XML 21 R15.htm IDEA: XBRL DOCUMENT
v3.24.3

Fair Value | 9 Months Ended
--- | ---
Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Fair Value | Note 6 – Fair Value The fair value of a financial instrument is the current amount that would be exchanged between willing parties in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. The three levels of input that may be used to measure fair value are as follows:
Level 1 – |  | Valuation is based on quoted prices in active markets for identical assets and liabilities.
Level 2 – |  | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market.
Level 3 – |  | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market.
The following tables present the balances of financial assets measured at fair value on a recurring basis as of the dates stated.
|  | September 30, 2024 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
Mortgage backed securities |  | $ | 165,436 |  |  | $ | — |  |  | $ | 165,436 |  |  | $ | — |
U.S. Treasury and agencies |  |  | 71,453 |  |  |  | — |  |  |  | 71,453 |  |  |  | — |
State and municipals |  |  | 44,529 |  |  |  | — |  |  |  | 44,529 |  |  |  | — |
Corporate bonds |  |  | 33,366 |  |  |  | — |  |  |  | 32,616 |  |  |  | 750 |
Total securities available for sale |  | $ | 314,784 |  |  | $ | — |  |  | $ | 314,034 |  |  | $ | 750 |
Other assets |  |  |  |  |  |  |  |  |  |  |  |
Mortgage servicing rights assets |  | $ | 19,502 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,502 |
Rabbi trust assets |  |  | 593 |  |  |  | 593 |  |  |  | — |  |  |  | — |
Mortgage derivative asset |  |  | 212 |  |  |  | — |  |  |  | 212 |  |  |  | — |
Interest rate swap asset |  |  | 69 |  |  |  | — |  |  |  | 69 |  |  |  | — |
Other liabilities |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap liability |  | $ | 71 |  |  | $ | — |  |  | $ | 71 |  |  | $ | — |
|  | December 31, 2023 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
Mortgage backed securities |  | $ | 176,970 |  |  | $ | — |  |  | $ | 176,970 |  |  | $ | — |
U.S. Treasury and agencies |  |  | 68,871 |  |  |  | — |  |  |  | 68,871 |  |  |  | — |
State and municipals |  |  | 43,325 |  |  |  | — |  |  |  | 43,325 |  |  |  | — |
Corporate bonds |  |  | 31,915 |  |  |  | — |  |  |  | 31,165 |  |  |  | 750 |
Total securities available for sale |  | $ | 321,081 |  |  | $ | — |  |  | $ | 320,331 |  |  | $ | 750 |
Other assets |  |  |  |  |  |  |  |  |  |  |  |
Mortgage servicing rights assets |  | $ | 27,114 |  |  | $ | — |  |  | $ | — |  |  | $ | 27,114 |
Rabbi trust assets |  |  | 531 |  |  |  | 531 |  |  |  | — |  |  |  | — |
Mortgage derivative asset |  |  | 335 |  |  |  | — |  |  |  | 335 |  |  |  | — |
Interest rate swap asset |  |  | 71 |  |  |  | — |  |  |  | 71 |  |  |  | — |
Other liabilities |  |  |  |  |  |  |  |  |  |  |  |
Mortgage derivative liability |  | $ | 140 |  |  | $ | — |  |  | $ | 140 |  |  | $ | — |
Interest rate swap liability |  |  | 71 |  |  |  | — |  |  |  | 71 |  |  |  | — |
As of September 30, 2024, two corporate bonds totaling $750 thousand were reported at their respective amortized cost basis and as Level 3 assets in the fair value hierarchy, as there were no observable market prices for similar investments. The following table presents the change in mortgage servicing rights ("MSR") assets as of the dates and for the periods stated.
