Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.20.2
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present the assets and liabilities measured at fair value on a recurring basis for the periods presented:

 

 

 

September 30, 2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

5,517

 

 

$

 

 

$

 

 

$

5,517

 

State and municipal obligations

 

 

 

 

 

2,478

 

 

 

 

 

 

2,478

 

Residential mortgage-backed securities

 

 

 

 

 

79,460

 

 

 

 

 

 

79,460

 

Corporate Bonds

 

 

 

 

 

32,359

 

 

 

 

 

 

32,359

 

SBA servicing rights

 

 

 

 

 

 

 

 

3,051

 

 

 

3,051

 

Total

 

$

5,517

 

 

$

114,297

 

 

$

3,051

 

 

$

122,865

 

 

 

 

December 31, 2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

60,371

 

 

$

-

 

 

$

 

 

$

60,371

 

State and municipal obligations

 

 

 

 

 

7,981

 

 

 

 

 

 

7,981

 

Residential mortgage-backed securities

 

 

 

 

 

28,585

 

 

 

 

 

 

28,585

 

SBA servicing rights

 

 

 

 

 

 

 

 

3,355

 

 

 

3,355

 

Total

 

$

60,371

 

 

$

36,566

 

 

$

3,355

 

 

$

100,292

 

Schedule of Assets Measured at Fair Value on Non-Recurring Basis

The following tables provide information about certain assets measured at fair value on a non-recurring basis:

 

 

 

Estimated Fair Value

 

 

 

September 30,

2020

 

 

December 31,

2019

 

 

 

(Dollars in thousands)

 

Assets (classified in Level 3):

 

 

 

 

 

 

 

 

Impaired loans

 

$

5,631

 

 

$

3,990

 

Other real estate and repossessed assets

 

 

302

 

 

 

3,653

 

 

Significant Unobservable Inputs Used in Recurring and Non-Recurring Fair Value Measurements

The following tables show significant unobservable inputs used in the recurring and non-recurring fair value measurements of Level 3 assets:

 

Level 3 Asset

 

Fair Value

 

 

Valuation Technique

 

Unobservable Inputs

 

Range/Weighted

Average

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

5,631

 

 

Third party appraisals

 

Collateral discounts

 

0.0% - 100.0% (31.6%)

 

Other real estate owned

 

 

302

 

 

Third party appraisals

 

Collateral discounts and estimated cost to sell

 

 

10.0

%

Recurring:

 

 

 

 

 

 

 

 

 

 

 

 

SBA servicing assets

 

 

3,051

 

 

Discounted cash flows

 

Conditional prepayment rate

 

 

12.2

%

 

 

 

 

 

 

 

 

Discount rate

 

 

10.0

%

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

3,990

 

 

Third party appraisals

 

Collateral discounts

 

0.0% - 100.0% (19.2%)

 

Other real estate owned

 

 

3,653

 

 

Third party appraisals

 

Collateral discounts and estimated cost to sell

 

 

10.0

%

Recurring:

 

 

 

 

 

 

 

 

 

 

 

 

SBA servicing assets

 

 

3,355

 

 

Discounted cash flows

 

Conditional prepayment rate

 

 

11.8

%

 

 

 

 

 

 

 

 

Discount rate

 

 

11.5

%

Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows for the periods presented:

 

September 30, 2020

 

Carrying

Value

 

 

Fair

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

151,084

 

 

$

151,084

 

 

$

151,084

 

 

$

 

 

$

 

Time deposits in other banks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities

 

 

119,814

 

 

 

119,814

 

 

 

5,517

 

 

 

114,297

 

 

 

 

FHLB and other bank stock

 

 

5,709

 

 

 

5,709

 

 

 

 

 

 

5,709

 

 

 

 

Loans, net

 

 

2,440,146

 

 

 

2,421,367

 

 

 

 

 

 

 

 

 

2,421,367

 

Loans held for sale

 

 

4,287

 

 

 

4,665

 

 

 

 

 

 

4,665

 

 

 

 

Accrued interest receivable

 

 

11,612

 

 

 

11,612

 

 

 

 

 

 

11,612

 

 

 

 

Bank-owned life insurance

 

 

15,878

 

 

 

15,878

 

 

 

 

 

 

15,878

 

 

 

 

SBA servicing rights

 

 

3,051

 

 

 

3,051

 

 

 

 

 

 

 

 

 

3,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

2,287,516

 

 

$

2,290,652

 

 

$

 

 

$

2,290,652

 

 

$

 

Accrued interest payable

 

 

1,321

 

 

 

1,321

 

 

 

 

 

 

1,321

 

 

 

 

Short-term borrowings

 

 

10,000

 

 

 

10,092

 

 

 

 

 

 

10,000

 

 

 

 

Long-term borrowings

 

 

267,746

 

 

 

270,209

 

 

 

 

 

 

270,209

 

 

 

 

 

December 31, 2019

 

Carrying

Value

 

 

Fair

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

325,957

 

 

$

325,957

 

 

$

325,957

 

 

$

 

 

$

 

Time deposits in other banks

 

 

490

 

 

 

490

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities

 

 

96,937

 

 

 

96,937

 

 

 

 

 

 

96,937

 

 

 

 

FHLB and other bank stock

 

 

8,310

 

 

 

8,310

 

 

 

 

 

 

8,310

 

 

 

 

Loans, net

 

 

1,760,445

 

 

 

1,758,511

 

 

 

 

 

 

 

 

 

1,758,511

 

Loans held for sale

 

 

3,989

 

 

 

4,307

 

 

 

 

 

 

4,307

 

 

 

 

Accrued interest receivable

 

 

6,507

 

 

 

6,507

 

 

 

 

 

 

6,507

 

 

 

 

Bank-owned life insurance

 

 

15,610

 

 

 

15,610

 

 

 

 

 

 

15,610

 

 

 

 

SBA servicing rights

 

 

3,355

 

 

 

3,355

 

 

 

 

 

 

 

 

 

3,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

1,928,126

 

 

$

1,855,491

 

 

$

 

 

$

1,855,491

 

 

$

 

Accrued interest payable

 

 

1,219

 

 

 

1,219

 

 

 

 

 

 

1,219

 

 

 

 

Short-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term borrowings

 

 

105,140

 

 

 

102,488

 

 

 

 

 

 

102,488