Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 are summarized below:



	Fair Value Measure on a Recurring Basis
($ in thousands)	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2026
Assets:
AFS debt securities:
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	34,422	$	—	$	34,422	$	—
Residential collateralized mortgage obligations	162,275		—		162,275		—
Municipal securities - tax exempt	5,809		—		5,809		—
Equity Investments:
Mutual fund - CRA qualified	3,777		3,777		—		—
Derivative assets:
Interest rate products	142		—		142		—
Liabilities:
Derivative liabilities:
Interest rate products	339		—		339		—

December 31, 2025
Assets:
AFS debt securities:
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	32,694	$	—	$	32,694	$	—
Residential collateralized mortgage obligations	154,463		—		154,463		—
Municipal securities - tax exempt	5,628		—		5,628		—
Equity Investments:
Mutual fund - CRA qualified	3,757		3,757		—		—


Liabilities:
Derivative liabilities:
Interest rate products	888		—		888		—

Schedule of Fair Value Hierarchy and Fair Value of Assets that Were Still Held and Had Fair Value Adjustments Measured On a Nonrecurring Basis

The following table presents the fair value hierarchy and fair value of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of June 30, 2026 and December 31, 2025:



	Fair Value Measure on a Nonrecurring Basis
($ in thousands)	Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2026
Collateral-dependent loans:
CRE	$	1,084	$	—	$	—	$	1,084
SBA—real estate	4,434		—		—		4,434




Total	$	5,518	$	—	$	—	$	5,518

December 31, 2025
Collateral-dependent loans:
CRE	$	450	$	—	$	—	$	450
SBA—real estate	3,330		—		—		3,330



Total	$	3,780	$	—	$	—	$	3,780
Total

Schedule of Increase (Decrease) In Value of Certain Assets Held at End of Respective Reporting Periods Presented for Which a Nonrecurring Fair Value Adjustment

The following table presents the increase (decrease) in the fair value of certain assets held at the end of the reporting periods presented for which a nonrecurring fair value adjustment was recognized during the respective periods:



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2026		2025		2026		2025
Collateral-dependent loans:
CRE	$	(17)	$	—	$	(21)	$	—
SBA—real estate	(604)		(160)		(877)		113



Total	$	(621)	$	(160)	$	(898)	$	113

Schedule of Information about Significant Unobservable Inputs Utilized in Company's Nonrecurring Level 3 Fair Value Measurements

The following table presents information about significant unobservable inputs utilized in the Company’s nonrecurring Level 3 fair value measurements as of June 30, 2026 and December 31, 2025:

($ in thousands)

Fair Value
Measurements
(Level 3)

Valuation
Techniques

Unobservable
Inputs

Input
Value

June 30, 2026

Collateral-dependent loans:

4,301

Fair value of collateral

Selling cost

8.5%

1,217

Fair value of collateral

Selling cost and Discount

28.5%

December 31, 2025

Collateral-dependent loans:

2,383

Fair value of collateral

Selling cost

8.5%

1,397

Fair value of collateral

Selling cost and Discount

28.5%

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value

The carrying amounts and estimated fair values of financial instruments that are not carried at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 are as follows. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheets:



	June 30, 2026
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	175,051	$	175,051	$	—	$	—	$	175,051
Loans held for sale	21,305		—		23,054		—		23,054
Net loans	2,230,961		—		—		2,255,450		2,255,450
Accrued interest receivable, net	10,172		89		861		9,222		10,172
Other investments:
FHLB and PCBB stock	14,938		N/A		N/A		N/A		N/A
Time deposits placed	109		—		109		—		109

Financial liabilities:
Deposits	2,368,339		—		2,368,423		—		2,368,423
FHLB advances	75,000		—		80,443		—		80,443
Subordinated note, net	24,629		—		26,416		—		26,416
Accrued interest payable	15,949		—		15,949		—		15,949



	December 31, 2025
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Fair Value
Financial assets:
Cash and cash equivalents	$	167,311	$	167,311	$	—	$	—	$	167,311
Loans held for sale	11,443		—		12,267		—		12,267
Net loans	2,165,694		—		—		2,243,772		2,243,772
Accrued interest receivable, net	10,482		7		1,708		8,767		10,482
Other investments:
FHLB and PCBB stock	13,346		N/A		N/A		N/A		N/A
Time deposits placed	105		—		105		—		105

Financial liabilities:
Deposits	2,280,547		—		2,283,339		—		2,283,339
FHLB advances	75,000		—		75,792		—		75,792
Subordinated note, net	24,586		—		24,845		—		24,845
Accrued interest payable	14,595		—		14,595		—		14,595