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Fair Value of Financial Instruments | 12 Months Ended
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Dec. 31, 2020
Investments All Other Investments [Abstract] |
Fair Value of Financial Instruments | (16) FAIR VALUE OF FINANCIAL INSTRUMENTS FASB ASC Topic 825, “Financial Instruments,” requires disclosure of fair value information about certain financial instruments, whether assets, liabilities, or off-balance-sheet commitments, if practicable. The following methods and assumptions were used to estimate the fair value of each class of financial instrument. Fair value estimates that were derived from broker quotes cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.
| (a) | Cash – Book value equals fair value.
| (b) | Equity securities – The Company’s equity securities are recorded at cost less impairment plus or minus observable price changes.
| (c) | Investment securities – The Company’s investments are recorded at the estimated fair value of such investments.
| (d) | Loans receivable – The Company’s loans are recorded at book value which approximated fair value.
| (e) | Floating rate borrowings – Due to the short-term nature of these instruments, the carrying amount approximates fair value.
| (f) | Commitments to extend credit – The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and present creditworthiness of the counter parties. For fixed rate loan commitments, fair value also includes a consideration of the difference between the current levels of interest rates and the committed rates. At December 31, 2020 and December 31, 2019, the estimated fair value of these off-balance-sheet instruments was not material.
| (g) | Fixed rate borrowings – The fair value of the debentures payable to the SBA is estimated based on current market interest rates for similar debt.
|  | December 31, 2020 |  |  | December 31, 2019 |
(Dollars in thousands) |  | Carrying Amount |  |  | Fair Value |  |  | Carrying Amount |  |  | Fair Value |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash, cash equivalents, and federal funds sold (1) |  | $ | 112,040 |  |  | $ | 112,040 |  |  | $ | 67,821 |  |  | $ | 67,821 |
Equity investments |  |  | 9,746 |  |  |  | 9,746 |  |  |  | 10,079 |  |  |  | 10,079 |
Investment securities |  |  | 46,792 |  |  |  | 46,792 |  |  |  | 48,998 |  |  |  | 48,998 |
Loans receivable |  |  | 1,172,290 |  |  |  | 1,172,290 |  |  |  | 1,114,762 |  |  |  | 1,114,762 |
Accrued interest receivable (2) |  |  | 10,338 |  |  |  | 10,338 |  |  |  | 8,662 |  |  |  | 8,662 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Funds borrowed (3) |  |  | 1,312,255 |  |  |  | 1,312,591 |  |  |  | 1,169,593 |  |  |  | 1,171,274 |
Accrued interest payable (2) |  |  | 4,673 |  |  |  | 4,673 |  |  |  | 4,398 |  |  |  | 4,398 |
(1) | Categorized as level 1 within the fair value hierarchy, excluding $1,500 of interest-bearing deposits categorized as level 2. See Note 17.
(2) | Categorized as level 3 within the fair value hierarchy. See Note 17.
(3) | As of December 31, 2020 and 2019, publicly traded unsecured notes traded at a premium to par of $336 and $1,681.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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