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FAIR VALUE ACCOUNTING
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE ACCOUNTING FAIR VALUE ACCOUNTING
ASC Topic 820-10, “Fair Value Measurements and Disclosures” establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The topic describes three levels of inputs that may be used to measure fair value:
Level 1- Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.
Level 2- Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3- Significant unobservable inputs that reflect the Company’s assumptions about the factors that market participants would use in pricing an asset or liability.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the fair value measurement.
The fair value of securities available-for-sale is determined by obtaining market price quotes from independent third parties wherever such quotes are available (Level 1 inputs); or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). Where such quotes are not available, we utilize independent third party valuation analysis to support our own estimates and judgments in determining fair value (Level 3 inputs).
Assets Measured on a Recurring Basis
The following tables present the financial instruments measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:
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, 2025
Investment securities:
U.S. government agency obligations$11,432 $— $11,432 $— 
Mortgage-backed securities67,600 — 67,600 — 
Corporate debt securities42,284 — 42,284 — 
Asset-backed securities16,323 — 16,323 — 
Total investment securities137,639 — 137,639 — 
Equity Investments:
Farmer Mac equity securities 481 481 — — 
Preferred equity1,362 — — 1,362 
Equity investments measured at NAV(1)3,832 — — — 
Total equity investments5,675 481 — 1,362 
Total$143,314 $481 $137,639 $1,362 
December 31, 2024
Investment securities:
U.S. government agency obligations$13,753 $— $13,753 $— 
Mortgage-backed securities68,386 — 68,386 — 
Corporate debt securities41,716 — 41,716 — 
Corporate asset backed securities18,996 — 18,996 — 
Total investment securities142,851 — 142,851 — 
Equity Investments:
Farmer Mac equity securities569 569 — — 
Preferred equity1,362 — — 1,362 
Equity investments measured at NAV(1)2,771 — — — 
Total equity investments4,702 569 — 1,362 
Total$147,553 $569 $142,851 $1,362 
(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.
During the nine months ended September 30, 2024, senior debt of a community development financial institution, classified as available-for-sale securities was exchanged for preferred equity of the financial institution’s operating subsidiary. At September 30, 2025, the Company owned $1,362 preferred equity investments for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value. At December 31, 2024, the Company owned $1,362 preferred equity investments for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value.
There were no transfers in or out of Level 1, Level 2 or Level 3 fair value measurements relating to the available-for-sale securities above during the three and nine months ended September 30, 2025. There were no losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the three and nine months ended September 30, 2025.
During the three and nine months ended September 30, 2024, $0 and $2,082 of senior debt, previously measured as a Level 1 instrument, was exchanged for preferred equity, now measured as a Level 3 instrument, resulting in a transfer out of Level 1 fair value measurement to Level 3 fair value measurement. The exchange resulted in $0 and $168 of unrealized losses on available-for-sale securities, previously included in other comprehensive income, being recognized on the three and nine months ended September 30, 2024, consolidated statement of operations as loss on equity securities.
Assets Measured on Nonrecurring Basis
The following tables present the financial instruments measured at fair value on a nonrecurring basis as of September 30, 2025 and December 31, 2024:
Carrying ValueQuoted Prices in
Active Markets
for Identical
Instruments
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
September 30, 2025
Foreclosed and repossessed assets, net$911 $— $— $911 
Collateral dependent loans11,222 — — 11,222 
Total$12,133 $— $— $12,133 
December 31, 2024
Foreclosed and repossessed assets, net$915 $— $— $915 
Collateral dependent loans3,107 — — 3,107 
Total$4,022 $— $— $4,022 
The fair value of foreclosed and repossessed assets was determined by obtaining market price valuations from independent third parties wherever such quotes were available for other collateral owned. The Company utilized independent third party appraisals to support the Company’s estimates and judgments in determining fair value for other real estate owned.
The fair value of collateral dependent loans with allowances was determined by obtaining independent third party appraisals and/or internally developed collateral valuations to support the Company’s estimates and judgments in determining the fair value of the underlying collateral supporting impaired loans.
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, 2025 and December 31, 2024.
Fair
Value		Valuation Techniques (1)Significant Unobservable Inputs (2)Range
September 30, 2025
Foreclosed and repossessed assets, net$911 Appraisal valueEstimated costs to sell
10% - 15%
Collateral dependent loans$11,222 Appraisal value / Internal Collateral valuationsEstimated costs to sell
10% - 15%
December 31, 2024
Foreclosed and repossessed assets, net$915 Appraisal valueEstimated costs to sell
10% - 15%
Collateral dependent loans$3,107 Appraisal value / Internal Collateral valuationsEstimated costs to sell
10% - 15%
(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.
The table below represents what we would receive to sell an asset or what we would have to pay to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying value of restricted FRB and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the table below.
The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows:
 September 30, 2025December 31, 2024
 Valuation Method UsedCarrying
Amount		Estimated
Fair
Value		Carrying
Amount		Estimated
Fair
Value
Financial assets:
Cash and cash equivalents(Level I)$82,431 $82,431 $50,172 $50,172 
Securities available for sale “AFS”(Level II)137,639 137,639 142,851 142,851 
Securities held to maturity “HTM”(Level II)81,526 64,879 85,504 65,622 
Farmer Mac equity securities(Level I)481 481 569 569 
Preferred equity(Level III)1,362 1,362 1,362 1,362 
Equity investments valued at NAV(1)N/A3,832 N/A2,771 N/A
Loans receivable, net(Level III)1,300,828 1,269,558 1,348,432 1,315,657 
Loans held for sale - Residential mortgage(Level I)1,418 1,418 441 441 
Loans held for sale - SBA /FSA(Level II)3,928 3,928 888 888 
Mortgage servicing rights(Level III)3,532 4,789 3,663 5,227 
Accrued interest receivable(Level I)6,159 6,159 5,653 5,653 
Financial liabilities:
Deposits(Level III)$1,480,554 $1,480,268 $1,488,148 $1,487,492 
FHLB advances(Level II)— — 5,000 4,979 
Other borrowings(Level II)46,762 44,662 61,606 58,625 
Accrued interest payable(Level I)3,832 3,832 5,842 5,842 
(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.