XML 85 R51.htm IDEA: XBRL DOCUMENT
v3.22.4

Fair Value Measurements (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Fair value of assets and liabilities |
Schedule of Recurring Level III Assets | The following table represents recurring Level III assets as of the periods shown:
(Dollars in thousands) |  | Municipal Securities |  | Embedded Derivatives |  | Total
Balance at December 31, 2021 |  | $ | 41,763 |  |  | $ | — |  |  | $ | 41,763 |
Realized gains included in earnings |  | 9 |  |  | — |  |  | 9 |
Purchase of securities |  | 1,048 |  |  | — |  |  | 1,048 |
Maturities/calls |  | (3,207) |  |  | — |  |  | (3,207) |
Unrealized loss included in other comprehensive loss |  | (4,270) |  |  | — |  |  | (4,270) |
Host contract executed |  | $ | — |  |  | $ | 787 |  |  | $ | 787 |
Balance at December 31, 2022 |  | $ | 35,343 |  |  | $ | 787 |  |  | $ | 36,130 |
Balance at December 31, 2020 |  | $ | 43,679 |  |  | $ | — |  |  | $ | 43,679 |
Purchase of securities |  | 3,862 |  |  | — |  |  | 3,862 |
Maturities/calls |  | (5,214) |  |  | — |  |  | (5,214) |
Unrealized loss included in other comprehensive income |  | (564) |  |  | — |  |  | (564) |
Balance at December 31, 2021 |  | $ | 41,763 |  |  | $ | — |  |  | $ | 41,763 |
Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value | The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2022 and 2021:
|  | Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands) |  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range
December 31, 2022 |  |  |  |  |  |  |  |
Nonrecurring measurements: |  |  |  |  |  |  |  |
Impaired loans |  | $ | 14,117 |  |  | Appraisal of collateral 1 |  | Appraisal adjustments 2 |  | 0% - 20%
|  |  |  |  |  | Liquidation expense 2 |  | 6%
Other real estate owned |  | $ | 1,194 |  |  | Appraisal of collateral 1 |  | Appraisal adjustments 2 |  | 0% - 20%
|  |  |  |  |  | Liquidation expense 2 |  | 6%
Other debt securities |  | $ | 7,500 |  |  | Net asset value |  | Cost minus impairment |  | 0%
Equity securities |  | $ | 33,362 |  |  | Net asset value |  | Cost minus impairment |  | 0%
Recurring measurements: |  |  |  |  |  |  |  |
Municipal securities 5 |  | $ | 35,343 |  |  | Appraisal of bond 3 |  | Bond appraisal adjustment 4 |  | 5% - 15%
Embedded Derivatives |  | $ | 787 |  |  | Monte Carlo pricing model |  | Deferred payment |  | $0 - $51.9 million
|  |  |  |  |  | Volatility |  | 58%
|  |  |  |  |  | Term |  | 5 years
|  |  |  |  |  | Risk free rate |  | 3.95%
|  | Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands) |  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range
December 31, 2021 |  |  |  |  |  |  |  |
Nonrecurring measurements: |  |  |  |  |  |  |  |
Impaired loans |  | $ | 21,980 |  |  | Appraisal of collateral 1 |  | Appraisal adjustments 2 |  | 10% - 20%
|  |  |  |  |  | Liquidation expense 2 |  | 5% - 10%
Other real estate owned |  | $ | 2,330 |  |  | Appraisal of collateral 1 |  | Appraisal adjustments 2 |  | 10% - 20%
|  |  |  |  |  | Liquidation expense 2 |  | 5% - 10%
Other debt securities |  | $ | 7,500 |  |  | Net asset value |  | Cost minus impairment |  | 0%
Equity securities |  | $ | 32,155 |  |  | Net asset value |  | Cost minus impairment |  | 0%
Recurring measurements: |  |  |  |  |  |  |  |
Municipal securities 5 |  | $ | 41,763 |  |  | Appraisal of bond 3 |  | Bond appraisal adjustment 4 |  | 1% - 20%
1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs which are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted-average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities.
Recurring |
Fair value of assets and liabilities |
