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Fair Value (Restated) (Tables)

12 Months Ended

Dec. 31, 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.

		December 31, 2022
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Securities available for sale
State and municipals		$	50,993			$	—			$	50,993			$	—
U.S. Treasury and agencies			67,162				—				67,162				—
Mortgage backed securities			196,336				—				188,719				7,617
Corporate bonds			39,850				—				35,561				4,289
Total securities available for sale		$	354,341			$	—			$	342,435			$	11,906
Other assets
MSR assets		$	28,991			$	—			$	—			$	28,991
Rabbi trust assets			584				584				—				—
Mortgage derivative asset			112				—				112				—
Interest rate swap asset			95				—				95				—
Other liabilities
Mortgage derivative liability		$	24			$	—			$	24			$	—
Interest rate swap liability			95				—				95				—

		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 Incorporate Bonds and Mortgage Backed Securities Using Level 3 Inputs

The following table presents the change in corporate bonds and mortgage backed securities using Level 3 inputs for the periods stated.

(Dollars in thousands)		Corporate Bonds				Mortgage backed securities
Balance as of December 31, 2020		$	—			$	—
Transfers from Level 2 to Level 3			14,041				7,915
Transfers from Level 3 to Level 2			(996	)			—
Sales or paydowns			(2,000	)			—
Fair value adjustments			19				1
Balance as of December 31, 2021		$	11,064			$	7,916
Transfers from Level 3 to Level 2			(6,751	)			—
Sales or paydowns			—				(300	)
Fair value adjustments			(24	)			1
Balance as of December 31, 2022		$	4,289			$	7,617

Summary of Change in MSR Assets

The following table presents the change in MSR assets as of the dates and for the periods stated.

(Dollars in thousands)		MSR Assets
Balance as of December 31, 2020		$	7,084
Acquired in Bay Banks Merger			997
Additions			11,809
Write-offs			(959	)
Amortization			(2,462	)
Balance as of December 31, 2021 - Amortized cost		$	16,469
Change in accounting method			4,484
Additions			5,791
Fair value adjustments			2,247
Balance as of December 31, 2022 - Fair value		$	28,991

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.

		December 31, 2022 (Restated)
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Other equity investments		$	23,776			$	—			$	23,776			$	—
Impaired loans, net			54,906				—				—				54,906
Loans held for sale			69,534				—				69,534				—
OREO			195				—				—				195

		December 31, 2021
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Other equity investments		$	14,184			$	—			$	14,184			$	—
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 December 31, 2022 (Restated)				Unobservable Input		Range
Impaired loans, net
Discounted appraised value technique			54,761			Selling Costs		7% - 10%
Discounted cash flows technique			145			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 of Financial Instruments

The following tables present estimated fair values and related carrying amounts of the Company’s financial instruments as of the dates stated.

		December 31, 2022 (Restated)
										Fair Value Measurements
(Dollars in thousands)		Carrying Value				Fair Value				Level 1				Level 2				Level 3
Financial Assets
Cash and due from banks		$	77,274			$	77,274			$	77,274			$	—			$	—
Federal funds sold			1,426				1,426				1,426				—				—
Securities available for sale			354,341				354,341				—				342,435				11,906
Restricted equity investments			21,257				21,257				—				21,257				—
Other equity investments			23,776				23,776				—				23,776				—
Other investments			24,672				24,672				—				—				24,672
PPP loans receivable, net			11,967				11,967				—				—				11,967
Loans held for investment, net			2,368,352				2,321,042				—				—				2,321,042
Accrued interest receivable			11,569				11,569				—				11,569				—
Bank owned life insurance			47,245				47,245				—				47,245				—
MSR assets			28,991				28,991				—				—				28,991
Financial Liabilities
Noninterest-bearing deposits		$	640,101			$	640,101			$	640,101			$	—			$	—
Interest-bearing demand and money market deposits			1,318,799				1,318,799				—				1,318,799				—
Savings deposits			151,646				151,646				—				151,646				—
Time deposits			391,961				352,294				—				—				352,294
FHLB borrowings			311,700				311,700				—				311,700				—
FRB borrowings			51				51				—				51				—
Subordinated notes, net			39,920				37,689				—				—				37,689

		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				—
Other investments			12,681				12,681				—				—				12,681
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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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 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.

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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 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.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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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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