(Dollars in thousands) |  | MSR Assets |
Balance as of December 31, 2023 |  | $ | 27,114 |
Additions |  |  | 10 |
Fair value adjustments |  |  | (176 | )
Sale proceeds |  |  | (6,568 | )
Transfer to other assets |  |  | (731 | )
Loss on sale |  |  | (147 | )
Balance as of September 30, 2024 |  | $ | 19,502 |
The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated. As previously reported, in the second quarter of 2024, the Company recorded an $8.5 million impairment charge against the Company's investment in a fintech company, which is reported in other equity investments on the consolidated balance sheets.
|  | September 30, 2024 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Other equity investments |  | $ | 4,525 |  |  | $ | — |  |  | $ | 1,519 |  |  | $ | 3,006 |
Collateral-dependent loans |  |  | 21,337 |  |  |  | — |  |  |  | — |  |  |  | 21,337 |
Loans held for sale |  |  | 22,082 |  |  |  | — |  |  |  | 22,082 |  |  |  | — |
Other real estate owned ("OREO") (1) |  |  | 100 |  |  |  | — |  |  |  | — |  |  |  | 100 |
(1) Included in other assets on the consolidated balance sheets. |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2023 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Other equity investments |  | $ | 12,905 |  |  | $ | — |  |  | $ | 12,905 |  |  | $ | — |
Collateral-dependent loans |  |  | 56,068 |  |  |  | — |  |  |  | — |  |  |  | 56,068 |
Loans held for sale |  |  | 46,337 |  |  |  | — |  |  |  | 46,337 |  |  |  | — |
The following tables present quantitative information about Level 3 fair value measurements of assets measured on a nonrecurring basis as of the dates stated.
(Dollars in thousands) |  | Balance as of September 30, 2024 |  |  | Unobservable Input |  | Range |
Other equity investments |  |  |  |  |  |  |  |
Probability weighted expected return technique |  | $ | 3,006 |  |  | Discount Rate |  |  | 20 | %
Collateral-dependent loans |  |  |  |  |  |  |  |
Discounted appraised value technique |  |  | 21,337 |  |  | Selling Costs |  | 7% - 15% |
OREO (1) |  |  |  |  |  |  |  |
Discounted sales price technique |  |  | 100 |  |  | Selling Costs |  |  | 7 | %
(1) Included in other assets on the consolidated balance sheets. |  |  |  |  |  |  |  |
(Dollars in thousands) |  | Balance as of December 31, 2023 |  |  | Unobservable Input |  | Range
Collateral-dependent loans |  |  |  |  |  |  |
Discounted appraised value technique |  | $ | 56,068 |  |  | Selling Costs |  | 7% - 15%
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, 2024 |
|  |  |  |  |  |  |  | Fair Value Measurements |
(Dollars in thousands) |  | Carrying Value |  |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 281,698 |  |  | $ | 281,698 |  |  | $ | 281,698 |  |  | $ | — |  |  | $ | — |
Restricted cash |  |  | 4,160 |  |  |  | 4,160 |  |  |  | 4,160 |  |  |  | — |  |  |  | — |
Federal funds sold |  |  | 2,910 |  |  |  | 2,910 |  |  |  | 2,910 |  |  |  | — |  |  |  | — |
Securities available for sale |  |  | 314,784 |  |  |  | 314,784 |  |  |  | — |  |  |  | 314,034 |  |  |  | 750 |
Restricted equity investments |  |  | 20,891 |  |  |  | 20,891 |  |  |  | — |  |  |  | 20,891 |  |  |  | — |
Other equity investments |  |  | 4,525 |  |  |  | 4,525 |  |  |  | — |  |  |  | 1,519 |  |  |  | 3,006 |
Other investments |  |  | 21,344 |  |  |  | 21,344 |  |  |  | — |  |  |  | — |  |  |  | 21,344 |
