,943	$	—	$	—	$	134,943
Loans receivable, net	1,932,056		—		—		1,986,813		1,986,813
Accrued interest receivable, net	9,188		181		888		8,119		9,188
Other investments:
FHLB and PCBB stock	12,805		N/A		N/A		N/A		N/A
Time deposits placed	100		—		100		—		100
Financial liabilities:
Deposits	2,027,285		—		2,026,092		—		2,026,092
FHLB advances	95,000		—		94,986		—		94,986
Accrued interest payable	16,067		—		16,067		—		16,067