Fair Value of Financial Instruments

12 Months Ended

Mar. 31, 2025

FAIR VALUE OF FINANCIAL INSTRUMENTS

Disclosures regarding the fair value of financial instruments are required to include, in addition to the carrying value, the fair value of certain financial instruments, both assets and liabilities recorded on and off-balance sheet, for which it is practicable to estimate fair value. Accounting guidance defines financial instruments as cash, evidence of ownership of an entity, or a contract that conveys or imposes on an entity the contractual right or obligation to either receive or deliver cash or another financial instrument. The fair value of a financial instrument is discussed below. In cases where quoted market prices are not available, estimated fair values have been determined by the Bank using the best available data and estimation methodology suitable for each such category of financial instruments. For those loans and deposits with floating interest rates, it is presumed that estimated fair values generally approximate their recorded carrying value. The Bank's primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact the Bank's fair value of all interest-earning assets and interest-bearing liabilities, other than those which are short-term in maturity.

The carrying amounts and estimated fair values of the Bank's financial instruments and estimation methodologies at March 31 are as follows:


	March 31, 2025
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	50,315	$	50,315	$	50,315	$	—	$	—

Securities available-for-sale	44,522		44,522		—		44,522		—


Securities held-to-maturity	1,750		1,698		—		1,698		—
Loans receivable	607,347		593,030		—		—		593,030

Accrued interest receivable	2,980		2,980		—		2,980		—
Mortgage servicing rights	130		130		—		—		130

Financial Liabilities:
Deposits	$	661,837	$	658,537	$	406,948	$	251,589	$	—
Advances from FHLB of New York	1,814		1,817		—		1,817		—
Other borrowed money	18,403		17,900		—		17,900		—
Accrued interest payable	1,049		1,049		—		1,049		—


	March 31, 2024
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	59,025	$	59,025	$	59,025	$	—	$	—

Securities available-for-sale	48,030		48,030		—		48,030		—

Securities held-to-maturity	2,008		1,905		—		1,905		—
Loans receivable	617,007		593,484		—		—		593,484

Accrued interest receivable	3,662		3,662		—		3,662		—
Mortgage servicing rights	140		140		—		—		140

Financial Liabilities:
Deposits	$	646,999	$	642,831	$	420,663	$	222,168	$	—
Advances from FHLB of New York	28,027		27,920		—		27,920		—
Other borrowed money	18,403		17,623		—		17,623		—
Accrued interest payable	1,128		1,128		—		1,128		—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details