XML 65 R48.htm IDEA: XBRL DOCUMENT
v3.22.4

Fair Value Disclosures (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Fair Value Disclosures [Abstract] |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized in the table below.
(Dollars in thousands) |  | Fair Value Measurements Using |  | Total Fair Value
December 31, 2022 |  | Level 1 |  | Level 2 |  | Level 3 |
Assets measured at fair value on a recurring basis |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |
Mortgage-backed securities, residential |  | $ | — |  |  | $ | 50,633 |  |  | $ | — |  |  | $ | 50,633 |
Asset-backed securities |  | — |  |  | 6,331 |  |  | — |  |  | 6,331 |
State and municipal |  | — |  |  | 13,438 |  |  | — |  |  | 13,438 |
CLO securities |  | — |  |  | 181,011 |  |  | — |  |  | 181,011 |
Corporate bonds |  | — |  |  | 1,263 |  |  | — |  |  | 1,263 |
SBA pooled securities |  | — |  |  | 1,828 |  |  | — |  |  | 1,828 |
|  | $ | — |  |  | $ | 254,504 |  |  | $ | — |  |  | $ | 254,504 |
Equity securities with readily determinable fair values |  |  |  |  |  |  |  |
Mutual fund |  | $ | 5,191 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,191 |
Loans held for sale |  | $ | — |  |  | $ | 5,641 |  |  | $ | — |  |  | $ | 5,641 |
Indemnification asset |  | $ | — |  |  | $ | — |  |  | $ | 3,896 |  |  | $ | 3,896 |
Revenue share asset |  | $ | — |  |  | $ | — |  |  | $ | 5,515 |  |  | $ | 5,515 |
Liabilities measured at fair value on a recurring basis |  |  |  |  |  |  |  |
Return of premium liability |  | $ | — |  |  | $ | — |  |  | $ | 575 |  |  | $ | 575 |
(Dollars in thousands) |  | Fair Value Measurements Using |  | Total Fair Value
December 31, 2021 |  | Level 1 |  | Level 2 |  | Level 3 |
Assets measured at fair value on a recurring basis |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |
Mortgage-backed securities, residential |  | $ | — |  |  | $ | 37,449 |  |  | $ | — |  |  | $ | 37,449 |
Asset-backed securities |  | — |  |  | 6,764 |  |  | — |  |  | 6,764 |
State and municipal |  | — |  |  | 26,825 |  |  | — |  |  | 26,825 |
CLO Securities |  | — |  |  | 106,634 |  |  | — |  |  | 106,634 |
Corporate bonds |  | — |  |  | 2,056 |  |  | — |  |  | 2,056 |
SBA pooled securities |  | — |  |  | 2,698 |  |  | — |  |  | 2,698 |
|  | $ | — |  |  | $ | 182,426 |  |  | $ | — |  |  | $ | 182,426 |
Equity securities with readily determinable fair values |  |  |  |  |  |  |  |
Mutual fund |  | $ | 5,504 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,504 |
Loans held for sale |  | $ | — |  |  | $ | 7,330 |  |  | $ | — |  |  | $ | 7,330 |
Indemnification asset |  | $ | — |  |  | $ | — |  |  | $ | 4,786 |  |  | $ | 4,786 |
Derivative financial instruments (cash flow hedges) |  |  |  |  |  |  |  |
Interest rate swap |  | $ | — |  |  | $ | 6,164 |  |  | $ | — |  |  | $ | 6,164 |
Reconciliation of Fair Value of Contingent Consideration | A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows:
(Dollars in thousands) | 2022 |  | 2021 |  | 2020
Beginning balance | $ | 4,786 |  |  | $ | 36,225 |  |  | $ | — |
Indemnification asset recognized in business combination | — |  |  | — |  |  | 30,959 |
Change in fair value of indemnification asset recognized in earnings | (890) |  |  | 4,194 |  |  | 5,266 |
Indemnification recognized | — |  |  | (35,633) |  |  | — |
Ending balance | $ | 3,896 |  |  | $ | 4,786 |  |  | $ | 36,225 |
A reconciliation of the opening balance to the closing balance of the fair value of the revenue share asset is as follows:
(Dollars in thousands) |  |  |  | 2022 |  |
Beginning balance |  |  |  | $ | — |  |  |
Revenue share asset recognized |  |  |  | 6,237 |  |  |
Change in fair value of revenue share asset recognized in earnings |  |  |  | (62) |  |  |
Revenue share payments received |  |  |  | (660) |  |  |
Ending balance |  |  |  | $ | 5,515 |  |  |
A reconciliation of the opening balance to the closing balance of the fair value of the return of premium liability is as follows:
(Dollars in thousands) |  | 2022
Beginning balance |  | $ | — |
Return of premium liability recognized in business combination |  | 708 |
Change in fair value of return of premium liability recognized in earnings |  | (35) |
Return of premium payments made |  | (98) |
Ending balance |  | $ | 575 |
Schedule of Fair Value of Assets Measured on Non-recurring Basis | Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at December 31, 2022 and 2021.
