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Fair Value
 12 Months Ended
Dec. 31, 2024
Fair Value [Abstract]  
Fair Value
Note 8 – Fair Value
 
The Company used the following methods and significant assumptions to estimate fair value:
 
The fair values of securities available‑for‑sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique 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).
 

The fair value of loans that are collateral dependent is generally based upon the fair value of the collateral, which is obtained from recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Collateral dependent loans are evaluated on a quarterly basis for additional required calculation adjustments (taken as part of the ACL) and adjusted accordingly.
 
Appraisals for collateral-dependent loans and assets acquired through or by transfer of in lieu of foreclosure are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, an independent third‑party licensed appraiser reviews the appraisals for accuracy and reasonableness, reviewing the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics.
 
Assets Measured on a Recurring Basis
 
Assets measured at fair value on a recurring basis are summarized below:
 
   
Fair Value Measurement
  
   
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
    
Significant
Other
Observable
Inputs
(Level 2)
    
Significant
Unobservable
Inputs
(Level 3)
    
Total

   
(In thousands)
  
At December 31, 2024:
                        
Securities available-for-sale:
                               
Federal agency mortgage-backed securities
   $ –    
$
53,029
     $
–
    
$
53,029
  
Federal agency CMOs
     –       20,058       –       20,058  
Federal agency debt
    –       40,034       –       40,034  
Municipal bonds
     –      
4,388
       –      
4,388
  
U.S. Treasuries
    
77,190
      
–
      
–
      
77,190
  
SBA pools
    –       9,163       –       9,163  
                                 
At December 31, 2023:
    
                         
Securities available-for-sale: 
                               
Federal agency mortgage-backed
   $ –    
$
66,778
     $
–
    
$
66,778
  
Federal agency CMO
    –       23,339       –       23,339  
Federal agency debt
   
–
      
47,836
      
–
      
47,836
  
Municipal bonds
    –       4,373       –       4,373  
U.S. Treasuries
    163,880       –       –       163,880  
SBA pools 
    –       10,744       –       10,744  
 
There were no transfers between Level 1, Level 2, or Level 3 during the years ended December 31, 2024 or 2023.

Assets Measured on a Nonrecurring Basis

There were no assets or liabilities measured at fair value on a nonrecurring basis at December 31, 2024 or 2023.

Fair Values of Financial Instruments
 
The carrying amounts and estimated fair values of financial instruments as of the periods indicated were as follows:
 
   
Carrying
    
Fair Value Measurements at December 31, 2024
  
   
Value
    
Level 1
    
Level 2
    
Level 3
    
Total
  
   
(In thousands)
  
Financial Assets:
                              
Cash and cash equivalents
  
$
61,365
    
$
61,365
    
$
–
    
$
–
    
$
61,365
  
Securities available-for-sale
    
203,862
      
77,190
      
126,672
      
–
      
203,862
  
Loans receivable held for investment
    
968,861
      
–
      
–
      
942,920
      
942,920
  
Accrued interest receivable
    
5,001
      
5,001
      
–
      
–
      
5,001
  
Bank owned life insurance
    
3,321
      
3,321
      
–
      
–
      
3,321
  
Financial Liabilities:
                                        
Deposits
  
$
745,399
    
$
–
    
$
669,695
    
$
–
    
$
669,695
  
FHLB advances
    
195,532
       –      
195,794
      
–
      
195,794
  
Securities sold under agreements to repurchase
    
66,610
       –      
66,070
      
–
      
66,070
  
Accrued interest payable
    
1,349
      
–
      
1,349
      
–
      
1,349
  

   
Carrying
    
Fair Value Measurements at December 31, 2023
  
   
Value
    
Level 1
    
Level 2
    
Level 3
    
Total
  
   
(In thousands)
  
Financial Assets:
                              
Cash and cash equivalents
  
$
105,195
    
$
105,195
     $ –     $ –    
$
105,195
  
Securities available-for-sale
    
316,950
      
163,880
      
153,070
       –      
316,950
  
Loans receivable held for investment
     880,457       –       –       746,539       746,539  
Accrued interest receivable
    
4,938
      
4,938
      
–
      
–
      
4,938
  
Bank owned life insurance
    
3,275
      
3,275
      
–
      
–
      
3,275
  
Financial Liabilities:
                                        
Deposits
  
$
682,635
     $ –    
$
536,171
     $ –    
$
536,171
  
FHLB advances
    
209,319
       –      
208,107
       –      
208,107
  
Securities sold under agreements to repurchase
    
73,475
       –       72,597      
–
      
72,597
  
Bank Term Funding Program borrowing
    100,000       –       100,000       –       100,000  
Note payable 
    14,000       –       –       14,000       14,000  
Accrued interest payable
    
1,420
       –      
1,420
      
–
      
1,420