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Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2021
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 as of the dates stated.
|  | September 30, 2021 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
State and municipals |  | $ | 41,852 |  |  | $ | — |  |  | $ | 41,852 |  |  | $ | — |
U.S. Treasury and agencies |  |  | 48,548 |  |  |  | — |  |  |  | 48,548 |  |  |  | — |
Mortgage backed securities |  |  | 238,923 |  |  |  | — |  |  |  | 238,923 |  |  |  | — |
Corporate bonds |  |  | 30,775 |  |  |  | — |  |  |  | 30,775 |  |  |  | — |
Total securities available for sale |  | $ | 360,098 |  |  | $ | — |  |  | $ | 360,098 |  |  | $ | — |
Other assets |  |  |  |  |  |  |  |  |  |  |  |
Rabbi trust assets |  | $ | 963 |  |  | $ | 963 |  |  | $ | — |  |  | $ | — |
Mortgage derivative asset |  |  | 3,456 |  |  |  | — |  |  |  | 3,456 |  |  |  | — |
Interest rate swap asset |  |  | 5,838 |  |  |  | — |  |  |  | 5,838 |  |  |  | — |
Other liabilities |  |  |  |  |  |  |  |  |  |  |  |
Mortgage derivative liability |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest rate swap liability |  |  | 1,239 |  |  |  | — |  |  |  | 1,239 |  |  |  | — |
|  | 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 securities available for sale |  | $ | 109,475 |  |  | $ | — |  |  | $ | 109,475 |  |  | $ | — |
Other assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage derivative asset |  | $ | 5,293 |  |  | $ | — |  |  | $ | 5,293 |  |  | $ | — |
Interest rate swap asset |  |  | 1,716 |  |  |  | — |  |  |  | 1,716 |  |  |  | — |
Other liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage derivative liability |  | $ | 1,569 |  |  | $ | — |  |  | $ | 1,569 |  |  | $ | — |
Interest rate swap liability |  |  | 2,735 |  |  |  | — |  |  |  | 2,735 |  |  |  | — |
Summary of Change in MSR Assets Using Level 3 Inputs | The following tables present the change in MSR assets using Level 3 inputs as of and for the periods stated.
(Dollars in thousands) |  | MSR Assets |
Balance, December 31, 2020 |  | $ | 7,084 |
Acquired in Bay Banks Merger |  |  | 997 |
Additions |  |  | 9,252 |
Write-offs |  |  | (616 | )
Amortization |  |  | (1,741 | )
Impairments |  |  | — |
Fair value adjustments |  |  | 3,567 |
Balance, September 30, 2021 - fair value |  | $ | 18,543 |
Balance, September 30, 2021 - amortized cost |  | $ | 14,976 |
(Dollars in thousands) |  | MSR Assets |
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 | The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated.
|  | September 30, 2021 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Impaired loans, net |  | $ | 8,233 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,233 |
Loans held for sale |  |  | 144,111 |  |  |  | — |  |  |  | 144,111 |  |  |  | — |
OREO |  |  | 227 |  |  |  | — |  |  |  | — |  |  |  | 227 |
|  | December 31, 2020 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Impaired loans, net |  | $ | 2,187 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,187 |
Loans held for sale |  |  | 148,209 |  |  |  | — |  |  |  | 148,209 |  |  |  | — |
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.
|  | Balance as of |  |  | Valuation |  | Unobservable |  | Weighted |
(Dollars in thousands) |  | September 30, 2021 |  |  | Technique |  | Input |  | Average |
Impaired loans, net |  | $ | 8,233 |  |  | Discounted appraised value |  | Selling costs |  |  | 7 | %
OREO |  |  | 227 |  |  | Discounted appraised value |  | Selling costs |  |  | 7 | %
|  | Balance as of |  |  | Valuation |  | Unobservable |  | Weighted |
(Dollars in thousands) |  | December 31, 2020 |  |  | Technique |  | Input |  | Average |
Impaired loans, net |  | $ | 2,097 |  |  | Discounted appraised value |  | Selling costs |  |  | 10 | %
|  |  | 90 |  |  | Discounted cash flows |  | Discount rate |  |  | 6 | %
Summary of Estimated Fair Values and Related Carrying Amounts and Valuation Level of Financial Instruments | The following tables present the estimated fair values, related carrying amounts, and valuation level of the financial instruments as of the dates stated.
