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Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Measurement

Summary of balances of the assets and liabilities measured at fair value on a recurring basis

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:


		September 30, 2023
(dollars in thousands)		Level 1			Level 2			Level 3			Total
Fair Value of Financial Assets:
Securities Available for Sale:
U.S. Treasury Securities		$	2,864		$	—		$	—		$	2,864
Municipal Bonds			—			122,497			—			122,497
Mortgage-Backed Securities			—			210,375			—			210,375
Corporate Securities			—			121,717			—			121,717
SBA Securities			—			19,966			—			19,966
Asset-Backed Securities			—			75,657			—			75,657
Interest Rate Caps			—			23,006			—			23,006
Interest Rate Swaps			—			21,101			—			21,101
Total Fair Value of Financial Assets		$	2,864		$	594,319		$	—		$	597,183
Fair Value of Financial Liabilities:
Interest Rate Swaps		$	—		$	9,962		$	—		$	9,962
Total Fair Value of Financial Liabilities		$	—		$	9,962		$	—		$	9,962


		December 31, 2022
(dollars in thousands)		Level 1			Level 2			Level 3			Total
Fair Value of Financial Assets:
Securities Available for Sale:
U.S. Treasury Securities		$	2,580		$	—		$	—		$	2,580
Municipal Bonds			—			131,354			—			131,354
Mortgage-Backed Securities			—			237,784			—			237,784
Corporate Securities			—			109,827			—			109,827
SBA Securities			—			20,877			—			20,877
Asset-Backed Securities			—			46,191			—			46,191
Interest Rate Caps			—			19,406			—			19,406
Interest Rate Swaps			—			18,717			—			18,717
Total Fair Value of Financial Assets		$	2,580		$	584,156		$	—		$	586,736
Fair Value of Financial Liabilities:
Interest Rate Swaps		$	—		$	9,542		$	—		$	9,542
Total Fair Value of Financial Liabilities		$	—		$	9,542		$	—		$	9,542

Summary of net impairment losses related to nonrecurring fair value measurements of certain asset

The following tables present net impairment losses related to nonrecurring fair value measurements of certain assets at September 30, 2023 and December 31, 2022:


		September 30, 2023
(dollars in thousands)		Level 1			Level 2			Level 3			Loss
Individually Evaluated Loans		$	—		$	175		$	—		$	179
Totals		$	—		$	175		$	—		$	179


		December 31, 2022
(dollars in thousands)		Level 1			Level 2			Level 3			Loss
Impaired Loans		$	—		$	96		$	—		$	71
Totals		$	—		$	96		$	—		$	71

Summary of carrying amount and estimated fair values of financial instruments

The following tables present the carrying amounts and estimated fair values of financial instruments at September 30, 2023 and December 31, 2022:


		September 30, 2023
					Fair Value Hierarchy
		Carrying												Estimated
(dollars in thousands)		Amount			Level 1			Level 2			Level 3			Fair Value
Financial Assets:
Cash and Due From Banks		$	124,358		$	124,358		$	—		$	—		$	124,358
Bank-Owned Certificates of Deposit			1,225			—			1,210			—			1,210
Securities Available for Sale			553,076			2,864			550,212			—			553,076
FHLB Stock, at Cost			17,056			—			17,056			—			17,056
Loans, Net			3,664,464			—			3,522,379			—			3,522,379
Accrued Interest Receivable			15,182			—			15,182			—			15,182
Interest Rate Caps			23,006			—			23,006			—			23,006
Interest Rate Swaps			21,101			—			21,101			—			21,101

Financial Liabilities:
Deposits		$	3,675,509		$	—		$	3,653,876		$	—		$	3,653,876
Notes Payable			13,750			—			13,771			—			13,771
FHLB Advances			294,500			—			292,436			—			292,436
Subordinated Debentures			79,192			—			71,794			—			71,794
Accrued Interest Payable			3,816			—			3,816			—			3,816
Interest Rate Swaps			9,962			—			9,962			—			9,962


		December 31, 2022
					Fair Value Hierarchy
		Carrying												Estimated
(dollars in thousands)		Amount			Level 1			Level 2			Level 3			Fair Value
Financial Assets:
Cash and Due From Banks		$	87,043		$	87,043		$	—		$	—		$	87,043
Bank-Owned Certificates of Deposit			1,181			—			1,173			—			1,173
Securities Available for Sale			548,613			2,580			546,033			—			548,613
FHLB Stock, at Cost			19,606			—			19,606			—			19,606
Loans, Net			3,512,157			—			3,314,190			—			3,314,190
Accrued Interest Receivable			13,479			—			13,479			—			13,479
Interest Rate Caps			19,406			—			19,406			—			19,406
Interest Rate Swaps			18,717			—			18,717			—			18,717

Financial Liabilities:
Deposits		$	3,416,543		$	—		$	3,390,416		$	—		$	3,390,416
Federal Funds Purchased			287,000			—			287,000			—			287,000
Notes Payable			13,750			—			13,473			—			13,473
FHLB Advances			97,000			—			96,061			—			96,061
Subordinated Debentures			78,905			—			70,931			—			70,931
Accrued Interest Payable			2,831			—			2,831			—			2,831
Interest Rate Swaps			9,542			—			9,542			—			9,542