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v3.23.1

Fair Value and Interest Rate Risk (Tables) | 3 Months Ended
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Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Fair Value, by Balance Sheet Grouping |
(In thousands) |  |  | March 31, 2023 |  | December 31, 2022
| Fair Value Hierarchy |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Financial Assets: |  |  |  |  |  |  |  |  |
Cash and noninterest bearing balances due from banks | Level 1 |  | $ | 1,828 |  |  | $ | 1,828 |  |  | $ | 5,182 |  |  | $ | 5,182 |
Interest-bearing deposits due from banks | Level 1 |  | 58,424 |  |  | 58,424 |  |  | 33,311 |  |  | 33,311 |
Available-for-sale securities | Level 2 |  | 81,531 |  |  | 81,531 |  |  | 75,093 |  |  | 75,093 |
Available-for-sale securities | Level 3 |  | 10,205 |  |  | 10,205 |  |  | 9,427 |  |  | 9,427 |
Other investments | Level 2 |  | 4,450 |  |  | 4,450 |  |  | 4,450 |  |  | 4,450 |
Federal Reserve Bank stock | Level 2 |  | 2,673 |  |  | 2,673 |  |  | 2,627 |  |  | 2,627 |
Federal Home Loan Bank stock | Level 2 |  | 6,374 |  |  | 6,374 |  |  | 3,874 |  |  | 3,874 |
Loans receivable, net | Level 3 |  | 860,968 |  |  | 846,185 |  |  | 838,006 |  |  | 818,960 |
Loans held for sale | Level 2 |  | 6,882 |  |  | 7,471 |  |  | 5,211 |  |  | 5,534 |
SBA servicing assets | Level 3 |  | 893 |  |  | 987 |  |  | 886 |  |  | 1,013 |
Accrued interest receivable | Level 2 |  | 7,308 |  |  | 7,308 |  |  | 7,267 |  |  | 7,267 |
Interest rate swap receivable | Level 2 |  | 106 |  |  | 106 |  |  | 203 |  |  | 203 |
Financial assets, total |  |  | $ | 1,041,642 |  |  | $ | 1,027,542 |  |  | $ | 985,537 |  |  | $ | 966,941 |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Demand deposits | Level 2 |  | $ | 152,773 |  |  | $ | 152,773 |  |  | $ | 269,636 |  |  | $ | 269,636 |
Savings deposits | Level 2 |  | 56,418 |  |  | 56,418 |  |  | 71,002 |  |  | 71,002 |
Money market deposits | Level 2 |  | 306,474 |  |  | 306,474 |  |  | 211,000 |  |  | 211,000 |
Negotiable order of withdrawal accounts | Level 2 |  | 29,316 |  |  | 29,316 |  |  | 34,440 |  |  | 34,440 |
Time deposits | Level 2 |  | 206,398 |  |  | 203,531 |  |  | 225,670 |  |  | 221,353 |
Brokered deposits | Level 1 |  | 105,089 |  |  | 104,362 |  |  | 48,698 |  |  | 47,684 |
FHLB borrowings | Level 2 |  | 150,000 |  |  | 149,075 |  |  | 85,000 |  |  | 83,853 |
Senior notes | Level 2 |  | 11,619 |  |  | 11,162 |  |  | 11,640 |  |  | 11,103 |
Subordinated debt | Level 2 |  | 9,847 |  |  | 9,758 |  |  | 9,840 |  |  | 9,680 |
Junior subordinated debt owed to unconsolidated trust | Level 2 |  | 8,130 |  |  | 8,130 |  |  | 8,128 |  |  | 8,128 |
Note payable | Level 3 |  | 533 |  |  | 504 |  |  | 585 |  |  | 544 |
Accrued interest payable | Level 2 |  | 771 |  |  | 771 |  |  | 585 |  |  | 585 |
Interest rate swap liability | Level 2 |  | 106 |  |  | 106 |  |  | 203 |  |  | 203 |
Financial liabilities, total |  |  | $ | 1,037,474 |  |  | $ | 1,032,380 |  |  | $ | 976,427 |  |  | $ | 969,211 |
Fair Value, Assets Measured on Recurring Basis |
(In thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
March 31, 2023: |  |  |  |  |  |  |
U. S. Government agency and mortgage-backed securities | $ | — |  |  | $ | 67,537 |  |  | $ | — |  |  | $ | 67,537 |
Corporate bonds | — |  |  | 3,457 |  |  | 10,205 |  |  | 13,662 |
Subordinated notes | — |  |  | 4,521 |  |  | — |  |  | 4,521 |
SBA loan pools | — |  |  | 5,505 |  |  | — |  |  | 5,505 |
Municipal bonds | — |  |  | 511 |  |  | — |  |  | 511 |
Available-for-sale securities | $ | — |  |  | $ | 81,531 |  |  | $ | 10,205 |  |  | $ | 91,736 |
Interest rate swap receivable | $ | — |  |  | $ | 106 |  |  | $ | — |  |  | $ | 106 |
Interest rate swap liability | $ | — |  |  | $ | 106 |  |  | $ | — |  |  | $ | 106 |
December 31, 2022: |  |  |  |  |  |  |
U. S. Government agency and mortgage-backed securities | $ | — |  |  | $ | 59,046 |  |  | $ | — |  |  | $ | 59,046 |
Corporate bonds | — |  |  | 5,228 |  |  | 9,427 |  |  | 14,655 |
Subordinated notes | — |  |  | 4,602 |  |  | — |  |  | 4,602 |
SBA loan pools | — |  |  | 5,718 |  |  | — |  |  | 5,718 |
Municipal bonds | — |  |  | 499 |  |  | — |  |  | 499 |
Available-for-sale securities | $ | — |  |  | $ | 75,093 |  |  | $ | 9,427 |  |  | $ | 84,520 |
Interest rate swap receivable | $ | — |  |  | $ | 203 |  |  | $ | — |  |  | $ | 203 |
Interest rate swap liability | $ | — |  |  | $ | 203 |  |  | $ | — |  |  | $ | 203 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
(In thousands) | Three Months Ended March 31, 2023 |  | Three Months Ended March 31, 2022
Level 3 fair value, beginning of year | $ | 9,427 |  |  | $ | 13,180 |
Purchases | — |  |  | — |
Realized gain (loss) | — |  |  | — |
Unrealized gain (loss) | 778 |  |  | (1,943) |
Transfers in and /or out of Level 3 | — |  |  | — |
Level 3 fair value, end of year | $ | 10,205 |  |  | $ | 11,237 |
Fair Value Measurement Inputs and Valuation Techniques |
(In thousands) | Fair Value |  | Valuation Methodology |  | Unobservable Inputs |  | Range of Inputs
March 31, 2023: |  |  |  |  |  |  |  |  |
Impaired loans, net | $ | 17,112 |  |  | Real Estate Appraisals |  | Discount for appraisal type |  | 5.8 | % | - | 20%
SBA servicing assets | 987 |  |  | Discounted Cash Flows |  | Market discount rates |  | 14.73 | % | - | 14.90%
December 31, 2022: |  |  |  |  |  |  |  |  |
Impaired loans, net | $ | 12,873 |  |  | Real Estate Appraisals |  | Discount for appraisal type |  | 5.8 | % | - | 20%
SBA servicing assets | 1,013 |  |  | Discounted Cash Flows |  | Market discount rates |  | 14.73 | % | - | 14.90%

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