Loans held for sale |  |  | 22,082 |  |  |  | 22,082 |  |  |  | — |  |  |  | 22,082 |  |  |  | — |
Loans held for investment, net |  |  | 2,154,960 |  |  |  | 2,055,614 |  |  |  | — |  |  |  | — |  |  |  | 2,055,614 |
Accrued interest receivable |  |  | 13,171 |  |  |  | 13,171 |  |  |  | — |  |  |  | 13,171 |  |  |  | — |
Bank owned life insurance |  |  | 14,953 |  |  |  | 14,953 |  |  |  | — |  |  |  | 14,953 |  |  |  | — |
MSR assets |  |  | 19,502 |  |  |  | 19,502 |  |  |  | — |  |  |  | — |  |  |  | 19,502 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand |  | $ | 459,793 |  |  | $ | 459,793 |  |  | $ | 459,793 |  |  | $ | — |  |  | $ | — |
Interest-bearing demand and money market |  |  | 748,416 |  |  |  | 748,416 |  |  |  | — |  |  |  | 748,416 |  |  |  | — |
Savings |  |  | 103,820 |  |  |  | 103,820 |  |  |  | — |  |  |  | 103,820 |  |  |  | — |
Time |  |  | 1,034,463 |  |  |  | 1,040,044 |  |  |  | — |  |  |  | — |  |  |  | 1,040,044 |
FHLB borrowings |  |  | 190,000 |  |  |  | 189,506 |  |  |  | — |  |  |  | 189,506 |  |  |  | — |
Subordinated notes, net |  |  | 39,806 |  |  |  | 38,687 |  |  |  | — |  |  |  | — |  |  |  | 38,687 |
|  | December 31, 2023 |
|  |  |  |  |  |  |  | Fair Value Measurements |
(Dollars in thousands) |  | Carrying Value |  |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 110,491 |  |  | $ | 110,491 |  |  | $ | 110,491 |  |  | $ | — |  |  | $ | — |
Restricted cash |  |  | 10,660 |  |  |  | 10,660 |  |  |  | 10,660 |  |  |  | — |  |  |  | — |
Federal funds sold |  |  | 4,451 |  |  |  | 4,451 |  |  |  | 4,451 |  |  |  | — |  |  |  | — |
Securities available for sale |  |  | 321,081 |  |  |  | 321,081 |  |  |  | — |  |  |  | 320,331 |  |  |  | 750 |
Restricted equity investments |  |  | 18,621 |  |  |  | 18,621 |  |  |  | — |  |  |  | 18,621 |  |  |  | — |
Other equity investments |  |  | 12,905 |  |  |  | 12,905 |  |  |  | — |  |  |  | 12,905 |  |  |  | — |
Other investments |  |  | 29,467 |  |  |  | 29,467 |  |  |  | — |  |  |  | — |  |  |  | 29,467 |
Loans held for sale |  |  | 46,337 |  |  |  | 46,337 |  |  |  | — |  |  |  | 46,337 |  |  |  | — |
Loans held for investment, net |  |  | 2,395,054 |  |  |  | 2,316,113 |  |  |  | — |  |  |  | — |  |  |  | 2,316,113 |
Accrued interest receivable |  |  | 14,967 |  |  |  | 14,967 |  |  |  | — |  |  |  | 14,967 |  |  |  | — |
Bank owned life insurance |  |  | 48,453 |  |  |  | 48,453 |  |  |  | — |  |  |  | 48,453 |  |  |  | — |
MSR assets |  |  | 27,114 |  |  |  | 27,114 |  |  |  | — |  |  |  | — |  |  |  | 27,114 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand |  | $ | 506,248 |  |  | $ | 506,248 |  |  | $ | 506,248 |  |  | $ | — |  |  | $ | — |
Interest-bearing demand and money market |  |  | 1,049,536 |  |  |  | 1,049,536 |  |  |  | — |  |  |  | 1,049,536 |  |  |  | — |
Savings |  |  | 117,923 |  |  |  | 117,923 |  |  |  | — |  |  |  | 117,923 |  |  |  | — |
Time |  |  | 892,325 |  |  |  | 892,439 |  |  |  | — |  |  |  | — |  |  |  | 892,439 |
FHLB borrowings |  |  | 210,000 |  |  |  | 211,799 |  |  |  | — |  |  |  | 211,799 |  |  |  | — |
FRB borrowings |  |  | 65,000 |  |  |  | 65,000 |  |  |  | — |  |  |  | 65,000 |  |  |  | — |
Subordinated notes, net |  |  | 39,855 |  |  |  | 37,803 |  |  |  | — |  |  |  | — |  |  |  | 37,803 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration