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Fair Value Measures
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measures Fair Value Measures
Fair value is an “exit” price, representing the amount that would be received when selling an asset, or paid when transferring a liability, in an orderly transaction between market participants. Fair value is determined based on assumptions that market participants would use in pricing an asset or liability.

Valuation Hierarchy: U.S. generally accepted accounting principles establishes a three-tier fair value hierarchy, which prioritizes the significant inputs used in measuring fair value as follows:

•Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
•Level 3 – Inputs to the valuation methodology are significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants use in pricing an asset or liability.

A financial instrument’s categorization within this valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The following tables present assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, and that were included in the Company’s Condensed Consolidated Statements of Condition at those dates:

March 31, 2025

Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Total Fair Value
Assets:
Mortgage-related Debt Securities Available for Sale:
GSE CMOs
$— $8,744 $— $8,744 
GSE certificates— 1,110 — 1,110 
Private label collateralized mortgage obligations— 131 31 162 
Total mortgage-related debt securities$— $9,985 $31 $10,016 
Other Debt Securities Available for Sale:
GSE debentures$— $1,241 $— $1,241 
U. S. Treasury obligations1,008 — — 1,008 
Corporate bonds— 249 — 249 
Asset-backed securities— 229 — 229 
Municipal bonds, foreign notes, and capital trust
— 83 — 83 
Total other debt securities$1,008 $1,802 $— $2,810 
Total debt securities available for sale$1,008 $11,787 $31 $12,826 
Equity securities:
Mutual funds and common stock$— $14 $— $14 
Total equity securities$— $14 $— $14 
Total securities$1,008 $11,801 $31 $12,840 
Loans held for sale
Multi-family
$— $328 $— $328 
Commercial real estate(2)
— 180 — 180 
Derivative assets
Interest rate swaps
— 15 — 15 
Rate lock commitments
— — 4 4 
Total assets at fair value$1,008 $12,324 $35 $13,367 
Derivative liabilities
Interest rate swaps
$— $23 $— $23 
Mortgage-backed securities forwards— 3 — 3 
Rate lock commitments
— — 3 3 
Total liabilities at fair value$— $26 $3 $29 
(1)The change in the fair value due to significant unobservable inputs was immaterial.
(2)Includes Acquisition, Development, and Construction loans.
December 31, 2024

Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)		Total Fair Value
Assets:
Mortgage-related Debt Securities Available for Sale:
GSE CMOs
$— $7,304 $— $7,304 
GSE certificates—1,106—1,106
Private label collateralized mortgage obligations—13033163
Total mortgage-related debt securities$— $8,540 $33 $8,573 
Other Debt Securities Available for Sale:
GSE debentures$— $1,203 $— $1,203 
Corporate bonds—308—308
Asset-backed securities—236—236
Municipal bonds, foreign notes, and capital trust
—82—82
Total other debt securities$— $1,829 $— $1,829 
Total debt securities available for sale$— $10,369 $33 $10,402 
Equity securities:
Mutual funds and common stock$— $14 $— $14 
Total equity securities$— $14 $— $14 
Total securities$— $10,383 $33 $10,416 
Loans held for sale
Multi-family
$— $382 $— $382 
Acquisition, development, and construction—182—182 
Derivative assets
Interest rate swaps
— 15 — 15 
Mortgage-backed securities forwards— 7 — 7 
Rate lock commitments
— — 3 3 
Mortgage servicing rights— — 26 26 
Total assets at fair value$— $10,969 $62 $11,031 
Derivative liabilities
Interest rate swaps and swaptions$— $30 $— $30 
Rate lock commitments
— — 3 3 
Mortgage-backed securities forwards— 2 — 2 
Total liabilities at fair value$— $32 $3 $35 


A description of the methods and significant assumptions utilized in estimating the fair values of securities are as follows:
Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and exchange-traded securities.
If quoted market prices are not available for a specific security, then fair values are estimated by using pricing models. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to observable market information, models incorporate transaction details such as maturity and cash flow assumptions. Securities valued in this manner would generally be classified within Level 2 of the valuation hierarchy, and primarily include such instruments as mortgage-related and corporate debt securities.
Assets Measured at Fair Value on a Non-Recurring Basis
The following tables present assets that were measured at fair value on a non-recurring basis as of March 31, 2025 and December 31, 2024:

Fair Value Measurements at March 31, 2025 Using

Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total Fair Value
Loans held for investment(1)
$— $— $3,166 $3,166 
Loans held for sale— 23 — 23 
Other assets(2)
— — 43 43 
Total$— $23 $3,209 $3,232 
(1)Represents the fair value of impaired loans, based primarily on the value of the collateral less costs to sell.
(2)Primarily comprised of equity securities without readily determinable fair values.


