Schedule of fair value assets and liabilities measured on recurring basis

The following presents assets and liabilities measured on a recurring basis as of September 30, 2021 and December 31, 2020 (in thousands):


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
September 30, 2021	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale:
U.S. Treasury debt	$	249	$	—	$	—	$	249
Corporate bonds		—		8,356		—		8,356
GNMA mortgage-backed securities - residential		—		20,811		—		20,811
FNMA mortgage-backed securities - residential		—		1,155		—		1,155
Corporate CMO and MBS		—		1,662		—		1,662
Total securities available-for-sale	$	249	$	31,984	$	—	$	32,233
Equity securities	$	716	$	—	$	—	$	716
Guarantee asset	$	—	$	—	$	231	$	231
IRLC, net	$	—	$	—	$	2,185	$	2,185
Forward commitments and FSC	$	—	$	498	$	(17)	$	481
Mortgage loans held for sale	$	—	$	51,309	$	—	$	51,309


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
December 31, 2020	(Level 1)		(Level 2)		(Level 3)		Balance
Investment securities available-for-sale:
U.S. Treasury debt	$	254	$	—	$	—	$	254
Corporate bonds		—		6,044		—		6,044
GNMA mortgage-backed securities - residential		—		24,604		—		24,604
FNMA mortgage-backed securities - residential		—		1,677		—		1,677
Corporate CMO and MBS		—		4,087		—		4,087
Total securities available-for-sale	$	254	$	36,412	$	—	$	36,666
Equity securities	$	730	$	—	$	—	$	730
Guarantee asset	$	—	$	—	$	232	$	232
IRLC, net	$	—	$	—	$	9,841	$	9,841
Forward commitments and FSC	$	—	$	(2,534)	$	(89)	$	(2,623)
Mortgage loans held for sale	$	—	$	161,843	$	—	$	161,843

Summary of assets measured at fair value on nonrecurring basis

The following presents assets measured on a nonrecurring basis as of September 30, 2021 and December 31, 2020 (in thousands):

Quoted

Prices in

Significant

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Assets

Inputs

Reported

September 30, 2021

(Level 1)

(Level 2)

(Level 3)

Balance

Impaired loans⁽¹⁾:

Commercial and Industrial

$

—

$

—

$

479

$

479


	Quoted
	Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Reported
December 31, 2020	(Level 1)		(Level 2)		(Level 3)		Balance
Other real estate owned:
Commercial properties	$	—	$	—	$	194	$	194

Impaired loans⁽¹⁾:
Commercial and Industrial	$	—	$	—	$	1,800	$	1,800

______________________________________

⁽¹⁾ Four immaterial Cash, Securities and Other loans were fully reserved for using a specific allowance as of September 30, 2021 and one immaterial Cash, Securities and Other loan was fully reserved for using a specific allowance as of December 31, 2020.

Summary of carrying amounts and estimated fair values of financial instruments

The following presents carrying amounts and estimated fair values for financial instruments not carried at fair value as of September 30, 2021 and December 31, 2020 (in thousands):


	Carrying		Fair Value Measurements Using:
September 30, 2021	Amount		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	310,235	$	310,235	$	—	$	—
Loans, net		1,590,086		—		—		1,577,103
Accrued interest receivable		6,306		—		20		6,286
Liabilities:
Deposits		1,782,299		—		1,783,610		—
Borrowings:
FHLB borrowings – fixed rate		15,000		—		15,056		—
Federal Reserve borrowings – fixed rate		43,564		—		43,564		—
Subordinated notes – fixed-to-floating rate		39,010		—		—		40,313
Accrued interest payable		357		—		173		184


	Carrying		Fair Value Measurements Using:
December 31, 2020	Amount		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	155,989	$	155,989	$	—	$	—
Loans, net		1,520,294		—		—		1,512,699
Accrued interest receivable		6,618		—		90		6,528
Liabilities:
Deposits		1,619,910		—		1,621,648		—
Borrowings:
FHLB borrowings – fixed rate		15,000		—		15,099		—
Federal Reserve borrowings – fixed rate		134,563		—		134,563		—
Subordinated notes – fixed-to-floating rate		24,291		—		—		25,750
Accrued interest payable		453		—		124		329

Summary of assets and liabilities measured at fair value on a recurring or nonrecurring, the significant unobservable inputs

The following presents quantitative information about Level 3 assets measured on a recurring basis as of September 30, 2021 and December 31, 2020 (dollars in thousands):

Quantitative Information about Level 3 Fair Value Measurements as of September 30, 2021

Valuation

Significant

Range

Fair Value

Technique

Unobservable Input

(Weighted Average)

Guarantee asset

$

231

Discounted cash flow

Discount rate
Prepayment rate

3% (3%)

19% (19%)

IRLC, net

2,185

Best execution model

Pull through

72% to 100% (90%)

FSC

(17)

Internal pricing model

Market Differential

-84bps to

-50bps

(-75bps)

Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2020

Valuation

Significant

Range

Fair Value

Technique

Unobservable Input

(Weighted Average)

Guarantee asset

$

232

Discounted cash flow

Discount rate
Prepayment rate

3% (3%)
25% (25%)

IRLC, net

9,841

Best execution model

Pull through

55% to 100% (86%)

FSC

(89)

Internal pricing model

Market Differential

-59bps to

-17bps

(-31bps)