Fair Value Measurements - (Tables)

9 Months Ended

Sep. 30, 2020

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

The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis at September 30, 2020 and December 31, 2019:


	At September 30, 2020
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Assets at Fair Value:
Debt securities available for sale

Commercial mortgage backed securities issued by U.S. Agencies	$	11,820	$	—	$	11,820	$	—
Residential mortgage backed securities issued by U.S. agencies	15,806		—		15,806		—



Total debt securities available for sale at fair value	$	27,626	$	—	$	27,626	$	—


	At December 31, 2019
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Assets at Fair Value:
Debt securities available for sale

Commercial mortgage backed securities issued by U.S. Agencies	$	9,229	$	—	$	9,229	$	—
Residential mortgage backed securities issued by U.S. agencies	19,115		—		19,115		—


Total debt securities available for sale	$	28,344	$	—	$	28,344	$	—

Schedule of assets measured at fair value on nonrecurring basis

Information regarding assets measured at fair value on a nonrecurring basis is set forth in the table below.


	At September 30, 2020								At December 31, 2019
(Dollars in thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets at Fair Value:
Impaired loans	$	16,780	$	—	$	—	$	16,780	$	15,682	$	—	$	—	$	15,682

Other foreclosed assets	150		—		150		—		164		—		164		—

Total	$	16,930	$	—	$	150	$	16,780	$	15,846	$	—	$	164	$	15,682

Summary of significant unobservable inputs and valuation techniques

For our fair value measurements classified in Level 3 of the fair value hierarchy as of September 30, 2020, a summary of the significant unobservable inputs and valuation techniques is as follows:

Fair Value Measurement as of September 30, 2020

Valuation Techniques(2)

Unobservable Inputs(2)

Range

Weighted Average

(Dollars in thousands)

Assets

Impaired loans

16,780

Third-Party Pricing

Discounted cash flow

N/A (1)

(1)As part of our process, we obtain appraisals for our various properties included within impaired loans which primarily rely upon market comparisons. These market comparisons support our assumption that the carrying value of the respective loans either requires or does not require additional impairment.

(2)As of September 30, 2020, there has been no change to our valuation techniques or the types of unobservable inputs used in the calculation of fair value from December 31, 2019.

Schedule of estimated fair values and amounts of financial instruments

The table below provides estimated fair values and related carrying amounts of our financial instruments as of September 30, 2020 and December 31, 2019, excluding financial assets and liabilities which are recorded at fair value on a recurring basis.


	Estimated Fair Value
	At September 30, 2020										At December 31, 2019
	Carrying Value		Total		Level 1		Level 2		Level 3		Carrying Value		Total		Level 1	Level 2	Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	278,280	$	278,280	$	278,280	$	—	$	—	$	220,138	$	220,138	220,138	—	—
Interest-bearing deposits with financial institutions	1,847		1,847		1,847		—		—		2,420		2,420		2,420	—	—
Federal Reserve Bank of San Francisco and Federal Home Loan Bank stock	7,910		7,910		7,910		—		—		7,910		7,910		7,910	—	—
Loans, net	1,263,367		1,267,639		—		—		1,267,639		1,117,511		1,120,096		—	—	1,120,096
Accrued interest receivable	5,653		5,653		5,653		—		—		4,095		4,095		4,095	—	—
Financial liabilities:
Noninterest bearing deposits	661,462		661,462		661,462		—		—		397,000		397,000		397,000	—	—
Interest-bearing deposits	746,088		748,267		—		748,267		—		802,570		803,549		—	803,549	—
FHLB borrowings	20,000		20,080		—		20,080		—		30,000		29,974		—	29,974	—
Junior subordinated debentures	17,527		17,527		—		17,527		—		17,527		17,527		—	17,527	—
Accrued interest payable	227		227		227		—		—		398		398		398	—	—