Fair Value Measurements at December 31, 2024 Using

Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total Fair Value
Loans held for investment(1)
$— $— $2,469 $2,469 
Loans held for sale— 335 — 335 
Other assets (2)
— — 52 52 
Total$— $335 $2,521 $2,856 
(1)Represents the fair value of impaired loans, based primarily on the value of the collateral less costs to sell.
(2)Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets and equity securities without readily determinable fair values. These equity securities are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.
The fair values of collateral-dependent impaired loans are determined using various valuation techniques, including consideration of appraised values and other pertinent real estate and market data.
Other Fair Value Disclosures
For the disclosure of fair value information about the Company’s on- and off-balance sheet financial instruments, when available, quoted market prices are used as the measure of fair value. In cases where quoted market prices are not available, fair values are based on present-value estimates or other valuation techniques. Such fair values are significantly affected by the assumptions used, the timing of future cash flows, and the discount rate.
Because assumptions are inherently subjective in nature, estimated fair values cannot be substantiated by comparison to independent market quotes. Furthermore, in many cases, the estimated fair values provided would not necessarily be realized in an immediate sale or settlement of such instruments.
The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Condensed Consolidated Statements of Condition at March 31, 2025 and December 31, 2024:

March 31, 2025
Fair Value Measurement Using

Carrying ValueEstimated Fair ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents$12,614 $12,614 $12,614 $— $— 
FHLB and FRB stock (1)
1,061 1,061 — 1,061 — 
Loans and leases held for investment, net(4)
65,424 60,840 — — 60,840 
Financial Liabilities:
Deposits$73,906 $73,923 $945 
(2)
$72,978 
(3)
$— 
Borrowed funds14,178 13,979 — 13,979 — 
(1)Carrying value and estimated fair value are at cost.
(2)Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.
(3)Certificates of deposit.
(4)Carrying value and estimated fair value include the impaired loans held for investment.

December 31, 2024
Fair Value Measurement Using

Carrying ValueEstimated Fair ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents$15,430 $15,430 $15,430 $— $— 
FHLB and FRB stock (1)
1,1461,146— 1,146— 
Loans and leases held for investment, net(4)
67,07161,831— — 61,831
Financial Liabilities:
Deposits$75,870 $75,894 $48,546 
(2)
$27,348 
(3)
$— 
Borrowed funds14,42614,217— 14,217— 
(1)Carrying value and estimated fair value are at cost.
(2)Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.
(3)Certificates of deposit.
(4)Carrying value and estimated fair value include the impaired loans held for investment.
The methods and significant assumptions used to estimate fair values for the Company’s financial instruments follow:
Cash and Cash Equivalents
Cash and cash equivalents include cash and due from banks and federal funds sold. The estimated fair values of cash and cash equivalents are assumed to equal their carrying values, as these financial instruments are either due on demand or have short-term maturities.
Securities
If quoted market prices are not available for a specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to observable market information, pricing models also incorporate transaction details such as maturities and cash flow assumptions.
Federal Home Loan Bank Stock
Ownership in equity securities of the FHLB is generally restricted and there is no established liquid market for their resale. The carrying amount approximates the fair value.
Loans and leases
The Company discloses the fair value of loans measured at amortized cost using an exit price notion. The Company determined the fair value on substantially all of its loans for disclosure purposes, on an individual loan basis. The discount rates reflect current market rates for loans with similar terms to borrowers having similar credit quality on an exit price basis. For those loans where a discounted cash flow technique was not considered reliable, the Company used a quoted market price for each individual loan.

Rate lock commitments
The significant unobservable input used in the fair value measurement of the rate lock commitments is the pull through rate. The pull through rate is a statistical analysis of our actual rate lock fallout history to determine the sensitivity of the residential mortgage loan pipeline compared to interest rate changes and other deterministic values. New market prices are applied based on updated loan characteristics and new fallout ratios (i.e. the inverse of the pull through rate) are applied accordingly. Significant increases (decreases) in the pull through rate in isolation result in a significantly higher (lower) fair value measurement.
Deposits
The fair values of deposit liabilities with no stated maturity (i.e., interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts) are equal to the carrying amounts payable on demand. The fair values of certificates of deposit represent contractual cash flows, discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. These estimated fair values do not include the intangible value of core deposit relationships, which comprise a portion of the Company’s deposit base.
Borrowed Funds
The estimated fair value of borrowed funds is based either on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities and structures.
Off-Balance Sheet Financial Instruments
The fair values of commitments to extend credit and unadvanced lines of credit are estimated based on an analysis of the interest rates and fees currently charged to enter into similar transactions, considering the remaining terms of the commitments and the creditworthiness of the potential borrowers. The estimated fair values of such off-balance sheet financial instruments were insignificant at March 31, 2025 and December 31, 2024.

Fair Value Option
We elected the fair value option for certain items as discussed throughout the Notes to the Condensed Consolidated Financial Statements to more closely align the accounting method with the underlying economic exposure.
The following table reflects the change in fair value included in earnings of financial instruments for which the fair value option has been elected:


Three Months Ended March 31,
2025
2024
Assets
Loans held for sale
Net gain on loan sales$7 $3 
The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding for assets and liabilities for which the fair value option has been elected:

March 31, 2025December 31, 2024

Unpaid Principal BalanceFair ValueFair Value Over / (Under) UPBUnpaid Principal BalanceFair ValueFair Value Over / (Under) UPB
Assets:
Non-accrual loans:
Loans held for sale$3 $3 $— $4 $4 $— 
Loans held-for-investment— — — — — — 
Total non-accrual loans$3 $3 $— $4 $4 $— 
Accrual loans:
Loans held for sale$498 $508 $10 $553 $560 $7 
Loans held-for-investment— — — 67 66 (1)
Total accrual loans$498 $508 $10 $620 $626 $6 
Total loans:
Loans held for sale$501 $511 $10 $557 $564 $7 
Loans held-for-investment— — — 67 — 66 (1)
Total loans$501 $511 $10 $624 $630 $6