Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques

Fair value is adjusted for the estimated probability of the loan closing with the borrower (Level 3).

(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range
March 31, 2024
MSRs (1)	$	5,821	Market Approach	Weighted average prepayment speed (PSA) (2)	147
IRLCs - net asset	$	232	Market Approach	Range of pull through rate	79% - 100%
				Average pull through rate	96%

(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2023
MSRs (1)	$	5,926	Market Approach	Weighted average prepayment speed (PSA) (2)	129
IRLCs - net asset	$	110	Market Approach	Range of pull through rate	78% - 100%
				Average pull through rate	98%

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(1)The weighted average was calculated with reference to the principal balance of the underlying mortgages.

(2)PSA = Public Securities Association Standard Prepayment Model

Schedule of Servicing Asset at Fair Value

The following table presents activity in MSRs for the three months ended March 31, 2024.

(Dollars in thousands)	Three Months Ended March 31, 2024
Beginning balance	$	5,926
Servicing rights resulting from sales of loans	118
Valuation adjustment	(223)
Ending balance	$	5,821

Schedule of Derivative Asset at Fair Value

The following table presents activity in the IRLCs - net asset for the three months ended March 31, 2024.

(Dollars in thousands)	Three Months Ended March 31, 2024
Beginning balance	$	110
Valuation adjustment	122
Ending balance	$	232

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The following tables present the recorded amount of assets measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023. No assets were transferred from one hierarchy level to another during the first three months of 2024 or 2023.

(Dollars in thousands)	Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2024
Assets:
Securities available for sale:
U.S. Government agencies	$	69,541	$	—	$	69,541	$	—
Mortgage-backed	103,626		—		103,626		—
Other debt securities	6,329		—		6,329		—
	179,496		—		179,496		—
Equity securities	5,681		—		5,681		—
TBA forward trades	10		—		10		—
Loans Held for Sale	13,767		—		13,767		—
Loans Held for Investment, at fair value	9,684		—		9,684		—
MSRs	5,821		—		—		5,821
IRLCs	233		—		—		233
Total assets at fair value	$	214,692	$	—	$	208,638	$	6,054
Liabilities:
IRLCs	$	1	$	—	$	—	$	1
TBA securities	108		—		108		—
Total liabilities at fair value	$	109	$	—	$	108	$	1

(Dollars in thousands)	Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2023
Assets:
Securities available for sale:
U.S. Government agencies	$	20,475	$	—	$	20,475	$	—
Mortgage-backed	84,027		—		84,027		—
Other debt securities	6,019		—		6,019		—
	110,521		—		110,521		—
Equity securities	5,703		—		5,703		—
TBA forward trades	2		—		2		—
Loans Held for Sale	8,782		—		8,782		—
Loans Held for Investment, at fair value	9,944		—		9,944		—
MSRs	5,926		—		—		5,926
IRLCs	110		—		—		110
Total assets at fair value	$	140,988	$	—	$	134,952	$	6,036
Liabilities:
TBA securities	$	176	$	—	$	176	$	—
Total liabilities at fair value	$	176	$	—	$	176	$	—

Fair Value of Assets Measured on Nonrecurring Basis

Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average (1)
March 31, 2024
Nonrecurring measurements:
Individually evaluated collateral dependent loans	$	17	Appraisal of collateral(1)	Appraisal adjustment(2) Liquidation expense(2)	99% 10%	99% 10%
Other real estate owned	$	179	Appraisal of collateral(1)	Appraisal adjustment(2)	(0%) - (20%)	0%
Repossessed properties	$	1,845	Appraisal of collateral(1)	Appraisal adjustment(2)	12% - 13%	13%

	Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
December 31, 2023
Nonrecurring measurements:
Individually evaluated collateral dependent loan	$	633	Appraisal of collateral(1)	Appraisal adjustment(2) Liquidation expense(2)	51% 10%	51% 10%
Other real estate owned	$	179	Appraisal of collateral(1)	Appraisal adjustment(2)	0% - 20%	0%

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(1)Unobservable inputs were weighted by the relative fair value of the instruments.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.