Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of dates indicated:

	Fair Value Measurement Level
($ in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2020
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	73,158	$	—	$	73,158
Residential collateralized mortgage obligations	—		35,646		—		35,646
SBA loan pool securities	—		13,121		—		13,121
Municipal bonds	—		6,124		—		6,124
Total securities available-for-sale	—		128,049		—		128,049
Total assets measured at fair value on a recurring basis	$	—	$	128,049	$	—	$	128,049
Total liabilities measured at fair value on a recurring basis	$	—	$	—	$	—	$	—
December 31, 2019
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	38,738	$	—	$	38,738
Residential collateralized mortgage obligations	—		43,894		—		43,894
SBA loan pool securities	—		14,152		—		14,152
Municipal bonds	—		782		—		782
Total securities available-for-sale	—		97,566		—		97,566
Total assets measured at fair value on a recurring basis	$	—	$	97,566	$	—	$	97,566
Total liabilities measured at fair value on a recurring basis	$	—	$	—	$	—	$	—

Schedule of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following table presents the Company’s assets and liabilities measured at fair value on a non-recurring basis as of dates indicated:

	Fair Value Measurement Level
($ in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2020
Impaired loans:
SBA property	$	—	$	—	$	261	$	261
Commercial lines of credit	—		—		1,642		1,642
SBA commercial term	—		—		11		11
Total impaired loans	—		—		1,914		1,914
Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	1,914	$	1,914
Total liabilities measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—
December 31, 2019
Impaired loans:
SBA property	$	—	$	—	$	116	$	116
Commercial lines of credit	—		—		1,562		1,562
Total impaired loans	—		—		1,678		1,678
Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	1,678	$	1,678
Total liabilities measured at fair value on a non-recurring basis	$	—	$	—	$	—	$	—

Quantitative Information About Level 3 Fair Value Measurements

The following table presents quantitative information about level 3 fair value measurements for assets measured at fair value on a non-recurring basis as of the dates indicated:

($ in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted-Average)
June 30, 2020
Impaired loans:
SBA property	$	261	Fair value of collateral	NM	NM
Commercial lines of credit	$	1,642	Sales comparison approach	Adjustment for differences between the comparable estate sales	-14% to 48% (10.2%)
			Income approach	Adjustment for differences in net operating income expectations	11% to 38% (13.8%)
				Capitalization rate	5.0%
SBA commercial term	$	11	Fair value of collateral	NM	NM
December 31, 2019
Impaired loans:
SBA property	$	116	Fair value of collateral	NM	NM
Commercial lines of credit	$	1,562	Sales comparison approach	Adjustment for differences between the comparable estate sales	-4% to 26% (0.86%)
			Income approach	Adjustment for differences in net operating income expectations	-4% to -11% (-6.20%)
				Capitalization rate	5.0%

Schedule of Gain on Sale of OREO and OREO Valuation Write-downs

For assets measured at fair value, the following table presents the total net losses, which include charge-offs, recoveries, and specific reserves recorded for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2020		2019		2020		2019
Collateral dependent impaired loans:
SBA property	$	(111)	$	(18)	$	(138)	$	(20)
Commercial lines of credit	(214)		—		(720)		—
SBA commercial term	—		—		(164)		—
Net losses recognized	$	(325)	$	(18)	$	(1,022)	$	(20)

Schedule of Carrying Value and Estimated Fair Values of Financial Assets and Liabilities

The following table presents the carrying value and estimated fair values of financial assets and liabilities as of the dates indicated:

	Carrying Value		Fair Value		Fair Value Measurements
($ in thousands)					Level 1		Level 2		Level 3
June 30, 2020
Financial assets:
Interest-bearing deposits in other financial institutions	$	289,348	$	289,348	$	289,348	$	—	$	—
Securities available-for-sale	128,049		128,049		—		128,049		—
Loans held-for-sale	4,102		4,188		—		4,188		—
Net loans held-for-investment	1,533,341		1,543,212		—		—		1,543,212
FHLB and other restricted stock	8,447		N/A		N/A		N/A		N/A
Accrued interest receivable	9,498		9,498		10		359		9,129
Financial liabilities:
Deposits	$	1,646,930	$	1,673,664	$	—	$	—	$	1,673,664
FHLB advances	130,000		130,442		—		130,442		—
Accrued interest payable	3,886		3,886		—		2		3,884
December 31, 2019
Financial assets:
Interest-bearing deposits in other financial institutions	$	128,420	$	128,420	$	128,420	$	—	$	—
Securities available-for-sale	97,566		97,566		—		97,566		—
Securities held-to-maturity	20,154		20,480		—		20,480		—
Loans held-for-sale	1,975		2,102		—		2,102		—
Net loans held-for-investment	1,436,451		1,449,383		—		—		1,449,383
FHLB and other restricted stock	8,345		N/A		N/A		N/A		N/A
Accrued interest receivable	5,136		5,136		78		375		4,683
Financial liabilities:
Deposits	$	1,479,307	$	1,468,540	$	—	$	—	$	1,468,540
FHLB advances	20,000		20,092		—		20,092		—
Accrued interest payable	6,004		6,004		—		1		6,003