| Fair Value Measurements |
NOTE 8 — Fair Value Measurements 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 orderly 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 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. For available-for-sale securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). Assets and liabilities measured at fair value on a recurring basis are summarized below: | | | | | | | | | | | | Fair Value Measurements Using | | | Quoted Prices
In Active
Markets For
Identical Assets | | Significant
Other
Observable
Inputs | | Significant
Unobservable
Inputs | | | (Level 1) | | (Level 2) | | (Level 3) | | | | (In thousands) | June 30, 2026 | | | | | | | | | | Assets | | | | | | | | | | Securities available-for-sale | | | | | | | | | | Mortgage-backed securities – agency | | $ | — | | $ | 81,219 | | $ | — | CMOs – agency | | | — | | | 158,927 | | | — | Total available-for-sale | | $ | — | | $ | 240,146 | | $ | — | | | | | | | | | | | December 31, 2025 | | | | | | | | | | Assets | | | | | | | | | | Securities available-for-sale | | | | | | | | | | Mortgage-backed securities – agency | | $ | — | | $ | 85,695 | | $ | — | CMOs – agency | | | — | | | 160,810 | | | — | Total available-for-sale | | $ | — | | $ | 246,505 | | $ | — |
There were no transfers between Level 1 and Level 2 during the three and six months ended June 30, 2026 and 2025. The following tables present the carrying amounts and fair values (represents exit price) of financial instruments not carried at fair value at June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | Fair Value Measurement at June 30, 2026, Using: | | | Carrying | | | | | | | | | | | | | | | Value | | (Level 1) | | (Level 2) | | (Level 3) | | Total | | | | (In thousands) | Financial Assets: | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 242,183 | | $ | 242,183 | | $ | — | | $ | — | | $ | 242,183 | Securities, held-to-maturity | | | 56,099 | | | — | | | 51,111 | | | — | | | 51,111 | Securities, restricted, at cost | | | 3,196 | | | N/A | | | N/A | | | N/A | | | N/A | Loans held for investment, net | | | 1,877,547 | | | — | | | — | | | 1,849,747 | | | 1,849,747 | Accrued interest receivable | | | 13,572 | | | — | | | 1,134 | | | 12,438 | | | 13,572 | | | | | | | | | | | | | | | | | Financial Liabilities: | | | | | | | | | | | | | | | | Time deposits | | | 5,772 | | | — | | | 5,717 | | | — | | | 5,717 | Demand and other deposits | | | 2,173,921 | | | 2,173,921 | | | — | | | — | | | 2,173,921 | Secured borrowings | | | 39 | | | — | | | — | | | 39 | | | 39 | Accrued interest payable | | | 1 | | | — | | | 1 | | | — | | | 1 |
| | | | | | | | | | | | | | | | | | Fair Value Measurement at December 31, 2025, Using: | | | Carrying | | | | | | | | Value | | (Level 1) | | (Level 2) | | (Level 3) | | Total | | | | (In thousands) | Financial Assets: | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 235,887 | | $ | 235,887 | | $ | — | | $ | — | | $ | 235,887 | Securities, held-to-maturity | | | 60,193 | | | — | | | 55,500 | | | — | | | 55,500 | Securities, restricted, at cost | | | 3,173 | | | N/A | | | N/A | | | N/A | | | N/A | Loans held for investment, net | | | 1,734,405 | | | — | | | — | | | 1,710,581 | | | 1,710,581 | Accrued interest receivable | | | 12,640 | | | — | | | 1,147 | | | 11,493 | | | 12,640 | | | | | | | | | | | | | | | | | Financial Liabilities: | | | | | | | | | | | | | | | | Time deposits | | | 6,172 | | | — | | | 6,146 | | | — | | | 6,146 | Demand and other deposits | | | 2,056,835 | | | 2,056,835 | | | — | | | — | | | 2,056,835 | Secured borrowings | | | 40 | | | — | | | — | | | 40 | | | 40 | Accrued interest payable | | | 1 | | | — | | | 1 | | | — | | | 1 |
|