Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.20.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the assets and liabilities measured at fair value on a recurring basis:

 

 

 

December 31, 2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in thousands)

 

State and municipal obligations

 

$

 

 

$

37,185

 

 

$

 

 

$

37,185

 

Residential mortgage-backed securities

 

 

 

 

 

132,142

 

 

 

 

 

 

132,142

 

Corporate bonds

 

 

 

 

 

43,093

 

 

 

 

 

 

43,093

 

Equity securities at fair value

 

 

24,000

 

 

 

 

 

 

 

 

 

24,000

 

SBA servicing rights

 

 

 

 

 

 

 

 

2,953

 

 

 

2,953

 

Customer interest rate swaps

 

 

 

 

 

3,009

 

 

 

 

 

 

3,009

 

Correspondent interest rate swaps

 

 

 

 

 

(3,009

)

 

 

 

 

 

(3,009

)

 

 

 

December 31, 2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasuries

 

$

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

 

 

 

$

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

 

 

 

December 31,

 

 

 

2019

 

 

2019

 

 

 

(Dollars in thousands)

 

Assets (classified in Level 3)

 

 

 

 

 

 

 

 

Impaired loans

 

$

4,948

 

 

$

3,990

 

Other real estate owned and repossessed assets

 

 

133

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

Range/Weighted

 

Level 3 Asset

 

Fair Value

 

 

Valuation Technique

 

Unobservable Inputs

 

Average

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

4,948

 

 

Third party appraisals

 

Collateral discounts

 

0.0% - 100.0% (34.1%)

 

Other real estate

   owned

 

 

133

 

 

Third party appraisals

 

Collateral discounts and estimated cost to sell

 

 

10.0

%

Recurring:

 

 

 

 

 

 

 

 

 

 

 

 

SBA servicing assets

 

 

2,953

 

 

Discounted cash flows

 

Conditional prepayment rate

 

 

12.5

%

 

 

 

 

 

 

 

 

Discount rate

 

 

10.0

%

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

3,990

 

 

Third party appraisals

 

Collateral discounts

 

0.0% - 100.0% (23.9%)

 

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

 

 

13.3

%

 

 

 

 

 

 

 

 

Discount rate

 

 

10.8

%

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:

 

 

 

Carrying

 

 

Fair

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

Value

 

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

263,034

 

 

$

263,034

 

 

$

263,034

 

 

$

 

 

$

 

Equity investments at fair value

 

 

24,000

 

 

 

24,000

 

 

 

24,000

 

 

 

 

 

 

 

Available for sale securities

 

 

212,420

 

 

 

212,420

 

 

 

 

 

 

212,420

 

 

 

 

FHLB and other bank stock

 

 

5,718

 

 

 

5,718

 

 

 

 

 

 

5,718

 

 

 

 

Loans, net

 

 

2,372,506

 

 

 

2,364,646

 

 

 

 

 

 

 

 

 

2,364,646

 

Loans held for sale

 

 

1,470

 

 

 

1,598

 

 

 

 

 

 

1,598

 

 

 

 

Accrued interest receivable

 

 

11,199

 

 

 

11,199

 

 

 

 

 

 

11,199

 

 

 

 

Bank-owned life insurance

 

 

15,969

 

 

 

15,969

 

 

 

 

 

 

15,969

 

 

 

 

SBA servicing rights

 

 

2,953

 

 

 

2,953

 

 

 

 

 

 

 

 

 

2,953

 

Customer interest rate swaps

 

 

3,009

 

 

 

3,009

 

 

 

 

 

 

3,009

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

2,459,135

 

 

$

2,427,412

 

 

$

 

 

$

2,427,412

 

 

$

 

Accrued interest payable

 

 

1,303

 

 

 

1,303

 

 

 

 

 

 

1,303

 

 

 

 

Short-term borrowings

 

 

10,000

 

 

 

10,136

 

 

 

 

 

 

10,136

 

 

 

 

Long-term borrowings

 

 

242,020

 

 

 

245,311

 

 

 

 

 

 

245,311

 

 

 

 

Correspondent interest rate swaps

 

 

3,009

 

 

 

3,009

 

 

 

 

 

 

3,009

 

 

 

 

 

 

 

Carrying

 

 

Fair

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

Value

 

 

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

 

 

 

 

 

 

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