Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

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, 2026
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	141,372	$	—	$	141,372
Residential collateralized mortgage obligations	—		18,001		—		18,001
SBA loan pool securities	—		3,855		—		3,855
Municipal bonds	—		2,452		—		2,452
Corporate bonds	—		4,797		—		4,797
Total securities available-for-sale	—		170,477		—		170,477
Total assets measured at fair value on a recurring basis	$	—	$	170,477	$	—	$	170,477
Total liabilities measured at fair value on a recurring basis	$	—	$	—	$	—	$	—
December 31, 2025
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	129,822	$	—	$	129,822
Residential collateralized mortgage obligations	—		18,762		—		18,762
SBA loan pool securities	—		4,193		—		4,193
Municipal bonds	—		2,484		—		2,484
Corporate bonds	—		4,748		—		4,748
Total securities available-for-sale	—		160,009		—		160,009
Total assets measured at fair value on a recurring basis	$	—	$	160,009	$	—	$	160,009
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, 2026
Loans individually evaluated:
Business property	$	—	$	—	$	508	$	508


Total loans individually evaluated	—		—		508		508


Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	508	$	508
Total liabilities measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—
December 31, 2025
Loans individually evaluated:
Business property	$	—	$	—	$	507	$	507


Total loans individually evaluated	—		—		507		507
Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	507	$	507
Total liabilities measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—

The following table presents gains (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)	2026		2025
Loans individually evaluated:

Business property	$	15	$	—





Net gains recognized	$	15	$	—

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

March 31, 2026

Loans individually evaluated:

Business property

508

Fair value of collateral

Selling cost

December 31, 2025

Loans individually evaluated:

Business property

507

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 met all Threshold Conditions as of March 31, 2026:


	Dividend Rate at the Reset Date Immediately Preceding the Purchase Date
($ in thousands)	0.50%		1.25%		2.00%
Purchase price	$	4,684	$	11,711	$	18,737
Discount	64,457		57,430		50,404

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, 2026
Financial assets:
Interest-bearing deposits in other financial institutions	$	242,618	$	242,618	$	242,618	$	—	$	—
Securities available-for-sale	170,477		170,477		—		170,477		—
Loans held-for-sale	3,604		3,794		—		3,794		—
Net loans held-for-investment	2,839,608		2,842,450		—		—		2,842,450
Federal Home Loan Bank (“FHLB”) and other restricted stock	14,978		N/A		N/A		N/A		N/A
Accrued interest receivable	10,952		10,952		317		606		10,029
Financial liabilities:
Deposits	$	2,887,980	$	2,896,103	$	—	$	—	$	2,896,103

FHLB advances	50,000		50,169		—		50,169		—
Accrued interest payable	22,332		22,332		—		5		22,327
December 31, 2025
Financial assets:
Interest-bearing deposits in other financial institutions	$	181,823	$	181,823	$	181,823	$	—	$	—
Securities available-for-sale	160,009		160,009		—		160,009		—
Loans held-for-sale	12,077		12,815		—		12,815		—
Net loans held-for-investment	2,787,019		2,783,879		—		—		2,783,879
FHLB and other restricted stock	14,978		N/A		N/A		N/A		N/A
Accrued interest receivable	10,669		10,669		126		599		9,944
Financial liabilities:
Deposits	$	2,795,412	$	2,805,598	$	—	$	—	$	2,805,598
Other short-term borrowings	—		—				—		—
FHLB advances	34,000		34,000		—		34,000		—
Accrued interest payable	25,228		25,228		—		4		25,224