Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value

Schedule of assets carried at fair value on a recurring basis

The following tables detail the assets that are carried at fair value on a recurring basis as of the periods shown and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

			Quoted Prices in
			Active Markets		Significant		Significant
			for Identical		Observable		Unobservable
	Balance		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
	September 30, 2023
Assets:
U.S. Treasury securities	$	28,566	$	28,566	$	—	$	—
U.S. government agency mortgage-backed securities-residential		127,222		—		127,222		—
U.S. government agency securities		22,530		—		22,530		—
Municipal securities		2,799		—		2,684		115
Corporate Bonds		12,439		—		12,439		—
Other		696		—		696		—
Total available for sale securities		194,252		28,566		165,571		115
Loan level interest rate swaps		7,678		—		7,678		—
Total assets	$	201,930	$	28,566	$	173,249	$	115
Liabilities:
Loan level interest rate swaps	$	7,678	$	—	$	7,678	$	—
Total liabilities	$	7,678	$	—	$	7,678	$	—

	December 31, 2022
Assets:
U.S. Treasury securities	$	37,857	$	37,857	$	—	$	—
U.S. government agency mortgage-backed securities – residential		144,534		—		144,534		—
U.S. government agency securities		22,449		—		22,449		—
Municipal securities		4,786		—		4,656		130
Corporate Bonds		13,217		—		13,217		—
Other		816		—		816		—
Total available for sale securities		223,659		37,857		185,672		130
Loan level interest rate swaps		4,548		—		4,548		—
Total assets	$	228,207	$	37,857	$	190,220	$	130
Liabilities:
Loan level interest rate swaps	$	4,548	$	—	$	4,548	$	—
Total liabilities	$	4,548	$	—	$	4,548	$	—

Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis

The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of September 30, 2023 and December 31, 2022 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

			Quoted Prices in
			Active Markets		Significant		Significant
			for Identical		Observable		Unobservable
	Balance		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
	September 30, 2023
Individually analyzed loans, with specific reserves	$	977	$	—	$	—	$	977
Total	$	977	$	—	$	—	$	977

	December 31, 2022
Impaired loans, with specific reserves	$	319	$	—	$	—	$	319
Total	$	319	$	—	$	—	$	319

Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value		Valuation		Unobservable		Range
	Estimate		Techniques		Input		(Weighted Average)
	September 30, 2023
Individually analyzed loans, with specific reserves	$	977	Appraisal of collateral	(1)	Liquidation expenses	(3)	0% to 8%
					Appraisal adjustments	(2)	0% to 20%
	December 31, 2022
Impaired loans	$	319	Appraisal of collateral	(1)	Liquidation expenses	(3)	0% to 8%
					Appraisal adjustments	(2)	0% to 20%

(1) Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraised value.

(3) Estimated costs to sell.

Schedule of carrying value and fair values of the financial instruments

As of the following dates, the carrying value and fair values of the Company’s financial instruments were:

	September 30,				December 31,
	2023				2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents (Level 1)	$	26,760	$	26,760	$	31,384	$	31,384
Available for sale securities (Level 1)		28,566		28,566		37,857		37,857
Available for sale securities (Level 2)		165,571		165,571		185,672		185,672
Available for sale securities (Level 3)		115		115		130		130
Loan level interest rate swaps (Level 2)		7,678		7,678		4,548		4,548
FHLB stock (Level 2)		4,697		4,697		3,258		3,258
Loans, net (Level 3)		1,003,766		968,289		994,368		953,432
Accrued interest receivable (Level 2)		3,463		3,463		4,255		4,255
Mortgage servicing rights (Level 3)		2,081		4,786		2,409		5,211
Financial Liabilities:
Deposits (Level 2)		1,082,300		968,426		1,129,933		1,001,455
Mortgagors' escrow accounts (Level 2)		4,797		4,797		9,732		9,723
FHLB advances (Level 2)		87,683		86,128		57,723		57,739
Subordinated debt (Level 2)		5,155		5,155		5,155		5,155
Loan level interest rate swaps (Level 2)		7,678		7,678		4,548		4,548
Accrued interest payable (Level 2)		958		958		774		774