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FAIR VALUE ACCOUNTING (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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)
September 30, 2023
Investment securities:
U.S. government agency obligations			$	17,318					$	—					$	17,318					$	—
Mortgage-backed securities			69,731						—						69,731						—
Corporate debt securities			40,889						—						40,889						—
Corporate asset-backed securities			25,476						—						25,476						—
Total investment securities			153,414						—						153,414						—
Equity Investments:
Equity Investments			450						450						—						—
Equity investments measured at NAV(1)			1,983						—						—						—
Total equity investments			2,433						450						—						—
Total			$	155,847					$	450					$	153,414					$	—
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 September 30, 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)
September 30, 2023
Foreclosed and repossessed assets, net			$	1,046					$	—					$	—					$	1,046
Collateral dependent loans with allowances			293						—						—						293
Mortgage servicing rights			3,944						—						—						5,701
Total			$	5,283					$	—					$	—					$	7,040
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

September 30, 2023.

			Fair Value						Valuation Techniques (1)						Significant Unobservable Inputs (2)						Range
September 30, 2023
Foreclosed and repossessed assets, net			$	1,046					Appraisal value						Estimated costs to sell						10% - 15%
Collateral dependent loans with allowances			$	293					Appraisal value						Estimated costs to sell						10% - 15%
Mortgage servicing rights			$	5,701					Discounted cash flows						Discounted rates						10.125% - 13.125%
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:

									September 30, 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)						$	32,532					$	32,532					$	35,363					$	35,363
Other interest-bearing deposits			(Level II)						—						—						249						250
Securities available for sale “AFS”			(Level II)						153,414						153,414						165,991						165,991
Securities held to maturity “HTM”			(Level II)						92,336						68,752						96,379						76,779
Equity investments			(Level I)						450						450						338						338
Equity investments valued at NAV(1)			N/A						1,983						1,983						1,456						1,456
Other investments			(Level II)						15,109						15,109						15,834						15,834
Loans receivable, net			(Level III)						1,424,556						1,357,089						1,393,845						1,342,838
Loans held for sale - Residential mortgage			(Level I)						904						914						—						—
Loans held for sale - SBA /FSA			(Level II)						1,833						1,833						—						—
Mortgage servicing rights			(Level III)						3,944						5,701						4,262						5,665
Accrued interest receivable			(Level I)						5,936						5,936						5,285						5,285
Financial liabilities:
Deposits			(Level III)						$	1,473,235					$	1,470,098					$	1,424,720					$	1,420,871
FHLB advances			(Level II)						114,530						113,571						142,530						141,060
Other borrowings			(Level II)						67,407						59,450						72,409						72,409
Accrued interest payable			(Level I)						1,623						1,623						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.

X

- 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).

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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.

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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).

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

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