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Fair Value Measurements and Disclosure (Tables) | 9 Months Ended
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Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Schedule of Fair Value of Financial Instruments | The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated:
September 30, 2021
(in 000's) | Carrying Amount |  | Estimated Fair Value |  | Quoted Prices In Active Markets for Identical Assets Level 1 |  | Significant Other Observable Inputs Level 2 |  | Significant Unobservable Inputs Level 3
Financial Assets: |  |  |  |  |  |  |  |  |
Investment securities | 165,508 |  |  | 165,508 |  |  | 3,776 |  |  | 161,732 |  |  | — |
Loans | 799,970 |  |  | 798,407 |  |  | — |  |  | — |  |  | 798,407 |
Accrued interest receivable | 8,246 |  |  | 8,246 |  |  | — |  |  | 8,246 |  |  | — |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |
Noninterest-bearing | 455,584 |  |  | 455,584 |  |  | 455,584 |  |  | — |  |  | — |
NOW and money market | 514,878 |  |  | 514,878 |  |  | 514,878 |  |  | — |  |  | — |
Savings | 110,005 |  |  | 110,005 |  |  | 110,005 |  |  | — |  |  | — |
Time deposits | 70,248 |  |  | 70,305 |  |  | — |  |  | — |  |  | 70,305 |
Total deposits | 1,150,715 |  |  | 1,150,772 |  |  | 1,080,467 |  |  | — |  |  | 70,305 |
Junior subordinated debt | 11,295 |  |  | 11,295 |  |  | — |  |  | — |  |  | 11,295 |
December 31, 2020
(in 000's) | Carrying Amount |  | Estimated Fair Value |  | Quoted Prices In Active Markets for Identical Assets Level 1 |  | Significant Other Observable Inputs Level 2 |  | Significant Unobservable Inputs Level 3
Financial Assets: |  |  |  |  |  |  |  |  |
Investment securities | 86,192 |  |  | 86,192 |  |  | 3,851 |  |  | 82,341 |  |  | — |
Loans | 645,825 |  |  | 636,470 |  |  | — |  |  | — |  |  | 636,470 |
Accrued interest receivable | 8,164 |  |  | 8,164 |  |  | — |  |  | 8,164 |  |  | — |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |
Noninterest-bearing | 391,897 |  |  | 430,210 |  |  | 430,210 |  |  | — |  |  | — |
NOW and money market | 402,566 |  |  | 406,707 |  |  | 406,707 |  |  | — |  |  | — |
Savings | 96,669 |  |  | 94,467 |  |  | 94,467 |  |  | — |  |  | — |
Time deposits | 61,519 |  |  | 61,519 |  |  | — |  |  | — |  |  | 61,519 |
Total deposits | 952,651 |  |  | 992,903 |  |  | 931,384 |  |  | — |  |  | 61,519 |
Junior subordinated debt | 10,924 |  |  | 10,924 |  |  | — |  |  | — |  |  | 10,924 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis | The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of September 30, 2021 (in 000’s):
Description of Assets | September 30, 2021 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  |  |  |
AFS Securities (2): |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | $ | 36,038 |  |  | $ | — |  |  | $ | 36,038 |  |  | $ | — |  |  |  |  |
U.S. Government collateralized mortgage obligations | 65,032 |  |  | — |  |  | 65,032 |  |  | — |  |  |  |  |
Asset-backed securities | 4,696 |  |  | — |  |  | 4,696 |  |  | — |  |  |  |  |
Municipal bonds | 50,457 |  |  | — |  |  | 50,457 |  |  | — |  |  |  |  |
Corporate bond | 5,509 |  |  | — |  |  | 5,509 |  |  | — |  |  |  |  |
Total AFS securities | 161,732 |  |  | — |  |  | 161,732 |  |  | — |  |  |  |  |
Marketable equity securities (2) | 3,776 |  |  | 3,776 |  |  | — |  |  | — |  |  |  |  |
Total | $ | 165,508 |  |  | $ | 3,776 |  |  | $ | 161,732 |  |  | $ | — |  |  |  |  |
Description of Liabilities | September 30, 2021 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Junior subordinated debt (2) | $ | 11,295 |  |  | — |  |  | — |  |  | $ | 11,295 |
Total | $ | 11,295 |  |  | — |  |  | — |  |  | $ | 11,295 |
(1)Nonrecurring (2)Recurring There were no non-recurring fair value adjustments at September 30, 2021. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2020 (in 000’s):
Description of Assets | December 31, 2020 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
AFS Securities (2): |  |  |  |  |  |  |
U.S. Government agencies | $ | 33,710 |  |  | $ | — |  |  | $ | 33,710 |  |  | $ | — |
