Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.21.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2021
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:

 

 

 

March 31, 2021

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal obligations

 

 

 

 

 

34,409

 

 

 

 

 

 

34,409

 

Residential mortgage-backed securities

 

 

 

 

 

364,709

 

 

 

 

 

 

364,709

 

SBA servicing rights

 

 

 

 

 

 

 

 

2,821

 

 

 

2,821

 

Equity securities at fair value

 

 

23,741

 

 

 

 

 

 

 

 

 

23,741

 

Corporate Bonds

 

 

 

 

 

43,458

 

 

 

 

 

 

43,458

 

Customer interest rate swaps

 

 

 

 

 

1,492

 

 

 

 

 

 

1,492

 

Cash flow hedge derivative

 

 

 

 

 

1,601

 

 

 

 

 

 

1,601

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Correspondent interest rate swaps

 

 

 

 

 

1,492

 

 

 

 

 

 

1,492

 

Total

 

$

23,741

 

 

$

447,161

 

 

$

2,821

 

 

$

473,723

 

 

 

 

December 31, 2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal obligations

 

 

 

 

 

37,185

 

 

 

 

 

 

37,185

 

Residential mortgage-backed securities

 

 

 

 

 

132,142

 

 

 

 

 

 

132,142

 

SBA servicing rights

 

 

 

 

 

 

 

 

2,953

 

 

 

2,953

 

Equity securities at fair value

 

 

24,000

 

 

 

 

 

 

 

 

 

 

 

24,000

 

Corporate Bonds

 

 

 

 

 

43,093

 

 

 

 

 

 

 

43,093

 

Customer interest rate swaps

 

 

 

 

 

3,009

 

 

 

 

 

 

 

3,009

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Correspondent interest rate swaps

 

 

 

 

 

3,009

 

 

 

 

 

 

 

3,009

 

Total

 

$

24,000

 

 

$

218,438

 

 

$

2,953

 

 

$

245,391

 

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

 

 

 

March 31,

2021

 

 

December 31,

2020

 

 

 

(Dollars in thousands)

 

Assets (classified in Level 3):

 

 

 

 

 

 

 

 

Impaired loans

 

$

7,337

 

 

$

4,948

 

Other real estate and repossessed assets

 

 

-

 

 

 

133

 

 

 

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

 

March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring:

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

7,337

 

 

Third party appraisals

 

Collateral discounts

 

0.0% - 100.0% (41.9%)

 

Other real estate owned

 

 

-

 

 

Third party appraisals

 

Collateral discounts and estimated cost to sell

 

 

10.0

%

Recurring:

 

 

 

 

 

 

 

 

 

 

 

 

SBA servicing assets

 

 

2,821

 

 

Discounted cash flows

 

Conditional prepayment rate

 

 

12.6

%

 

 

 

 

 

 

 

 

Discount rate

 

 

10.0

%

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

%

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:

 

March 31, 2021

 

Carrying

Value

 

 

Fair

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(Dollars in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

69,566

 

 

$

69,566

 

 

$

69,566

 

 

$

 

 

$

 

Equity investments at fair value

 

 

23,741

 

 

 

23,741

 

 

 

23,741

 

 

 

 

 

 

 

 

 

Available for sale securities

 

 

442,576

 

 

 

442,576

 

 

 

 

 

 

442,576

 

 

 

 

FHLB and other bank stock

 

 

5,727

 

 

 

5,727

 

 

 

 

 

 

5,727

 

 

 

 

Loans, net

 

 

2,414,280

 

 

 

2,399,909

 

 

 

 

 

 

 

 

 

2,399,909

 

Loans held for sale

 

 

1,192

 

 

 

1,279

 

 

 

 

 

 

1,279

 

 

 

 

Accrued interest receivable

 

 

10,588

 

 

 

10,588

 

 

 

 

 

 

10,588

 

 

 

 

Bank-owned life insurance

 

 

16,057

 

 

 

16,057

 

 

 

 

 

 

16,057

 

 

 

 

SBA servicing rights

 

 

2,821

 

 

 

2,821

 

 

 

 

 

 

 

 

 

2,821

 

Customer interest rate swaps

 

 

1,492

 

 

 

1,492

 

 

 

 

 

 

1,492

 

 

 

 

Cash flow hedge derivative

 

 

1,601

 

 

 

1,601

 

 

 

 

 

 

1,601

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

2,597,550

 

 

$

2,557,023

 

 

$

 

 

$

2,557,023

 

 

$

 

Accrued interest payable

 

 

1,160

 

 

 

1,160

 

 

 

 

 

 

1,160

 

 

 

 

Long-term borrowings

 

 

191,686

 

 

 

196,417

 

 

 

 

 

 

196,417

 

 

 

 

Correspondent interest rate swaps

 

 

1,492

 

 

 

1,492

 

 

 

 

 

 

1,492

 

 

 

 

 

 

 

December 31, 2020

 

Carrying

Value

 

 

Fair

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