Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Measurement

Summary of balances of the assets and liabilities measured at fair value on a recurring basis

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The following tables present the balances of the assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021:

	September 30, 2022
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Fair Value of Financial Assets:
Securities Available for Sale:
U.S. Treasury Securities	$	2,338	$	—	$	—	$	2,338
Municipal Bonds		—		170,236		—		170,236
Mortgage-Backed Securities		—		191,585		—		191,585
Corporate Securities		—		108,060		—		108,060
SBA Securities		—		22,540		—		22,540
Asset-Backed Securities		—		47,248		—		47,248
Interest Rate Caps		—		19,203		—		19,203
Interest Rate Swaps		—		19,326		—		19,326
Total Fair Value of Financial Assets	$	2,338	$	578,198	$	—	$	580,536
Fair Value of Financial Liabilities:
Interest Rate Swaps	$	—	$	8,492	$	—	$	8,492
Total Fair Value of Financial Liabilities	$	—	$	8,492	$	—	$	8,492

	December 31, 2021
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Fair Value of Financial Assets:
Securities Available for Sale:
U.S. Treasury Securities	$	754	$	—	$	—	$	754
Municipal Bonds		—		158,369		—		158,369
Mortgage-Backed Securities		—		124,537		—		124,537
Corporate Securities		—		84,480		—		84,480
SBA Securities		—		30,370		—		30,370
Asset-Backed Securities		—		40,852		—		40,852
Interest Rate Caps		—		7,356		—		7,356
Interest Rate Swaps		—		2,358		—		2,358
Total Fair Value of Financial Assets	$	754	$	448,322	$	—	$	449,076
Fair Value of Financial Liabilities:
Interest Rate Swaps	$	—	$	1,567	$	—	$	1,567
Total Fair Value of Financial Liabilities	$	—	$	1,567	$	—	$	1,567

Summary of net impairment losses related to nonrecurring fair value measurements of certain asset

The following tables present net impairment losses related to nonrecurring fair value measurements of certain assets at September 30, 2022 and December 31, 2021:

	September 30, 2022
(dollars in thousands)	Level 1		Level 2		Level 3		Loss
Impaired Loans	$	—	$	11,984	$	—	$	234
Totals	$	—	$	11,984	$	—	$	234

	December 31, 2021
(dollars in thousands)	Level 1		Level 2		Level 3		Loss
Impaired Loans	$	—	$	9,360	$	—	$	625
Totals	$	—	$	9,360	$	—	$	625

Summary of carrying amount and estimated fair values of financial instruments

The following tables present the carrying amount and estimated fair values of financial instruments at September 30, 2022 and December 31, 2021:

	September 30, 2022
			Fair Value Hierarchy
	Carrying								Estimated
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Fair Value
Financial Assets:
Cash and Due From Banks	$	75,496	$	75,496	$	—	$	—	$	75,496
Bank-Owned Certificates of Deposit		1,182		—		1,168		—		1,168
Securities Available for Sale		542,007		2,338		539,669		—		542,007
FHLB Stock, at Cost		15,603		—		15,603		—		15,603
Loans, Net		3,324,503		—		3,199,676		—		3,199,676
Accrued Interest Receivable		11,198		—		11,198		—		11,198
Interest Rate Caps		19,203		—		19,203		—		19,203
Interest Rate Swaps		19,326		—		19,326		—		19,326
Financial Liabilities:
Deposits	$	3,305,073	$	—	$	3,275,575	$	—	$	3,275,575
Federal Funds Purchased		212,000		—		212,000		—		212,000
FHLB Advances		71,500		—		70,336		—		70,336
Subordinated Debentures		92,559		—		89,674		—		89,674
Accrued Interest Payable		2,214		—		2,214		—		2,214
Interest Rate Swaps		8,492		—		8,492		—		8,492

	December 31, 2021
			Fair Value Hierarchy
	Carrying								Estimated
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Fair Value
Financial Assets:
Cash and Due From Banks	$	143,473	$	143,473	$	—	$	—	$	143,473
Bank-Owned Certificates of Deposit		1,876		—		1,884		—		1,884
Securities Available for Sale		439,362		754		438,608		—		439,362
FHLB Stock, at Cost		5,242		—		5,242		—		5,242
Loans, Net		2,769,917		—		2,726,417		—		2,726,417
Accrued Interest Receivable		9,186		—		9,186		—		9,186
Interest Rate Caps		7,356		—		7,356		—		7,356
Interest Rate Swaps		2,358		—		2,358		—		2,358
Financial Liabilities:
Deposits	$	2,946,237	$	—	$	2,931,215	$	—	$	2,931,215
FHLB Advances		42,500		—		42,515		—		42,515
Subordinated Debentures		92,239		—		97,700		—		97,700
Accrued Interest Payable		1,409		—		1,409		—		1,409
Interest Rate Swaps		1,567		—		1,567		—		1,567