Financial Assets and Liabilities Measured at Fair Value | The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2022 and 2021 by level within the fair value hierarchy:
|  | December 31, 2022
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
United States government agency securities |  | $ | — |  |  | $ | 44,814 |  |  | $ | — |  |  | $ | 44,814 |
United States sponsored mortgage-backed securities |  | — |  |  | 56,571 |  |  | — |  |  | 56,571 |
United States treasury securities |  | — |  |  | 120,909 |  |  | — |  |  | 120,909 |
Municipal securities |  | — |  |  | 103,293 |  |  | 35,343 |  |  | 138,636 |
Corporate debt securities |  | — |  |  | 10,560 |  |  | — |  |  | 10,560 |
Other securities |  | — |  |  | 824 |  |  | — |  |  | 824 |
Equity securities |  | 5,382 |  |  | — |  |  | — |  |  | 5,382 |
Loans held-for-sale |  | — |  |  | 24,898 |  |  | — |  |  | 24,898 |
Interest rate swap |  | — |  |  | 8,427 |  |  | — |  |  | 8,427 |
Bank-owned life insurance |  | — |  |  | 43,239 |  |  | — |  |  | 43,239 |
Embedded derivative |  | — |  |  | — |  |  | 787 |  |  | 787 |
Liabilities: |  |  |  |  |  |  |  |
Interest rate swap |  | — |  |  | 8,427 |  |  | — |  |  | 8,427 |
Fair value hedge |  | — |  |  | 572 |  |  | — |  |  | 572 |
|  | December 31, 2021
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
United States government agency securities |  | $ | — |  |  | $ | 40,437 |  |  | $ | — |  |  | $ | 40,437 |
United States sponsored mortgage-backed securities |  | — |  |  | 76,108 |  |  | — |  |  | 76,108 |
United States treasury securities |  | — |  |  | 110,389 |  |  | — |  |  | 110,389 |
Municipal securities |  | — |  |  | 133,249 |  |  | 41,763 |  |  | 175,012 |
Corporate debt securities |  | — |  |  | 11,142 |  |  | — |  |  | 11,142 |
Other securities |  | — |  |  | 878 |  |  | — |  |  | 878 |
Equity securities |  | 247 |  |  | — |  |  | — |  |  | 247 |
Interest rate swap |  | — |  |  | 6,702 |  |  | — |  |  | 6,702 |
Fair value hedge |  | — |  |  | 1,552 |  |  | — |  |  | 1,552 |
Bank-owned life insurance |  | — |  |  | 42,257 |  |  | — |  |  | 42,257 |
Liabilities: |  |  |  |  |  |  |  |
Interest rate swap |  | — |  |  | 6,702 |  |  | — |  |  | 6,702 |
Fair value hedge |  | — |  |  | 807 |  |  | — |  |  | 807 |
Non-recurring |
Fair value of assets and liabilities |
Financial Assets and Liabilities Measured at Fair Value | Assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021 are included in the table below:
|  | December 31, 2022
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Impaired loans |  | $ | — |  |  | $ | — |  |  | $ | 14,117 |  |  | $ | 14,117 |
Other real estate owned |  | — |  |  | — |  |  | 1,194 |  |  | 1,194 |
Other debt securities |  | — |  |  | — |  |  | 7,500 |  |  | 7,500 |
Equity securities |  | — |  |  | — |  |  | 33,362 |  |  | 33,362 |
|  | December 31, 2021
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Impaired loans |  | $ | — |  |  | $ | — |  |  | $ | 21,980 |  |  | $ | 21,980 |
Other real estate owned |  | — |  |  | — |  |  | 2,330 |  |  | 2,330 |
Other debt securities |  | — |  |  | — |  |  | 7,500 |  |  | 7,500 |
Equity securities |  | — |  |  | — |  |  | 32,155 |  |  | 32,155 |

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 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 (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 3: 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
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_FairValueByMeasurementFrequencyAxis=us-gaap_FairValueMeasurementsRecurringMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |

X
- Details
Name: | us-gaap_FairValueByMeasurementFrequencyAxis=us-gaap_FairValueMeasurementsNonrecurringMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |