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Fair Value Disclosures (Tables)
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):

    

    

Quoted Prices in

    

Significant

    

Significant

Active Markets

Other

Other

for Identical

Observable

Unobservable

Assets

Inputs

Inputs

Description

Fair Value

(Level 1)

(Level 2)

(Level 3)

June 30, 2020:

 

  

Assets:

 

  

Securities available-for-sale:

 

  

U.S. Government-sponsored enterprises (GSEs)

$

31,411

$

$

31,411

$

Municipal securities

 

88,169

 

 

88,169

 

Other debt securities

 

9,457

 

 

9,457

 

Mortgage-backed securities (GSEs)

 

90,594

 

 

90,594

 

Total securities available-for-sale

$

219,631

$

$

219,631

$

Liabilities:

 

  

Derivative financial instruments

$

7,090

$

$

7,090

$

December 31, 2019:

 

  

 

  

 

  

 

  

Assets:

 

  

 

  

 

  

 

  

Securities available-for-sale:

 

  

 

  

 

  

 

  

U.S. Government-sponsored enterprises (GSEs)

$

19,000

$

$

19,000

$

Municipal securities

 

64,391

 

 

64,391

 

Other debt securities

 

3,470

 

 

3,470

 

Mortgage-backed securities (GSEs)

 

91,487

 

 

91,487

 

Total securities available-for-sale

$

178,348

$

$

178,348

$

Liabilities:

 

  

 

  

 

  

 

  

Derivative financial instruments

$

3,446

$

3,446

Fair Value, Assets and Liabilities Measured on Non-Recurring Basis

    

    

Quoted Prices in

    

Significant

    

Significant

Active Markets

Other

Other

for Identical

Observable

Unobservable

Assets

Inputs

Inputs

Fair Value

(Level 1)

(Level 2)

(Level 3)

June 30, 2020:

 

  

 

  

 

  

 

  

Impaired loans

$

4,260

$

$

$

4,260

Other real estate owned

 

5,524

 

 

 

5,524

December 31, 2019:

 

  

 

  

 

  

 

  

Impaired loans

$

2,185

$

$

$

2,185

Other real estate owned

 

1,757

 

 

 

1,757

Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (dollars in thousands):

    

    

    

    

Weighted

Valuation

Significant Other

Average of

Fair Value

Technique

Unobservable Input

Input

June 30, 2020:

Impaired loans

$

4,260

 

Appraisal and cashflow

 

Appraisal and cashflow discounts

 

10

%

Other real estate owned

 

5,524

 

Appraisal

 

Appraisal discounts

 

28

%

December 31, 2019:

Impaired loans

$

2,185

 

Appraisal

 

Appraisal and cashflow discounts

 

22

%

Other real estate owned

 

1,757

 

Appraisal

 

Appraisal discounts

 

29

%

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments are as follows (in thousands):

Fair Value Measurements Using

    

Carrying

    

    

    

    

Estimated

Amount

Level 1

Level 2

Level 3

Fair Value

June 30, 2020:

Assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

399,467

 

$

399,467

 

$

 

$

$

399,467

Securities available-for-sale

 

219,631

 

 

219,631

 

 

219,631

Other investments

 

14,829

 

N/A

 

N/A

 

N/A

 

N/A

Loans, net and loans held for sale

 

2,398,360

 

 

 

2,385,657

 

2,385,657

Liabilities:

 

 

  

 

  

 

  

 

  

Noninterest-bearing demand deposits

 

645,650

 

 

645,650

 

 

645,650

Interest-bearing demand deposits

 

479,212

 

 

497,212

 

 

497,212

Money market and savings deposits

 

762,246

 

 

762,246

 

 

762,246

Time deposits

 

652,581

 

 

656,885

 

 

656,885

Borrowings

318,855

319,666

319,666

Subordinated debt

 

39,304

 

 

 

31,547

 

31,547

Derivative financial instruments

 

7,090

 

 

7,090

 

 

7,090

December 31, 2019:

    

    

    

    

    

Assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

183,971

 

$

183,971

 

$

 

$

$

183,971

Securities available-for-sale

 

178,348

 

 

178,348

 

 

178,348

Other investments

 

12,913

 

N/A

 

N/A

 

N/A

 

N/A

Loans, net and loans held for sale

 

1,893,005

 

 

 

1,879,825

 

1,879,825

Liabilities:

 

 

  

 

  

 

  

 

  

Noninterest-bearing demand deposits

 

364,155

 

 

364,155

 

 

364,155

Interest-bearing demand deposits

 

380,234

 

 

380,234

 

 

380,234

Money market and savings deposits

 

623,284

 

 

623,284

 

 

623,284

Time deposits

 

679,541

 

 

681,902

 

 

681,902

Borrowings

31,623

31,029

31,029

Subordinated debt

 

39,261

 

 

 

35,868

 

35,868

Derivative financial instruments

 

3,446

 

 

3,446

 

 

3,446