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v3.22.2.2

Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2022
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, 2022 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
State and municipals |  | $ | 51,032 |  |  | $ | — |  |  | $ | 51,032 |  |  | $ | — |
U.S. Treasury and agencies |  |  | 60,085 |  |  |  | — |  |  |  | 60,085 |  |  |  | — |
Mortgage backed securities |  |  | 207,820 |  |  |  | — |  |  |  | 200,203 |  |  |  | 7,617 |
Corporate bonds |  |  | 40,579 |  |  |  | 1,500 |  |  |  | 31,034 |  |  |  | 8,045 |
Total securities available for sale |  | $ | 359,516 |  |  | $ | 1,500 |  |  | $ | 342,354 |  |  | $ | 15,662 |
Other assets |  |  |  |  |  |  |  |  |  |  |  |
MSR assets |  | $ | 29,861 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,861 |
Rabbi trust assets |  |  | 765 |  |  |  | 765 |  |  |  | — |  |  |  | — |
Mortgage derivative asset |  |  | 1,045 |  |  |  | — |  |  |  | 1,045 |  |  |  | — |
Interest rate swap asset |  |  | 102 |  |  |  | — |  |  |  | 102 |  |  |  | — |
Other liabilities |  |  |  |  |  |  |  |  |  |  |  |
Mortgage derivative liability |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest rate swap liability |  |  | 102 |  |  |  | — |  |  |  | 102 |  |  |  | — |
|  | December 31, 2021 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
State and municipals |  | $ | 51,113 |  |  | $ | — |  |  | $ | 51,113 |  |  | $ | — |
U.S. Treasury and agencies |  |  | 64,066 |  |  |  | — |  |  |  | 64,066 |  |  |  | — |
Mortgage backed securities |  |  | 219,110 |  |  |  | — |  |  |  | 211,194 |  |  |  | 7,916 |
Corporate bonds |  |  | 39,243 |  |  |  | 3,000 |  |  |  | 25,179 |  |  |  | 11,064 |
Total securities available for sale |  | $ | 373,532 |  |  | $ | 3,000 |  |  | $ | 351,552 |  |  | $ | 18,980 |
Other assets |  |  |  |  |  |  |  |  |  |  |  |
Rabbi trust assets |  | $ | 994 |  |  | $ | 994 |  |  | $ | — |  |  | $ | — |
Mortgage derivative asset |  |  | 1,876 |  |  |  | — |  |  |  | 1,876 |  |  |  | — |
Interest rate swap asset |  |  | 199 |  |  |  | — |  |  |  | 199 |  |  |  | — |
Other liabilities |  |  |  |  |  |  |  |  |  |  |  |
Mortgage derivative liability |  | $ | 75 |  |  | $ | — |  |  | $ | 75 |  |  | $ | — |
Interest rate swap liability |  |  | 199 |  |  |  | — |  |  |  | 199 |  |  |  | — |
Summary of Changes in Financial Assets Valued Using Level 3 Inputs | The following table presents the change in financial assets valued using Level 3 inputs for the period stated.
(Dollars in thousands) |  | MSR Assets |  |  | Corporate Bonds |  |  | Mortgage backed securities |
Balance as of December 31, 2021 |  | $ | 16,469 |  |  | $ | 11,064 |  |  | $ | 7,916 |
Change in accounting method |  |  | 4,484 |  |  |  | — |  |  |  | — |
Transfers from Level 2 to Level 3 |  |  | — |  |  |  | — |  |  |  | — |
Transfers from Level 3 to Level 2 |  |  | — |  |  |  | (5,684 | ) |  |  | — |
Additions |  |  | 5,412 |  |  |  | 3,000 |  |  |  | — |
Sales or paydowns |  |  | — |  |  |  | — |  |  |  | (280 | )
Fair value adjustments |  |  | 3,496 |  |  |  | (335 | ) |  |  | (19 | )
Balance as of September 30, 2022 |  | $ | 29,861 |  |  | $ | 8,045 |  |  | $ | 7,617 |
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, 2022 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Impaired loans, net |  | $ | 3,142 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,142 |
Loans held for sale |  |  | 25,800 |  |  |  | — |  |  |  | 25,800 |  |  |  | — |
OREO |  |  | 195 |  |  |  | — |  |  |  | — |  |  |  | 195 |
|  | December 31, 2021 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Impaired loans, net |  | $ | 8,344 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,344 |
Loans held for sale |  |  | 121,943 |  |  |  | — |  |  |  | 121,943 |  |  |  | — |
OREO |  |  | 157 |  |  |  | — |  |  |  | — |  |  |  | 157 |
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 September 30, 2022 |  |  | Unobservable Input |  | Range |
Impaired loans, net |  |  |  |  |  |  |  |
Discounted appraised value technique |  | $ | 661 |  |  | Selling Costs |  | 0% - 7% |
Discounted cash flows technique |  |  | 2,481 |  |  | Discount Rate |  | 4% - 11% |
OREO |  |  |  |  |  |  |  |
Discounted appraised value technique |  |  | 195 |  |  | Selling Costs |  |  | 7 | %
(Dollars in thousands) |  | Balance as of December 31, 2021 |  |  | Unobservable Input |  | Range |
Impaired loans, net |  |  |  |  |  |  |  |
Discounted appraised value technique |  | $ | 8,108 |  |  | Selling Costs |  |  | 7 | %
Discounted cash flows technique |  |  | 236 |  |  | Discount Rate |  | 4% - 7% |
OREO |  |  |  |  |  |  |  |
Discounted appraised value technique |  |  | 157 |  |  | Selling Costs |  |  | 7 | %
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.
