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FAIR VALUE ACCOUNTING (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024 and December 31, 2023:

			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, 2024
Investment securities:
U.S. government agency obligations			$	14,457					$	—					$	14,457					$	—
Mortgage-backed securities			74,020						—						74,020						—
Corporate debt securities			41,051						—						41,051						—
Asset-backed securities			19,904						—						19,904						—
Total investment securities			149,432						—						149,432						—
Equity Investments:
Farmer Mac equity securities			540						540						—						—
Preferred equity			1,812						—						—						1,812
Equity investments measured at NAV(1)			2,744						—						—						—
Total equity investments			5,096						540						—						1,812
Total			$	154,528					$	540					$	149,432					$	1,812
December 31, 2023
Investment securities:
U.S. government agency obligations			$	16,576					$	—					$	16,576					$	—
Mortgage-backed securities			73,480						—						73,480						—
Corporate debt securities			41,174						—						41,174						—
Corporate asset backed securities			24,513						—						24,513						—
Total investment securities			155,743						—						155,743						—
Equity Investments:
Farmer Mac equity securities			557						557						—						—
Equity investments measured at NAV(1)			2,727						—						—						—
Total equity investments			3,284						557						—						—
Total			$	159,027					$	557					$	155,743					$	—

(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, 2024 and December 31, 2023:

			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, 2024
Foreclosed and repossessed assets, net			$	1,572					$	—					$	—					$	1,572
Collateral dependent loans			1,805						—						—						1,805
Mortgage servicing rights			3,696						—						—						5,025
Total			$	7,073					$	—					$	—					$	8,402
December 31, 2023
Foreclosed and repossessed assets, net			$	1,795					$	—					$	—					$	1,795
Collateral dependent loans			3,499						—						—						3,499
Mortgage servicing rights			3,865						—						—						5,589
Total			$	9,159					$	—					$	—					$	10,883

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, 2024.

			Fair Value						Valuation Techniques (1)						Significant Unobservable Inputs (2)						Range
September 30, 2024
Foreclosed and repossessed assets, net			$	1,572					Appraisal value						Estimated costs to sell						10% - 15%
Collateral dependent loans			$	1,805					Appraisal value / Internal Collateral valuations						Estimated costs to sell						10% - 15%
Mortgage servicing rights			$	5,025					Discounted cash flows						Discounted rates						9.125% - 12.125%
December 31, 2023
Foreclosed and repossessed assets, net			$	1,795					Appraisal value						Estimated costs to sell						10% - 15%
Collateral dependent loans			$	3,499					Appraisal value / Internal Collateral valuations						Estimated costs to sell						10% - 15%
Mortgage servicing rights			$	5,589					Discounted cash flows						Discounted rates						9.375% - 12.375%

(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, 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, 2024												December 31, 2023
			Valuation Method Used						Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
Financial assets:
Cash and cash equivalents			(Level I)						$	36,632					$	36,632					$	37,138					$	37,138
Securities available for sale “AFS”			(Level II)						149,432						149,432						155,743						155,743
Securities held to maturity “HTM”			(Level II)						87,033						71,046						91,229						73,262
Farmer Mac equity securities			(Level I)						540						540						557						557
Preferred equity			(Level III)						1,812						1,812						—						—
Equity investments valued at NAV(1)			N/A						2,744						N/A						2,727						N/A
Other investments			(Level II)						12,311						12,311						15,725						15,725
Loans receivable, net			(Level III)						1,403,828						1,379,680						1,437,884						1,374,387
Loans held for sale - Residential mortgage			(Level I)						535						535						1,134						1,134
Loans held for sale - SBA /FSA			(Level II)						162						162						4,639						4,639
Mortgage servicing rights			(Level III)						3,696						5,025						3,865						5,589
Accrued interest receivable			(Level I)						6,235						6,235						5,409						5,409
Financial liabilities:
Deposits			(Level III)						$	1,520,667					$	1,520,399					$	1,519,092					$	1,517,361
FHLB advances			(Level II)						21,000						20,915						79,530						79,087
Other borrowings			(Level II)						61,548						57,225						67,465						59,743
Accrued interest payable			(Level I)						6,887						6,887						3,175						3,175

(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://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

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

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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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-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

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

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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://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

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

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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.

+ References

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-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
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