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