FAIR VALUE (Revised and Restated) (Tables)

6 Months Ended

Jun. 30, 2023

FAIR VALUE (Revised and Restated)

Schedule of assets measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	June 30, 2023		(Level 1)		(Level 2)		(Level 3)
Assets:
Available-for-sale securities
Residential government-sponsored mortgage-backed securities	$	98,014	$	—	$	98,014	$	—
Obligations of states and political subdivisions		29,673		—		29,673		—
Corporate securities		12,956		—		12,956		—
Collateralized loan obligations		4,901		—		4,901		—
Residential government-sponsored collateralized mortgage obligations		28,568		—		28,568		—
Government-sponsored agency securities		13,360		—		13,360		—
Agency commercial mortgage-backed securities		30,794		—		30,794		—
SBA pool securities		4,821		—		4,821		—
		223,087		—		223,087		—
Loans held for investment		195,739		—		—		195,739
Consumer Program derivative		10,627		—		—		10,627
Loans held for sale		57,704		—		57,704		—
Mortgage banking financial assets		205		—		—		205
Mortgage banking derivative assets		1,122		—		—		1,122
Interest rate swaps		4,232		—		4,232		—
Total assets	$	492,716	$	—	$	285,023	$	207,693

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2022		(Level 1)		(Level 2)		(Level 3)
Assets:
Available-for-sale securities
Residential government-sponsored mortgage-backed securities	$	102,881	$	—	$	102,881	$	—
Obligations of states and political subdivisions		29,178		—		29,178		—
Corporate securities		14,828		—		14,828		—
Collateralized loan obligations		4,876		—		4,876		—
Residential government-sponsored collateralized mortgage obligations		26,595		—		26,595		—
Government-sponsored agency securities		14,616		—		14,616		—
Agency commercial mortgage-backed securities		37,417		—		37,417		—
SBA pool securities		5,924		—		5,924		—
		236,315		—		236,315		—
Loans held for sale		27,626		—		27,626		—
Mortgage banking financial assets		21		—		—		21
Mortgage banking derivative assets		945		—		921		24
Total assets	$	264,907	$	—	$	264,862	$	45
Liabilities:
Consumer Program derivative	$	473	$	—	$	—	$	473
Mortgage banking financial liabilities		4		—		—		4
Mortgage banking derivative liabilities		122		—		115		7
Total liabilities	$	599	$	—	$	115	$	484

Schedule of assets measured at fair value on non recurring basis

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	June 30, 2023		(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans	$	34,408	$	—	$	—	$	34,408
Assets held for sale		3,115		—		—		3,115

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Total at		Identical Assets		Inputs		Inputs
(dollars in thousands)	December 31, 2022		(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans	$	47,832	$	—	$	—	$	47,832
Assets held for sale		3,115		—		—		3,115

Schedule of estimated fair values and fair value hierarchy levels of financial instruments

The carrying amount, estimated fair values and fair value hierarchy levels (previously defined) of financial instruments were as follows (in thousands) for the periods indicated:

		June 30, 2023				December 31, 2022
	Fair Value	Carrying		Fair		Carrying		Fair
	Hierarchy Level	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	100,868	$	100,868	$	77,859	$	77,859
Securities available-for-sale	Level 2		223,087		223,087		236,315		236,315
Securities held-to-maturity	Level 2		12,378		11,369		13,520		12,449
Stock in Federal Reserve Bank and Federal Home Loan Bank	Level 2		12,083		12,083		25,815		25,815
Preferred investment in mortgage company	Level 2		3,005		3,005		3,005		3,005
Net loans	Level 3		3,154,427		2,997,896		2,912,093		2,809,163
Loans held for sale	Level 2		57,704		57,704		27,626		27,626
Accrued interest receivable	Level 2		14,765		14,765		12,004		12,004
Consumer Program derivative	Level 3		10,627		10,627		—		—
Mortgage banking financial assets	Level 3		205		205		21		21
Mortgage banking derivative assets	Level 2 and 3		1,122		1,122		945		945
Interest rate swaps	Level 2		4,232		4,232		—		—
Financial liabilities:
Demand deposits and NOW accounts	Level 2	$	1,298,557	$	1,298,557	$	1,200,259	$	1,200,259
Money market and savings accounts	Level 2		1,547,109		1,547,109		1,057,151		1,057,151
Time deposits	Level 3		471,330		468,551		465,057		462,376
Securities sold under agreements to repurchase	Level 1		3,921		3,921		6,445		6,445
FHLB advances	Level 1		—		—		325,000		325,000
Junior subordinated debt	Level 2		9,806		9,018		9,781		9,181
Senior subordinated notes	Level 2		85,647		83,123		85,531		84,347
Accrued interest payable	Level 2		7,405		7,405		3,261		3,261
Consumer Program derivative	Level 3		—		—		473		473
Mortgage banking financial liabilities	Level 3		—		—		4		4
Mortgage banking derivative liabilities	Level 2 and 3		—		—		122		122