XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.21.1

Fair Value Accounting | 3 Months Ended
--- | ---
Mar. 31, 2021
Fair Value Disclosures [Abstract] |
Fair Value Accounting | NOTE 7 – Fair Value Accounting FASB ASC 820, “Fair Value Measurement and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted market price in active markets Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include certain debt and equity securities that are traded in an active exchange market. Level 2 – Significant other observable inputs Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include fixed income securities and mortgage-backed securities that are held in the Company’s available-for-sale portfolio and valued by a third-party pricing service, as well as certain impaired loans. Level 3 – Significant unobservable inputs Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. These methodologies may result in a significant portion of the fair value being derived from unobservable data. The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 14 of the Company’s 2020 Annual Report on Form 10-K. The Company’s loan portfolio is initially fair valued using a segmented approach, using the eight categories of loans as disclosed in Note 4 – Loans and Allowance for Loan Losses. Loans are considered a Level 3 classification. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020. 22
|  | March 31, 2021
(dollars in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |
US government agencies |  | $ | - |  | 7,263 |  | - |  | 7,263
SBA securities |  |  | - |  | 480 |  | - |  | 480
State and political subdivisions |  |  | - |  | 19,811 |  | - |  | 19,811
Asset-backed securities |  |  | - |  | 11,283 |  | - |  | 11,283
Mortgage-backed securities |  |  | - |  | 54,160 |  | - |  | 54,160
Mortgage loans held for sale |  |  | - |  | 57,073 |  | - |  | 57,073
Mortgage loan interest rate lock commitments |  |  | - |  | 794 |  | - |  | 794
MBS forward sales commitments |  |  | - |  | 497 |  | - |  | 497
Total assets measured at fair value on a recurring basis |  | $ | - |  | 151,361 |  | - |  | 151,361
|  | December 31, 2020
(dollars in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |
US government agencies |  | $ | - |  | 6,493 |  | - |  | 6,493
SBA securities |  |  | - |  | 485 |  | - |  | 485
State and political subdivisions |  |  | - |  | 19,388 |  | - |  | 19,388
Asset-backed securities |  |  | - |  | 11,529 |  | - |  | 11,529
Mortgage-backed securities |  |  | - |  | 56,834 |  | - |  | 56,834
Mortgage loans held for sale |  |  | - |  | 60,257 |  | - |  | 60,257
Mortgage loan interest rate lock commitments |  |  | - |  | 2,385 |  | - |  | 2,385
Total assets measured at fair value on a recurring basis |  | $ | - |  | 157,371 |  | - |  | 157,371
Liabilities |  |  |  |  |  |  |  |  |
MBS forward sales commitments |  | $ | - |  | 501 |  | - |  | 501
Total liabilities measured at fair value on a recurring basis |  | $ | - |  | 501 |  | - |  | 501
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis as of March 31, 2021 and December 31, 2020.
|  | As of March 31, 2021
(dollars in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | - |  | 7,833 |  | 2,714 |  | 10,547
Total assets measured at fair value on a nonrecurring basis |  | $ | - |  | 7,833 |  | 2,714 |  | 10,547
|  | As of December 31, 2020
(dollars in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | - |  | 8,144 |  | 3,109 |  | 11,253
Other real estate owned |  |  | - |  | 1,169 |  | - |  | 1,169
Total assets measured at fair value on a nonrecurring basis |  | $ | - |  | 9,313 |  | 3,109 |  | 12,422
The Company had no liabilities carried at fair value or measured at fair value on a nonrecurring basis. Fair Value of Financial Instruments Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the disclosure requirements, including the Company’s common stock, premises and equipment and other assets and liabilities. 23 The estimated fair values of the Company’s financial instruments at March 31, 2021 and December 31, 2020 are as follows:
|  | March 31, 2021
|  | Carrying |  | Fair |  |  |  |  |  |
(dollars in thousands) |  | Amount |  | Value |  | Level 1 |  | Level 2 |  | Level 3
Financial Assets: |  |  |  |  |  |  |  |  |  |  |
Other investments, at cost |  | $ | 1,770 |  | 1,770 |  | - |  | - |  | 1,770
Loans1 |  |  | 2,128,001 |  | 2,078,530 |  | - |  | - |  | 2,078,530
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 2,258,751 |  | 2,085,976 |  | - |  | 2,085,976 |  | -
Subordinated debentures |  |  | 36,025 |  | 30,548 |  | - |  | 30,548 |  | -
|  | December 31, 2020
|  | Carrying |  | Fair |  |  |  |  |  |
(dollars in thousands) |  | Amount |  | Value |  | Level 1 |  | Level 2 |  | Level 3
Financial Assets: |  |  |  |  |  |  |  |  |  |  |
Other investments, at cost |  | $ | 3,635 |  | 3,635 |  | - |  | - |  | 3,635
Loans1 |  |  | 2,085,756 |  | 2,060,698 |  | - |  | - |  | 2,060,698
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 2,142,758 |  | 2,008,317 |  | - |  | 2,008,317 |  | -
FHLB and other borrowings |  |  | 25,000 |  | 24,972 |  | - |  | 24,972 |  | -
Subordinated debentures |  |  | 35,998 |  | 30,371 |  | - |  | 30,371 |  | -
1 | Carrying amount is net of the allowance for loan losses and previously presented impaired loans.

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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration