Fair Value (Tables)
|
9 Months Ended |
Sep. 30, 2022 |
|---|
| Fair Value Disclosures [Abstract] |
|
| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
The Company has categorized its financial instruments measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value of Financial Instruments | | | | | | | | | | (in thousands) | | | | | | | | | | September 30, 2022 | | Total | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Investment securities available for sale | | | | | | | | | | U.S. Treasuries | | $ | 214,940 | | | $ | 214,940 | | | $ | — | | | $ | — | | | | | | | | | | | | Municipal | | 8,087 | | | — | | | 8,087 | | | — | | | Corporate | | 4,648 | | | — | | | 4,648 | | | — | | | Asset-backed securities | | 8,222 | | | — | | | 8,222 | | | — | | | Mortgage-backed securities | | 33,723 | | | — | | | 33,723 | | | — | | | Total | | $ | 269,620 | | | $ | 214,940 | | | $ | 54,680 | | | $ | — | | | Marketable equity securities | | $ | 232 | | | $ | 232 | | | $ | — | | | $ | — | | | Loans held for sale | | $ | 6,875 | | | $ | — | | | $ | 6,875 | | | $ | — | | | Derivative assets | | $ | 44 | | | $ | — | | | $ | 44 | | | $ | — | | | Derivative liabilities | | $ | 31 | | | $ | — | | | $ | 31 | | | $ | — | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | | | | | | | | | | Investment securities available for sale | | | | | | | | | | U.S. Treasuries | | $ | 131,001 | | | $ | 131,001 | | | $ | — | | | $ | — | | | | | | | | | | | | Municipal | | 10,474 | | | — | | | 10,474 | | | — | | | Corporate | | 4,934 | | | — | | | 4,934 | | | — | | | Asset-backed securities | | 10,140 | | | — | | | 10,140 | | | — | | | Mortgage-backed securities | | 27,906 | | | — | | | 27,906 | | | — | | | Total | | $ | 184,455 | | | $ | 131,001 | | | $ | 53,454 | | | $ | — | | | Marketable equity securities | | $ | 245 | | | $ | 245 | | | $ | — | | | $ | — | | | Loans held for sale | | $ | 15,989 | | | $ | — | | | $ | 15,989 | | | $ | — | | | Derivative assets | | $ | 34 | | | $ | — | | | $ | 34 | | | $ | — | | | Derivative liabilities | | $ | 16 | | | $ | — | | | $ | 16 | | | $ | — | |
|
| Schedule of Fair Value of Loans Held For Sale |
The following table reflects the difference between the fair value carrying amount of loans held for sale, measured at fair value under FASB ASC 825-10, and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity: | | | | | | | | | | | | | | | | Fair Value of Loans Held for Sale | | | | | | (in thousands) | | September 30, 2022 | | December 31, 2021 | | Aggregate fair value | | $ | 6,875 | | | $ | 15,989 | | | Contractual principal | | 6,237 | | | 14,504 | | | Difference | | $ | 638 | | | $ | 1,485 | |
|
| Fair Value Measurements, Nonrecurring |
The Company has categorized its impaired loans and foreclosed real estate as follows: | | | | | | | | | | | | | | | | Fair Value of Impaired Loans and Foreclosed Real Estate | | | | (in thousands) | | September 30, 2022 | | December 31, 2021 | Impaired loans | | | | | | | | | | | | | | | Level 3 inputs | | $ | 8,261 | | | $ | 11,121 | | | Total | | $ | 8,261 | | | $ | 11,121 | | | | | | | Foreclosed real estate | | | | | | | | | | | | | | | | Level 3 inputs | | $ | — | | | $ | 86 | | | Total | | $ | — | | | $ | 86 | |
|
| Fair Value Measurement Inputs and Valuation Techniques |
The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at September 30, 2022 and December 31, 2021: | | | | | | | | | | | | | | | | | | | Unobservable Inputs | | | | | Valuation Technique | | Unobservable Inputs | | Range of Inputs | | | | | Impaired Loans | Appraised Value/Discounted Cash Flows | | Discounts to appraisals or cash flows for estimated holding and/or selling costs | | 11 to 25% | | Foreclosed Real Estate | Appraised Value/Comparable Sales | | Discounts to appraisals for estimated holding and/or selling costs | | 11 to 25% |
|
| Fair Value Measurements, Recurring and Nonrecurring |
| | | | | | | | | | | | | | | | | | | | | | | | | Fair Value of Selected Financial Instruments | | | | | | | | | September 30, 2022 | | December 31, 2021 | | (in thousands) | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | Financial assets | | | | | | | | | Level 1 | | | | | | | | | Cash and due from banks | $ | 14,774 | | | $ | 14,774 | | | $ | 42,914 | | | $ | 42,914 | | | Interest bearing deposits at other financial institutions | 20,867 | | | 20,867 | | | 136,824 | | | 136,824 | | | Marketable equity securities | 232 | | | 232 | | | 245 | | | 245 | | | Federal funds sold | 1,421 | | | 1,421 | | | 3,657 | | | 3,657 | | | Level 3 | | | | | | | | | | | | | | | | Loans receivable, net (1) | $ | 1,624,572 | | | $ | 1,572,842 | | | $ | 1,607,086 | | | $ | 1,598,228 | | | | | | | | | | | Restricted investments | 3,627 | | | 3,627 | | | 3,498 | | | 3,498 | | | | | | | | | | | Financial liabilities | | | | | | | | | Level 1 | | | | | | | | | Noninterest bearing deposits | $ | 806,033 | | | $ | 806,033 | | | $ | 787,650 | | | $ | 787,650 | | | | | | | | | | | Level 3 | | | | | | | | | Interest bearing deposits | $ | 931,558 | | | $ | 931,882 | | | $ | 1,009,487 | | | $ | 1,011,121 | | | FHLB advances and other borrowed funds | 34,062 | | | 31,116 | | | 34,062 | | | 34,263 | |
________________________(1) Includes SBA-PPP loans and portfolio loans.
|