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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 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:

			December 31, 2022												Fair Value Measurements Using
			Carrying Value						Estimated Fair Value						Level 1						Level 2						Level 3
			(dollars in thousands)
Financial assets
Cash and due from banks			$	32,722					$	32,722					$	32,722					$	—					$	—
Interest earning deposits with other banks			309,417						309,417						309,417						—						—
Investment securities			98,353						98,233						97,015						1,218						—
Other investments			10,555						10,555						—						7,983						2,572
Loans receivable			2,627,256						2,580,183						—						—						2,580,183
Accrued interest receivable			17,815						17,815						—						17,815						—
Financial liabilities
Deposits			$	2,817,521					$	2,816,602					$	—					$	2,816,602					$	—
Subordinated debt			43,999						42,743						—						42,743						—
Junior subordinated debentures			3,588						3,484						—						3,484						—
Accrued interest payable			684						684						—						684						—

_______________________________________

			December 31, 2021												Fair Value Measurements Using
			Carrying Value						Estimated Fair Value						Level 1						Level 2						Level 3
			(dollars in thousands)
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)
December 31, 2022
Available-for-sale
U.S. Treasury securities			$	97,015					$	—					$	—					$	97,015
U.S. Agency collateralized mortgage obligations			—						51						—						51
U.S. Agency residential mortgage-backed securities			—						1						—						1
Municipals			—						250						—						250
			$	97,015					$	302					$	—					$	97,317
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)
December 31, 2022
Impaired loans			$	—					$	—					$	7,080					$	7,080
Equity securities															2,572						2,572
Total			$	—					$	—					$	9,652					$	9,652
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 shows the activity in equity investments without a readily determinable fair value for the dates shown:

			For the Twelve Months Ended December 31,
(dollars in thousands)			2022						2021
Carrying value, beginning of period			$	2,322					$	850
Purchases			350						—
Observable price change			(100)						1,472
Carrying value, end of period			$	2,572					$	2,322

The following table presents the carrying value of equity securities without readily determinable fair values, as of December 31, 2022 and 2021, 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 Year Ended December 31,
(dollars in thousands)						2022						2021
Carrying value, beginning of period						$	2,322					$	850
Purchases						350						—
Observable price change						(100)						1,472
Carrying value, end of period						$	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

December 31, 2022 Weighted Average Rate

December 31, 2021 Weighted Average Rate

Impaired loans

Collateral valuations

Discount to appraised value

8.0%

8.0%

X

- Definition

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
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-Subparagraph (a)
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