|  | Carrying Value as of |  |  | Fair Value as of |  |  | Fair Value Measurements as of September 30, 2021 |
(Dollars in thousands) |  | September 30, 2021 |  |  | September 30, 2021 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 53,077 |  |  | $ | 53,077 |  |  | $ | 53,077 |  |  | $ | — |  |  | $ | — |
Federal funds sold |  |  | 144,376 |  |  |  | 144,376 |  |  |  | 144,376 |  |  |  | — |  |  |  | — |
Securities available for sale |  |  | 360,098 |  |  |  | 360,098 |  |  |  | — |  |  |  | 360,098 |  |  |  | — |
Restricted equity and other investments |  |  | 19,343 |  |  |  | 19,343 |  |  |  | — |  |  |  | 19,343 |  |  |  | — |
PPP loans receivable, net |  |  | 46,648 |  |  |  | 46,648 |  |  |  | — |  |  |  | — |  |  |  | 46,648 |
Loans held for investment, net |  |  | 1,739,839 |  |  |  | 1,732,771 |  |  |  | — |  |  |  | — |  |  |  | 1,732,771 |
Accrued interest receivable |  |  | 9,900 |  |  |  | 9,900 |  |  |  | — |  |  |  | 9,900 |  |  |  | — |
Bank owned life insurance |  |  | 46,278 |  |  |  | 46,278 |  |  |  | — |  |  |  | 46,278 |  |  |  | — |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand deposits |  | $ | 684,859 |  |  | $ | 684,859 |  |  | $ | 684,859 |  |  | $ | — |  |  | $ | — |
Interest-bearing demand and money market deposits |  |  | 828,477 |  |  |  | 828,477 |  |  |  | — |  |  |  | 828,477 |  |  |  | — |
Savings deposits |  |  | 144,904 |  |  |  | 144,904 |  |  |  | — |  |  |  | 144,904 |  |  |  | — |
Time deposits |  |  | 541,964 |  |  |  | 547,140 |  |  |  | — |  |  |  | — |  |  |  | 547,140 |
FHLB borrowings |  |  | 125,115 |  |  |  | 124,900 |  |  |  | — |  |  |  | 124,900 |  |  |  | — |
FRB borrowings |  |  | 33,857 |  |  |  | 33,857 |  |  |  | — |  |  |  | 33,857 |  |  |  | — |
Subordinated notes, net |  |  | 40,503 |  |  |  | 42,048 |  |  |  | — |  |  |  | — |  |  |  | 42,048 |
|  | Carrying Value as of |  |  | Fair Value as of |  |  | Fair Value Measurements as of December 31, 2020 |
(Dollars in thousands) |  | December 31, 2020 |  |  | December 31, 2020 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
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 |  |  | 719,056 |  |  |  | 720,396 |  |  |  | — |  |  |  | — |  |  |  | 720,396 |
Accrued interest receivable |  |  | 5,428 |  |  |  | 5,428 |  |  |  | — |  |  |  | 5,428 |  |  |  | — |
Bank owned life insurance |  |  | 15,724 |  |  |  | 15,724 |  |  |  | — |  |  |  | 15,724 |  |  |  | — |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand deposits |  | $ | 333,051 |  |  | $ | 333,051 |  |  | $ | 333,051 |  |  | $ | — |  |  | $ | — |
Interest-bearing demand and money market deposits |  |  | 282,263 |  |  |  | 282,263 |  |  |  | — |  |  |  | 282,263 |  |  |  |
Savings deposits |  |  | 78,352 |  |  |  | 78,352 |  |  |  | — |  |  |  | 78,352 |  |  |  | — |
Time deposits |  |  | 251,443 |  |  |  | 257,647 |  |  |  | — |  |  |  | — |  |  |  | 257,647 |
FHLB borrowings |  |  | 115,000 |  |  |  | 114,983 |  |  |  | — |  |  |  | 114,983 |  |  |  | — |
FRB borrowings |  |  | 281,650 |  |  |  | 281,650 |  |  |  | — |  |  |  | 281,650 |  |  |  | — |
Subordinated notes, net |  |  | 24,506 |  |  |  | 25,830 |  |  |  | — |  |  |  | — |  |  |  | 25,830 |

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- Definition 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. + 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 (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. + 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 (a) -URI http://asc.fasb.org/extlink&oid=123874694&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 (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition 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). + 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 http://asc.fasb.org/extlink&oid=123874694&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 (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- 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 http://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 http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition 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. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 4 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=125521744&loc=d3e122739-111746 + Details
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