Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

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

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of dates indicated:


	Fair Value Measurement Level
($ in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2022
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	93,510	$	—	$	93,510
Residential collateralized mortgage obligations	—		24,680		—		24,680
SBA loan pool securities	—		10,792		—		10,792
Municipal bonds	—		5,272		—		5,272
Corporate bonds	—		4,813		—		4,813
Total securities available-for-sale	—		139,067		—		139,067
Total assets measured at fair value on a recurring basis	$	—	$	139,067	$	—	$	139,067
Total liabilities measured at fair value on a recurring basis	$	—	$	—	$	—	$	—
December 31, 2021
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	84,713	$	—	$	84,713
Residential collateralized mortgage obligations	—		19,056		—		19,056
SBA loan pool securities	—		8,672		—		8,672
Municipal bonds	—		5,686		—		5,686
Corporate bonds	—		5,071		—		5,071
Total securities available-for-sale	—		123,198		—		123,198
Total assets measured at fair value on a recurring basis	$	—	$	123,198	$	—	$	123,198
Total liabilities measured at fair value on a recurring basis	$	—	$	—	$	—	$	—

Schedule of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following table presents the Company’s assets and liabilities measured at fair value on a non-recurring basis as of dates indicated:


	Fair Value Measurement Level
($ in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2022







Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—
Total liabilities measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—
December 31, 2021
Impaired loans:
SBA property	$	—	$	—	$	17	$	17


Total impaired loans	—		—		17		17
Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	17	$	17
Total liabilities measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—

Quantitative Information About Level 3 Fair Value Measurements

The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a non-recurring basis as of the date indicated:

($ in thousands)

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range (Weighted-Average)

December 31, 2021

Impaired loans:

SBA property

Fair value of collateral

Schedule of Total Net Losses

For assets measured at fair value, the following table presents the total net gains (losses), which include charge-offs, recoveries, and specific reserves recorded for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2022		2021		2022		2021
Collateral dependent impaired loans:

SBA property	$	—	$	15	$	—	$	(2)
Commercial lines of credit	—		—		—		136
SBA commercial term	—		—		—		(5)


Other real estate owned	—		(1)		—		74
Net gains (losses) recognized	$	—	$	14	$	—	$	203

Schedule of Carrying Value and Estimated Fair Values of Financial Assets and Liabilities

The following table presents the carrying value and estimated fair values of financial assets and liabilities as of the dates indicated:


	Carrying Value		Fair Value		Fair Value Measurements
($ in thousands)					Level 1		Level 2		Level 3
June 30, 2022
Financial assets:
Interest-bearing deposits in other financial institutions	$	276,785	$	276,785	$	276,785	$	—	$	—
Securities available-for-sale	139,067		139,067		—		139,067		—

Loans held-for-sale	9,627		10,275		—		10,275		—
Net loans held-for-investment	1,811,830		1,790,987		—		—		1,790,987
Federal Home Loan Bank (“FHLB”) and other restricted stock	10,183		N/A		N/A		N/A		N/A
Accrued interest receivable	5,212		5,212		13		400		4,799
Financial liabilities:
Deposits	$	1,997,607	$	1,993,792	$	—	$	—	$	1,993,792

Accrued interest payable	602		602		—		—		602
December 31, 2021
Financial assets:
Interest-bearing deposits in other financial institutions	$	188,063	$	188,063	$	188,063	$	—	$	—
Securities available-for-sale	123,198		123,198		—		123,198		—

Loans held-for-sale	37,026		41,079		—		41,079		—
Net loans held-for-investment	1,709,824		1,725,022		—		—		1,725,022
FHLB and other restricted stock	8,577		N/A		N/A		N/A		N/A
Accrued interest receivable	5,368		5,368		1		337		5,030
Financial liabilities:
Deposits	$	1,867,134	$	1,867,635	$	—	$	—	$	1,867,635
FHLB advances	10,000		10,087		—		10,087		—
Accrued interest payable	771		771		—		1		770