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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated:

						Fair Value Measurement Level
($ in thousands)						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
June 30, 2026
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities						$	—					$	156,197					$	—					$	156,197
Residential collateralized mortgage obligations						—						17,311						—						17,311
SBA loan pool securities						—						3,526						—						3,526
Municipal bonds						—						2,474						—						2,474
Corporate bonds						—						4,810						—						4,810
Total securities available-for-sale						—						184,318						—						184,318
Total assets measured at fair value on a recurring basis						$	—					$	184,318					$	—					$	184,318
Total liabilities measured at fair value on a recurring basis						$	—					$	—					$	—					$	—
December 31, 2025
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities						$	—					$	129,822					$	—					$	129,822
Residential collateralized mortgage obligations						—						18,762						—						18,762
SBA loan pool securities						—						4,193						—						4,193
Municipal bonds						—						2,484						—						2,484
Corporate bonds						—						4,748						—						4,748
Total securities available-for-sale						—						160,009						—						160,009
Total assets measured at fair value on a recurring basis						$	—					$	160,009					$	—					$	160,009
Total liabilities measured at fair value on a recurring basis						$	—					$	—					$	—					$	—

Schedule of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following table presents the Company’s assets and liabilities measured at fair value on a non-recurring basis as of the dates indicated:

						Fair Value Measurement Level
($ in thousands)						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
June 30, 2026
Loans individually evaluated:
Business property						$	—					$	—					$	512					$	512
Total loans individually evaluated						—						—						512						512
Total assets measured at fair value on a non-recurring basis						$	—					$	—					$	512					$	512
Total liabilities measured at fair value on a non-recurring basis						$	—					$	—					$	—					$	—
December 31, 2025
Loans individually evaluated:
Business property						$	—					$	—					$	507					$	507
Total loans individually evaluated						—						—						507						507
Total assets measured at fair value on a non-recurring basis						$	—					$	—					$	507					$	507
Total liabilities measured at fair value on a non-recurring basis						$	—					$	—					$	—					$	—

The following table presents gains (losses), including charge-offs, recoveries, and specific reserves recorded, for assets measured at fair value for the periods indicated:

						Three Months Ended June 30,												Six Months Ended June 30,
($ in thousands)						2026						2025						2026						2025
Loans individually evaluated:
Business property						$	16					$	(126)					$	31					$	(126)
Commercial and industrial						—						(37)						—						(37)
Net gains recognized						$	16					$	(163)					$	31					$	(163)

Schedule of Quantitative Information About Level 3 Fair Value Measurements

The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a non-recurring basis as of the dates indicated:

($ in thousands)

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Weighted-Average

June 30, 2026

Loans individually evaluated:

Business property

$

512

Fair value of collateral

Selling cost

6%

December 31, 2025

Loans individually evaluated:

Business property

$

507

Fair value of collateral

Selling Cost

6%

The following table presents the estimated purchase price based on the formula set forth in the Option Agreement as if the Company met all Threshold Conditions as of June 30, 2026:

						Dividend Rate at the Reset Date Immediately Preceding the Purchase Date
($ in thousands)						0.50%						1.25%						2.00%
Purchase price						$	4,653					$	11,632					$	18,611
Discount						64,488						57,509						50,530

Schedule of Carrying Value and Estimated Fair Values of Financial Assets and Liabilities

The following table presents the carrying value and estimated fair values of financial assets and liabilities as of the dates indicated:

						Carrying Value						Fair Value						Fair Value Measurements
($ in thousands)																		Level 1						Level 2						Level 3
June 30, 2026
Financial assets:
Interest-bearing deposits in other financial institutions						$	234,301					$	234,301					$	234,301					$	—					$	—
Securities available-for-sale						184,318						184,318						—						184,318						—
Loans held-for-sale						2,937						3,181						—						3,181						—
Net loans held-for-investment						2,897,281						2,895,737						—						—						2,895,737
Federal Home Loan Bank (“FHLB”) and other restricted stock						15,170						N/A						N/A						N/A						N/A
Accrued interest receivable						10,574						10,574						140						705						9,729
Financial liabilities:
Deposits						$	2,922,659					$	2,929,492					$	—					$	—					$	2,929,492
Other short-term borrowings						10,000						10,000						—						10,000						—
FHLB advances						80,000						80,155						—						80,155						—
Accrued interest payable						21,312						21,312						—						10						21,302
December 31, 2025
Financial assets:
Interest-bearing deposits in other financial institutions						$	181,823					$	181,823					$	181,823					$	—					$	—
Securities available-for-sale						160,009						160,009						—						160,009						—
Loans held-for-sale						12,077						12,815						—						12,815						—
Net loans held-for-investment						2,787,019						2,783,879						—						—						2,783,879
FHLB and other restricted stock						14,978						N/A						N/A						N/A						N/A
Accrued interest receivable						10,669						10,669						126						599						9,944
Financial liabilities:
Deposits						$	2,795,412					$	2,805,598					$	—					$	—					$	2,805,598
FHLB advances						34,000						34,000						—						34,000						—
Accrued interest payable						25,228						25,228						—						4						25,224

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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-Topic 820
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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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-Section 50
-Paragraph 2
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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482881/825-10-55-10

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

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