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v3.23.1

FAIR VALUE ACCOUNTING (Tables) | 3 Months Ended
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Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Schedule of Assets Measured on Recurring Basis | The following tables present the financial instruments measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:
| Fair Value |  | Quoted Prices in Active Markets for Identical Instruments (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
March 31, 2023 |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |
U.S. government agency obligations | $ | 25,182 |  |  | $ | — |  |  | $ | 25,182 |  |  | $ | — |
Mortgage-backed securities | 78,959 |  |  | — |  |  | 78,959 |  |  | — |
Corporate debt securities | 42,215 |  |  | — |  |  | 42,215 |  |  | — |
Corporate asset-backed securities | 27,067 |  |  | — |  |  | 27,067 |  |  | — |
Total investment securities | 173,423 |  |  | — |  |  | 173,423 |  |  | — |
Equity Investments: |  |  |  |  |  |  |
Equity Investments | 380 |  |  | 380 |  |  | — |  |  | — |
Equity investments measured at NAV(1) | 1,771 |  |  | — |  |  | — |  |  | — |
Total equity investments | 2,151 |  |  | 380 |  |  | — |  |  | — |
Total | $ | 175,574 |  |  | $ | 380 |  |  | $ | 173,423 |  |  | $ | — |
December 31, 2022 |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |
U.S. government agency obligations | $ | 18,313 |  |  | $ | — |  |  | $ | 18,313 |  |  | $ | — |
Mortgage-backed securities | 78,610 |  |  | — |  |  | 78,610 |  |  | — |
Corporate debt securities | 40,251 |  |  | — |  |  | 40,251 |  |  | — |
Corporate asset backed securities | 28,817 |  |  | — |  |  | 28,817 |  |  | — |
Total investment securities | 165,991 |  |  | — |  |  | 165,991 |  |  | — |
Equity Investments: |  |  |  |  |  |  |
Equity Investments | 338 |  |  | 338 |  |  | — |  |  | — |
Equity investments measured at NAV(1) | 1,456 |  |  | — |  |  | — |  |  | — |
Total equity investments | 1,794 |  |  | 338 |  |  | — |  |  | — |
Total | $ | 167,785 |  |  | $ | 338 |  |  | $ | 165,991 |  |  | $ | — |
(1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B.
Schedule of Assets Measured on Nonrecurring Basis | The following tables present the financial instruments measured at fair value on a nonrecurring basis as of March 31, 2023 and December 31, 2022:
| Carrying Value |  | Quoted Prices in Active Markets for Identical Instruments (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
March 31, 2023 |  |  |  |  |  |  |
Foreclosed and repossessed assets, net | $ | 1,113 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,113 |
Collateral dependent loans with allowances | 6,779 |  |  | — |  |  | — |  |  | 6,779 |
Mortgage servicing rights | 4,120 |  |  | — |  |  | — |  |  | 5,482 |
Total | $ | 12,012 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,374 |
December 31, 2022 |  |  |  |  |  |  |
Foreclosed and repossessed assets, net | $ | 1,271 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,271 |
Impaired loans with allocated allowances | 6,920 |  |  | — |  |  | — |  |  | 6,920 |
Mortgage servicing rights | 4,262 |  |  | — |  |  | — |  |  | 5,665 |
Total | $ | 12,453 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,856 |
Schedule of Fair Value of Assets | The following table represents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at March 31, 2023.
| Fair Value |  | Valuation Techniques (1) |  | Significant Unobservable Inputs (2) |  | Range
March 31, 2023 |  |  |  |  |  |  |
Foreclosed and repossessed assets, net | $ | 1,113 |  |  | Appraisal value |  | Estimated costs to sell |  | 10% - 15%
Collateral dependent loans with allowances | $ | 6,779 |  |  | Appraisal value |  | Estimated costs to sell |  | 10% - 15%
Mortgage servicing rights | $ | 5,482 |  |  | Discounted cash flows |  | Discounted rates |  | 9% - 12%
December 31, 2022 |  |  |  |  |  |  |
Foreclosed and repossessed assets, net | $ | 1,271 |  |  | Appraisal value |  | Estimated costs to sell |  | 10% - 15%
Impaired loans with allocated allowances | $ | 6,920 |  |  | Appraisal value |  | Estimated costs to sell |  | 10% - 15%
Mortgage servicing rights | $ | 5,665 |  |  | Discounted cash flows |  | Discounted rates |  | 9.5% - 12.5%
(1) Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (2) The fair value basis of collateral depended loans, impaired loans prior to the adoption of ASU 2016-12, and real estate owned may be adjusted to reflect management estimates of disposal costs including, but not limited to, real estate brokerage commissions, legal fees, and delinquent property taxes.
Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows:
|  |  | March 31, 2023 |  | December 31, 2022
| Valuation Method Used |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | (Level I) |  | $ | 65,050 |  |  | $ | 65,050 |  |  | $ | 35,363 |  |  | $ | 35,363 |
Other interest-bearing deposits | (Level II) |  | 249 |  |  | 249 |  |  | 249 |  |  | 250 |
Securities available for sale “AFS” | (Level II) |  | 173,423 |  |  | 173,423 |  |  | 165,991 |  |  | 165,991 |
Securities held to maturity “HTM” | (Level II) |  | 95,301 |  |  | 77,183 |  |  | 96,379 |  |  | 76,779 |
Equity investments | (Level I) |  | 380 |  |  | 380 |  |  | 338 |  |  | 338 |
Equity investments valued at NAV(1) | N/A |  | 1,771 |  |  | 1,771 |  |  | 1,456 |  |  | 1,456 |
Other investments | (Level II) |  | 17,428 |  |  | 17,428 |  |  | 15,834 |  |  | 15,834 |
Loans receivable, net | (Level III) |  | 1,398,276 |  |  | 1,348,570 |  |  | 1,393,845 |  |  | 1,342,838 |
Loans held for sale - Residential mortgage | (Level I) |  | 393 |  |  | 402 |  |  | — |  |  | — |
Loans held for sale - SBA | (Level II) |  | 368 |  |  | 408 |  |  | — |  |  | — |
Mortgage servicing rights | (Level III) |  | 4,120 |  |  | 5,482 |  |  | 4,262 |  |  | 5,665 |
Accrued interest receivable | (Level I) |  | 5,550 |  |  | 5,550 |  |  | 5,285 |  |  | 5,285 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits | (Level III) |  | $ | 1,436,793 |  |  | $ | 1,434,459 |  |  | $ | 1,424,720 |  |  | $ | 1,420,871 |
FHLB advances | (Level II) |  | 182,530 |  |  | 181,379 |  |  | 142,530 |  |  | 141,060 |
Other borrowings | (Level I) |  | 67,300 |  |  | 67,300 |  |  | 72,409 |  |  | 72,409 |
Accrued interest payable | (Level I) |  | 573 |  |  | 573 |  |  | 968 |  |  | 968 |
(1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B.

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- Definition 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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