|  | September 30, 2022 |
|  |  |  |  |  |  |  | Fair Value Measurements |
(Dollars in thousands) |  | Carrying Value |  |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 98,305 |  |  | $ | 98,305 |  |  | $ | 98,305 |  |  | $ | — |  |  | $ | — |
Federal funds sold |  |  | 10,581 |  |  |  | 10,581 |  |  |  | 10,581 |  |  |  | — |  |  |  | — |
Securities available for sale |  |  | 359,516 |  |  |  | 359,516 |  |  |  | 1,500 |  |  |  | 342,354 |  |  |  | 15,662 |
Restricted equity investments |  |  | 13,639 |  |  |  | 13,639 |  |  |  | — |  |  |  | 13,639 |  |  |  | — |
Other equity investments |  |  | 23,570 |  |  |  | 23,570 |  |  |  | — |  |  |  | 23,570 |  |  |  | — |
PPP loans receivable, net |  |  | 13,148 |  |  |  | 13,148 |  |  |  | — |  |  |  | — |  |  |  | 13,148 |
Loans held for investment, net |  |  | 2,137,808 |  |  |  | 2,093,433 |  |  |  | — |  |  |  | — |  |  |  | 2,093,433 |
Accrued interest receivable |  |  | 9,577 |  |  |  | 9,577 |  |  |  | — |  |  |  | 9,577 |  |  |  | — |
Bank owned life insurance |  |  | 47,095 |  |  |  | 47,095 |  |  |  | — |  |  |  | 47,095 |  |  |  | — |
MSR assets |  |  | 29,861 |  |  |  | 29,861 |  |  |  | — |  |  |  | — |  |  |  | 29,861 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | $ | 787,514 |  |  | $ | 787,514 |  |  | $ | 787,514 |  |  | $ | — |  |  | $ | — |
Interest-bearing demand and money market deposits |  |  | 1,097,585 |  |  |  | 1,097,585 |  |  |  | — |  |  |  | 1,097,585 |  |  |  | — |
Savings deposits |  |  | 152,225 |  |  |  | 152,225 |  |  |  | — |  |  |  | 152,225 |  |  |  | — |
Time deposits |  |  | 372,162 |  |  |  | 370,898 |  |  |  | — |  |  |  | — |  |  |  | 370,898 |
FHLB borrowings |  |  | 150,100 |  |  |  | 150,100 |  |  |  | — |  |  |  | 150,100 |  |  |  | — |
FRB borrowings |  |  | 55 |  |  |  | 55 |  |  |  | — |  |  |  | 55 |  |  |  | — |
Subordinated notes, net |  |  | 39,937 |  |  |  | 37,608 |  |  |  | — |  |  |  | — |  |  |  | 37,608 |
|  | December 31, 2021 |
|  |  |  |  |  |  |  | Fair Value Measurements |
(Dollars in thousands) |  | Carrying Value |  |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 130,548 |  |  | $ | 130,548 |  |  | $ | 130,548 |  |  | $ | — |  |  | $ | — |
Federal funds sold |  |  | 43,903 |  |  |  | 43,903 |  |  |  | 43,903 |  |  |  | — |  |  |  | — |
Securities available for sale |  |  | 373,532 |  |  |  | 373,532 |  |  |  | 3,000 |  |  |  | 351,552 |  |  |  | 18,980 |
Restricted equity investments |  |  | 8,334 |  |  |  | 8,334 |  |  |  | — |  |  |  | 8,334 |  |  |  | — |
Other equity investments |  |  | 14,184 |  |  |  | 14,184 |  |  |  | — |  |  |  | 14,184 |  |  |  | — |
PPP loans receivable, net |  |  | 30,406 |  |  |  | 30,406 |  |  |  | — |  |  |  | — |  |  |  | 30,406 |
Loans held for investment, net |  |  | 1,765,051 |  |  |  | 1,766,820 |  |  |  | — |  |  |  | — |  |  |  | 1,766,820 |
Accrued interest receivable |  |  | 9,573 |  |  |  | 9,573 |  |  |  | — |  |  |  | 9,573 |  |  |  | — |
Bank owned life insurance |  |  | 46,545 |  |  |  | 46,545 |  |  |  | — |  |  |  | 46,545 |  |  |  | — |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | $ | 685,801 |  |  | $ | 685,801 |  |  | $ | 685,801 |  |  | $ | — |  |  | $ | — |
Interest-bearing demand and money market deposits |  |  | 962,092 |  |  |  | 962,092 |  |  |  | — |  |  |  | 962,092 |  |  |  | — |
Savings deposits |  |  | 150,376 |  |  |  | 150,376 |  |  |  | — |  |  |  | 150,376 |  |  |  | — |
Time deposits |  |  | 499,502 |  |  |  | 503,968 |  |  |  | — |  |  |  | — |  |  |  | 503,968 |
FHLB borrowings |  |  | 10,111 |  |  |  | 9,943 |  |  |  | — |  |  |  | 9,943 |  |  |  | — |
FRB borrowings |  |  | 17,901 |  |  |  | 17,901 |  |  |  | — |  |  |  | 17,901 |  |  |  | — |
Subordinated notes, net |  |  | 39,986 |  |  |  | 41,388 |  |  |  | — |  |  |  | — |  |  |  | 41,388 |

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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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 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 (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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