Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 are summarized below:

	Fair Value Measure on a Recurring Basis
($ in thousands)	September 30, 2021
	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	27,214	$	—	$	27,214	$	—
Residential collateralized mortgage obligations	$	75,321	$	—	$	75,321	$	—
Other investment securities:
Mutual fund - CRA qualified	$	3,734	$	3,734	$	—	$	—
	December 31, 2020
U.S. Government sponsored agency securities	$	1,005	$	—	$	1,005	$	—
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	19,704	$	—	$	19,704	$	—
Residential collateralized mortgage obligations	$	71,082	$	—	$	71,082	$	—
Other investment securities:
Mutual fund - CRA qualified	$	3,773	$	3,773	$	—	$	—

Summary of Fair Value Hierarchy and Fair Value of Assets that Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis

The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of September 30, 2021 and December 31, 2020:

($ in thousands)	Fair Value Measure on a Nonrecurring Basis
	September 30, 2021
	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans	$	443	$	—	$	—	$	443
	December 31, 2020
Impaired loans	$	87	$	—	$	—	$	87

Summary of Increase (Decrease) In Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment

The following table presents the increase (decrease) in value of certain assets held at the end of the respective reporting periods presented for which a nonrecurring fair value adjustment was recognized during the period presented:

($ in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Impaired loans	$	(106)	$	—	$	(99)	$	(56)

Summary of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements

The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of September 30, 2021 and December 31, 2020:

	September 30, 2021
($ in thousands)	Fair Value Measurements (Level 3)		Valuation Techniques	Unobservable Inputs	Range of Inputs	Weighted- Average of Inputs (1)
Impaired loans:
Commercial and industrial (2)	$	—	Income approach - discounted cash flows	Discount rate	3.8%	3.8%
SBA loans—real estate	$	47	Market approach	Market data comparison	(13.0)% to 18.0%	(0.1)%
SBA loans—real estate	$	396	Income approach - income capitalization	Capitalization rate	12.0%	12.0%
	December 31, 2020
Impaired loans:
Commercial and industrial (2)	$	—	Income approach - discounted cash flows	Discount rate	3.8%	3.8%
SBA loans—non-real estate	$	62	Income approach - discounted cash flows	Discount rate	5.3%	5.3%
SBA loans—non-real estate	$	25	Market approach	Market data comparison	(3.5)% to 7.1%	2.9%

(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2021 and December 31, 2020.

(2)Applying fair value adjustments on the impaired loan through the full specific reserve allowance of the loan carrying value resulted in a zero fair value balance as of September 30, 2021 and December 31, 2020.

Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value

Financial Instruments: The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet:

($ in thousands)	September 30, 2021
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial Assets:
Cash and cash equivalents	$	188,145	$	188,145	$	—	$	—	$	188,145
Loans held for sale	$	94,466	$	—	$	104,218	$	—	$	104,218
Loans receivable, net	$	1,217,687	$	—	$	—	$	1,217,597	$	1,217,597
Accrued interest receivable, net	$	3,931	$	5	$	267	$	3,659	$	3,931
Other investments:
FHLB and PCBB stock	$	7,195	N/A		N/A		N/A		N/A
Time deposits placed	$	96	$	—	$	96	$	—	$	96
Servicing assets	$	12,389	$	—	$	—	$	15,138	$	15,138
Financial Liabilities:
Deposit	$	1,496,406	$	—	$	1,497,270	$	—	$	1,497,270
Accrued interest payable	$	575	$	—	$	575	$	—	$	575

($ in thousands)	December 31, 2020
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial Assets:
Cash and cash equivalents	$	106,310	$	106,310	$	—	$	—	$	106,310
Loans held for sale	$	26,659	$	—	$	26,659	$	—	$	26,659
Loans receivable, net	$	1,084,384	$	—	$	—	$	1,109,217	$	1,109,217
Accrued interest receivable, net	$	3,985	$	7	$	249	$	3,729	$	3,985
Other investments:
FHLB and PCBB stock	$	6,233	N/A		N/A		N/A		N/A
Time deposits placed	$	95	$	—	$	95	$	—	$	95
Servicing assets	$	7,360	$	—	$	—	$	9,106	$	9,106
Financial Liabilities:
Deposit	$	1,200,090	$	—	$	1,200,789	$	—	$	1,200,789
FHLB Advances	$	5,000	$	—	$	5,000	$	—	$	5,000
Accrued interest payable	$	1,021	$	—	$	1,021	$	—	$	1,021