v3.26.1
FAIR VALUE ACCOUNTING
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE ACCOUNTING FAIR VALUE ACCOUNTING
ASC Topic 820-10, “Fair Value Measurements and Disclosures” establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The topic describes three levels of inputs that may be used to measure fair value:
Level 1- Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company 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 the Company’s assumptions about the factors that market participants would use in pricing an asset or liability.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the fair value measurement.
The fair value of securities available-for-sale is determined by obtaining market price quotes from independent third parties wherever such quotes are available (Level 1 inputs); or matrix pricing, which is a mathematical technique widely used in the industry 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). Where such quotes are not available, we utilize independent third party valuation analysis to support our own estimates and judgments in determining fair value (Level 3 inputs).
Assets Measured on a Recurring Basis
The following tables present the financial instruments measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025:
Fair
Value		Quoted Prices in
Active Markets
for Identical
Instruments
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
June 30, 2026
Investment securities:
U.S. government agency obligations$7,229 $— $7,229 $— 
Mortgage-backed securities63,988 — 63,988 — 
Corporate debt securities42,504 — 42,504 — 
Student loan asset-backed securities14,714 — 14,714 — 
Total investment securities128,435 — 128,435 — 
Equity Investments:
Farmer Mac equity securities 571 571 — — 
Preferred equity1,125 — — 1,125 
Equity investments measured at NAV(1)4,591 — — — 
Total equity investments6,287 571 — 1,125 
Total$134,722 $571 $128,435 $1,125 
December 31, 2025
Investment securities:
U.S. government agency obligations$10,773 $— $10,773 $— 
Mortgage-backed securities66,684 — 66,684 — 
Corporate debt securities40,682 — 40,682 — 
Student loan asset-backed securities15,964 — 15,964 — 
Total investment securities134,103 — 134,103 — 
Equity Investments:
Farmer Mac equity securities505 505 — — 
Preferred equity1,125 — — 1,125 
Equity investments measured at NAV(1)4,210 — — — 
Total equity investments5,840 505 — 1,125 
Total$139,943 $505 $134,103 $1,125 
(1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B.
At June 30, 2026 and December 31, 2025, the Company owned $1,125 preferred equity investments for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value.
There were no transfers in or out of Level 1, Level 2 or Level 3 fair value measurements relating to the available-for-sale securities above during the three and six month periods ended June 30, 2026 and June 30, 2025. There were no losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the three and six month periods ended June 30, 2026 and June 30, 2025.
Assets Measured on Nonrecurring Basis
The following tables present the financial instruments measured at fair value on a nonrecurring basis as of June 30, 2026 and December 31, 2025:
Carrying ValueQuoted Prices in
Active Markets
for Identical
Instruments
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
June 30, 2026
Foreclosed and repossessed assets, net$850 $— $— $850 
Collateral dependent loans15,013 — — 15,013 
Total$15,863 $— $— $15,863 
December 31, 2025
Foreclosed and repossessed assets, net$857 $— $— $857 
Collateral dependent loans10,360 — — 10,360 
Total$11,217 $— $— $11,217 
The fair value of foreclosed and repossessed assets was determined by obtaining market price valuations from independent third parties wherever such quotes were available for other collateral owned. The Company utilized independent third party appraisals to support the Company’s estimates and judgments in determining fair value for other real estate owned.
The fair value of collateral dependent loans with allowances was determined by obtaining independent third party appraisals and/or internally developed collateral valuations to support the Company’s estimates and judgments in determining the fair value of the underlying collateral supporting impaired loans.
The following table represents additional quantitative information about assets measured at fair value on a
recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine their fair value at
June 30, 2026 and December 31, 2025:
Fair
Value		Valuation Techniques (1)Significant Unobservable Inputs (2)Range
June 30, 2026
Foreclosed and repossessed assets, net$850 Appraisal valueEstimated costs to sell
10% - 15%
Collateral dependent loans$15,013 Appraisal value / Internal Collateral valuationsEstimated costs to sell
10% - 15%
December 31, 2025
Foreclosed and repossessed assets, net$857 Appraisal valueEstimated costs to sell
10% - 15%
Collateral dependent loans$10,360 Appraisal value / Internal Collateral valuationsEstimated costs to sell
10% - 15%
(1)     Fair value is generally determined through independent third-party appraisals of the underlying
collateral, which generally includes various level 3 inputs which are not observable.
(2)     The fair value basis of collateral dependent loans, and real estate owned may be adjusted to reflect management                                                                                             estimates of disposal costs including, but not limited to, real estate brokerage commissions, legal fees, and delinquent property taxes.
The table below represents what we would receive to sell an asset or what we would have to pay to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying value of restricted FRB and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the table below.
The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows:
June 30, 2026December 31, 2025
Valuation Method UsedCarrying
Amount		Estimated
Fair
Value		Carrying
Amount		Estimated
Fair
Value
Financial assets:
Cash and cash equivalents(Level I)$121,762 $121,762 $118,853 $118,853 
Securities available-for-sale “AFS”(Level II)128,435 128,435 134,103 134,103 
Securities held-to-maturity “HTM”(Level II)77,415 61,481 80,210 64,117 
Farmer Mac equity securities(Level I)571 571 505 505 
Preferred equity(Level III)1,125 1,125 1,125 1,125 
Equity investments valued at NAV(1)N/A4,591 N/A4,210 N/A
Other investments(Level II)12,485 12,485 12,506 12,506 
Loans receivable, net(Level III)1,357,076 1,343,743 1,317,924 1,297,841 
Loans held for sale - Residential mortgage(Level I)941 941 2,338 2,338 
Loans held for sale - SBA /FSA(Level II)— — 2,616 2,616 
Mortgage servicing rights(Level III)3,453 5,108 3,494 4,652 
Accrued interest receivable(Level I)6,180 6,180 6,126 6,126 
Financial liabilities:
Deposits (excluding demand deposits)(Level III)$895,494 $895,099 $891,747 $891,663 
FHLB advances(Level II)— — — — 
Other borrowings(Level II)51,885 50,950 51,804 49,988 
Accrued interest payable(Level I)3,126 3,126 3,680 3,680 
(1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B.