XML 46 R35.htm IDEA: XBRL DOCUMENT v3.21.2
FAIR VALUE (Tables)
9 Months Ended
Sep. 30, 2021
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 and liability for level 3 instruments measured at fair value on recurring basis

The following presents a reconciliation for Level 3 instruments measured at fair value on a recurring basis (in thousands):

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2021

    

Guarantee Asset

    

IRLC

    

FSC

Beginning balance

​

$

196

​

$

2,809

​

$

—

Acquisitions

​

 

—

​

​

6,617

​

​

(17)

Originations

​

 

—

​

​

(7,705)

​

​

—

Gains (losses) in net income, net

​

​

35

​

​

464

​

​

—

Ending balance

​

$

231

​

$

2,185

​

$

(17)

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2020

    

Guarantee Asset

    

IRLC

    

FSC

Beginning balance

​

$

222

​

$

7,566

​

$

(84)

Acquisitions

​

 

—

​

​

9,546

​

​

(89)

Originations

​

 

—

​

​

(6,466)

​

​

—

Gains (losses) in net income, net

​

​

23

​

​

1,065

​

​

84

Ending balance

​

$

245

​

$

11,711

​

$

(89)

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2021

    

Guarantee Asset

    

IRLC

    

FSC

Beginning balance

​

$

232

​

$

9,841

​

$

(89)

Acquisitions

​

 

—

​

​

15,123

​

​

(190)

Originations

​

 

2

​

​

(20,702)

​

​

—

Gains (losses) in net income, net

​

​

(3)

​

​

(2,077)

​

​

262

Ending balance

​

$

231

​

$

2,185

​

$

(17)

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2020

    

Guarantee Asset

    

IRLC

    

FSC

Beginning balance

​

$

—

​

$

1,184

​

$

—

Acquisitions

​

 

—

​

​

26,264

​

​

(189)

Originations

​

 

—

​

​

(17,449)

​

​

—

Sales

​

 

245

​

​

—

​

​

—

Gains (losses) in net income, net

​

​

—

​

​

1,712

​

​

100

Ending balance

​

$

245

​

$

11,711

​

$

(89)

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

​

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

The following presents quantitative information about the significant unobservable inputs used in the fair value measurement of nonrecurring assets categorized within Level 3 of the fair value hierarchy 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)

Impaired loans(1):

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and Industrial

​

$

479

​

​

Sales comparison, Market approach - guideline transaction method

​

​

Management discount for asset/property type

​

​

17% - 45% (39%)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

Valuation

​

Significant

​

Range

​

​

Fair Value

​

Technique

​

Unobservable Input

​

(Weighted Average)

Other real estate owned:

 

​

  

 

​

  

 

​

  

 

​

  

Commercial properties

​

$

194

​

​

Sales contract

​

​

Commission, cost to sell, closing costs

​

​

5% (5%)

​

​

​

​

​

​

​

​

​

​

​

​

​

Impaired loans(1):

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and Industrial

​

​

1,800

​

​

Sales comparison, Market approach - guideline transaction method

​

​

Management discount for asset/property type

​

​

17% - 35% (26%)

______________________________________

(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

Recurring  
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)