v3.26.1
Fair Value
 6 Months Ended
Jun. 30, 2026
Fair Value [Abstract]  
Fair Value
NOTE 8 – 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 June 30, 2026
                        
Securities available-for-sale:
                        
Federal agency mortgage-backed securities
  
$
-
    
$
153,732
    
$
-
    
$
153,732
  
Federal agency CMOs
    
-
      
98,972
      
-
      
98,972
  
Federal agency debt
    
-
      
23,684
      
-
      
23,684
  
Municipal bonds
    
-
      
4,519
      
-
      
4,519
  
SBA pools
    
-
      
7,605
      
-
      
7,605
  
Asset-backed securities
    
-
      
8,578
      
-
      
8,578
  
Corporate bonds
    
-
      
29,940
      
-
      
29,940
  
 
                                
Interest rate swap asset
    
-
      
203
      
-
      
203
  
Interest rate swap liability
    
-
      
(203
)
    
-
      
(203
)
                                 
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
)
There were no transfers between Level 1, Level 2, or Level 3 during the three or six months ended June 30, 2026 or 2025.

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 credit 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.

   
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 June 30, 2026:
                        
Collateral dependent loans:
                        
Real Estate:
                        
Single-family
  
$
-
    
$
-
    
$
424
      
424
  
Multi-family
    
-
      
-
      
1,759
      
1,759
  
Construction
    
-
      
-
      
7,435
      
7,435
  
Commercial - other
    
-
      
-
      
46
      
46
  

The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at June 30, 2026.

   
Fair Value
  
Valuation Technique(s)
  
Unobservable Input(s)
  
Range
  
   
(In thousands)
At June 30, 2026:
                  
Collateral dependent loans:
                  
Real Estate:
                  
Single-family
  
$
424
  
Market approach
  
Adjustments to market data
    
5% - 10
%
Multi-family
    
1,759
  
Market approach
  
Adjustments to market data
    
5% - 10
%
Construction
    
7,435
  
Market approach
  
Adjustments to market data
    
5% - 10
%
Commercial - other
    
46
  
Market approach
  
Adjustments to market data
    
5% - 10
%
The table below presents assets measured 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 following tables present the carrying amount, fair value, and level within the fair value hierarchy of the Company’s financial instruments as of June 30, 2026 and December 31, 2025.

         
Fair Value Measurements at June 30, 2026
  
   
Carrying Value
    
Level 1
    
Level 2
    
Level 3
    
Total
  
   
(In thousands)
  
Financial Assets:
                              
Cash and cash equivalents
  
$
48,905
    
$
48,905
    
$
-
    
$
-
    
$
48,905
  
Securities available-for-sale
    
327,030
      
-
      
327,030
      
-
      
327,030
  
Loans receivable held for investment
    
1,126,539
      
-
      
-
      
1,085,985
      
1,085,985
  
Accrued interest receivable
    
6,746
      
12
      
1,178
      
5,556
      
6,746
  
Interest rate swaps
    
203
      
-
      
203
      
-
      
203
  
                                         
Financial Liabilities:
                                        
Non-interest-bearing deposits
  
$
100,883
    
$
-
    
$
100,883
    
$
-
    
$
100,883
  
Interest-bearing demand deposits
    
654,648
      
-
      
654,648
      
-
      
654,648
  
Time deposits
    
359,120
      
-
      
358,556
      
-
      
358,556
  
Borrowings
    
94,000
      
-
      
93,985
      
-
      
93,985
  
Securities sold under agreements to repurchase
    
81,928
      
-
      
81,928
      
-
      
81,928
  
Accrued interest payable
    
1,669
      
-
      
1,669
      
-
      
1,669
  
Interest rate swaps
    
203
      
-
      
203
      
-
      
203
  

         
Fair Value Measurements at December 31, 2025
  
   
Carrying 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 demand deposits
  
$
105,835
    
$
-
    
$
105,835
    
$
-
    
$
105,835
  
Interest-bearing demand deposits
    
512,034
      
-
      
512,034
      
-
      
512,034
  
Time deposits
    
299,734
      
-
      
299,434
      
-
      
299,434
  
FHLB borrowings
    
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
  
In accordance with ASC 820, 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.