Fair Value Measurements (Tables)

9 Months Ended

Sep. 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
September 30, 2020
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise securities:
Residential mortgage-backed securities	$	—	$	79,771	$	—	$	79,771
Residential collateralized mortgage obligations	—		30,673		—		30,673
SBA loan pool securities	—		12,707		—		12,707
Municipal bonds	—		5,831		—		5,831
Total securities available-for-sale	—		128,982		—		128,982
Total assets measured at fair value on a recurring basis	$	—	$	128,982	$	—	$	128,982
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
September 30, 2020
Impaired loans:
SBA property	$	—	$	—	$	251	$	251
Commercial lines of credit	—		—		1,120		1,120
SBA commercial term	—		—		12		12
Total impaired loans	—		—		1,383		1,383
Total assets measured at fair value on a non-recurring basis	$	—	$	—	$	1,383	$	1,383
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)
September 30, 2020
Impaired loans:
SBA property	$	251	Fair value of collateral	NM	NM
Commercial lines of credit	$	1,120	Sales comparison approach	Adjustment for differences between the comparable estate sales	-10% to 13% (2.1%)
SBA commercial term	$	12	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 Total Net Losses

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 September 30,				Nine Months Ended September 30,
($ in thousands)	2020		2019		2020		2019
Collateral dependent impaired loans:
SBA property	$	(9)	$	—	$	(147)	$	(20)
Commercial lines of credit	(79)		—		(799)		—
SBA commercial term	—		—		(164)		—
Other real estate owned	—		(18)		—		(18)
Net losses recognized	$	(88)	$	(18)	$	(1,110)	$	(38)

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
September 30, 2020
Financial assets:
Interest-bearing deposits in other financial institutions	$	243,810	$	243,810	$	243,810	$	—	$	—
Securities available-for-sale	128,982		128,982		—		128,982		—
Loans held-for-sale	30,878		33,770		—		33,770		—
Net loans held-for-investment	1,554,258		1,568,235		—		—		1,568,235
FHLB and other restricted stock	8,447		N/A		N/A		N/A		N/A
Accrued interest receivable	11,246		11,246		4		314		10,928
Financial liabilities:
Deposits	$	1,647,107	$	1,653,614	$	—	$	—	$	1,653,614
FHLB advances	130,000		130,406		—		130,406		—
Accrued interest payable	2,626		2,626		—		2		2,624
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