XML 40 R32.htm IDEA: XBRL DOCUMENT
v3.23.3

Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Fair Value, by Balance Sheet Grouping | The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2023 and December 31, 2022 are as follows:
| Fair Value Measurements
(dollars in thousands) | Carrying Value |  | Estimated Fair Value |  | Level 1 |  | Level 2 |  | Level 3
September 30, 2023 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Cash and short-term investments | $ | 141,340 |  |  | $ | 141,340 |  |  | $ | 141,340 |  |  | $ | — |  |  | $ | — |
Investment securities available for sale | 399,547 |  |  | 399,547 |  |  | — |  |  | 386,102 |  |  | 13,445 |
Investment securities held to maturity | 451,056 |  |  | 385,065 |  |  | — |  |  | 385,065 |  |  | — |
Other investments, at cost | 17,323 |  |  | 17,323 |  |  | — |  |  | 17,323 |  |  | — |
Loans held for sale | 27,246 |  |  | 27,246 |  |  | — |  |  | 27,246 |  |  | — |
Loans, net | 1,847,603 |  |  | 1,638,269 |  |  | — |  |  | — |  |  | 1,638,269 |
Derivative instruments | 914 |  |  | 914 |  |  | — |  |  | 914 |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |
Deposits | 2,591,332 |  |  | 2,582,790 |  |  | — |  |  | 2,582,790 |  |  | — |
Federal Home Loan Bank advances | 185,000 |  |  | 189,065 |  |  | — |  |  | 189,065 |  |  | — |
Other borrowings | 63,422 |  |  | 48,475 |  |  | — |  |  | 48,475 |  |  | — |
| Fair Value Measurements
(dollars in thousands) | Carrying Value |  | Estimated Fair Value |  | Level 1 |  | Level 2 |  | Level 3
December 31, 2022 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Cash and short-term investments | $ | 80,678 |  |  | $ | 80,678 |  |  | $ | 80,678 |  |  | $ | — |  |  | $ | — |
Investment securities available for sale | 432,553 |  |  | 432,553 |  |  | — |  |  | 416,957 |  |  | 15,596 |
Investment securities held to maturity | 465,858 |  |  | 411,264 |  |  | — |  |  | 411,264 |  |  | — |
Other investments, at cost | 13,793 |  |  | 13,793 |  |  | — |  |  | 13,003 |  |  | 790 |
Loans held for sale | 17,743 |  |  | 17,743 |  |  | — |  |  | 17,743 |  |  | — |
Loans, net | 1,720,978 |  |  | 1,469,707 |  |  | — |  |  | — |  |  | 1,469,707 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits | 2,490,997 |  |  | 2,489,481 |  |  | — |  |  | 2,489,481 |  |  | — |
Federal Home Loan Bank advances | 125,000 |  |  | 125,163 |  |  | — |  |  | 125,163 |  |  | — |
Other borrowings | 78,352 |  |  | 69,930 |  |  | — |  |  | 69,930 |  |  | — |
Fair Value Measurements, Recurring and Nonrecurring | The following tables present the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of September 30, 2023 and December 31, 2022, aggregated by the level in the fair value hierarchy within which those measurements fall. The tables below include only collateral dependent impaired loans with a specific reserve and only other real estate properties with a valuation allowance at September 30, 2023 and December 31, 2022. Those impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.
|  |  | Fair Value Measurements at Reporting Date Using
(dollars in thousands) | Total Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
September 30, 2023 |  |  |  |  |  |  |
Nonrecurring |  |  |  |  |  |  |
Collateral dependent impaired loans | $ | 628 |  |  | $ | — |  |  | $ | — |  |  | $ | 628 |
Other real estate owned | 812 |  |  | — |  |  | — |  |  | 812 |
Total nonrecurring assets | $ | 1,440 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,440 |
|  |  | Fair Value Measurements at Reporting Date Using
(dollars in thousands) | Total Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
December 31, 2022 |  |  |  |  |  |  |
Nonrecurring |  |  |  |  |  |  |
Collateral dependent impaired loans | $ | 521 |  |  | $ | — |  |  | $ | — |  |  | $ | 521 |
Other real estate owned | 651 |  |  | — |  |  | — |  |  | 651 |
Total nonrecurring assets | $ | 1,172 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,172 |
Fair Value Measurement Inputs and Valuation Techniques | The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at September 30, 2023 and December 31, 2022. This table is comprised primarily of collateral dependent impaired loans and other real estate owned:
(dollars in thousands) | September 30, 2023 |  | Valuation Techniques |  | Unobservable Inputs |  | Range Weighted Avg
Collateral dependent impaired loans | $ | 628 |  |  | Appraised Value |  | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell |  | — | % |  | 50 | %
Other real estate owned | 812 |  |  | Appraised Value/Comparable Sales |  | Discounts to reflect current market conditions and estimated costs to sell |  | — | % |  | 20 | %
(dollars in thousands) | December 31, 2022 |  | Valuation Techniques |  | Unobservable Inputs |  | Range Weighted Avg
Collateral dependent impaired loans | $ | 521 |  |  | Appraised Value |  | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell |  | 25 | % |  | 50 | %
Other real estate owned | 651 |  |  | Appraised Value/Comparable Sales |  | Discounts to reflect current market conditions and estimated costs to sell |  | — | % |  | 20 | %
The following table presents quantitative information about recurring level 3 fair value measurements as of September 30, 2023 and December 31, 2022.
| As of September 30, 2023
(dollars in thousands) | Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Range (Weighted Avg)
Available for sale securities | $ | 13,445 |  |  | Discounted Cash Flow |  | Discount Rate or Yield |  | N/A*
Other investments | — |  |  | Discounted Cash Flow |  | Discount Rate or Yield |  | N/A*
| As of December 31, 2022
(dollars in thousands) | Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Range (Weighted Avg)
Available for sale securities | $ | 15,596 |  |  | Discounted Cash Flow |  | Discount Rate or Yield |  | N/A*
Other investments | 790 |  |  | Discounted Cash Flow |  | Discount Rate or Yield |  | N/A*
* The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the three and nine months ended September 30, 2023.
| Three Months Ended |  | Nine Months Ended
| September 30, 2023 |  | September 30, 2023
(dollars in thousands) | Available for sale securities |  | Other Investments |  | Available for sale securities |  | Other Investments
Balance, Beginning | $ | 13,805 |  |  | $ | — |  |  | $ | 15,596 |  |  | $ | 790 |
Redemptions/Payments | (482) |  |  | — |  |  | (2,137) |  |  | (800) |
Fair value adjustments | 122 |  |  | — |  |  | (394) |  |  | 10 |
Transfer to Level 3 | — |  |  | — |  |  | 380 |  |  | — |
Balance, Ending | $ | 13,445 |  |  | $ | — |  |  | $ | 13,445 |  |  | $ | — |

X
- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are 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. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2C -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2C Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482907/825-10-50-11 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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