XML 46 R35.htm IDEA: XBRL DOCUMENT v3.21.2

Fair Value Measurements and Disclosure (Tables)

9 Months Ended

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)

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
-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

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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

+ 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 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611

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 (a)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

+ 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

X

- 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

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