v3.26.1
Fair Value
 12 Months Ended
Dec. 31, 2025
Fair Value [Abstract]  
Fair Value
Note 9 – Fair Value
 
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an ordinary transaction between market participants on the measurement date.  There are three levels of inputs that may be used to measure fair values:

Level 1:
Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2:
Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3:
Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
 
The Company used the following methods and significant assumptions to estimate fair value:

The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Assets and Liabilities Measured on a Recurring Basis
 
Assets and liabilities measured at fair value on a recurring basis are summarized below:
 
   
Fair Value Measurement
  
   
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
    
Significant
Other
Observable
Inputs
(Level 2)
    
Significant
Unobservable
Inputs
(Level 3)
    
Total
  
   
(In thousands)
  
At December 31, 2025:
                        
Securities available-for-sale:
                        
Federal agency mortgage-backed securities
   $ –    
$
114,430
    
$
–
    
$
114,430
  
Federal agency CMOs
     –       69,457       –       69,457  
Federal agency debt
    –       28,413       –       28,413  
Municipal bonds
     –      
4,522
       –      
4,522
  
U.S. Treasuries
    
4,987
      
–
      
–
      
4,987
  
SBA pools
     –       8,275       –       8,275  
Asset-backed securities
     –       9,269       –       9,269  
Corporate bonds
     –       17,482       –       17,482  
Interest rate swap asset
     –       105       –       105  
Interest rate swap liability
     –       (105 )     –       (105 )
                                 
At December 31, 2024:
                                
Securities available-for-sale:
                                
Federal agency mortgage-backed securities
  $ –    
$
53,029
    
$
–
    
$
53,029
  
Federal agency CMOs
    –       20,058       –       20,058  
Federal agency debt
    
–
      
40,034
      
–
      
40,034
  
Municipal bonds
     –       4,388       –       4,388  
U.S. Treasuries
     77,190       –       –       77,190  
SBA pools
     –       9,163       –       9,163  
 
There were no transfers between Level 1, Level 2, or Level 3 during the years ended December 31, 2025 or 2024.

Assets Measured on a Nonrecurring Basis

The Company measures certain assets at fair value on a nonrecurring basis and the following is a general description of the methods used to value such assets.

Collateral-Dependent Loans - The fair value of collateral-dependent loans with specific allocations of the allowance for loan losses is generally based on recent appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying loans and result in a Level 3 classification.

The table below presents assets measured at fair value on a nonrecurring basis at December 31, 2025.  At December 31, 2024, the Company did not have any assets or liabilities carried at fair value on a nonrecurring basis.

   
Fair Value Measurement
  
   
Quoted Prices in Active Markets for Identical Assets (Level 1)
    
Significant Other Observable Inputs (Level 2)
    
Significant Unobservable Inputs (Level 3)
    
Total
  
   
(In thousands)
  
At December 31, 2025:
                        
Collateral dependent loans:
Real estate:
                        
Single-family
   $ -     $ -     $ 424     $ 424  
Multi-family
     -       -       2,094       2,094  
Construction
     -       -       7,435       7,435  
Commercial - other
     -       -       138       138  

The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at December 31, 2025.

   
Fair Value
  
Valuation
Technique(s)
  
Unobservable Input(s)
  
Range
  
   
(In thousands)
At December 31, 2025:
                  
Collateral dependent loans:
Real estate:
                  
Single-family
   $ 424   Market approach
  Adjustments to market data
    5% - 10 %
Multi-family
     2,094  
Market approach
  
Adjustments to market data
    
5% - 10
%
Construction
     7,435   Market approach   Adjustments to market data     5% - 10 %
Commercial - other
     138  
Market approach
  
Adjustments to market data
    
5% - 10
%

Fair Values of Financial Instruments
 
The carrying amounts and estimated fair values of financial instruments as of the periods indicated were as follows:
 
   
Carrying
    
Fair Value Measurements at December 31, 2025
  
   
Value
    
Level 1
    
Level 2
    
Level 3
    
Total
  
   
(In thousands)
  
Financial Assets:
                              
Cash and cash equivalents
  
$
10,507
    
$
10,507
    
$
–
    
$
–
    
$
10,507
  
Securities available-for-sale
    
256,835
      
4,987
      
251,848
      
–
      
256,835
  
Loans receivable held for investment
    
1,016,540
      
–
      
–
      
1,002,049
      
1,002,049
  
Accrued interest receivable
    
5,999
      
36
      
800
      
5,163
      
5,999
  
Interest rate swaps
     105       –       105       –       105  
Financial Liabilities:
                                        
Non interest bearing deposits
   $ 105,835     $ –     $ 105,835     $ –     $ 105,835  
Interest bearing deposits
     512,034       –       512,034       –       512,034  
Time deposits
     299,734       –       299,434       –       299,434  
FHLB advances
    
72,000
       –      
72,019
      
–
      
72,019
  
Securities sold under agreements to repurchase
    
80,773
       –      
80,773
      
–
      
80,773
  
Accrued interest payable
    
1,633
      
–
      
1,633
      
–
      
1,633
  
Interest rate swaps
     105       –       105       –       105  

   
Carrying
    
Fair Value Measurements at December 31, 2024
  
   
Value
    
Level 1
    
Level 2
    
Level 3
    
Total
  
   
(In thousands)
  
Financial Assets:
                              
Cash and cash equivalents
  
$
61,365
    
$
61,365
     $ –     $ –    
$
61,365
  
Securities available-for-sale
    
203,862
      
77,190
      
126,672
       –      
203,862
  
Loans receivable held for investment
     999,956       –       –       973,183       973,183  
Accrued interest receivable
    
5,001
      
5,001
      
–
      
–
      
5,001
  
Bank owned life insurance
    
3,321
      
3,321
      
–
      
–
      
3,321
  
Financial Liabilities:
                                        
Deposits
  
$
745,399
     $ –    
$
669,695
     $ –    
$
669,695
  
FHLB advances
    
226,888
       –      
227,150
       –      
227,150
  
Securities sold under agreements to repurchase
    
66,610
       –       66,070      
–
      
66,070
  
Accrued interest payable
    
1,349
       –      
1,349
      
–
      
1,349
  

The fair value of financial assets and liabilities was measured using an exit price notion. Although the exit price notion represents the value that would be received to sell an asset or paid to transfer a liability, the actual price received for a sale of assets or paid to transfer liabilities could be different from exit price disclosed.