Fair Value Measurements and Disclosure (Tables)

6 Months Ended

Jun. 30, 2023

Summary Of Financial Assets Measured At Fair Value On Recurring Basis

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2023 were as follows:


	(Level 1) Quoted Price in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total Fair Value June 30, 2023

Description			(In thousands)
Mortgage-backed securities -U.S. government sponsored enterprise (GSEs)	$	—	$	35,539	$	—	$	35,539
U.S. government agency securities		—		5,181		—		5,181
Obligations of state and political subdivisions		—		40,538		—		40,538
Small Business Association (SBA) securities		—		3,363		—		3,363
Subordinated debentures		—		450		—		450
SBIC securities		—		—		2,101		2,101

Securities available-for-sale at fair value	$	—	$	85,071	$	2,101	$	87,172

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy, used at December 31, 2022 were as follows:


	(Level 1) Quoted Price in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total Fair Value December 31, 2022

Description			(In thousands)
Mortgage-backed securities -U.S. government sponsored enterprise (GSEs)	$	—	$	34,915	$	—	$	34,915
U.S. government agency securities				5,085		—		5,085
Obligations of state and political subdivisions		—		41,341		—		41,341
SBIC securities		—		—		2,061		2,061

Securities available-for-sale at fair value	$	—	$	81,341	$	2,061	$	83,402

Summary Of Financial Assets Measured At Fair Value On NonRecurring Basis

For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2023, were as follows.


Description	(Level 1) Quoted Price in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total Fair Value June 30, 2023

			(In thousands)
Other real estate owned	$	—	$	—	$	33	$	33
Collateral dependent loan		—		—		4,485		4,485

	$	—	$	—	$	4,518	$	4,518

The following table presents quantitative information using Level 3 fair value measurements at June 30, 2023.


Description	June 30, 2023		Valuation Technique			Unobservable Input		Range (Weighted Average)

			(Dollars in thousands)
							Discount		0.0	%
Other real estate owned 1	$	33		Collateral	2		adjustment		(0.0	%)
							Discount		0.0	%
Collateral dependent loan	$	4,485		Collateral	3		adjustment		(0.0	%)

Other real estate owned was written down to the estimated net realizable value.

Fair value is generally determined through independent appraisal of the underlying collateral, primarily using comparable sales.

Value based on third party offer to purchase note from the Bank.

Summary Of Quantitative Information With Regards To Level 3 Fair Value Measurements

For

assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2022, were as follows:


Description	(Level 1) Quoted Price in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs		Total Fair Value December 31, 2022

			(In thousands)
Impaired loans	$	—	$	—	$	30	$	30

	$	—	$	—	$	30	$	30

The following table presents quantitative information using Level 3 fair value measurements at December 31, 2022.

Fair Value

Range

December 31,

Valuation

Unobservable

(Weighted

Description

2022

Technique

Input

Average)

(Dollars in thousands)

Discount

6.0

Impaired loans

Collateral

adjustment

(6.0

Fair value is generally determined through independent appraisal of the underlying collateral, primarily using comparable sales.

Summary Of Carrying Amounts And Estimated Fair Value Of Financial Instruments

The carrying amounts and estimated fair value of financial instruments at June 30, 2023 are as follows.


	June 30, 2023
	Carrying		Estimated
	Amount		Fair Value		Level 1		Level 2		Level 3
					(In thousands)
Financial Assets:
Cash and cash equivalents	$	143,001	$	143,001	$	143,001	$	—	$	—
Securities available-for-sale at fair value		87,172		87,172		—		85,071		2,101
Securities held-to-maturity		197		196		—		196		—
Loans receivable, net		1,481,721		1,483,203		—		—		1,483,203
Restricted investments in bank stock		1,385		1,385		—		1,385		—
Accrued interest receivable		5,575		5,575		—		5,575		—
Financial Liabilities:
Deposits	$	1,572,898	$	1,469,087	$	—	$	1,469,087	$	—
Accrued interest payable		6,174		6,174		—		6,174		—

The carrying amounts and estimated fair value of financial instruments at December 31, 2022 are as follows:


	December 31, 2022
	Carrying		Estimated
	Amount		Fair Value		Level 1		Level 2		Level 3
					(In thousands)
Financial assets:
Cash and cash equivalents	$	53,351	$	53,351	$	53,351	$	—	$	—
Securities AFS		83,402		83,402		—		81,341		2,061
Securities HTM		201		200		—		200		—
Loans receivable, net		1,353,907		1,347,137		—		—		1,347,137
Restricted bank stock		1,742		1,742		—		1,742		—
Accrued interest receivable		4,756		4,756		—		4,756		—
Financial Liabilities
Deposits		1,347,730		1,225,087				1,225,087		—
Borrowings		10,000		10,000				10,000
Accrued interest payable		1,027		1,027		—		1,027		—