Fair Value Measurements, As Restated (Tables)

3 Months Ended

Mar. 31, 2025

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
March 31, 2025, as restated
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	114,222	$	—	$	114,222
Residential collateralized mortgage obligations	—		21,075		—		21,075
SBA loan pool securities	—		5,785		—		5,785
Municipal bonds	—		2,399		—		2,399
Corporate bonds	—		4,709		—		4,709
Total securities available-for-sale	—		148,190		—		148,190

Total assets measured at fair value on a recurring basis	$	—	$	148,190	$	—	$	148,190
Total liabilities measured at fair value on a recurring basis	$	—	$	—	$	—	$	—
December 31, 2024
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	112,439	$	—	$	112,439
Residential collateralized mortgage obligations	—		21,237		—		21,237
SBA loan pool securities	—		6,008		—		6,008
Municipal bonds	—		2,420		—		2,420
Corporate bonds	—		4,245		—		4,245
Total securities available-for-sale	—		146,349		—		146,349
Total assets measured at fair value on a recurring basis	$	—	$	146,349	$	—	$	146,349
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
March 31, 2025







Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—
Total liabilities measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—
December 31, 2024
Loans individually evaluated:
Business property	$	—	$	—	$	994	$	994


Total loans individually evaluated	—		—		994		994
Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	994	$	994
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 March 31,
($ in thousands)	2025		2024
Loans individually evaluated:

Business property	$	—	$	13





Net gains recognized	$	—	$	13

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

December 31, 2024

Loans individually evaluated:

Business property

994

Fair value of collateral

Selling Cost

The following table presents the estimated purchase price based on the formula set forth in the Option Agreement as if the Company meet all Threshold Conditions as of March 31, 2025:


	Dividend Rate at the Reset Date Immediately Preceding the Purchase Date
($ in thousands)	0.50%		1.25%		2.00%
Purchase price	$	4,869	$	12,173	$	19,476
Discount	64,272		56,968		49,665

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
March 31, 2025
Financial assets:
Interest-bearing deposits in other financial institutions	$	185,496	$	185,496	$	185,496	$	—	$	—
Securities available-for-sale	148,190		148,190		—		148,190		—
Loans held-for-sale	12,101		12,982		—		12,982		—
Net loans held-for-investment	2,695,668		2,690,704		—		—		2,690,704
Federal Home Loan Bank (“FHLB”) and other restricted stock	14,042		N/A		N/A		N/A		N/A
Accrued interest receivable	10,967		10,967		310		502		10,155
Financial liabilities:
Deposits	$	2,714,399	$	2,724,924	$	—	$	—	$	2,724,924

FHLB advances	30,000		30,000		—		30,000		—
Accrued interest payable	21,357		21,357		—		4		21,353
December 31, 2024
Financial assets:
Interest-bearing deposits in other financial institutions	$	171,692	$	171,692	$	171,692	$	—	$	—
Securities available-for-sale	146,349		146,349		—		146,349		—
Loans held-for-sale	6,292		6,783		—		6,783		—
Net loans held-for-investment	2,598,759		2,593,839		—		—		2,593,839
FHLB and other restricted stock	14,042		N/A		N/A		N/A		N/A
Accrued interest receivable	10,466		10,466		139		548		9,779
Financial liabilities:
Deposits	$	2,615,791	$	2,620,750	$	—	$	—	$	2,620,750
Other short-term borrowings	15,000		15,000		—		15,000		—

Accrued interest payable	24,407		24,407		—		2		24,405