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v3.23.3

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 |  | 853,989 |  |  | 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 |  |  | $ | 1,034,663 |  |  | $ | 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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- 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 -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -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 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
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