(Dollars in thousands) |  | Fair Value Measurements Using |  | Total Fair Value
December 31, 2022 |  | Level 1 |  | Level 2 |  | Level 3 |
Collateral dependent loans |  |  |  |  |  |  |  |
Commercial real estate |  | $ | — |  |  | $ | — |  |  | $ | 269 |  |  | $ | 269 |
1-4 family residential |  | — |  |  | — |  |  | 46 |  |  | 46 |
Commercial |  | — |  |  | — |  |  | 6,994 |  |  | 6,994 |
Factored receivables |  | — |  |  | — |  |  | 29,367 |  |  | 29,367 |
Consumer |  | — |  |  | — |  |  | — |  |  | — |
Equity investment without readily determinable fair value |  | 38,088 |  |  | — |  |  | — |  |  | 38,088 |
|  | $ | 38,088 |  |  | $ | — |  |  | $ | 36,676 |  |  | $ | 74,764 |
(Dollars in thousands) |  | Fair Value Measurements Using |  | Total Fair Value
December 31, 2021 |  | Level 1 |  | Level 2 |  | Level 3 |
Collateral dependent loans |  |  |  |  |  |  |  |
Commercial real estate |  | $ | — |  |  | $ | — |  |  | $ | 366 |  |  | $ | 366 |
1-4 family residential |  | — |  |  | — |  |  | 61 |  |  | 61 |
Commercial |  | — |  |  | — |  |  | 2,435 |  |  | 2,435 |
Factored receivables |  | — |  |  | — |  |  | 30,224 |  |  | 30,224 |
Consumer |  | — |  |  | — |  |  | 60 |  |  | 60 |
Other real estate owned (1): |  |  |  |  |  |  |  |
Commercial real estate |  | — |  |  | — |  |  | 7 |  |  | 7 |
Construction, land development, land |  | — |  |  | — |  |  | 63 |  |  | 63 |
|  | $ | — |  |  | $ | — |  |  | $ | 33,216 |  |  | $ | 33,216 |
(1) Represents the fair value of OREO that was adjusted subsequent to its initial classification as OREO.
Schedule of Estimated Fair Value of Company's Financial Assets and Financial Liabilities | The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis were as follows:
| December 31, 2022
| Carrying Amount |  | Fair Value Measurements Using |  | Total Fair Value
(Dollars in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 408,182 |  |  | $ | 408,182 |  |  | $ | — |  |  | $ | — |  |  | $ | 408,182 |
Securities - held to maturity | 4,077 |  |  | — |  |  | — |  |  | 5,476 |  |  | 5,476 |
Loans not previously presented, gross | 4,088,411 |  |  | 187,729 |  |  | — |  |  | 3,805,701 |  |  | 3,993,430 |
FHLB and other restricted stock | 6,252 |  |  | N/A |  | N/A |  | N/A |  | N/A
Accrued interest receivable | 21,977 |  |  | 21,977 |  |  | — |  |  | — |  |  | 21,977 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits | 4,171,336 |  |  | — |  |  | 4,159,695 |  |  | — |  |  | 4,159,695 |
Customer repurchase agreements | 340 |  |  | — |  |  | 340 |  |  | — |  |  | 340 |
Federal Home Loan Bank advances | 30,000 |  |  | — |  |  | 30,000 |  |  | — |  |  | 30,000 |
Subordinated notes | 107,800 |  |  | — |  |  | 104,400 |  |  | — |  |  | 104,400 |
Junior subordinated debentures | 41,158 |  |  | — |  |  | 42,721 |  |  | — |  |  | 42,721 |
Accrued interest payable | 2,830 |  |  | 2,830 |  |  | — |  |  | — |  |  | 2,830 |
| December 31, 2021
| Carrying Amount |  | Fair Value Measurements Using |  | Total Fair Value
(Dollars in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 383,178 |  |  | $ | 383,178 |  |  | $ | — |  |  | $ | — |  |  | $ | 383,178 |
Securities - held to maturity | 4,947 |  |  | — |  |  | — |  |  | 5,447 |  |  | 5,447 |
Loans not previously presented, gross | 4,834,426 |  |  | 142,962 |  |  | — |  |  | 4,685,058 |  |  | 4,828,020 |
FHLB and other restricted stock | 10,146 |  |  | N/A |  | N/A |  | N/A |  | N/A
Accrued interest receivable | 15,319 |  |  | 15,319 |  |  | — |  |  | — |  |  | 15,319 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits | 4,646,679 |  |  | — |  |  | 4,646,552 |  |  | — |  |  | 4,646,552 |
Customer repurchase agreements | 2,103 |  |  | — |  |  | 2,103 |  |  | — |  |  | 2,103 |
Federal Home Loan Bank advances | 180,000 |  |  | — |  |  | 180,000 |  |  | — |  |  | 180,000 |
Paycheck Protection Program Liquidity Facility | 27,144 |  |  | — |  |  | 27,144 |  |  | — |  |  | 27,144 |
Subordinated notes | 106,957 |  |  | — |  |  | 110,045 |  |  | — |  |  | 110,045 |
Junior subordinated debentures | 40,602 |  |  | — |  |  | 41,286 |  |  | — |  |  | 41,286 |
Accrued interest payable | 1,951 |  |  | 1,951 |  |  | — |  |  | — |  |  | 1,951 |

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration