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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Summary of Estimated Fair Values of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated:

			September 30, 2022												Fair Value Measurements Using
			Carrying Value						Estimated Fair Value						Level 1						Level 2						Level 3
			(dollars in thousands; unaudited)
Financial assets
Cash and due from banks			$	37,482					$	37,482					$	37,482					$	—					$	—
Interest earning deposits with other banks			373,246						373,246						373,246						—						—
Investment securities			98,871						98,753						97,316						1,437						—
Other investments			10,581						10,581						—						8,009						2,572
Loans held for sale			43,314						43,314						—						43,314
Loans receivable			2,507,889						2,548,820						—						—						2,548,820
Accrued interest receivable			13,114						13,114						—						13,114						—
Financial liabilities
Deposits			$	2,837,066					2,836,117						$	—					$	2,836,117					$	—
Subordinated debt			24,343						21,643						—						21,643						—
Junior subordinated debentures			3,588						3,464						—						3,464						—
Accrued interest payable			153						153						—						153						—

			December 31, 2021												Fair Value Measurements Using
			Carrying Value						Estimated Fair Value						Level 1						Level 2						Level 3
			(dollars in thousands; unaudited)
Financial assets
Cash and due from banks			$	14,496					$	14,496					$	14,496					$	—					$	—
Interest earning deposits with other banks			798,665						798,665						798,665						—						—
Investment securities			36,623						36,675						34,998						1,677						—
Other investments			8,478						8,478						—						6,156						2,322
Loans receivable, net			1,714,103						1,686,124						—						—						1,686,124
Accrued interest receivable			8,105						8,105						—						8,105						—
Financial liabilities
Deposits			$	2,363,787					$	2,363,624					$	—					$	2,363,624					$	—
FHLB advances			24,999						24,447						—						24,447						—
Subordinated debt			24,288						21,891						—						21,891						—
Junior subordinated debentures			3,586						2,771						—						2,771						—
Accrued interest payable			357						357						—						357						—

Summary of Assets Measured at Fair Value on Recurring Basis

Items measured at fair value on a recurring basis – The following fair value hierarchy table presents information about the Company’s assets that are measured at fair value on a recurring basis at the dates indicated:

			Level 1						Level 2						Level 3						Total Fair Value
			(dollars in thousands; unaudited)
September 30, 2022
Available-for-sale
U.S. Treasury securities			$	97,316					$	—					$	—					$	97,316
U.S. Agency collateralized mortgage obligations			—						1						—						1
U.S. Agency residential mortgage-backed securities			—						54						—						54
Municipals			—						250						—						250
			$	97,316					$	305					$	—					$	97,621
December 31, 2021
Available-for-sale
U.S. Treasury securities			$	34,998					$	—					$	—					$	34,998
U.S. Agency collateralized mortgage obligations			—						70						—						70
U.S. Agency residential mortgage-backed securities			—						3						—						3
Municipals			—						256						—						256
			$	34,998					$	329					$	—					$	35,327

Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

Items measured at fair value on a nonrecurring basis – The following table presents financial assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy of the fair value measurements for those assets at the dates indicated:

			Level 1						Level 2						Level 3						Total Fair Value
			(dollars in thousands; unaudited)
September 30, 2022
Impaired loans			$	—					$	—					$	7,061					$	7,061
Equity securities															2,572						2,572
Total			$	—					$	—					$	9,633					$	9,633
December 31, 2021
Impaired loans			$	—					$	—					$	221					$	221
Equity securities															2,322						2,322
Total			$	—					$	—					$	2,543					$	2,543

Summary of Carrying Value of Equity Securities Without Readily Determinable Fair Values

The following table presents the carrying value of equity securities without readily determinable fair values, as of September 30, 2022, with adjustments recorded during the periods presented for those securities with observable price changes, if applicable. These equity securities are included in other investments on the balance sheet.

						For the Three Months Ended September 30,												For the Nine Months Ended September 30,
(dollars in thousands; unaudited)						2022						2021						2022						2021
Carrying value, beginning of period						$	2,672					$	850					$	2,322					$	850
Purchases						—						—						350						—
Net change recognized in earnings						(100)						1,472						(100)						1,472
Carrying value, end of period						$	2,572					$	2,322					$	2,572					$	2,322

Summary of Assets and Liabilities Classified as Level 3 and Measured at Fair Value on Nonrecurring Basis

The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at the dates indicated:

(unaudited)

Valuation Technique

Unobservable Inputs

September 30, 2022 Weighted Average Rate

December 31, 2021 Weighted Average Rate

Impaired loans

Collateral valuations

Discount to appraised value

8.0%

8.0%

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Tabular disclosure of investment in equity security without readily determinable fair value.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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-Subparagraph (a)
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