U.S. Government collateralized mortgage obligations | 38,445 |  |  | — |  |  | 38,445 |  |  |
Asset-backed securities | 3,909 |  |  | — |  |  | 3,909 |  |  |
Municipal bonds | 1,058 |  |  | — |  |  | 1,058 |  |  |
Corporate bonds | 5,219 |  |  | — |  |  | 5,219 |  |  | — |
Total AFS securities | 82,341 |  |  | — |  |  | 82,341 |  |  | — |
Marketable equity securities (2) | 3,851 |  |  | 3,851 |  |  | — |  |  | — |
Impaired Loans (1): |  |  |  |  |  |  |
RE construction & development | 3,364 |  |  | — |  |  | — |  |  | 3,364 |
Total impaired loans | 3,364 |  |  | — |  |  | — |  |  | 3,364 |
Other real estate owned (1) | 5,004 |  |  | — |  |  | — |  |  | 5,004 |
Total | $ | 94,560 |  |  | $ | 3,851 |  |  | $ | 82,341 |  |  | $ | 8,368 |
Description of Liabilities | December 31, 2020 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Junior subordinated debt (2) | $ | 10,924 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,924 |
Total | $ | 10,924 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,924 |
(1)Nonrecurring (2)Recurring
Schedule of Quantitative Information About Level 3 Fair Value Measurements | The following table presents quantitative information about Level 3 fair value measurements for the Company's assets measured at fair value on a non-recurring basis at December 31, 2020 (in 000's).
December 31, 2020
Financial Instrument | Fair Value | Valuation Technique | Unobservable Input | Adjustment Percentage
Impaired Loans: |  |  |  |
RE construction & development | $3,364 | Fair Value of Collateral Method for Collateral Dependent Loans | Adjustment for difference between appraised value and net realizable value | 7.02%
Other real estate owned | $5,004 | Fair Value of Collateral Method for Collateral Dependent Loans | Adjustment for difference between appraised value and net realizable value | 13.69%
The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020:
September 30, 2021 |  | December 31, 2020
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average |  | Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average
Junior Subordinated Debt | Discounted cash flow | Market credit risk adjusted spreads | 3.84% |  | Junior Subordinated Debt | Discounted cash flow | Market credit risk adjusted spreads | 3.57%
Schedule of Significant Unobservable Inputs (Level 3) on a Recurring Basis | The following tables provide a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2021 and 2020 (in 000’s):
| Three Months Ended September 30, 2021 |  | Three Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2021 |  | Nine Months Ended September 30, 2020
Reconciliation of Liabilities: | Junior Subordinated Debt |  | Junior Subordinated Debt |  | Junior Subordinated Debt |  | Junior Subordinated Debt
Beginning balance | $ | 11,253 |  |  | $ | 9,771 |  |  | $ | 10,924 |  |  | $ | 10,808 |
Gross (gain) loss included in earnings | 35 |  |  | 18 |  |  | 691 |  |  | (1,451) |
Gross loss (gain) related to changes in instrument specific credit risk | 8 |  |  | 326 |  |  | (317) |  |  | 779 |
Change in accrued interest | (1) |  |  | (34) |  |  | (3) |  |  | (55) |
Ending balance | $ | 11,295 |  |  | $ | 10,081 |  |  | $ | 11,295 |  |  | $ | 10,081 |
The amount of total (gain) loss for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date | $ | 35 |  |  | $ | 18 |  |  | $ | 691 |  |  | $ | (1,451) |

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&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 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=123874694&loc=SL7498348-110258 Reference 4: 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 http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes 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 liability. + 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 (c) -URI http://asc.fasb.org/extlink&oid=123874694&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 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 + Details
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