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Fair Values of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

 

 

 

Fair Value Measurement Using

 

 

 

Quoted Prices in
Active markets for
Identical Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable Inputs
(Level 3)

 

June 30, 2022

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

U.S Government entities

 

$

 

 

$

2,481

 

 

$

 

Municipal- Taxable

 

 

 

 

 

12,310

 

 

 

 

Municipal- Tax exempt

 

 

 

 

 

1,320

 

 

 

 

Residential MB, GSE

 

 

 

 

 

8,787

 

 

 

 

Commercial MBS

 

 

 

 

 

1,898

 

 

 

 

SBA guaranteed debenture

 

 

 

 

 

802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total available for sale securities

 

$

 

 

$

27,598

 

 

$

 

Equity Securities

 

$

 

 

$

 

 

$

1,005

 

 

 

 

Fair Value Measurement Using

 

 

 

Quoted Prices in
Active markets for
Identical Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

U.S Government entities

 

$

 

 

$

2,957

 

 

$

 

Municipal- Taxable

 

 

 

 

 

14,157

 

 

 

 

Municipal- Tax exempt

 

 

 

 

 

1,399

 

 

 

 

Residential MB, GSE

 

 

 

 

 

1,669

 

 

 

 

SBA guaranteed debenture

 

 

 

 

 

1,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total available for sale securities

 

$

 

 

$

21,313

 

 

$

 

Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Unobservable Inputs The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2022:

 

 

 

Equity Securities

 

 

 

2022

 

 

 

 

 

Beginning Balance of recurring Level 3 assets

 

$

 

Purchase

 

 

1,000

 

Unrealized gain

 

 

5

 

Ending Balance of recurring Level 3 assets

 

$

1,005

 

Financial Assets and Liabilities Measured at Fair Value on Non Recurring Basis Assets measured at fair value on a nonrecurring basis are included in the table below as of June 30, 2022 and December 31, 2021 (amounts in thousands):

 

 

 

Fair Value Measurements
Using Significant
Unobservable Inputs
(Level 3)

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Impaired loans:

 

 

 

 

 

 

RE loans:

 

 

 

 

 

 

One-to four family

 

$

12

 

 

$

14

 

Commercial

 

$

 

 

$

90

 

 

 

 

 

 

 

 

Foreclosed real estate:

 

 

 

 

 

 

One-to four family

 

$

89

 

 

$

74

 

Commercial

 

$

 

 

$

326

 

Estimated Fair Value of Financial Instruments

The carrying amounts and estimated fair values of the Company’s on-balance sheet financial instruments at June 30, 2022 and December 31, 2021 are summarized below:

 

 

 

 

 

 

Fair Value Measurements at
June 30, 2022 Using:

 

 

 

Carrying Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

24,784

 

 

$

24,784

 

 

$

 

 

$

 

 

$

24,784

 

Securities available for sale

 

 

27,598

 

 

 

 

 

 

27,598

 

 

 

 

 

 

27,598

 

Loans held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan, net

 

 

307,765

 

 

 

 

 

 

 

 

 

298,694

 

 

 

298,694

 

Accrued interest receivable

 

 

1,013

 

 

 

 

 

 

180

 

 

 

833

 

 

 

1,013

 

Restricted equity securities

 

 

176

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

280,229

 

 

$

204,578

 

 

$

94,266

 

 

$

 

 

$

298,844

 

Federal Home Loan Bank advances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued interest payable

 

 

23

 

 

 

19

 

 

 

4

 

 

 

 

 

 

23

 

 

 

 

 

 

 

NOTE 10 – FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)

 

 

 

 

 

 

Fair Value Measurements at
December 31, 2021 Using:

 

 

 

Carrying Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

61,938

 

 

$

61,938

 

 

$

 

 

$

 

 

$

61,938

 

Securities available for sale

 

 

21,313

 

 

 

 

 

 

21,313

 

 

 

 

 

 

21,313

 

Loans held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan, net

 

 

252,160

 

 

 

 

 

 

 

 

 

259,152

 

 

 

259,152

 

Accrued interest receivable

 

 

775

 

 

 

 

 

 

162

 

 

 

613

 

 

 

775

 

Restricted equity securities

 

 

859

 

 

 

 

 

 

 

 

 

 

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

232,021

 

 

$

156,921

 

 

$

80,281

 

 

$

 

 

$

237,202

 

Federal Home Loan Bank advances

 

 

18,500

 

 

 

 

 

 

18,322

 

 

 

 

 

 

18,322

 

Accrued interest payable

 

 

60

 

 

 

3

 

 

 

57

 

 

 

 

 

 

60