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Fair Value (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Summary of Financial Assets Measured at Fair Value on Recurring Basis

The following tables present the balances of financial assets measured at fair value on a recurring basis:

		December 31, 2020
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Securities available for sale
State and municipals		$	14,259			$	—			$	14,259			$	—
U.S. Treasury and agencies			2,409				—				2,409				—
Mortgage backed securities			72,635				—				72,635				—
Corporate bonds			20,172				—				20,172				—
Total investment securities available for sale		$	109,475			$	—			$	109,475			$	—
Mortgage derivative asset		$	5,293			$	—			$	5,293			$	—
Mortgage derivative liability		$	1,569			$	—			$	1,569			$	—
Interest rate swap asset		$	1,716			$	—			$	1,716			$	—
Interest rate swap liability		$	2,735			$	—			$	2,735			$	—

		December 31, 2019
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Securities available for sale
U.S. Treasury and agencies		$	2,449			$	—			$	2,449			$	—
Mortgage backed securities			95,485				—				95,485				—
Corporate bonds			10,637				—				10,637				—
Total investment securities available for sale		$	108,571			$	—			$	108,571			$	—
Mortgage derivative asset		$	591			$	—			$	591			$	—
Mortgage derivative liability		$	2			$	—			$	2			$	—
Interest rate swap asset		$	185			$	—			$	185			$	—
Interest rate swap liability		$	430			$	—			$	430			$	—

Summary of Change in MSR Assets

The following table presents the change in MSR assets for the year ended December 31, 2020:

(Dollars in thousands)		MSRs
Balance, December 31, 2019		$	—
Additions			7,539
Write-offs			(61	)
Amortization			(391	)
Impairments			(3	)
Fair value adjustments			207
Balance, December 31, 2020 - Fair value		$	7,291
Balance, December 31, 2020 - Amortized cost		$	7,084

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated:

		December 31, 2020
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Impaired loans, net		$	2,187			$	—			$	—			$	2,187
Loans held for sale			178,598				—				178,598				—

		December 31, 2019
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Impaired loans, net		$	1,167			$	—			$	—			$	1,167
Loans held for sale			55,646				—				55,646				—

Summary of Quantitative Information about Level 3 Fair Value Measurements

The following tables present quantitative information about Level 3 fair value measurements as of the dates stated:

(Dollars in thousands)		Balance as of December 31, 2020				Valuation Technique		Unobservable Input		Weighted Average
Impaired loans, net		$	2,097			Discounted appraised value		Selling costs			10	%
			90			Discounted cash flows		Discount rate			6	%

(Dollars in thousands)

Balance as of December 31, 2019

Valuation Technique

Unobservable Input

Weighted Average

Impaired loans, net

$

1,167

Discounted appraised value

Selling costs

10

%

Summary of Estimated Fair Values and Related Carrying Amounts of Financial Instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments were as follows as of the dates presented:

						Fair Value Measurements at December 31, 2020
(Dollars in thousands)		Carrying Amount				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Fair Value
Financial Assets
Cash and due from banks		$	117,945			$	117,945			$	—			$	—			$	117,945
Federal funds sold			775				775				—				—				775
Securities available for sale			109,475				—				109,475				—				109,475
Restricted equity investments			11,173				—				11,173				—				11,173
PPP loans receivable, net			288,533				—				—				288,533				288,533
Loans held for investment, net			688,667				—				—				690,007				690,007
Accrued interest receivable			5,428				—				5,428				—				5,428
Cash surrender value of life insurance			15,724				—				15,724				—				15,724
Financial Liabilities
Noninterest-bearing deposits			333,051				333,051				—				—				333,051
Interest-bearing deposits			612,058				—				360,615				257,647				618,262
FHLB borrowings			115,000				—				114,983				—				114,983
FRB borrowings			281,650				—				281,650				—				281,650
Subordinated debentures, net			24,506				—				—				25,830				25,830
Accrued interest payable			626				—				626				—				626

						Fair Value Measurements at December 31, 2019
(Dollars in thousands)		Carrying Amount				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Fair Value
Financial Assets
Cash and due from banks		$	60,026			$	60,026			$	—			$	—			$	60,026
Federal funds sold			480				480				—				—				480
Securities available for sale			108,571				—				108,571				—				108,571
Securities held to maturity			12,192				—				12,654				—				12,654
Restricted equity investments			8,143				—				8,143				—				8,143
Loans held for investment, net			642,262				—				—				643,878				643,878
Accrued interest receivable			2,590				—				2,590				—				2,590
Cash surrender value of life insurance			15,321				—				15,321				—				15,321
Financial Liabilities
Noninterest-bearing deposits			177,819				177,819				—				—				177,819
Interest-bearing deposits			544,211				—				364,986				168,736				533,722
FHLB borrowings			124,800				—				124,971				—				124,971
Subordinated debentures, net			9,800				—				—				9,874				9,874
Accrued interest payable			706				—				706				—				706

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).

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class 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).

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Tabular disclosure of activity in the balance of servicing assets subsequently measured at amortized cost. Includes, but is not limited to, beginning and ending balances, additions, disposals, and amortization.

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