Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2024 |
Fair Value Disclosures [Abstract] |
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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 | September 30, 2024 | | | | | | | | | Securities available-for-sale: | | | | | | | | | U.S. government agency and U.S. government sponsored enterprise securities: | | | | | | | | | Residential mortgage-backed securities | | $ | — | | | $ | 112,153 | | | $ | — | | | $ | 112,153 | | Residential collateralized mortgage obligations | | — | | | 22,386 | | | — | | | 22,386 | | SBA loan pool securities | | — | | | 6,431 | | | — | | | 6,431 | | Municipal bonds | | — | | | 2,473 | | | — | | | 2,473 | | Corporate bonds | | — | | | 4,192 | | | — | | | 4,192 | | Total securities available-for-sale | | — | | | 147,635 | | | — | | | 147,635 | | Total assets measured at fair value on a recurring basis | | $ | — | | | $ | 147,635 | | | $ | — | | | $ | 147,635 | | Total liabilities measured at fair value on a recurring basis | | $ | — | | | $ | — | | | $ | — | | | $ | — | | December 31, 2023 | | | | | | | | | Securities available-for-sale: | | | | | | | | | U.S. government agency and U.S. government sponsored enterprise securities: | | | | | | | | | Residential mortgage-backed securities | | $ | — | | | $ | 104,091 | | | $ | — | | | $ | 104,091 | | Residential collateralized mortgage obligations | | — | | | 24,173 | | | — | | | 24,173 | | SBA loan pool securities | | — | | | 7,450 | | | — | | | 7,450 | | Municipal bonds | | — | | | 3,329 | | | — | | | 3,329 | | Corporate bonds | | — | | | 4,280 | | | — | | | 4,280 | | Total securities available-for-sale | | — | | | 143,323 | | | — | | | 143,323 | | Total assets measured at fair value on a recurring basis | | $ | — | | | $ | 143,323 | | | $ | — | | | $ | 143,323 | | Total liabilities measured at fair value on a recurring basis | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | |
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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 | September 30, 2024 | | | | | | | | | Loans individually evaluated: | | | | | | | | | Business property | | $ | — | | | $ | — | | | $ | 1,274 | | | $ | 1,274 | | Commercial and industrial | | — | | | — | | | 16 | | | 16 | | | | | | | | | | | Total loans individually evaluated | | — | | | — | | | 1,290 | | | 1,290 | | | | | | | | | | | | | | | | | | | | Total assets measured at fair value on a non-recurring basis | | $ | — | | | $ | — | | | $ | 1,290 | | | $ | 1,290 | | Total liabilities measured at fair value on a non-recurring basis | | $ | — | | | $ | — | | | $ | — | | | $ | — | | December 31, 2023 | | | | | | | | | Loans individually evaluated: | | | | | | | | | Business property | | $ | — | | | $ | — | | | $ | 425 | | | $ | 425 | | | | | | | | | | | | | | | | | | | | Total loans individually evaluated | | — | | | — | | | 425 | | | 425 | | Total assets measured at fair value on a non-recurring basis | | $ | — | | | $ | — | | | $ | 425 | | | $ | 425 | | Total liabilities measured at fair value on a non-recurring basis | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | |
The following table presents gains or losses, including charge-offs, recoveries, and specific reserves recorded, for assets measured at fair value for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | ($ in thousands) | | 2024 | | 2023 | | 2024 | | 2023 | Loans individually evaluated: | | | | | | | | | | | | | | | | | | Business property | | $ | 3 | | | $ | (15) | | | $ | 47 | | | $ | (47) | | Commercial and industrial | | (1) | | | — | | | 31 | | | 1,074 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net gains (losses) recognized | | $ | 2 | | | $ | (15) | | | $ | 78 | | | $ | 1,027 | | | | | | | | | | |
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Schedule of 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) | | Weighted-Average | September 30, 2024 | | | | | | | | | Loans individually evaluated: | | | | | | | | | Business property | | $ | 1,274 | | | Fair value of collateral | | Selling cost | | 6% | Commercial and industrial | | 16 | | | Discounted cash flow | | NM | | NM | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | | | | | | | Loans individually evaluated: | | | | | | | | | Business property | | $ | 425 | | | Fair value of collateral | | NM | | NM | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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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 | September 30, 2024 | | | | | | | | | | | Financial assets: | | | | | | | | | | | Interest-bearing deposits in other financial institutions | | $ | 163,083 | | | $ | 163,083 | | | $ | 163,083 | | | $ | — | | | $ | — | | Securities available-for-sale | | 147,635 | | | 147,635 | | | — | | | 147,635 | | | — | | Loans held-for-sale | | 5,170 | | | 5,625 | | | — | | | 5,625 | | | — | | Net loans held-for-investment | | 2,437,244 | | | 2,382,466 | | | — | | | — | | | 2,382,466 | | Federal Home Loan Bank (“FHLB”) and other restricted stock | | 14,042 | | | N/A | | N/A | | N/A | | N/A | Accrued interest receivable | | 9,896 | | | 9,896 | | | 275 | | | 488 | | | 9,133 | | Financial liabilities: | | | | | | | | | | | Deposits | | $ | 2,459,682 | | | $ | 2,466,010 | | | $ | — | | | $ | — | | | $ | 2,466,010 | | | | | | | | | | | | | | | | | | | | | | | | Accrued interest payable | | 27,985 | | | 27,985 | | | — | | | — | | | 27,985 | | December 31, 2023 | | | | | | | | | | | Financial assets: | | | | | | | | | | | Interest-bearing deposits in other financial institutions | | $ | 215,824 | | | $ | 215,824 | | | $ | 215,824 | | | $ | — | | | $ | — | | Securities available-for-sale | | 143,323 | | | 143,323 | | | — | | | 143,323 | | | — | | Loans held-for-sale | | 5,155 | | | 5,472 | | | — | | | 5,472 | | | — | | Net loans held-for-investment | | 2,295,919 | | | 2,225,573 | | | — | | | — | | | 2,225,573 | | FHLB and other restricted stock | | 12,716 | | | N/A | | N/A | | N/A | | N/A | Accrued interest receivable | | 9,468 | | | 9,468 | | | 128 | | | 513 | | | 8,827 | | Financial liabilities: | | | | | | | | | | | Deposits | | $ | 2,351,612 | | | $ | 2,353,465 | | | $ | — | | | $ | — | | | $ | 2,353,465 | | FHLB advances | | 39,000 | | | 39,013 | | | — | | | 39,013 | | | — | | Accrued interest payable | | 18,052 | | | 18,052 | | | — | | | 192 | | | 17,860 | | | | | | | | | | | | |
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