Fair Value (Tables)

6 Months Ended

Jun. 30, 2024

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)
	June 30, 2024
Assets:
U.S. Treasury securities	$	14,304	$	14,304	$	—	$	—
U.S. government agency mortgage-backed securities-residential		120,672		—		120,672		—
U.S. government agency securities		23,277		—		23,277		—
Municipal securities		2,462		—		2,347		115
Corporate bonds		12,861		—		12,861		—
Other		676		—		676		—
Total available for sale securities		174,252		14,304		159,833		115
Loan level interest rate swaps		6,438		—		6,438		—
Total assets	$	180,690	$	14,304	$	166,271	$	115
Liabilities:
Loan level interest rate swaps	$	6,438	$	—	$	6,438	$	—
Total liabilities	$	6,438	$	—	$	6,438	$	—

	December 31, 2023
Assets:
U.S. Treasury securities	$	24,006	$	24,006	$	—	$	—
U.S. government agency mortgage-backed securities – residential		128,580		—		128,580		—
U.S. government agency securities		23,158		—		23,158		—
Municipal securities		2,903		—		2,788		115
Corporate bonds		12,640		—		12,640		—
Other		698		—		698		—
Total available for sale securities		191,985		24,006		167,864		115
Loan level interest rate swaps		6,278		—		6,278		—
Total assets	$	198,263	$	24,006	$	174,142	$	115
Liabilities:
Loan level interest rate swaps	$	6,278	$	—	$	6,278	$	—
Total liabilities	$	6,278	$	—	$	6,278	$	—

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  June 30, 2024 and December 31, 2023, 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)
	June 30, 2024
Individually analyzed loans, with specific reserves	$	368	$	—	$	—	$	368
Total	$	368	$	—	$	—	$	368

	December 31, 2023
Individually analyzed loans, with specific reserves	$	758	$	—	$	—	$	758
Other real estate owned		25		—		—		25
Total	$	783	$	—	$	—	$	783

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)
	June 30, 2024
Individually analyzed loans, with specific reserves	$	368	Appraisal of collateral	(1)	Liquidation expenses	(3)	0% to 8%
					Appraisal adjustments	(2)	0% to 20%
	December 31, 2023
Individually analyzed loans, with specific reserves	$	758	Appraisal of collateral	(1)	Liquidation expenses	(3)	0% to 8%
					Appraisal adjustments	(2)	0% to 20%
Other real estate owned		25	Appraisal of collateral	(1)	Liquidation expenses	(3)	0% to 6%
					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:

	June 30,				December 31,
	2024				2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents (Level 1)	$	34,438	$	34,438	$	22,129	$	22,129
Available for sale securities (Level 1)		14,304		14,304		24,006		24,006
Available for sale securities (Level 2)		159,833		159,833		167,864		167,864
Available for sale securities (Level 3)		115		115		115		115
Loan level interest rate swaps (Level 2)		6,438		6,438		6,278		6,278
FHLB stock (Level 2)		4,410		4,410		6,514		6,514
Loans, net (Level 3)		982,392		955,608		1,008,851		979,037
Accrued interest receivable (Level 2)		4,501		4,501		4,616		4,616
Mortgage servicing rights (Level 3)		1,782		4,398		1,977		4,720
Financial Liabilities:
Deposits (Level 2)		1,031,949		960,780		1,030,503		948,140
Mortgagors' escrow accounts (Level 2)		12,028		12,028		9,274		9,274
FHLB advances (Level 2)		79,773		78,680		128,064		127,592
Subordinated debt (Level 2)		5,155		5,155		5,155		5,155
Loan level interest rate swaps (Level 2)		6,438		6,438		6,278		6,278
Accrued interest payable (Level 2)		1,351		1,351		1,488		1,488