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Fair Value (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis at September 30, 2021 are summarized below:

			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
Financial assets
Investment securities available for sale			$	—					$	32,535					$	—					$	32,535
Residential loans held for sale			28,798						62,445						—						91,243
SBA loans held for investment, at fair value			—						—						9,805						9,805
Interest rate lock commitments			—						—						1,579						1,579
Mandatory forward sales contracts			1,004						—						—						1,004
Best efforts forward sales contracts			—						—						30						30
Financial liabilities
Interest rate lock commitments			$	—					$	—					$	335					$	335
Mandatory forward sales contracts			44						—						—						44

Assets and liabilities measured at fair value on a recurring basis at December 31, 2020 are summarized below:

			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
Financial assets
Residential loans held for sale			$	21,888					$	186,816					$	—					$	208,704
SBA loans held for investment, at fair value			—						—						9,264						9,264
Interest rate lock commitments			—						—						7,565						7,565
Best efforts forward sales contracts			—						—						55						55
Financial liabilities
Interest rate lock commitments			$	—					$	—					$	12					$	12
Mandatory forward sales contracts			4,455						—						—						4,455

Schedule of fair value for loans

The aggregate fair value, contractual balance, and gain at September 30, 2021 and December 31, 2020 for residential loans held for sale were as follows:

			September 30, 2021						December 31, 2020
Aggregate fair value			$	91,243					$	208,704
Contractual balance			88,682						199,975
Gain			$	2,561					$	8,729

The total amount of gains and losses from changes in fair value and interest income included in earnings for the nine months ended September 30, 2021 and 2020 for residential loans held for sale were as follows:

			Nine Months Ended September 30,
			2021						2020
Interest income			$	2,770					$	1,904
Change in fair value			(6,168)						3,190
Total gain (loss)			$	(3,398)					$	5,094

The aggregate fair value, contractual balance, and gain (loss) at September 30, 2021 and December 31, 2020 for SBA loans held for investment, at fair value, were as follows:

			September 30, 2021						December 31, 2020
Aggregate fair value			$	9,805					$	9,264
Contractual balance			9,657						9,266
Gain (loss)			$	148					$	(2)

The total amount of gains and losses from changes in fair value and interest income included in earnings for the nine months ended September 30, 2021 and 2020 for SBA loans held for investment, at fair value, were as follows:

			Nine Months Ended September 30,
			2021						2020
Interest income			$	462					$	465
Change in fair value			151						49
Total gain			$	613					$	514

Schedule of valuation technique and unobservable inputs used in the valuation of SBA loans held for investment, at fair value

The table below presents a reconciliation of SBA loans held for investment, at fair value, which were valued on a recurring basis and used significant unobservable inputs (Level 3) for the nine months ended September 30, 2021 and 2020:

			Nine Months Ended September 30,
			2021						2020
Balance of SBA loans held for investment at fair value, beginning of period			$	9,264					$	10,341
Principal payments			(1,003)						(771)
Charge-offs			(8)						(65)
Repurchase of guaranteed balances previously participated			1,401						—
Total gains during the period			151						49
Balance of SBA loans held for investment at fair value, end of period			$	9,805					$	9,554

The following table provides information about the valuation techniques and unobservable inputs used in the valuation of SBA loans held for investment, at fair value, falling within Level 3 of the fair value hierarchy at September 30, 2021 and December 31, 2020:

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted Average)

September 30, 2021

SBA loans held for investment, at fair value

$

9,805

Discounted cash flow

Discount Rate

3.14%-6.63% (4.13%)

Conditional Prepayment Rate

10.56%-10.56% (10.56%)

December 31, 2020

SBA loans held for investment, at fair value

$

9,264

Discounted cash flow

Discount Rate

3.24%-6.74% (4.37%)

Conditional Prepayment Rate

10.53%-10.56% (10.55%)

Schedule of assets measured at fair value on a nonrecurring basis

Assets measured at fair value on a nonrecurring basis at September 30, 2021 are summarized below:

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Discount % Range/Amount

Impaired loans

$

1,396

Discount appraisals, estimated net realizable value of collateral

Collateral discounts

10%

Assets measured at fair value on a nonrecurring basis at December 31, 2020 are summarized below:

Fair Value

Valuation Technique(s)

Significant Unobservable Input(s)

Discount % Range/Amount

Impaired loans

$

1,583

Discount appraisals, estimated net realizable value of collateral

Collateral discounts

20-75%

Summary of the carrying values and estimated values of financial instruments not carried at fair value

The carrying values and estimated fair values of financial instruments not carried at fair value, at September 30, 2021 and December 31, 2020 are as follows:

									September 30, 2021												December 31, 2020
			Level						Carrying Value						Fair Value						Carrying Value						Fair Value
Assets:
Cash and cash equivalents			1						$	107,097					$	107,097					$	55,379					$	55,379
Time deposits in banks			2						2,381						2,492						2,381						2,521
Investment securities held to maturity			2						3						2						41						39
Restricted equity securities, at cost			2						2,827						2,827						2,362						2,362
Loans held for investment, at amortized cost			3						629,873						638,060						1,197,896						1,213,967
Accrued interest receivable			3						4,292						4,292						7,300						7,300
SBA loan servicing rights			3						5,933						7,615						8,160						9,709
Mortgage loan servicing rights			3						222						222						—						—
Liabilities:
Noninterest-bearing deposits			2						$	87,625					$	87,625					$	62,650					$	62,650
Interest-bearing transaction accounts			2						157,304						157,304						140,265						140,265
Savings and money market deposits			2						377,452						377,452						286,744						286,744
Time deposits			2						52,653						53,033						69,125						69,743
Subordinated debentures			2						5,983						6,623						5,948						6,516
Notes payable			2						3,413						3,413						3,754						3,754
PPP Liquidity Facility			3						144,601						144,601						881,262						881,262
Accrued interest payable			3						562						562						1,999						1,999

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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).

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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